White Mountains Reports Second Quarter Results

HAMILTON, Bermuda, Aug. 6, 2021 /PRNewswire/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) reported book value per share of $1,279 and adjusted book value per share of $1,292 as of June 30, 2021. Book value per share and adjusted book value per share both increased 4% in the second quarter of 2021 and 2% in the first six months of 2021, including dividends.

Manning Rountree, CEO, commented, "We had a strong second quarter. Adjusted book value per share was up 4%, driven by solid results across our operating companies as well as the increase in MediaAlpha's share price during the quarter. BAM produced $30 million of total premiums and member surplus contributions, as insured penetration and market share remained strong, while pricing declined. Ark wrote $328 million of gross written premiums, up 78% year over year, and produced an 84% adjusted combined ratio. NSM generated nice growth in both pro forma controlled premiums and pro forma adjusted EBITDA. Kudu also posted nice growth in adjusted EBITDA and recognized $28 million in unrealized gains in the fair value of its portfolio of participation contracts. Excluding MediaAlpha, our investment portfolio returned 2.4% in the quarter. We finished the second quarter with roughly $300 million in undeployed capital. We expect undeployed capital will increase in the third quarter upon completion of the subordinated debt raise at Ark."

Comprehensive income (loss) attributable to common shareholders was $139 million and $66 million in the second quarter and first six months of 2021, compared to $116 million and $(17) million in the second quarter and first six months of 2020. Results in the second quarter and first six months of 2021 were driven primarily by $113 million and $71 million of net realized and unrealized investment gains from White Mountains's investment in MediaAlpha.

MediaAlpha

White Mountains owns 16.9 million shares of MediaAlpha, representing a 28% basic ownership interest (26% on a fully-diluted/fully-converted basis). At the June 30 closing price of $42.10, the value of White Mountains's investment in MediaAlpha was $713 million. At this level of ownership, each $1.00 per share increase or decrease in the share price of MediaAlpha will result in an approximate $5.50 per share increase or decrease in White Mountains's book value per share and adjusted book value per share. At the July 2021 month-end closing price of $33.40 per share, the fair value of White Mountains's investment in MediaAlpha was $566 million.

HG Global/BAM

BAM's gross written premiums and member surplus contributions (MSC) collected were $30 million and $56 million in the second quarter and first six months of 2021, compared to $43 million and $63 million in the second quarter and first six months of 2020. BAM insured municipal bonds with par value of $5.1 billion and $8.7 billion in the second quarter and first six months of 2021, compared to $4.1 billion and $7.1 billion in the second quarter and first six months of 2020. Total pricing was 59 and 65 basis points in the second quarter and first six months of 2021, compared to 105 and 89 basis points in the second quarter and first six months of 2020. BAM's total claims paying resources were $1,165 million at June 30, 2021, compared to $987 million at December 31, 2020 and $957 million at June 30, 2020. In the first quarter of 2021, BAM completed a reinsurance agreement with Fidus Re that increased BAM's claims paying resources by $150 million.

Seán McCarthy, CEO of BAM, said, "BAM had a good second quarter, with par insured up 25% from the same period in 2020. Demand for insurance remained strong, keeping insured penetration above 8%. The outlook for municipal credit improved as a result of the ongoing economic recovery as well as Federal support for issuers. Declining interest rates and tighter credit spreads resulted in lower overall pricing. However, risk adjusted pricing was supported by strong demand for insured bonds of double-A rated issuers. In July, S&P Global Ratings completed its annual review and affirmed BAM's "AA/stable" rating."

The COVID-19 pandemic is negatively impacting the finances of municipalities to varying degrees, and, over time, financial stress could emerge. To date, BAM's portfolio continues to perform as expected. All BAM-insured bond payments due through August 1 have been made by insureds, and there are no credits on BAM's watchlist. BAM continues to monitor the finances of its members and to work proactively with its members to prepare for any pandemic-related revenue challenges.

HG Global reported pre-tax income of $11 million and $9 million in the second quarter and first six months of 2021, compared to pre-tax income of $20 million and $32 million in the second quarter and first six months of 2020. The decrease in HG Global's results for the second quarter and first six months of 2021, compared to the second quarter and first six months of 2020, were driven primarily by lower investment returns on the HG Global investment portfolio. White Mountains reported pre-tax loss related to BAM of $9 million and $32 million in the second quarter and first six months of 2021, compared to pre-tax loss related to BAM of $9 million and $19 million in the second quarter and first six months of 2020. The decrease in BAM's results for the first six months of 2021, compared to the first six months of 2020, was driven primarily by lower investment returns on the BAM investment portfolio.

