#United States #Bermuda #Insurance Growth #White Mountains #Bamboo Sale

Overview of Fourth Quarter Results

On February 6, 2026, White Mountains Insurance Group, Ltd. (NYSE: WTM) shared its earnings report for the fourth quarter of 2025, highlighting a significant growth in its book value per share (BVPS). As of December 31, 2025, the BVPS stood at $2,188, marking an impressive 18% increase for the quarter and an overall increase of 25% for the year ending 2025, inclusive of dividends.

CEO Remarks

Liam Caffrey, CEO of White Mountains, attributed this growth to notable performance across the company's operating segments. The successful sale of Bamboo contributed approximately $320 to the BVPS in 2025, underlining the strategic decision to divest this asset. Caffrey also noted that robust results from operating companies and sound investment returns fueled this upward trend. Ark, one of the key subsidiaries, reported a remarkable 83% combined ratio and $2.6 billion in gross written premiums, reflecting a 16% rise over the previous year.

Performance by Subsidiaries

Ark/WM Outrigger

Ark produced a combined ratio of 79% in Q4 2025, which included disaster-related losses primarily from Hurricane Melissa. This was a slight rise from the 77% recorded in Q4 2024. Gross written premiums for Ark were reported at $268 million for the quarter and $2.6 billion for the full year. Such figures signify Ark's resilience and growth amidst competitive conditions in the insurance market.

HG Global

Bolstering its performance, HG Global generated $61 million in gross written premiums, which represent a substantial increase, fueled by a record performance at BAM. However, HG Global faced challenges with a reported pre-tax loss of $19 million in Q4 2025, emphasizing the financial pressures present in the insurance market.

Kudu

The asset management sector, Kudu, reported total revenues of $45 million, with pre-tax income reaching $32 million for Q4 2025. This marks a significant recovery compared to a loss in the same quarter of the previous year. The company's efforts to enhance its portfolio have resulted in a notable return on equity of 13% for 2025, showcasing its strong performance amidst fluctuating market conditions.

Distinguished

In its first period of operation after acquisition, Distinguished reported managed premiums of $145 million in Q4 2025. CEO Jason Rotman indicated promising performance from its flagship Umbrella program, with additional growth initiatives underway.

Strategic Operations and Future Outlook

During Q4 2025, White Mountains conducted significant share repurchases totaling approximately $190 million, reflecting management’s confidence in the company's financial stability. The overall investment portfolio returned an impressive 2.0% for the quarter, demonstrating effective investment strategies that are expected to yield similar returns in 2026.

As the company heads into 2026, the growth trajectory indicates a focus on leveraging opportunities in the evolving insurance landscape. Caffrey reiterated the company's commitment to delivering value to shareholders while exploring innovative strategies to enhance operational efficiency.

Conclusion

White Mountains Insurance Group has demonstrated a robust financial performance in Q4 2025, characterized by strategic divestitures, operational excellence, and prudent investment choices. As market conditions fluctuate, the company's disciplined approach sets a strong foundation for future growth and resilience.