On this page of StockholderLetter.com we present the latest annual shareholder letter from WHITE MOUNTAINS INSURANCE GROUP LTD — ticker symbol WTM. Reading current and past WTM letters to shareholders can bring important insights into the investment thesis.
White Mountains Insurance Group, Ltd.
2023

Table of Contents
CEO Letter
2
Operating Principles
7
Look Through Parent Company Balance Sheets
8
Look Through Parent Company Income Statements
9
Ark / WM Outrigger
10
HG Global / BAM
12
Kudu
13
MediaAlpha
14
PassportCard / DavidShield
15
Bamboo
16
Investments
17
Non-GAAP Financial Measures
18
Corporate Information
22
Non-GAAP Financial Measures
Non-GAAP financial measures are identified by the superscript
. The management team believes
   NGM   
these measures to be useful in evaluating White Mountains   s financial performance. For a reconciliation
of these non-GAAP financial measures from their most comparable GAAP financial measures, please see
pages 18 through 21 and our website at www.whitemountains.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This document 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 document 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.
For a discussion of risks and uncertainties that could cause actual results to differ from the expectations
and predictions contained in the forward-looking statements, see    Risk Factors   ,    Management   s
Discussion and Analysis of Financial Condition and Results of Operations   , and    Quantitative and
Qualitative Disclosures About Market Risk    in White Mountains   s Annual Report on Form 10-K for the
year ended December 31, 2023.
1
G. Manning Rountree
Chief Executive Officer
White Mountains
Dear Fellow Shareholders:
2023 was a good year for your Company. We grew
lesser extent, a deferred tax asset realized at year end.
ABVPSNGM 14%, ending the year at $1,704. The share
Outrigger Re performed well, producing a roughly 35%
price rose 6%. These results did not come easy, but
return on capital for our account in 2023. Three years
we scrapped hard and found a way.
in, Ark has delivered excellent underwriting results
while scaling up aggressively. Our timing has been
Ark posted another outstanding year. The combined
good. Opportunities remain robust, but we are likely
ratio was 82%. Gross written premiums reached
at or near the top of the underwriting cycle for some
$1.9 billion, up 31% year over year (and up over 3x
lines of business. Ark has added underwriting teams in
since 2020). Tangible Book ValueNGM grew 44%,
a number of areas, including accident & health, marine
buoyed by strong underwriting results, the unwind
liability and political violence. We will be ready to play
of unrealized losses in the bond portfolio and, to a
the next hand.
Growth in Value Per Share
$1,800
$1,600
    Adjusted Book Value Per ShareNGM
Market Value Per Share
$1,400
$1,200
$1,000
$800
$600
$400
$200
$02004 2005
1985 1987
2
2006
1989
2007
1991
2008
1993
2009
1995
2010
1997
2011
1999
2012
2001
2013
2003
2014
2005
2015
2007
2016
2009
2017
2011
2018
2013
2019
2015
2020
2017
2021
2019
2022
2021 2023
As foreshadowed in last year   s letter, BAM took a step
Kudu produced strong results in 2023. The Levered
back from a record 2022. Gross written premiums
ReturnNGM was 12%, while the GAAP return on equity
and member surplus contributions for 2023 were
was 17%. Both metrics were up nicely year over year,
$131 million. Interest rates remained elevated, while
reflecting good performance in the underlying portfolio
credit spreads tightened. As a result, year over year,
and successful redeployment of fallow capital. On
primary market issuance was flattish, while pricing
a same store basis, the fair value of Kudu   s portfolio grew
decreased. On the other hand, insured penetration
15% year over year. During the year, Kudu deployed
ticked up, BAM   s market share held steady, and
nearly $175 million of capital, primarily into five new
BAM   s
portfolio companies. Kudu is in a strong position, with
secondary
market
business
contributed
nicely. BAM   s credit portfolio continues to perform
both dry powder and a robust pipeline of deals.
well. During 2023, BAM   s claims paying resources
crossed the $1.5 billion threshold for the first time. In
It was a wild ride at MediaAlpha in 2023. For the
December, BAM made a $27 million cash payment of
full year, the MediaAlpha share price increased from
surplus note principal and interest.
$9.95 to $11.15, creating a modest unrealized gain
2023 Returns in Context
Book value returns
Market value returns
White Mountains ABVPSNGM
14.0%
White Mountains
Dowling & Partners Composite TVC1
22.1%
Dowling & Partners Composite 2
14.0%
S&P 500
26.3%
S&P P&C Insurance Total Return
10.8%
S&P Financials
11.9%
1
Total Value Creation (TBV plus dividends) composite of 46 publicly-traded underwriters reported by Dowling & Partners.
2
Composite performance for 56 publicly-traded underwriters and brokers reported by Dowling & Partners.
6.5%
3
 • shareholder letter icon 4/4/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/5/2023 WTM Stockholder Letter
 • stockholder letter icon More "Insurance Brokers" Category Stockholder Letters
 • Benford's Law Stocks icon WTM Benford's Law Stock Score = 99


