WHITE MOUNTAINS INSURANCE GROUP LTD (WTM): Results of Operations and Financial Condition
WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 CONTACT: Rob Seelig (603) 640-2212 WHITE MOUNTAINS REPORTS SECOND QUARTER RESULTS HAMILTON, Bermuda (August 6, 2026) - White Mountains Insurance Group, Ltd. (NYSE: WTM) reported book value per share of $2,258 as of June 30, 2026, an increase of 4% for the second quar
How this was made
The 30-second read
Why it matters
Traders can update valuation and risk assumptions using the disclosed book value per share growth, repurchase amount, segment combined ratios, and quantified Ark losses related to the war in Iran, alongside investment mark-to-market effects (including MediaAlpha).
Market read
Fresh Q2 underwriting and capital allocation details (book value growth, buybacks, combined ratios) plus quantified catastrophe/war losses and investment mark-to-market impacts can drive near-term repricing of WTM’s risk-adjusted earnings power.
What to watch
Ark’s gross written premium decline (down 5% in the quarter) and the reliance on favorable prior-year development could reverse, and MediaAlpha mark-to-market gains may not be repeatable.
White Mountains Reports Second Quarter Results
Book value per share increased 4% in the second quarter, comprehensive income attributable to common shareholders was $199 million, and operating-company results included an 84% combined ratio at Ark/WM Outrigger. Results also reflected $151 million of net realized and unrealized investment gains, while Ark cited property-market softening and ongoing exposure to the war in Iran.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Book value per shareother | $2,258 | increase of 4% for the second quarter of 2026 | – |
| Book value per shareother | $2,258 | increase of 3% for the first six months of 2026 | – |
| Comprehensive income attributable to common shareholders, second quarterGAAP | $199 million | – | – |
| Comprehensive income attributable to common shareholders, first six monthsGAAP | $173 million | – | – |
| Net realized and unrealized investment gains, second quarterGAAP | $151 million | – | – |
| Net realized and unrealized investment gains, first six monthsGAAP | $161 million | – | – |
| Unrealized investment gains (losses) from MediaAlpha investment, second quarterGAAP | $58 million | – | – |
| Unrealized investment gains (losses) from MediaAlpha investment, first six monthsGAAP | $(7) million | – | – |
| Ark/WM Outrigger combined ratio, second quarterother | 84% | – | – |
| Ark/WM Outrigger combined ratio, first six monthsother | 88% | – | – |
| Ark/WM Outrigger gross written premiums, second quarterother | $778 million | – | – |
| Ark/WM Outrigger gross written premiums, first six monthsother | $1,868 million | – | – |
| Ark/WM Outrigger net written premiums, second quarterother | $537 million | – | – |
| Ark/WM Outrigger net written premiums, first six monthsother | $1,128 million | – | – |
| Ark/WM Outrigger net earned premiums, second quarterother | $376 million | – | – |
| Ark/WM Outrigger net earned premiums, first six monthsother | $750 million | – | – |
| Ark combined ratio, second quarterother | 84% | – | – |
| Ark combined ratio, first six monthsother | 88% | – | – |
| Ark gross written premiums, second quarterother | $778 million | – | – |
| Ark gross written premiums, first six monthsother | $1,868 million | – | – |
| Ark net written premiums, second quarterother | $538 million | – | – |
| Ark net written premiums, first six monthsother | $1,128 million | – | – |
| Ark net earned premiums, second quarterother | $375 million | – | – |
| Ark net earned premiums, first six monthsother | $747 million | – | – |
| Ark pre-tax income, second quarterother | $78 million | – | – |
| Ark pre-tax income, first six monthsother | $85 million | – | – |
| Ark net realized and unrealized investment gains (losses), second quarterother | $31 million | – | – |
| Ark net realized and unrealized investment gains (losses), first six monthsother | $(2) million | – | – |
| Ark book valueother | $1,615 million | increase of 4% in the second quarter of 2026 | – |
| Ark tangible book valueother | $1,736 million | increase of 6% in the second quarter of 2026 | – |
| WM Outrigger Re combined ratio, second quarterother | 25% | – | – |
| WM Outrigger Re combined ratio, first six monthsother | 40% | – | – |
| Kudu total revenues, second quarterother | $69 million | – | – |
| Kudu pre-tax income, second quarterother | $57 million | – | – |
| Kudu adjusted EBITDA, second quarternon-GAAP | $16 million | – | – |
| Kudu total revenues, first six monthsother | $132 million | – | – |
| Kudu pre-tax income, first six monthsother | $109 million | – | – |
| Kudu adjusted EBITDA, first six monthsnon-GAAP | $33 million | – | – |
| Kudu return on equity, trailing 12 monthsother | 15% | – | – |
| HG Global gross written premiums, second quarterother | $11 million | – | – |
| HG Global gross written premiums, first six monthsother | $19 million | – | – |
| HG Global earned premiums, second quarterother | $8 million | – | – |
