#Bermuda #Hamilton #CVC Capital #White Mountains #Bamboo

White Mountains Reports Strong Third Quarter Results

White Mountains Insurance Group, Ltd. (NYSE: WTM) announced their financial results for the third quarter of 2025, revealing a book value per share of $1,851, marking a notable increase of 3% from the previous quarter and 6% over the first nine months of the year. This growth includes dividends and underscores the company's robust operational and investment performance.

Key Financial Highlights

As of September 30, 2025, White Mountains engaged in a strategic transaction to sell approximately 77% of its equity interest in Bamboo to CVC Capital Partners. The estimated closing impact of this deal is projected to elevate the book value per share to approximately $2,176, reflecting a significant boost.

CEO Manning Rountree emphasized that the company achieved strong operating results, with Ark reporting a 76% combined ratio and gross written premiums of $366 million for the quarter. Furthermore, HG Global grew its book value by 3%, contributing $16 million in gross written premiums.

Investment Portfolio Growth

The company also reported a 2% increase in its consolidated investment portfolio (excluding MediaAlpha), benefiting from gains in both fixed income and equities. The results reflect the company's strategic asset management and the overall health of its investment strategies.

In the realm of Kudu, the firm achieved a 9% return on equity over the trailing twelve months, demonstrating the effectiveness of its diverse portfolio of participation contracts.

Other highlights of the quarter include the impressive performance of Bamboo, which reached record numbers in managed premiums and adjusted EBITDA. The company anticipates continued expansion, especially following the introduction into the Texas market.

Comprehensive Income Analysis

Comprehensive income attributable to common shareholders stood at $114 million for the third quarter, down from $180 million in the previous year. The decrease can primarily be attributed to the filing of unrealized investment gains, especially from MediaAlpha, down to $8 million compared to the previous year's $88 million.

Meanwhile, Ark/WM Outrigger experienced improvements in their combined ratios, contributing positively to the overall income. The company continues to show resilience even amid challenging market conditions, with effective risk management strategies driving performance.

Future Outlook

Looking ahead, White Mountains remains focused on leveraging its operational strengths and strategic partnerships. The impending sale of Bamboo signifies a significant transition period for White Mountains, with anticipated improvements in capital position. The transaction is expected to enhance the company’s capacity for growth and strategic investments moving forward.

“We are excited about the path ahead as we strategically position ourselves for growth and improved shareholder value,” stated Rountree, indicating an optimistic outlook for the company’s future initiatives.

Conclusion

White Mountains' third quarter results reflect a strong financial footing and strategic foresight in navigating the complexities of the insurance landscape. As they shift towards optimizing their investment portfolio and developing new markets, stakeholders can expect continued attention to operational excellence and financial stability.