White Mountains Reports Third Quarter Results
White Mountains Insurance Group, Ltd. reported book value per share of $1,162 and adjusted book value per share of $1,176 as of September 30, 2021.
Book value per share and adjusted book value per share both decreased 9% in the third quarter of 2021. For the first nine months of 2021, book value per share decreased 8% and adjusted book value per share decreased 7%, including dividends.
Manning Rountree, CEO, commented, “ABVPS was down 9% in the third quarter, driven by the decrease in MediaAlpha’s share price. Excluding the mark to market losses at MediaAlpha, ABVPS was up nicely, reflecting solid performance at our operating companies. BAM produced $28 million of total premiums and member surplus contributions, as insured penetration remained high and pricing improved.
“Ark produced an 89% adjusted combined ratio while increasing gross written premiums 79% year over year. NSM posted record levels of both pro forma controlled premium and pro forma adjusted EBITDA, driven by solid growth in its existing verticals and the J.C. Taylor acquisition.
“Kudu posted strong growth in adjusted EBITDA and $19 million of unrealized gains in the fair value of its portfolio, while deploying $130 million into new transactions. Excluding MediaAlpha, our investment portfolio returned 1.4% in the quarter. We completed $87 million of share repurchases during the quarter and finished the third quarter with roughly $450 million of undeployed capital.”
The company noted, “Comprehensive [loss] income attributable to common shareholders was $[373] million and $[308] million in the third quarter and first nine months of 2021 compared to $237 million and $220 million in the third quarter and first nine months of 2020.
“Results in the third quarter and first nine months of 2021 were driven primarily by $397 million and $326 million of net realized and unrealized investment losses from White Mountains’s investment in MediaAlpha. Results in the third quarter and first nine months of 2020 were driven primarily by $305 million and $355 million of net investment income and unrealized investment gains from White Mountains’s investment in MediaAlpha.”
