HAMILTON, Bermuda, Aug. 4,
2017 /PRNewswire/ -- White Mountains Insurance Group, Ltd.
(NYSE: WTM) reported book value per share of $798 and adjusted book value per share of
$780 as of June 30, 2017.
On May 2, 2017, OneBeacon entered
into a definitive agreement to be acquired by Intact Financial
Corporation in an all-cash transaction for $18.10 per share, or roughly 1.65x tangible book
value (the "OneBeacon Transaction"). Since the OneBeacon
Transaction was set at a fixed price, OneBeacon's results were
economically transferred to the buyer at signing. The
transaction is expected to close in the third or fourth quarter of
2017 and is subject to regulatory approval and other customary
closing conditions. Including the estimated net gain of
$116 per share from the OneBeacon
Transaction, book value per share would be approximately
$914 and adjusted book value per
share would be approximately $896 as
of June 30, 2017.
During the quarter, White Mountains changed its calculation of
adjusted book value per share to (i) include a discount for the
time value of money on the BAM surplus notes and (ii) add back the
unearned premium reserve, net of deferred acquisition costs, at HG
Global. These changes decreased adjusted book value per share
by $23.
Book value per share increased 1% for both the second quarter
and first six months of 2017 and adjusted book value per share
decreased 2% for both the second quarter and first six months of
2017, including dividends.
Manning Rountree, CEO, commented, "Including the estimated gain
from the OneBeacon Transaction, we ended the quarter with an ABVPS
of $896. This included the
$23 per share decrease arising from
adjustments to the value of HG Global/BAM. Our underlying
growth in ABVPS was 1.4%(1). The investment
portfolio returned 1.4% in the quarter, a good result.
OneBeacon had a difficult quarter with a 107% combined ratio.
BAM's par insured volume stalled in June, reflecting the
uncertainty surrounding S&P's ratings review. On
June 26, S&P affirmed BAM's AA
rating with stable outlook, and we expect BAM to get back on track
sooner rather than later. In July, we repurchased 235,000
White Mountains common shares for $200
million, leaving us with $1.5
billion in undeployed capital, which will grow to
$2.8 billion when the OneBeacon
Transaction closes."
Comprehensive income attributable to common shareholders was
$16 million and $51 million in the second quarter and first six
months of 2017, compared to $449
million and $500 million in
the second quarter and first six months of 2016. Net income
attributable to common shareholders was $16
million and $50 million in the
second quarter and first six months of 2017, compared to
$341 million and $354 million in the second quarter and first six
months of 2016.
Beginning in the second quarter of 2017, OneBeacon's results
have been presented as discontinued operations. As a result,
MediaAlpha's results have been presented as a separate segment
within White Mountains's consolidated financial statements.
MediaAlpha is an advertising technology company that develops
transparent and efficient platforms for the buying and selling of
insurance and other vertical-specific performance media (i.e.,
clicks, calls and leads).
(1) See "Regulation G" on page 11.
OneBeacon
OneBeacon's reported book value per share increased 0.1% for the
second quarter and 2.9% for the first six months of 2017, including
dividends. OneBeacon's combined ratio was 107% and 101% for
the second quarter and first six months of 2017, compared to 103%
and 99% for the second quarter and first six months of 2016.
The increases in the combined ratios were driven largely by
increased losses in the Financial Institutions, Healthcare, and
Program businesses. Catastrophe losses added four points and
two points to the combined ratios for the second quarter and first
six months of 2017, compared to two points and one point for the
second quarter and first six months of 2016. Texas hail storms primarily affecting
Government Risks were the main driver of catastrophe losses in the
quarter. Net unfavorable loss reserve development, primarily
in the Program business, added three points and one point for the
second quarter and first six months of 2017, compared to six points
and three points in the second quarter and first six months of
2016. Transaction related incentive compensation expenses
added two points and one point for the second quarter and first six
months of 2017.
Net written premiums were $290
million and $547 million in
the second quarter and first six months of 2017, compared to
$261 million and $541 million in the second quarter and first six
months of 2016.
Mike Miller, CEO of OneBeacon,
said, "The big news in the quarter was our agreement to merge with
Intact Financial, which remains on track to close this year.
Our underwriting results for the quarter were adversely impacted by
elevated catastrophe losses and increased incentive compensation
expenses associated with the pending merger agreement. In
addition, our Program business continues to underperform, and we
are considering strategic alternatives for that business. On
a year-to-date basis, excluding the Program business and
normalizing catastrophe losses and incentive compensation expenses,
the remaining portfolio of businesses continues to run at a
combined ratio in the mid 90's. Net written premium growth in
the quarter was strong and broadly based, with twelve of our
sixteen business units contributing."
HG Global/BAM
BAM insured municipal bonds with par value of $2.7 billion and $5.1
billion in the second quarter and first six months of 2017,
compared to $3.3 billion and
$5.5 billion in the second quarter
and first six months of 2016. Gross written premiums and
member surplus contributions totaled $20
million and $48 million in the
second quarter and first six months of 2017, compared to
$19 million and $32 million in the second quarter and first six
months of 2016. Total pricing (i.e., premiums and member
surplus contributions weighted by the par value of bonds insured)
was 79 and 98 basis points in the second quarter and first six
months of 2017, up from 58 and 60 basis points in the second
quarter and first six months of 2016. BAM's total claims
paying resources increased $32
million to $676 million in the
first six months of 2017, compared to an increase of $16 million to $617
million in the first six months of 2016.
Seán McCarthy, CEO of BAM, said, "BAM's par insured volume
dipped in the second quarter of 2017, as compared to the second
quarter of 2016, driven by the rating uncertainty during S&P's
in-depth review. On June 26, S&P
affirmed BAM's AA rating and stable outlook, validating BAM's
achievements over our first five years of operation.
