# White Mountains Insurance Group Ltd: Form 10-Q for the period ended Jun 30, 2024

- Company: [White Mountains Insurance Group Ltd](/companies/wtm.md) (CIK 776867)
- Form: 10-Q
- Filed: 2024-08-07
- Accepted by EDGAR: Aug 7, 2024, 08:48 ET
- Period: 2024-06-30
- Accession: 0000776867-24-000015
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/776867/000077686724000015/wtm-20240630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/776867/000077686724000015/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2024-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2024-04-01 to 2024-06-30 | $395.4m | us-gaap:Revenues |
| Revenue | 6 months, 2024-01-01 to 2024-06-30 | $1.04bn | us-gaap:Revenues |
| Cost of revenue | 3 months, 2024-04-01 to 2024-06-30 | $7.0m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2024-01-01 to 2024-06-30 | $14.6m | us-gaap:CostOfGoodsAndServicesSold |
| Interest expense | 3 months, 2024-04-01 to 2024-06-30 | $14.8m | us-gaap:InterestExpense |
| Interest expense | 6 months, 2024-01-01 to 2024-06-30 | $30.0m | us-gaap:InterestExpense |
| Income tax | 3 months, 2024-04-01 to 2024-06-30 | $6.5m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2024-01-01 to 2024-06-30 | $17.3m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2024-04-01 to 2024-06-30 | −$54.6m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2024-01-01 to 2024-06-30 | $181.8m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2024-04-01 to 2024-06-30 | −$21.24 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2024-01-01 to 2024-06-30 | $70.93 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2024-04-01 to 2024-06-30 | −$21.24 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2024-01-01 to 2024-06-30 | $70.93 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2024-04-01 to 2024-06-30 | 2,531,800 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2024-01-01 to 2024-06-30 | 2,531,500 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2024-01-01 to 2024-06-30 | $253.3m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Dividends paid | 6 months, 2024-01-01 to 2024-06-30 | $2.5m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 6 months, 2024-01-01 to 2024-06-30 | $8.1m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Total assets | at 2024-06-30 | $10.17bn | us-gaap:Assets |
| Total liabilities | at 2024-06-30 | $5.29bn | us-gaap:Liabilities |
| Long-term debt | at 2024-06-30 | $530.2m | us-gaap:LongTermDebt |
| Shareholders' equity | at 2024-06-30 | $4.42bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 129,962 characters.

*The following discussion contains “forward-looking statements.” White Mountains intends statements that are not historical in nature, which are hereby identified as forward-looking statements, to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. White Mountains cannot promise that its expectations in such forward-looking statements will turn out to be correct. White Mountains’s actual results could be materially different from and worse than its expectations. See “***FORWARD-LOOKING STATEMENTS”** *on page 82 for specific important factors that could cause actual results to differ materially from those contained in forward-looking statements.*

*The following discussion also includes ten non-GAAP financial measures: (i) adjusted book value per share, (ii) Kudu’s earnings before interest, taxes, depreciation and amortization (“EBITDA”), (iii) Kudu’s adjusted EBITDA, (iv) Bamboo’s MGA pre-tax income (loss), (v) Bamboo’s MGA net income (loss), (vi) Bamboo’s MGA EBITDA, (vii) Bamboo’s MGA adjusted EBITDA, (viii) total consolidated portfolio returns excluding MediaAlpha, (ix) adjusted capital and (x) debt to total adjusted capital, that have been reconciled from their most comparable GAAP financial measures on page 80. White Mountains believes these measures to be useful in evaluating White Mountains’s financial performance and condition.*

### RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 and 2023

### Overview

White Mountains reported book value per share of $1,722 and adjusted book value per share of $1,777 as of June 30, 2024. Book value per share and adjusted book value per share both decreased 1% in the second quarter of 2024 and increased 4% in the first six months of 2024, including dividends. The decreases in book value per share and adjusted book value per share in the second quarter of 2024 were driven primarily by mark-to-market losses from the decline in MediaAlpha’s share price during the second quarter of 2024, partially offset by solid operating results and investment returns. The increases in book value per share and adjusted book value per share in the first six months of 2024 were driven primarily by solid operating results and investment returns as well as mark-to-market gains from the increase in MediaAlpha’s share price during the first six months of 2024. As of June 30, 2024, White Mountains’s undeployed capital was approximately $650 million.

White Mountains reported book value per share of $1,532 and adjusted book value per share of $1,576 as of June 30, 2023. Book value per share and adjusted book value per share both increased 1% in the second quarter of 2023 and increased 5% and 6% in the first six months of 2024, including dividends. The increases in book value per share and adjusted book value per share were driven primarily by solid operating results and investment returns. Results in the second quarter of 2023 were partially offset by the impact of mark-to-market losses from the decline in MediaAlpha’s share price.

The Ark/WM Outrigger segment’s combined ratio was 87% and 89% in the second quarter and first six months of 2024 compared to 87% and 89% in the second quarter and first six months of 2023. Ark/WM Outrigger reported gross written premiums of $697 million and $1,569 million, net written premiums of $503 million and $1,101 million and net earned premiums of $318 million and $621 million in the second quarter and first six months of 2024 compared to gross written premiums of $606 million and $1,416 million, net written premiums of $461 million and $1,075 million and net earned premiums of $293 million and $548 million in the second quarter and first six months of 2023. Ark/WM Outrigger reported pre-tax income of $59 million and $101 million in the second quarter and first six months of 2024 compared to $52 million and $94 million in the second quarter and first six months of 2023.

Ark’s combined ratio was 89% and 91% in the second quarter and first six months of 2024 compared to 89% and 91% in the second quarter and first six months of 2023. Ark’s combined ratio in the second quarter and first six months of 2024 included minimal catastrophe losses compared to five points and three points of catastrophe losses in the second quarter and first six months of 2023. Ark’s combined ratio in the second quarter and first six months of 2024 included two points and one point of net favorable prior year development, primarily due to property lines of business, compared to four points of net unfavorable prior year development in both the second quarter and first six months of 2023, primarily due to Winter Storm Elliott and three large claims in the property and marine & energy lines of business.

Ark reported gross written premiums of $697 million and $1,569 million, net written premiums of $464 million and $1,028 million and net earned premiums of $311 million and $603 million in the second quarter and first six months of 2024 compared to gross written premiums of $606 million and $1,416 million, net written premiums of $403 million and $973 million and net earned premiums of $284 million and $534 million in the second quarter and first six months of 2023. Ark reported pre-tax income of $50 million and $83 million in the second quarter and first six months of 2024 compared to $42 million and $78 million in the second quarter and first six months of 2023. Ark’s results included net realized and unrealized investment gains of $20 million and $31 million in the second quarter and first six months of 2024 compared to $18 million and $43 million in the second quarter and first six months of 2023.

WM Outrigger Re’s combined ratio was 27% and 30% in the second quarter and first six months of 2024 compared to 25% and 24% in the second quarter and first six months of 2023. Catastrophe losses were minimal for all periods. WM Outrigger Re reported gross and net written premiums of $39 million and $73 million and net earned premiums of $8 million and $18 million in the second quarter and first six months of 2024 compared to gross and net written premiums of $58 million and $102 million and net earned premiums of $10 million and $15 million in the second quarter and first six months of 2023. Gross and net written premiums decreased due to White Mountains’s lower capital commitment to WM Outrigger Re in 2024. WM Outrigger Re reported pre-tax income of $8 million and $18 million in the second quarter and first six months of 2024 compared to $10 million and $16 million in the second quarter and first six months of 2023.

HG Global/BAM reported gross written premiums and MSC collected of $28 million and $50 million in the second quarter and first six months of 2024 compared to $26 million and $47 million in the second quarter and first six months of 2023. Total pricing was 54 and 57 basis points in the second quarter and first six months of 2024 compared to 77 and 75 basis points in the second quarter and first six months of 2023. BAM insured municipal bonds with par value of $5.3 billion and $8.8 billion in the second quarter and first six months of 2024 compared to $3.4 billion and $6.3 billion in the second quarter and first six months of 2023. BAM’s total claims paying resources were $1,525 million as of June 30, 2024 compared to $1,501 million as of December 31, 2023 and $1,451 million as of June 30, 2023. On May 29, 2024, S&P Global Ratings affirmed BAM’s AA rating and Stable outlook.

Kudu reported total revenues of $70 million and $81 million, pre-tax income of $61 million and $63 million and adjusted EBITDA of $12 million and $26 million in the second quarter and first six months of 2024 compared to total revenues of $19 million and $63 million, pre-tax income of $10 million and $45 million and adjusted EBITDA of $12 million and $23 million in the second quarter and first six months of 2023. Kudu’s revenues, pre-tax income and adjusted EBITDA included $16 million and $33 million of net investment income in the second quarter and first six months of 2024 compared to $15 million and $29 million in the second quarter and first six months of 2023. Kudu’s revenues and pre-tax income in the second quarter and first six months of 2024 also included $55 million and $48 million of net realized and unrealized gains compared to $5 million and $34 million of net realized and unrealized gains in the second quarter and first six months of 2023.

Bamboo reported commission and fee revenues of $33 million and $55 million and pre-tax income of $6 million and $7 million for the second quarter and first six months of 2024. Bamboo reported MGA pre-tax income of $6 million and $7 million and MGA adjusted EBITDA of $12 million and $18 million for the second quarter and first six months of 2024. Managed premiums, which represent the total premium placed by Bamboo, were $120 million and $209 million for the second quarter and first six months of 2024 compared to $41 million and $69 million for the second quarter and first six months of 2023 (prior to White Mountains’s ownership of Bamboo). The increase in managed premiums was driven primarily by growth in new business volume as well as a growing renewal book.

On May 10, 2024, MediaAlpha completed a secondary offering of 7.6 million shares at $19.00 per share ($18.24 per share net of underwriting fees). In the secondary offering, White Mountains sold 5.0 million shares for net proceeds of $91 million. Following the completion of the offering, White Mountains owns 17.9 million shares of MediaAlpha, representing a 27% basic ownership interest (25% on a fully-diluted/fully-converted basis). As of June 30, 2024, MediaAlpha’s share price was $13.17 per share, which decreased from $20.37 per share as of March 31, 2024. The carrying value of White Mountains’s investment in MediaAlpha was $235 million as of June 30, 2024 compared to $466 million at March 31, 2024. The $231 million decline in MediaAlpha’s carrying value resulted from $139 million of net realized and unrealized losses in the quarter and $91 million of net proceeds received from the secondary offering. At White Mountains’s current level of ownership, each $1.00 per share increase or decrease in the share price of MediaAlpha will result in an approximate $7.00 per share increase or decrease in White Mountains’s book value per share and adjusted book value per share.

White Mountains’s total consolidated portfolio return on invested assets was -0.1% in the second quarter of 2024, which included $139 million of net realized and unrealized investment losses from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 2.2% in the second quarter of 2024, driven primarily by net realized and unrealized investment gains from other-long term investments and net investment income from the fixed income and other long-term investments portfolios. White Mountains’s total consolidated portfolio return on invested assets was 0.9% in the second quarter of 2023, which included $77 million of unrealized investment losses from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 3.0% in the second quarter of 2023, driven primarily by net unrealized investment gains from other long-term investments, net realized and unrealized investment gains from common equity securities and net investment income from the fixed income portfolio.

White Mountains’s total consolidated portfolio return on invested assets was 4.5% in the first six months of 2024, which included $72 million of net realized and unrealized investment gains from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 3.5% in the first six months of 2024, driven primarily by net realized and unrealized investment gains from other-long term investments, net investment income from the fixed income portfolio and unrealized investment gains from common equity securities. White Mountains’s total consolidated portfolio return on invested assets was 5.5% in the first six months of 2023, which included $8 million of unrealized investment gains from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 6.1% in the first six months of 2023, driven primarily by net realized and unrealized investment gains from other long-term investments and common equity securities, as well as net investment income from the fixed income portfolio.

### Adjusted Book Value Per Share

The following table presents White Mountains’s book value per share and reconciles it to adjusted book value per share, a non-GAAP measure as of June 30, 2024, March 31, 2024, December 31, 2023 and June 30, 2023. See **NON-GAAP FINANCIAL MEASURES** on page 80.

| Book value per share numerators (in millions): | June 30, 2024 | March 31, 2024 | December 31, 2023 | June 30, 2023 |
| --- | ---: | ---: | ---: | ---: |
| White Mountains’s common shareholders’ equity - GAAP book value per share numerator | **$4,422.6** | $4,470.4 | $4,240.5 | $3,922.2 |
| HG Global’s unearned premium reserve (1) | **271.7** | 267.7 | 265.4 | 246.8 |
| HG Global’s net deferred acquisition costs (1) | **(78.5)** | (77.3) | (76.5) | (70.7) |
| Time value of money discount on expected future payments on the BAM Surplus Notes (1) | **(84.7)** | (86.3) | (87.9) | (91.8) |
| Adjusted book value per share numerator | **$4,531.1** | $4,574.5 | $4,341.5 | $4,006.5 |
| **Book value per share denominators (in thousands of shares):** |  |  |  |  |
| Common shares outstanding - GAAP book value per share denominator | **2,568.3** | 2,565.7 | 2,560.5 | 2,560.5 |
| Unearned restricted common shares | **(18.3)** | (20.3) | (12.4) | (19.1) |
| Adjusted book value per share denominator | **2,550.0** | 2,545.4 | 2,548.1 | 2,541.4 |
| GAAP book value per share | **$1,722.02** | $1,742.33 | $1,656.14 | $1,531.84 |
| Adjusted book value per share | **$1,776.89** | $1,797.17 | $1,703.82 | $1,576.46 |
| Year-to-date dividends paid per share | **$1.00** | $1.00 | $1.00 | $1.00 |

(1) Amount reflects White Mountains’s preferred share ownership in HG Global of 96.9%.

### Goodwill and Other Intangible Assets

The following table presents goodwill and other intangible assets that are included in White Mountains’s adjusted book value as of June 30, 2024, March 31, 2024, December 31, 2023 and June 30, 2023:

| Millions Goodwill: | June 30, 2024 | March 31, 2024 | December 31, 2023 | June 30, 2023 |
| --- | ---: | ---: | ---: | ---: |
| Ark | **$116.8** | $116.8 | $116.8 | $116.8 |
| Kudu | **7.6** | 7.6 | 7.6 | 7.6 |
| Bamboo (1) | **270.4** | 270.4 | — | — |
| Other Operations | **44.4** | 44.4 | 44.4 | 44.4 |
| Total goodwill | **439.2** | 439.2 | 168.8 | 168.8 |
| **Other intangible assets:** |  |  |  |  |
| Ark | **175.7** | 175.7 | 175.7 | 175.7 |
| Kudu | **.5** | .6 | .7 | .8 |
| Bamboo (1) | **92.6** | 96.8 | — | — |
| Other Operations | **23.0** | 24.3 | 25.4 | 28.3 |
| Total other intangible assets | **291.8** | 297.4 | 201.8 | 204.8 |
| Total goodwill and other intangible assets (2) | **731.0** | 736.6 | 370.6 | 373.6 |
| Goodwill and other intangible assets attributed to noncontrolling interests | **(193.2)** | (194.9) | (94.9) | (95.4) |
| **Goodwill and other intangible assets included in White Mountains’s common shareholders’ equity** | **$537.8** | $541.7 | $275.7 | $278.2 |

(1) The relative fair values of goodwill and of other intangible assets recognized in connection with the acquisition of Bamboo had not yet been finalized at

June 30, 2024. See “**Bamboo Transaction”** in **Note 2 — “Significant Transactions”** on page 11.

