WHITE MOUNTAINS INSURANCE GROUP LTD
For the period ended Dec 31, 2024. Filed Feb 28, 2025.
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FY2024 · Filed Feb 28, 2025
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II. Condensed financial information of the Registrant
SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
CONDENSED BALANCE SHEETS(1)
| December 31, | ||
|---|---|---|
| Millions | 2024 | 2023 |
| Assets: | ||
| Cash | $.1 | $.3 |
| Fixed maturity investments, at fair value | 70.0 | — |
| Common equity securities, at fair value | 234.7 | 147.8 |
| Short-term investments, at fair value | 62.4 | 198.8 |
| Other long-term investments | 74.0 | 160.5 |
| Net receivable due from subsidiaries | 118.3 | 89.1 |
| Other assets | 4.6 | 4.0 |
| Investments in consolidated and unconsolidated subsidiaries | 3,944.5 | 3,666.9 |
| Total assets | $4,508.6 | $4,267.4 |
| Liabilities: | ||
| Other liabilities | $24.9 | $26.9 |
| Total liabilities | 24.9 | 26.9 |
| Equity: | ||
| Total White Mountains’s common shareholders’ equity | 4,483.7 | 4,240.5 |
| Total liabilities and equity | $4,508.6 | $4,267.4 |
(1) These condensed unconsolidated financial statements reflect the results of operations, financial condition and cash flows for the Company. Investments in which White Mountains holds a controlling financial interest are accounted for using the equity method. Under the equity method, investments in subsidiaries are recorded on the condensed balance sheets at the amount of the Company’s ownership percentage of the subsidiary’s GAAP book value. The income from subsidiaries is reported on a net of tax basis as equity in earnings from consolidated and unconsolidated subsidiaries on the condensed statements of operations and comprehensive income (loss). Capital contributions to consolidated subsidiaries are presented within investing activities on the condensed statements of cash flows. Distributions from consolidated subsidiaries are presented within operating or investing activities on the condensed statements of cash flows based on the nature of the distribution. Certain amounts in the prior period financial statements have been reclassified to conform to the current presentation.
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SCHEDULE II(continued)
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)(1)
| Year Ended December 31, | |||
|---|---|---|---|
| Millions | 2024 | 2023 | 2022 |
| Revenues (loss) (including realized and unrealized gains and losses) | $50.7 | $81.7 | $(.4) |
| Expenses | 51.8 | 60.5 | 67.1 |
| Pre-tax income (loss) | (1.1) | 21.2 | (67.5) |
| Income tax (expense) benefit | (.8) | (1.2) | (.9) |
| Net income (loss) | (1.9) | 20.0 | (68.4) |
| Equity in earnings (losses) from consolidated and unconsolidated subsidiaries, net of tax | 232.3 | 489.2 | (42.0) |
| Equity in earnings from discontinued operations, net of tax - NSM Group (2) | — | — | 16.4 |
| Net gain (loss) from sale of discontinued operations, net of tax - NSM Group (2) | — | — | 886.8 |
| Net income (loss) attributable to White Mountains’s common shareholders | 230.4 | 509.2 | 792.8 |
| Equity in other comprehensive income (loss) from consolidated and unconsolidated subsidiaries, net of tax | (.1) | 1.9 | (2.9) |
| Equity in other comprehensive income (loss) from discontinued operations, net of tax - NSM Group | — | — | (5.2) |
| Net gain (loss) from foreign currency translation from sale of discontinued operations, net of tax - NSM Group | — | — | 2.9 |
| Comprehensive income (loss) attributable to White Mountains’s common shareholders | $230.3 | $511.1 | $787.6 |
(1) These condensed unconsolidated financial statements reflect the results of operations, financial condition and cash flows for the Company. Investments in which White Mountains holds a controlling financial interest are accounted for using the equity method. Under the equity method, investments in subsidiaries are recorded on the condensed balance sheets at the amount of the Company’s ownership percentage of the subsidiary’s GAAP book value. The income from subsidiaries is reported on a net of tax basis as equity in earnings from consolidated and unconsolidated subsidiaries on the condensed statements of operations and comprehensive income (loss). Capital contributions to consolidated subsidiaries are presented within investing activities on the condensed statements of cash flows. Distributions from consolidated subsidiaries are presented within operating or investing activities on the condensed statements of cash flows based on the nature of the distribution. Certain amounts in the prior period financial statements have been reclassified to conform to the current presentation.
