# White Mountains Insurance Group Ltd: Form 10-Q for the period ended Mar 31, 2025

- Company: [White Mountains Insurance Group Ltd](/companies/wtm.md) (CIK 776867)
- Form: 10-Q
- Filed: 2025-05-07
- Accepted by EDGAR: May 7, 2025, 08:16 ET
- Period: 2025-03-31
- Accession: 0000776867-25-000006
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/776867/000077686725000006/wtm-20250331.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/776867/000077686725000006/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $577.8m | us-gaap:Revenues |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $7.5m | us-gaap:CostOfGoodsAndServicesSold |
| Interest expense | 3 months, 2025-01-01 to 2025-03-31 | $17.8m | us-gaap:InterestExpense |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | $9.6m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | $33.9m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | $13.19 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | $13.19 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 2,540,900 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | −$40.2m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Dividends paid | 3 months, 2025-01-01 to 2025-03-31 | $2.6m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 3 months, 2025-01-01 to 2025-03-31 | $9.9m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Total assets | at 2025-03-31 | $11.00bn | us-gaap:Assets |
| Total liabilities | at 2025-03-31 | $5.87bn | us-gaap:Liabilities |
| Long-term debt | at 2025-03-31 | $676.1m | us-gaap:LongTermDebt |
| Shareholders' equity | at 2025-03-31 | $4.51bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 94,035 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 72 for specific important factors that could cause actual results to differ materially from those contained in forward-looking statements.*

*The following discussion also includes 7 non-GAAP financial measures: (i) Kudu’s earnings before interest, taxes, depreciation and amortization (“EBITDA”), (ii) Kudu’s adjusted EBITDA, (iii) Bamboo’s MGA pre-tax income (loss), (iv) Bamboo’s MGA net income (loss), (v) Bamboo’s MGA EBITDA, (vi) Bamboo’s MGA adjusted EBITDA and (vii) total consolidated portfolio returns excluding MediaAlpha, that have been reconciled from their most comparable GAAP financial measures on page 70. White Mountains believes these measures to be useful in evaluating White Mountains’s financial performance and condition.*

### RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2025 and 2024

### Overview

White Mountains reported book value per share of $1,752 as of March 31, 2025, an increase of 0.4% in the first quarter of 2025, including dividends. Results in the first quarter of 2025 were driven primarily by solid results from White Mountains’s operating businesses and good investment returns, mostly offset by a decline in the MediaAlpha share price.

White Mountains reported book value per share of $1,742 as of March 31, 2024, an increase of 5% in the first quarter of 2024, including dividends. The increase in book value per share in the first quarter of 2024 was driven primarily by an increase in the MediaAlpha share price as well as solid operating and investment results.

Subsequent to the deconsolidation of BAM on July 1, 2024, the BAM Surplus Notes are carried at fair value under GAAP, and there is no longer a time value of money adjustment for adjusted book value purposes. As a result of this change, there was only one remaining adjustment to book value: the add back of the unearned premium reserve, net of deferred acquisition costs, at HG Global. Accordingly, White Mountains determined that it will no longer report adjusted book value per share beginning in 2025. The value of the net unearned premium reserve will continue to be disclosed within the HG Global segment reporting.

Comprehensive income attributable to common shareholders was $35 million in the first quarter of 2025 compared to $236 million in first quarter of 2024. Results in the first quarter of 2025 included $37 million of unrealized investment losses from White Mountains’s investment in MediaAlpha compared to $211 million of unrealized investment gains in the first quarter of 2024.

On April 1, 2025, White Mountains acquired a majority interest in Enterprise Electric, LLC d/b/a Enterprise Solutions, a provider of specialty electrical contracting services. This is the first acquisition by WTM Partners. On April 10, 2025, White Mountains entered into an agreement to invest $150 million into BroadStreet Partners, Inc. (“BroadStreet”) through a special purpose investment vehicle alongside co-lead investors Ethos Capital LP and British Columbia Investment Management Corporation. BroadStreet is an insurance brokerage company with a presence in all 50 U.S. states and ten Canadian provinces. Including these deployments and expected operating company distributions, undeployed capital now stands at roughly $550 million.

The Ark/WM Outrigger segment’s combined ratio was 97% in the first quarter of 2025 compared to 91% in the first quarter of 2024. The Ark/WM Outrigger segment reported gross written premiums of $1,108 million, net written premiums of $728 million and net earned premiums of $358 million in the first quarter of 2025 compared to gross written premiums of $872 million, net written premiums of $598 million and net earned premiums of $303 million in the first quarter of 2024. The Ark/WM Outrigger segment reported pre-tax income of $46 million in the first quarter of 2025 compared to $43 million in the first quarter of 2024.

Ark’s combined ratio was 94% in both the first quarter of 2025 and 2024. Ark’s combined ratio included 25 points of catastrophe losses in the first quarter of 2025, driven by losses related to the January 2025 California wildfires of $75 million on a net basis after reinsurance and reinstatement premiums, compared to minimal catastrophe losses in the first quarter of 2024. Ark’s combined ratio included 14 points of net favorable prior year development in the first quarter of 2025 compared to slight net favorable prior year development in the first quarter of 2024. Net favorable development for the first quarter of 2025 was driven by the marine & energy and property lines of business.

Ark reported gross written premiums of $1,108 million, net written premiums of $690 million and net earned premiums of $346 million in the first quarter of 2025 compared to gross written premiums of $872 million, net written premiums of $564 million and net earned premiums of $293 million in the first quarter of 2024. Ark reported pre-tax income of $52 million in the first quarter of 2025 compared to $33 million in the first quarter of 2024. Ark’s results included net realized and unrealized investment gains of $30 million in the first quarter of 2025 compared to $11 million in the first quarter of 2024. Premium growth was driven primarily by property and specialty lines of business.

WM Outrigger Re’s combined ratio was 166% in the first quarter of 2025 compared to 32% in the first quarter of 2024. Catastrophe losses in the first quarter of 2025 included $19 million net of reinstatement premiums related to the California wildfires, while major catastrophe losses in the first quarter of 2024 were minimal. WM Outrigger Re reported gross and net written premiums of $38 million and net earned premiums of $12 million in the first quarter 2025 compared to gross and net written premiums of $34 million and net earned premiums of $10 million in the first quarter of 2024. Gross and net written premiums increased due to White Mountains’s larger capital commitment to WM Outrigger Re in 2025. WM Outrigger Re reported pre-tax income (loss) of $(6) million in the first quarter of 2025 compared to $10 million in the first quarter of 2024.

HG Global reported gross written premiums of $7 million and earned premiums of $8 million in the first quarter of 2025 compared to gross written premiums of $9 million and earned premiums of $7 million in the first quarter of 2024. HG Global’s total par value of policies assumed was $427 million in the first quarter of 2025 compared to $538 million in the first quarter of 2024. HG Global’s total gross pricing was 157 basis points in the first quarter of 2025 compared to 165 basis points in the first quarter of 2024. HG Global reported pre-tax income of $25 million in the first quarter of 2025 compared to $6 million in the first quarter of 2024. HG Global’s results included net realized and unrealized investment gains (losses) of $10 million in the first quarter of 2025 compared to $(7) million in the first quarter of 2024, driven by the movement of interest rates. The fair value of the BAM Surplus Notes increased to $389 million as of March 31, 2025 compared to $382 million as of December 31, 2024, resulting from approximately $8 million of accrued interest.

Kudu reported total revenues of $64 million, pre-tax income of $53 million and adjusted EBITDA of $16 million in the first quarter of 2025 compared to total revenues of $11 million, pre-tax income of $2 million and adjusted EBITDA of $14 million in the first quarter of 2024. Total revenues, pre-tax income and adjusted EBITDA included $19 million of net investment income in the first quarter of 2025 compared to $17 million in the first quarter of 2024. Total revenues and pre-tax income also included $44 million of net realized and unrealized investment gains (losses) in the first quarter of 2025 compared to $(7) million in the first quarter of 2024.

Kudu deployed $69 million, including transaction costs, into one new asset management firm in 2025. As of March 31, 2025, Kudu has deployed $1.06 billion, including transaction costs, into 28 asset and wealth management firms globally, including three that have been exited. As of March 31, 2025, the asset and wealth management firms have combined assets under management (“AUM”) of approximately $128 billion, spanning a range of asset classes.

Bamboo reported commission and fee revenues of $44 million and pre-tax income of $6 million in the first quarter of 2025 compared to commission and fee revenues of $22 million and pre-tax income of $1 million in the first quarter of 2024. Bamboo reported MGA pre-tax income of $10 million and MGA adjusted EBITDA of $20 million in the first quarter of 2025 compared to MGA pre-tax income of $2 million and MGA adjusted EBITDA of $6 million in the first quarter of 2024. Managed premiums, which represent the total premium placed by Bamboo, were $147 million in the first quarter of 2025 compared to $90 million in the first quarter of 2024. The increase in managed premiums was driven by growth in the renewal book as well as new business volume.