(2) See **Note 4 — “Goodwill and Other Intangible Assets”** on page 25 for details of other intangible assets.

### Summary of Consolidated Results

The following table presents White Mountains’s consolidated financial results for the three and six months ended June 30, 2024 and 2023:

| Millions Revenues | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| P&C Insurance and Reinsurance revenues | **$363.3** | $323.0 | **$700.1** | $610.5 |
| Financial Guarantee revenues | **15.7** | 5.9 | **23.6** | 38.6 |
| Asset Management revenues | **70.2** | 19.3 | **80.9** | 63.1 |
| P&C Insurance Distribution revenues | **42.0** | — | **73.1** | — |
| Other Operations revenues | **(95.8)** | 30.2 | **165.0** | 198.1 |
| Total revenues | **395.4** | 378.4 | **1,042.7** | 910.3 |
| **Expenses** |  |  |  |  |
| P&C Insurance and Reinsurance expenses | **304.8** | 271.2 | **598.7** | 516.6 |
| Financial Guarantee expenses | **23.5** | 18.9 | **46.5** | 43.4 |
| Asset Management expenses | **8.9** | 9.3 | **17.9** | 17.8 |
| P&C Insurance Distribution expenses | **35.6** | — | **65.8** | — |
| Other Operations expenses | **57.3** | 61.6 | **115.9** | 116.0 |
| Total expenses | **430.1** | 361.0 | **844.8** | 693.8 |
| **Pre-tax income (loss)** |  |  |  |  |
| P&C Insurance and Reinsurance pre-tax income (loss) | **58.5** | 51.8 | **101.4** | 93.9 |
| Financial Guarantee pre-tax income (loss) | **(7.8)** | (13.0) | **(22.9)** | (4.8) |
| Asset Management pre-tax income (loss) | **61.3** | 10.0 | **63.0** | 45.3 |
| P&C Insurance Distribution pre-tax income (loss) | **6.4** | — | **7.3** | — |
| Other Operations pre-tax income (loss) | **(153.1)** | (31.4) | **49.1** | 82.1 |
| **Pre-tax income (loss)** | **(34.7)** | 17.4 | **197.9** | 216.5 |
| Income tax (expense) benefit | **(6.5)** | (.2) | **(17.3)** | (12.1) |
| **Net income (loss)** | **(41.2)** | 17.2 | **180.6** | 204.4 |
| Net (income) loss attributable to noncontrolling interests | **(13.4)** | 2.4 | **1.2** | (5.3) |
| **Net income (loss) attributable to White Mountains’s common shareholders** | **(54.6)** | 19.6 | **181.8** | 199.1 |
| Other comprehensive income (loss), net of tax | **.1** | 1.4 | **(.2)** | 2.6 |
| **Comprehensive income (loss)** | **(54.5)** | 21.0 | **181.6** | 201.7 |
| Other comprehensive (income) loss attributable to noncontrolling interests | **(.1)** | (.4) | **—** | (.8) |
| **Comprehensive income (loss) attributable to White Mountains’s common shareholders** | **$(54.6)** | $20.6 | **$181.6** | $200.9 |

51

### I. SUMMARY OF OPERATIONS BY SEGMENT

As of June 30, 2024, White Mountains conducted its operations through four segments: (1) Ark/WM Outrigger, (2) HG Global/BAM, (3) Kudu and (4) Bamboo, with its remaining operating businesses, holding companies and other assets included in Other Operations. White Mountains has made its segment determination based on consideration of the following criteria: (i) the nature of the business activities of each of the Company’s subsidiaries and affiliates; (ii) the manner in which the Company’s subsidiaries and affiliates are organized; (iii) the existence of primary managers responsible for specific subsidiaries and affiliates; and (iv) the organization of information provided to the Company’s chief operating decision makers and its Board of Directors. Significant intercompany transactions among White Mountains’s segments have been eliminated herein. White Mountains’s segment information is presented in **Note 14 — “Segment Information”** to the Consolidated Financial Statements.

As a result of the Bamboo Transaction, White Mountains began consolidating Bamboo in its financial statements as of January 2, 2024. See **Note 2 - “Significant Transaction”.**

### Ark/WM Outrigger

The following tables present the components of pre-tax income (loss) included in the Ark/WM Outrigger segment for the three and six months ended June 30, 2024 and 2023:

| Millions | Three Months Ended June 30, 2024 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | **$339.4** | **$—** | **$—** | **$339.4** |
| Assumed written premiums | **357.6** | **38.9** | **(38.9)** | **357.6** |
| Gross written premiums | **697.0** | **38.9** | **(38.9)** | **697.0** |
| Ceded written premiums | **(233.1)** | **—** | **38.9** | **(194.2)** |
| Net written premiums | **$463.9** | **$38.9** | **$—** | **$502.8** |
| Earned insurance premiums | **$310.8** | **$7.5** | **$—** | **$318.3** |
| Net investment income | **19.3** | **3.0** | **—** | **22.3** |
| Net realized and unrealized investment gains (losses) | **20.3** | **—** | **—** | **20.3** |
| Other revenues | **2.4** | **—** | **—** | **2.4** |
| Total revenues | **352.8** | **10.5** | **—** | **363.3** |
| Loss and loss adjustment expenses | **176.0** | **(.3)** | **—** | **175.7** |
| Acquisition expenses | **65.9** | **2.3** | **—** | **68.2** |
| General and administrative expenses - other underwriting | **33.1** | **—** | **—** | **33.1** |
| General and administrative expenses - all other | **9.7** | **.1** | **—** | **9.8** |
| Change in fair value of contingent consideration | **13.3** | **—** | **—** | **13.3** |
| Interest expense | **4.7** | **—** | **—** | **4.7** |
| Total expenses | **302.7** | **2.1** | **—** | **304.8** |
| **Pre-tax income (loss)** | **$50.1** | **$8.4** | **$—** | **$58.5** |

52

| Millions | Three Months Ended June 30, 2023 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | $291.5 | $— | $— | $291.5 |
| Assumed written premiums | 314.6 | 58.3 | (58.3) | 314.6 |
| Gross written premiums | 606.1 | 58.3 | (58.3) | 606.1 |
| Ceded written premiums | (203.2) | — | 58.3 | (144.9) |
| Net written premiums | $402.9 | $58.3 | $— | $461.2 |
| Earned insurance premiums | $283.7 | $9.6 | $— | $293.3 |
| Net investment income | 11.2 | 2.5 | — | 13.7 |
| Net realized and unrealized investment gains (losses) | 18.0 | — | — | 18.0 |
| Other revenues | (2.0) | — | — | (2.0) |
| Total revenues | 310.9 | 12.1 | — | 323.0 |
| Loss and loss adjustment expenses | 167.1 | .4 | — | 167.5 |
| Acquisition expenses | 59.4 | 2.0 | — | 61.4 |
| General and administrative expenses - other underwriting | 25.5 | — | — | 25.5 |
| General and administrative expenses - all other | 9.4 | — | — | 9.4 |
| Change in fair value of contingent consideration | 2.2 | — | — | 2.2 |
| Interest expense | 5.2 | — | — | 5.2 |
| Total expenses | 268.8 | 2.4 | — | 271.2 |
| **Pre-tax income (loss)** | $42.1 | $9.7 | $— | $51.8 |

| Millions | Six Months Ended June 30, 2024 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | **$624.4** | **$—** | **$—** | **$624.4** |
| Assumed written premiums | **944.7** | **73.2** | **(73.2)** | **944.7** |
| Gross written premiums | **1,569.1** | **73.2** | **(73.2)** | **1,569.1** |
| Ceded written premiums | **(541.5)** | **—** | **73.2** | **(468.3)** |
| Net written premiums | **$1,027.6** | **$73.2** | **$—** | **$1,100.8** |
| Earned insurance premiums | **$603.3** | **$17.8** | **$—** | **$621.1** |
| Net investment income | **36.3** | **5.9** | **—** | **42.2** |
| Net realized and unrealized investment gains (losses) | **30.9** | **—** | **—** | **30.9** |
| Other revenues | **5.9** | **—** | **—** | **5.9** |
| Total revenues | **676.4** | **23.7** | **—** | **700.1** |
| Loss and loss adjustment expenses | **355.3** | **.4** | **—** | **355.7** |
| Acquisition expenses | **129.6** | **4.9** | **—** | **134.5** |
| General and administrative expenses - other underwriting | **63.6** | **—** | **—** | **63.6** |
| General and administrative expenses - all other | **21.4** | **.1** | **—** | **21.5** |
| Change in fair value of contingent consideration | **13.3** | **—** | **—** | **13.3** |
| Interest expense | **10.1** | **—** | **—** | **10.1** |
| Total expenses | **593.3** | **5.4** | **—** | **598.7** |
| **Pre-tax income (loss)** | **$83.1** | **$18.3** | **$—** | **$101.4** |

53

| Millions | Six Months Ended June 30, 2023 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | $537.7 | $— | $— | $537.7 |
| Assumed written premiums | 877.8 | 102.4 | (102.4) | 877.8 |
| Gross written premiums | 1,415.5 | 102.4 | (102.4) | 1,415.5 |
| Ceded written premiums | (442.5) | — | 102.4 | (340.1) |
| Net written premiums | $973.0 | $102.4 | $— | $1,075.4 |
| Earned insurance premiums | $533.6 | $14.8 | $— | $548.4 |
| Net investment income | 19.6 | 4.7 | — | 24.3 |
| Net realized and unrealized investment gains (losses) | 42.5 | — | — | 42.5 |
| Other revenues | (4.7) | — | — | (4.7) |
| Total revenues | 591.0 | 19.5 | — | 610.5 |
| Loss and loss adjustment expenses | 314.7 | .6 | — | 315.3 |
| Acquisition expenses | 118.3 | 2.9 | — | 121.2 |
| General and administrative expenses - other underwriting | 53.0 | — | — | 53.0 |
| General and administrative expenses - all other | 17.0 | .1 | — | 17.1 |
| Change in fair value of contingent consideration | (.2) | — | — | (.2) |
| Interest expense | 10.2 | — | — | 10.2 |
| Total expenses | 513.0 | 3.6 | — | 516.6 |
| **Pre-tax income (loss)** | $78.0 | $15.9 | $— | $93.9 |

### Ark/WM Outrigger Results—Three Months Ended June 30, 2024 versus Three Months Ended June 30, 2023

The Ark/WM Outrigger segment’s combined ratio was 87% in the second quarter of both 2024 and 2023. The Ark/WM Outrigger segment reported gross written premiums of $697 million, net written premiums of $503 million and net earned premiums of $318 million in the second quarter of 2024 compared to gross written premiums of $606 million, net written premiums of $461 million and net earned premiums of $293 million in the second quarter of 2023. The Ark/WM Outrigger segment reported pre-tax income of $59 million in the second quarter of 2024 compared to $52 million in the second quarter of 2023.

Ark’s combined ratio was 89% in the second quarter of both 2024 and 2023. Ark’s combined ratio in the second quarter of 2024 included minimal catastrophe losses compared to 5 points of catastrophe losses in the second quarter of 2023. Non-catastrophe losses in the second quarter of 2024 included $19 million related to a political risk claim, $14 million related to tornado damage in Oklahoma and $13 million related to two satellite losses, all on a net basis. Ark’s combined ratio in the second quarter of 2024 included two points of net favorable prior year development, primarily due to property lines of business, compared to four points of net unfavorable prior year development in the second quarter of 2023, primarily due to three large claims in the property and marine & energy lines of business.

Ark reported gross written premiums of $697 million, net written premiums of $464 million and net earned premiums of $311 million in the second quarter of 2024 compared to gross written premiums of $606 million, net written premiums of $403 million and net earned premiums of $284 million in the second quarter of 2023. Ark reported pre-tax income of $50 million in the second quarter of 2024 compared to $42 million in the second quarter of 2023. Ark’s results included net realized and unrealized investment gains of $20 million in the second quarter of 2024, driven primarily by net realized and unrealized investment gains from common equity securities, compared to $18 million in the second quarter of 2023, driven primarily by net unrealized investment gains from other long-term investments. Ark’s results also included $13 million for the increase in the fair value of its contingent consideration liability in the second quarter of 2024 compared to $2 million in the second quarter of 2023.

WM Outrigger Re’s combined ratio was 27% in the second quarter of 2024 compared to 25% in the second quarter of 2023. Catastrophe losses were minimal in both periods. In the second quarter of 2024, WM Outrigger Re’s combined ratio was 35% for underwriting year 2024 and (17)% for underwriting year 2023. WM Outrigger Re reported gross and net written premiums of $39 million and net earned premiums of $8 million in the second quarter of 2024 compared to $58 million and $10 million in the second quarter of 2023. Gross and net written premiums decreased due to White Mountains’s lower capital commitment to WM Outrigger Re in 2024. WM Outrigger Re reported pre-tax income of $8 million in the second quarter of 2024, of which $7 million was attributable to underwriting year 2024 and $1 million to underwriting year 2023, compared to $10 million in the second quarter of 2023.

*$ in Millions*

| Insurance premiums: | Three Months Ended June 30, 2024 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Gross written premiums | **$697.0** | **$38.9** | **$(38.9)** | **$697.0** |
| Net written premiums | **$463.9** | **$38.9** | **$—** | **$502.8** |
| Net earned premiums | **$310.8** | **$7.5** | **$—** | **$318.3** |
| Insurance expenses: |  |  |  |  |
| Loss and loss adjustment expenses | **$176.0** | **$(.3)** | **$—** | **$175.7** |
| Acquisition expenses | **65.9** | **2.3** | **—** | **68.2** |
| Other underwriting expenses (1) | **33.1** | **—** | **—** | **33.1** |
| Total insurance expenses | **$275.0** | **$2.0** | **$—** | **$277.0** |
| Insurance ratios: |  |  |  |  |
| Loss and loss adjustment expense | **56.6%** | **(4.0)%** | **—%** | **55.2%** |
| Acquisition expense | **21.2** | **30.7** | **—** | **21.4** |
| Other underwriting expense | **10.7** | **—** | **—** | **10.4** |
| Combined Ratio | **88.5%** | **26.7%** | **—%** | **87.0%** |

(1) Included within general and administrative expenses in the consolidated statement of operations.