Notwithstanding the hiccup in June, we insured more than 200
new-issue transactions during the quarter, with good average
pricing, and posted our 11th consecutive quarter of growth in
claims-paying resources. During the credit watch period, investors
and underwriters were outspoken in their support for BAM's mutual
structure and municipal-only insured portfolio. We are
confident that support will continue as we get back to business as
usual."
HG Global reported pre-tax income of $7
million and $13 million in the
second quarter and first six months of 2017, compared to pre-tax
income of $6 million and $13 million in the second quarter and the first
six months of 2016. In non-controlling interests, White
Mountains reported $12 million and
$24 million of GAAP pre-tax loss
related to BAM in the second quarter and first six months of 2017,
compared to $9 million and
$17 million in the second quarter and
first six months of 2016. The increase in the pre-tax loss
was primarily driven by lower realized and unrealized investment
gains on BAM's fixed income portfolio in the second quarter and
first six months of 2017, compared to the second quarter and first
six months of 2016.
As a mutual insurance company that is owned by its members,
BAM's results do not affect White Mountains's book value per share
or adjusted book value per share. However, White
Mountains consolidates BAM's results in its GAAP financial
statements, and its results are attributed to non-controlling
interests.
MediaAlpha
MediaAlpha reported revenues of $31
million and $63 million in the
second quarter and first six months of 2017, compared to
$28 million and $61 million in the second quarter and first six
months of 2016. The increases in revenues were primarily
driven by the continued growth of MediaAlpha's non-P&C
verticals.
Cost of sales was $26 million and
$54 million in the second quarter and
first six months of 2017, compared to $23
million and $51 million in the
second quarter and first six months of 2016. The increases in
cost of sales were primarily driven by revenue growth, as
MediaAlpha's cost of sales is comprised primarily of revenue share
based payments to partners.
Pre-tax loss was $2 million and
$3 million in the second quarter and
first six months of 2017, compared to $1
million in both the second quarter and first six months of
2016. MediaAlpha's earnings before interest, taxes,
depreciation and amortization ("EBITDA") was $1 million and $3
million in the second quarter and first six months of 2017,
compared to $2 million and
$4 million in the second quarter and
first six months of 2016. The increase in pre-tax loss and
decrease in EBITDA was primarily driven by increased operating
expenses of $1 million for both the
second quarter and first six months of 2017, as MediaAlpha
continued to invest in growth in new verticals.
Other Operations
White Mountains's Other Operations segment reported pre-tax
income of $6 million and $14 million in the second quarter and first six
months of 2017, compared to pre-tax loss of $21 million and $50
million in the second quarter and first six months of
2016. The improved results were driven by higher investment
returns. Net realized and unrealized gains were $33 million and $68
million in the second quarter and first six months of 2017,
compared to near break-even and $6
million in the second quarter and first six of 2016.
Net investment income was $12 million
and $22 million in the second quarter
and first six months of 2017, compared to $4
million in both the second quarter and first six months of
2016.
White Mountains's Other Operations segment reported general and
administrative expenses of $41
million and $85 million in the
second quarter and first six months of 2017, compared to
$30 million and $69 million the second quarter and first six
months of 2016. Both increases were driven by higher
incentive compensation costs, primarily in connection with the
OneBeacon Transaction, and severance related to former company
executives.
Investment Activities
The GAAP total return on invested assets was 1.4% for the second
quarter of 2017 and 2.9% for the first six months of 2017.
This compared to a return of 0.8% for the second quarter of 2016
and 2.4% for the first six months of 2016.
David Linker, President and Chief
Investment Officer of White Mountains Advisors, said, "The
total portfolio returned 1.4% for the quarter, a good result.
The fixed income portfolio returned 1.0% for the quarter, ahead of
the longer duration Bloomberg Barclays Intermediate Aggregate
Index. Fixed income duration remained relatively constant in
the quarter at approximately 3.0 years. The risk asset
portfolio returned 2.6% for the quarter. Within this portfolio,
common stocks and ETFs returned 4.2%, ahead of the S&P 500
Index. Each of our 3rd party managers outperformed their
respective benchmarks. Our other long-term investments
portfolio returned -1.4%, principally driven by the impact of a
weakening dollar on currency hedges on foreign investments.
Risk assets finished the quarter at 32% of the total investment
portfolio including OneBeacon, up nine points for the quarter and
12 points for the year. The increase reflects the net
addition of $495 million of new risk
assets in the quarter, the bulk of which were added in anticipation
of the closing of the OneBeacon transaction and the resulting
movement of OneBeacon's $442 million
of risk assets off of our balance sheet."
Additional Information
White Mountains is a Bermuda-domiciled financial services holding
company traded on the New York Stock Exchange and the Bermuda Stock
Exchange under the symbol WTM. Additional financial
information and other items of interest are available at the
company's website located at www.whitemountains.com. White
Mountains expects to file its Form 10-Q today with the Securities
and Exchange Commission and urges shareholders to refer to that
document for more complete information concerning its financial
results.