| HG Global earned premiums, first six monthsother | $15 million | – | – |
| HG Global total par value of policies assumed, second quarterother | $818 million | – | – |
| HG Global total par value of policies assumed, first six monthsother | $1,335 million | – | – |
| HG Global total gross pricing, second quarterother | 135 basis points | – | – |
| HG Global total gross pricing, first six monthsother | 145 basis points | – | – |
| HG Global pre-tax income, second quarterother | $10 million | – | – |
| HG Global pre-tax income, first six monthsother | $21 million | – | – |
| HG Global net realized and unrealized investment gains (losses), second quarterother | $(2) million | – | – |
| HG Global net realized and unrealized investment gains (losses), first six monthsother | $(7) million | – | – |
| Fair value of BAM surplus notesother | $353 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Ark/WM OutriggerThe segment reported an 84% combined ratio. Ark cited softening market conditions in property lines, partly offset by growth in specialty lines. | $376 million of net earned premiums | – | – |
| KuduResults included $19 million of net investment income and $50 million of net realized and unrealized investment gains, with gains driven by participation-contract fair-value increases and sale transactions. | $69 million of total revenues | – | – |
| HG GlobalGross written premiums declined primarily because of continued tightening of municipal bond spreads and weaker primary market pricing. | $8 million of earned premiums | – | – |
| DistinguishedThe provided filing text is truncated during the Distinguished discussion. | $57 million of commission and fee revenues | – | – |
Capital returns
- White Mountains repurchased $191 million of shares in the quarter.
- White Mountains deployed $132 million into two WTM Partners acquisitions.
- HG Global paid a $93 million cash dividend to shareholders on May 26, 2026, of which $90 million was paid to White Mountains.
- Undeployed capital now stands at roughly $0.8 billion.
What drove it
- Book value per share increased 4% in the second quarter, driven by strong operating company results and solid investment returns.
- MediaAlpha's share price increased 35% in the quarter, producing $58 million of mark-to-market gains.
- Excluding MediaAlpha, the investment portfolio was up 2.8%.
- Ark recorded estimated losses of $17 million related to the war in Iran in the second quarter, net of reinsurance and reinstatement premiums.
- Kudu's fair-value gains were primarily due to lower discount rates across the portfolio and step-ups in valuation related to certain sale transactions.
- WM Outrigger Re's second-quarter combined ratio was 25% compared to 44% in the second quarter of 2025.
Concerns
- Ark has ongoing exposure to the war in Iran, primarily through the specialty and marine & energy lines of business.
- Ark's gross written premiums declined in the second quarter primarily because of softening market conditions in property lines.
- HG Global reported lower gross written premiums and lower total gross pricing, with management citing municipal bond spreads and weaker primary market pricing.
- HG Global's second-quarter and first-six-month results included net realized and unrealized investment losses of $(2) million and $(7) million, driven by movements in interest rates.
- The supplied filing text is truncated during the Distinguished segment discussion.
What to watch
- Ark's ongoing exposure to the war in Iran and any additional related losses.
- Property-line market conditions at Ark and the balance between property softness and specialty growth.
- Kudu's participation-contract valuations, discount rates, sale transactions and investment pipeline.
- HG Global's municipal bond spreads, primary market pricing and policy-assumption volumes.
- Deployment of roughly $0.8 billion of undeployed capital and further WTM Partners acquisitions.
Balance sheet and cash flow
- Ark reported book value of $1,615 million as of June 30, 2026.
- Ark reported tangible book value of $1,736 million as of June 30, 2026.
- The fair value of the BAM surplus notes increased to $353 million as of June 30, 2026 compared to $346 million as of March 31, 2026, resulting from $7 million of accrued interest.
- On July 28, 2026, HG Global received a cash payment of principal and interest on the BAM Surplus Notes of $8 million.
- On May 14, 2026, HG Global refinanced its senior debt facility, upsizing the facility to $200 million and lowering the interest rate to a fixed rate of 7.4%.
Analysis
White Mountains reported book value per share of $2,258 as of June 30, 2026, up 4% in the second quarter and 3% in the first six months, including dividends. Comprehensive income attributable to common shareholders was $199 million in the second quarter, compared with $124 million in the second quarter of 2025. Net realized and unrealized investment gains were $151 million, including $58 million of unrealized gains from MediaAlpha. The company said MediaAlpha's share price increased 35% in the quarter, while the investment portfolio excluding MediaAlpha was up 2.8%.