BAM is a mutual insurance company that is owned by its members. BAM's results are consolidated into White Mountains's GAAP financial statements and attributed to non-controlling interests.

Ark

Ark's GAAP combined ratio was 90% and 99% in the second quarter and first six months of 2021. Ark's adjusted combined ratio, which adds back amounts ceded to third party capital providers, was 84% and 96% in the second quarter and first six months of 2021. The adjusted combined ratio in the second quarter and first six months of 2021 included 10 points and 5 points of favorable prior year development, primarily related to the Property, Energy and Accident & Health lines of business, and 6 points and 12 points of catastrophe losses.

In the second quarter of 2021, Ark reported gross written premiums of $328 million, net written premiums of $262 million and net earned premiums of $118 million. In the first six months of 2021, Ark reported gross written premiums of $733 million, net written premiums of $605 million and net earned premiums of $222 million. Ark reported pre-tax income (loss) of $18 million and $(15) million in the second quarter and first six months of 2021. Ark's pre-tax loss for the first six months of 2021 included $25 million of transaction expenses related to White Mountains's transaction with Ark.

Ian Beaton, CEO of Ark, said, "Ark had a solid second quarter. Driven by strong April and June renewals, gross written premiums were $328 million in the quarter, up 78% from 2020 levels, with risk-adjusted rate change up over 7%. The adjusted combined ratio was 84% in the quarter reflecting 10 points of favorable prior year development and light catastrophes. In July, we closed on €39 million of subordinated debt, and we continue to make good progress on the balance of our planned capital raise. Looking forward, market conditions remain attractive, and we are optimistic about profitable growth in the book."

NSM

NSM reported pre-tax income of $1 million, adjusted EBITDA of $19 million, and commission and other revenues of $84 million in the second quarter of 2021, compared to pre-tax loss of $4 million, adjusted EBITDA of $18 million, and commission and other revenues of $76 million in the second quarter of 2020.

NSM reported pre-tax loss of $32 million, adjusted EBITDA of $33 million, and commission and other revenues of $159 million in the first six months of 2021, compared to pre-tax loss of $5 million, adjusted EBITDA of $29 million, and commission and other revenues of $141 million in the first six months of 2020. On April 12, 2021, NSM sold its Fresh Insurance motor business, which resulted in a loss of $29 million recorded in the first quarter of 2021. Results in the first six months of 2021 and the first six months of 2020, from the date of acquisition, include the results of Kingsbridge Group Limited, a leading provider of commercial lines insurance and consulting services to the contingent workforce in the United Kingdom, which was acquired on April 7, 2020.

Geof McKernan, CEO of NSM, said, "NSM had a good second quarter. Excluding the Fresh Insurance motor business, trailing 12 months pro forma controlled premiums increased to $1,102 million and pro forma adjusted EBITDA increased to a record $65 million, reflecting quarter over quarter organic growth rates of 3% and 2%, respectively. Growth in the quarter was led by the Pet, Social Services and Specialty Transportation verticals, offset by a decline in the Real Estate vertical. We also benefited from improved results in the U.K. vertical following the sale of the Fresh Insurance motor business and the broader reopening of the U.K. economy."

Kudu

Kudu reported pre-tax income of $31 million and adjusted EBITDA of $5 million in the second quarter of 2021, compared to pre-tax income of $18 million and adjusted EBITDA of $4 million in the second quarter of 2020. Pre-tax income in the second quarter of 2021 included $28 million of unrealized gains on Kudu's participation contracts, compared to $17 million of unrealized gains on Kudu's participation contracts in the second quarter of 2020. Kudu reported pre-tax income of $47 million and adjusted EBITDA of $11 million in the first six months of 2021, compared to pre-tax loss of $4 million and adjusted EBITDA of $9 million in the first six months of 2020. Pre-tax income in the first six months of 2021 included $44 million of unrealized gains on Kudu's participation contracts, compared to $8 million of unrealized losses on Kudu's participation contracts in the first six months of 2020, which reflected the impact of the market dislocation from the COVID-19 pandemic on Kudu's underlying asset management firms.