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(millions)
(Unaudited)
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
June 30,
2016
|
Assets
|
|
|
|
|
|
|
Fixed maturity
investments
|
|
$
|
1,566.9
|
|
|
$
|
2,081.1
|
|
|
$
|
2,243.0
|
|
Short-term
investments
|
|
71.6
|
|
|
174.9
|
|
|
307.3
|
|
Common equity
securities
|
|
827.9
|
|
|
285.6
|
|
|
170.4
|
|
Other long-term
investments
|
|
226.5
|
|
|
172.8
|
|
|
182.0
|
|
Total
investments
|
|
2,692.9
|
|
|
2,714.4
|
|
|
2,902.7
|
|
|
|
|
|
|
|
|
Cash
|
|
53.3
|
|
|
80.2
|
|
|
62.1
|
|
Insurance premiums
receivable
|
|
2.8
|
|
|
1.6
|
|
|
1.5
|
|
Deferred acquisition
costs
|
|
13.0
|
|
|
10.6
|
|
|
8.7
|
|
Accounts receivable
on unsettled investment sales
|
|
199.5
|
|
|
4.8
|
|
|
17.0
|
|
Goodwill and other
intangible assets
|
|
49.5
|
|
|
54.7
|
|
|
51.5
|
|
Other
assets
|
|
78.8
|
|
|
78.9
|
|
|
62.3
|
|
Assets held for
sale
|
|
3,696.4
|
|
|
3,599.5
|
|
|
3,959.8
|
|
Total
assets
|
|
$
|
6,786.2
|
|
|
$
|
6,544.7
|
|
|
$
|
7,065.6
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Unearned insurance
premiums
|
|
$
|
109.9
|
|
|
$
|
82.9
|
|
|
$
|
63.3
|
|
Debt
|
|
10.6
|
|
|
12.7
|
|
|
16.8
|
|
Accrued incentive
compensation
|
|
63.3
|
|
|
95.7
|
|
|
78.6
|
|
Accounts payable on
unsettled investment purchases
|
|
114.6
|
|
|
—
|
|
|
53.4
|
|
Other
liabilities
|
|
44.9
|
|
|
46.9
|
|
|
55.2
|
|
Liabilities held for
sale
|
|
2,678.8
|
|
|
2,569.3
|
|
|
2,698.9
|
|
Total
liabilities
|
|
3,022.1
|
|
|
2,807.5
|
|
|
2,966.2
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
White Mountains's
common shareholders' equity
|
|
|
|
|
|
|
White Mountains's
common shares and paid-in surplus
|
|
815.1
|
|
|
810.7
|
|
|
873.1
|
|
Retained
earnings
|
|
2,835.2
|
|
|
2,797.2
|
|
|
3,006.6
|
|
Accumulated other
comprehensive loss, after tax:
|
|
|
|
|
|
|
Net unrealized
foreign currency translation losses
|
|
—
|
|
|
(1.4)
|
|
|
(.7)
|
|
Accumulated other
comprehensive loss from net change
in benefit plan assets and
obligations
|
|
(3.0)
|
|
|
(3.2)
|
|
|
(3.8)
|
|
|
|
|
|
|
|
|
Total White
Mountains's common shareholders' equity
|
|
3,647.3
|
|
|
3,603.3
|
|
|
3,875.2
|
|
Non-controlling
interests
|
|
116.8
|
|
|
133.9
|
|
|
224.2
|
|
Total
equity
|
|
3,764.1
|
|
|
3,737.2
|
|
|
4,099.4
|
|
Total liabilities
and equity
|
|
$
|
6,786.2
|
|
|
$
|
6,544.7
|
|
|
$
|
7,065.6
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
BOOK VALUE AND
ADJUSTED BOOK VALUE PER SHARE
(Unaudited)
|
|
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
June 30,
2016
|
Book value per
share numerators (in millions):
|
|
|
|
|
|
|
|
|
White Mountains's
common shareholders' equity - GAAP book value per
share numerator
|
|
$
|
3,647.3
|
|
|
$
|
3,625.2
|
|
|
$
|
3,603.3
|
|
|
$
|
3,875.2
|
|
Future proceeds from
options (1)
|
|
—
|
|
|
—
|
|
|
29.7
|
|
|
89.0
|
|
Time-value of money
discount on expected future payments on the BAM Surplus Notes
(2)
|
|
(166.7)
|
|
|
N/A
|
|
N/A
|
|
N/A
|
HG Global's unearned
premium reserve (2)
|
|
81.5
|
|
|
N/A
|
|
N/A
|
|
N/A
|
HG Global's net
deferred acquisition costs (2)
|
|
(17.6)
|
|
|
N/A
|
|
N/A
|
|
N/A
|
Adjusted book value
per share numerator
|
|
$
|
3,544.5
|
|
|
$
|
3,625.2
|
|
|
$
|
3,633.0
|
|
|
$
|
3,964.2
|
|
Book value per
share denominators (in thousands of shares):
|
|
|
|
|
|
|
|
|
Common shares
outstanding - GAAP book value per share denominator
|
|
4,571.6
|
|
|
4,572.8
|
|
|
4,563.8
|
|
|
4,963.9
|
|
Unearned restricted
common shares
|
|
(27.4)
|
|
|
(34.7)
|
|
|
(25.9)
|
|
|
(33.2)
|
|
Options assumed
issued (1)
|
|
—
|
|
|
—
|
|
|
40.0
|
|
|
120.0
|
|
Adjusted book value
per share denominator
|
|
4,544.2
|
|
|
4,538.1
|
|
|
4,577.9
|
|
|
5,050.7
|
|
GAAP book value
per share
|
|
$
|
797.80
|
|
|
$
|
792.77
|
|
|
$
|
789.53
|
|
|
$
|
780.67
|
|
Adjusted book
value per share
|
|
$
|
780.00
|
|
|
$
|
798.83
|
|
|
$
|
793.58
|
|
|
$
|
784.90
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjusted book value per share at December 31, 2016 and June 30,
2016 includes the impact of non-qualified stock options that were
exercisable for $742 per common share. All non-qualified
options were exercised prior to their expiration date of January
20, 2017.
|
(2) Amount
reflects White Mountains's preferred share ownership in HG Global
of 96.9%.