(2) On August 1, 2022, White Mountains closed the NSM Transaction. See Note 2 — “Significant Transactions.” As a result of the NSM Transaction, the results of operations for NSM Group have been classified as discontinued operations in the statements of operations and comprehensive income through the closing of the transaction. See Note 20 — “Held for Sale and Discontinued Operations.”
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SCHEDULE II(continued)
CONDENSED STATEMENTS OF CASH FLOWS(1)(2)
| Year Ended December 31, | |||
|---|---|---|---|
| Millions | 2024 | 2023 | 2022 |
| Net income (loss) attributable to White Mountains’s common shareholders | $230.4 | $509.2 | $792.8 |
| Charges (credits) to reconcile net income to net cash from operations: | |||
| Net realized and unrealized investment (gains) losses | (50.5) | (78.9) | 5.6 |
| Equity in (earnings) losses from consolidated and unconsolidated subsidiaries, net of tax | (232.3) | (489.2) | 42.0 |
| Equity in (earnings) losses from discontinued operation, net of tax - NSM Group (2) | — | — | (16.4) |
| Net (gain) loss from sale of discontinued operations, net of tax - NSM Group (2) | — | — | (886.8) |
| Amortization of restricted share awards | 16.3 | 15.3 | 14.0 |
| Net other non-cash reconciling items | (1.1) | (2.6) | (7.0) |
| Distributions of accumulated earnings from consolidated subsidiaries (3) | 24.2 | 17.3 | 7.0 |
| Net other operating activities (3)(4) | (17.1) | 9.2 | 17.2 |
| Net cash provided from (used for) operations | (30.1) | (19.7) | (31.6) |
| Cash flows from investing activities: | |||
| Net change in short-term investments (3)(5)(6) | 133.9 | (63.8) | 1,165.6 |
| Purchases of investment securities | (107.9) | (125.0) | (359.2) |
| Maturities, calls, paydowns and sales of investment securities | 100.0 | 335.4 | 15.7 |
| Purchases of investment securities from subsidiaries (7) | (12.0) | — | (14.0) |
| Release of cash (pre-funding) for ILS funds managed by Elementum | — | 70.0 | (70.0) |
| Net issuance of debt (to) from subsidiaries (8) | (224.1) | (132.5) | (142.0) |
| Net repayment of debt (to) from subsidiaries (6)(8) | 209.2 | 31.4 | (15.0) |
| Net distributions from (contributions to) subsidiaries (5)(6) | (58.8) | (60.3) | 49.3 |
| Proceeds from the sale of Other Operating Businesses, net of cash sold of $0.0, $0.0 and $0.5 | — | — | 19.5 |
| Net cash provided from (used for) investing activities | 40.3 | 55.2 | 649.9 |
| Cash flows from financing activities: | |||
| Repurchases and retirement of common shares | (7.9) | (32.7) | (615.8) |
| Cash dividends paid to common shareholders | (2.5) | (2.6) | (3.0) |
| Net cash provided from (used for) financing activities | (10.4) | (35.3) | (618.8) |
| Net change in cash during the year | (.2) | .2 | (.5) |
| Cash balance at beginning of year | .3 | .1 | .6 |
| Cash balance at end of year | $.1 | $.3 | $.1 |
(1) These condensed unconsolidated financial statements reflect the results of operations, financial condition and cash flows for the Company. Investments in which White Mountains holds a controlling financial interest are accounted for using the equity method. Under the equity method, investments in subsidiaries are recorded on the condensed balance sheets at the amount of the Company’s ownership percentage of the subsidiary’s GAAP book value. The income from subsidiaries is reported on a net of tax basis as equity in earnings from consolidated and unconsolidated subsidiaries on the condensed statements of operations and comprehensive income (loss). Capital contributions to consolidated subsidiaries are presented within investing activities on the condensed statements of cash flows. Distributions from consolidated subsidiaries are presented within operating or investing activities on the condensed statements of cash flows based on the nature of the distribution. Certain amounts in the prior period financial statements have been reclassified to conform to the current presentation.