As of March 31, 2025, White Mountains owned 17.9 million shares of MediaAlpha, representing a 27% basic ownership interest (24% on a fully-diluted/fully-converted basis). As of March 31, 2025, MediaAlpha’s share price was $9.24 per share, which decreased from $11.29 per share as of December 31, 2024. The carrying value of White Mountains’s investment in MediaAlpha was $165 million as of March 31, 2025 compared to $202 million at December 31, 2024. 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.

White Mountains’s total consolidated portfolio return on invested assets was 1.7% in the first quarter of 2025, which included $37 million of unrealized investment losses from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 2.3% in the first quarter of 2025, driven primarily by net investment income and net unrealized investment gains from the other-long term investments and fixed income portfolios.

White Mountains’s total consolidated portfolio return on invested assets was 4.6% in the first quarter of 2024, which included $211 million of unrealized investment gains from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 1.2% in the first quarter of 2024, driven primarily by net investment income from the fixed income and other long-term investments portfolios and net unrealized investment gains from common equity securities, partially offset by net realized and unrealized investment losses in the fixed income portfolio.

### Book Value Per Share

The following table presents White Mountains’s book value per share as of March 31, 2025, December 31, 2024 and March 31, 2024:

| Book value per share numerator (in millions): | March 31, 2025 | December 31, 2024 | March 31, 2024 |
| --- | ---: | ---: | ---: |
| White Mountains’s common shareholders’ equity | **$4,509.6** | $4,483.7 | $4,470.4 |
| **Book value per share denominator (in thousands of shares):** |  |  |  |
| Common shares outstanding | **2,573.7** | 2,568.1 | 2,565.7 |
| **Book value per share** | **$1,752.17** | $1,745.87 | $1,742.33 |
| **Year-to-date dividends paid per share** | **$1.00** | $1.00 | $1.00 |

### Goodwill and Other Intangible Assets

The following table presents goodwill and other intangible assets that are included in White Mountains’s book value as of March 31, 2025, December 31, 2024 and March 31, 2024:

| Millions Goodwill: | March 31, 2025 | December 31, 2024 | March 31, 2024 |
| --- | ---: | ---: | ---: |
| Ark | **$116.8** | $116.8 | $116.8 |
| Kudu | **7.6** | 7.6 | 7.6 |
| Bamboo | **270.4** | 270.4 | 270.4 |
| Other Operations | **44.4** | 44.4 | 44.4 |
| Total goodwill | **439.2** | 439.2 | 439.2 |
| **Other intangible assets:** |  |  |  |
| Ark | **175.7** | 175.7 | 175.7 |
| Kudu | **.3** | .4 | .6 |
| Bamboo | **80.6** | 84.6 | 96.8 |
| Other Operations | **19.3** | 20.4 | 24.3 |
| Total other intangible assets | **275.9** | 281.1 | 297.4 |
| Total goodwill and other intangible assets (1) | **715.1** | 720.3 | 736.6 |
| Goodwill and other intangible assets attributed to noncontrolling interests (2) | **(189.2)** | (190.5) | (194.9) |
| **Goodwill and other intangible assets included in White Mountains’s common shareholders’ equity** | **$525.9** | $529.8 | $541.7 |

(1) See **Note 4 — “Goodwill and Other Intangible Assets”** on page 24 for details of other intangible assets.

(2) Amounts reflect the basic ownership percentage of the noncontrolling shareholders.

### Summary of Consolidated Results

The following table presents White Mountains’s consolidated financial results by industry for the three months ended March 31, 2025 and 2024:

| Millions Revenues: | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| P&C Insurance and Reinsurance revenues | **$413.2** | $336.8 |
| Financial Guarantee revenues | **32.1** | 7.9 |
| Asset Management revenues | **63.8** | 10.7 |
| P&C Insurance Distribution revenues | **61.4** | 31.1 |
| Other Operations revenues | **7.3** | 260.8 |
| Total revenues | **577.8** | 647.3 |
| **Expenses:** |  |  |
| P&C Insurance and Reinsurance expenses | **366.8** | 293.9 |
| Financial Guarantee expenses | **7.1** | 23.0 |
| Asset Management expenses | **10.4** | 9.0 |
| P&C Insurance Distribution expenses | **55.1** | 30.2 |
| Other Operations expenses | **66.0** | 58.6 |
| Total expenses | **505.4** | 414.7 |
| **Pre-tax income (loss):** |  |  |
| P&C Insurance and Reinsurance pre-tax income (loss) | **46.4** | 42.9 |
| Financial Guarantee pre-tax income (loss) | **25.0** | (15.1) |
| Asset Management pre-tax income (loss) | **53.4** | 1.7 |
| P&C Insurance Distribution pre-tax income (loss) | **6.3** | .9 |
| Other Operations pre-tax income (loss) | **(58.7)** | 202.2 |
| **Total pre-tax income (loss)** | **72.4** | 232.6 |
| Net income (loss): |  |  |
| Income tax (expense) benefit | **(9.6)** | (10.8) |
| **Net income (loss)** | **62.8** | 221.8 |
| Net (income) loss attributable to noncontrolling interests | **(28.9)** | 14.6 |
| **Net income (loss) attributable to White Mountains’s common shareholders** | **33.9** | 236.4 |
| **Comprehensive income (loss):** |  |  |
| Other comprehensive income (loss), net of tax | **2.0** | (.3) |
| **Comprehensive income (loss)** | **35.9** | 236.1 |
| Other comprehensive (income) loss attributable to noncontrolling interests | **(.8)** | .1 |
| **Comprehensive income (loss) attributable to White Mountains’s common shareholders** | **$35.1** | $236.2 |

50

### I. SUMMARY OF OPERATIONS BY SEGMENT

As of March 31, 2025, White Mountains conducted its operations through four reportable segments: (1) Ark/WM Outrigger, (2) HG Global, (3) Kudu and (4) Bamboo, with our 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.

Effective July 1, 2024, White Mountains no longer consolidates BAM. Through June 30, 2024, BAM’s results of operations were presented within the HG Global segment. See **Note 2 - “Significant Transactions.”**

A discussion of White Mountains’s consolidated investment operations is included after the discussion of operations by segment.

### Ark/WM Outrigger

Ark is a specialty property and casualty insurance and reinsurance company that offers a wide range of niche insurance and reinsurance products, including property, specialty, marine & energy, accident & health and casualty. Ark underwrites select coverages through its two major subsidiaries in the United Kingdom and Bermuda.

Ark sponsored the formation of Outrigger Re Ltd., a Bermuda company registered as a special purpose insurer and segregated accounts company, to provide collateralized reinsurance protection on Ark’s Bermuda global property catastrophe excess of loss portfolio. White Mountains consolidates its segregated account of Outrigger Re Ltd., WM Outrigger Re, in its financial statements.

The following tables present the components of pre-tax income (loss) included in the Ark/WM Outrigger segment for the three months ended March 31, 2025 and 2024:

| Millions | Three Months Ended March 31, 2025 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | **$416.8** | **$—** | **$—** | **$416.8** |
| Assumed written premiums | **690.8** | **37.5** | **(37.5)** | **690.8** |
| Gross written premiums | **1,107.6** | **37.5** | **(37.5)** | **1,107.6** |
| Ceded written premiums | **(417.4)** | **—** | **37.5** | **(379.9)** |
| Net written premiums | **$690.2** | **$37.5** | **$—** | **$727.7** |
| Earned insurance premiums | **$346.0** | **$12.0** | **$—** | **$358.0** |
| Net investment income | **21.3** | **2.2** | **—** | **23.5** |
| Net realized and unrealized investment gains (losses) | **29.6** | **(.1)** | **—** | **29.5** |
| Other revenues | **2.2** | **—** | **—** | **2.2** |
| Total revenues | **399.1** | **14.1** | **—** | **413.2** |
| Loss and LAE | **213.3** | **20.2** | **—** | **233.5** |
| Acquisition expenses | **83.8** | **(.3)** | **—** | **83.5** |
| General and administrative expenses - other underwriting | **28.5** | **—** | **—** | **28.5** |
| General and administrative expenses - all other | **7.3** | **.1** | **—** | **7.4** |
| Change in fair value of contingent consideration | **9.7** | **—** | **—** | **9.7** |
| Interest expense | **4.2** | **—** | **—** | **4.2** |
| Total expenses | **346.8** | **20.0** | **—** | **366.8** |
| **Pre-tax income (loss)** | **$52.3** | **$(5.9)** | **$—** | **$46.4** |