|
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
June 30,
2016
|
Quarter-to-date
change in GAAP book value per share, including
dividends:
|
|
0.6
|
%
|
|
0.5
|
%
|
|
(1.0)
|
%
|
|
11.7
|
%
|
Quarter-to-date
change in adjusted book value per share, including
dividends:
|
|
(2.4)
|
%
|
|
0.8
|
%
|
|
(1.0)
|
%
|
|
11.4
|
%
|
Year-to-date
change in GAAP book value per share, including
dividends:
|
|
1.2
|
%
|
|
0.5
|
%
|
|
13.6
|
%
|
|
12.3
|
%
|
Year-to-date
change in adjusted book value per share, including
dividends:
|
|
(1.6)
|
%
|
|
0.8
|
%
|
|
13.7
|
%
|
|
12.4
|
%
|
Year-to-date
dividends per share
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
June 30,
2016
|
Summary of
goodwill and other intangible assets (in millions):
|
|
|
|
|
|
|
|
|
Goodwill:
|
|
|
|
|
|
|
|
|
MediaAlpha
|
|
$
|
18.3
|
|
|
18.3
|
|
|
$
|
18.3
|
|
|
$
|
18.3
|
|
Other
|
|
13.4
|
|
|
13.4
|
|
|
13.4
|
|
|
5.8
|
|
Total
goodwill
|
|
31.7
|
|
|
31.7
|
|
|
31.7
|
|
|
24.1
|
|
|
|
|
|
|
|
|
|
|
Other intangible
assets:
|
|
|
|
|
|
|
|
|
MediaAlpha
|
|
13.4
|
|
|
15.9
|
|
|
18.3
|
|
|
23.3
|
|
Other
|
|
4.4
|
|
|
4.5
|
|
|
4.7
|
|
|
4.1
|
|
Total other
intangible assets
|
|
17.8
|
|
|
20.4
|
|
|
23.0
|
|
|
27.4
|
|
|
|
|
|
|
|
|
|
|
Total goodwill and
other intangible assets
|
|
49.5
|
|
|
52.1
|
|
|
54.7
|
|
|
51.5
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets held for sale
|
|
.6
|
|
|
.9
|
|
|
1.2
|
|
|
316.9
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets attributed to non-controlling
interests
|
|
(15.8)
|
|
|
(16.9)
|
|
|
(17.6)
|
|
|
(131.5)
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets included in White Mountains's
common shareholders' equity
|
|
$
|
34.3
|
|
|
$
|
36.1
|
|
|
$
|
38.3
|
|
|
$
|
236.9
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(millions, except
per share amounts)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
|
2.2
|
|
|
$
|
3.3
|
|
|
$
|
5.2
|
|
|
$
|
6.8
|
|
Net investment
income
|
|
14.7
|
|
|
6.1
|
|
|
27.5
|
|
|
8.6
|
|
Net realized and
unrealized investment gains
|
|
33.7
|
|
|
3.4
|
|
|
70.0
|
|
|
16.3
|
|
Advertising and
commission revenues
|
|
33.2
|
|
|
29.2
|
|
|
71.7
|
|
|
63.0
|
|
Other
revenue
|
|
1.6
|
|
|
7.2
|
|
|
4.5
|
|
|
13.3
|
|
Total
revenues
|
|
85.4
|
|
|
49.2
|
|
|
178.9
|
|
|
108.0
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
—
|
|
|
2.3
|
|
|
1.1
|
|
|
4.6
|
|
Insurance acquisition
expenses
|
|
.9
|
|
|
1.4
|
|
|
2.2
|
|
|
3.1
|
|
Other underwriting
expenses
|
|
.1
|
|
|
.1
|
|
|
.2
|
|
|
.2
|
|
Cost of
sales
|
|
26.8
|
|
|
24.4
|
|
|
55.6
|
|
|
52.9
|
|
General and
administrative expenses
|
|
54.9
|
|
|
42.2
|
|
|
112.7
|
|
|
94.1
|
|
Amortization of other
intangible assets
|
|
2.6
|
|
|
3.0
|
|
|
5.2
|
|
|
5.8
|
|
Interest
expense
|
|
.5
|
|
|
.9
|
|
|
.9
|
|
|
2.1
|
|
Total
expenses
|
|
85.8
|
|
|
74.3
|
|
|
177.9
|
|
|
162.8
|
|
Pre-tax (loss)
income from continuing operations
|
|
(.4)
|
|
|
(25.1)
|
|
|
1.0
|
|
|
(54.8)
|
|
Income tax
benefit
|
|
1.0
|
|
|
4.0
|
|
|
1.3
|
|
|
5.6
|
|
Net income (loss)
from continuing operations
|
|
.6
|
|
|
(21.1)
|
|
|
2.3
|
|
|
(49.2)
|
|
(Loss) gain from sale
of discontinued operations, net of tax
|
|
(.6)
|
|
|
366.6
|
|
|
(1.6)
|
|
|
366.6
|
|
Net income from
discontinued operations, net of tax
|
|
3.4
|
|
|
17.0
|
|
|
35.7
|
|
|
64.4
|
|
Net
income
|
|
3.4
|
|
|
362.5
|
|
|
36.4
|
|
|
381.8
|
|
Net loss (income)
attributable to non-controlling interests
|
|
12.1
|
|
|
(21.4)
|
|
|
13.4
|
|
|
(27.7)
|
|
Net income
attributable to White Mountains's common
shareholders
|
|
15.5
|
|
|
341.1
|
|
|
49.8
|
|
|
354.1
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
|
Change in foreign
currency translation, net of tax
|
|
.6
|
|
|
(.2)
|
|
|
1.4
|
|
|
(.1)
|
|
Comprehensive income
from discontinued operations, net of tax
|
|
.2
|
|
|
108.3
|
|
|
.3
|
|
|
145.5
|
|
Comprehensive
income
|
|
16.3
|
|
|
449.2
|
|
|
51.5
|
|
|
499.5
|
|
Other comprehensive
income attributable to non-controlling interests
|
|
(.1)
|
|
|
—
|
|
|
(.1)
|
|
|
—
|
|
Comprehensive
income attributable to White Mountains's common
shareholders
|
|
$
|
16.2
|
|
|
$
|
449.2
|
|
|
$
|
51.4
|
|
|
$
|
499.5
|
|
|
|
|
|
|
|
|
|
|
Income per share
attributable to White Mountains's common
shareholders
|
|
|
|
|
|
|
|
|
Basic income
(loss) per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
2.78
|
|
|
$
|
(8.34)
|
|
|
$
|
3.42
|
|
|
$
|
(14.47)
|
|
Discontinued
operations
|
|
.61
|
|
|
75.27
|
|
|
7.47
|
|
|
81.04
|
|
Total consolidated
operations
|
|
$
|
3.39
|
|
|
$
|
66.93
|
|
|
$
|
10.89
|
|
|
$
|
66.57
|
|
|
|
|
|
|
|
|
|
|
Diluted income
(loss) per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
2.78
|
