White Mountains Insurance Group (WTM) Q1 2025 earnings summary

Executive summary

• Book value per share rose 0.4% to $1,752 as of March 31, 2025, including dividends, driven by solid operating results and investment returns, partially offset by a decline in MediaAlpha share price.

• Net income attributable to common shareholders was $33.9 million, down from $236.4 million in Q1 2024, mainly due to $37 million of unrealized losses in MediaAlpha.

• Comprehensive income attributable to common shareholders was $35.1 million, compared to $236.2 million in Q1 2024, mainly due to MediaAlpha's 18% share price decline.

• Major events included the acquisition of Enterprise Solutions and a $150 million investment commitment to BroadStreet Partners; undeployed capital now at ~$550 million.

Financial highlights

• Total revenues were $577.8 million, down from $647.3 million in Q1 2024.

• Pre-tax income was $72.4 million, compared to $232.6 million in Q1 2024.

• EPS (basic and diluted) was $13.19, down from $92.33 in Q1 2024.

• Total consolidated portfolio return on invested assets was 1.7% (2.3% excluding MediaAlpha), compared to 4.6% (1.2% ex-MediaAlpha) in Q1 2024.

• Dividends paid per share were $1.00.

Outlook and guidance

• Undeployed capital stands at roughly $550 million after recent acquisitions and investments.

• Management expects continued capital deployment activity and sees a robust pipeline of opportunities, especially at Kudu.

• Bamboo is well-positioned for continued profitable growth after favorable reinsurance renewals.

• Market conditions for Ark remain attractive despite some rate declines.

• Management believes cash balances, cash flows from operations, and investment sales/maturities are adequate to meet expected requirements.