As of June 30, 2021, Kudu has deployed $398 million in 13 asset management firms globally, with combined assets under management of approximately $52 billion, spanning a range of asset classes, including real estate, real assets, wealth management, hedge funds, private equity and alternative credit strategies. The capital deployed has generated an average gross cash yield to Kudu at inception of 10.3%.

Rob Jakacki, CEO of Kudu, said, "Kudu had a strong second quarter. Quarter over quarter, trailing 12 months revenues from participation contracts increased 9% to $33 million, while adjusted EBITDA increased 7% to $24 million. Annualized adjusted EBITDA finished the quarter at $28 million, reflecting the full impact of new transactions. Second quarter unrealized gains of $28 million reflected the strong asset growth and performance of Kudu's portfolio of asset managers. We continue to see a large number of opportunities in both the U.S. and internationally, particularly within the private capital and wealth management segments. We are optimistic about making additional capital deployments in the coming quarters."

Other Operations

White Mountains's Other Operations segment reported pre-tax income (loss) of $110 million and $47 million in the second quarter and first six months of 2021, compared to $107 million and $(37) million in the second quarter and first six months of 2020. The Other Operations segment results in the second quarter and first six months of 2021 were driven primarily by net realized and unrealized investment gains from White Mountains's investment in MediaAlpha, while the results in the second quarter and first six months of 2020 were driven primarily by net unrealized investment gains (losses). Net realized and unrealized investment gains from White Mountains's investment in MediaAlpha were $113 million and $71 million in the second quarter and first six months of 2021, compared to net unrealized investment gains from White Mountains's investment in MediaAlpha of $15 million and $45 million in the second quarter and first six months of 2020. Net realized and unrealized investment gains were $17 million and $19 million in the second quarter and first six months of 2021, compared to net realized and unrealized investment gains (losses) $107 million and $(61) million in the second quarter and first six months of 2020, as equity markets declined in the first quarter of 2020 in reaction to the COVID-19 pandemic and partially rebounded in the second quarter of 2020.

White Mountains's Other Operations segment reported general and administrative expenses of $30 million and $65 million in the second quarter and first six months of 2021, compared to $25 million and $43 million in the second quarter and first six months of 2020. The increase in general and administrative expenses in the second quarter and first six months of 2021 compared to the second quarter and first six months of 2020 was driven primarily by higher incentive compensation costs, in turn driven primarily by the increase in the White Mountains's share price.

Investments

The total return on invested assets was 5.0% in the second quarter of 2021. This return included $113 million of net unrealized investment gains from White Mountains's investment in MediaAlpha. Excluding MediaAlpha, the total return on invested assets was 2.4% in the second quarter of 2021. The total return on invested assets was 6.5% in the second quarter of 2020. This return included $18 million of net investment income and net unrealized investment gains from White Mountains's investment in MediaAlpha. Excluding MediaAlpha, the total return on invested assets was 6.4% in the second quarter of 2020.

The total return on invested assets was 4.7% in the first six months of 2021. This return included $71 million of net realized and unrealized investment gains from White Mountains's investment in MediaAlpha. Excluding MediaAlpha, the total return on invested assets was 3.1% in the first six months of 2021. The total return on invested assets was 1.7% in the first six months of 2020. This return included $50 million of net investment income and unrealized investment gains from White Mountains's investment in MediaAlpha. Excluding MediaAlpha, the total return on invested assets was flat in the first six months of 2020.

Mark Plourde, Managing Director of White Mountains Advisors, said, "Excluding MediaAlpha, the total portfolio was up 2.4% in the quarter. The fixed income portfolio returned 0.8%, in-line with the longer duration BBIA Index return. The equity portfolio returned 5.4%, a solid absolute result but behind the S&P 500 Index return of 8.5%."

