White Mountains Insurance Group Ltd. Files 2023 Annual Report on Form 10-K

TL;DR

<b>White Mountains Insurance Group Ltd. has filed its 2023 Form 10-K detailing its financial performance and operations.</b>

AI Summary

WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) filed a Annual Report (10-K) with the SEC on February 26, 2024. Filing is the 2023 annual report (10-K) for White Mountains Insurance Group Ltd. The report covers the fiscal year ending December 31, 2023. The company is incorporated in Delaware (D0). Primary SIC code is FIRE, MARINE & CASUALTY INSURANCE [6331]. Business and mailing address is 23 South Main Street, Suite 3B, Hanover, NH 03755.

Why It Matters

For investors and stakeholders tracking WHITE MOUNTAINS INSURANCE GROUP LTD, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial health and strategic direction for the past fiscal year. Investors and analysts can use this report to assess the company's performance, risks, and future prospects in the insurance sector.

Risk Assessment

Risk Level: medium — WHITE MOUNTAINS INSURANCE GROUP LTD shows moderate risk based on this filing. The company operates in the insurance industry, which is subject to significant regulatory oversight and market volatility, as indicated by its SIC code and the nature of its business.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand the company's performance and potential challenges.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240226 — Filing Date (Filed as of date)
• 0000776867 — Central Index Key (Filer's unique identifier)
• 6331 — Standard Industrial Classification (Industry code for Fire, Marine & Casualty Insurance)

Key Players & Entities

• WHITE MOUNTAINS INSURANCE GROUP LTD (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240226 (date) — Filed as of date
• FIRE, MARINE & CASUALTY INSURANCE [6331] (industry) — Standard Industrial Classification
• 23 SOUTH MAIN STREET (address) — Business address street 1
• HANOVER (location) — Business address city
• NH (location) — Business address state
• 03755 (postal_code) — Business address zip

FAQ

Industry Context

The company operates within the Fire, Marine & Casualty Insurance industry, a sector characterized by significant underwriting risks and regulatory scrutiny.

Regulatory Implications

As an insurance provider, the company is subject to state-specific regulations governing solvency, claims handling, and market conduct.

What Investors Should Do

1. Analyze the company's financial statements for the fiscal year ended December 31, 2023.
2. Review any disclosed risk factors related to market conditions or regulatory changes.
3. Compare the company's performance metrics against industry benchmarks.

Year-Over-Year Comparison

This is the initial filing for the 2023 fiscal year, providing a baseline for future comparisons.

Key Financial Figures

• $1.00 — ch registered Common Shares, par value $1.00 per share WTM New York Stock Exchange
• $500 million — White Mountains expects to deploy up to $500 million of equity capital through WTM Partners
• $609 million — in 2012, HG Global was capitalized with $609 million. HG Global, together with its subsidiar
• $503 million — lization of BAM through the purchase of $503 million of surplus notes issued by BAM (the "BA
• $1,221 million — 2023 and 2022, White Mountains reported $1,221 million and $1,125 million of total assets and
• $1,125 million — e Mountains reported $1,221 million and $1,125 million of total assets and $376 million and $3
• $376 million — and $1,125 million of total assets and $376 million and $364 million of total equity relate
• $364 million — on of total assets and $376 million and $364 million of total equity related to HG Global. A
• $1 million — 2023 and 2022, White Mountains reported $1 million and $(1) million of noncontrolling inte
• $530 million — 2023 and 2022, White Mountains reported $530 million and $507 million of total assets and $(
• $507 million — ite Mountains reported $530 million and $507 million of total assets and $(140) million and
• $100 million — capitalized in 2018 via the issuance of $100 million of insurance linked securities (the "Fi
• $165 million — sures 90% of aggregate losses exceeding $165 million on a portion of BAM's financial guarant
• $276 million — rovide coverage for losses in excess of $276 million. The 2018 Covered Portfolio consists of
• $150 million — In 2021, Fidus Re issued an additional $150 million of insurance linked securities (the "Fi

