White Mountains suffers full-year loss
White Mountains Insurance Group Ltd, the Bermudian-domiciled financial services holding company, has reported a comprehensive loss attributable to common shareholders of $273 million for fiscal year 2021.
That compares with income of $716 million in the previous year.
The company reported comprehensive income of $34 million in the fourth quarter, compared with income of $495 million for the same quarter in 2020.
White Mountains includes the companies Ark, Build America Mutual, NSM Insurance Group, Kudu Investment Management, MediaAlpha, David Shield Group and Elementum.
Results in the fourth quarter and year ended December 31, 2021 included $55 million and $380 million of net realised and unrealised investment losses from White Mountains' investment in MediaAlpha.
Results in the fourth quarter and year ended December 31, 2020 included $391 million and $746 million of net investment income and realised and unrealised investment gains from White Mountains' investment in MediaAlpha, as well as $131 million from the release of a deferred tax liability as a result of an internal reorganisation in connection with the MediaAlpha IPO.
The company reported book value per share of $1,176 and adjusted book value per share of $1,190 as of December 31. Book value per share and adjusted book value per share both increased 1 per cent in the fourth quarter.
Book value per share and adjusted book value per share decreased 7 per cent and 6 per cent in the year ended December 31, including dividends.
Excluding net realised and unrealised investment losses from White Mountains's investment in MediaAlpha, adjusted book value per share increased 3 per cent in the fourth quarter and 4 per cent in the year ended December 31, including dividends.
Manning Rountree, CEO, said: "ABVPS grew 1 per cent in the fourth quarter. Strong results from our operating companies were partially offset by a mark-to-market decline in the value of our investment in MediaAlpha.
“BAM produced $34 million of total premiums and member surplus contributions in the quarter, driven by continuing primary market demand for insurance.
“Ark produced good underwriting results for the quarter and the year, while growing full-year premiums 78 per cent.
“NSM finished the year with new highs for pro forma controlled premiums and pro forma adjusted ebitda.
“Likewise, Kudu finished the year by producing strong growth in adjusted ebitda, recording $27 million of gains in the fair value of its portfolio and closing two transactions in the fourth quarter.
“Excluding MediaAlpha, our investment portfolio returned 1.8 per cent for the quarter and 6.4 per cent for the full year.
“We completed share repurchases of $13 million for the quarter and $108 million for the full year.
“We finished the year with roughly $400 million of undeployed capital."