White Mountains post losses
White Mountains Insurance Group Ltd, the financial services holding company domiciled in Bermuda, has reported comprehensive losses attributable to common shareholders of $174 million and $143 million in the second quarter and first six months of 2022.
That compares to income of $139 million and $66 million in the second quarter and first six months of 2021.
Results in the second quarter and first six months of this year included $114 million and $95 million of unrealised investment losses from White Mountains's investment in MediaAlpha.
Results in the second quarter and first six months of 2021 included $113 million and $71 million of net realised and unrealised investment gains from White Mountains's investment in MediaAlpha.
White Mountains includes the companies Ark, Build America Mutual, Kudu Investment Management, MediaAlpha, David Shield Group and Elementum.
On August 1, White Mountains closed the previously announced sale of 100 per cent of its equity interest in NSM Insurance Group for cash to an affiliate of The Carlyle Group Inc.
White Mountains reported book value per share of $1,129 and adjusted book value per share of $1,152 as of June 30.
Book value per share and adjusted book value per share decreased five per cent and four per cent in the second quarter of 2022 and four per cent and three per cent in the first six months of 2022, including dividends.
Including the estimated net gain of $300 per share from the NSM transaction, book value per share would be approximately $1,429 and adjusted book value per share would be approximately $1,452 as of June 30. NSM's results have been presented as discontinued operations beginning in the second quarter.
Manning Rountree, CEO, said: "ABVPS was down four per cent in the quarter. The main drivers were mark-to-market losses in our fixed income portfolios and the decline in MediaAlpha's share price.
“On the other hand, our operating businesses produced good results.
“BAM produced record levels of par insured. Ark produced an 87 per cent combined ratio while growing premiums 23 per cent year-over-year. The fair value of Kudu's existing participation contracts declined 2.5 per cent in the quarter, holding up well in a tough quarter for investment markets. Kudu grew adjusted EBITDA year-over-year and closed one new transaction.”
He added: “During the quarter, we repurchased $63 million of shares. Including the proceeds from the NSM transaction, undeployed capital now stands at roughly $1.6 billion."