White Mountains Reports Fourth Quarter Results
White Mountains Insurance Group, Ltd. [WTM] reported book value per share of $1,457 and adjusted book value per share of $1,495 as of December 31, 2022.
Book value per share and adjusted book value per share increased 1% and 2% in the fourth quarter of 2022. Book value per share and adjusted book value per share increased 24% and 26% in the year ended December 31, 2022, including dividends, driven primarily by the net gain from the sale of NSM.
Manning Rountree, CEO, commented, “We had a solid fourth quarter capping an excellent year. ABVPS was up 2% in the quarter and 26% for the full year. In the quarter, we had good results from our operating companies and positive returns in our investment portfolio.
“BAM produced $38 million of gross written premiums and member surplus contributions in the quarter, capping a record year. Ark produced strong underwriting results in both the quarter and the full year, while growing full-year gross written premiums 37%.
“Kudu grew the fair value of its continuing portfolio and closed two value-adding exit transactions in the quarter, capping a good all-around year. Our investment portfolio was up 2.1% in the quarter and down 1.6% for the full year, an excellent relative result. At year end, we successfully launched Outrigger Re, deploying $205 million of capital. We finished the year with roughly $900 million of undeployed capital.”
The company noted, “Comprehensive income [loss] attributable to common shareholders was $40 million and $788 million in the fourth quarter and year ended December 31, 2022 compared to $34 million and $[273] million in the fourth quarter and year ended December 31, 2021.
“Results in the year ended December 31, 2022 were driven primarily by the net gain from the sale of NSM of $876 million recorded in the third quarter, which included the impact of compensation and other costs recorded in Other Operations. Results in the year ended December 31, 2021 were driven primarily by $380 million of net realized and unrealized investment losses from White Mountains’s investment in MediaAlpha.
“During the fourth quarter of 2022, White Mountains invested $205 million into Outrigger Re Ltd., a newly-formed Bermuda special purpose insurer that will provide reinsurance protection on a portion of Ark’s Bermuda global property catastrophe portfolio written in calendar year 2023.”
