White Mountains Reports Third Quarter Results
White Mountains Insurance Group, Ltd. [WTM] reported book value per share of $1,439 and adjusted book value per share of $1,471 as of September 30, 2022.
Book value per share and adjusted book value per share both increased 28% in the third quarter of 2022. Book value per share and adjusted book value per share increased 23% and 24% in the first nine months of 2022, including dividends. The increase in book value per share and adjusted book value per share was driven primarily by the net gain from the sale of NSM.
Manning Rountree, CEO, commented, “ABVPS was up 28% in the quarter. The main driver was the gain on our sale of NSM, which closed on August 1 and added roughly $300 to ABVPS. Aside from this, ABVPS was up slightly driven primarily by good operating results at our businesses, partially offset by mark-to-market losses in our fixed income portfolio and the decline in MediaAlpha’s share price.
“BAM produced record levels of premiums. Ark produced an 87% combined ratio, despite significant catastrophe activity, while growing premiums 33% year-over-year. The fair value of Kudu’s existing participation contracts increased 12% in the quarter, reflecting announced sale transactions and good portfolio performance in a volatile investment environment.
“Kudu grew adjusted EBITDA year-over-year and closed two new transactions. During the quarter, we repurchased a little over $500 million of shares, including the results of our self-tender offer. Undeployed capital now stands at roughly $1.1 billion.”
The company noted, “Comprehensive income [loss] attributable to common shareholders was $890 million and $748 million in the third quarter and first nine months of 2022 compared to $[373] million and $[308] million in the third quarter and first nine months of 2021.
“Results in the third quarter and first nine months of 2022 were driven primarily by the net gain from the sale of NSM of $876 million, which includes the impact of compensation and other costs recorded in Other Operations. Results in the third quarter and first nine months of 2022 also included $19 million and $113 million of unrealized investment losses from White Mountains’s investment in MediaAlpha compared to $397 million and $326 million in the third quarter and first nine months of 2021.”
