White Mountains Q1 income climbs
White Mountains Insurance Group Ltd, the financial services holding company domiciled in Bermuda, has reported comprehensive income attributable to common shareholders of $180 million in the first quarter of 2023, a significant increase compared to $31 million in the prior year quarter.
The company said results in the first quarter of 2023 and 2022 were driven primarily by $85 million and $19 million of net realised and unrealised investment gains from White Mountains's investment in MediaAlpha.
During the fourth quarter of 2022, Ark sponsored the formation of Outrigger Re Ltd, a Bermuda registered special purpose insurer and segregated accounts company, to provide collateralised reinsurance protection on Ark's Bermuda global property catastrophe excess of loss portfolio written in calendar year 2023.
As a result, in the first quarter, White Mountains began reporting the results of Ark and WM Outrigger Re, its own segregated account, together in the Ark/WM Outrigger segment.
White Mountains also includes the companies Build America Mutual, Kudu Investment Management, David Shield Group and Elementum.
Manning Rountree, CEO, said: "We had a good first quarter. Average book value per share was up five per cent, driven by positive returns from our investment portfolio and solid results at our operating companies.
“BAM produced $21 million of gross written premiums and member surplus contributions in the quarter.
“Ark achieved a 94 per cent combined ratio and, supported by increased reinsurance capacity from Outrigger Re, wrote $809 million of gross written premiums, up 28 per cent year-over-year.
“Kudu closed on one new deployment and two value-adding sales transactions in the quarter, while growing the fair value of its continuing portfolio by $32 million.
“MediaAlpha's share price increased roughly five dollars in the quarter, producing an $85 million mark-to-market gain.
“Excluding MediaAlpha, the investment portfolio returned three per cent in the quarter, with gains in both equities and fixed income.
“We completed $25 million of share repurchases in the quarter.
“Reflecting additional commitments to Kudu and our new deployment at Doxa, undeployed capital now stands at roughly $720 million."
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