#Bermuda #Hamilton #Q3 2026 #White Mountains Insurance #Book Value Report

White Mountains Reports Third Quarter Results

On November 5, 2026, White Mountains Insurance Group, Ltd. (NYSE: WTM) reported its financial performance for the third quarter of 2026. The company revealed a book value per share of $2,243, which indicates a decrease of 1% compared to the previous quarter. However, there was a 3% increase for the first nine months of the year, including dividends.

Key Highlights of Q3 2026

Liam Caffrey, the CEO, shared insights regarding these financial results, stating that the 1% drop in book value per share was primarily due to unrealized investment losses caused by rising interest rates and a decline in the share price of MediaAlpha. Despite these setbacks, operating performance remained robust. Notably:

• - Ark showcased a combined ratio of 75% and collected $386 million in gross written premiums, contributing positively to tangible book value growth.
• - Kudu showed adjusted EBITDA growth; however, its trailing twelve-month return on equity reduced to 8% due to decreased fair value in its portfolio caused by higher interest rates.
• - HG Global achieved a record $19 million in gross written premiums, although its returns were adversely affected by rising interest rates.
• - Distinguished reported solid growth in both managed premiums and ScaleCo adjusted EBITDA.
• - WTM Partners experienced healthy growth in both revenues and profits.

The quarter was not without challenges. MediaAlpha’s share price dropped significantly, resulting in $54 million of mark-to-market losses for White Mountains' remaining stake. Overall, the consolidated investment portfolio remained flat, primarily weighed down by fixed-income performance.

Comprehensive Income

In terms of comprehensive income attributable to common shareholders, the company reported a net loss of $39 million in Q3, comprised of net realized and unrealized investment gains and losses that amounted to $(69) million and $92 million for the first nine months of the year. In contrast, the same period of 2025 reported income of $114 million and $272 million, respectively.

Segment Performance

Ark/WM Outrigger

Ark, a prominent segment within government and specialty lines, achieved a combined ratio showcasing improvements at 75% compared to 76% in the previous year. The segment took on estimated losses of $10 million related to geopolitical tensions in Iran, along with minimal impacts from Hurricane Isaias.

Kudu

In a turn of events, Kudu reported total revenues of $(5) million with pre-tax losses of $15 million, indicating a notable decline from the previous year's profits. CEO Rob Jakacki commented on maintaining fundamental portfolio values despite declining fair value in contracts due to market conditions.

HG Global

HG Global had impressive production, indicating a shift towards primary market policies. Gross written premiums rose significantly in year-over-year comparisons, although higher interest rates led to investment losses.

Distinguished

Distinguished reported growth in managed premiums and saw its ScaleCo adjusted EBITDA rise, reflecting evolving business dynamics and better segment performance generally.

Investments and Future Outlook

White Mountains' investment portfolio reflects ongoing concerns in the market cycles, especially tied to interest rate fluctuations. Despite these challenges, Mark Plourde highlighted the stability in returns excluding MediaAlpha, positioning for solid future performance.

Conclusion

In summary, White Mountains Insurance Group's Q3 2026 results depict a landscape of resilience amid challenges such as fluctuating interest rates and investment losses. The management remains focused on navigating these complexities and seizing growth opportunities as they arise. For more detailed insights, investors are encouraged to review the complete financial statements available on their official website.