White Mountains Reports Second Quarter Results
White Mountains Insurance Group, Ltd. [WTM] reported book value per share of $1,279 and adjusted book value per share of $1,292 as of June 30, 2021.
Book value per share and adjusted book value per share both increased 4% in the second quarter of 2021 and 2% in the first six months of 2021, including dividends.
Manning Rountree, CEO, commented, “We had a strong second quarter. Adjusted book value per share was up 4%, driven by solid results across our operating companies as well as the increase in MediaAlpha’s share price during the quarter.
“BAM produced $30 million of total premiums and member surplus contributions, as insured penetration and market share remained strong, while pricing declined. Ark wrote $328 million of gross written premiums, up 78% year over year, and produced an 84% adjusted combined ratio.
“NSM generated nice growth in both pro forma controlled premiums and pro forma adjusted EBITDA. Kudu also posted nice growth in adjusted EBITDA and recognized $28 million in unrealized gains in the fair value of its portfolio of participation contracts. Excluding MediaAlpha, our investment portfolio returned 2.4% in the quarter. We finished the second quarter with roughly $300 million in undeployed capital. We expect undeployed capital will increase in the third quarter upon completion of the subordinated debt raise at Ark.”
Comprehensive income [loss] attributable to common shareholders was $139 million and $66 million in the second quarter and first six months of 2021, compared to $116 million and $[17] million in the second quarter and first six months of 2020. Results in the second quarter and first six months of 2021 were driven primarily by $113 million and $71 million of net realized and unrealized investment gains from White Mountains’s investment in MediaAlpha.