*$ in Millions*

| Insurance premiums: | Three Months Ended June 30, 2023 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Gross written premiums | $606.1 | $58.3 | $(58.3) | $606.1 |
| Net written premiums | $402.9 | $58.3 | $— | $461.2 |
| Net earned premiums | $283.7 | $9.6 | $— | $293.3 |
| Insurance expenses: |  |  |  |  |
| Loss and loss adjustment expenses | $167.1 | $.4 | $— | $167.5 |
| Acquisition expenses | 59.4 | 2.0 | — | 61.4 |
| Other underwriting expenses (1) | 25.5 | — | — | 25.5 |
| Total insurance expenses | $252.0 | $2.4 | $— | $254.4 |
| Insurance ratios: |  |  |  |  |
| Loss and loss adjustment expense | 58.9% | 4.2% | —% | 57.1% |
| Acquisition expense | 20.9 | 20.8 | — | 20.9 |
| Other underwriting expense | 9.0 | — | — | 8.7 |
| Combined Ratio | 88.8% | 25.0% | —% | 86.7% |

(1) Included within general and administrative expenses in the consolidated statement of operations.

The following table presents WM Outrigger Re’s insurance premiums, combined ratio and pre-tax income by underwriting year for the three months ended June 30, 2024 and 2023:

*$ in Millions*

| Insurance premiums: | Three Months Ended June 30, 2024 2024 Underwriting Year | 2023 Underwriting Year | Total | 2023 2023 Underwriting Year |
| --- | ---: | ---: | ---: | ---: |
| Gross written premiums | **$39.1** | **$(.2)** | **$38.9** | $58.3 |
| Net written premiums | **$39.1** | **$(.2)** | **$38.9** | $58.3 |
| Net earned premiums | **$6.2** | **$1.3** | **$7.5** | $9.6 |
| Combined Ratio | **34.7%** | **(16.6)%** | **26.7%** | 25.0% |
| Pre-tax income | **$7.0** | **$1.4** | **$8.4** | $9.7 |

#### Gross Written Premiums

Gross written premiums increased 15% to $697 million in the second quarter of 2024 compared to $606 million in the second quarter of 2023, with risk adjusted rate change flat year-over-year. The increase in gross written premiums was driven primarily by the property, marine & energy and specialty lines of business. Growth in the marine & energy and accident & health lines of business was aided by the addition of new teams in London. The risk adjusted rate change on the Outrigger Re Ltd. portfolio of global property reinsurance was (5)% in the second quarter of 2024. The following table presents the Ark/WM Outrigger segment’s gross written premiums by line of business for the three months ended June 30, 2024 and 2023:

| Millions | Three Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Property | **$429.9** | $405.8 |
| Marine & Energy | **111.5** | 88.5 |
| Specialty | **98.1** | 74.2 |
| Casualty | **30.6** | 26.7 |
| Accident & Health | **26.9** | 10.9 |
| Total Gross Written Premiums | **$697.0** | $606.1 |

### Ark/WM Outrigger Results—Six Months Ended June 30, 2024 versus Six Months Ended June 30, 2023

The Ark/WM Outrigger segment’s combined ratio was 89% in the first six months of both 2024 and 2023. The Ark/WM Outrigger segment reported gross written premiums of $1,569 million, net written premiums of $1,101 million and net earned premiums of $621 million in the first six months of 2024 compared to gross written premiums of $1,416 million, net written premiums of $1,075 million and net earned premiums of $548 million in the first six months of 2023. The Ark/WM Outrigger segment reported pre-tax income of $101 million in the first six months of 2024 compared to $94 million in the first six months of 2023.

Ark’s combined ratio was 91% in the first six months of both 2024 and 2023. Ark’s combined ratio in the first six months of 2024 included minimal catastrophe losses compared to three points of catastrophe losses in the first six months of 2023. Non-catastrophe losses in the first six months of 2024 included $29 million related to three satellite losses, $19 million related to a political risk claim, $15 million related to the collapse of the Francis Scott Key Bridge in Baltimore and $14 million related to tornado damage in Oklahoma, all on a net basis. Ark’s combined ratio in the first six months of 2024 included one point of net favorable prior year development, primarily due to property lines of business, compared to four points of net unfavorable prior year development in the first six months of 2023, primarily due to Winter Storm Elliott and three large claims in the property and marine & energy lines of business.

Ark reported gross written premiums of $1,569 million, net written premiums of $1,028 million and net earned premiums of $603 million in the first six months of 2024 compared to gross written premiums of $1,416 million, net written premiums of $973 million and net earned premiums of $534 million in the first six months of 2023.

Ark reported pre-tax income of $83 million in the first six months of 2024 compared to $78 million in the first six months of 2023. Ark’s results included net realized and unrealized investment gains of $31 million in the first six months of 2024, driven primarily by net unrealized investment gains from common equity securities, compared to $43 million in the first six months of 2023, driven primarily by net unrealized investment gains from other long-term investments and common equity securities. Ark’s results also included $13 million for the increase in the fair value of its contingent consideration liability in the first six months of 2024 compared to a slight decrease in the first six months of 2023.

WM Outrigger Re’s combined ratio was 30% in the first six months of 2024 compared to 24% in the first six months of 2023. Catastrophe losses were minimal in both periods. In the first six months of 2024, WM Outrigger Re’s combined ratio was 31% for underwriting year 2024 and 29% for underwriting year 2023. WM Outrigger Re reported gross and net written premiums of $73 million and net earned premiums of $18 million in the first six months of 2024 compared to gross and net written premiums of $102 million and net earned premiums of $15 million in the first six months of 2023. Gross and net written premiums decreased due to White Mountains’s lower capital commitment to WM Outrigger Re in 2024. WM Outrigger Re reported pre-tax income of $18 million in the first six months of 2024, of which $14 million was attributable to underwriting year 2024 and $4 million to underwriting year 2023, compared to $16 million in the first six months of 2023.

The following tables present the Ark/WM Outrigger segment’s insurance premiums, insurance expenses and insurance ratios for the six months ended June 30, 2024 and 2023:

*$ in Millions*

| Insurance premiums: | Six Months Ended June 30, 2024 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Gross written premiums | **$1,569.1** | **$73.2** | **$(73.2)** | **$1,569.1** |
| Net written premiums | **$1,027.6** | **$73.2** | **$—** | **$1,100.8** |
| Net earned premiums | **$603.3** | **$17.8** | **$—** | **$621.1** |
| Insurance expenses: |  |  |  |  |
| Loss and loss adjustment expenses | **$355.3** | **$.4** | **$—** | **$355.7** |
| Acquisition expenses | **129.6** | **4.9** | **—** | **134.5** |
| Other underwriting expenses (1) | **63.6** | **—** | **—** | **63.6** |
| Total insurance expenses | **$548.5** | **$5.3** | **$—** | **$553.8** |
| Insurance ratios: |  |  |  |  |
| Loss and loss adjustment expense | **58.9%** | **2.3%** | **—%** | **57.3%** |
| Acquisition expense | **21.5** | **27.5** | **—** | **21.7** |
| Other underwriting expense | **10.5** | **—** | **—** | **10.2** |
| Combined Ratio | **90.9%** | **29.8%** | **—%** | **89.2%** |

(1) Included within general and administrative expenses in the consolidated statement of operations.

*$ in Millions*

| Insurance premiums: | Six Months Ended June 30, 2023 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Gross written premiums | $1,415.5 | $102.4 | $(102.4) | $1,415.5 |
| Net written premiums | $973.0 | $102.4 | $— | $1,075.4 |
| Net earned premiums | $533.6 | $14.8 | $— | $548.4 |
| Insurance expenses: |  |  |  |  |
| Loss and loss adjustment expenses | $314.7 | $.6 | $— | $315.3 |
| Acquisition expenses | 118.3 | 2.9 | — | 121.2 |
| Other underwriting expenses (1) | 53.0 | — | — | 53.0 |
| Total insurance expenses | $486.0 | $3.5 | $— | $489.5 |
| Insurance ratios: |  |  |  |  |
| Loss and loss adjustment expense | 59.0% | 4.1% | —% | 57.5% |
| Acquisition expense | 22.2 | 19.6 | — | 22.1 |
| Other underwriting expense | 9.9 | — | — | 9.7 |
| Combined Ratio | 91.1% | 23.7% | —% | 89.3% |

(1) Included within general and administrative expenses in the consolidated statement of operations.

The following table presents WM Outrigger Re’s insurance premiums, combined ratio and pre-tax income by underwriting year for the six months ended June 30, 2024 and 2023:

*$ in Millions*

| Insurance premiums: | Six Months Ended June 30, 2024 2024 Underwriting Year | 2023 Underwriting Year | Total | 2023 2023 Underwriting Year |
| --- | ---: | ---: | ---: | ---: |
| Gross written premiums | **$73.2** | **$—** | **$73.2** | $102.4 |
| Net written premiums | **$73.2** | **$—** | **$73.2** | $102.4 |
| Net earned premiums | **$12.2** | **$5.6** | **$17.8** | $14.8 |
| Combined Ratio | **30.5%** | **28.5%** | **29.8%** | 23.7% |
| Pre-tax income | **$14.3** | **$4.0** | **$18.3** | $15.9 |

58

#### Gross Written Premiums

Gross written premiums increased 11% to $1,569 million in the first six months of 2024 compared to $1,416 million in the first six months of 2023, with risk adjusted rate change up approximately 2% year-over-year. The increase in gross written premiums was driven primarily by the property, marine & energy and accident & health lines of business, partially offset by a decrease in certain specialty lines. Growth in the marine & energy and accident & health lines of business was aided by the addition of new teams in London. The risk adjusted rate change on the Outrigger Re Ltd. portfolio of global property reinsurance was (2)% in the first six months of 2024. The following table presents the Ark/WM Outrigger segment’s gross written premiums by line of business for the six months ended June 30, 2024 and 2023:

| Millions | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Property | **$756.7** | $685.6 |
| Marine & Energy | **340.5** | 283.3 |
| Specialty | **332.2** | 342.7 |
| Accident & Health | **74.6** | 47.0 |
| Casualty | **65.1** | 56.9 |
| Total Gross Written Premiums | **$1,569.1** | $1,415.5 |

### Ark/WM Outrigger Balance Sheets

The following tables present amounts from Ark and WM Outrigger Re that are contained within White Mountains’s consolidated balance sheet as of June 30, 2024 and December 31, 2023:

| Millions Assets | June 30, 2024 Ark | WM Outrigger Re | Eliminations and Segment Adjustments | Total |
| --- | ---: | ---: | ---: | ---: |
| Fixed maturity investments, at fair value | **$1,005.6** | **$—** | **$—** | **$1,005.6** |
| Common equity securities, at fair value | **422.3** | **—** | **—** | **422.3** |
| Short-term investments, at fair value | **665.8** | **238.6** | **—** | **904.4** |
| Other long-term investments | **491.3** | **—** | **—** | **491.3** |
| Total investments | **2,585.0** | **238.6** | **—** | **2,823.6** |
| Cash | **156.1** | **.2** | **—** | **156.3** |
| Reinsurance recoverables | **940.1** | **—** | **(76.3)** | **863.8** |
| Insurance premiums receivable | **1,175.4** | **49.0** | **(49.0)** | **1,175.4** |
| Deferred acquisition costs | **233.7** | **11.6** | **—** | **245.3** |
| Goodwill and other intangible assets | **292.5** | **—** | **—** | **292.5** |
| Other assets | **146.9** | **.1** | **—** | **147.0** |
| Total assets | **$5,529.7** | **$299.5** | **$(125.3)** | **$5,703.9** |
| **Liabilities** |  |  |  |  |
| Loss and loss adjustment expense reserves | **$1,890.1** | **$15.2** | **$(15.2)** | **$1,890.1** |
| Unearned insurance premiums | **1,526.1** | **61.1** | **(61.1)** | **1,526.1** |
| Debt | **155.0** | **—** | **—** | **155.0** |
| Reinsurance payable | **416.3** | **—** | **(49.0)** | **367.3** |
| Contingent consideration | **107.3** | **—** | **—** | **107.3** |
| Other liabilities | **157.2** | **—** | **—** | **157.2** |
| Total liabilities | **4,252.0** | **76.3** | **(125.3)** | **4,203.0** |
| **Equity** |  |  |  |  |
| White Mountains’s common shareholders’ equity | **923.5** | **223.2** | **—** | **1,146.7** |
| Noncontrolling interests | **354.2** | **—** | **—** | **354.2** |
| **Total equity** | **1,277.7** | **223.2** | **—** | **1,500.9** |
| **Total liabilities and equity** | **$5,529.7** | **$299.5** | **$(125.3)** | **$5,703.9** |

59

| Millions Assets | December 31, 2023 Ark | WM Outrigger Re | Eliminations and Segment Adjustments | Total |
| --- | ---: | ---: | ---: | ---: |
| Fixed maturity investments, at fair value | $866.8 | $— | $— | $866.8 |
| Common equity securities, at fair value | 400.6 | — | — | 400.6 |
| Short-term investments, at fair value | 697.5 | 265.3 | — | 962.8 |
| Other long-term investments | 440.9 | — | — | 440.9 |
| Total investments | 2,405.8 | 265.3 | — | 2,671.1 |
| Cash | 90.2 | .3 | — | 90.5 |
| Reinsurance recoverables | 463.3 | — | (21.3) | 442.0 |
| Insurance premiums receivable | 612.2 | 27.7 | (27.7) | 612.2 |
| Deferred acquisition costs | 144.3 | 1.0 | — | 145.3 |
| Goodwill and other intangible assets | 292.5 | — | — | 292.5 |
| Other assets | 125.0 | — | — | 125.0 |
| Total assets | $4,133.3 | $294.3 | $(49.0) | $4,378.6 |
| **Liabilities** |  |  |  |  |
| Loss and loss adjustment expense reserves | $1,605.1 | $15.6 | $(15.6) | $1,605.1 |
| Unearned insurance premiums | 743.6 | 5.7 | (5.7) | 743.6 |
| Debt | 185.5 | — | — | 185.5 |
| Reinsurance payable | 108.8 | — | (27.7) | 81.1 |
| Contingent consideration | 94.0 | — | — | 94.0 |
| Other liabilities | 166.8 | — | — | 166.8 |
| Total liabilities | 2,903.8 | 21.3 | (49.0) | 2,876.1 |
| **Equity** |  |  |  |  |
| White Mountains’s common shareholders’ equity | 892.6 | 273.0 | — | 1,165.6 |
| Noncontrolling interests | 336.9 | — | — | 336.9 |
| **Total equity** | 1,229.5 | 273.0 | — | 1,502.5 |
| **Total liabilities and equity** | $4,133.3 | $294.3 | $(49.0) | $4,378.6 |

60

### HG Global/BAM

The following tables present the components of pre-tax income (loss) included in the HG Global/BAM segment related to the consolidation of HG Global, which includes HG Re and its other wholly-owned subsidiaries, and BAM for the three and six months ended June 30, 2024 and 2023:

| Millions | Three Months Ended June 30, 2024 HG Global | BAM | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | **$—** | **$13.6** | **$—** | **$13.6** |
| Assumed written premiums | **11.6** | **—** | **(11.6)** | **—** |
| Gross written premiums | **11.6** | **13.6** | **(11.6)** | **13.6** |
| Ceded written premiums | **—** | **(11.6)** | **11.6** | **—** |
| Net written premiums | **$11.6** | **$2.0** | **$—** | **$13.6** |
| Earned insurance premiums | **$7.5** | **$1.5** | **$—** | **$9.0** |
| Net investment income | **5.9** | **4.5** | **—** | **10.4** |
| Net investment income - BAM Surplus Notes | **6.6** | **—** | **(6.6)** | **—** |
| Net realized and unrealized investment gains (losses) | **(2.0)** | **(2.3)** | **—** | **(4.3)** |
| Other revenues | **—** | **.6** | **—** | **.6** |
| Total revenues | **18.0** | **4.3** | **(6.6)** | **15.7** |
| Acquisition expenses | **2.2** | **—** | **—** | **2.2** |
| General and administrative expenses (1) | **.3** | **16.6** | **—** | **16.9** |
| Interest expense (2) | **4.4** | **—** | **—** | **4.4** |
| Interest expense - BAM Surplus Notes | **—** | **6.6** | **(6.6)** | **—** |
| Total expenses | **6.9** | **23.2** | **(6.6)** | **23.5** |
| **Pre-tax income (loss)** | **$11.1** | **$(18.9)** | **$—** | **$(7.8)** |
| **Supplemental information:** |  |  |  |  |
| MSC collected (3) | **$—** | **$14.6** | **$—** | **$14.6** |

(1) Amount includes $(0.3) of intercompany general and administrative expenses that are eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s intercompany general and administrative expenses included within the HG Global/BAM segment are eliminated against the offsetting intercompany general and administrative expenses included within Other Operations.