WTM Shareholder/Stockholder Letter Transcript:

White Mountains Insurance Group, Ltd.
2023


Table of Contents
CEO Letter
2
Operating Principles
7
Look Through Parent Company Balance Sheets
8
Look Through Parent Company Income Statements
9
Ark / WM Outrigger
10
HG Global / BAM
12
Kudu
13
MediaAlpha
14
PassportCard / DavidShield
15
Bamboo
16
Investments
17
Non-GAAP Financial Measures
18
Corporate Information
22
Non-GAAP Financial Measures
Non-GAAP financial measures are identified by the superscript
. The management team believes
   NGM   
these measures to be useful in evaluating White Mountains   s financial performance. For a reconciliation
of these non-GAAP financial measures from their most comparable GAAP financial measures, please see
pages 18 through 21 and our website at www.whitemountains.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This document 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 document 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.
For a discussion of risks and uncertainties that could cause actual results to differ from the expectations
and predictions contained in the forward-looking statements, see    Risk Factors   ,    Management   s
Discussion and Analysis of Financial Condition and Results of Operations   , and    Quantitative and
Qualitative Disclosures About Market Risk    in White Mountains   s Annual Report on Form 10-K for the
year ended December 31, 2023.
1

G. Manning Rountree
Chief Executive Officer
White Mountains
Dear Fellow Shareholders:
2023 was a good year for your Company. We grew
lesser extent, a deferred tax asset realized at year end.
ABVPSNGM 14%, ending the year at $1,704. The share
Outrigger Re performed well, producing a roughly 35%
price rose 6%. These results did not come easy, but
return on capital for our account in 2023. Three years
we scrapped hard and found a way.
in, Ark has delivered excellent underwriting results
while scaling up aggressively. Our timing has been
Ark posted another outstanding year. The combined
good. Opportunities remain robust, but we are likely
ratio was 82%. Gross written premiums reached
at or near the top of the underwriting cycle for some
$1.9 billion, up 31% year over year (and up over 3x
lines of business. Ark has added underwriting teams in
since 2020). Tangible Book ValueNGM grew 44%,
a number of areas, including accident & health, marine
buoyed by strong underwriting results, the unwind
liability and political violence. We will be ready to play
of unrealized losses in the bond portfolio and, to a
the next hand.
Growth in Value Per Share
$1,800
$1,600
    Adjusted Book Value Per ShareNGM
Market Value Per Share
$1,400
$1,200
$1,000
$800
$600
$400
$200
$02004 2005
1985 1987
2
2006
1989
2007
1991
2008
1993
2009
1995
2010
1997
2011
1999
2012
2001
2013
2003
2014
2005
2015
2007
2016
2009
2017
2011
2018
2013
2019
2015
2020
2017
2021
2019
2022
2021 2023

As foreshadowed in last year   s letter, BAM took a step
Kudu produced strong results in 2023. The Levered
back from a record 2022. Gross written premiums
ReturnNGM was 12%, while the GAAP return on equity
and member surplus contributions for 2023 were
was 17%. Both metrics were up nicely year over year,
$131 million. Interest rates remained elevated, while
reflecting good performance in the underlying portfolio
credit spreads tightened. As a result, year over year,
and successful redeployment of fallow capital. On
primary market issuance was flattish, while pricing
a same store basis, the fair value of Kudu   s portfolio grew
decreased. On the other hand, insured penetration
15% year over year. During the year, Kudu deployed
ticked up, BAM   s market share held steady, and
nearly $175 million of capital, primarily into five new
BAM   s
portfolio companies. Kudu is in a strong position, with
secondary
market
business
contributed
nicely. BAM   s credit portfolio continues to perform
both dry powder and a robust pipeline of deals.
well. During 2023, BAM   s claims paying resources
crossed the $1.5 billion threshold for the first time. In
It was a wild ride at MediaAlpha in 2023. For the
December, BAM made a $27 million cash payment of
full year, the MediaAlpha share price increased from
surplus note principal and interest.
$9.95 to $11.15, creating a modest unrealized gain
2023 Returns in Context
Book value returns
Market value returns
White Mountains ABVPSNGM
14.0%
White Mountains
Dowling & Partners Composite TVC1
22.1%
Dowling & Partners Composite 2
14.0%
S&P 500
26.3%
S&P P&C Insurance Total Return
10.8%
S&P Financials
11.9%
1
Total Value Creation (TBV plus dividends) composite of 46 publicly-traded underwriters reported by Dowling & Partners.
2
Composite performance for 56 publicly-traded underwriters and brokers reported by Dowling & Partners.
6.5%
3



shareholder letter icon 4/4/2024 Letter Continued (Full PDF)
 

WTM Stockholder/Shareholder Letter (WHITE MOUNTAINS INSURANCE GROUP LTD) | www.StockholderLetter.com
Copyright © 2023 - 2025, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.