Filing Documents

• wtm-20231231.htm (10-K) — 6985KB
• wtm10-k2023exhibit4.htm (EX-4) — 15KB
• wtm10-k2023exhibit21.htm (EX-21) — 25KB
• wtm10-k2023exhibit231.htm (EX-23.1) — 2KB
• wtm10-k2023exhibit232.htm (EX-23.2) — 2KB
• wtm10-k2023exhibit24.htm (EX-24) — 32KB
• wtm10-k2023exhibit311.htm (EX-31.1) — 9KB
• wtm10-k2023exhibit312.htm (EX-31.2) — 9KB
• wtm10-k2023exhibit321.htm (EX-32.1) — 7KB
• wtm10-k2023exhibit322.htm (EX-32.2) — 7KB
• wtm10-k2023exhibit971.htm (EX-97.1) — 17KB
• wtm-20231231_g1.jpg (GRAPHIC) — 99KB
• 0000776867-24-000005.txt (&nbsp;) — 31128KB
• wtm-20231231.xsd (EX-101.SCH) — 169KB
• wtm-20231231_cal.xml (EX-101.CAL) — 215KB
• wtm-20231231_def.xml (EX-101.DEF) — 1157KB
• wtm-20231231_lab.xml (EX-101.LAB) — 1719KB
• wtm-20231231_pre.xml (EX-101.PRE) — 1382KB
• wtm-20231231_htm.xml (XML) — 6395KB

Business

Business 1 General 1 HG Global/BAM 1 Ark /WM Outrigger 8 Kudu 16 Other Operations 16 Investments 19 Discontinued Operations 19 Regulation 19 Ratings 26 Human Capital 26 ITEM 1A.

Risk Factors

Risk Factors 27 ITEM 1B. Unresolved Staff Comments 38

C

ITEM 1 C . Cybersecurity 39 ITEM 2.

Properties

Properties 39 ITEM 3.

Legal Proceedings

Legal Proceedings 39 ITEM 4. Mine Safety Disclosures 40 Available Information 40 Information About Our Executive Officers 40 PART II ITEM 5. Market for the Company's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 41 ITEM 6.

Selected Financial Data

Selected Financial Data 41 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Results of Operations 42 Liquidity and Capital Resources 67 Transactions with Related Persons 73 Non-GAAP Financial Measures 73 Critical Accounting Estimates 74

Forward-Looking Statements

Forward-Looking Statements 95 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 96 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 98 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 98 ITEM 9A.

Controls and Procedures

Controls and Procedures 98 ITEM 9B. Other Information 99 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 99 ITEM 11.

Executive Compensation

Executive Compensation 99 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 99 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 99 ITEM 14. Principal Accountant Fees and Services 99 PART IV ITEM 15. Exhibits and Financial Statement Schedules 100 ITEM 16. Form 10-K Summary 101 CERTIFICATIONS C-1 PART I

Business

Item 1. Business GENERAL White Mountains Insurance Group, Ltd. (the "Company" or the "Registrant") is an exempted Bermuda limited liability company whose principal businesses are conducted through its subsidiaries and affiliates. Within this report, the term "White Mountains" is used to refer to one or more entities within the consolidated organization, as the context requires. The Company's headquarters is located at 26 Reid Street, Hamilton, Bermuda HM 11, its principal executive office is located at 23 South Main Street, Suite 3B, Hanover, New Hampshire 03755-2053 and its registered office is located at Clarendon House, 2 Church Street, Hamilton, Bermuda HM 11. The Company's website is located at www.whitemountains.com . The information contained on White Mountains's website is not incorporated by reference into, and is not a part of, this report. White Mountains is engaged in the business of making opportunistic and value-oriented acquisitions of businesses and assets in the insurance, financial services and related sectors, operating these businesses and assets through its subsidiaries and, if and when attractive exit valuations become available, disposing of these businesses and assets. As of December 31, 2023, White Mountains conducted its business primarily in four areas: municipal bond insurance, property and casualty insurance and reinsurance, capital solutions for asset and wealth management firms and other operations. White Mountains's municipal bond insurance business is conducted through its subsidiary HG Global Ltd. and its reinsurance subsidiary HG Re Ltd. ("HG Re") (collectively, "HG Global"). HG Global was established to fund the startup of and provide reinsurance, through HG Re, to Build America Mutual Assurance Company ("BAM"), a mutual municipal bond insurance company (collectively, "HG Global/BAM"). White Mountains's property and casualty insurance and reinsurance business is conducted through its subsidiary Ark Insurance Holdings Limited

View Full Filing

View this 10-K filing on SEC EDGAR