White Mountains posts Q3 profit of $890mn

White Mountains Insurance Group has reported comprehensive income attributable to common shareholders of $890 million and $748 million in the third quarter and first nine months of 2022, respectively. That compares with losses of $373 million and $308 million in the same periods of 2021.

The company said its results were driven primarily by a net gain from the sale of NSM Insurance Group of $876 million, which includes the impact of compensation and other costs recorded in other operations.

Its adjusted book value per share (ABVPS) was $1,471 as of September 30, a rise of 27% in the quarter. Manning Rountree, chief executive officer, said the main driver was the sale of NSM, which closed on August 1 and added roughly $300 to ABVPS.

“Aside from this, ABVPS was up slightly driven primarily by good operating results at our businesses, partially offset by mark-to-market losses in our fixed income portfolio and the decline in MediaAlpha's share price,” Manning continued.

“BAM produced record levels of premiums. Ark produced an 87% combined ratio, despite significant catastrophe activity, while growing premiums 33% year-over-year. The fair value of Kudu's existing participation contracts increased 12% in the quarter, reflecting announced sale transactions and good portfolio performance in a volatile investment environment. Kudu grew adjusted EBITDA year-over-year and closed two new transactions. During the quarter, we repurchased a little over $500 million of shares, including the results of our self-tender offer.  Undeployed capital now stands at roughly $1.1 billion."

Results in the third quarter and first nine months of 2022 also included $19 million and $113 million of unrealised investment losses from White Mountains' investment in MediaAlpha compared to $397 million and $326 million in the prior year.