|
|
$
|
(8.32)
|
|
|
$
|
3.42
|
|
|
$
|
(14.46)
|
|
Discontinued
operations
|
|
.61
|
|
|
75.11
|
|
|
7.47
|
|
|
80.96
|
|
Total consolidated
operations
|
|
$
|
3.39
|
|
|
$
|
66.79
|
|
|
$
|
10.89
|
|
|
$
|
66.50
|
|
Dividends declared
per White Mountains's common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
QTD SEGMENT
STATEMENTS OF PRE-TAX (LOSS) INCOME
(millions)
(Unaudited)
|
|
For the Three
Months Ended June 30, 2017
|
|
HG
Global/BAM
|
|
|
|
|
|
|
|
|
HG
Global
|
|
BAM
|
|
MediaAlpha
|
|
Other
|
|
Total
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
|
1.7
|
|
|
$
|
.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.2
|
|
Net investment
income
|
|
.8
|
|
|
2.2
|
|
|
—
|
|
|
11.7
|
|
|
14.7
|
|
Net investment income
(loss) - BAM surplus note interest
|
|
4.7
|
|
|
(4.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net realized and
unrealized investment gains
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
32.6
|
|
|
33.7
|
|
Advertising and
commission revenues
|
|
—
|
|
|
—
|
|
|
30.8
|
|
|
2.4
|
|
|
33.2
|
|
Other
revenue
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
1.4
|
|
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
7.2
|
|
|
(.7)
|
|
|
30.8
|
|
|
48.1
|
|
|
85.4
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Insurance acquisition
expenses
|
|
.3
|
|
|
.6
|
|
|
—
|
|
|
—
|
|
|
.9
|
|
Other underwriting
expenses
|
|
—
|
|
|
.1
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
Cost of
sales
|
|
—
|
|
|
—
|
|
|
26.1
|
|
|
.7
|
|
|
26.8
|
|
General and
administrative expenses
|
|
.2
|
|
|
10.1
|
|
|
3.7
|
|
|
40.9
|
|
|
54.9
|
|
Amortization of other
intangible assets
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
.1
|
|
|
2.6
|
|
Interest
expense
|
|
—
|
|
|
—
|
|
|
.3
|
|
|
.2
|
|
|
.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
.5
|
|
|
10.8
|
|
|
32.6
|
|
|
41.9
|
|
|
85.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
(loss)
|
|
$
|
6.7
|
|
|
$
|
(11.5)
|
|
|
$
|
(1.8)
|
|
|
$
|
6.2
|
|
|
$
|
(.4)
|
|
|
For the Three
Months Ended June 30, 2016
|
|
HG
Global/BAM
|
|
|
|
|
|
|
|
|
HG
Global
|
|
BAM
|
|
MediaAlpha
|
|
Other
|
|
Total
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
|
1.0
|
|
|
$
|
.4
|
|
|
$
|
—
|
|
|
$
|
1.9
|
|
|
$
|
3.3
|
|
Net investment
income
|
|
.5
|
|
|
1.8
|
|
|
—
|
|
|
3.8
|
|
|
6.1
|
|
Net investment income
(loss) - BAM surplus note interest
|
|
4.4
|
|
|
(4.4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net realized and
unrealized investment gains (losses)
|
|
.5
|
|
|
3.2
|
|
|
—
|
|
|
(.3)
|
|
|
3.4
|
|
Advertising and
commission revenues
|
|
—
|
|
|
—
|
|
|
28.1
|
|
|
1.1
|
|
|
29.2
|
|
Other
revenue
|
|
—
|
|
|
.3
|
|
|
—
|
|
|
6.9
|
|
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
6.4
|
|
|
1.3
|
|
|
28.1
|
|
|
13.4
|
|
|
49.2
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
2.3
|
|
Insurance acquisition
expenses
|
|
.2
|
|
|
.6
|
|
|
—
|
|
|
.6
|
|
|
1.4
|
|
Other underwriting
expenses
|
|
—
|
|
|
.1
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
Cost of
sales
|
|
—
|
|
|
—
|
|
|
23.3
|
|
|
1.1
|
|
|
24.4
|
|
General and
administrative expenses
|
|
.3
|
|
|
9.6
|
|
|
2.7
|
|
|
29.6
|
|
|
42.2
|
|
Amortization of other
intangible assets
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
.4
|
|
|
3.0
|
|
Interest
expense
|
|
—
|
|
|
—
|
|
|
.2
|
|
|
.7
|
|
|
.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
.5
|
|
|
10.3
|
|
|
28.8
|
|
|
34.7
|
|
|
74.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
(loss)
|
|
$
|
5.9
|
|
|
$
|
(9.0)
|
|
|
$
|
(.7)
|
|
|
$
|
(21.3)
|
|
|
$
|
(25.1)
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
YTD SEGMENT
STATEMENTS OF PRE-TAX (LOSS) INCOME
(millions)
(Unaudited)
|
|
For the Six Months
Ended June 30, 2017
|
|
HG
Global/BAM
|
|
|
|
|
|
|
|
|
HG
Global
|
|
BAM
|
|
MediaAlpha
|
|
Other
|
|
Total
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
|
3.2
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
1.0
|
|
|
$
|
5.2
|
|
Net investment
income
|
|
1.4
|
|
|
4.2
|
|
|
—
|
|
|
21.9
|
|
|
27.5
|
|
Net investment income
(loss) - BAM surplus note interest
|
|
9.5
|
|
|
(9.5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net realized and
unrealized investment gains
|
|
.3
|
|
|
2.1
|
|
|
—
|
|
|
67.6
|
|
|
70.0
|
|
Advertising and
commission revenues
|
|
—
|
|
|
—
|
|
|
63.3
|
|
|
8.4
|
|
|
71.7
|
|
Other
revenue
|
|
—
|
|
|
.6
|
|
|
—
|
|
|
3.9
|
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
14.4
|
|
|
(1.6)
|
|
|
63.3
|
|
|
102.8
|
|
|
178.9
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
1.1
|
|
Insurance acquisition
expenses
|
|
.6
|
|
|
1.5
|
|
|
—
|
|
|
.1
|
|
|
2.2
|
|
Other underwriting
