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Manning Rountree, CEO, White Mountains
11 May 2023News

White Mountains posts Q1 profit, unveils Outrigger Re

Bermuda-based White Mountains Insurance Group posted a vastly improved profit in the first quarter, largely driven by $85 million and $19 million of net realised and unrealized investment gains from its investment in MediaAlpha.

The company reported a net income of $180 million for the first quarter, up from $31 million for the same period a year ago.

The company also noted that, in the fourth quarter of last year, Ark, one of its units, sponsored the formation of Outrigger Re, a Bermuda registered special purpose insurer and segregated accounts company. It said it will provide collateralized reinsurance protection on Ark’s Bermuda global property catastrophe excess of loss portfolio written in calendar year 2023.

The Ark/WM Outrigger segment's combined ratio was 92% in the first quarter of 2023. Ark/WM Outrigger reported gross written premiums of $809 million, net written premiums of $614 million and net earned premiums of $255 million in the first quarter of 2023. Ark/WM Outrigger reported pre-tax income of $42 million in the first quarter of 2023.

Ark's combined ratio was 94% in the first quarter of 2023 compared to 100% in the first quarter of 2022.

Ian Beaton, CEO of Ark, said: "We are off to a good start in 2023 amidst a continuing strong rate environment, particularly in property and specialty. Driven by January renewals, gross written premiums were up 28% from 2022, with risk adjusted rate change up 14%. Looking forward, mid-year renewals are going well while market conditions remain attractive, and we are optimistic about continued profitable growth in the book."

Manning Rountree, CEO, said: "We had a good first quarter. ABVPS was up 5%, driven by positive returns from our investment portfolio and solid results at our operating companies. BAM produced $21 million of gross written premiums and member surplus contributions in the quarter. Ark achieved a 94% combined ratio and, supported by increased reinsurance capacity from Outrigger Re, wrote $809 million of gross written premiums, up 28% year over year.

Kudu closed on one new deployment and two value-adding sales transactions in the quarter, while growing the fair value of its continuing portfolio by $32 million. MediaAlpha's share price increased roughly $5 in the quarter, producing an $85 million mark-to-market gain. Excluding MediaAlpha, the investment portfolio returned 3% in the quarter, with gains in both equities and fixed income. We completed $25 million of share repurchases in the quarter. Reflecting additional commitments to Kudu and our new deployment at Doxa, undeployed capital now stands at roughly $720 million."




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More on this story

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27 September 2022   The US insurtech says it raised the sector’s largest financing round of the year.
article
23 August 2022   It is offering to purchase up to $500 million in value of its common shares.
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26 May 2023   Bermuda-based insurer appoints former Alleghany chief.