Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | WHITE MOUNTAINS INSURANCE GROUP LTD | ||
Entity Central Index Key | 776,867 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,745,786,244 | ||
Entity Common Stock, Shares Outstanding | 3,167,436 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Total investments | $ 2,542.9 | $ 3,380.7 |
Goodwill and other intangible assets | 537.5 | 62.1 |
Total assets | 3,362.6 | 3,659.2 |
Liabilities | ||
Debt | 192.7 | 23.8 |
Total liabilities | 644.4 | 298.4 |
White Mountains’s common shareholders’ equity | ||
White Mountains’s common shares at $1 par value per share—authorized 50,000,000 shares; issued and outstanding 3,173,115 and 3,750,171 shares | 3.2 | 3.8 |
Paid-in surplus | 580.8 | 666.8 |
Retained earnings | 2,264.9 | 2,823.2 |
Accumulated other comprehensive income (loss), after-tax: | ||
Net unrealized foreign currency translation losses and interest rate swap | (5.8) | (1.3) |
Total White Mountains’s common shareholders’ equity | 2,843.1 | 3,492.5 |
Non-controlling interests | ||
Non-controlling interests | (124.9) | (131.7) |
Total equity | 2,718.2 | 3,360.8 |
Total liabilities and equity | 3,362.6 | 3,659.2 |
HG Global-BAM | ||
Assets | ||
Fixed maturity investments, at fair value | 701.4 | 623.6 |
Short-term investments, at fair value | 66.9 | 69.8 |
Total investments | 768.3 | 693.4 |
Cash | 12.5 | 25.6 |
Premium receivable | 6.4 | 4.5 |
Deferred acquisition costs | 19 | 14.8 |
Accrued investment income | 4.9 | 3.4 |
Accounts receivable on unsettled investment sales | 0 | 0 |
Other assets | 5.1 | 5.7 |
Total assets | 816.2 | 747.4 |
Liabilities | ||
Unearned insurance premiums | 176 | 136.8 |
Accounts payable on unsettled investment purchases | 2.2 | 0.6 |
Other liabilities | 34.3 | 29.6 |
Total liabilities | 212.5 | 167 |
NSM Holding Co LLC | ||
Assets | ||
Short-term investments, at fair value | 1.7 | 0 |
Cash | 66.2 | 0 |
Commission Receivable | 44 | 0 |
Goodwill and other intangible assets | 486.2 | 0 |
Other assets | 28.9 | 0 |
Total assets | 627 | 0 |
Liabilities | ||
Debt | 178.5 | 0 |
Premiums payable | 77.2 | 0 |
Contingent consideration earnout liabilities | 20.2 | 0 |
Other liabilities | 38.9 | 0 |
Total liabilities | 314.8 | 0 |
MediaAlpha | ||
Assets | ||
Cash | 5.7 | 9.1 |
Goodwill and other intangible assets | 43.4 | 53.7 |
Accounts receivable from publishers and advertisers | 37 | 32.4 |
Other assets | 2.3 | 1.3 |
Total assets | 88.4 | 96.5 |
Liabilities | ||
Debt | 14.2 | 23.8 |
Amounts due to publishers and advertisers | 27 | 31.6 |
Other liabilities | 5.7 | 4.4 |
Total liabilities | 46.9 | 59.8 |
Other | ||
Assets | ||
Fixed maturity investments, at fair value | 376.1 | 1,506.1 |
Short-term investments, at fair value | 145.6 | 106.3 |
Common equity securities, at fair value | 925.6 | 866.1 |
Other long-term investments | 325.6 | 208.8 |
Total investments | 1,772.9 | 2,687.3 |
Cash | 25.9 | 62.4 |
Accrued investment income | 5.5 | 13.9 |
Accounts receivable on unsettled investment sales | 0 | 20.9 |
Goodwill and other intangible assets | 7.9 | 8.4 |
Other assets | 15.5 | 19.1 |
Assets held for sale | 3.3 | 3.3 |
Total assets | 1,831 | 2,815.3 |
Liabilities | ||
Accrued incentive compensation | 38.9 | 60.6 |
Accounts payable on unsettled investment purchases | 5 | 0 |
Other liabilities | 26.3 | 11 |
Total liabilities | $ 70.2 | $ 71.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash restricted | $ 50 | $ 0 |
Common shares, par value per share (in dollars per share) | $ 1 | $ 1 |
Common shares, authorized shares | 50,000,000 | 50,000,000 |
Common shares, issued shares | 3,173,115 | 3,750,171 |
Common shares, outstanding shares | 3,173,115 | 3,750,171 |
NSM Holding Co LLC | ||
Cash restricted | $ 50 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Revenues | ||||||||||||||
Earned insurance premiums | $ 13.9 | $ 10.4 | $ 13.4 | |||||||||||
Net investment income | 59 | 56 | 32.1 | |||||||||||