(2) Amount includes $0.3 of intercompany interest expense that is eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s intercompany interest expense included within the HG Global/BAM segment is eliminated against the offsetting intercompany interest income included within Other Operations.

(3) MSC collected are recorded directly to BAM’s equity, which is recorded as noncontrolling interest on White Mountains’s balance sheet.

| Millions | Three Months Ended June 30, 2023 HG Global | BAM | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | $— | $11.6 | $— | $11.6 |
| Assumed written premiums | 10.0 | — | (10.0) | — |
| Gross written premiums | 10.0 | 11.6 | (10.0) | 11.6 |
| Ceded written premiums | — | (10.0) | 10.0 | — |
| Net written premiums | $10.0 | $1.6 | $— | $11.6 |
| Earned insurance premiums | $6.4 | $1.3 | $— | $7.7 |
| Net investment income | 4.1 | 3.5 | — | 7.6 |
| Net investment income - BAM Surplus Notes | 6.5 | — | (6.5) | — |
| Net realized and unrealized investment gains (losses) | (5.7) | (4.2) | — | (9.9) |
| Other revenues | — | .5 | — | .5 |
| Total revenues | 11.3 | 1.1 | (6.5) | 5.9 |
| Acquisition expenses | 1.8 | (.3) | — | 1.5 |
| General and administrative expenses | .3 | 14.6 | — | 14.9 |
| Interest expense (1) | 2.7 | — | — | 2.7 |
| Interest expense - BAM Surplus Notes | — | 6.5 | (6.5) | — |
| Total expenses | 4.8 | 20.8 | (6.5) | 19.1 |
| **Pre-tax income (loss)** | $6.5 | $(19.7) | $— | $(13.2) |
| **Supplemental information:** |  |  |  |  |
| MSC collected (2) | $— | $14.7 | $— | $14.7 |

(1) Amount includes $0.2 of intercompany interest expense that is eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s intercompany interest expense included within the HG Global/BAM segment is eliminated against the offsetting intercompany interest income included within Other Operations.

(2) MSC collected are recorded directly to BAM’s equity, which is recorded as noncontrolling interest on White Mountains’s balance sheet.

| Millions | Six Months Ended June 30, 2024 HG Global | BAM | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | **$—** | **$24.1** | **$—** | **$24.1** |
| Assumed written premiums | **20.5** | **—** | **(20.5)** | **—** |
| Gross written premiums | **20.5** | **24.1** | **(20.5)** | **24.1** |
| Ceded written premiums | **—** | **(20.5)** | **20.5** | **—** |
| Net written premiums | **$20.5** | **$3.6** | **$—** | **$24.1** |
| Earned insurance premiums | **$14.0** | **$2.8** | **$—** | **$16.8** |
| Net investment income | **11.3** | **8.8** | **—** | **20.1** |
| Net investment income - BAM Surplus Notes | **13.2** | **—** | **(13.2)** | **—** |
| Net realized and unrealized investment gains (losses) | **(9.3)** | **(5.1)** | **—** | **(14.4)** |
| Other revenues | **—** | **1.1** | **—** | **1.1** |
| Total revenues | **29.2** | **7.6** | **(13.2)** | **23.6** |
| Acquisition expenses | **4.0** | **.4** | **—** | **4.4** |
| General and administrative expenses (1) | **.7** | **33.5** | **—** | **34.2** |
| Interest expense (2) | **8.1** | **—** | **—** | **8.1** |
| Interest expense - BAM Surplus Notes | **—** | **13.2** | **(13.2)** | **—** |
| Total expenses | **12.8** | **47.1** | **(13.2)** | **46.7** |
| **Pre-tax income (loss)** | **$16.4** | **$(39.5)** | **$—** | **$(23.1)** |
| **Supplemental information:** |  |  |  |  |
| MSC collected (3) | **$—** | **$26.0** | **$—** | **$26.0** |

(1) Amount includes $(0.3) of intercompany general and administrative expenses that are eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s intercompany general and administrative expenses included within the HG Global/BAM segment are eliminated against the offsetting intercompany general and administrative expenses included within Other Operations.

(2) Amount includes $0.5 of intercompany interest expense that is eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s intercompany interest expense included within the HG Global/BAM segment is eliminated against the offsetting intercompany interest income included within Other Operations.

(3) MSC collected are recorded directly to BAM’s equity, which is recorded as noncontrolling interest on White Mountains’s balance sheet.

| Millions | Six Months Ended June 30, 2023 HG Global | BAM | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | $— | $20.8 | $— | $20.8 |
| Assumed written premiums | 17.7 | — | (17.7) | — |
| Gross written premiums | 17.7 | 20.8 | (17.7) | 20.8 |
| Ceded written premiums | — | (17.7) | 17.7 | — |
| Net written premiums | $17.7 | $3.1 | $— | $20.8 |
| Earned insurance premiums | $12.8 | $2.6 | $— | $15.4 |
| Net investment income | 8.1 | 6.7 | — | 14.8 |
| Net investment income - BAM Surplus Notes | 13.1 | — | (13.1) | — |
| Net realized and unrealized investment gains (losses) | 2.2 | 4.9 | — | 7.1 |
| Other revenues | — | 1.3 | — | 1.3 |
| Total revenues | 36.2 | 15.5 | (13.1) | 38.6 |
| Acquisition expenses | 3.6 | .6 | — | 4.2 |
| General and administrative expenses | 1.4 | 30.8 | — | 32.2 |
| Interest expense (1) | 7.2 | — | — | 7.2 |
| Interest expense - BAM Surplus Notes | — | 13.1 | (13.1) | — |
| Total expenses | 12.2 | 44.5 | (13.1) | 43.6 |
| **Pre-tax income (loss)** | $24.0 | $(29.0) | $— | $(5.0) |
| **Supplemental information:** |  |  |  |  |
| MSC collected (2) | $— | $26.5 | $— | $26.5 |

(1) Amount includes $0.2 of intercompany interest expense that is eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s intercompany interest expense included within the HG Global/BAM segment is eliminated against the offsetting intercompany interest income included within Other Operations.

(2) MSC collected are recorded directly to BAM’s equity, which is recorded as noncontrolling interest on White Mountains’s balance sheet.

### HG Global/BAM Results—Three Months Ended June 30, 2024 versus Three Months Ended June 30, 2023

Gross written premiums and MSC collected in the HG Global/BAM segment totaled $28 million in the second quarter of 2024 compared to $26 million in the second quarter of 2023. BAM insured $5.3 billion of municipal bonds, $4.7 billion of which were in the primary market, in the second quarter of 2024 compared to $3.4 billion of municipal bonds, $2.9 billion of which were in the primary market, in the second quarter of 2023.

Insured penetration in the primary market decreased to 8.2% in the second quarter of 2024 compared to 10.1% in the second quarter of 2023, primarily due to a higher concentration of large, higher-credit issuances in the primary market that are typically uninsured.

Total pricing, which reflects both gross written premiums and MSC, decreased to 54 basis points in the second quarter of 2024 compared to 77 basis points in the second quarter of 2023. The decrease in total pricing was driven by lower pricing in the primary market, due to tighter municipal bond spreads and the volume of large, higher-credit issuances that BAM insured, and a decrease in the percentage of par insured in the secondary market. Pricing in the primary market decreased to 36 basis points in the second quarter of 2024 compared to 56 basis points in the second quarter of 2023. Pricing in the secondary reinsurance market, which is more transaction specific than pricing in the primary market, decreased to 193 basis points in the second quarter of 2024 compared to 200 basis points in the second quarter of 2023.

The following table presents the gross par value of primary and secondary market policies issued, gross written premiums and MSC collected and total pricing for the three months ended June 30, 2024 and 2023:

*$ in Millions*

|  | Three Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Gross par value of primary market policies issued | **$4,656.8** | $2,890.2 |
| Gross par value of secondary market policies issued | **602.6** | 500.3 |
| Total gross par value of market policies issued | **$5,259.4** | $3,390.5 |
| Gross written premiums | **$13.6** | $11.6 |
| MSC collected | **14.6** | 14.7 |
| Total gross written premiums and MSC collected | **$28.2** | $26.3 |
| Total pricing | **54 bps** | 77 bps |

63

HG Global reported pre-tax income of $11 million in the second quarter of 2024 compared to $7 million in the second quarter of 2023. HG Global’s results in the second quarter of 2024 included net realized and unrealized investment losses on its fixed income portfolio of $2 million, compared to $6 million in the second quarter of 2023, driven by the movement of interest rates in each period. HG Global’s results in the second quarter of both 2024 and 2023 also included interest income on the BAM Surplus Notes of $7 million.

BAM is a mutual insurance company that is owned by its members. BAM’s results are consolidated into White Mountain’s GAAP financial statements and attributed to noncontrolling interests. White Mountains reported $19 million of GAAP pre-tax loss from BAM in the second quarter of 2024 compared to $20 million in the second quarter of 2023. BAM’s results included net realized and unrealized investment losses on its fixed income portfolio of $2 million in the second quarter of 2024 compared to $4 million in the second quarter of 2023, driven by the movement of interest rates in each period. BAM’s results in the second quarter of both 2024 and 2023 also included interest expense on the BAM Surplus Notes of $7 million.

### HG Global/BAM Results—Six Months Ended June 30, 2024 versus Six Months Ended June 30, 2023

Gross written premiums and MSC collected in the HG Global/BAM segment totaled $50 million in the first six months of 2024 compared to $47 million in the first six months of 2023. BAM insured $8.8 billion of municipal bonds, $7.9 billion of which were in the primary market, in the six months of 2024 compared to $6.3 billion of municipal bonds, $5.1 billion of which were in the primary market, in the first six months of 2023.

Insured penetration in the primary market decreased to 7.8% in the first six months of 2024 compared to 9.1% in the first six months of 2023, primarily due to a higher concentration of large, higher-credit issuances in the primary market that are typically uninsured.

Total pricing, which reflects both gross written premiums and MSC, decreased to 57 basis points in the six months of 2024 compared to 75 basis points in the first six months of 2023. The decrease in total pricing was driven primarily by lower pricing in the primary market, due to tighter municipal bond spreads and the volume of large, higher-credit issuances that BAM insured, and a decrease in par insured in the secondary market, which was partially offset by higher pricing in the secondary market. Pricing in the primary market was 42 basis points in the six months of 2024 compared to 54 basis points in the first six months of 2023. Pricing in the secondary reinsurance market, which is more transaction specific than pricing in the primary market, increased to 177 basis points in the six months of 2024 compared to 163 basis points in the first six months of 2023.

The following table presents the gross par value of primary and secondary market policies issued, gross written premiums and MSC collected and total pricing for the six months ended June 30, 2024 and 2023:

*$ in Millions*

|  | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Gross par value of primary market policies issued | **$7,866.1** | $5,075.6 |
| Gross par value of secondary market policies issued | **965.6** | 1,204.5 |
| Total gross par value of market policies issued | **$8,831.7** | $6,280.1 |
| Gross written premiums | **$24.1** | $20.8 |
| MSC collected | **26.0** | 26.5 |
| Total gross written premiums and MSC collected | **$50.1** | $47.3 |
| Total pricing | **57 bps** | 75 bps |

64

HG Global reported pre-tax income of $17 million in the six months of 2024 compared to $24 million in the first six months of 2023. HG Global’s results in the six months of 2024 included net realized and unrealized investment gains (losses) on its fixed income portfolio of $(9) million compared to $2 million in the first six months of 2023, driven by the movement of interest rates in each period. HG Global’s results in the first six months of both 2024 and 2023 also included interest income on the BAM Surplus Notes of $13 million.

BAM is a mutual insurance company that is owned by its members. BAM’s results are consolidated into White Mountains’s GAAP financial statements and attributed to noncontrolling interests. White Mountains reported $40 million of GAAP pre-tax loss from BAM in the six months of 2024 compared to $29 million in the first six months of 2023. BAM’s results included net realized and unrealized investment gains (losses) on its fixed income portfolio of $(5) million in the first six months of 2024 compared to $5 million in the first six months of 2023, driven by the movement of interest rates in each period. BAM’s results in the first six months of both 2024 and 2023 also included interest expense on the BAM Surplus Notes of $13 million.

### Claims Paying Resources

BAM’s claims paying resources represent the capital and other financial resources BAM has available to pay claims and, as such, are a key indication of BAM’s financial strength.

BAM’s claims paying resources were $1,525 million as of June 30, 2024 compared to $1,501 million as of December 31, 2023 and $1,451 million as of June 30, 2023. The increase in claims paying resources as of June 30, 2024 compared to December 31, 2023 was driven primarily by an increase in the statutory value of the collateral trusts resulting from positive cash flow from operations, partially offset by a reduction in qualified statutory capital as a result of the May 2024 repayment on the surplus notes.

