White Mountains Insurance Group (WTM) Q3 2024 earnings summary

Executive summary

• Book value per share rose to $1,795 and adjusted book value per share to $1,883 as of September 30, 2024, up 4% and 6% in Q3, and 9% and 11% year-to-date, driven by MediaAlpha gains and strong operations.

• Net income attributable to common shareholders was $179M for Q3 2024 and $361M for the nine months, with EPS of $69.68 and $140.66, respectively.

• Comprehensive income attributable to common shareholders was $180M in Q3 and $361M for the first nine months, up from $23M and $224M in the prior year periods.

• BAM deconsolidation in July 2024 led to a $115M unrealized loss on BAM Surplus Notes, now fair valued at $411M.

• White Mountains completed the Bamboo acquisition in January 2024, investing $297M for a controlling stake.

Financial highlights

• Q3 2024 total revenues were $839M, up from $520M in Q3 2023; nine-month revenues were $1.88B, up from $1.43B year-over-year.

• Q3 2024 net income attributable to common shareholders was $179M, up from $24M in Q3 2023; nine-month net income was $361M, up from $223M.

• Q3 2024 EPS was $69.68 (vs. $9.19 in Q3 2023); nine-month EPS was $140.66 (vs. $86.82 year-over-year).

• Total consolidated portfolio return was 4.6% in Q3 2024 (3.3% excluding MediaAlpha); YTD return was 9.4% (6.9% excluding MediaAlpha).

• Year-to-date dividends per share were $1.00.

Outlook and guidance

• Undeployed capital stood at $650M as of September 30, 2024, supporting future growth and capital deployment.

• Ark/WM Outrigger does not expect Hurricane Milton losses to materially diverge from planned catastrophe losses for 2024.

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