Investment gains and acquisitions saw the Bermuda-domiciled White Mountains Insurance Group Ltd. more than double its earnings in the fourth quarter of 2004 despite heavy catastrophe-related payments.

Yesterday, the financial services holding company announced adjusted comprehensive income of $233 million, up from $92 million in the fourth quarter of 2003. For the year, adjusted comprehensive net income was $539 million compared to $360 million in 2003.

Net income for the quarter more than doubled to $165 million from $59 million, while revenue rose to $1.25 billion from the $951 million reported in 2003.

Despite a big cat year, the company?s fully converted tangible book value per share rose 18 percent to $342.52 per share in 2004.

The company?s $22 million in catastrophe breaks down to a combination of $11 million of losses from the tsunami that hit South Asia in December and $11 million of additional losses primarily as a result of damage caused to oil rigs by hurricane Ivan, which hit the US Southeast in the third quarter of 2004.

CEO Ray Barrette said in the company?s earnings release: ?The investment portfolio performed well. Equities did particularly well with a total return of 20 percent for the year. Acquisitions contributed $180 million in transaction gains, more than offsetting the impact of cats and reserve increases for prior years. Underlying results at OneBeacon, White Mountains Re, and Esurance are all excellent. Good news on the tax legislation and foreign exchange fronts also contributed to this nice result. We finished this challenging year with an even stronger balance sheet than we had at the beginning.?

Mr. Barrette added that the company?s earning power remains strong as it continues to accumulate a large amount of capital available for new opportunities.