The following table presents BAM’s total claims paying resources on a statutory basis as of June 30, 2024, December 31, 2023 and June 30, 2023:

| Millions | June 30, 2024 | December 31, 2023 | June 30, 2023 |
| --- | ---: | ---: | ---: |
| Policyholders’ surplus | **$253.3** | $269.3 | $281.5 |
| Contingency reserve | **145.8** | 136.2 | 126.9 |
| Qualified statutory capital | **399.1** | 405.5 | 408.4 |
| Statutory net unearned premiums | **62.1** | 60.7 | 56.9 |
| Present value of future installment premiums and MSC | **12.6** | 10.9 | 12.5 |
| HG Re Collateral Trusts at statutory value | **651.0** | 623.5 | 573.4 |
| Fidus Re collateral trusts at statutory value | **400.0** | 400.0 | 400.0 |
| Claims paying resources | **$1,524.8** | $1,500.6 | $1,451.2 |

65

### HG Global/BAM Balance Sheets

The following tables present amounts from HG Global, which includes HG Re and its other wholly-owned subsidiaries, and BAM that are contained within White Mountains’s consolidated balance sheet as of June 30, 2024 and December 31, 2023:

| Millions Assets | June 30, 2024 HG Global | BAM | Eliminations and Segment Adjustments | Total |
| --- | ---: | ---: | ---: | ---: |
| Fixed maturity investments, at fair value | **$603.1** | **$436.3** | **$—** | **$1,039.4** |
| Short-term investments, at fair value | **38.1** | **13.2** | **—** | **51.3** |
| Total investments | **641.2** | **449.5** | **—** | **1,090.7** |
| Cash | **.9** | **4.1** | **—** | **5.0** |
| BAM Surplus Notes | **317.1** | **—** | **(317.1)** | **—** |
| Accrued interest receivable on BAM Surplus Notes | **184.8** | **—** | **(184.8)** | **—** |
| Insurance premiums receivable | **4.3** | **6.4** | **(4.3)** | **6.4** |
| Deferred acquisition costs | **81.0** | **41.7** | **(81.0)** | **41.7** |
| Other assets | **23.2** | **13.4** | **(.3)** | **36.3** |
| Total assets | **$1,252.5** | **$515.1** | **$(587.5)** | **$1,180.1** |
| **Liabilities** |  |  |  |  |
| BAM Surplus Notes (1) | **$—** | **$317.1** | **$(317.1)** | **$—** |
| Accrued interest payable on BAM Surplus Notes (2) | **—** | **184.8** | **(184.8)** | **—** |
| Preferred dividends payable to White Mountains (3) | **430.9** | **—** | **—** | **430.9** |
| Preferred dividends payable to noncontrolling interests | **13.3** | **—** | **—** | **13.3** |
| Unearned insurance premiums | **280.4** | **52.8** | **—** | **333.2** |
| Debt | **147.2** | **—** | — | **147.2** |
| Intercompany debt (4) | **7.5** | **—** | — | **7.5** |
| Accrued incentive compensation | **1.0** | **16.3** | — | **17.3** |
| Other liabilities | **9.5** | **97.6** | **(85.6)** | **21.5** |
| Total liabilities | **889.8** | **668.6** | **(587.5)** | **970.9** |
| **Equity** |  |  |  |  |
| White Mountains’s common shareholders’ equity (3)(4) | **363.5** | **—** | **—** | **363.5** |
| Noncontrolling interests | **(.8)** | **(153.5)** | **—** | **(154.3)** |
| **Total equity** | **362.7** | **(153.5)** | **—** | **209.2** |
| **Total liabilities and equity** | **$1,252.5** | **$515.1** | **$(587.5)** | **$1,180.1** |

(1) Under GAAP, the BAM Surplus Notes are classified as debt. Under U.S. Statutory accounting, they are classified as policyholders’ surplus.

(2) Under GAAP, interest accrues daily on the BAM Surplus Notes. Under U.S. Statutory accounting, interest is not accrued on the BAM Surplus Notes until it has been approved for payment by insurance regulators.

(3) HG Global’s preferred dividends payable to White Mountains are eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s preferred dividends payable to White Mountains included within the HG Global/BAM segment are eliminated against the offsetting receivable included within Other Operations.

(4) HG Global’s intercompany debt is eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s intercompany debt included within the HG Global/BAM segment is eliminated against the offsetting receivable included within Other Operations.

| Millions Assets | December 31, 2023 HG Global | BAM | Eliminations and Segment Adjustments | Total Segment |
| --- | ---: | ---: | ---: | ---: |
| Fixed maturity investments, at fair value | $573.3 | $439.0 | $— | $1,012.3 |
| Short-term investments, at fair value | 42.7 | 27.9 | — | 70.6 |
| Total investments | 616.0 | 466.9 | — | 1,082.9 |
| Cash | 3.2 | 3.5 | — | 6.7 |
| BAM Surplus Notes | 322.2 | — | (322.2) | — |
| Accrued interest receivable on BAM Surplus Notes | 174.5 | — | (174.5) | — |
| Insurance premiums receivable | 3.4 | 5.5 | (3.4) | 5.5 |
| Deferred acquisition costs | 79.0 | 40.1 | (79.0) | 40.1 |
| Other assets | 23.0 | 14.0 | (.2) | 36.8 |
| Total assets | $1,221.3 | $530.0 | $(579.3) | $1,172.0 |
| **Liabilities** |  |  |  |  |
| BAM Surplus Notes (1) | $— | $322.2 | $(322.2) | $— |
| Accrued interest payable on BAM Surplus Notes (2) | — | 174.5 | (174.5) | — |
| Preferred dividends payable to White Mountains (3) | 399.8 | — | — | 399.8 |
| Preferred dividends payable to noncontrolling interests | 14.7 | — | — | 14.7 |
| Unearned insurance premiums | 273.9 | 51.9 | — | 325.8 |
| Debt | 146.9 | — | — | 146.9 |
| Intercompany debt (4) | 4.0 | — | — | 4.0 |
| Accrued incentive compensation | 1.6 | 25.6 | — | 27.2 |
| Other liabilities | 4.1 | 95.6 | (82.6) | 17.1 |
| Total liabilities | 845.0 | 669.8 | (579.3) | 935.5 |
| **Equity** |  |  |  |  |
| White Mountains’s common shareholders’ equity (3)(4) | 375.5 | — | — | 375.5 |
| Noncontrolling interests | .8 | (139.8) | — | (139.0) |
| **Total equity** | 376.3 | (139.8) | — | 236.5 |
| **Total liabilities and equity** | $1,221.3 | $530.0 | $(579.3) | $1,172.0 |

(1) Under GAAP, the BAM Surplus Notes are classified as debt. Under U.S. Statutory accounting, they are classified as policyholders’ surplus.

(2) Under GAAP, interest accrues daily on the BAM Surplus Notes. Under U.S. Statutory accounting, interest is not accrued on the BAM Surplus Notes until it has been approved for payment by insurance regulators.

(3) HG Global’s preferred dividends payable to White Mountains are eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s preferred dividends payable to White Mountains included within the HG Global/BAM segment are eliminated against the offsetting receivable included within Other Operations.

(4) HG Global’s intercompany debt is eliminated in White Mountains’s consolidated financial statements. For segment reporting, HG Global’s intercompany debt included within the HG Global/BAM segment is eliminated against the offsetting receivable included within Other Operations.

### Kudu

As of June 30, 2024, Kudu had deployed a total of $885 million, including transaction costs, into 25 asset and wealth management firms globally, including three that have been exited. As of June 30, 2024, the asset and wealth management firms had combined assets under management (“AUM”) of approximately $112 billion, spanning a range of asset classes, including real estate, wealth management, hedge funds, private equity and alternative credit strategies. Kudu’s capital was deployed at an average gross cash yield at inception of approximately 10% based on expected cash flows in the first year following deployment.

The following table presents the components of GAAP net income, EBITDA and adjusted EBITDA included in the Kudu segment for the three and six months ended June 30, 2024 and 2023:

| Millions | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| Net investment income (1) | **$15.7** | $14.7 | **$32.9** | $28.9 |
| Net realized and unrealized investment gains (losses) | **54.5** | 4.6 | **48.0** | 34.2 |
| Total revenues | **70.2** | 19.3 | **80.9** | 63.1 |
| General and administrative expenses | **3.5** | 4.0 | **6.9** | 7.8 |
| Interest expense | **5.4** | 5.3 | **11.0** | 10.0 |
| Total expenses | **8.9** | 9.3 | **17.9** | 17.8 |
| GAAP pre-tax income (loss) | **61.3** | 10.0 | **63.0** | 45.3 |
| Income tax (expense) benefit | **(9.9)** | (1.8) | **(9.1)** | (9.3) |
| GAAP net income (loss) | **51.4** | 8.2 | **53.9** | 36.0 |
| Add back: |  |  |  |  |
| Interest expense | **5.4** | 5.3 | **11.0** | 10.0 |
| Income tax expense (benefit) | **9.9** | 1.8 | **9.1** | 9.3 |
| Depreciation expense | **—** | — | **—** | — |
| Amortization of other intangible assets | **.1** | .2 | **.2** | .2 |
| EBITDA (2) | **66.8** | 15.5 | **74.2** | 55.5 |
| Exclude: |  |  |  |  |
| Net realized and unrealized investment (gains) losses | **(54.5)** | (4.6) | **(48.0)** | (34.2) |
| Transaction expenses | **.1** | .8 | **.1** | 1.3 |
| Adjusted EBITDA (2) | **$12.4** | $11.7 | **$26.3** | $22.6 |

(1) Net investment income includes revenues from participation contracts and income from short-term and other long-term investments.

(2) See “**NON-GAAP FINANCIAL MEASURES”** on page 80.

The following table presents the changes in the fair value of Kudu’s Participation Contracts:

| Millions | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| Beginning balance of Kudu’s Participation Contracts (1) | **$884.2** | $683.2 | **$890.5** | $695.9 |
| Contributions to Participation Contracts (2) | **.2** | 50.7 | **.2** | 117.4 |
| Proceeds from Participation Contracts sold (2) (3) | **(37.5)** | (1.4) | **(37.5)** | (110.4) |
| Net realized and unrealized investment gains (losses) on Participation Contracts sold and pending sale (4) | **(3.2)** | .9 | **(6.3)** | (1.2) |
| Net unrealized investment gains (losses) on Participation Contracts - all other (5) | **57.6** | 3.7 | **54.4** | 35.4 |
| Ending balance of Kudu’s Participation Contracts (1) | **$901.3** | $737.1 | **$901.3** | $737.1 |

(1) As of January 1, 2024 and June 30, 2024, Kudu’s other long-term investments also includes $5.8 related to a private debt instrument.

(2) Includes $35.8 of non-cash contributions to (proceeds from) Participation Contracts for the six months ended June 30, 2023.

(3) Includes $28.1 of proceeds receivable from Participation Contracts sold during the three and six months ended June 30, 2024.

(4) Includes net realized and unrealized investment gains (losses) recognized from Participation Contracts beginning in the quarter a contract is classified as pending sale.

(5) Includes net unrealized investment gains (losses) recognized from (i) ongoing Participation Contracts and (ii) Participation Contracts prior to classification as pending sale.

### Kudu Results—Three Months Ended June 30, 2024 versus Three Months Ended June 30, 2023

Kudu reported total revenues of $70 million, pre-tax income of $61 million and adjusted EBITDA of $12 million in the second quarter of 2024 compared to total revenues of $19 million, pre-tax income of $10 million and adjusted EBITDA of $12 million in the second quarter of 2023. Total revenues, pre-tax income and adjusted EBITDA included $16 million of net investment income in the second quarter of 2024 compared to $15 million in the second quarter of 2023. Total revenues and pre-tax income also included $55 million of net realized and unrealized investment gains in the second quarter of 2024 compared to $5 million in the second quarter of 2023. Investment gains for the second quarter of 2024 were driven primarily by increases in the fair value of Kudu’s Participation Contracts as a result of lower discount rates as well as higher AUM growth at several underlying asset managers. Investment gains for the second quarter of 2023 were driven primarily by increases in the fair value of Kudu’s Participation Contracts as a result of lower discount rates as well as higher AUM growth at several underlying asset managers, largely offset by an unrealized loss from a publicly listed security received by Kudu in a prior sales transaction.

### Kudu Results—Six Months Ended June 30, 2024 versus Six Months Ended June 30, 2023

Kudu reported total revenues of $81 million, pre-tax income of $63 million and adjusted EBITDA of $26 million in the first six months of 2024 compared to total revenues of $63 million, pre-tax income of $45 million and adjusted EBITDA of $23 million in the first six months of 2023. Total revenues, pre-tax income and adjusted EBITDA included $33 million of net investment income in the first six months of 2024 compared to $29 million in the first six months of 2023. The increase in net investment income in the first six months of 2024 compared to the first six months of 2023 was driven primarily by amounts earned from new deployments that Kudu made subsequent to March 31, 2023. Total revenues and pre-tax income also included $48 million of net realized and unrealized investment gains in the first six months of 2024 compared to $34 million in the first six months of 2023. Investment gains for the first six months of 2024 were driven primarily by increases in the fair value of Kudu’s Participation Contracts as a result of lower discount rates as well as higher AUM growth at several underlying asset managers. Investment gains for the first six months of 2023 were driven primarily by increases in the fair value of Kudu’s Participation Contracts as a result of lower discount rates as well as higher AUM growth at several underlying asset managers, partially offset by an unrealized loss from a publicly listed security received by Kudu in a prior sales transaction.

### Bamboo

On January 2, 2024, White Mountains closed the Bamboo Transaction in accordance with the terms of the Bamboo Merger Agreement, investing $297 million of equity into Bamboo, which included the contribution of $36 million to retire Bamboo’s legacy credit facility and the contribution of $20 million of primary capital. The consideration is subject to customary purchase price adjustments. At closing, White Mountains owned 72.8% of Bamboo on a basic shares outstanding basis (63.7% on a fully-diluted/fully-converted basis, taking account of management’s equity incentives), while Bamboo management owned 16.1% of basic shares outstanding (26.6% on a fully-diluted/fully-converted basis). See **Note 2 — “Significant Transactions”.**

Bamboo is a capital-light, tech- and data-enabled insurance distribution platform providing homeowners’ insurance and related products to the residential property market in California. Bamboo operates primarily through Bamboo MGA, its full-service MGA business, where the company manages all aspects of the placement process on behalf of its fronting and reinsurance partners, including product development, marketing, underwriting, policy issuance and claims oversight, and it earns commissions based on the volume and profitability of the insurance that it places. It offers both admitted and non-admitted products. Bamboo also operates two separate but integrated businesses: (i) a retail agency, within Bamboo MGA, offering ancillary products on behalf of third parties and (ii) Bamboo Captive, a Bermuda-domiciled captive reinsurer that participates in the underwriting risk of Bamboo’s MGA programs to align interests with reinsurance partners.

The following table presents the components of GAAP net income (loss), MGA net income (loss), MGA EBITDA and MGA Adjusted EBITDA included in White Mountains’s Bamboo segment for the three and six months ended June 30, 2024.

| Millions | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 |
| --- | ---: | ---: |
| Commission and fee revenues | **$32.7** | **$54.6** |
| Earned insurance premiums | **8.0** | **16.4** |
| Other revenues | **1.3** | **2.1** |
| Total revenues | **42.0** | **73.1** |
| Broker commission expenses | **12.7** | **22.0** |
| Loss and loss adjustment expenses | **4.3** | **10.1** |
| Acquisition expenses | **2.9** | **6.0** |
| General and administrative expenses | **15.7** | **27.7** |
| Total expenses | **35.6** | **65.8** |
| GAAP pre-tax income (loss) | **6.4** | **7.3** |
| Income tax (expense) benefit | **(2.2)** | **(1.5)** |
| GAAP net income (loss) | **4.2** | **5.8** |
| Exclude: |  |  |
| Net (income) loss, Bamboo Captive | **(.4)** | **—** |
| MGA net income (loss) (1) | **3.8** | **5.8** |
| Add back: |  |  |
| Income tax expense (benefit) | **2.2** | **1.5** |
| Amortization of other intangible assets | **4.3** | **8.5** |
| MGA EBITDA (1) | **10.3** | **15.8** |
| Exclude: |  |  |
| Non-cash equity-based compensation expense | **.3** | **.6** |
| Software implementation expenses | **.4** | **.9** |
| Restructuring expenses | **.5** | **.6** |
| MGA adjusted EBITDA (1) | **$11.5** | **$17.9** |

(1) See “**NON-GAAP FINANCIAL MEASURES”** on page 80.