Net realized and unrealized investment gains | (108.3) | 133.3 | (27.4) | |||||||||||
Commission revenues | 394.3 | 167 | 118.3 | |||||||||||
Other revenue | 10.2 | 7.1 | 21.3 | |||||||||||
Total revenues | $ 6 | $ 198.7 | $ 122.3 | $ 42.1 | $ 114 | $ 87.5 | $ 83.5 | $ 88.8 | 369.1 | 373.8 | 157.7 | |||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 1.1 | 8 | ||||||||||||
Insurance acquisition expenses | 5.3 | 4.1 | 5.6 | |||||||||||
Other underwriting expenses | 0.4 | 0.4 | 0.4 | |||||||||||
Cost of sales | 248.7 | 139.4 | 102 | |||||||||||
General and administrative expenses | 235.7 | 208 | 175.5 | |||||||||||
Broker commission expense | 28.9 | |||||||||||||
Amortization of other intangible assets | 18.8 | 10.7 | 10.5 | |||||||||||
Interest expense on debt | 9.5 | 2.3 | 3 | |||||||||||
Total expenses | 150.1 | 154.4 | 134.7 | 108.1 | 108.8 | 79.1 | 85.7 | 92.4 | 547.3 | 366 | 305 | |||
Pre-tax income (loss) | (144.1) | 44.3 | (12.4) | (66) | 5.2 | 8.4 | (2.2) | (3.6) | (178.2) | 7.8 | (147.3) | |||
Income tax (expense) benefit | 3.6 | 3.6 | (2.5) | (0.7) | 2.5 | 4 | 1 | 0.3 | 4 | 7.8 | 32.9 | |||
Net income (loss) from continuing operations | (140.5) | 47.9 | (14.9) | (66.7) | 7.7 | 12.4 | (1.2) | (3.3) | (174.2) | 15.6 | (114.4) | |||
Gain (loss) on sale of other discontinued operations, net of tax | (17.2) | 557 | 415.1 | |||||||||||
Net income from discontinued operations, net of tax | 0 | (17.3) | 0 | 0.1 | 4.3 | 539.1 | 2.8 | 31.3 | 0 | 20.5 | 108.3 | |||
Net income | (191.4) | 593.1 | 409 | |||||||||||
Net loss attributable to non-controlling interests | 3 | 10.2 | 18.4 | 18.6 | 10.5 | 10.6 | 12 | 1 | 50.2 | 34.1 | (7.2) | |||
Net income attributable to White Mountains’s common shareholders | $ (137.5) | $ 40.8 | $ 3.5 | $ (48) | $ 22.5 | $ 562.1 | $ 13.6 | $ 29 | (141.2) | 627.2 | 401.8 | |||
HG Global-BAM | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 13.9 | 9.4 | 5.9 | |||||||||||
Net investment income | 16.7 | 12.3 | 9 | |||||||||||
Net realized and unrealized investment gains | (7.5) | 0.6 | 0.7 | |||||||||||
Commission revenues | 0 | 0 | 0 | |||||||||||
Other revenue | 1.2 | 1 | 1.1 | |||||||||||
Total revenues | 24.3 | 23.3 | 16.7 | |||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 0 | 0 | ||||||||||||
Insurance acquisition expenses | 5.3 | 4 | 3.4 | |||||||||||
Other underwriting expenses | 0.4 | 0.4 | 0.4 | |||||||||||
Cost of sales | 0 | 0 | 0 | |||||||||||
General and administrative expenses | 48 | 42.9 | 39.6 | |||||||||||
Broker commission expense | 0 | |||||||||||||
Amortization of other intangible assets | 0 | 0 | 0 | |||||||||||
Interest expense on debt | 0 | 0 | 0 | |||||||||||
Total expenses | 53.7 | 47.3 | 43.4 | |||||||||||
Pre-tax income (loss) | (29.4) | (24) | (26.7) | |||||||||||
NSM Holding Co LLC | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 0 | |||||||||||||
Net investment income | 0 | |||||||||||||
Net realized and unrealized investment gains | 0 | |||||||||||||
Commission revenues | 94.7 | 0 | 0 | |||||||||||
Other revenue | 6.9 | 0 | 0 | |||||||||||
Total revenues | 101.6 | 0 | 0 | |||||||||||
Expenses | ||||||||||||||
Insurance acquisition expenses | 0 | |||||||||||||
Other underwriting expenses | 0 | |||||||||||||
Cost of sales | 0 | |||||||||||||
General and administrative expenses | 61.6 | 0 | 0 | |||||||||||
Broker commission expense | 28.9 | 0 | 0 | |||||||||||
Amortization of other intangible assets | 8.3 | 0 | 0 | |||||||||||
Interest expense on debt | 8 | 0 | 0 | |||||||||||
Total expenses | 106.8 | 0 | 0 | |||||||||||
Pre-tax income (loss) | (5.2) | |||||||||||||
MediaAlpha | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 0 | 0 | 0 | |||||||||||
Net investment income | 0 | 0 | 0 | |||||||||||
Net realized and unrealized investment gains | 0 | 0 | 0 | |||||||||||
Commission revenues | 295.5 | 163.2 | 116.5 | |||||||||||
Other revenue | 1.6 | 0 | 0 | |||||||||||
