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WM

WHITE MOUNTAINS INSURANCE GROUP LTD (WTM)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 performance was solid: total revenues of $864.2M, net income attributable to common shareholders of $113.8M, and basic EPS of $44.18; book value per share (BVPS) rose 3% q/q to $1,851.33 .
  • Ark delivered strong underwriting (76% combined ratio) with minimal catastrophe losses; HG Global posted $22M pre-tax income; Kudu’s adjusted EBITDA was $14.7M and ROE improved to 9%; Bamboo posted a record quarter in managed premiums and MGA adjusted EBITDA .
  • Strategic catalyst: definitive agreement to sell ~77% of Bamboo to CVC; upon closing, BVPS would increase by ~$325 per share and undeployed capital would rise from ~$0.3B to ~$1.1B—key stock narrative driver heading into Q4 2025 .
  • Investment portfolio returned 2.1% in Q3; excluding MediaAlpha, portfolio returned 2.0% (equities 2.7% vs S&P 500 8.1%), creating a relative performance headwind cited by management .

What Went Well and What Went Wrong

What Went Well

  • Ark/WM Outrigger underwriting: Ark’s combined ratio improved to 76% in Q3 with minimal cat losses; gross written premiums (GWP) reached $366M, pre-tax income $97M. “We have enjoyed good results for the first three quarters of 2025…” — Ian Beaton, Ark CEO .
  • HG Global momentum: Pre-tax income of $22M in Q3 with par value assumed up 24% YoY; book value grew 3% q/q .
  • Bamboo scale and profitability: Managed premiums rose to $221M (+49% YoY), MGA adjusted EBITDA to $28.1M; expansion into Texas supports profitable growth narrative .
  • Capital strategy: Announced Bamboo sale to CVC—expected to add ~$325 per share to BVPS and increase undeployed capital to ~$1.1B .
  • Kudu stability: Adjusted EBITDA of $14.7M; TTM ROE increased to 9% on higher realized/unrealized gains .

What Went Wrong

  • Relative investment returns lag: Equity portfolio ex-MediaAlpha returned 2.7% in Q3, behind the S&P 500 at 8.1%, driven by market neutral and portfolio repositioning effects .
  • Other Operations swung to loss: Q3 pre-tax loss of $(25)M; higher G&A from deal costs (Bamboo transaction and Enterprise Solutions) and elevated cost of sales .
  • Loss items: Non-cat losses included $30M (net) from a refinery fire; prior-year adverse development in aviation lines earlier in 2025 (four points YTD) .
  • WM Outrigger Re variability: Despite Q3 pre-tax income of $29M, the underwriting pattern reflects sensitivity to catastrophe loss allocation across underwriting years .

Financial Results

Consolidated P&L and BVPS

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$577.8 $689.2 $864.2
Net Income attributable to common ($USD Millions)$33.9 $122.9 $113.8
Basic EPS ($USD)$13.19 $47.75 $44.18
Book Value Per Share ($USD)$1,752.17 $1,803.57 $1,851.33

Segment Pre-tax Income (Quarterly)

SegmentQ1 2025Q2 2025Q3 2025
Ark$52.3 $91.3 $96.5
WM Outrigger Re$(5.9) $6.2 $29.4
HG Global$25.0 $16.7 $22.0
Kudu$53.4 $10.7 $43.6
Bamboo$6.3 $16.1 $15.0
DistinguishedN/AN/A$(2.7)
Other Operations$(58.7) $35.5 $(25.0)
Total Pre-tax Income$72.4 $176.5 $178.8

KPIs and Operating Metrics

KPIQ1 2025Q2 2025Q3 2025
Ark Gross Written Premiums ($USD Millions)$1,107.6 $815.2 $366.4
Ark Net Earned Premiums ($USD Millions)$346.0 $357.1 $498.6
Ark Combined Ratio (%)94% (Ark) 85% (Ark) 76% (Ark)
HG Global Total Par Value Assumed ($USD Millions)$427.3 $930.5 $850.4
Bamboo Managed Premiums ($USD Millions)$147 $191 $221
Bamboo MGA Adjusted EBITDA ($USD Millions)$19.9 $25.6 $28.1
Consolidated Portfolio Return ex-MediaAlpha (%)2.3% 2.3% 2.0%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Book Value Per Share (BVPS)Upon closing Bamboo sale (expected Q4 2025)N/AIncrease by ~$325 per share Raised
Undeployed CapitalPost-closing~$0.3B ~$1.1B Raised
HG Global PricingQ3 2025N/ATotal gross pricing down marginally q/q; higher volumes offset Maintained profitability, minor pricing down
Dividends per Share (YTD)2025 YTD$1.00 $1.00 Maintained

Earnings Call Themes & Trends

Note: An earnings call transcript was not available for Q3 2025; trends are derived from company press releases and the 8‑K.