51

| Millions | Three Months Ended March 31, 2024 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Direct written premiums | $285.0 | $— | $— | $285.0 |
| Assumed written premiums | 587.1 | 34.3 | (34.3) | 587.1 |
| Gross written premiums | 872.1 | 34.3 | (34.3) | 872.1 |
| Ceded written premiums | (308.4) | — | 34.3 | (274.1) |
| Net written premiums | $563.7 | $34.3 | $— | $598.0 |
| Earned insurance premiums | $292.5 | $10.3 | $— | $302.8 |
| Net investment income | 17.0 | 2.9 | — | 19.9 |
| Net realized and unrealized investment gains (losses) | 10.6 | — | — | 10.6 |
| Other revenues | 3.5 | — | — | 3.5 |
| Total revenues | 323.6 | 13.2 | — | 336.8 |
| Loss and LAE | 179.3 | .7 | — | 180.0 |
| Acquisition expenses | 63.7 | 2.6 | — | 66.3 |
| General and administrative expenses - other underwriting | 30.5 | — | — | 30.5 |
| General and administrative expenses - all other | 11.7 | — | — | 11.7 |
| Change in fair value of contingent consideration | — | — | — | — |
| Interest expense | 5.4 | — | — | 5.4 |
| Total expenses | 290.6 | 3.3 | — | 293.9 |
| **Pre-tax income (loss)** | $33.0 | $9.9 | $— | $42.9 |

### Ark/WM Outrigger Results—Three Months Ended March 31, 2025 versus Three Months Ended March 31, 2024

The Ark/WM Outrigger segment’s combined ratio was 97% in the first quarter of 2025 compared to 91% in the first quarter of 2024. The Ark/WM Outrigger segment reported gross written premiums of $1,108 million, net written premiums of $728 million and net earned premiums of $358 million in the first quarter of 2025 compared to gross written premiums of $872 million, net written premiums of $598 million and net earned premiums of $303 million in the first quarter of 2024. The Ark/WM Outrigger segment reported pre-tax income of $46 million in the first quarter of 2025 compared to $43 million in the first quarter of 2024.

Ark’s combined ratio was 94% in both the first quarter of 2025 and 2024. Ark’s combined ratio included 25 points of catastrophe losses in the first quarter of 2025, driven by losses related to the January 2025 California wildfires of $75 million on a net basis after reinsurance and reinstatement premiums, compared to minimal catastrophe losses in the first quarter of 2024. Ark’s combined ratio included 14 points of net favorable prior year development in the first quarter of 2025 compared to slight net favorable prior year development in the first quarter of 2024. Net favorable development for the first quarter of 2025 was driven by the marine & energy and property lines of business.

Ark reported gross written premiums of $1,108 million, net written premiums of $690 million and net earned premiums of $346 million in the first quarter of 2025 compared to gross written premiums of $872 million, net written premiums of $564 million and net earned premiums of $293 million in the first quarter of 2024.

Ark reported pre-tax income of $52 million in the first quarter of 2025 compared to $33 million in the first quarter of 2024. Ark’s results included net realized and unrealized investment gains of $30 million in the first quarter of 2025, driven primarily by net unrealized investment gains from common equity securities and fixed maturity securities due to foreign currency gains and the decrease in interest rates, compared to $11 million in the first quarter of 2024, driven primarily by net unrealized investment gains on common equity securities. Ark’s results for the first quarter of 2025 also included a $10 million expense related to the increase in the fair value of its contingent consideration liability compared to no expense in the first quarter of 2024.

WM Outrigger Re’s combined ratio was 166% in the first quarter of 2025 compared to 32% in the first quarter of 2024. Catastrophe losses in 2025 included $19 million net of reinstatement premiums related to the California wildfires, while major catastrophe losses in 2024 were minimal. WM Outrigger Re’s losses related to the California wildfires were $2 million for underwriting year 2025 and $17 million for underwriting year 2024. In the first quarter of 2025, WM Outrigger Re’s combined ratio was 72% for underwriting year 2025 and 256% for underwriting year 2024 compared to 26% for underwriting year 2024 and 42% for underwriting year 2023 in the first quarter of 2024.

WM Outrigger Re reported gross and net written premiums of $38 million and net earned premiums of $12 million in the first quarter of 2025 compared to gross and net written premiums of $34 million and net earned premiums of $10 million in the first quarter of 2024. Gross and net written premiums increased due to White Mountains’s larger capital commitment to WM Outrigger Re in 2025. WM Outrigger Re reported pre-tax income (loss) of $(6) million in the first quarter of 2025, of which $4 million was attributable to underwriting year 2025 and $(10) million to underwriting year 2024, compared to $10 million in the first quarter of 2024, of which $7 million was attributable to underwriting year 2024 and $3 million to underwriting year 2023. Through March 31, 2025, WM Outrigger Re generated pre-tax income of $29 million from the 2024 underwriting year. This included losses of $17 million net of reinstatement premiums related to the California wildfires.

The following tables present the Ark/WM Outrigger segment’s insurance premiums, insurance expenses and insurance ratios for the three months ended March 31, 2025 and 2024:

*$ in Millions*

| Insurance premiums: | Three Months Ended March 31, 2025 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Gross written premiums | **$1,107.6** | **$37.5** | **$(37.5)** | **$1,107.6** |
| Net written premiums | **$690.2** | **$37.5** | **$—** | **$727.7** |
| Net earned premiums | **$346.0** | **$12.0** | **$—** | **$358.0** |
| Insurance expenses: |  |  |  |  |
| Loss and LAE | **$213.3** | **$20.2** | **$—** | **$233.5** |
| Acquisition expenses | **83.8** | **(.3)** | **—** | **83.5** |
| Other underwriting expenses (1) | **28.5** | **—** | **—** | **28.5** |
| Total insurance expenses | **$325.6** | **$19.9** | **$—** | **$345.5** |
| Insurance ratios: |  |  |  |  |
| Loss and LAE | **61.7%** | **168.3%** | **—%** | **65.2%** |
| Acquisition expense | **24.2** | **(2.5)** | **—** | **23.3** |
| Other underwriting expense | **8.2** | **—** | **—** | **8.0** |
| Combined Ratio | **94.1%** | **165.8%** | **—%** | **96.5%** |

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

*$ in Millions*

| Insurance premiums: | Three Months Ended March 31, 2024 Ark | WM Outrigger Re | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: |
| Gross written premiums | $872.1 | $34.3 | $(34.3) | $872.1 |
| Net written premiums | $563.7 | $34.3 | $— | $598.0 |
| Net earned premiums | $292.5 | $10.3 | $— | $302.8 |
| Insurance expenses: |  |  |  |  |
| Loss and LAE | $179.3 | $.7 | $— | $180.0 |
| Acquisition expenses | 63.7 | 2.6 | — | 66.3 |
| Other underwriting expenses (1) | 30.5 | — | — | 30.5 |
| Total insurance expenses | $273.5 | $3.3 | $— | $276.8 |
| Insurance ratios: |  |  |  |  |
| Loss and LAE | 61.3% | 6.8% | —% | 59.4% |
| Acquisition expense | 21.8 | 25.2 | — | 21.9 |
| Other underwriting expense | 10.4 | — | — | 10.1 |
| Combined Ratio | 93.5% | 32.0% | —% | 91.4% |

(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 March 31, 2025 and 2024:

*$ in Millions*

| Insurance premiums: | Three Months Ended March 31, 2025 2025 Underwriting Year | 2024 Underwriting Year | Total | 2024 2024 Underwriting Year | 2023 Underwriting Year | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Gross written premiums | **$34.7** | **$2.8** | **$37.5** | $34.1 | $.2 | $34.3 |
| Net written premiums | **$34.7** | **$2.8** | **$37.5** | $34.1 | $.2 | $34.3 |
| Net earned premiums | **$5.9** | **$6.1** | **$12.0** | $6.0 | $4.3 | $10.3 |
| Combined Ratio | **71.8%** | **256.1%** | **165.8%** | 26.1% | 42.2% | 32.0% |
| Pre-tax income | **$3.7** | **$(9.6)** | **$(5.9)** | $7.3 | $2.6 | $9.9 |

#### Gross Written Premiums

Gross written premiums increased 27% to $1,108 million in the first quarter of 2025 compared to $872 million in the first quarter of 2024, with risk adjusted rate change of -2%. The increase in gross written premiums was driven primarily by the property and specialty lines of business. The risk adjusted rate change on the Outrigger Re Ltd. portfolio of global property reinsurance was -6% in the first quarter of 2025.