expenses
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
—
|
|
|
.2
|
|
Cost of
sales
|
|
—
|
|
|
—
|
|
|
53.8
|
|
|
1.8
|
|
|
55.6
|
|
General and
administrative expenses
|
|
.5
|
|
|
20.4
|
|
|
6.9
|
|
|
84.9
|
|
|
112.7
|
|
Amortization of other
intangible assets
|
|
—
|
|
|
—
|
|
|
4.9
|
|
|
.3
|
|
|
5.2
|
|
Interest
expense
|
|
—
|
|
|
—
|
|
|
.5
|
|
|
.4
|
|
|
.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
1.1
|
|
|
22.1
|
|
|
66.1
|
|
|
88.6
|
|
|
177.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
(loss)
|
|
$
|
13.3
|
|
|
$
|
(23.7)
|
|
|
$
|
(2.8)
|
|
|
$
|
14.2
|
|
|
$
|
1.0
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2016
|
|
HG
Global/BAM
|
|
|
|
|
|
|
|
|
HG
Global
|
|
BAM
|
|
MediaAlpha
|
|
Other
|
|
Total
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
|
1.9
|
|
|
$
|
.7
|
|
|
$
|
—
|
|
|
$
|
4.2
|
|
|
$
|
6.8
|
|
Net investment
income
|
|
1.0
|
|
|
3.4
|
|
|
—
|
|
|
4.2
|
|
|
8.6
|
|
Net investment income
(loss) - BAM surplus note interest
|
|
8.9
|
|
|
(8.9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net realized and
unrealized investment gains
|
|
2.6
|
|
|
8.1
|
|
|
—
|
|
|
5.6
|
|
|
16.3
|
|
Advertising and
commission revenues
|
|
—
|
|
|
—
|
|
|
60.8
|
|
|
2.2
|
|
|
63.0
|
|
Other
revenue
|
|
—
|
|
|
.4
|
|
|
—
|
|
|
12.9
|
|
|
13.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
14.4
|
|
|
3.7
|
|
|
60.8
|
|
|
29.1
|
|
|
108.0
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
|
4.6
|
|
Insurance acquisition
expenses
|
|
.4
|
|
|
1.3
|
|
|
—
|
|
|
1.4
|
|
|
3.1
|
|
Other underwriting
expenses
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
—
|
|
|
.2
|
|
Cost of
sales
|
|
—
|
|
|
—
|
|
|
51.0
|
|
|
1.9
|
|
|
52.9
|
|
General and
administrative expenses
|
|
.8
|
|
|
18.8
|
|
|
5.5
|
|
|
69.0
|
|
|
94.1
|
|
Amortization of other
intangible assets
|
|
—
|
|
|
—
|
|
|
5.1
|
|
|
.7
|
|
|
5.8
|
|
Interest
expense
|
|
—
|
|
|
—
|
|
|
.5
|
|
|
1.6
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
1.2
|
|
|
20.3
|
|
|
62.1
|
|
|
79.2
|
|
|
162.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
(loss)
|
|
$
|
13.2
|
|
|
$
|
(16.6)
|
|
|
$
|
(1.3)
|
|
|
$
|
(50.1)
|
|
|
$
|
(54.8)
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
SELECTED FINANCIAL
DATA
(Dollars in
millions)
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
BAM
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Gross par value of
primary market policies issued
|
|
$
|
2,574.3
|
|
|
$
|
3,083.6
|
|
|
$
|
4,615.3
|
|
|
$
|
5,180.4
|
|
Gross par value of
secondary market policies issued
|
|
118.6
|
|
|
255.7
|
|
|
456.7
|
|
|
337.5
|
|
Total gross
par value of market policies issued
|
|
$
|
2,692.9
|
|
|
$
|
3,339.3
|
|
|
$
|
5,072.0
|
|
|
$
|
5,517.9
|
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
|
$
|
12.4
|
|
|
$
|
8.9
|
|
|
$
|
31.1
|
|
|
$
|
15.7
|
|
Member surplus
contributions collected
|
|
7.7
|
|
|
10.0
|
|
|
17.3
|
|
|
16.7
|
|
Total gross
written premiums and member
surplus
contributions
|
|
$
|
20.1
|
|
|
$
|
18.9
|
|
|
$
|
48.4
|
|
|
$
|
32.4
|
|
Total
pricing
|
|
79
bps
|
|
|
58 bps
|
|
|
98
bps
|
|
|
60 bps
|
|
|
|
|
As of
June 30, 2017
|
|
As
of
December 31,
2016
|
Policyholders'
surplus
|
|
$
|
431.5
|
|
|
$
|
431.5
|
|
Contingency
reserve
|
|
28.5
|
|
|
22.7
|
|
Qualified
statutory capital
|
|
460.0
|
|
|
454.2
|
|
Statutory net
unearned premiums
|
|
26.9
|
|
|
23.2
|
|
Present value of
future installment
premiums
|
|
6.4
|
|
|
3.3
|
|
Collateral
trusts
|
|
182.6
|
|
|
163.0
|
|
Claims paying
resources
|
|
$
|
675.9
|
|
|
$
|
643.7
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
HG
Global
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net written
premiums
|
|
$
|
13.8
|
|
|
$
|
6.7
|
|
|
$
|
26.4
|
|
|
$
|
11.8
|
|
Earned
premiums
|
|
$
|
1.7
|
|
|
$
|
1.0
|
|
|
$
|
3.2
|
|
|
$
|
1.9
|
|
|
|
|
As of
June 30, 2017
|
|
As of
December 31, 2016
|
Unearned
premiums
|
|
$
|
84.0
|
|
|
$
|
60.7
|
|
Deferred
acquisition
|
|
$
|
18.1
|
|
|
$
|
11.0
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
MediaAlpha
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Advertising and
commission revenues
|
$
|
30.8
|
|
|
$
|
28.1
|
|
|
$
|
63.3
|
|
|
$
|
60.8
|
|
Cost of
sales
|
26.1
|
|
|
23.3
|
|
|
53.8
|
|
|
51.0
|
|
Gross
profit
|
4.7
|
|
|
4.8
|
|
|
9.5
|
|
|
9.8
|
|
General and
administrative expenses
|
3.7
|
|
|
2.7
|
|
|
6.9
|
|
|
5.5
|
|
Amortization of other
intangible assets
|
2.5
|
|
|
2.6
|
|
|
4.9
|
|
|
5.1
|
|
Interest
expense
|
.3
|
|
|
.2
|
|
|
.5
|
|
|
.5
|
|
GAAP pre-tax
loss
|
(1.8)
|
|
|
(.7)
|
|
|
(2.8)
|
|
|
(1.3)
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
GAAP net
loss
|
(1.8)
|
|
|
(.7)
|
|
|
(2.8)
|