### Bamboo Results—Three and Six Months Ended June 30, 2024

Bamboo reported commission and fee revenues of $33 million and $55 million and pre-tax income of $6 million and $7 million for the second quarter and first six months of 2024. Commission and fee revenues were nearly triple Bamboo’s commissions and fee revenues for the second quarter and first six months of 2023 (prior to White Mountains’s ownership of Bamboo), driven primarily by higher managed premiums. Bamboo reported MGA pre-tax income of $6 million and $7 million and MGA adjusted EBITDA of $12 million and $18 million for the second quarter and first six months of 2024.

### Managed premiums

Managed premiums represent the total premiums placed by Bamboo during the period. Managed premiums were $120 million for the second quarter of 2024 compared to $41 million for the second quarter of 2023 (prior to White Mountains’s ownership of Bamboo). Managed premiums were $209 million for the first six months of 2024 compared to $69 million for the first six months of 2023 (prior to White Mountains’s ownership of Bamboo). The increase in managed premiums was driven primarily by growth in new business volume as well as a growing renewal book.

The following table presents Bamboo’s managed premiums for the three and six months ended June 30, 2024 and 2023, which includes periods prior to White Mountains’s ownership of Bamboo. White Mountains believes this information is useful in understanding the overall growth in Bamboo’s premium base.

| Millions | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| New | **$85.3** | $24.7 | **$151.1** | $38.0 |
| Renewal | **34.5** | 15.8 | **58.2** | 30.7 |
| **Total Managed Premiums** | **$119.8** | $40.5 | **$209.3** | $68.7 |

### Other Operations

The following table presents the components of pre-tax income (loss) included in White Mountains’s Other Operations for the three and six months ended June 30, 2024 and 2023:

| Millions | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| Earned insurance premiums | **$8.6** | $— | **$8.6** | $— |
| Net investment income | **8.4** | 7.0 | **18.3** | 14.0 |
| Net realized and unrealized investment gains (losses) | **8.5** | 76.0 | **30.7** | 117.8 |
| Net realized and unrealized investment gains (losses) from investment in MediaAlpha | **(139.2)** | (77.3) | **71.5** | 7.9 |
| Commission and fee revenues | **3.4** | 3.2 | **7.0** | 6.5 |
| Other revenues | **14.5** | 21.3 | **28.9** | 51.9 |
| Total revenues | **(95.8)** | 30.2 | **165.0** | 198.1 |
| Loss and loss adjustment expenses | **3.9** | — | **3.9** | — |
| Acquisition expenses | **2.6** | — | **2.6** | — |
| Cost of sales | **7.0** | 11.6 | **14.6** | 25.5 |
| General and administrative expenses | **43.2** | 48.8 | **93.5** | 88.5 |
| Interest expense | **.6** | 1.2 | **1.3** | 2.0 |
| Total expenses | **57.3** | 61.6 | **115.9** | 116.0 |
| **Pre-tax income (loss)** | **$(153.1)** | $(31.4) | **$49.1** | $82.1 |

71

### Other Operations Results—Three Months Ended June 30, 2024 versus Three Months Ended June 30, 2023

White Mountains’s Other Operations reported pre-tax loss of $153 million in the second quarter of 2024 compared to $31 million in the second quarter of 2023. White Mountains’s Other Operations reported net realized and unrealized investment losses from its investment in MediaAlpha of $139 million in the second quarter of 2024 compared to $77 million in the second quarter of 2023. Excluding MediaAlpha, White Mountains’s Other Operations reported net realized and unrealized investment gains of $9 million in the second quarter of 2024, driven primarily by gains from common equity securities, compared to $76 million in the second quarter of 2023, driven primarily by gains from other long-term investments and common equity securities. White Mountains’s Other Operations reported net investment income of $8 million in the second quarter of 2024 compared to $7 million in the second quarter of 2023. See **Summary of Investment Results** on page 73.

White Mountains’s Other Operations reported $15 million of other revenues in the second quarter of 2024 compared to $21 million in the second quarter of 2023. White Mountains’s Other Operations reported $7 million of cost of sales in the second quarter of 2024 compared to $12 million in the second quarter of 2023.

White Mountains’s Other Operations reported general and administrative expenses of $43 million in the second quarter of 2024 compared to $49 million in the second quarter of 2023. Other Operations general and administrative expenses in the first six months of 2024 included $21 million of parent company compensation and benefits compared to $20 million in the first six months of 2023.

In April 2024, White Mountains committed up to $30 million in Bamboo CRV, a Bermuda special purpose collateralized reinsurance vehicle to provide reinsurance capacity to Bamboo. During the second quarter of 2024, White Mountains capitalized Bamboo CRV by purchasing $12 million of preference shares that were deposited into a collateral trust account. Bamboo CRV entered into a collateralized quota share agreement with Bamboo’s fronting partner to provide reinsurance protection on Bamboo’s admitted and non-admitted business written in the 2024 treaty year. In the second quarter of 2024, White Mountains’s Other Operations reported $9 million of earned premiums, $4 million of loss and loss adjustment expenses and $3 million of acquisition expenses related to Bamboo CRV.

### Other Operations Results—Six Months Ended June 30, 2024 versus Six Months Ended June 30, 2023

White Mountains’s Other Operations reported pre-tax income of $49 million in the first six months of 2024 compared to $82 million in the first six months of 2023. White Mountains’s Other Operations results included net realized and unrealized investment gains from its investment in MediaAlpha of $72 million in the first six months of 2024 compared to $8 million in the first six months of 2023. Excluding MediaAlpha, White Mountains’s Other Operations results included net realized and unrealized investment gains of $31 million in the first six months of 2024 compared to $118 million in the first six months of 2023, driven primarily by gains from other long-term investments and common equity securities in both periods. White Mountains’s Other Operations results included net investment income of $18 million in the first six months of 2024 compared to $14 million in the first six months of 2023. See **Summary of Investment Results** on page 73.

White Mountains’s Other Operations reported $29 million of other revenues in the first six months of 2024 compared to $52 million in the first six months of 2023. White Mountains’s Other Operations reported $15 million of cost of sales in the first six months of 2024 compared to $26 million in the first six months of 2023. The decrease in other revenues and cost of sales were driven primarily by a business sold within Other Operations in 2023.

White Mountains’s Other Operations reported general and administrative expenses of $94 million in the first six months of 2024 compared to $89 million in the first six months of 2023. Other Operations general and administrative expenses in the first six months of 2024 included $51 million of parent company compensation and benefits compared to $40 million in the first six months of 2023. The increase in parent company compensation and benefits was driven primarily by higher long-term incentive compensation costs due to the increase in White Mountains’s share price during the first six months of 2024.

In the first six months of 2024, White Mountains’s Other Operations reported $9 million of earned premiums, $4 million of loss and loss adjustment expenses and $3 million of acquisition expenses related to Bamboo CRV.

### II. Summary of Investment Results

White Mountains’s total investment results include results from all segments. For purposes of discussing rates of return, percentages are presented gross of management fees and trading expenses.

### Gross Investment Returns and Benchmark Returns

The following table presents the pre-tax investment returns for White Mountains’s consolidated portfolio for the three and six months ended June 30, 2024 and 2023:

|  | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| Fixed income investments | **1.0%** | 0.5% | **1.7%** | 2.4% |
| Bloomberg Barclays U.S. Intermediate Aggregate Index | **0.5%** | (0.7)% | **0.0%** | 1.6% |
| Common equity securities | **3.3%** | 4.8% | **7.8%** | 9.6% |
| Investment in MediaAlpha | **(36.7)%** | (31.3)% | **15.6%** | 3.4% |
| Other long-term investments | **4.1%** | 4.9% | **5.6%** | 9.3% |
| Total common equity securities, investment in MediaAlpha and other long-term investments | **(1.3)%** | 1.4% | **8.1%** | 9.1% |
| Total common equity securities and other long-term investments | **3.9%** | 4.9% | **6.0%** | 9.5% |
| S&P 500 Index (total return) | **4.3%** | 8.7% | **15.3%** | 16.9% |
| Total consolidated portfolio | **(0.1)%** | 0.9% | **4.5%** | 5.5% |
| Total consolidated portfolio - excluding MediaAlpha | **2.2%** | 3.0% | **3.5%** | 6.1% |

### Investment Returns—Three and Six Months Ended June 30, 2024 versus Three and Six Months Ended June 30, 2023

White Mountains’s total consolidated portfolio return on invested assets was -0.1% in the second quarter of 2024, which included $139 million of net realized and unrealized investment losses from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 2.2% in the second quarter of 2024, driven primarily by net realized and unrealized investment gains from other-long term investments and net investment income from the fixed income portfolio and other long-term investments portfolios. White Mountains’s total consolidated portfolio return on invested assets was 0.9% in the second quarter of 2023, which included $77 million of unrealized investment losses from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 3.0% in the second quarter of 2023, driven primarily by net unrealized investment gains from other long-term investments, net realized and unrealized investment gains from common equity securities, and net investment income from the fixed income portfolio.

White Mountains’s total consolidated portfolio return on invested assets was 4.5% in the first six months of 2024, which included $72 million of net realized and unrealized investment gains from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 3.5% in the first six months of 2024, driven primarily by net realized and unrealized gains from other-long term investments, net investment income from the fixed income portfolio, and unrealized investment gains from common equity securities. White Mountains’s total consolidated portfolio return on invested assets was 5.5% in the first six months of 2023, which included $8 million of unrealized investment gains from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 6.1% in the first six months of 2023, driven primarily by net realized and unrealized investment gains from other long-term investments and common equity securities, as well as net investment income from the fixed income portfolio.

#### Fixed Income Results

White Mountains’s fixed income portfolio, including short-term investments, was $3.6 billion as of both June 30, 2024 and December 31, 2023, which represented 55% and 56% of total invested assets. The duration of White Mountains’s fixed income portfolio, including short-term investments, was 2.1 years and 1.9 years as of June 30, 2024 and December 31, 2023. White Mountains’s fixed income portfolio includes fixed maturity and short-term investments held on deposit or as collateral. See **Note 3 — “Investment Securities.”**

White Mountains’s fixed income portfolio returned 1.0% in the second quarter of 2024 compared to 0.5% in the second quarter of 2023, outperforming the Bloomberg Barclays U.S. Intermediate Aggregate Index returns of 0.5% and -0.7% for the comparable periods. The results in the second quarter of 2024 were driven primarily by net investment income. The results in the second quarter of 2023 were driven primarily by net investment income, partially offset by net unrealized investment losses due to the increase in interest rates on White Mountains’s short duration fixed income portfolio.

White Mountains’s fixed income portfolio returned 1.7% in the first six months of 2024 compared to 2.4% in the first six months of 2023, outperforming the Bloomberg Barclays U.S. Intermediate Aggregate Index returns of 0.0% and 1.6% for the comparable periods. The results in the first six months of 2024 were driven primarily by net investment income, partially offset by net unrealized investment losses due to the increase in interest rates on White Mountains’s short duration fixed income portfolio. The results in the first six months of 2023 were driven primarily by net investment income.

#### Common Equity Securities, Investment in MediaAlpha and Other Long-Term Investments Results

White Mountains’s portfolio of common equity securities, its investment in MediaAlpha and other long-term investments totaled $2.9 billion and $2.8 billion as of June 30, 2024 and December 31, 2023, which represented 45% and 44% of total invested assets. See **Note 3 — “Investment Securities.”**

White Mountains’s portfolio of common equity securities, its investment in MediaAlpha and other long-term investments returned -1.3% in the second quarter of 2024, which included $139 million of net realized and unrealized investment losses from White Mountains’s investment in MediaAlpha. White Mountains’s portfolio of common equity securities and other long-term investments returned 3.9% in the second quarter of 2024. White Mountains’s portfolio of common equity securities, its investment in MediaAlpha and other long-term investments returned 1.4% in the second quarter of 2023, which included $77 million of unrealized investment losses from White Mountains’s investment in MediaAlpha. White Mountains’s portfolio of common equity securities and other long-term investments returned 4.9% in the second quarter of 2023.

White Mountains’s portfolio of common equity securities, its investment in MediaAlpha and other long-term investments returned 8.1% in the first six months of 2024, which included $72 million of net realized and unrealized investment gains from White Mountains’s investment in MediaAlpha. White Mountains’s portfolio of common equity securities and other long-term investments returned 6.0% in the first six months of 2024. White Mountains’s portfolio of common equity securities, its investment in MediaAlpha and other long-term investments returned 9.1% in the first six months of 2023, which included $8 million of net unrealized investment gains from White Mountains’s investment in MediaAlpha. White Mountains’s portfolio of common equity securities and other long-term investments returned 9.5% in the first six months of 2023.

White Mountains’s portfolio of common equity securities consists of international listed equity funds, as well as passive ETFs that seek to provide investment results generally corresponding to the performance of the S&P 500 Index. White Mountains’s portfolio of common equity securities was $631 million and $538 million as of June 30, 2024 and December 31, 2023.

White Mountains’s portfolio of common equity securities returned 3.3% in the second quarter of 2024 compared to 4.8% in the second quarter of 2023, underperforming the S&P 500 Index returns of 4.3% and 8.7% for the comparable periods. White Mountains’s portfolio of common equity securities returned 7.8% in the first six months of 2024 compared to 9.6% in the first six months of 2023, underperforming the S&P 500 Index returns of 15.3% and 16.9% for the comparable periods. The results in the second quarter and first six months of 2024 and 2023 were driven primarily by relatively lower returns from White Mountains’s international listed equity funds as compared to the S&P 500 Index.

White Mountains maintains a portfolio of other long-term investments that consists primarily of unconsolidated entities, including Kudu’s Participation Contracts, private equity funds and hedge funds, a bank loan fund, Lloyd’s trust deposits, ILS funds and private debt instruments. White Mountains’s portfolio of other long-term investments was $2.0 billion as of both June 30, 2024 and December 31, 2023.

White Mountains’s portfolio of other long-term investments returned 4.1% in the second quarter of 2024 compared to 4.9% in the second quarter of 2023. Investment returns for the second quarter of 2024 were driven primarily by net investment income and net realized and unrealized investment gains from Kudu’s Participation Contracts. Investment returns for the second quarter of 2023 were driven primarily by net unrealized investment gains from private equity funds and net investment income from Kudu’s Participation Contracts.

