White Mountains Reports Q4 2023 Results
White Mountains Insurance Group, Ltd. reported book value per share of $1,656 and adjusted book value per share of $1,704 as of December 31, 2023. Book value per share and adjusted book value per share both increased 7% in the fourth quarter of 2023 and 14% in the year ended December 31, 2023, including dividends.”
Manning Rountree, CEO, commented, “We had a strong fourth quarter to cap off a good year. ABVPS was up 7% in the quarter and 14% for the full year. In the quarter, we had good results from our operating companies and excellent returns in our investment portfolio. BAM produced $48 million of gross written premiums and member surplus contributions in the quarter. Ark produced good underwriting results in both the quarter and the full year, while growing full-year gross written premiums by 31%. Kudu grew the fair value of its continuing portfolio and closed two new deployments in the quarter.
“Our investment portfolio was up 6% in the quarter and 11% for the year. The value of our MediaAlpha position grew $66 million in the quarter and $27 million for the year. We redeployed $130 million into Outrigger Re for the coming year and closed on our acquisition of Bamboo in early January. Undeployed capital stands at roughly $500 million.”
The spokesperson said, “Comprehensive income attributable to common shareholders was $288 million and $511 million in the fourth quarter and year ended December 31, 2023 compared to $40 million and $788 million in the fourth quarter and year ended December 31, 2022. Results in the fourth quarter and year ended December 31, 2023 included $66 million and $27 million of unrealized investment gains [losses] from White Mountains’s investment in MediaAlpha compared to $20 million and $[93] million in the fourth quarter and year ended December 31, 2022. Results in the year ended December 31, 2022 also included the net gain from the sale of NSM of $876 million.
“On December 27, 2023, Bermuda enacted a 15% corporate income tax that will generally become effective on January 1, 2025. White Mountains expects to meet the requirements to be exempt from the Bermuda corporate income tax and the Pillar Two worldwide minimum tax until January 1, 2030. The Bermuda legislation also provides for an economic transition adjustment that will reduce future years’ taxable income.
“Under U.S. GAAP, this economic transition adjustment was required to be recognized in 2023 and led to the recording of a deferred tax asset as of December 31, 2023. Accordingly, White Mountains’s results in the fourth quarter and year ended December 31, 2023 included a net deferred tax benefit of $68 million related to the economic transition adjustment, of which $51 million was recorded at Ark and $17 million was recorded at HG Global. This tax benefit increased both book value per share and adjusted book value per share by approximately $14, net of noncontrolling interest and the impact on the fair value of Ark’s contingent consideration.”
