White Mountains Report Second Quarter Results
White Mountains Insurance Group reported book value per share of $1,129 and adjusted book value per share of $1,152 as of June 30, 2022. Book value per share and adjusted book value per share decreased 5% and 4% in the second quarter of 2022 and 4% and 3% in the first six months of 2022, including dividends.
The company said, “On August 1, 2022, White Mountains closed the previously announced sale of 100% of its equity interest in NSM for cash to an affiliate of The Carlyle Group, Inc.. Including the estimated net gain of $300 per share from the NSM Transaction, book value per share would be approximately $1,429 and adjusted book value per share would be approximately $1,452 as of June 30, 2022. NSM’s results have been presented as discontinued operations beginning in the second quarter of 2022.
“Comprehensive income [loss] attributable to common shareholders was $[174] million and $[143] million in the second quarter and first six months of 2022 compared to $139 million and $66 million in the second quarter and first six months of 2021. Results in the second quarter and first six months of 2022 included $114 million and $95 million of unrealized investment losses from White Mountains’s investment in MediaAlpha. Results in the second quarter and first six months of 2021 included $113 million and $71 million of net realized and unrealized investment gains from White Mountains’s investment in MediaAlpha.”
Manning Rountree, CEO, commented, “ABVPS was down 4% in the quarter. The main drivers were mark-to-market losses in our fixed income portfolios and the decline in MediaAlpha’s share price. On the other hand, our operating businesses produced good results. BAM produced record levels of par insured. Ark produced an 87% combined ratio while growing premiums 23% year-over-year.
“The fair value of Kudu’s existing participation contracts declined 2.5% in the quarter, holding up well in a tough quarter for investment markets. Kudu grew adjusted EBITDA year-over-year and closed one new transaction. During the quarter, we signed and announced an agreement to sell NSM, and that transaction subsequently closed on August 1. This deal adds roughly $300 to ABVPS. During the quarter, we repurchased $63 million of shares. Including the proceeds from the NSM Transaction, undeployed capital now stands at roughly $1.6 billion.”