The following table presents the Ark/WM Outrigger segment’s gross written premiums by line of business for the three months ended March 31, 2025 and 2024:

| Millions | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Property | **$441.7** | $326.8 |
| Specialty | **315.7** | 234.1 |
| Marine & Energy | **243.8** | 229.0 |
| Accident & Health | **65.2** | 47.7 |
| Casualty | **41.2** | 34.5 |
| Total Gross Written Premium | **$1,107.6** | $872.1 |

54

### 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 March 31, 2025 and December 31, 2024:

| Millions Assets | March 31, 2025 Ark | WM Outrigger Re | Eliminations and Segment Adjustments | Total |
| --- | ---: | ---: | ---: | ---: |
| Fixed maturity investments, at fair value | **$1,582.1** | **$—** | **$—** | **$1,582.1** |
| Common equity securities, at fair value | **420.9** | **—** | **—** | **420.9** |
| Short-term investments, at fair value | **416.5** | **208.7** | **—** | **625.2** |
| Other long-term investments | **586.8** | **—** | **—** | **586.8** |
| Total investments | **3,006.3** | **208.7** | **—** | **3,215.0** |
| Cash | **160.5** | **—** | **—** | **160.5** |
| Reinsurance recoverables | **990.5** | **—** | **(70.1)** | **920.4** |
| Insurance premiums receivable | **1,272.6** | **46.2** | **(46.2)** | **1,272.6** |
| Deferred acquisition costs | **274.0** | **5.7** | **—** | **279.7** |
| Goodwill and other intangible assets | **292.5** | **—** | **—** | **292.5** |
| Other assets | **184.7** | **.1** | **—** | **184.8** |
| Total assets | **$6,181.1** | **$260.7** | **$(116.3)** | **$6,325.5** |
| Liabilities |  |  |  |  |
| Loss and LAE reserves | **$2,253.9** | **$40.3** | **$(40.3)** | **$2,253.9** |
| Unearned insurance premiums | **1,500.6** | **29.8** | **(29.8)** | **1,500.6** |
| Debt | **156.1** | **—** | **—** | **156.1** |
| Reinsurance payable | **432.0** | **—** | **(46.2)** | **385.8** |
| Contingent consideration | **165.0** | **—** | **—** | **165.0** |
| Other liabilities (1) | **226.5** | **—** | **—** | **226.5** |
| Total liabilities | **4,734.1** | **70.1** | **(116.3)** | **4,687.9** |
| Equity |  |  |  |  |
| White Mountains’s common shareholders’ equity | **1,031.0** | **190.6** | **—** | **1,221.6** |
| Noncontrolling interests | **416.0** | **—** | **—** | **416.0** |
| Total equity | **1,447.0** | **190.6** | **—** | **1,637.6** |
| Total liabilities and equity | **$6,181.1** | **$260.7** | **$(116.3)** | **$6,325.5** |

(1) Amount includes $29.8 of dividends payable that are eliminated in White Mountains’s consolidated financial statements. For segment reporting, Ark’s dividends payable included within other liabilities in the Ark/WM Outrigger segment are eliminated against the offsetting dividends receivable included within other assets in Other Operations.

| Millions Assets | December 31, 2024 Ark | WM Outrigger Re | Eliminations and Segment Adjustments | Total |
| --- | ---: | ---: | ---: | ---: |
| Fixed maturity investments, at fair value | $1,565.1 | $— | $— | $1,565.1 |
| Common equity securities, at fair value | 425.4 | — | — | 425.4 |
| Short-term investments, at fair value | 397.7 | 203.7 | — | 601.4 |
| Other long-term investments | 547.8 | — | — | 547.8 |
| Total investments | 2,936.0 | 203.7 | — | 3,139.7 |
| Cash | 141.1 | .1 | — | 141.2 |
| Reinsurance recoverables | 628.2 | — | (39.2) | 589.0 |
| Insurance premiums receivable | 768.6 | 30.9 | (30.9) | 768.6 |
| Deferred acquisition costs | 164.4 | .8 | — | 165.2 |
| Goodwill and other intangible assets | 292.5 | — | — | 292.5 |
| Other assets | 202.8 | — | — | 202.8 |
| Total assets | $5,133.6 | $235.5 | $(70.1) | $5,299.0 |
| Liabilities |  |  |  |  |
| Loss and LAE reserves | $2,127.5 | $34.9 | $(34.9) | $2,127.5 |
| Unearned insurance premiums | 853.3 | 4.3 | (4.3) | 853.3 |
| Debt | 154.5 | — | — | 154.5 |
| Reinsurance payable | 180.4 | — | (30.9) | 149.5 |
| Contingent consideration | 155.3 | — | — | 155.3 |
| Other liabilities | 224.7 | — | — | 224.7 |
| Total liabilities | 3,695.7 | 39.2 | (70.1) | 3,664.8 |
| Equity |  |  |  |  |
| White Mountains’s common shareholders’ equity | 1,027.5 | 196.3 | — | 1,223.8 |
| Noncontrolling interests | 410.4 | — | — | 410.4 |
| Total equity | 1,437.9 | 196.3 | — | 1,634.2 |
| Total liabilities and equity | $5,133.6 | $235.5 | $(70.1) | $5,299.0 |

56

### HG Global

HG Global was established to fund the startup of BAM and, through its reinsurance subsidiary HG Re, to provide up to 15%-of-par, first-loss reinsurance protection for policies underwritten by BAM.

The following table presents the components of pre-tax income (loss) included in the HG Global segment for the three months ended March 31, 2025 and 2024. The HG Global segment consists of HG Global, which includes HG Re and its other wholly-owned subsidiaries, and, prior to its deconsolidation on July 1, 2024, BAM. Through June 30, 2024, BAM’s results of operations were presented within the HG Global segment. See **Note 2 — “Significant Transactions.”**

| Millions | Three Months Ended March 31, 2025 HG Global | 2024 HG Global | BAM (1) | Eliminations | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| Direct written premiums | **$—** | $— | $10.5 | $— | $10.5 |
| Assumed written premiums | **6.7** | 8.9 | — | (8.9) | — |
| Gross written premiums | **6.7** | 8.9 | 10.5 | (8.9) | 10.5 |
| Ceded written premiums | **—** | — | (8.9) | 8.9 | — |
| Net written premiums | **$6.7** | $8.9 | $1.6 | $— | $10.5 |
| Earned insurance premiums | **$8.2** | $6.5 | $1.3 | $— | $7.8 |
| Net investment income | **6.3** | 5.4 | 4.3 | — | 9.7 |
| Net realized and unrealized investment gains (losses) | **10.0** | (7.3) | (2.8) | — | (10.1) |
| Interest income from BAM Surplus Notes | **7.5** | 6.6 | — | (6.6) | — |
| Other revenues | **.1** | — | .5 | — | .5 |
| Total revenues | **32.1** | 11.2 | 3.3 | (6.6) | 7.9 |
| Acquisition expenses | **1.9** | 1.8 | .4 | — | 2.2 |
| General and administrative expenses | **.6** | .4 | 16.9 | — | 17.3 |
| Interest expense (2) | **4.6** | 3.7 | — | — | 3.7 |
| Interest expense from BAM Surplus Notes | — | — | 6.6 | (6.6) | — |
| Total expenses | **7.1** | 5.9 | 23.9 | (6.6) | 23.2 |
| **Pre-tax income (loss)** | **$25.0** | $5.3 | $(20.6) | $— | $(15.3) |
| **Supplemental information:** |  |  |  |  |  |
| MSC collected (3) | $— | $— | $11.4 | $— | $11.4 |

(1) Effective July 1, 2024, White Mountains no longer consolidates BAM. For the period from January 1, 2024 through June 30, 2024, BAM’s results of operations were presented within the HG Global segment.

(2) For the three months ended March 31, 2024, the 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 segment is eliminated against the offsetting intercompany interest income included within Other Operations.

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

### HG Global Results—Three Months Ended March 31, 2025 versus Three Months Ended March 31, 2024

HG Global reported gross written premiums of $7 million and earned premiums of $8 million in the first quarter of 2025 compared to gross written premiums of $9 million and earned premiums of $7 million in the first quarter of 2024. HG Global reported gross written premiums net of ceding commission paid of $5 million in the first quarter of 2025 compared to $6 million in the first quarter of 2024. HG Global’s total par value of policies assumed, which represents its first-loss exposure on policies assumed from BAM, was $427 million in the first quarter of 2025, of which $327 million was in the primary market and $100 million in the secondary market, compared to $538 million in the first quarter of 2024, of which $483 million was in the primary market and $56 million in the secondary market. The decline in primary market par assumed was driven by lower penetration rates and BAM’s focus on higher return transactions. The increase in secondary market par assumed was driven by increased volatility in the municipal bond market, which created strong demand for bond insurance.

HG Global’s total gross pricing was 157 basis points in the first quarter of 2025, compared to 165 basis points in the first quarter of 2024. Pricing in the primary market decreased to 116 basis points in the first quarter of 2025 compared to 143 basis points in the first quarter of 2024, due to several large, high-priced issuances insured by BAM in the first quarter of 2024. Pricing in the secondary market, which is more transaction specific than pricing in the primary market, decreased to 289 basis points in the first quarter of 2025 compared to 360 basis points in the first quarter of 2024. Total pricing net of ceding commission paid decreased to 110 basis points in the first quarter of 2025 compared to 117 basis points in the first quarter of 2024.