Total revenues | 297.1 | 163.2 | 116.5 | |||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 0 | 0 | ||||||||||||
Insurance acquisition expenses | 0 | 0 | 0 | |||||||||||
Other underwriting expenses | 0 | 0 | 0 | |||||||||||
Cost of sales | 245 | 135.9 | 97.8 | |||||||||||
General and administrative expenses | 31.7 | 16.2 | 11.8 | |||||||||||
Broker commission expense | 0 | |||||||||||||
Amortization of other intangible assets | 10.3 | 10.5 | 10.1 | |||||||||||
Interest expense on debt | 1.2 | 1 | 0.9 | |||||||||||
Total expenses | 288.2 | 163.6 | 120.6 | |||||||||||
Pre-tax income (loss) | 8.9 | (0.4) | (4.1) | |||||||||||
Other | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 0 | 1 | 7.5 | |||||||||||
Net investment income | 42.3 | 43.7 | 23.1 | |||||||||||
Net realized and unrealized investment gains | (100.8) | 132.7 | (28.1) | |||||||||||
Commission revenues | 4.1 | 3.8 | 1.8 | |||||||||||
Other revenue | 0.5 | 6.1 | 20.2 | |||||||||||
Total revenues | (53.9) | 187.3 | 24.5 | |||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 0 | 1.1 | 8 | |||||||||||
Insurance acquisition expenses | 0 | 0.1 | 2.2 | |||||||||||
Other underwriting expenses | 0 | 0 | 0 | |||||||||||
Cost of sales | 3.7 | 3.5 | 4.2 | |||||||||||
General and administrative expenses | 94.4 | 148.9 | 124.1 | |||||||||||
Broker commission expense | 0 | |||||||||||||
Amortization of other intangible assets | 0.2 | 0.2 | 0.4 | |||||||||||
Interest expense on debt | 0.3 | 1.3 | 2.1 | |||||||||||
Total expenses | 98.6 | 155.1 | 141 | |||||||||||
Pre-tax income (loss) | (152.5) | 32.2 | (116.5) | |||||||||||
OneBeacon | ||||||||||||||
Expenses | ||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | $ 554.6 | |||||||||||||
Net income from discontinued operations, net of tax | $ 20.5 | 108.6 | ||||||||||||
Tranzact | ||||||||||||||
Expenses | ||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 3.2 | 51.9 | ||||||||||||
Sirius Group | ||||||||||||||
Revenues | ||||||||||||||
Net realized and unrealized investment gains | 3.7 | |||||||||||||
Expenses | ||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | $ (4) | 363.2 | ||||||||||||
Discontinued Operations | ||||||||||||||
Expenses | ||||||||||||||
Net income attributable to White Mountains’s common shareholders | (141.2) | 627.2 | 401.8 | |||||||||||
Discontinued Operations | OneBeacon | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 807.6 | 1,100.6 | ||||||||||||
Net investment income | 39.7 | 50.6 | ||||||||||||
Net realized and unrealized investment gains | 38.8 | 37.7 | ||||||||||||
Other revenue | 7.7 | 5.5 | ||||||||||||
Total revenues | 893.8 | 1,194.4 | ||||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 546 | 656 | ||||||||||||
Other underwriting expenses | 156.2 | 209 | ||||||||||||
General and administrative expenses | 21.2 | 14.2 | ||||||||||||
Interest expense on debt | 10 | 13.1 | ||||||||||||
Total expenses | 879 | 1,098.3 | ||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 0 | 554.5 | 0 | |||||||||||
Net income from discontinued operations, net of tax | 20.5 | 108.6 | ||||||||||||
Discontinued Operations | Tranzact | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 0 | 0 | ||||||||||||
Net investment income | 0 | 0 | ||||||||||||
Net realized and unrealized investment gains | 0 | 0 | ||||||||||||
Other revenue | 0 | 119.6 | ||||||||||||
Total revenues | 0 | 119.6 | ||||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 0 | 0 | ||||||||||||
Other underwriting expenses | 0 | 0 | ||||||||||||
General and administrative expenses | 0 | 116.7 | ||||||||||||
Interest expense on debt | 3.2 | |||||||||||||
Total expenses | 0 | 119.9 | ||||||||||||
Income tax (expense) benefit | 21.4 | |||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 0 | 3.2 | 51.9 | |||||||||||
Net income from discontinued operations, net of tax | 0 | 6.1 | ||||||||||||
