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WM

WHITE MOUNTAINS INSURANCE GROUP LTD (WTM)·Q1 2025 Earnings Summary

Executive Summary

  • Book value per share was $1,752.17, up 0.4% QoQ including the $1.00 dividend; comprehensive income attributable to common shareholders was $35 million, down from $236 million YoY due to a $37 million mark-to-market loss on MediaAlpha .
  • Ark grew gross written premiums 27% YoY to $1.11B and delivered a 94% combined ratio despite 25 points of catastrophe losses from the January 2025 California wildfires; WM Outrigger Re’s combined ratio spiked to 166% on wildfire-related losses .
  • Kudu posted strong investment-driven results (revenues $63.8M, pre-tax $53.4M, adjusted EBITDA $15.8M), while Bamboo doubled commission and fee revenue YoY to $44.2M and completed its April 1 treaty renewal on favorable terms .
  • Investment portfolio return was 1.7%; excluding MediaAlpha, 2.3% (fixed income +1.7% lagging Bloomberg Intermediate Aggregate, equity +3.1% ahead of S&P 500) .
  • No formal company guidance was issued; management discontinued adjusted book value per share beginning in 2025 post BAM deconsolidation, a disclosure change to note for valuation frameworks .

What Went Well and What Went Wrong

What Went Well

  • “Ark posted a 94% combined ratio and wrote $1.1 billion of gross written premiums, up 27% year-over-year,” reflecting strong property and specialty growth, with net favorable prior-year development (14 points) offsetting catastrophe impacts .
  • Kudu’s portfolio strength: “total revenues of $64 million, pre-tax income of $53 million and adjusted EBITDA of $16 million,” driven by $44M net realized/unrealized investment gains and $19M net investment income; ROE TTM rose to 13% .
  • Bamboo resiliency and growth: commission and fees $44.2M (+102% YoY), MGA adjusted EBITDA $19.9M (over 3x YoY); treaty renewal executed and catastrophe exposure largely reinsured .

What Went Wrong

  • MediaAlpha exposure: share price fell ~18% QoQ, producing $(36.6)M net realized/unrealized loss in Other Operations and reducing carrying value to $165M; at current ownership, $1 change in MediaAlpha stock moves WTM BVPS by ~$7 .
  • California wildfires pressure: Ark’s combined ratio included 25 catastrophe points ($75M net after reinsurance/reinstatement), WM Outrigger Re incurred $19M catastrophe losses net of reinstatement premiums; segment combined ratio rose to 96.5% (Ark/WM Outrigger total) .
  • HG Global primary market softness: gross written premiums fell to $6.7M (from $8.9M YoY); total gross pricing declined to 157 bps (165 bps YoY), though secondary market activity picked up .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Total Revenues ($USD Millions)$839.1 $358.0 $577.8
Net Income Attributable to Common ($USD Millions)$179.0 $(130.4) $33.9
Diluted EPS ($USD)$69.68 $(50.78) $13.19
Ark/WM Outrigger Combined Ratio (%)76.9% 77.3% 96.5%

Segment breakdown (Q1 2025):

SegmentKey MetricsQ1 2025
ArkGross Written Premiums ($M)$1,107.6
ArkNet Earned Premiums ($M)$346.0
ArkCombined Ratio (%)94%
WM Outrigger ReNet Earned Premiums ($M)$12.0
WM Outrigger ReCombined Ratio (%)165.8%
HG GlobalEarned Premiums ($M)$8.2
HG GlobalPre-tax Income ($M)$25.0
KuduTotal Revenues ($M)$63.8
KuduPre-tax Income ($M)$53.4
KuduAdjusted EBITDA ($M)$15.8
BambooCommission & Fee Revenues ($M)$44.2
BambooManaged Premiums ($M)$147
BambooMGA Adjusted EBITDA ($M)$19.9
Other OpsMediaAlpha MTM ($M)$(36.6)
Other OpsPre-tax Income (Loss) ($M)$(58.7)

Selected KPIs:

KPIQ3 2024Q4 2024Q1 2025
Book Value per Share ($)$1,795.31 $1,745.87 $1,752.17
Total Consolidated Portfolio Return (%)4.6% -2.3% 1.7%
Equity Portfolio Return ex-MediaAlpha (%)3.8% -0.6% 3.1%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company GuidanceFY 2025None providedNone providedMaintained (no formal guidance)
Catastrophe Outlook (Ark/WM Outrigger)FY 2025N/ACommentary only; wildfire losses in Q1 not expected to materially diverge full-year actual catastrophe losses from plan (context set in Q4 release)Informational (not formal guidance)