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, 2021				December 31, 2020				June 30, 2020
Assets
Financial Guarantee (HG Global/BAM)
Fixed maturity investments		$	884.6			$	859.5			$	821.7
Short-term investments		44.9				60.4				54.7
Total investments		929.5				919.9				876.4
Cash		20.6				42.8				32.0
Insurance premiums receivable		6.9				6.9				7.3
Deferred acquisition costs		30.5				27.8				25.0
Accrued investment income		5.0				5.0				5.2
Other assets		14.0				15.4				14.6
Total Financial Guarantee assets		1,006.5				1,017.8				960.5
P&C Insurance and Reinsurance (Ark)
Fixed maturity investments		519.8				—				—
Common equity securities		142.0				—				—
Short-term investments		251.0				—				—
Other long-term investments		257.5				—				—
Total investments		1,170.3				—				—
Cash		110.6				—				—
Reinsurance recoverables		431.3				—				—
Insurance premiums receivable		589.0				—				—
Ceded unearned premiums		116.1				—				—
Deferred acquisition cost		122.8				—				—
Value of in-force business acquired		27.8				—				—
Goodwill and other intangible assets		292.5				—				—
Other assets		113.9				—				—
Total P&C Insurance and Reinsurance assets		2,974.3				—				—
Specialty Insurance Distribution (NSM)
Cash (restricted $90.3, $78.4 and $96.3)		154.6				126.5				140.5
Premium and commission receivable		85.1				76.7				76.7
Goodwill and other intangible assets		691.6				736.8				728.6
Other assets		55.7				59.6				55.1
Total Specialty Insurance Distribution assets		987.0				999.6				1,000.9
Asset Management (Kudu)
Short-term investments		.1				.1				.1
Other long-term investments		455.5				400.6				315.6
Total investments		455.6				400.7				315.7
Cash (restricted $4.0, $0.0, $0.0)		13.5				7.8				5.9
Accrued investment income		7.6				9.8				5.6
Goodwill and other intangible assets		9.1				9.2				9.4
Other assets		8.5				2.7				2.7
Total Asset Management assets		494.3				430.2				339.3
Other Operations
Fixed maturity investments		352.9				347.7				369.9
Short-term investments		236.5				82.4				62.8
Common equity securities		—				—				567.2
Investment in MediaAlpha		713.2				802.2				225.0
Other long-term investments		368.4				386.2				357.5
Total investments		1,671.0				1,618.5				1,582.4
Cash		27.4				34.1				32.9
Cash pre-funded/placed in escrow for Ark transaction		—				646.3				—
Accounts receivable on unsettled investment sales		1.7				3.4				23.4
Goodwill and other intangible assets		51.0				36.4				21.9
Other assets		66.7				45.1				39.0
Total Other Operations assets		1,817.8				2,383.8				1,699.6
Total assets		$	7,279.9			$	4,831.4			$	4,000.3

WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(millions)
(Unaudited)
		June 30, 2021				December 31, 2020				June 30, 2020
Liabilities
Financial Guarantee (HG Global/BAM)
Unearned insurance premiums		$	250.9			$	237.5			$	218.6
Accrued incentive compensation		16.1				25.7				14.1
Other liabilities		28.5				28.3				30.3
Total Financial Guarantee liabilities		295.5				291.5				263.0
P&C Insurance and Reinsurance (Ark)
Loss and loss adjustment expense reserves		760.0				—				—
Unearned insurance premiums		718.7				—				—
Debt		44.2				—				—
Reinsurance payable		512.8				—				—
Contingent consideration		22.5				—				—
Accounts payable on unsettled investment purchases		1.9				—				—
Other liabilities		73.0				—				—
Total P&C Insurance and Reinsurance liabilities		2,133.1				—				—
Specialty Insurance Distribution (NSM)

Debt

...

270.7

272.6

268.4

Premiums payable

137.9

113.4

139.7

Contingent consideration

7.3

14.6

11.7

Other liabilities

89.7

91.2

81.1

Total Specialty Insurance Distribution liabilities

505.6

491.8

500.9

Asset Management (Kudu)

Debt

94.5

86.3

70.8

Other liabilities

31.1

10.0

6.5

Total Asset Management liabilities

125.6

96.3

77.3

Other Operations

Debt

19.4

17.5

10.6

Accrued incentive compensation

50.1

70.1

18.9

Other liabilities

42.6

46.3

66.3

Total Other Operations liabilities

112.1

133.9

95.8

Total liabilities

3,171.9

1,013.5

937.0

Equity

White Mountains's common shareholder's equity

White Mountains's common shares and paid-in surplus

597.2

595.2

587.0

Retained earnings

3,378.6

3,311.2

2,589.3

Accumulated other comprehensive income (loss), after tax:

