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WM

WHITE MOUNTAINS INSURANCE GROUP LTD (WTM)·Q2 2025 Earnings Summary

Executive Summary

  • Book value per share rose 3% QoQ to $1,803.57, with comprehensive income of $124M; investment returns were solid at 2.7% total portfolio return (2.3% ex-MediaAlpha), while Ark delivered an 85% combined ratio and 17% YoY GWP growth, underpinning the quarter’s strength .
  • Bamboo posted a record quarter: commission and fee revenues of $59.1M (+81% YoY), MGA adjusted EBITDA of $25.6M, and managed premiums of $191M (+59% YoY), signaling robust distribution momentum despite earlier wildfire impacts .
  • HG Global had a strong quarter with gross written premiums at $19.2M (+66% YoY), par value assumed up 18% YoY, and total gross pricing up 39% YoY; Kudu results were “flattish” given lower realized/unrealized gains, but underlying EBITDA was resilient .
  • Strategic catalysts: majority stake in Distinguished Programs (51%; ~$230M for ~50%), and closing of the BroadStreet Partners transaction, while undeployed capital stands at roughly $300M post deployments—supporting further capital allocation optionality .
  • Note: No Q2 2025 earnings call transcript was found; and S&P Global Wall Street consensus coverage (EPS, revenue) for WTM was limited or unavailable—estimate comparisons are therefore not applicable for this quarter [functions.SearchDocuments none found] [functions.GetEstimates].

What Went Well and What Went Wrong

What Went Well

  • Ark’s underwriting performance improved: combined ratio at 85% (vs. 89% YoY) and pre-tax income of $91M, supported by 17% YoY GWP growth and favorable prior-year development across property, marine & energy, and specialty lines; investment gains contributed $51M in Q2 .
  • Bamboo delivered record financials: commission and fee revenues $59.1M, MGA adj. EBITDA $25.6M, and managed premiums $191M; CEO highlighted “record financial performance” with TTM MGA adjusted EBITDA up 3x YoY, indicating scalable growth in the MGA platform .
  • HG Global momentum: GWP $19.2M, par value of policies assumed $930.5M (+18% YoY), total gross pricing 206 bps (+39% YoY), and pre-tax income $17M—benefiting from higher primary market issuance and improved pricing .

What Went Wrong

  • Outrigger Re volatility: combined ratio of 44% in Q2 but 120% YTD, reflecting California wildfire losses ($19M net of reinstatement), and mixed underwriting year contributions; YTD pre-tax income only $0.3M .
  • Equity portfolio underperformed the S&P 500: equity portfolio ex-MediaAlpha returned 3.4% vs. S&P 500’s 10.9% in a strong quarter, driven by lower relative returns from market neutral and long-term positions—though fixed income matched benchmarks .
  • Kudu faced reduced realized/unrealized gains: GAAP ROE dipped to 8% and quarterly total revenues fell to $20.4M (from $70.2M YoY), reflecting volatile markets, albeit adjusted EBITDA improved YoY ($16.2M vs. $12.4M) .

Financial Results

Consolidated Results vs prior periods and YoY

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Total Revenues ($USD Millions)$395.4 $358.0 $577.8 $689.2
Net Income attributable to common ($USD Millions)$(54.6) $(130.4) $33.9 $122.9
Basic EPS ($)$(21.24) $(50.78) $13.19 $47.75
Diluted EPS ($)$(21.24) $(50.78) $13.19 $47.75
Comprehensive Income attributable to common ($USD Millions)$(54.6) $(131.1) $35.1 $123.7
Book Value per Share ($)$1,722.02 $1,745.87 $1,752.17 $1,803.57

Segment Highlights (Q2 2025 vs Q2 2024 where applicable)

Segment MetricQ2 2024Q2 2025
Ark/WM Outrigger GWP ($MM)$697.0 $815.2
Ark/WM Outrigger Net Earned Prem. ($MM)$318.3 $364.2
Ark Combined Ratio (%)88.5% 85.2%
Outrigger Re Combined Ratio (%)26.7% 43.7%
HG Global GWP ($MM)$11.6 $19.2
HG Global Earned Prem. ($MM)$7.5 $7.1
HG Global Total Gross Pricing (bps)148 206
Kudu Total Revenues ($MM)$70.2 $20.4
Kudu Adjusted EBITDA ($MM)$12.4 $16.2
Bamboo Commission & Fee Rev. ($MM)$32.7 $59.1
Bamboo Managed Premiums ($MM)$120 $191
Other Operations Net Gains ex-MediaAlpha ($MM)$9 $32

KPIs

KPIQ2 2024Q1 2025Q2 2025
BVPS ($)$1,722.02 $1,752.17 $1,803.57
QoQ BVPS Change incl. Dividends(1.2)% 0.4% 2.9%
Total Portfolio Return (%)(0.1)% 1.7% 2.7%
Total Portfolio Return ex-MediaAlpha (%)2.2% 2.3% 2.3%
Common Shares Outstanding (000s)2,568.3 2,573.7 2,575.1

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal Company GuidanceFY/QuarterNone disclosedNone disclosedMaintained (no formal guidance)
Ark Cat Loss Outlook (context)FY 2025Ark did not expect wildfire losses to diverge materially from planned cat losses (context shared in Q4)No update in Q2 releaseN/A
Undeployed CapitalNear-term~$700M post Q4 2024 recapitalizations~"$300M" after Q2 deploymentsLower (capital deployed)

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available; themes synthesized from management remarks in press materials.