White Mountains’s portfolio of other long-term investments returned 5.6% in the first six months of 2024 compared to 9.3% in the first six months of 2023. Investment returns for the first six months of 2024 were driven primarily by net investment income and net realized and unrealized investment gains from Kudu’s Participation Contracts, as well as net investment income and net unrealized gains from private equity funds, hedge funds and ILS funds. Investment returns for the first six months of 2023 were driven primarily by net investment income and net realized and unrealized investment gains from Kudu’s Participation Contracts, as well as net unrealized investment gains from private equity funds.

### Foreign Currency Exposure

As of June 30, 2024, White Mountains had foreign currency exposure on $255 million of net assets, primarily related to Ark/WM Outrigger’s non-U.S. contracts, Kudu’s non-U.S. Participation Contracts and certain other foreign consolidated and unconsolidated entities.

The following table presents the fair value of White Mountains’s foreign denominated net assets (liabilities) by segment as of June 30, 2024:

*$ in Millions Currency*

|  | Ark/WM Outrigger | Kudu | Other Operations | Total Fair Value | % of Total Shareholders’ Equity |
| --- | ---: | ---: | ---: | ---: | ---: |
| CAD | $94.3 | $77.0 | $— | $171.3 | 3.5% |
| AUD | 31.9 | 66.5 | — | 98.4 | 2.0 |
| GBP | (4.6) | — | — | (4.6) | (0.1) |
| EUR | (38.6) | 19.4 | 8.3 | (10.9) | (0.2) |
| All other | — | — | .4 | .4 | — |
| Total | **$83.0** | **$162.9** | **$8.7** | **$254.6** | 5.2% |

### III. Income Taxes

On December 27, 2023, Bermuda enacted a corporate income tax that will generally become effective on January 1, 2025. The Bermuda legislation defers the effective date until January 1, 2030, for Bermuda companies in consolidated groups that meet certain requirements. To qualify for the deferral, the group must (i) have permanent establishments in six or fewer countries, (ii) have less than €50 million of net tangible assets outside of the country where the group has the largest amount of net tangible assets and (iii) not have a Bermuda company directly or indirectly owned by a parent entity that is subject to the Income Inclusion Rule (“IIR”) of Pillar Two in any jurisdiction. White Mountains expects to meet the requirements to be exempt from the Bermuda corporate income tax until January 1, 2030. The Bermuda legislation also provides for an economic transition adjustment that will reduce future years’ taxable income. Under GAAP, this economic transition adjustment was required to be recognized as a net deferred tax asset as of December 31, 2023. Accordingly, White Mountains’s net income for 2023 included a net deferred tax benefit of $68 million, of which $51 million was recorded at Ark and $17 million was recorded at HG Global. These deferred tax assets remain unchanged as of June 30, 2024.

On December 15, 2022, European Union Member States voted to adopt the EU Minimum Tax Directive in conformity with the OECD’s Pillar Two initiative. The EU Minimum Tax Directive required European Union Member States to enact conforming law by December 31, 2023. The main rule of the EU Minimum Tax Directive, the IIR, will become effective for fiscal years beginning on or after December 31, 2023, while the Undertaxed Profits Rule (“UTPR”) will become effective for fiscal years beginning on or after December 31, 2024. On December 20, 2023, Luxemburg enacted conforming Pillar Two legislation including the IIR, UTPR and the associated Qualified Domestic Minimum Top-Up Tax (“QDMTT”). The Luxembourg legislation defers the effective date of the UTPR until fiscal years beginning on or after December 31, 2029 for Luxembourg companies in consolidated groups with a non-EU parent company that meet certain requirements. To qualify for the deferral, the group must (i) have permanent establishments in six or fewer countries and (ii) have less than €50 million of net tangible assets outside of the country where the group has the largest amount of net tangible assets. White Mountains expects to meet the requirements to be exempt from the Luxembourg UTPR until January 1, 2030. On July 11, 2023, the U.K. enacted conforming legislation adopting the Pillar Two IIR and the associated QDMTT which will become effective for fiscal years beginning on or after December 31, 2023. The U.K. has proposed legislation to adopt the Pillar Two UTPR effective for fiscal years beginning on or after December 31, 2024; however, this legislation has not yet been enacted.

As of June 30, 2024, the primary jurisdictions in which the Company’s subsidiaries and branches operate and were subject to tax are Israel, Luxembourg, the United Kingdom and the United States. On April 1, 2023, the U.K. corporate tax rate increased from 19% to 25%.

White Mountains’s income tax expense related to pre-tax loss from continuing operations for the three months ended June 30, 2024 represented an effective tax rate of (19)%. The effective tax rate was different from the U.S. statutory rate of 21.0%, driven primarily by a change in forecasted income between jurisdictions for 2024.

White Mountains’s income tax expense related to pre-tax income from continuing operations for the six months ended June 30, 2024 represented an effective tax rate of 9%. The effective tax rate was different from the U.S. statutory rate of 21.0%, driven primarily by full year forecasted income in jurisdictions with lower tax rates than the United States.

White Mountains’s income tax expense related to pre-tax income from continuing operations for the three and six months ended June 30, 2023 represented an effective tax rate of 1% and 6%. The effective tax rate was different from the U.S. statutory rate of 21.0%, driven primarily by full year forecasted income in jurisdictions with lower tax rates than the United States.

### LIQUIDITY AND CAPITAL RESOURCES

### Operating Cash and Short-term Investments

### Holding Company Level

The primary sources of cash for the Company and certain of its intermediate holding companies are expected to be distributions from its insurance, reinsurance and other operating subsidiaries, net investment income, proceeds from sales, repayments and maturities of investments, capital raising activities and, from time to time, proceeds from sales of operating subsidiaries. The primary uses of cash are expected to be general and administrative expenses, purchases of investments, payments to tax authorities, payments on and repurchases/retirements of debt obligations, dividend payments to holders of the Company’s common shares, distributions to noncontrolling interest holders of consolidated subsidiaries, contributions to operating subsidiaries and, from time to time, purchases of operating subsidiaries and repurchases of the Company’s common shares.

### Operating Subsidiary Level

The primary sources of cash for White Mountains’s insurance, reinsurance and other operating subsidiaries are expected to be premium and fee collections, commissions, net investment income, proceeds from sales, repayments and maturities of investments, contributions from holding companies and capital raising activities. The primary uses of cash are expected to be claim payments, policy acquisition costs, general and administrative expenses, broker commission expenses, cost of sales, purchases of investments, payments to tax authorities, payments on and repurchases/retirements of debt obligations, distributions to holding companies, distributions to noncontrolling interest holders and, from time to time, purchases of operating subsidiaries.

Both internal and external forces influence White Mountains’s financial condition, results of operations and cash flows. Premium and fee collections, investment returns, claim payments and cost of sales may be impacted by changing rates of inflation and other economic conditions. Some time may lapse between the occurrence of an insured loss, the reporting of the loss to White Mountains’s insurance and reinsurance operating subsidiaries and the settlement of the liability for that loss. The exact timing of the payment of losses cannot be predicted with certainty. White Mountains’s insurance and reinsurance operating subsidiaries maintain portfolios of invested assets with varying maturities and a substantial amount of cash and short-term investments to provide adequate liquidity for the payment of claims.

Management believes that White Mountains’s cash balances, cash flows from operations and routine sales and maturities of investments are adequate to meet expected cash requirements for the foreseeable future at both a holding company and insurance, reinsurance and other operating subsidiary level.

### Dividend Capacity

Following is a description of the dividend capacity of White Mountains’s insurance and reinsurance and other operating subsidiaries:

### Ark/WM Outrigger

During any 12-month period, GAIL, a class 4 licensed Bermuda insurer, has the ability to (i) make capital distributions of up to 15% of its total statutory capital reported in the previous year’s statutory financial statements, or (ii) make dividend payments of up to 25% of its total statutory capital and surplus reported in the previous year’s statutory financial statements, without prior approval of Bermuda regulatory authorities. Accordingly, GAIL will have the ability to pay a dividend of up to $272 million during 2024, which is equal to 25% of its December 31, 2023 statutory capital and surplus of $1,088 million, subject to meeting all appropriate liquidity and solvency requirements. During the six months ended June 30, 2024, GAIL did not pay any dividends to its immediate parent.

During the six months ended June 30, 2024, Ark declared and paid a $33 million dividend to its shareholders, including $24 million that was paid to White Mountains. As of June 30, 2024, Ark and its intermediate holding companies had $6 million of net unrestricted cash and short-term investments outside of its regulated and unregulated insurance and reinsurance operating subsidiaries.

WM Outrigger Re is a special purpose insurer subject to regulation and supervision by the BMA. WM Outrigger Re does not require regulatory approval to pay dividends, however, its dividend capacity is limited to amounts held outside of the collateral trust pursuant to the reinsurance agreements with GAIL. As of June 30, 2024, WM Outrigger Re had less than $1 million of net unrestricted cash and investments held outside the collateral trust. As of June 30, 2024, WM Outrigger Re had $223 million of statutory capital and surplus and $239 million of assets held in the collateral trusts pursuant to the reinsurance agreements with GAIL.

During January 2024, White Mountains received a return of capital of $68 million from WM Outrigger Re as a result of its reduced capital commitment relating to the 2024 underwriting year. White Mountains expects to receive an initial return of profits as well as a further return of capital from the 2023 underwriting year beginning in the third quarter of 2024.

### HG Global/BAM

As of June 30, 2024, HG Global had $619 million face value of preferred shares outstanding, of which White Mountains owned 96.9%. Holders of the HG Global preferred shares are entitled to receive cumulative dividends at a fixed annual rate of 6.0% on a quarterly basis, payable when and if declared by HG Global. As of June 30, 2024, HG Global has accrued $444 million of dividends payable to holders of its preferred shares, $431 million of which is payable to White Mountains and is eliminated in consolidation. As of June 30, 2024, HG Global and its subsidiaries had less than $1 million of net unrestricted cash outside of HG Re.

HG Re is a special purpose insurer subject to regulation and supervision by the BMA. HG Re does not require regulatory approval to pay dividends, however, its dividend capacity is limited to amounts held outside of the Collateral Trusts pursuant to the FLRT with BAM. As of June 30, 2024, HG Re had $1 million of net unrestricted cash and investments. As of June 30, 2024, HG Re had $136 million of accrued interest on the BAM Surplus Notes held outside the Collateral Trusts. As of June 30, 2024, HG Re had $804 million of statutory capital and surplus and $945 million of assets held in the Collateral Trusts.

On a monthly basis, BAM deposits cash equal to ceded premiums, net of ceding commissions, due to HG Re under the FLRT directly into the Regulation 114 Trust. The Regulation 114 Trust target balance is equal to HG Re’s unearned premiums and unpaid loss and LAE reserves, if any. If, at the end of any quarter, the Regulation 114 Trust balance is below the target balance, funds will be withdrawn from the Supplemental Trust and deposited into the Regulation 114 Trust in an amount equal to the shortfall. If, at the end of any quarter, the Regulation 114 Trust balance is above 102% of the target balance, funds will be withdrawn from the Regulation 114 Trust and deposited into the Supplemental Trust.

The Supplemental Trust Target Balance is $603 million, less the amount of cash and securities in the Regulation 114 Trust in excess of its target balance. If, at the end of any quarter, the Supplemental Trust balance exceeds the Supplemental Trust Target Balance, such excess may be distributed to HG Re. The distribution will be made first as an assignment of accrued interest on the BAM Surplus Notes and second in cash and/or fixed income securities. As the BAM Surplus Notes are repaid over time, the BAM Surplus Notes will be replaced in the Supplemental Trust by cash and fixed income securities. The Supplemental Trust balance as of June 30, 2024 was $604 million.

As of June 30, 2024, the Collateral Trusts held assets of $945 million, which included $609 million of cash and investments, $317 million of BAM Surplus Notes and $19 million of interest receivable on the BAM Surplus Notes.

Through June 30, 2024, the interest rate on the BAM Surplus Notes is a variable rate equal to the one-year U.S. Treasury rate plus 300 basis points, set annually. Accordingly, in 2024 the interest rate on the BAM Surplus Notes was 8.2% through June 30, 2024. Effective July 1, 2024 and through maturity, HG Global and BAM amended the interest rate on the BAM Surplus Notes to be 10.0%, with a higher proportion of each payment to be applied to outstanding principal.

Under its agreements with HG Global, BAM is required to seek regulatory approval to pay principal and interest on the BAM Surplus Notes only to the extent that its remaining qualified statutory capital and other capital resources continue to support its outstanding obligations, its business plan and its “AA/stable” financial strength rating from Standard & Poor’s. No payment of principal or interest on the BAM Surplus Notes may be made without the approval of the NYDFS.

During the six months ended June 30, 2024, BAM made an $8 million cash payment of principal and interest on the BAM Surplus Notes held by HG Global. Of this payment, $5 million was a repayment of principal held in the Supplement Trust, less than $1 million was a payment of accrued interest held in the Supplemental Trust and $3 million was a payment of accrued interest held outside the Supplemental Trust.

See **Note 10 — “Municipal Bond Guarantee Insurance.”**

### Kudu

During the six months ended June 30, 2024, Kudu distributed $10 million to unitholders, substantially all of which was paid to White Mountains. As of June 30, 2024, Kudu had $24 million of net unrestricted cash and short-term investments.

### Bamboo

During any 12-month period, Bamboo Captive, a class 2 licensed Bermuda insurer, has the ability to make capital distributions of up to 15% of its total statutory capital reported in the previous year’s statutory financial statements without prior approval of Bermuda regulatory authorities. Accordingly, Bamboo Captive will have the ability to pay a dividend of up to $1 million during 2024, which is equal to 15% of its December 31, 2023 statutory capital surplus of $5 million, subject to meeting all appropriate liquidity and solvency requirements. During the six months ended June 30, 2024, Bamboo Captive did not pay any dividends to its immediate parent. As of June 30, 2024, Bamboo Captive had $1 million of net unrestricted cash and short-term investments.

As of June 30, 2024, Bamboo had $22 million of net unrestricted cash and short-term investments outside of Bamboo Captive.

### Other Operations

During the six months ended June 30, 2024, White Mountains paid a $3 million common share dividend. As of June 30, 2024, the Company and its intermediate holding companies had $464 million of net unrestricted cash, short-term investments and fixed maturity investments, $235 million of MediaAlpha common stock, $209 million of common equity securities and $391 million of private equity and hedge funds, ILS funds and certain unconsolidated entities.

### Financing

The following table presents White Mountains’s capital structure as of June 30, 2024 and December 31, 2023:

*$ in Millions*

|  | June 30, 2024 | December 31, 2023 |
| --- | ---: | ---: |
| Ark 2007 Subordinated Notes (1) | **$—** | $30.0 |
| Ark 2021 Subordinated Notes (1)(2) | **155.0** | 155.5 |
| HG Global Senior Notes (1)(2) | **147.2** | 146.9 |
| Kudu Credit Facility (1)(2) | **203.3** | 203.8 |
| Other Operations debt (1)(2) | **24.7** | 28.4 |
| Total debt | **530.2** | 564.6 |
| Noncontrolling interests—excluding BAM | **603.1** | 460.9 |
| Total White Mountains’s common shareholders’ equity | **4,422.6** | 4,240.5 |
| Total capital | **5,555.9** | 5,266.0 |
| HG Global’s unearned premium reserve (3) | **271.7** | 265.4 |
| HG Global’s net deferred acquisition costs (3) | **(78.5)** | (76.5) |
| Time-value discount on expected future payments on the BAM Surplus Notes (3) | **(84.7)** | (87.9) |
| Total adjusted capital | **$5,664.4** | $5,367.0 |
| Total debt to total capital | **9.5%** | 10.7% |
| Total debt to total adjusted capital | **9.4%** | 10.5% |

(1) See **Note 7 — “Debt”** for details of debt arrangements.