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
|
|
Interest
expense
|
.3
|
|
|
.2
|
|
|
.5
|
|
|
.5
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
General and
administrative expenses -
depreciation
|
.1
|
|
|
.1
|
|
|
.1
|
|
|
.1
|
|
Amortization
of other intangible assets
|
2.5
|
|
|
2.6
|
|
|
4.9
|
|
|
5.1
|
|
EBITDA
|
$
|
1.1
|
|
|
$
|
2.2
|
|
|
$
|
2.7
|
|
|
$
|
4.4
|
|
Regulation G
This earnings release includes five non-GAAP financial measures
that have been reconciled to their most comparable GAAP financial
measures.
- Adjusted book value per share is a non-GAAP financial measure
which is derived by adjusting the GAAP book value per share
numerator to (i) include a discount for the time value of money on
the BAM surplus notes and (ii) add back the unearned premium
reserve, net of deferred acquisition costs, at HG Global. In
addition, the number of common shares outstanding used in the
calculation of adjusted book value per share are adjusted to
exclude unearned restricted common shares, the compensation cost of
which, at the date of calculation, has yet to be amortized. The
calculation of adjusted book value per share also includes the
dilutive effects of outstanding non-qualified options for periods
prior to January 20, 2017, the
expiration date of the non-qualified options.
Beginning in the second quarter of 2017, in its calculation of
adjusted book value per share, White Mountains has included a time
value of money discount relating to the expected future payments on
the BAM surplus notes. Under GAAP, White Mountains is required to
carry the BAM surplus notes, including accrued interest, at nominal
value with no consideration for time value of money. Based on a
debt service model that forecasts operating results for BAM through
maturity of the surplus notes, the present value of the BAM surplus
notes, including accrued interest, is estimated to be $172 million less than the nominal GAAP carrying
value. White Mountains has also included the value of HG Global's
unearned premium reserve net of deferred acquisition costs. White
Mountains believes these adjustments are useful to management and
investors in analyzing the intrinsic value of HG Global, including
the intrinsic value of the surplus notes and HG Global's
reinsurance subsidiary's (HG Re's) in-force business. The
reconciliation of GAAP book value per share to adjusted book value
per share is included on page 6.
- The underlying growth in adjusted book value per share included
in Mr. Rountree's quote on page 1 includes the estimated gain from
the OneBeacon Transaction and excludes the impact of the new
adjustments related to HG Global/BAM. A reconciliation from GAAP to
the reported percentage is as follows:
|
|
As
of
June 30,
2017
|
|
As
of
March 31,
2017
|
|
Growth
%
|
GAAP book value per
share
|
|
$
|
797.80
|
|
|
$
|
792.77
|
|
|
0.6
|
%
|
Adjustments to book
value per share (see reconciliation on page 6)
|
|
(17.80)
|
|
|
6.06
|
|
|
|
Adjusted book value
per share
|
|
780.00
|
|
|
798.83
|
|
|
(2.4)
|
%
|
Estimated gain from
OneBeacon Transaction
|
|
116.00
|
|
|
107.00
|
|
|
|
Adjusted book value
per share including the
estimated gain from the
OneBeacon Transaction
|
|
896.00
|
|
|
905.83
|
|
|
(1.1)
|
%
|
Reverse new
adjustments related to HG Global/BAM (see page 6)
|
|
22.62
|
|
|
N/A
|
|
|
|
Adjusted book value
per share including the estimated
gain from the OneBeacon
Transaction and excluding
the new adjustments related
to HG Global/BAM
|
|
$
|
918.62
|
|
|
$
|
905.83
|
|
|
1.4
|
%
|
- In the third quarter of 2016, White Mountains purchased
high-yield fixed maturity investments, which are U.S. dollar
denominated publicly traded and 144A debt securities issued by
corporations with generally at least one rating between "B-" and
"BB+" inclusive by S&P or similar ratings from other rating
agencies. Given the risk profile of these investments, the returns
on high-yield fixed maturity investments have been included with
the returns on common equity securities and other long-term
investments and excluded from the returns on fixed income
investments both of which Mr. Linker references in his quote on
page 4. A reconciliation of GAAP returns to the reported returns
are as follows:
|
|
Three months ended
June 30, 2017
|
|
|
GAAP
return
|
|
Impact of
high-yield fixed
maturity investments (1)
|
|
Reported
return
|
|
|
|
|
|
|
|
Common equity
securities and other long-term
investment returns
|
|
|
2.5
|
%
|
|
|
0.1
|
%
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Fixed income
investment returns
|
|
|
1.1
|
%
|
|
|
(0.1)
|
%
|
|
|
1.0
|
%
|
(1)
High-yield fixed maturity investments returned 3.0% for the second
quarter of 2017.