Net unrealized gains (losses) from foreign currency translation and interest rate swap

2.4

(.4)

(10.3)

Total White Mountains's common shareholders' equity

3,978.2

3,906.0

3,166.0

Non-controlling interests

129.8

(88.1)

(102.7)

Total equity

4,108.0

3,817.9

3,063.3

Total liabilities and equity

$

7,279.9

$

4,831.4

$

4,000.3

WHITE MOUNTAINS INSURANCE GROUP, LTD.
BOOK VALUE AND ADJUSTED BOOK VALUE PER SHARE
(Unaudited)
		June 30, 2021				March 31, 2021				December 31, 2020				June 30, 2020
Book value per share numerators (in millions):
White Mountains's common shareholders' equity - GAAP book value per share numerator		$	3,978.2			$	3,825.9			$	3,906.0			$	3,166.0
Time value of money discount on expected future payments on the BAM Surplus Notes (1)		(132.8)				(137.7)				(142.5)				(146.7)
HG Global's unearned premium reserve (1)		201.5				195.3				190.0				173.8
HG Global's net deferred acquisition costs (1)		(56.3)				(54.2)				(52.4)				(47.0)
Adjusted book value per share numerator		$	3,990.6			$	3,829.3			$	3,901.1			$	3,146.1
Book value per share denominators (in thousands of shares):
Common shares outstanding - GAAP book value per share denominator		3,109.2				3,107.3				3,102.0				3,101.8
Unearned restricted common shares		(20.6)				(23.4)				(14.8)				(23.1)
Adjusted book value per share denominator		3,088.6				3,083.9				3,087.2				3,078.7
GAAP book value per share		$	1,279.49			$	1,231.27			$	1,259.18			$	1,020.71
Adjusted book value per share		$	1,292.03			$	1,241.71			$	1,263.64			$	1,021.91
(1) Amount reflects White Mountains's preferred share ownership in HG Global of 96.9%.
		June 30, 2021				March 31, 2021				December 31, 2020				June 30, 2020
Quarter-to-date change in GAAP book value per share, including dividends:		3.9		%		(2.1)		%		14.6		%		4.0		%
Quarter-to-date change in adjusted book value per share, including dividends:		4.1		%		(1.7)		%		14.7		%		4.3		%
Year-to-date change in GAAP book value per share, including dividends:		1.7		%		(2.1)		%		23.1		%		(0.2)		%
Year-to-date change in adjusted book value per share, including dividends:		2.3		%		(1.7)		%		24.2		%		0.4		%
Year-to-date dividends per share		$	1.00			$	1.00			$	1.00			$	1.00
		June 30, 2021				March 31, 2021				December 31, 2020				June 30, 2020
Summary of goodwill and other intangible assets (in millions):
Goodwill:
Ark		$	116.8			$	116.8			$	—			$	—
NSM		477.9				477.7				506.4				504.9			(2)
Kudu		7.6				7.6				7.6				7.6
Other Operations		27.1			(1)	11.3				11.5				5.7
Total goodwill		629.4				613.4				525.5				518.2
Other intangible assets:
Ark		175.7				175.7				—				—
NSM		213.7				222.0				230.4				223.7
Kudu		1.5				1.5				1.6				1.8
Other Operations		23.9				24.4				24.9				16.2
Total other intangible assets		414.8				423.6				256.9				241.7
Total goodwill and other intangible assets		1,044.2				1,037.0				782.4				759.9
Goodwill and other intangible assets attributed to non-controlling interests		(115.9)				(108.4)				(28.1)				(25.9)
Goodwill and other intangible assets included in White Mountains's common shareholders' equity		$	928.3			$	928.6			$	754.3			$	734.0

(1)	The relative fair values of goodwill and of other intangible assets recognized in connection with the acquisition within Other Operations had not yet been finalized at June 30, 2021.
(2)	The relative fair values of goodwill and of other intangible assets recognized in connection with the acquisition of Kingsbridge had not yet been finalized at June 30, 2020.

WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(millions)
(Unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Revenues:
Financial Guarantee (HG Global/BAM)
Earned insurance premiums		$	6.5			$	5.6			$	12.9			$	11.0
Net investment income		4.3				4.9				8.8				10.4
Net realized and unrealized investment gains (losses)		6.3				14.4				(11.6)				20.5
Other revenues		.3				1.2				.6				1.7
Total Financial Guarantee revenues		17.4				26.1				10.7				43.6
P&C Insurance and Reinsurance (Ark)
Earned insurance premiums		117.8				—				222.4				—
Net investment income		.4				—				1.2				—
Net realized and unrealized investment gains		8.9				—				10.0				—
Other revenues		3.4				—				6.0				—
Total P&C Insurance and Reinsurance revenues		130.5				—				239.6				—
Specialty Insurance Distribution (NSM)
Commission revenues		68.0				63.0				127.6				116.0
Other revenues		16.3				13.1				31.5				25.1
Total Specialty Insurance Distribution revenues		84.3				76.1				159.1				141.1
Asset Management (Kudu)
Net investment income		8.4				5.6				16.6				12.9
Net realized and unrealized investment gains (losses)		27.8				16.5				43.6				(8.3)
Other revenues		—				—				.1				.1
Total Asset Management revenues		36.2				22.1				60.3				4.7
Other Operations
Net investment income		4.0				9.1				11.1				19.2
Net realized and unrealized investment gains (losses)		16.6				107.0				18.7				(61.0)
Net realized and unrealized investment gains from investment in MediaAlpha		113.0				15.0				71.3				45.0
Commission revenues		2.3				1.9				4.6				4.0
Other revenues		22.4				2.3				29.5				3.8
Total Other Operations revenues		158.3				135.3				135.2				11.0
Total revenues		$	426.7			$	259.6			$	604.9			$	200.4

WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(millions)
(Unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Expenses:
Financial Guarantee (HG Global/BAM)
Insurance acquisition expenses		$	1.6			$	2.1			$	3.5			$	3.8
General and administrative expenses		13.9				12.7				30.3				27.4
Total Financial Guarantee expenses		15.5				14.8				33.8				31.2
P&C Insurance and Reinsurance (Ark)
Loss and loss adjustment expenses		52.6				—				118.6				—
Insurance and reinsurance acquisition expenses		34.0				—				70.7				—
Other underwriting expenses		19.1				—				30.3				—
General and administrative expenses		5.7				—				32.3				—
Interest expense		1.3				—				2.4				—
Total P&C Insurance and Reinsurance expenses		112.7				—				254.3				—
Specialty Insurance Distribution (NSM)
General and administrative expenses		47.3				48.5				93.3				88.1
Broker commission expenses		21.6				21.0				40.5				39.3
Change in fair value of contingent consideration		.2				(1.7)				.2				(2.3)
Amortization of other intangible assets		8.2				6.3				16.8				11.1
Loss on assets held for sale		—				—				28.7				—
Interest expense		5.9				5.7				11.8				10.0
Total Specialty Insurance Distribution expenses		83.2				79.8				191.3				146.2
Asset Management (Kudu)
General and administrative expenses		3.2				2.8				5.7				5.3
Amortization of other intangible assets		.1				.1				.2				.2
Interest expense		1.5				1.5				7.3				2.9
Total Asset Management expenses		4.8				4.4				13.2				8.4
Other Operations
Cost of sales		17.9				2.2				21.9				4.2
General and administrative expenses		29.5				25.3				65.2				42.8
Amortization of other intangible assets		.4				.2				.9				.4
Interest expense		.4				.2				.7				.5
Total Other Operations expenses		48.2				27.9				88.7				47.9
Total expenses		264.4				126.9				581.3				233.7
Pre-tax income (loss) from continuing operations		162.3				132.7				23.6				(33.3)
Income tax (expense) benefit		(29.8)				(24.1)				(20.3)				1.4
Net income (loss) from continuing operations		132.5				108.6				3.3				(31.9)
Net (loss) gain from sale of discontinued operations, net of tax		—				(1.0)				18.7				(.1)
Net income (loss)		132.5				107.6				22.0				(32.0)
Net loss attributable to non-controlling interests		6.0				7.8				41.2				18.6
Net income (loss) attributable to White Mountains's common shareholders		$	138.5			$	115.4			$	63.2			$	(13.4)

WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(millions)
(Unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Net income (loss) attributable to White Mountains's common shareholders		$	138.5			$	115.4			$	63.2			$	(13.4)
Other comprehensive income (loss), net of tax		1.0				.5				2.8				(2.9)
Comprehensive income (loss)		139.5				115.9				66.0				(16.3)
Other comprehensive loss attributable to non-controlling interests		(.1)				(.2)				(.2)				(.2)
Comprehensive income (loss) attributable to White Mountains's common shareholders		$	139.4			$	115.7			$	65.8			$	(16.5)

WHITE MOUNTAINS INSURANCE GROUP, LTD.
EARNINGS PER SHARE
(Unaudited)
Income (loss) per share attributable to White Mountains's common shareholders		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Basic earnings (loss) per share
Continuing operations		$	44.56			$	37.46			$	14.32			$	(4.25)
Discontinued operations		—				(.32)				6.03				(.03)
Total consolidated operations		$	44.56			$	37.14			$	20.35			$	(4.28)
Diluted earnings (loss) per share
Continuing operations		$	44.56			$	37.46			$	14.32			$	(4.25)
Discontinued operations		—				(.32)				6.03				(.03)
Total consolidated operations		$	44.56			$	37.14			$	20.35			$	(4.28)
Dividends declared per White Mountains's common share		$	—			$	—			$	1.00			$	1.00

WHITE MOUNTAINS INSURANCE GROUP, LTD.
QTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS)
(millions)
(Unaudited)
For the Three Months Ended June 30, 2021		HG Global/BAM
		HG Global				BAM				Ark				NSM				Kudu				Other Operations				Total
Revenues:
Earned insurance premiums		$	5.3			$	1.2			$	117.8			$	—			$	—			$	—			$	124.3
Net investment income		1.7				2.6				.4				—				8.4				4.0				17.1
Net investment income (expense) - BAM surplus note interest		3.0				(3.0)				—				—				—				—				—
Net realized and unrealized investment gains		2.4				3.9				8.9				—				27.8				16.6				59.6
Net realized and unrealized investment gains from investment in MediaAlpha		—				—				—				—				—				113.0				113.0
Commission revenues		—				—				—				68.0				—				2.3				70.3
Other revenues		.1				.2				3.4				16.3				—				22.4				42.4
Total revenues		12.5				4.9				130.5				84.3				36.2				158.3				426.7
Expenses:
Loss and loss adjustment expenses		—				—				52.6				—				—				—				52.6
Insurance acquisition expenses		1.3				.3				34.0				—				—				—				35.6
Cost of sales		—				—				—				—				—				17.9				17.9
General and administrative expenses		.5				13.4				24.8				47.3				3.2				29.5				118.7
Broker commission expenses		—				—				—				21.6				—				—				21.6
Change in fair value of contingent consideration		—				—				—				.2				—				—				.2
Amortization of other intangible assets		—				—				—				8.2				.1				.4				8.7
Interest expense		—				—				1.3				5.9				1.5				.4				9.1
Total expenses		1.8				13.7				112.7				83.2				4.8				48.2				264.4
Pre-tax income (loss)		$	10.7			$	(8.8)			$	17.8			$	1.1			$	31.4			$	110.1			$	162.3

WHITE MOUNTAINS INSURANCE GROUP, LTD.
QTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED)
(millions)
(Unaudited)
For the Three Months Ended June 30, 2020		HG Global/BAM
		HG Global				BAM				NSM				Kudu				Other Operations				Total
Revenues:
Earned insurance premiums		$	4.6			$	1.0			$	—			$	—			$	—			$	5.6
Net investment income		2.0				2.9				—				5.6				9.1				19.6
Net investment income (expense) - BAM surplus note interest		4.7				(4.7)				—				—				—				—
Net realized and unrealized investment gains		10.7				3.7				—				16.5				107.0				137.9
Net unrealized investment gains from investment in MediaAlpha		—				—				—				—				15.0				15.0
Commission revenues		—				—				63.0				—				1.9				64.9
Other revenues		.1				1.1				13.1				—				2.3				16.6
Total revenues		22.1				4.0				76.1				22.1				135.3				259.6
Expenses:
Insurance acquisition expenses		1.2				.9				—				—				—				2.1
Cost of sales		—				—				—				—				2.2				2.2
General and administrative expenses		.5				12.2