White Mountains Insurance Group (WTM) Q2 2024 earnings summary

Executive summary

• Book value per share was $1,722 and adjusted book value per share was $1,777 as of June 30, 2024, both down 1% in Q2 but up 4% year-to-date, including dividends, driven by solid operating results and investment returns, offset by MediaAlpha losses.

• Net income attributable to common shareholders was a loss of $54.6 million for Q2 2024, compared to income of $19.6 million in Q2 2023; net income for the first six months was $181.8 million, down from $199.1 million year-over-year.

• Total revenues for Q2 2024 were $395.4 million, up from $378.4 million in Q2 2023; for the first six months, revenues were $1,042.7 million, up from $910.3 million year-over-year.

• The quarter was impacted by $139 million of net realized and unrealized investment losses from MediaAlpha, while excluding MediaAlpha, investment returns remained positive.

• As of June 30, 2024, undeployed capital stood at approximately $650 million.

Financial highlights

• Q2 2024 net income attributable to common shareholders: $(54.6) million; six months: $181.8 million.

• Q2 2024 diluted EPS: $(21.24); six months: $70.93.

• Q2 2024 total revenues: $395.4 million; six months: $1,042.7 million.

• Q2 2024 total consolidated portfolio return: -0.1% (2.2% excluding MediaAlpha); six months: 4.5% (3.5% excluding MediaAlpha).

• Dividend paid per share: $1.00 year-to-date.

Outlook and guidance

• Book value and adjusted book value per share are expected to remain sensitive to MediaAlpha's share price; each $1 change in MediaAlpha's share price impacts book value per share by ~$7.

• Management expects continued solid operating results and investment returns, with a focus on capital deployment and risk management.

• BAM sees strong demand in the primary municipal bond market and expects continued opportunities from market volatility.

• Kudu anticipates further portfolio growth and deployment in the second half of 2024.

• Bamboo projects ongoing robust, profitable growth driven by new business and renewals.