White Mountains Q4 caps excellent year
White Mountains Insurance Group Ltd, the Bermudian-domiciled financial services holding company, has reported comprehensive income attributable to common shareholders of $40 million and $788 million in the fourth quarter and year ended December 31, 2022.
That compares with net income of $34 million and a net loss of $273 million in the fourth quarter and year ended December 31, 2021.
Results in 2022 were driven primarily by the net gain from the sale of NSM Insurance of $876 million recorded in the third quarter, which included the impact of compensation and other costs recorded in other operations.
Results in 2021 were driven primarily by $380 million of net realised and unrealised investment losses from White Mountains' investment in MediaAlpha.
White Mountains includes the companies Ark, Build America Mutual and Kudu Investment Management.
During the fourth quarter, White Mountains invested $205 million in Outrigger Re Ltd, a newly formed Bermuda special-purpose insurer that will provide reinsurance protection on a portion of Ark's Bermuda global property catastrophe portfolio written in calendar year 2023.
Manning Rountree, White Mountains chief executive, said: "We had a solid fourth quarter capping an excellent year. ABVPS (adjusted book value per share) was up 2 per cent in the quarter and 26 per cent for the full year.
“In the quarter, we had good results from our operating companies and positive returns in our investment portfolio.
“BAM produced $38 million of gross written premiums and member surplus contributions in the quarter, capping a record year.
“Ark produced strong underwriting results in both the quarter and the full year, while growing full-year gross written premiums 37 per cent.
“Kudu grew the fair value of its continuing portfolio and closed two value-adding exit transactions in the quarter, capping a good all-round year.
“Our investment portfolio was up 2.1 per cent in the quarter and down 1.6 per cent for the full year, an excellent relative result.
“We finished the year with roughly $900 million of undeployed capital."
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