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Mar 31, 2021
White Mountains Q1 2021 Earnings Report
Reported a comprehensive loss attributable to common shareholders and a decrease in book value per share and adjusted book value per share.
Key Takeaways
White Mountains Insurance Group reported a decrease in adjusted book value per share of 2% in Q1 2021, impacted by a mark-to-market decline in MediaAlpha and a loss from NSM's sale of Fresh Insurance. However, underlying operating results were sound, with BAM achieving its strongest first quarter and Ark's gross written premiums more than doubling year over year.
Adjusted book value per share decreased by 2% in Q1 2021, including dividends.
BAM experienced its strongest first quarter on record, driven by primary market penetration and a significant assumed reinsurance transaction.
Ark's gross written premiums increased by more than 2x year over year, with renewal pricing up more than 10%.
NSM posted solid growth in both pro forma controlled premiums and pro forma adjusted EBITDA.
White Mountains
White Mountains
White Mountains Revenue by Segment
Revenue by Segment
Financial Guarantee Revenue
CapyFin.comAsset Management Revenue
CapyFin.comOther Operations Revenue
CapyFin.com Forward Guidance
Market conditions remain attractive, and White Mountains is optimistic about profitable growth in the book.
Positive Outlook
- Operational execution has been strong.
- Hiring is more or less complete.
- Driven by a good January renewal season.
- Gross written premiums were $405 million in the quarter, more than double 2020 levels.
- Blended renewal pricing up over 10%.
Challenges Ahead
- Catastrophe losses were unusually heavy in the first quarter.
- Heavy cat losses in the quarter added 17 points to the loss ratio.
- Adjusted combined ratio of 108% for the quarter.
- COVID-19 pandemic is negatively impacting the finances of municipalities to varying degrees.
- Over time, financial stress could emerge.
Revenue & Expenses
Visualization of income flow from segment revenue to net income