TopicQ-2 (Q4 2024 press)Q-1 (Q1 2025 press)Current Period (Q2 2025 press)Trend
Underwriting performance (Ark)77% CR; cat exposure noted; AM Best affirmation 94% CR; 25 points cat from CA wildfires; strong PYD 85% CR; 5 points favorable PYD; GWP +17% YoY Improving vs Q1; healthy growth
Municipal guarantee (HG Global)Record par, fair value of BAM notes dynamics, deconsolidation impacts Slow primary issuance; secondary market contribution; pre-tax income up Strong quarter; par +18% YoY; pricing up; pre-tax income $17M Strengthening with primary market
Distribution (Bamboo)Strong Q4; TTM managed premiums doubled; wildfire commentary; financing/dividends Strong start; renewals favorable; wildfire losses within reinsurance Record metrics; losses estimate unchanged ($160M) Scaling; disciplined risk transfer
Asset management (Kudu)Tough Q4 macro; full-year resilient; portfolio >$1B Strong TTM EBITDA; fair value +4% same-store; active pipeline “Okay quarter”; ROE 8%; adj. EBITDA up; pipeline active Resilient despite market volatility
Investment portfolioDown slightly in Q4 (ex-MA +6.5% FY) Ex-MA +2.3% Q1; mixed vs benchmarks Ex-MA +2.3% Q2; equity lagged S&P 500 Solid absolute; relative underperformance
Strategic capital deploymentUndeployed ~$700M; Bamboo recap proceeds New deployments (BroadStreet, Enterprise Solutions) Distinguished majority stake; BroadStreet closing; undeployed ~$300M Active M&A; lower dry powder

Management Commentary

  • CEO Manning Rountree: “BVPS was up 3% in the quarter… Ark produced an 85% combined ratio and $815 million of gross written premiums… Bamboo had a record quarter… Excluding MediaAlpha, our investment portfolio was up 2.3%… Including these deployments, undeployed capital now stands at roughly $300 million.”
  • Ark CEO Ian Beaton: “Gross written premiums in the quarter were up 17% year-over-year, aided by the addition of new underwriting teams and classes of business.”
  • HG Global President Kevin Pearson: “Gross written premiums increased 66% year-over-year… par value assumed increased 18% year-over-year… total gross pricing increased 39% year-over-year.”
  • Kudu CEO Rob Jakacki: “GAAP ROE dipped to 8%… annualized adjusted EBITDA increased 1%… portfolio held up well under volatile market conditions.”
  • Bamboo CEO John Chu: “We once again achieved record financial performance… TTM managed premiums increased to $613 million… TTM MGA adjusted EBITDA increased to $80 million… robust, profitable growth in the second half of 2025 and beyond.”

Q&A Highlights

  • No Q2 2025 earnings call transcript was available; no Q&A details could be reviewed or validated for this period [functions.SearchDocuments none found].

Estimates Context

  • Consensus EPS and revenue estimates from S&P Global appear unavailable for WTM for Q2 2025; as a result, no beat/miss analysis vs Street can be provided for EPS or revenue this quarter [functions.GetEstimates].
  • Reported revenue actuals per S&P Global data for recent quarters (for completeness): Q1 2025 $577.8M*, Q2 2025 $689.2M*, Q3 2025 $864.2M*. Values retrieved from S&P Global.*
MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)577.8*689.2*864.2*
Note: S&P Global consensus EPS, target price, and recommendation were unavailable for these periods.*

Key Takeaways for Investors

  • Underwriting strength: Ark’s improved combined ratio and double-digit premium growth, alongside favorable prior-year development, point to sustained underwriting discipline and earnings power even amid catastrophe volatility .
  • Distribution scaling: Bamboo’s record quarter and robust TTM metrics highlight durable growth in California P&C distribution with effective reinsurance structures absorbing catastrophe losses; watch April treaty renewals and loss trends .
  • Municipal market tailwinds: HG Global benefited from stronger primary issuance and better pricing; monitoring interest-rate moves remains key for fair value of BAM surplus notes and income trajectory .
  • Investment returns solid but relatively lagging: Absolute results strong; however, equity portfolio (ex-MediaAlpha) lagged the S&P 500, implying potential upside if long-term and market-neutral strategies normalize relative performance .
  • Capital deployment as a catalyst: Distinguished majority stake and BroadStreet closing reduce dry powder to ~$300M, but increase earnings capacity and strategic reach in insurance distribution; further M&A or capital recycling could re-accelerate BVPS compounding .
  • MediaAlpha sensitivity: A $1 change in MediaAlpha’s share price moves WTM BVPS by ~$7; continued mark-to-market can influence quarterly BVPS trajectory and investor sentiment .
  • Expect limited Street estimate comparisons: Sparse coverage constrains conventional beat/miss narratives; focus on segment KPIs, BVPS growth, and capital deployment to frame performance and valuation [functions.GetEstimates].