The following table presents HG Global’s par value assumed, reinsurance premiums and pricing for the three months ended March 31, 2025 and 2024:

| HG Global Par value assumed: | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Par value of primary market policies assumed (1) | **$327.0** | $482.6 |
| Par value of secondary market policies assumed (1) | **100.3** | 55.5 |
| Total par value of policies assumed | **$427.3** | $538.1 |
| Reinsurance premiums: |  |  |
| Gross written premiums from primary market | **$3.8** | $6.9 |
| Gross written premiums from secondary market | **2.9** | 2.0 |
| Total gross written premiums | **6.7** | 8.9 |
| Ceding commission paid | **2.0** | 2.6 |
| Total gross written premiums net of ceding commission paid | **$4.7** | $6.3 |
| Earned premiums | **$8.2** | $6.5 |
| Pricing: |  |  |
| Gross pricing from primary market | **116** **bps** | 143 bps |
| Gross pricing from secondary market | **289** **bps** | 360 bps |
| Total gross pricing | **157** **bps** | 165 bps |
| Total pricing net of ceding commission paid | **110** **bps** | 117 bps |

(1) For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds.

HG Global reported pre-tax income of $25 million in the first quarter of 2025 compared to $6 million in the first quarter of 2024. HG Global’s results in the first quarter of 2025 included net realized and unrealized investment gains (losses) on its fixed income portfolio of $10 million compared to $(7) million in the first quarter of 2024, driven by the movement of interest rates in each period. HG Global’s results in the first quarter of 2025 included interest income on the BAM Surplus Notes of $8 million compared to $7 million in the first quarter of 2024.

The fair value of the BAM Surplus Notes increased to $389 million as of March 31, 2025 compared to $382 million as of December 31, 2024, resulting from approximately $8 million of accrued interest. During the three months ended March 31, 2025 and 2024, HG Global did not receive any payments of principal or interest on the BAM Surplus Notes.

For the three months ended March 31, 2025, HG Re did not receive any distributions from the Supplemental Trust. For the three months ended March 31, 2024, HG Re received a distribution from the Supplemental Trust of $26 million, which consisted of an assignment of accrued interest on the BAM Surplus Notes.

### HG Global Balance Sheets

The following table presents amounts for the HG Global segment that are presented within White Mountains’s consolidated balance sheet as of March 31, 2025 and December 31, 2024.

| Millions Assets | March 31, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Fixed maturity investments, at fair value | **$631.9** | $612.1 |
| Short-term investments, at fair value | **54.1** | 55.5 |
| Total investments | **686.0** | 667.6 |
| Cash | **6.8** | 11.5 |
| BAM Surplus Notes, at fair value (1) | **389.2** | 381.7 |
| Insurance premiums receivable | **7.6** | 4.4 |
| Deferred acquisition costs | **86.6** | 86.6 |
| Other assets | **26.9** | 27.6 |
| Total assets | **$1,203.1** | $1,179.4 |
| Liabilities |  |  |
| Preferred dividends payable to White Mountains (2) | **$478.0** | $462.1 |
| Preferred dividends payable to noncontrolling interests | **14.7** | 14.2 |
| Unearned insurance premiums | **295.8** | 297.3 |
| Debt | **147.5** | 147.4 |
| Accrued incentive compensation | **.6** | 1.4 |
| Other liabilities | **4.7** | 3.8 |
| Total liabilities | **941.3** | 926.2 |
| Equity |  |  |
| White Mountains’s common shareholders’ equity | **274.3** | 266.6 |
| Noncontrolling interests | **(12.5)** | (13.4) |
| Total equity | **261.8** | 253.2 |
| Total liabilities and equity | **$1,203.1** | $1,179.4 |
| HG Global total equity after intercompany eliminations: |  |  |
| White Mountains’s common shareholders’ equity | **$274.3** | $266.6 |
| Preferred dividends payable to White Mountains elimination (2) | **478.0** | 462.1 |
| HG Global total equity attributable to White Mountains’s common shareholders after intercompany eliminations | **$752.3** | $728.7 |

(1) The fair value of the BAM Surplus Notes includes accrued interest receivable.

(2) HG Global’s preferred dividends payable to White Mountains are eliminated in White Mountains’s consolidated financial statements. For segment reporting, these amounts are included within the HG Global segment and are eliminated against the offsetting receivables included within Other Operations.

### HG Global Unearned Premiums, Net of Deferred Acquisition Costs

Subsequent to the deconsolidation of BAM on July 1, 2024, the BAM Surplus Notes are carried at fair value under GAAP, and there is no longer a time value of money adjustment for adjusted book value purposes. As a result of this change, there was only one remaining adjustment to book value: the add back of HG Global’s unearned premiums, net of deferred acquisition costs. Accordingly, White Mountains determined that it will no longer report adjusted book value per share beginning in 2025, but the value of the net unearned premiums will continue to be disclosed. The following table presents HG Global’s unearned premiums, net of deferred acquisition costs:

| Millions | March 31, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Unearned premiums | **$295.8** | $297.3 |
| Deferred acquisition costs | **86.6** | 86.6 |
| Unearned premiums, net of deferred acquisition costs | **$209.2** | $210.7 |

59

### Kudu

Kudu provides capital solutions for boutique asset and wealth managers for a variety of purposes including generational ownership transfers, management buyouts, acquisition and growth finance and legacy partner liquidity. Kudu also provides strategic advice to managers from time to time.

Kudu deployed $69 million, including transaction costs, into one new asset management firm in 2025. As of March 31, 2025, Kudu has deployed a total of $1.06 billion, including transaction costs, into 28 asset and wealth management firms globally, including three that have been exited. As of March 31, 2025, the asset and wealth management firms have combined AUM of approximately $132 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 9.5% based on expected cash flows in the first year following deployment.

The following table presents the components of GAAP net income (loss), EBITDA and adjusted EBITDA included in the Kudu segment for the three months ended March 31, 2025 and 2024:

| Millions | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Net investment income (1) | **$19.4** | $17.2 |
| Net realized and unrealized investment gains (losses) | **44.0** | (6.5) |
| Other revenues | **.4** | — |
| Total revenues | **63.8** | 10.7 |
| General and administrative expenses | **4.0** | 3.4 |
| Interest expense | **6.4** | 5.6 |
| Total expenses | **10.4** | 9.0 |
| GAAP pre-tax income (loss) | **53.4** | 1.7 |
| Income tax (expense) benefit | **(11.6)** | .8 |
| GAAP net income (loss) | **41.8** | 2.5 |
| Add back: |  |  |
| Interest expense | **6.4** | 5.6 |
| Income tax expense (benefit) | **11.6** | (.8) |
| General and administrative expenses — depreciation | **—** | — |
| Amortization of other intangible assets | **.1** | .1 |
| EBITDA (2) | **59.9** | 7.4 |
| Exclude: |  |  |
| Net realized and unrealized investment (gains) losses | **(44.0)** | 6.5 |
| Non-cash equity-based compensation expense | **—** | — |
| Transaction expenses | **(.1)** | — |
| Adjusted EBITDA (2) | **$15.8** | $13.9 |

(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 70.

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

| Millions | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Beginning balance of Kudu’s Participation Contracts (1) | **$1,008.4** | $890.5 |
| Contributions to Participation Contracts | **68.0** | — |
| Proceeds from Participation Contracts sold | **—** | — |
| Net realized and unrealized investment gains (losses) on Participation Contracts sold and pending sale (2) | **—** | (3.1) |
| Net unrealized investment gains (losses) on Participation Contracts - all other (3) | **44.0** | (3.2) |
| Ending balance of Kudu’s Participation Contracts (1) | **$1,120.4** | $884.2 |

(1) As of December 31, 2024, March 31, 2025, December 31, 2023 and March 31, 2024, Kudu’s other long-term investments also include $5.6, $5.8, $5.8 and $5.7 related to a private debt instrument.

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

(3) 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 March 31, 2025 versus Three Months Ended March 31, 2024

Kudu reported total revenues of $64 million, pre-tax income of $53 million and adjusted EBITDA of $16 million in the first quarter of 2025 compared to total revenues of $11 million, pre-tax income of $2 million and adjusted EBITDA of $14 million in the first quarter of 2024. Total revenues, pre-tax income and adjusted EBITDA included $19 million of net investment income in the first quarter of 2025 compared to $17 million in the first quarter of 2024. The increase in net investment income was driven primarily by higher dividends from Participation Contracts, reflecting amounts earned from $170 million in new deployments that Kudu made subsequent to March 31, 2024. Total revenues and pre-tax income also included $44 million of net realized and unrealized investment gains (losses) in the first quarter of 2025 compared to $(7) million in the first quarter of 2024. Net investment gains in the first quarter of 2025 were driven primarily by increases in the fair value of Kudu’s Participation Contracts as a result of lower discount rates across the portfolio and growth in AUM at several managers. Net investment losses in the first quarter of 2024 were driven primarily by decreases in the fair value of Kudu’s Participation Contracts as a result of higher discount rates across the portfolio, the decline in share price from a publicly listed security received by Kudu in a prior sales transaction and foreign exchange losses resulting from a strengthening U.S. dollar, partially offset by growth in AUM at several managers.

