White Mountains bounces back in third quarter

Bermuda-based White Mountains Insurance Group bounced back in the third quarter to record net income of $180 million, up from $23 million in the same period in 2023. 

The improvement was driven in part by an unrealised gain in the value of White Mountains affiliate MediaAlpha, which recoded a $88 million gained compared to a $47 million unrealised loss in the same period in 2023. 

The re/insurer said its total revenues increased from $519 million to $839 million in the period, with net investment gains edging up to $9.6 million from $8 million while net realised and unrealised gains excluding MediaAlpha rose from $8 million to $88.2 million. 

Total expenses rose to $599.6 million from $498.5 million as loss and loss expenses for Ark and Outrigger rose from $265.8 million to $288.3 million. 

By segment, White Mountains’ insurance subsidiaries, including Bermuda-based Ark and sidecar WM Outrigger, recorded a rise in earned insurance premiums from $498.9 million to $552.2 million. Net investment income rose from $16.9 million to $24.3 million while net realised and unrealised gains soared from a loss of $6.6 million to $53.2 million. 

The Ark/WM Outrigger segment's combined ratio was 77% and 84% in the third quarter and first nine months of 2024 compared to 77% and 83% in the third quarter and first nine months of 2023.  

Ark/WM Outrigger reported gross written premiums of $374 million compared to $251 million in 2023. 

Ark's combined ratio was 79% in the third quarter compared to 81% in 2023.  It included 17 points of catastrophe losses, driven primarily by Hurricanes Helene, Debby and Beryl as well as Calgary hailstorms, compared to 11 points in the third quarter of 2023. This was offset by five points of net favourable prior year development. 

Ark had gross written premiums of $374 million compared to gross written premiums of $251 million in the third quarter of 2023. 

Ark reported pre-tax income of $119 million and $202 million in the third quarter and first nine months of 2024 compared to $62 million and $140 million in the third quarter and first nine months of 2023.  

Ian Beaton, CEO of Ark, said, "Ark had a good third quarter.  The combined ratio was 79% in the quarter, an improvement of two points year-over-year.  Gross written premiums were $374 million in the quarter and $1,943 million year-to-date, up 49% and 17%, respectively, from 2023 levels despite generally flat rate change.  We continue to experience good growth across several lines of business, aided by new underwriters and product classes."

White Mountains said it did not expect losses from Hurricane Milton, which hit Florida in October, to cause full year 2024 actual catastrophe losses for Ark/WM Outrigger to diverge materially from full year 2024 planned catastrophe losses.

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