(2) Net of unamortized issuance costs and, where applicable, the original issue discount.

(3) Amount reflects White Mountains’s preferred share ownership in HG Global of 96.9%.

Management believes that White Mountains has the flexibility and capacity to obtain funds externally through debt or equity financing on both a short-term and long-term basis. However, White Mountains can provide no assurance that, if needed, it would be able to obtain additional debt or equity financing on satisfactory terms, if at all.

It is possible that, in the future, one or more of the rating agencies may lower White Mountains’s existing ratings. If one or more of its ratings were lowered, White Mountains could incur higher borrowing costs on future borrowings and its ability to access the capital markets could be impacted.

### Covenant Compliance

As of June 30, 2024, White Mountains was in compliance in all material respects with all of the covenants under its debt instruments.

### Share Repurchase Programs

White Mountains’s Board of Directors has authorized the Company to repurchase its common shares from time to time, subject to market conditions. The repurchase authorizations do not have a stated expiration date. As of June 30, 2024, White Mountains may repurchase an additional 301,014 shares under these Board authorizations. In addition, from time to time, White Mountains has also repurchased its common shares through self-tender offers that were separately approved by its Board of Directors.

During the six months ended June 30, 2024, White Mountains repurchased and retired 5,269 of its common shares for $8 million at an average share price of $1,505, which was approximately 85% of White Mountains’s adjusted book value per share as of June 30, 2024. All of the shares White Mountains repurchased in the first six months of 2024 were to satisfy employee income tax withholding pursuant to employee benefit plans, which do not reduce the amount available under the Board repurchase authorizations.

During the six months ended June 30, 2023, White Mountains repurchased and retired 24,165 of its common shares for $33 million at an average share price of $1,355, which was approximately 86% of White Mountains’s adjusted book value per share as of June 30, 2023. Of the shares White Mountains repurchased in the first six months of 2023, 4,629 were to satisfy employee income tax withholding pursuant to employee benefit plans, which do not reduce the amount available under the Board repurchase authorizations.

### Cash Flows

Detailed information concerning White Mountains’s cash flows from continuing operations during the six months ended June 30, 2024 and 2023 follows:

### Cash flows from operations for the six months ended June 30, 2024 and June 30, 2023

Net cash provided from operations was $253 million for the six months ended June 30, 2024 compared to $157 million for the six months ended June 30, 2023. The increase in cash provided from operations was driven primarily by cash provided from operations at Ark, Kudu and Bamboo in 2024. As of June 30, 2024, the Company and its intermediate holding companies had $464 million of net unrestricted cash, short-term investments and fixed maturity investments, $235 million of MediaAlpha common stock, $209 million of common equity securities and $391 million of private equity funds, hedge funds, ILS funds and unconsolidated entities.

### Cash flows from investing and financing activities for the six months ended June 30, 2024

#### Financing and Other Capital Activities

During the six months ended June 30, 2024, the Company declared and paid a $3 million cash dividend to its common shareholders.

During the six months ended June 30, 2024, White Mountains repurchased and retired 5,269 of its common shares for $8 million, all of which were to satisfy employee income tax withholding pursuant to employee benefit plans.

During the six months ended June 30, 2024, Ark repaid the outstanding balance of $30 million and extinguished the Ark 2007 Subordinated Notes.

During the six months ended June 30, 2024, BAM received $26 million in MSC.

#### Acquisitions and Dispositions

On January 2, 2024, White Mountains closed the Bamboo Transaction in accordance with the terms of the Bamboo Merger Agreement, investing $297 million of equity into Bamboo, which included the contribution of $36 million to retire Bamboo’s legacy credit facility and the contribution of $20 million of primary capital.

### Cash flows from investing and financing activities for the six months ended June 30, 2023

#### Financing and Other Capital Activities

During the six months ended June 30, 2023, the Company declared and paid a $3 million cash dividend to its common shareholders.

During the six months ended June 30, 2023, White Mountains repurchased and retired 24,165 of its common shares for $33 million. Of the shares White Mountains repurchased in the first three months of 2023, 4,629 were to satisfy employee income tax withholding pursuant to employee benefit plans.

During the six months ended June 30, 2023, BAM received $27 million in MSC.

During the six months ended June 30, 2023, Kudu borrowed $12 million in term loans under the Kudu Credit Facility.

During the six months ended June 30, 2023, Kudu repaid $17 million in term loans under the Kudu Credit Facility.

### NON-GAAP FINANCIAL MEASURES

This report includes ten non-GAAP financial measures that have been reconciled from their most comparable GAAP financial measures.

### Adjusted book value per share

Adjusted book value per share is a non-GAAP financial measure, which is derived by adjusting (i) the GAAP book value per share numerator and (ii) the common shares outstanding denominator, as described below.

The GAAP book value per share numerator is adjusted (i) to add back the unearned premium reserve, net of deferred acquisition costs, at HG Global and (ii) to include a discount for the time value of money arising from the modeled timing of cash payments of principal and interest on the BAM Surplus Notes.

The value of HG Global’s unearned premium reserve, net of deferred acquisition costs, was $199 million, $196 million, $195 million, and $182 million as of June 30, 2024, March 31, 2024, December 31, 2023 and June 30, 2023, respectively.

Under GAAP, White Mountains is required to carry the BAM Surplus Notes, including accrued interest, at nominal value with no consideration for time value of money. Based on a debt service model that forecasts operating results for BAM through maturity of the BAM Surplus Notes, the present value of the BAM Surplus Notes, including accrued interest and using an 8% discount rate, was estimated to be $87 million, $89 million, $91 million and $95 million less than the nominal GAAP carrying values as of June 30, 2024, March 31, 2024, December 31, 2023 and June 30, 2023, respectively.

White Mountains believes these adjustments are useful to management and investors in analyzing the intrinsic value of HG Global, including the value of the in-force business at HG Re, HG Global’s reinsurance subsidiary, and the value of the BAM Surplus Notes.

The denominator used in the calculation of adjusted book value per share equals the number of common shares outstanding, adjusted to exclude unearned restricted common shares, the compensation cost of which, at the date of calculation, has yet to be amortized. Restricted common shares are earned on a straight-line basis over their vesting periods. The reconciliation of GAAP book value per share to adjusted book value per share is included on page 49.

### Kudu’s EBITDA and adjusted EBITDA

Kudu's EBITDA and adjusted EBITDA are non-GAAP financial measures. EBITDA is a non-GAAP financial measure that adds back interest expense on debt, income tax (expense) benefit, depreciation and amortization of other intangible assets to GAAP net income (loss). Adjusted EBITDA is a non-GAAP financial measure that excludes certain other items in GAAP net income (loss) in addition to those added back to calculate EBITDA. The items relate to (i) net realized and unrealized investment gains (losses) on Kudu's Participation Contracts, (ii) non-cash equity-based compensation expense and (iii) transaction expenses. A description of each item follows:

- *Net realized and unrealized investment gains (losses)* - Represents net unrealized investment gains and losses on Kudu’s Participation Contracts, which are recorded at fair value under GAAP, and realized investment gains and losses on Kudu’s Participation Contracts sold during the period.
- *Non-cash equity-based compensation expense* - Represents non-cash expenses related to Kudu’s management compensation that are settled with equity units in Kudu.
- *Transaction expenses* - Represents costs directly related to Kudu’s mergers and acquisitions activity, such as external lawyer, banker, consulting and placement agent fees, which are not capitalized and are expensed under GAAP.

White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Kudu’s performance. The reconciliation of Kudu’s GAAP net income (loss) to EBITDA and adjusted EBITDA is included on page 68.

### Bamboo’s MGA pre-tax income (loss), MGA net income (loss), MGA EBITDA and MGA adjusted EBITDA

Bamboo’s MGA pre-tax income (loss), MGA net income (loss), MGA EBITDA and MGA adjusted EBITDA are non-GAAP financial measures.

MGA pre-tax income (loss) and MGA net income (loss) are non-GAAP financial measures that exclude the results of the Bamboo Captive, which is consolidated under GAAP, from Bamboo’s consolidated GAAP pre-tax income (loss) and net income (loss). The following table presents the reconciliation from Bamboo’s consolidated GAAP pre-tax income (loss) to MGA pre-tax income (loss):

| Millions | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 |
| --- | ---: | ---: |
| Bamboo’s consolidated GAAP pre-tax income (loss) | **$6.4** | **$7.3** |
| Remove pre-tax (income) loss, Bamboo Captive | **(.4)** | **—** |
| MGA pre-tax income (loss) | **$6.0** | **$7.3** |

MGA EBITDA is a non-GAAP financial measure that adds back interest expense on debt, income tax (expense) benefit, depreciation and amortization of other intangible assets to MGA net income (loss). MGA adjusted EBITDA is a non-GAAP financial measure that excludes certain other items in GAAP net income (loss) in addition to those added back to calculate MGA EBITDA. The items relate to (i) non-cash equity-based compensation expense, (ii) software implementation expenses and (iii) restructuring expenses. A description of each item follows:

- *Non-cash equity-based compensation expense* - Represents non-cash expenses related to Bamboo’s management compensation that are settled with equity units in Bamboo.
- *Software implementation expenses* - Represents costs directly related to Bamboo’s implementation of new software.
- *Restructuring expenses* - Represents costs directly related to Bamboo’s corporate restructuring and capital planning activities associated with the development of new markets.

White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Bamboo’s performance. See page 70 for the reconciliation of Bamboo’s consolidated GAAP net income (loss) to MGA net income (loss), MGA EBITDA and MGA adjusted EBITDA.

### Total consolidated portfolio return excluding MediaAlpha

Total consolidated portfolio return excluding MediaAlpha is a non-GAAP financial measure that removes the net investment income and net realized and unrealized investment gains (losses) from White Mountains’s investment in MediaAlpha. White Mountains believes this measure to be useful to management and investors by showing the underlying performance of White Mountains’s investment portfolio without regard to MediaAlpha.

The following tables present reconciliations from GAAP to the reported percentages for three and six months ended June 30, 2024 and 2023:

|  | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| Total consolidated portfolio return | **(0.1)%** | 0.9% | **4.5%** | 5.5% |
| Remove MediaAlpha | **2.3%** | 2.1% | **(1.0)%** | 0.6% |
| Total consolidated portfolio return excluding MediaAlpha | **2.2%** | 3.0% | **3.5%** | 6.1% |

### Total adjusted capital and total debt to total adjusted capital

Total capital at White Mountains is comprised of White Mountains’s common shareholders’ equity, debt and noncontrolling interests other than noncontrolling interests attributable to BAM. Total adjusted capital is a non-GAAP financial measure, which is derived by adjusting total capital (i) to add back the unearned premium reserve, net of deferred acquisition costs, at HG Global and (ii) to include a discount for the time value of money arising from the expected timing of cash payments of principal and interest on the BAM Surplus Notes. Total debt to total adjusted capital is a non-GAAP financial measure that is derived using the ratio of total debt to total adjusted capital. The reconciliation of total capital to total adjusted capital is included on page 78.

### CRITICAL ACCOUNTING ESTIMATES

Refer to the Company’s 2023 Annual Report on Form 10-K for a complete discussion regarding White Mountains’s critical accounting estimates.

### FORWARD-LOOKING STATEMENTS

This report may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this report which address activities, events or developments which White Mountains expects or anticipates will or may occur in the future are forward-looking statements. The words “could”, “will”, “believe”, “intend”, “expect”, “anticipate”, “project”, “estimate”, “predict” and similar expressions are also intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to White Mountains’s:

- change in book value per share, adjusted book value per share or return on equity;
- business strategy;
- financial and operating targets or plans;
- incurred loss and LAE and the adequacy of its loss and LAE reserves and related reinsurance;
- projections of revenues, income (or loss), earnings (or loss) per share, EBITDA, adjusted EBITDA, dividends, market share or other financial forecasts of White Mountains or its businesses;
- expansion and growth of its business and operations; and
- future capital expenditures.

These statements are based on certain assumptions and analyses made by White Mountains in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to its expectations and predictions is subject to risks and uncertainties that could cause actual results to differ materially from expectations, including:

- the risks that are described from time to time in White Mountains’s filings with the Securities and Exchange Commission, including but not limited to White Mountains’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023;
- claims arising from catastrophic events, such as hurricanes, windstorms, earthquakes, floods, wildfires, tornadoes, tsunamis, severe weather, public health crises, terrorist attacks, war and war-like actions, explosions, infrastructure failures or cyber-attacks;
- recorded loss reserves subsequently proving to have been inadequate;
- the market value of White Mountains’s investment in MediaAlpha;
- the trends and uncertainties from the COVID-19 pandemic, including judicial interpretations on the extent of insurance coverage provided by insurers for COVID-19 pandemic related claims;
- business opportunities (or lack thereof) that may be presented to it and pursued;
- actions taken by rating agencies, such as financial strength or credit ratings downgrades or placing ratings on negative watch;
- the continued availability of capital and financing;
- the continued availability of fronting and reinsurance capacity;
- deterioration of general economic, market or business conditions, including due to outbreaks of contagious disease (including the COVID-19 pandemic) and corresponding mitigation efforts;
- competitive forces, including the conduct of other insurers;
- changes in domestic or foreign laws or regulations, or their interpretation, applicable to White Mountains, its competitors or its customers; and
- other factors, most of which are beyond White Mountains’s control.

Consequently, all of the forward-looking statements made in this report are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by White Mountains will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, White Mountains or its business or operations. White Mountains assumes no obligation to publicly update any such forward-looking statements, whether as a result of new information, future events or otherwise.

## Market risk

As filed, 153 characters.

Refer to White Mountains’s 2023 Annual Report on Form 10-K and in particular **Item 7A. - “Quantitative and Qualitative Disclosures About Market Risk.”**

## Controls and procedures

As filed, 665 characters.

The Principal Executive Officer (“PEO”) and the Principal Financial Officer (“PFO”) of White Mountains have evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of June 30, 2024. Based on that evaluation, the PEO and PFO have concluded that White Mountains’s disclosure controls and procedures are adequate and effective.

There were no changes to White Mountains’s internal control over financial reporting that occurred during the second quarter of 2024 that have materially affected, or are reasonably likely to materially affect, White Mountains’s internal control over financial reporting.

## Risk factors

As filed, 137 characters.

There have been no material changes to any of the risk factors previously disclosed in the Registrant’s 2023 Annual Report

on Form 10-K.

Filed Aug 7, 2024.
Source: SEC EDGAR, the filing index for accession 0000776867-24-000015. Last ingested by Listed: Nov 6, 2026, 02:06 ET. No prices; not investment advice.