### Bamboo

On January 2, 2024, White Mountains acquired a controlling interest in Bamboo. 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 Capacity Providers, 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.

In January 2025, Bamboo entered into the Bamboo Credit Facility comprised of a $110 million, six-year term loan and a $10 million revolving credit loan. On January 24, 2025, Bamboo received proceeds of $110 million under the term loan. In turn, Bamboo paid an $84 million cash dividend to shareholders, of which $61 million was paid to White Mountains. The revolving credit loan remains undrawn.

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 months ended March 31, 2025:

| Millions | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Commission and fee revenues | **$44.2** | $21.9 |
| Earned insurance premiums | **14.9** | 8.4 |
| Other revenues | **2.3** | .8 |
| Total revenues | **61.4** | 31.1 |
| Broker commission expenses | **15.5** | 9.3 |
| Loss and LAE | **10.9** | 5.8 |
| Acquisition expenses | **6.6** | 3.1 |
| General and administrative expenses | **20.0** | 12.0 |
| Interest expense | **2.1** | — |
| Total expenses | **55.1** | 30.2 |
| GAAP pre-tax income (loss) | **6.3** | .9 |
| Income tax (expense) benefit | **(4.4)** | .7 |
| GAAP net income (loss) | **1.9** | 1.6 |
| Exclude: |  |  |
| Net (income) loss, Bamboo Captive | **3.9** | .4 |
| MGA net income (loss) (1) | **5.8** | 2.0 |
| Add back: |  |  |
| Interest expense | **2.1** | — |
| Income tax expense (benefit) | **4.4** | (.7) |
| Depreciation expense | **.2** | — |
| Amortization of other intangible assets | **4.0** | 4.2 |
| MGA EBITDA (1) | **16.5** | 5.5 |
| Exclude: |  |  |
| Non-cash equity-based compensation expense | **.8** | .3 |
| Software implementation expenses | **.9** | .5 |
| Restructuring expenses | **1.7** | .1 |
| MGA adjusted EBITDA (1) | **$19.9** | $6.4 |

(1) See “**NON-GAAP FINANCIAL MEASURES”** on page 70.

### Bamboo Results—Three Months Ended March 31, 2025 versus Three Months Ended March 31, 2024

Bamboo reported commission and fee revenues of $44 million and pre-tax income of $6 million in the first quarter of 2025 compared to commission and fee revenues of $22 million and pre-tax income of $1 million in the first quarter of 2024. Bamboo reported MGA pre-tax income of $10 million and MGA adjusted EBITDA of $20 million in the first quarter of 2025 compared to MGA pre-tax income of $2 million and MGA adjusted EBITDA of $6 million in the first quarter of 2024.

Bamboo estimates that losses to its programs from the January 2025 California wildfires total approximately $160 million including the impact of the California FAIR plan assessment and subrogation recoveries. The bulk of the losses will be absorbed by Bamboo’s catastrophe excess of loss and quota share reinsurance partners. The Bamboo Captive retained approximately $4 million of the losses.

### Managed Premiums

Managed premiums represent the total premiums placed by Bamboo during the period. Managed premiums were $147 million in the first quarter of 2025 compared to $90 million in the first quarter of 2024. The increase in managed premiums was driven by growth in the renewal book as well as new business volume. Renewal book growth was driven by strong client policy retention rates as well as approved rate increases that went into effect in the quarter. New business growth was constrained in the quarter by risk aggregation limits instituted by Bamboo on its largest program; however, Bamboo has since launched additional fronted programs that will alleviate this constraint over the rest of the year.

The following table presents Bamboo’s managed premiums for the three months ended March 31, 2025 and 2024:

| Millions | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| New | **$59.8** | $65.8 |
| Net renewals, endorsements, reinstatements and cancellations | **87.2** | 23.7 |
| **Total Managed Premiums** | **$147.0** | $89.5 |

### Capacity Providers

During April 2025, Bamboo renewed its largest program for the treaty year ending April 1, 2026 on favorable terms with strong demand from new and renewing reinsurance partners. Under the renewed terms, Bamboo MGA’s commission levels continue to be based on a sliding scale tied primarily to its attritional loss ratio. Bamboo also expanded its number of reinsurance partners. As of April 1, 2025, the insurance risk for Bamboo’s programs was supported by roughly 25 third-party Capacity Providers.

### Other Operations

The following table presents the components of pre-tax income (loss) included in White Mountains’s Other Operations for the three months ended March 31, 2025 and 2024:

| Millions | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Earned insurance premiums | **$13.9** | $— |
| Net investment income | **9.7** | 9.9 |
| Net realized and unrealized investment gains (losses) | **2.8** | 22.2 |
| Net realized and unrealized investment gains (losses) from investment in MediaAlpha | **(36.6)** | 210.7 |
| Commission and fee revenues | **3.9** | 3.6 |
| Other revenues | **13.6** | 14.4 |
| Total revenues | **7.3** | 260.8 |
| Loss and LAE | **17.4** | — |
| Acquisition expenses | **5.1** | — |
| Cost of sales | **7.5** | 7.6 |
| General and administrative expenses | **35.5** | 50.3 |
| Interest expense | **.5** | .7 |
| Total expenses | **66.0** | 58.6 |
| **Pre-tax income (loss)** | **$(58.7)** | $202.2 |

63

### Other Operations Results—Three Months Ended March 31, 2025 versus Three Months Ended March 31, 2024

White Mountains’s Other Operations reported pre-tax income (loss) of $(59) million in the first quarter of 2025 compared to $202 million in the first quarter of 2024. Unrealized investment gains (losses) from White Mountains’s investment in MediaAlpha were $(37) million in the first quarter of 2025 compared to $211 million in the first quarter of 2024. Excluding MediaAlpha, net realized and unrealized investment gains were $3 million in the first quarter of 2025 compared to $22 million in the first quarter of 2024. The decrease in net realized and unrealized investment gains was driven primarily by lower gains from other long-term investments and losses from common equity securities in the first quarter of 2025 compared to gains from common equity securities in the first quarter of 2024. White Mountains’s Other Operations results included net investment income of $10 million in both the first quarter of 2025 and 2024. See **Summary of Investment Results** on page 64.

White Mountains’s Other Operations reported general and administrative expenses of $36 million in the first quarter of 2025 compared to $50 million in the first quarter of 2024. Other Operations general and administrative expenses in the first quarter of 2025 included $15 million of parent company compensation and benefits compared to $31 million in the first quarter of 2024. The decrease in parent company compensation and benefits was driven primarily by lower long-term incentive compensation costs due to fluctuations in the White Mountains share price.

White Mountains’s Other Operations reported $8 million of pre-tax loss in the first quarter of 2025 related to the Bamboo CRV. The Bamboo CRV’s results included $14 million of earned premiums, $17 million of loss and LAE and $5 million of acquisition expenses. Loss and LAE included approximately $12 million related to the California wildfires. Since its inception on April 1, 2024 through March 31, 2025, the Bamboo CRV has generated pre-tax income of $1 million. During the second quarter of 2025, White Mountains renewed the Bamboo CRV for the 2025 treaty year at a commitment of up to $10 million, down from prior year due to strong demand from third-party Capacity Providers.

### 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.

Effective July 1, 2024, White Mountains no longer consolidates BAM. Through June 30, 2024, White Mountains’s consolidated financial statements included BAM’s investment results. See **Note 2 — “Significant Transactions.”**

### Gross Investment Returns and Benchmark Returns

The following table presents the pre-tax time-weighted investment returns for White Mountains’s consolidated portfolio for the three months ended March 31, 2025 and 2024:

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Fixed income investments | **1.7%** | 0.7% |
| Bloomberg U.S. Intermediate Aggregate Index | **2.6%** | (0.4)% |
| Common equity securities | **1.8%** | 4.4% |
| Investment in MediaAlpha | **(18.2)%** | 82.7% |
| Other long-term investments | **3.3%** | 1.4% |
| Total common equity securities, investment in MediaAlpha and other long-term investments | **1.6%** | 9.5% |
| Total common equity securities and other long-term investments | **3.1%** | 2.0% |
| S&P 500 Index (total return) | **(4.3)%** | 10.6% |
| Total consolidated portfolio | **1.7%** | 4.6% |
| Total consolidated portfolio - excluding MediaAlpha (1) | **2.3%** | 1.2% |

(1) See “**NON-GAAP FINANCIAL MEASURES”** on page 70.

