White Mountains Insurance Group Posts Strong Results Despite Investment Losses Challenges
- White Mountains Insurance Group reports strong operating results, with a book value per share of $1,752 as of March 2025.
- Ark segment achieves a 94% combined ratio and $1.1 billion in gross written premiums, showing significant year-over-year growth.
- The company expands its investment portfolio with a 2.3% return, while planning to adjust reporting strategies in 2025.
White Mountains Insurance Group Reports Strong Operating Results Amid Investment Challenges
White Mountains Insurance Group, Ltd. demonstrates solid operational performance in its latest quarterly results, reflecting the resilience of its core business segments despite facing headwinds from investment losses. As of March 31, 2025, the company reports a book value per share of $1,752, indicating a modest increase from the previous quarter. CEO Manning Rountree emphasizes the strength of the operating results and investment returns, which, while robust, are tempered by an 18% decline in MediaAlpha's share price. This downturn results in a $37 million mark-to-market loss, illustrating the volatility of market conditions impacting the company's overall financial positioning.
Among the highlights, Ark, one of White Mountains' key segments, achieves a remarkable combined ratio of 94% and writes $1.1 billion in gross written premiums, marking a 27% increase year-over-year. This impressive growth showcases Ark’s operational efficiency and market competitiveness, reinforcing its role as a significant contributor to the company’s financial stability. Meanwhile, HG Global generates $7 million in gross written premiums, coupled with a 3% equity growth during the quarter, further solidifying the company's diverse business model. The ongoing improvements across these segments reflect White Mountains' strategic focus on enhancing premium generation while maintaining disciplined underwriting practices.
In addition to these operational successes, White Mountains continues to expand its investment portfolio, reporting a 2.3% return, excluding MediaAlpha, thanks to favorable gains in equities and fixed income. The company actively pursues new capital opportunities, recently deploying funds into BroadStreet Partners and Enterprise Solutions, with approximately $550 million remaining in undeployed capital. Looking ahead, White Mountains plans to adjust its reporting strategy following the deconsolidation of BAM, which will result in the cessation of adjusted book value per share reports beginning in 2025, although key financial indicators like net unearned premium reserves will still be disclosed under HG Global segment reporting.
In summary, White Mountains Insurance Group navigates a challenging investment landscape while delivering strong performance across its core insurance operations. The strategic focus on premium growth and disciplined investment practices positions the company favorably for future opportunities. As the insurance industry continues to evolve, White Mountains remains committed to leveraging its strengths to drive sustainable growth and enhance shareholder value.