(2) See Note 20 — “Held for Sale and Discontinued Operations.”
(3)During 2022, Bridge Holdings, Ltd. (“Bridge”), a wholly-owned subsidiary of the Company, merged into the Company. The merger was treated as a liquidation for financial statement purposes. As part of the liquidation, Bridge transferred cash of $7.0 and non-cash balances to the Company including ending net equity of $3,540.6, intercompany note receivable of $76.4, investments in its subsidiaries of $2,003.6, fixed maturity investments of $28.6, common equity securities of $8.1, other long-term investments of $52.2, short-term investments of $1,358.7 and other assets of $6.0.
(4) For 2024, 2023 and 2022, net other operating activities also included $(14.4), $8.4 and $3.3 of net changes in (receivables) payables to the Company’s subsidiaries. During 2023, the Company made a non-cash payment in fixed maturity investments of $10.0 for a payable due to its wholly-owned subsidiary, White Mountains Lafayette Holdings, Inc.
(5) During 2024, the Company made cash contributions to its wholly-owned subsidiaries White Mountains Investments (Bermuda), Ltd. (“WMIB”) of $4.3 and non-cash contributions of $18.7 in short-term investments and cash contributions to its wholly-owned subsidiaries WM Hinson (Bermuda) Ltd. (“WM Hinson”) of $47.0. Also during 2024, the Company made cash contributions to its subsidiary WM Webster Holdings, Inc (“WM Webster”) of $7.5 and non-cash contributions of $4.9 in short-term investments. During 2024, the Company received a $319.5 distribution from its wholly-owned subsidiary WM Adams Holdings, Inc (“WM Adams”), which included cash of $0.2, short-term investments of $17.2,3.5% ownership of its subsidiary WM Madison, Inc (“WM Madison”) of $2.1 and 94.2% ownership of its subsidiary WM Taylor Holdings, Inc (“WM Taylor”) of $300.0. Subsequently, the Company contributed its wholly-owned subsidiary WM Webster to WM Taylor. During 2022, the Company made cash contributions to its wholly-owned subsidiaries White Mountains Investments (Bermuda), Ltd. of $51.0 and WM Adams of $25.0. Also, during 2022, the Company made non-cash contributions of $100.0 in short-term investments to WM Adams. During 2022, the Company received cash distributions of $116.3 from HG Global, $7.7 from Ark and $1.3 from its wholly-owned subsidiary, PSC Holdings, Ltd.
(6) During 2024, the Company had issuances of debt of $208.9 to WM Hinson and $15.2 to HG Global. During 2024, the Company received repayments of debt of $190.0 from WM Hinson and $19.2 from HG Global. During 2023, the Company had issuances of debt of $20.0 to WM Hinson, and $7.5 to HG Global. During 2023, the Company received repayments of debt of $42.4 in cash and $107.6 in investments ($45.9 in fixed maturity investments and $61.7 short-term investments) from WM Hinson and $9.5 from HG Global. Also, during 2023, the Company made repayments of debt of $20.5 in cash and $73.8 in investments ($36.9 in fixed maturity investments and $36.9 in short-term investments) to WM Birkdale Ltd. (“WM Birkdale”), a wholly-owned subsidiaries of the Company. Also, in 2023, the Company had issuances of debt of $105.0 in cash to White Mountains Investments (Luxembourg) S.a.r.l. (“WMIL”) under a new promissory note. Subsequently, the Company contributed the promissory note to WM Birkdale. During 2022, prior to the merger of Bridge into the Company, Bridge had an issuance of debt of $69.0 to the Company. Also, during 2022, the Company had issuances of debt of $205.0 to WM Hinson and $6.0 to HG Global.
(7) During 2024, the Company purchased $12.0 of fixed maturity investments, which included $8.0 from its subsidiary WMIL and $4.0 from WMBirkdale. During 2022, the Company purchased $14.0 of fixed maturity investments from WM Madison.
(8) During 2022, prior to the merger of Bridge into the Company, the Company had a repayment of debt to Bridge of $15.0.
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