### Investment Returns—Three Months Ended March 31, 2025 versus Three Months Ended March 31, 2024

White Mountains’s total consolidated portfolio return on invested assets was 1.7% in the first quarter of 2025, which included $37 million of unrealized investment losses from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 2.3% in the first quarter of 2025, driven primarily by net investment income and net unrealized investment gains from the other long-term investments and fixed income portfolios.

White Mountains’s total consolidated portfolio return on invested assets was 4.6% in the first quarter of 2024, which included $211 million of unrealized investment gains from White Mountains’s investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on invested assets was 1.2% in the first quarter of 2024, driven primarily by net investment income from the fixed income and other long-term investments portfolios and net unrealized investment gains from common equity securities, partially offset by net realized and unrealized investment losses in the fixed income portfolio.

#### Fixed Income Results

White Mountains’s fixed income portfolio, including short-term investments, totaled $3.6 billion and $3.5 billion as of March 31, 2025 and December 31, 2024, which represented 54% of total invested assets in both periods. The duration of White Mountains’s fixed income portfolio, including short-term investments, was 1.8 and 1.9 years as of March 31, 2025 and December 31, 2024. 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 1.7% in the first quarter of 2025 compared to 0.7% in the first quarter of 2024, underperforming and outperforming the Bloomberg U.S. Intermediate Aggregate Index returns of 2.6% and -0.4% for the comparable periods. The results in both the first quarter of 2025 and 2024 were driven primarily by net investment income and the short duration positioning of White Mountains’s fixed income portfolio as interest rates fluctuated in each respective period.

#### 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 $3.0 billion as of both March 31, 2025 and December 31, 2024, which represented 46% of total invested assets in both periods. See **Note 3 — “Investment Securities.”**

White Mountains’s portfolio of common equity securities, its investment in MediaAlpha and other long-term investments returned 1.6% in the first quarter of 2025, which included $37 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 3.1% in the first quarter of 2025. White Mountains’s portfolio of common equity securities, its investment in MediaAlpha and other long-term investments returned 9.5% in the first quarter of 2024, which included $211 million of unrealized investment gains from MediaAlpha. White Mountains’s portfolio of common equity securities and other long-term investments returned 2.0% in the first quarter of 2024.

White Mountains’s portfolio of common equity securities consists of international listed equity funds, primarily held at Ark, and passive ETFs. White Mountains’s ETFs seek to provide investment results generally corresponding to the performance of the S&P 500 Index. White Mountains’s portfolio of common equity securities totaled $542 million and $650 million as of March 31, 2025 and December 31, 2024. The decrease in common equity securities during the first quarter of 2025 was due to the sale of $100 million of passive ETFs.

White Mountains’s portfolio of common equity securities returned 1.8% in the first quarter of 2025 compared to 4.4% in the first quarter of 2024, outperforming and underperforming the S&P 500 Index returns of -4.3% and 10.6% for the comparable periods. The outperformance and underperformance in both the first quarter of 2025 and 2024 were driven primarily by certain international listed equity funds that employ a market neutral strategy.

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 totaled $2.3 billion and $2.2 billion as of March 31, 2025 and December 31, 2024.

White Mountains’s portfolio of other long-term investments returned 3.3% in the first quarter of 2025 compared to 1.4% in the first quarter of 2024. Investment returns for the first quarter of 2025 were driven primarily by net unrealized investment gains and net investment income from Kudu’s Participation Contracts. Investment returns for the first quarter of 2024 were driven primarily by net investment income from Kudu’s Participation Contracts and net unrealized investment gains from certain private equity and hedge funds.

### Foreign Currency Exposure

As of March 31, 2025, White Mountains had foreign currency exposure on $303 million of net assets, primarily related to Ark/WM Outrigger’s non-U.S. contracts, Kudu’s non-U.S. Participation Contracts and a private debt instrument, as well as 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 March 31, 2025:

*$ in Millions Currency*

|  | Ark/WM Outrigger | Kudu | Other Operations | Total Fair Value | % of Total Shareholders’ Equity |
| --- | ---: | ---: | ---: | ---: | ---: |
| CAD | $93.2 | $55.2 | $— | $148.4 | 2.9% |
| AUD | 41.2 | 67.6 | — | 108.8 | 2.1 |
| GBP | 54.4 | — | — | 54.4 | 1.1 |
| EUR | (31.1) | 22.0 | — | (9.1) | (.2) |
| All other | — | — | .6 | .6 | — |
| Total | **$157.7** | **$144.8** | **$.6** | **$303.1** | 5.9% |

65

### III. Income Taxes

As of March 31, 2025, the primary jurisdictions in which the Company’s subsidiaries and branches operated and were subject to tax are Israel, Luxembourg, the United Kingdom and the United States.

On December 27, 2023, Bermuda enacted a 15% corporate income tax that became effective on January 1, 2025. The Bermuda legislation defers the effective date for five years, for Bermuda companies in consolidated groups that meet certain requirements. To qualify for the deferral, generally the group must (i) have consolidated affiliates and permanent establishments in six or fewer countries, (ii) have no more 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 consolidated Bermuda affiliate or Bermuda permanent establishment directly or indirectly owned by a parent entity that is subject to the Income Inclusion Rule 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 recorded a net deferred tax asset of $68 million, with $51 million attributable to Ark and $17 million attributable to HG Global. Effective July 1, 2024, White Mountains no longer consolidates BAM. As a result of the deconsolidation, the BAM Surplus Notes were recorded at fair value, which resulted in the reversal of a $5 million deferred tax liability related to the economic transition adjustment in 2024. As of March 31, 2025, the net deferred tax asset related to the economic transition adjustment was $73 million, with $51 million attributable to Ark and $22 million attributable to HG Global.

On December 15, 2022, European Union Member States voted to adopt the EU Minimum Tax Directive in conformity with the OECD Pillar Two initiative. The Pillar Two initiative includes a set of model rules that are generally designed to impose a top-up tax on a large multinational enterprise group to the extent the group is not subject to an effective tax rate of at least 15% in each jurisdiction in which the group has a consolidated affiliate or permanent establishment. 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 Income Inclusion Rule (“IIR”), was to become effective for fiscal years beginning on or after December 31, 2023, while the Undertaxed Profits Rule (“UTPR”) was to become effective for fiscal years beginning on or after December 31, 2024. The EU Minimum Tax Directive also permits European Union Member States to elect to apply a Qualified Domestic Minimum Top-up Tax (“QDMTT”) for fiscal years beginning on or after December 31, 2023.

On December 20, 2023, Luxembourg enacted conforming Pillar Two legislation including the IIR, UTPR and the QDMTT. Additional legislation addressing the applicability of the QDMTT was enacted on December 23, 2024. The Luxembourg Pillar Two rules defer the effective date of the QDMTT and UTPR until fiscal years beginning on or after December 31, 2028 and 2029, respectively, for Luxembourg companies in consolidated groups with a non-EU parent company that meet certain requirements. To qualify for the deferral, generally the group must (i) have consolidated affiliates and permanent establishments in six or fewer countries and (ii) have no more 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 QDMTT and UTPR until January 1, 2029 and 2030, respectively.

On July 11, 2023, the U.K. enacted conforming legislation adopting the Pillar Two IIR and QDMTT which became effective for fiscal years beginning on or after December 31, 2023. On March 20, 2025, the U.K. enacted legislation adopting the Pillar Two UTPR effective for fiscal years beginning on or after December 31, 2024. Under the legislation, the effective date of the UTPR is deferred until fiscal years beginning on or after December 31, 2029 for U.K. companies in consolidated groups with a non-EU parent company that meet certain requirements. To qualify for the deferral, generally the group must (i) have consolidated affiliates and permanent establishments in six or fewer countries and (ii) have no more 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 U.K. UTPR until January 1, 2030.

On January 15, 2025, the OECD released administrative guidance on its Pillar Two model rules (the “January 2025 OECD Administrative Guidance”). The January 2025 OECD Administrative Guidance provides that, subject to limited exceptions, deferred tax expense attributable to deferred tax assets resulting from the introduction of a new corporate income tax after November 30, 2021 is to be excluded when assessing whether a multinational enterprise group has an effective tax rate of at least 15% in the jurisdiction that adopted the corporate income tax. Deferred tax assets associated with the economic transition adjustment recognized under the Bermuda corporate income tax are expected to be within the scope of the January 2025 OECD Administrative Guidance. As of March 31, 2025, neither the U.K. nor Luxembourg had enacted changes in response to the January 2025 OECD Administrative Guidance, and no changes had been enacted with respect to the Bermuda corporate income tax to repeal or otherwise limit the economic transition adjustment. Accordingly, under GAAP, White Mountains is required to maintain the net deferred tax asset attributable to the economic transition adjustment as of March 31, 2025. Currently, the impact of any potential changes in response to the January 2025 OECD Administrative Guidance is uncertain, but may result in the elimination of the net deferred tax asset related to the economic transition adjustment.