|
- In the second quarter of 2017, MediaAlpha became a reportable
segment, and White Mountains has included MediaAlpha's EBITDA
calculation as a non-GAAP financial measure. EBITDA is defined as
net income (loss) excluding interest expense on debt, income tax
benefit (expense), depreciation and amortization. White Mountains
believes that this non-GAAP financial measure is useful to
management and investors in analyzing MediaAlpha's economic
performance without the effects of interest rates, levels of debt,
effective tax rates, depreciation and amortization resulting from
purchase accounting. In addition, White Mountains believes that
investors use EBITDA as a supplemental measurement to evaluate the
overall operating performance of companies within the same
industry. See page 10 for the reconciliation of MediaAlpha's GAAP
net loss to EBITDA.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This earnings release may contain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of
1934. All statements, other than statements of historical
facts, included or referenced in this release which address
activities, events or developments which White Mountains expects or
anticipates will or may occur in the future are forward-looking
statements. The words "will", "believe", "intend", "expect",
"anticipate", "project", "estimate", "predict" and similar
expressions are also intended to identify forward-looking
statements. These forward-looking statements include, among
others, statements with respect to White Mountains's:
- change in adjusted book value per share or return on
equity;
- business strategy;
- financial and operating targets or plans;
- incurred loss and loss adjustment expenses and the adequacy of
its loss and loss adjustment expense reserves and related
reinsurance;
- projections of revenues, income (or loss), earnings (or loss)
per share, dividends, market share or other financial
forecasts;
- expansion and growth of its business and operations; and
- future capital expenditures.
These statements are based on certain assumptions and analyses
made by White Mountains in light of its experience and perception
of historical trends, current conditions and expected future
developments, as well as other factors believed to be appropriate
in the circumstances. However, whether actual results and
developments will conform to its expectations and predictions is
subject to a number of risks and uncertainties that could cause
actual results to differ materially from expectations,
including:
- the risk that OneBeacon Insurance Group, Ltd.'s proposed merger
with Intact Financial Corporation (the "Transaction") may not be
completed on the currently contemplated timeline or at all;
- the possibility that any or all of the various conditions to
the consummation of the Transaction may not be satisfied or waived,
including the failure to receive any required regulatory approvals
from any applicable governmental entities (or any conditions,
limitations or restrictions placed on such approvals);
- the occurrence of any event, change or other circumstance that
could give rise to the termination of the merger agreement dated
May 2, 2017, among OneBeacon, Intact
Financial Corporation and the other parties thereto (the "Merger
Agreement"), including in circumstances which would require
OneBeacon to pay a termination fee or other expenses;
- the risks related to diverting management's attention from
White Mountains's or OneBeacon's ongoing business operations and
other risks related to the announcement or pendency of the
Transaction, including on White Mountains's or OneBeacon's ability
to retain and hire key personnel, their ability to maintain
relationships with their customers, policyholders, brokers, service
providers and others with whom they do business and their operating
results and business generally;
- the risk that shareholder litigation in connection with the
transactions contemplated by the Merger Agreement may result in
significant costs of defense, indemnification and liability;
- the risks that are described from time to time in White
Mountains's filings with the Securities and Exchange Commission,
including but not limited to White Mountains's Annual Report on
Form 10-K for the fiscal year ended December
31, 2016 filed February 27,
2017;
- claims arising from catastrophic events, such as hurricanes,
earthquakes, floods, fires, terrorist attacks or severe winter
weather;
- the continued availability of capital and financing;
- general economic, market or business conditions;
- business opportunities (or lack thereof) that may be presented
to it and pursued;
- competitive forces, including the conduct of other property and
casualty insurers and reinsurers;
- changes in domestic or foreign laws or regulations, or their
interpretation, applicable to White Mountains, its competitors or
its customers;
- an economic downturn or other economic conditions adversely
affecting its financial position;
- recorded loss reserves subsequently proving to have been
inadequate;
- actions taken by ratings agencies from time to time, such as
financial strength or credit ratings downgrades or placing ratings
on negative watch; and
- other factors, most of which are beyond White Mountains's
control.
Consequently, all of the forward-looking statements made in this
earnings release are qualified by these cautionary statements, and
there can be no assurance that the actual results or developments
anticipated by White Mountains will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on, White Mountains or its business or
operations. White Mountains assumes no obligation to publicly
update any such forward-looking statements, whether as a result of
new information, future events or otherwise.
CONTACT:
|
Todd
Pozefsky
|
|
(203)
458-5807
|
View original
content:http://www.prnewswire.com/news-releases/white-mountains-reports-second-quarter-results-300499696.html
SOURCE White Mountains Insurance Group, Ltd.