White Mountains Insurance Group, Ltd.

What they do

White Mountains acquires controlling and minority interests in insurance, financial services and related businesses, operates them through subsidiaries, and disposes of them when attractive exit valuations become available. As of December 31, 2025, its reportable segments were Ark/WM Outrigger (property and casualty insurance and reinsurance), HG Global (municipal bond guarantee reinsurance), Kudu (capital solutions for asset and wealth management firms), and Distinguished (specialty insurance distribution). Other Operations includes holding companies, investment assets managed by WM Advisors, and interests in MediaAlpha, PassportCard/DavidShield, BroadStreet and Elementum.

Revenue drivers

• Ark/WM Outrigger — Property and casualty insurance and reinsurance written through Ark and the Outrigger Re collateralized reinsurer. In 2025 the segment reported gross written premiums of $2,557 million, net written premiums of $1,812 million and net earned premiums of $1,697 million, with a combined ratio of 81%.
• HG Global — Municipal bond guarantee reinsurance conducted through HG Global Ltd. and HG Re Ltd. In the second quarter of 2026, HG Global grew book value by 1% and paid White Mountains a $90 million dividend from its debt refinancing.
• Kudu — Provides capital solutions to asset and wealth management firms. Management reported a 15% return on equity on a trailing 12 months basis in the second quarter of 2026, driven by same-store growth and sale transactions.
• Distinguished — Specialty insurance distribution MGA and program administrator, acquired September 2, 2025 for $225 million of cash consideration. In the second quarter of 2026, it grew managed premiums and ScaleCo adjusted EBITDA.

Recent performance

Book value per share was $2,258 as of June 30, 2026, up 4% in the second quarter and 3% in the first six months of 2026 including dividends. Comprehensive income attributable to common shareholders was $199 million and $173 million in the second quarter and first six months of 2026, versus $124 million and $159 million a year earlier. The Ark/WM Outrigger combined ratio was 84% and 88% in the second quarter and first six months of 2026, compared to 84% and 90% in the prior-year periods, with catastrophe losses of three and five points driven primarily by the war in Iran. Ark recorded estimated losses of $17 million and $42 million, net of reinsurance and reinstatement premiums, related to the war in the second quarter and first six months of 2026. MediaAlpha's share price rose 35% in the quarter, producing $58 million of mark-to-market gains, and the investment portfolio excluding MediaAlpha was up 2.8%.

Strategy

White Mountains describes itself as making opportunistic, value-oriented acquisitions in insurance, financial services and related sectors, then operating them and exiting when attractive valuations arise. In 2025 it sold approximately 77.3% of the Bamboo Group for net cash proceeds of $848 million, retained an indirect equity interest valued at $250 million, and recognized a net gain of $816 million. It deployed capital into Distinguished ($225 million), BroadStreet ($150 million), Enterprise Solutions ($58 million), and in 2026 into Basesix ($97 million) and the Hawkeye Electric bolt-on ($35 million). It repurchased 103,816 shares for $217 million in the first six months of 2026, at 93% of June 30, 2026 book value per share, and reports undeployed capital of roughly $0.8 billion.

Risks

• Catastrophe and war losses — Ark's combined ratio included three and five points of catastrophe losses in the second quarter and first six months of 2026, driven primarily by the war in Iran, with ongoing exposure through specialty and marine energy lines.
• Softening property market — The decline in Ark's gross written premiums in the second quarter of 2026 was driven primarily by softening market conditions in property lines, partially offset by growth in specialty lines.
• Tax law change — White Mountains recognized $73 million of net deferred tax expense in 2025 from reversal of the deferred tax asset related to the Bermuda economic transition adjustment after Luxembourg enacted Pillar II legislation.
• Concentration through acquisitions and holdings — Results depend on a limited set of subsidiaries and affiliates, including Ark, HG Global, Kudu, Distinguished and WTM Partners, plus equity interests such as MediaAlpha, whose $58 million quarterly gain was mark-to-market.

Outlook

CEO Liam Caffrey attributed the second quarter of 2026 to strong operating company results and solid investment returns, noting undeployed capital of roughly $0.8 billion after repurchases, deployments and operating company distributions. The company reported continued growth at Kudu, HG Global and Distinguished, and closed two WTM Partners acquisitions in the quarter. Management did not provide forward guidance beyond these comments in the excerpts reviewed.