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Catastrophe ExposureCalifornia wildfires impacted Ark and WM Outrigger Re in Q1; WM Outrigger Re Q2 results reflected underwriting year allocations Minimal catastrophe losses in Ark Q3; continued narrative on underwriting year performance Improving underwriting environment for Ark; normalized cat loss impact
Underwriting Growth (Ark)GWP up 27% YoY in Q1; 17% YoY in Q2 Ark YTD GWP $2.3B (+18%); adding teams/classes Sustained premium growth with discipline
Financial Guarantee (HG Global)Q1 slow primary issuance; Q2 strong with record premiums Q3 par up 24% YoY; pricing down slightly QoQ but volumes higher Stable profit contribution; volume-driven
Bamboo Growth & StrategyQ1–Q2: record managed premiums and MGA adj. EBITDA; successful treaty renewals; Greenshoots Re sidecar expansion Q3: record quarter; Texas launch; announced sale to CVC to crystallize value Scaling operations; capital-light monetization
Investment Portfolio PositioningQ1 ex-MediaAlpha +2.3%; Q2 ex-MediaAlpha +2.3% Q3 ex-MediaAlpha +2.0%; equity lag vs S&P 500 due to market neutral/liquidation earlier in 2025 Absolute returns positive; relative lag
MediaAlpha ExposureMark-to-market swings across Q1–Q3 impacting Other Ops Minor unrealized gains in Q3 (+$8M) Reduced drag in Q3 vs prior periods

Management Commentary

  • Manning Rountree, CEO: “BVPS was up 3% in the quarter… Ark produced a 76% combined ratio… Bamboo had another record quarter… Our consolidated investment portfolio, excluding MediaAlpha, was up 2.0%...” .
  • Manning Rountree (on Bamboo sale): “Upon closing, the transaction will increase our book value per share by $325 and our undeployed capital position from roughly $0.3 billion to $1.1 billion.” .
  • Ian Beaton, Ark CEO: “We have enjoyed good results for the first three quarters of 2025… Gross written premiums were $2.3 billion year-to-date, up 18%...” .
  • Kevin Pearson, HG Global President: “HG Global had a good quarter, growing book value by 3%… Pricing was down marginally quarter-over-quarter but was more than offset by higher volumes.” .
  • Rob Jakacki, Kudu CEO: “Kudu’s portfolio delivered solid performance again in the quarter… pipeline of new deals remains robust.” .
  • John Chu, Bamboo CEO: “We again produced excellent operating results… launched in Texas… the stage is set for profitable growth for the remainder of 2025 and beyond.” .

Q&A Highlights

No earnings call transcript was available for Q3 2025; therefore Q&A highlights and any related guidance clarifications are not available.

Estimates Context

Wall Street consensus via S&P Global was unavailable for EPS, revenue counts, and target price for Q3 2025.

MetricQ3 2025 Consensus# of EstimatesActual Q3 2025Beat/Miss
EPS ($USD)N/A (Unavailable via S&P Global)*N/A*$44.18 N/A
Revenue ($USD Millions)N/A (Unavailable via S&P Global)*N/A*$864.2 N/A
Target Price ($USD)N/A (Unavailable via S&P Global)*N/A*N/AN/A

*Values retrieved from S&P Global.

Implication: In the absence of formal sell-side coverage, the narrative will lean on BVPS trajectory, underwriting/margin quality at Ark, HG Global volumes, Bamboo monetization, and portfolio returns.

Key Takeaways for Investors

  • BVPS compounding remains intact: +3% q/q to $1,851.33; expected ~$325 per share uplift on Bamboo sale closing creates a tangible near-term catalyst .
  • Ark underwriting quality improving with minimal Q3 cat losses; combined ratio of 76% and premium growth support medium-term value creation .
  • HG Global contributes steady earnings with higher volumes offsetting minor pricing pressure; continued visibility into BAM surplus notes valuation .
  • Bamboo monetization de-risks capital and increases flexibility: undeployed capital expected to rise to ~$1.1B, supporting future deployment optionality .
  • Investment portfolio: positive absolute returns but relative lag versus benchmarks—monitor equity strategy positioning and any re-risking post deployments .
  • Segment dispersion matters: Kudu steady; Distinguished early-stage results modest and being scaled—watch integration and ScaleCo vs. GrowthCo execution .
  • With limited Street estimates, trading likely centers on BVPS path, capital actions, and Ark/HG Global operating momentum; focus on Q4 closing milestones and underwriting cadence.