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available; themes below reflect press releases.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Catastrophe ExposureArk combined ratio impacted by hurricanes/Calgary hail; WM Outrigger Re 58% CR; planning for Hurricane Milton Ark had 27 catastrophe points in Q4; WM Outrigger Re 86% CR January CA wildfires: Ark 25 cat points ($75M net), WM Outrigger Re $19M losses Elevated cat activity; reinsurance mitigants working
BAM/ HG Global ValuationDeconsolidation in Q3; BAM surplus notes fair valued ($411M) Fair value decreased to $382M; pre-tax loss at HG Global in Q4 from fair value/interest rates HG Global pre-tax income $25M; BAM surplus notes FV rose to $389M via ~$8M accrued interest Stabilizing post deconsolidation
MediaAlpha Impact$88M unrealized gain in Q3; BVPS sensitivity disclosed $(122)M mark-to-market loss in Q4 $(36.6)M mark-to-market loss; carrying value $165M; $7 BVPS per $1 stock move Continued BVPS sensitivity
Bamboo Operating MomentumManaged premiums $148M; MGA adj. EBITDA $18.6M in Q3 Managed premiums $127M; MGA adj. EBITDA $16.2M in Q4; term loan/dividend recap Managed premiums $147M; MGA adj. EBITDA $19.9M; treaty renewal; wildfire losses largely reinsured Strong growth; program capacity resilient
Investment PortfolioQ3 total portfolio +4.6%; ex-MediaAlpha +3.3% Q4 total -2.3%; ex-MediaAlpha -0.4% Q1 total +1.7%; ex-MediaAlpha +2.3% (FI +1.7%, equity ex-MA +3.1%) Mixed versus benchmarks

Management Commentary

  • Manning Rountree (CEO): “Book value per share ended the quarter at $1,752, up slightly… Excluding MediaAlpha, the investment portfolio returned 2.3%… undeployed capital now stands at roughly $550 million” .
  • Ian Beaton (Ark CEO): “We are off to a good start in 2025, with a combined ratio of 94%. Gross written premiums increased 27%… Market conditions remain attractive” .
  • Kevin Pearson (HG Global President): “Gross written premiums decreased by 25% year over year… secondary market volume increased… making a nice contribution to total pricing” .
  • Rob Jakacki (Kudu CEO): “Return on equity increased to 13% and annualized adjusted EBITDA increased by 7% to $65 million… expect to remain active in deploying capital throughout 2025” .
  • John Chu (Bamboo CEO): “Trailing 12 months managed premiums increased to $542 million… MGA adjusted EBITDA increased to $66 million… completed our April 1st treaty year renewal on favorable terms” .
  • Mark Plourde (WMA President): “Fixed income returned 1.7%, lagging Bloomberg Intermediate Aggregate… equity excluding MediaAlpha returned 3.1%, ahead of S&P 500’s -4.3%” .

Q&A Highlights

No Q1 2025 earnings call transcript was available; therefore, no Q&A highlights or clarifications can be provided from a call [ListDocuments returned none].

Estimates Context

  • S&P Global consensus estimates were unavailable for EPS and revenue for Q1 2025 (dataset returned no consensus entries); as a result, formal beat/miss vs Street cannot be determined. Actual Q1 revenue was $577.8M and diluted EPS was $13.19 per company reporting .
  • Where estimates were unavailable, note that “Values retrieved from S&P Global.”
MetricQ1 2025 ConsensusQ1 2025 Actual
Revenue ($USD Millions)N/A*$577.8
Primary EPS ($USD)N/A*$13.19

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Ark’s underwriting growth and resilience: 27% YoY GWP growth, 94% combined ratio despite 25 catastrophe points, supported by favorable prior-year development—positioned for profitable growth even as rates moderate .
  • Catastrophe event impact manageable: WM Outrigger Re’s Q1 spike to 166% combined ratio reflects CA wildfires; the group’s diversified reinsurance arrangements and capital commitment sizing help absorb volatility .
  • Kudu as an earnings and value driver: strong investment gains and consistent net investment income produce outsized pre-tax results; continued capital deployment pipeline supports forward contribution .
  • Bamboo scaling with robust program capacity: significant YoY revenue growth, treaty renewal on favorable terms, and wildfire losses largely retained by reinsurance partners—supports continued profitable expansion .
  • MediaAlpha sensitivity remains a swing factor: $(36.6)M MTM loss reduced BVPS progress; $1 change in MediaAlpha stock ≈ $7 change in BVPS at current ownership—monitor equity market dynamics and MediaAlpha fundamentals .
  • Portfolio returns mixed vs benchmarks: FI duration choice lagged BBIA in Q1; equity ex-MediaAlpha outperformed S&P 500—asset allocation and duration decisions remain a lever for relative performance .
  • Disclosure change: adjusted BVPS discontinued from 2025 given BAM surplus notes carried at fair value; investors should anchor on GAAP BVPS and segment disclosures for intrinsic value analysis .