CEO: “Solid First Quarter For White Mountains”
White Mountains Insurance Group, Ltd. reported March 31, 2017 book value per share of $793 and adjusted book value per share of $799. Book value per share and adjusted book value per share were each up 1% for the quarter, including dividends.
Including the estimated net gain of $107 per share for the OneBeacon transaction, March 31, 2017 book value per share would be approximately $900 and adjusted book value per share would be approximately $906.
Manning Rountree, CEO, commented, “It was a solid first quarter for White Mountains. We increased adjusted book value per share by 1%, including roughly half a point of one-time compensation and severance expenses.
“OneBeacon had a nice quarter, producing a 95% combined ratio. BAM posted its best quarter since inception for pricing, total premiums and growth in claims paying resources. The investment portfolio returned 1.5%, a good result.”
Rountree continued, “Separately, OneBeacon announced today that it has entered into a definitive agreement to be acquired by Intact Financial in an all-cash transaction for $18.10 per share, or roughly 1.65x tangible book value. Upon closing, this transaction will mark the end of a long and successful chapter in White Mountains’s history.
“We thank Mike Miller and the OneBeacon management team for their many contributions, and we wish them all the best going forward. The transaction will increase our adjusted book value per share by a further 13% and our undeployed capital position by $1.3 billion, from $1.8 billion to $3.1 billion. We are pursuing new opportunities with energy, rigor and discipline.”
Comprehensive income attributable to common shareholders was $35 million in the first quarter of 2017, compared to $50 million in the first quarter of 2016. Net income attributable to common shareholders was $34 million in the first quarter of 2017, compared to $13 million in the first quarter of 2016.
