White Mountains Insurance(WTM) - 2025 Q4 - Annual Results

Financial Performance - White Mountains reported a book value per share of $2,188 as of December 31, 2025, reflecting an 18% increase for Q4 2025 and a 25% increase for the full year[2]. - The net gain from the sale of Bamboo contributed approximately $320 to book value per share in 2025, with comprehensive income attributable to common shareholders reaching $837 million in Q4 2025[3]. - Total revenues for the year ended December 31, 2025, reached $3,735.0 million, compared to $2,239.8 million in 2024, marking a significant increase of 66.8%[42]. - For the three months ended December 31, 2025, net income attributable to White Mountains's common shareholders was $835.8 million, compared to a net loss of $130.4 million in the same period of 2024[45]. - Pre-tax income for 2025 was reported at $1,328.7 million, a significant increase from $316.7 million in 2024, showing a growth of over 319%[52]. Premiums and Revenues - Ark's gross written premiums for the year ended December 31, 2025, were $2.6 billion, up 16% year-over-year, with a combined ratio of 83%[9]. - HG Global reported gross written premiums of $61 million for the year ended December 31, 2025, a 17% increase, with total par value of policies assumed reaching $3.17 billion[17]. - Bamboo generated commission and fee revenues of $44 million from October 1, 2025, to December 5, 2025, compared to $37 million in Q4 2024[21]. - Total P&C Insurance Distribution revenues were $246.3 million for the year, up from $179.8 million in 2024, reflecting a growth of 37.0%[42]. - Gross written premiums for the year ended December 31, 2025, reached $2,557.2 million, an increase from $2,207.0 million in 2024, representing a growth of 15.8%[59]. Expenses and Liabilities - Total expenses for the year ended December 31, 2025, were $2,406.3 million, an increase from $1,923.1 million in 2024, reflecting a year-over-year growth of approximately 25.1%[44]. - General and administrative expenses increased to $75 million in the fourth quarter of 2025, driven by higher incentive compensation related to the Bamboo sale[28]. - Total liabilities decreased to $6,051.4 million from $6,628.5 million in the previous quarter, a reduction of approximately 8.7%[38]. - Acquisition expenses for P&C Insurance and Reinsurance increased to $394.2 million in 2025 from $307.1 million in 2024, marking a growth of approximately 28.4%[44]. Investment Performance - MediaAlpha's share price increased by 14% in Q4 2025, contributing to a 2.0% return on the investment portfolio for the quarter[3]. - The total consolidated portfolio return was 2.3% in the fourth quarter of 2025, with a return of 9.1% for the year ended December 31, 2025[31][32]. - Unrealized investment gains from MediaAlpha were $28 million and $30 million in the fourth quarter and year ended December 31, 2025, compared to losses of $(122) million and gains of $38 million in the same periods of 2024[26]. - The company recorded net realized and unrealized investment gains of $331.9 million in 2025, compared to $146.9 million in 2024, marking a substantial increase of approximately 126%[52]. Shareholder Returns - White Mountains repurchased approximately $190 million of shares during the quarter, and undeployed capital stands at roughly $1.0 billion[3]. - The company declared and paid dividends of $1.00 per common share for the year ended December 31, 2025, consistent with the previous year[47]. - White Mountains repurchased 95,484 common shares for $193 million at an average price of $2,017.34 per share in the fourth quarter of 2025[30]. Future Outlook - The company anticipates future capital expenditures and expansion of its business operations[84]. - Forward-looking statements include projections of revenues, income, and market share, subject to risks and uncertainties[81][82]. - The company does not assume any obligation to publicly update forward-looking statements[83].