Ark/WM Outrigger reported an 84% second-quarter combined ratio, unchanged from the prior-year quarter. Segment net earned premiums were $376 million compared with $364 million, while gross written premiums were $778 million compared with $815 million. Ark attributed the gross-written-premium decline primarily to softening property-market conditions, partly offset by specialty growth. Ark's combined ratio included three points of catastrophe losses, primarily related to the war in Iran, and eight points of net favorable prior-year development.
Ark reported pre-tax income of $78 million, compared with $91 million, and net realized and unrealized investment gains of $31 million, compared with $51 million. Its book value was $1,615 million and tangible book value was $1,736 million as of June 30, 2026. Kudu reported total revenues of $69 million and pre-tax income of $57 million, compared with $20 million and $11 million, respectively. Kudu's adjusted EBITDA was $16 million in both periods, and its trailing-12-month return on equity was 15% as of June 30, 2026, compared with 12% as of March 31, 2026.
HG Global reported lower second-quarter gross written premiums of $11 million compared with $19 million, and total gross pricing of 135 basis points compared with 206 basis points. Pre-tax income was $10 million compared with $17 million. The business refinanced its senior debt facility to $200 million at a fixed rate of 7.4%, then paid a $93 million cash dividend, including $90 million to White Mountains. White Mountains also repurchased $191 million of shares and deployed $132 million into two WTM Partners acquisitions. No forward guidance was provided in the supplied text.
Management, verbatim
Book value per share was up 4% in the quarter, driven by strong operating company results and solid investment returns.
Liam Caffrey, CEO
Gross premiums were down 5% in the quarter driven by rate softening in property lines, which offset solid growth in specialty lines. The Iran war losses to date have been manageable but uncertainty remains.
Ian Beaton, CEO of Ark
We delivered a strong second quarter and start to the year, generating a 4% return in the quarter and a 15% return on a trailing 12 months basis.
Rob Jakacki, CEO of Kudu
Not in the filing
stated, not guessed- The supplied filing text is truncated during the Distinguished discussion; complete Distinguished metrics, comparisons and drivers are unavailable.
- Total revenue for White Mountains Insurance Group Ltd is not reported in the supplied text.
- GAAP operating income is not reported in the supplied text.
- GAAP net income is not reported in the supplied text.
- GAAP and non-GAAP earnings per share are not reported in the supplied text.
- Gross margin, operating expenses and tax rate are not reported in the supplied text.
- Operating cash flow and free cash flow are not reported in the supplied text.
- White Mountains cash balance and total debt are not reported in the supplied text.
- Forward financial guidance is not reported in the supplied text.
- Previous outlook was not provided.
- Percentage changes for individual revenue and income line items are not printed on their own metric rows; no calculated changes are provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SEC Form 8-K (Item 2.02) with Exhibit 99.1 reporting White Mountains’ second quarter 2026 results and financial condition, including book value per share, segment performance, and capital actions.
Ticker impact
White Mountains reports Q2 results, including 4% book value per share growth to $2,258 and $191M share repurchases, plus segment combined ratios.
Near-term bias modestly positive as traders price in book value growth and manageable catastrophe exposure, while monitoring investment-mark-to-market volatility.
This is a primary earnings-style disclosure with multiple concrete figures (book value, combined ratios, repurchases, MediaAlpha mark-to-market gains, and Ark Iran losses). However, the excerpt lacks full income statement and guidance, limiting conviction on forward earnings power.
Market effects
Reinsurance and specialty insurers may see read-across from Ark’s 84% combined ratio and quantified catastrophe/war exposure, plus commentary on rate softening in property lines.
Catastrophe-loss discussion references Iran war exposure and prior California wildfire losses, relevant to global catastrophe risk pricing.
Investment portfolio performance and mark-to-market gains (including MediaAlpha) highlight sensitivity to broader credit/equity markets affecting global insurers.
Counterpoint
Book value growth can be boosted by investment mark-to-market gains and dividends; underwriting profitability may be less favorable if catastrophe or rate softening worsens.
Key entities
- companyWhite Mountains Insurance Group, Ltd.
Reports Q2 2026 results, book value per share of $2,258 (up 4% in the quarter), $191M share repurchases, and segment combined ratios including Ark at 84%.
- segmentArk/WM Outrigger
Reports combined ratio of 84% in Q2 2026 and discloses estimated Iran-war losses of $17M (net of reinsurance and reinstatement premiums).
- equity investmentMediaAlpha
White Mountains discloses MediaAlpha share price up 35% in the quarter, generating $58M of mark-to-market gains and $58M of unrealized investment gains in Q2.
