WHITE MOUNTAINS INSURANCE GROUP (WTM)·Q4 2025 Earnings Summary

White Mountains Delivers 18% BVPS Growth on $816M Bamboo Sale Windfall

February 6, 2026 · by Fintool AI Agent

White Mountains Insurance Group (NYSE: WTM) reported a transformational Q4 2025, with book value per share surging 18% to $2,188 following the strategic sale of Bamboo to CVC Capital Partners. The $816 million net gain from the transaction, combined with solid operating results across the portfolio, drove full-year BVPS growth of 25% including dividends—the company's best annual performance in recent memory.

CEO Liam Caffrey called it "an excellent year," highlighting that the Bamboo sale alone added roughly $320 to BVPS. Beyond the headline transaction, Ark produced an 83% combined ratio with 16% premium growth, Kudu delivered 13% ROE, and the investment portfolio (excluding MediaAlpha) returned 8.9%.

How Did the Stock React?

White Mountains shares traded at $2,126.57 at the close on February 5, 2026, ahead of the earnings release. After-hours trading saw the stock rise to approximately $2,142, up about 0.7% on the news.

The muted reaction likely reflects that much of the Bamboo transaction value was already anticipated—the sale closed on December 5, 2025—though the full magnitude of the gain ($816 million vs. the $848 million cash proceeds) may have exceeded some expectations given the retained equity stake.

What Drove the Quarter?

The Q4 results were dominated by the Bamboo transaction, but underlying operations also performed well:

Bamboo Sale ($816M Net Gain)

White Mountains completed the sale of Bamboo to CVC Capital Partners on December 5, 2025, for:

• $848 million net cash proceeds at closing
• 15% retained equity stake valued at $250 million
• $816 million net gain after parent company compensation costs

Bamboo CEO John Chu noted that managed premiums reached $766 million for the full year (up 58%) and MGA adjusted EBITDA hit $106 million—2x year-over-year.

Ark/WM Outrigger — Core P&C Engine

Ark continued its strong underwriting execution:

Key Q4 notes:

• 10 points of catastrophe losses in Q4 from Hurricane Melissa
• 10 points of favorable prior year development driven by property and specialty lines
• 11 points of unfavorable development from Ukraine/Russia aviation losses

CEO Ian Beaton highlighted A.M. Best's upgrade of Ark's issuer credit rating to "a+/stable" and noted that while the "overall rate environment is softening, we continue to see opportunities to generate strong returns in 2026."

How Are the Other Segments Performing?

HG Global — Record Year

HG Global posted record levels for both par value assumed ($3.17 billion, up 7%) and gross written premiums ($61 million, up 17%).

Kevin Pearson noted that "municipal market issuance is expected to remain strong in 2026."

The segment's pre-tax income was $45 million for the year, a significant improvement from the $(66) million loss in 2024 which included the $115 million unrealized loss on BAM deconsolidation.

Kudu — Strongest ROE in Portfolio

Kudu delivered a 13% return on equity for 2025, up from 9% through Q3:

The portfolio grew to $1.3 billion in participation contracts, with annualized adjusted EBITDA of $70 million. CEO Rob Jakacki highlighted the monetization of the Apera investment "at an attractive valuation" during the quarter.

Distinguished — New Acquisition Ramping

Distinguished, acquired on September 2, 2025, contributed:

• $145 million managed premiums in Q4
• $9 million ScaleCo adjusted EBITDA

President Jason Rotman noted the "market-leading Umbrella program is well-positioned to support clients in a challenging market" and announced four additional growth programs launching.

MediaAlpha — Small Contributor

White Mountains owns 17.9 million shares (27% basic ownership) of MediaAlpha, valued at $231 million as of December 31, 2025. The share price rose 14% in Q4 from $11.38 to $12.95.

At current ownership levels, each $1.00 change in MediaAlpha's share price impacts WTM's BVPS by approximately $7.00.

What About Capital Allocation?

White Mountains aggressively returned capital to shareholders while maintaining dry powder:

Including the WM Outrigger Re distribution received in January, undeployed capital stands at approximately $1.0 billion—providing significant firepower for future opportunities.

How Did the Investment Portfolio Perform?

Mark Plourde, President of White Mountains Advisors, noted that the short-duration fixed income portfolio returned 5.9% for the year vs. the Bloomberg Intermediate Aggregate Index return of 7.5%. The equity portfolio (excluding MediaAlpha) returned 13.0% vs. the S&P 500's 17.9%.

What Headwinds Should Investors Watch?

Several items to monitor going forward:

1. Bermuda Deferred Tax Reversal: White Mountains reversed a $73 million deferred tax asset related to the Bermuda economic transition adjustment ($51M at Ark, $22M at HG Global) due to Pillar II legislation enacted by Luxembourg.

2. Ark Contingent Consideration: The fair value of White Mountains's contingent consideration liability increased by $99 million in Q4 and $173 million for the year, driven by Ark's strong tangible book value growth.

3. Aviation Losses: Ark recognized 11 points of unfavorable development in Q4 related to Ukraine/Russia aviation losses—a lingering tail from the 2022 conflict.

4. Softening Rate Environment: CEO Ian Beaton acknowledged the "overall rate environment is softening" though Ark still sees opportunities for strong returns.

What's the Bottom Line?

White Mountains delivered a landmark quarter driven by exceptional execution on the Bamboo sale. The $816 million gain pushed BVPS to $2,188—just 3% below the current stock price of ~$2,127—meaning the stock trades at approximately 0.97x book value.

For a specialty insurance holding company with:

• A high-performing P&C platform (Ark at 83% combined ratio)
• Attractive alternative asset returns (Kudu at 13% ROE)
• $1 billion in undeployed capital
• A history of disciplined capital allocation (buying back stock at 92% of book)

...trading at book value appears reasonable, though the Bamboo gain was a one-time tailwind that won't repeat.

Key Financial Data

Consolidated Results

Balance Sheet Highlights

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White Mountains expects to file its Form 10-K on or before February 27, 2026.

Related Resources:

• White Mountains Company Profile
• Q4 2025 Earnings Transcript
• Q3 2025 Earnings Analysis