White Mountains’s income tax expense related to pre-tax income from continuing operations for the three months ended March 31, 2025 and 2024 represented an effective tax rate of 13% and 5%. 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 per the previous year’s statutory financial statements, or (ii) make dividend payments of up to 25% of its total statutory capital and surplus per 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 $337 million during 2025, which is equal to 25% of its statutory capital and surplus of $1,347 million as of December 31, 2024, subject to meeting all appropriate liquidity and solvency requirements. During the three months ended March 31, 2025, GAIL did not pay any dividends to its immediate parent.

During the three months ended March 31, 2025, Ark declared a $41 million dividend to shareholders, including $30 million that was paid to White Mountains in April 2025. As of March 31, 2025, 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 its reinsurance agreement with GAIL. As of March 31, 2025, WM Outrigger Re had less than $1 million of net unrestricted cash held outside the collateral trust. As of March 31, 2025, WM Outrigger Re had $191 million of statutory capital and surplus and $209 million of assets held in the collateral trusts pursuant to the reinsurance agreement with GAIL.

### HG Global

As of March 31, 2025, 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 March 31, 2025, HG Global has accrued $493 million of dividends payable to holders of its preferred shares, $478 million of which is payable to White Mountains and is eliminated in consolidation. As of March 31, 2025, HG Global and its subsidiaries had $2 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. As of March 31, 2025, HG Re had $5 million of net unrestricted cash. As of March 31, 2025, HG Re had $158 million of accrued interest on the BAM Surplus Notes held outside the Collateral Trusts. As of March 31, 2025, HG Re had $747 million of statutory capital and surplus and $976 million of assets held in the Collateral Trusts.

HG Global has two primary sources of cash flows: (i) interest payments on the BAM Surplus Notes that are made outside the Collateral Trusts and (ii) releases of excess balances from the Collateral Trusts. During the three months ended March 31, 2025, HG Global did not receive any cash payments of principal and interest on the BAM Surplus Notes. During the three months ended March 31, 2025, HG Re did not receive any distributions from the Supplemental Trust.

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

### Kudu

During the three months ended March 31, 2025, Kudu distributed $3 million to unitholders, substantially all of which was paid to White Mountains. As of March 31, 2025, Kudu had $19 million of net unrestricted cash and short-term investments.

### Bamboo

The Bamboo Captive is a protected cell captive domiciled in the state of Arizona and is subject to regulation and supervision by the Arizona Department of Insurance and Financial Institutions (“Arizona DIFI”). As an Arizona-domiciled protected cell, the Bamboo Captive is required to maintain $0.5 million of minimum capital. As of December 31, 2024, the Bamboo Captive had statutory capital and surplus of $7 million. The Bamboo Captive cannot pay any dividends without the approval of Arizona DIFI. During the three months ended March 31, 2025, the Bamboo Captive did not pay any dividends to its immediate parent. As of March 31, 2025, the Bamboo Captive had $12 million of net unrestricted cash and short-term investments.

During the three months ended March 31, 2025, Bamboo paid $90 million of dividends to shareholders, $65 million of which were paid to White Mountains. As of March 31, 2025, Bamboo had $24 million of net unrestricted cash and short-term investments outside of the Bamboo Captive.

### Other Operations

During the three months ended March 31, 2025, White Mountains paid a $3 million common share dividend. As of March 31, 2025, the Company and its intermediate holding companies had $566 million of net unrestricted cash, short-term investments and fixed maturity investments, $165 million of MediaAlpha common stock, $121 million of common equity securities and $331 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 March 31, 2025 and December 31, 2024:

*$ in Millions*

|  | March 31, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Ark 2021 Subordinated Notes (1) (2) | **$156.1** | $154.5 |
| HG Global Senior Notes (1) (2) | **147.5** | 147.4 |
| Kudu Credit Facility (1) (2) | **246.6** | 238.6 |
| Bamboo Credit Facility (1) (2) | **104.7** | — |
| Other Operations debt (1) (2) | **21.2** | 22.0 |
| Total debt | **676.1** | 562.5 |
| Noncontrolling interests | **630.1** | 647.3 |
| Total White Mountains’s common shareholders’ equity | **4,509.6** | 4,483.7 |
| Total capital | **$5,815.8** | $5,693.5 |
| Total debt to total capital | **11.6%** | 9.9% |

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

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

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 March 31, 2025, White Mountains was in compliance in all material respects with all of the covenants under its debt instruments.

### Share Repurchase Programs

The Company’s Board of Directors has authorized the Company to repurchase its common shares from time to time, subject to market conditions. Shares may be repurchased on the open market or through privately negotiated transactions. The repurchase authorizations do not have a stated expiration date. As of March 31, 2025, 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 three months ended March 31, 2025, White Mountains repurchased and retired 5,097 of its common shares for $10 million at an average share price of $1,945, which was approximately 111% of White Mountains’s book value per share as of March 31, 2025. All of the shares White Mountains repurchased in the first three months of 2025 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 three months ended March 31, 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 86% of White Mountains’s book value per share as of March 31, 2024. All of the shares White Mountains repurchased in the first three 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.

### Cash Flows

Detailed information concerning White Mountains’s cash flows from continuing operations during the three months ended March 31, 2025 and 2024 follows:

### Cash flows from operations for the three months ended March 31, 2025 and March 31, 2024

Net cash used for operations was $40 million for the three months ended March 31, 2025 compared to net cash provided from operations of $37 million for the three months ended March 31, 2024. The increase in cash used for operations was driven primarily by a decrease in cash provided from operations at Ark/WM Outrigger Re and a new deployment at Kudu in the first quarter of 2025. As of March 31, 2025, the Company and its intermediate holding companies had $566 million of net unrestricted cash, short-term investments and fixed maturity investments, $165 million of MediaAlpha common stock, $121 million of common equity securities and $331 million of private equity funds, hedge funds, ILS funds and certain unconsolidated entities.

### Cash flows from investing and financing activities for the three months ended March 31, 2025

#### Financing and Other Capital Activities

During the three months ended March 31, 2025, the Company declared and paid a $3 million cash dividend to its common shareholders.

During the three months ended March 31, 2025, White Mountains repurchased and retired 5,097 of its common shares for $10 million, all of which were to satisfy employee income tax withholding pursuant to employee benefit

During the three months ended March 31, 2025, Kudu borrowed $8 million in term loans under the Kudu Credit Facility.

During the three months ended March 31, 2025, White Mountains contributed $15 million to Kudu, which was used to repurchase certain management equity incentives that were then replaced with new equity incentive units.

During the three months ended March 31, 2025, Bamboo borrowed $110 million in term loans under the Bamboo Credit Facility.

### Cash flows from investing and financing activities for the three months ended March 31, 2024

#### Financing and Other Capital Activities

During the three months ended March 31, 2024, the Company declared and paid a $3 million cash dividend to its common shareholders.

During the three months ended March 31, 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 three months ended March 31, 2024, Ark repaid the outstanding balance of $30 million and extinguished the Ark 2007 Subordinated Notes.

#### 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.

### NON-GAAP FINANCIAL MEASURES

This report includes 7 non-GAAP financial measures that have been reconciled from their most comparable GAAP financial measures.

### 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 recorded 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 60.

### 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 March 31, 2025 | Three Months Ended March 31, 2024 |
| --- | ---: | --- |
| Bamboo’s consolidated GAAP pre-tax income (loss) | **$6.3** | $.9 |
| Remove pre-tax (income) loss, Bamboo Captive | **3.9** | .6 |
| MGA pre-tax income (loss) | **$10.2** | $1.5 |

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.

White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Bamboo’s performance. See page 62 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 White Mountains’s investment in MediaAlpha.

The following table presents return reconciliations from GAAP to the reported percentages for three months ended March 31, 2025 and 2024:

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Total consolidated portfolio return | **1.7%** | 4.6% |
| Remove MediaAlpha | **0.6** | (3.4) |
| Total consolidated portfolio return excluding MediaAlpha | **2.3%** | 1.2% |

71

### CRITICAL ACCOUNTING ESTIMATES

Refer to the Company’s 2024 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 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 2024 Annual Report on Form 10-K;
- 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;
- 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 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 2024 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 March 31, 2025. 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 first quarter of 2025 that have materially affected, or are reasonably likely to materially affect, White Mountains’s internal control over financial reporting.

## Risk factors

As filed, 136 characters.

There have been no material changes to any of the risk factors previously disclosed in the Registrant’s 2024 Annual Report on Form 10-K.

Filed May 7, 2025.
Source: SEC EDGAR, the filing index for accession 0000776867-25-000006. Last ingested by Listed: Nov 6, 2026, 02:06 ET. No prices; not investment advice.