White Mountains in Q1 turnaround
White Mountains Insurance Group Ltd, the Bermudian-domiciled financial services holding company, has reported comprehensive income attributable to common shareholders of $31 million in the first quarter.
That compares with a loss of $74 million in the prior year first quarter.
White Mountains includes the companies Ark, Build America Mutual, NSM Insurance Group, Kudu Investment Management, MediaAlpha, David Shield Group and Elementum.
Results in the first quarter included $19 million of unrealised investment gains from White Mountains's investment in MediaAlpha.
Results in the prior year first quarter included $42 million of net realised and unrealised investment losses from White Mountains's investment in MediaAlpha and a loss of $29 million related to NSM's sale of its Fresh Insurance motor business.
Book value per share was $1,183 and adjusted book value per share was $1,204 at March 31 as both increased 1 per cent in the first quarter.
Manning Rountree, CEO, said: “Rising interest rates were a headwind in our fixed income portfolio. This was more than offset by positive results from our operating companies and positive returns in our equity portfolio.
“BAM produced $22 million of total premiums and member surplus contributions in the quarter, driven by strong secondary market activity.
“Ark produced break-even underwriting results in the quarter, reflecting the impact of estimated losses emanating from the conflict in Ukraine. Ark wrote $633 million of gross written premiums in the quarter, up 57 per cent year-over-year, with risk adjusted rate change up 9 per cent year-over-year.
“NSM produced healthy growth in both pro forma controlled premiums and pro forma adjusted Ebitda.
“Kudu posted growth in adjusted Ebitda and recognised $22 million of mark-to-market gains in the fair value of its portfolio of participation contracts.
“MediaAlpha's share price was up 7 per cent in the quarter, producing a $19 million mark-to-market gain.
“Excluding MediaAlpha, the investment portfolio returned 0.3 per cent in the quarter, as gains in equities more than offset mark-to-market losses in fixed income.
“We completed $39 million of share repurchases in the quarter.
“Including the dividend received from HG Global in May, undeployed capital now stands at roughly $400 million."
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