White Mountains Insurance(WTM) - 2025 Q3 - Quarterly Results

Financial Performance - Book value per share increased by 3% to $1,851 in Q3 2025, and by 6% for the first nine months of 2025[2]. - Total revenues for the three months ended September 30, 2025, were $864.2 million, up from $839.1 million in the same period of 2024, representing a growth of 3.9%[41]. - For the three months ended September 30, 2025, net income attributable to White Mountains's common shareholders was $113.8 million, a decrease of 36.5% from $179.0 million in the same period of 2024[44]. - The company reported total revenues of $864.2 million for the three months ended September 30, 2025, compared to $1,000.0 million in the same period of 2024, reflecting a decrease of 13.6%[49]. - For the nine months ended September 30, 2025, total revenues reached $2,131.2 million, driven by earned insurance premiums of $1,328.0 million[52]. - Pre-tax income for the nine-month period was $427.7 million, indicating strong financial performance[52]. - The company reported net investment income of $180.2 million for the nine months, alongside net realized and unrealized investment gains of $249.6 million[52]. Premiums and Underwriting - Ark reported gross written premiums of $366 million in Q3 2025, with a combined ratio of 76%, an improvement from 79% in Q3 2024[4][6]. - Bamboo's managed premiums reached $221 million in Q3 2025, up 49% from $148 million in Q3 2024, driven by growth in renewal and new business[18]. - Total gross written premiums for HG Global amounted to $41.8 million for the nine months ended September 30, 2025, up from $34.5 million in 2024, marking a growth of 21.1%[59]. - Gross written premiums for Ark/WM Outrigger reached $2,289.2 million for the nine months ended September 30, 2025, an increase from $1,942.7 million in the same period of 2024, representing a growth of 17.8%[57]. - The combined ratio for Ark/WM Outrigger improved to 82.9% for the nine months ended September 30, 2025, down from 83.5% in the same period of 2024, indicating better underwriting performance[57]. Expenses and Liabilities - Total expenses for the three months ended September 30, 2025, were $685.4 million, an increase of 14.3% compared to $599.6 million in the same period of 2024[43]. - General and administrative expenses rose to $72 million in Q3 2025 from $33 million in Q3 2024, primarily due to deal-related costs[28]. - Total liabilities increased to $6,628.5 million as of September 30, 2025, compared to $4,794.6 million on December 31, 2024, reflecting a growth of 38.3%[37]. - Total expenses for Bamboo for the nine months ended September 30, 2025, were $157.9 million, up from $106.0 million in 2024, an increase of 48.8%[65]. Investment Performance - The total consolidated portfolio return was 2.1% in Q3 2025, down from 4.6% in Q3 2024[30]. - Kudu's return on equity improved to 9% as of September 30, 2025, up from 8% as of June 30, 2025, due to higher investment gains[15]. - Total consolidated portfolio return excluding MediaAlpha for Q3 2025 was 2.0%, compared to 3.3% in Q3 2024[79]. - The return excluding MediaAlpha for the nine months ended September 30, 2025, was 6.8%, slightly up from 6.9% in 2024[79]. Strategic Developments - White Mountains expects an increase of $325 per share in book value upon closing the sale of approximately 77% of its equity interest in Bamboo[3]. - White Mountains acquired a controlling interest in Distinguished Programs for $224 million in cash, enhancing its portfolio in specialty property and casualty insurance[21]. - The company continues to focus on market expansion and new product development as part of its growth strategy[50]. Other Financial Metrics - Cash and cash equivalents rose to $289.9 million in Q3 2025 from $148.8 million in Q3 2024[35]. - Total equity rose to $5,584.7 million as of September 30, 2025, compared to $5,131.0 million at the end of 2024, an increase of 8.8%[37]. - Basic earnings per share for the three months ended September 30, 2025, were $44.18, down from $69.68 in the same period of 2024, a decline of 36.6%[46]. Forward-Looking Statements and Risks - Forward-looking statements include expectations regarding business strategy and financial targets, subject to various risks and uncertainties[80]. - Risks include potential inadequacies in loss reserves and the impact of catastrophic events on financial performance[83]. - The company does not guarantee that actual results will align with its forward-looking statements due to inherent uncertainties[82].