White Mountains Insurance Group (WTM) Investor Day 2025 summary

Financial performance and capital allocation

• Adjusted book value per share increased 8% to $1,834 in 2024, with a 29% rise in stock price; focus remains on compounding per-share and intrinsic value over time.

• Strong operating results at Ark, Outrigger, and Bamboo; investment portfolio returned 5.4% in 2024, outperforming benchmarks.

• No new capital deployments in 2024, but 2025 includes $150M in BroadStreet Partners and $65M for 66% of Enterprise Solutions via White Mountains Partners.

• Since 2017, $3.2B redeployed and $2.1B returned to shareholders; undeployed capital is ~$550M, or 9% of total capital as of 1Q25.

• No parent financial leverage; consolidated debt-to-total capital ratio is 12%, up slightly due to Kudu and Bamboo debt activity.

Business segment highlights and strategy

• Ark and Outrigger are the largest capital positions, followed by Kudu, HG Global, and Bamboo; portfolio remains diversified and focused on insurance and financial services.

• Ark achieved 28% tangible book value growth, maintained an 83% combined ratio, and scaled 3.7x since 2021 investment.

• Outrigger delivered strong returns (37% in 2023, 22% in 2024, projected 32% in 2025) and renewed for 2025.

• Kudu reached $1B in portfolio value, deployed $104M in 2024 and $69M in 1Q25, with 7% portfolio growth and TTM GAAP ROE of 13%.

• BAM insured $20B in new par (up 26% YoY), with $1.8B in claims-paying resources; focus on sector penetration and optimizing investment returns.

• Bamboo doubled managed premiums to $484M and grew EBITDA 7x in 2024; successfully navigated California wildfires and expanded reinsurance capacity.

• MediaAlpha posted record operating results in 2024, with TTM Adjusted EBITDA up 224% YOY in 1Q25.

• PassportCard/DavidShield core premiums declined 3% in 2024 due to Middle East conflict but rebounded in 1Q25.

Market environment and future outlook

• Property insurance rates are softening despite catastrophe risks; Ark remains disciplined, seeking opportunities in aviation and cyber.

• BAM expects continued strong secondary market activity and premium growth, supported by high pricing and volatility.

• Bamboo sees extended growth runway in California and plans to launch in Texas by mid-2025, expanding digital and AI capabilities.

• White Mountains Partners launched, targeting $500M in equity deployment outside core insurance, with first acquisition in specialty electrical contracting and focus on essential services, light industrial, and specialty consumer sectors.

• Investment portfolio remains conservatively positioned, with higher equity exposure and shorter duration than peers; focus on short duration fixed income and selective equity exposure.