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.

 •  4/2/2025 Letter Continued (Full PDF)
 •  4/5/2023 WTM Stockholder Letter
 •  4/4/2024 WTM Stockholder Letter
 •  More "Insurance Brokers" Category Stockholder Letters
 •  WTM Benford's Law Stock Score = 94

WTM Shareholder/Stockholder Letter Transcript:

White Mountains Insurance Group, Ltd.
2024


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
12
Kudu
13
Bamboo
14
MediaAlpha
15
PassportCard / DavidShield
16
Investments
17
Non-GAAP Financial Measures
18
Corporate Information
23
Non-GAAP Financial Measures
Non-GAAP financial measures are identified by the superscript
. Management believes these
   NGM   
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 22 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, 2024.
1

G. Manning Rountree
Chief Executive Officer
White Mountains
Dear Fellow Shareholders:
2024 was an okay year for your Company. We grew
Gross written premiums reached $2.2 billion, up 16%
ABVPSNGM 8%, ending the year at $1,834. A sound
year-over-year (and up roughly 4x since our acquisition).
result but a bit short of our long-term target of the yield
Outrigger Re is on track to deliver a solid return for our
on the 10YT + 700 bps (or 11% for 2024). The share
account, notwithstanding the California wildfires. Over
price rose 29%.
the last four years, Ark has executed beautifully against
the hard market opportunity. Ark has also proactively
Ark posted another outstanding year. The combined
added strong new underwriting teams in a number of
ratio was 83%, and Tangible Book ValueNGM grew 28%.
lines away from property, including accident & health,
Attritional losses were above plan (driven by several
marine liability and political violence. As the property
large    man-made    losses), cat losses were right on
underwriting cycle (inevitably) turns, we will be ready to
plan, and prior year reserve development was favorable.
play the next hand.
Growth in Value Per Share
$2,000
$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 2006 2007 2008 2009 2010 2011 2012 2013
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
2
2014
2006
2015 2016 2017 2018 2019 2020 2021 2022
2008 2010 2012 2014 2016 2018 2020 2022 2024

HG Global and BAM had a mixed year. BAM   s total
payments towards surplus note principal and interest,
premiums for 2024 were $136 million, its second highest
up year-over-year. During 2024, White Mountains
total since inception. The main event was record issuance
deconsolidated BAM. One of the welcome consequences
in the primary market, where BAM insured par of
of deconsolidation is that our GAAP financials now clearly
$17.5 billion, its highest total since inception. On the
depict our two economic interests in the HG Global/BAM
other hand, pricing decreased year-over-year, driven by
enterprise     (i) the HG Re first-loss reinsurance business
tighter credit spreads and a lower volume of higher-
and (ii) the outstanding surplus note principal and interest.
priced secondary market business. The backup in
interest rates in 4Q caused unrealized losses in the HG
Kudu posted a solid year. The GAAP return on equity
Global bond portfolio and muted HG Global   s Growth in
was 9%, and the Levered ReturnNGM was also 9%. Both
Adjusted Book ValueNGM     up roughly 6% for the year.
metrics declined year-over-year, driven primarily by the
BAM   s credit portfolio continues to perform well, and
roll-off of a non-recurring carried interest realization in
BAM   s claims paying resources continue to grow,
2023 and, to a lesser extent, the mark-to-market impact
reaching $1.7 billion. BAM made $30 million of cash
of rising interest rates. Underlying results were good.
2024 Returns in Context
Book value returns
Market value returns
7.7%
White Mountains ABVPSNGM
White Mountains
29.3%
10YT + 700 bps1
10.9%
Dowling & Partners Composite 2
34.0%
Dowling & Partners Composite TVC3
19.1%
S&P 500
25.0%
S&P P&C Insurance Total Return
35.5%
S&P Financials
30.3%
1
Beginning-of-year yield on 10-year U.S. Treasury plus 700 bps.
2
Composite performance for 58 publicly-traded underwriters and brokers reported by Dowling & Partners.
3
Total Value Creation (TBV plus dividends) composite of 49 publicly-traded underwriters reported by Dowling & Partners.
3



 4/2/2025 Letter Continued (Full PDF)