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White Mountains Q1 2025 Earnings Report
White Mountains reported a slight increase in book value per share and solid operating results for the first quarter of 2025.
Key Takeaways
White Mountains Insurance Group, Ltd. reported a slight increase in book value per share to $1,752 as of March 31, 2025, driven by solid operating results and good investment returns, partially offset by a decline in MediaAlpha's share price. The company's total revenues for the quarter were $577.8 million, with a net income of $33.9 million.
Book value per share increased slightly to $1,752 as of March 31, 2025, including dividends.
Ark/WM Outrigger segment reported gross written premiums of $1,108 million, a 27% increase year-over-year, and a combined ratio of 97%.
Kudu's total revenues were $64 million, with pre-tax income of $53 million and adjusted EBITDA of $16 million.
Bamboo's commission and fee revenues doubled year-over-year to $44 million, with MGA adjusted EBITDA tripling to $20 million.
White Mountains
White Mountains
White Mountains Revenue by Segment
Revenue by Segment
P&C Insurance and Reinsurance Revenue
CapyFin.comFinancial Guarantee Revenue
CapyFin.comAsset Management Revenue
CapyFin.comP&C Insurance Distribution Revenue
CapyFin.comOther Operations Revenue
CapyFin.com Forward Guidance
White Mountains expects to remain active in deploying capital and anticipates continued profitable growth across its businesses, despite some market challenges.
Positive Outlook
- Kudu expects to remain active in deploying capital throughout 2025, indicating continued investment opportunities.
- Bamboo is well-positioned to drive continued profitable growth, supported by favorable reinsurance treaty renewals.
- Ark anticipates continued attractive market conditions, despite some rate declines in certain lines of business.
- New capital deployments into BroadStreet Partners and Enterprise Solutions are expected to contribute to future growth.
- The company's strong capital position, with approximately $550 million in undeployed capital, provides flexibility for future strategic initiatives.
Challenges Ahead
- MediaAlpha's share price declined 18% in the quarter, resulting in a $37 million mark-to-market loss.
- HG Global had a slow first quarter, with gross written premiums decreasing by 25% year-over-year due to lower primary market activity.
- Ark noted rate declines in several lines of business, which could impact future premium growth.
- The company's forward-looking statements are subject to risks and uncertainties, including catastrophic events, market volatility, and regulatory changes.
- The total consolidated portfolio return was lower in Q1 2025 compared to Q1 2024, indicating a more challenging investment environment.