Discontinued Operations | Sirius Group | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 0 | 240.1 | ||||||||||||
Net investment income | 0 | 14.4 | ||||||||||||
Net realized and unrealized investment gains | 0 | (1.5) | ||||||||||||
Other revenue | 0 | 0.6 | ||||||||||||
Total revenues | 0 | 253.6 | ||||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 0 | 154.9 | ||||||||||||
Other underwriting expenses | 0 | 30.9 | ||||||||||||
General and administrative expenses | 0 | 10.4 | ||||||||||||
Interest expense on debt | 7.9 | |||||||||||||
Total expenses | 0 | 263.1 | ||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | $ (17.2) | (0.7) | 363.2 | |||||||||||
Net income from discontinued operations, net of tax | $ 0 | $ (6.4) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to White Mountains’s common shareholders | $ (141.2) | $ 627.2 | $ 401.8 |
Other comprehensive income, net of tax: | |||
Other comprehensive (loss) income, net of tax | (4.8) | 0.3 | (0.7) |
Comprehensive income from discontinued operations, net of tax | 0 | 3.2 | 146.3 |
Comprehensive income | (146) | 630.7 | 547.4 |
Comprehensive loss (income) attributable to non-controlling interests | 0.3 | (0.2) | (0.3) |
Comprehensive income attributable to White Mountains’s common shareholders | $ (145.7) | $ 630.5 | $ 547.1 |
Basic earnings per share | |||
Continuing operations | $ (36.67) | $ 11.56 | $ (24.26) |
Discontinued operations | (5.09) | 134.50 | 104.37 |
Total consolidated operations | (41.76) | 146.06 | 80.11 |
Diluted earnings per share | |||
Continuing operations | (36.67) | 11.56 | (24.26) |
Discontinued operations | (5.09) | 134.50 | 104.32 |
Total consolidated operations | (41.76) | 146.06 | 80.06 |
Dividends declared and paid per White Mountains’s common share | $ 1 | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common shares and paid-in surplus | Retained earnings | AOCL, after-tax | Parent | Non-controlling interests | Total equity | Sale of Sirius Group | Sale of Sirius GroupNon-controlling interests | Sale of Sirius GroupTotal equity | TranzactNon-controlling interests | TranzactTotal equity | OneBeaconNon-controlling interests | OneBeaconTotal equity | Star & Shield LLCNon-controlling interests | Star & Shield LLCTotal equity | BAMNon-controlling interests | BAMTotal equity | WOBICommon shares and paid-in surplus | WOBIParent | WOBITotal equity |
Beginning balance at Dec. 31, 2015 | $ 978.2 | $ 3,075 | $ (149.9) | $ 3,903.3 | $ 454.3 | $ 4,357.6 | |||||||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||||||||||
Net (loss) income | $ 409 | 401.8 | 401.8 | 7.2 | 409 | ||||||||||||||||
Net change in foreign currency translation and interest rate swap | 31.4 | 31.4 | 0.3 | 31.7 | |||||||||||||||||
Other comprehensive (loss) income, net of tax | (0.7) | 113.9 | 113.9 | 113.9 | |||||||||||||||||
Net change in pension liability and other accumulated comprehensive items | $ 113.3 | ||||||||||||||||||||
Comprehensive income (loss) | 547.4 | 401.8 | 145.3 | 547.1 | 7.5 | 554.6 | |||||||||||||||
Dividends declared on common shares | (5.4) | (5.4) | (5.4) | ||||||||||||||||||
Dividends to non-controlling interests | (22.7) | (22.7) | |||||||||||||||||||
Issuances of common shares | 9.1 | 9.1 | 9.1 | ||||||||||||||||||
Repurchases and retirements of common shares | (887.2) | (192.4) | (694.8) | (887.2) | (887.2) | ||||||||||||||||
Capital contributions from non-controlling interests | 27.3 | 27.3 | |||||||||||||||||||
Deconsolidation of non-controlling interests | $ (250) | $ (250) | $ (78.4) | $ (78.4) | |||||||||||||||||
Acquisition of noncontrolling interest | (2.7) | (2.7) | (8.8) | (11.5) | |||||||||||||||||
Acquisition of subsidiary | 3.3 | 3.3 | |||||||||||||||||||
Amortization of restricted share and option awards | 18.5 | 18.5 | 0.8 | 19.3 | |||||||||||||||||
Ending balance at Dec. 31, 2016 | 810.7 | 2,776.6 | (4.6) | 3,582.7 | 133.3 | 3,716 | |||||||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||||||||||
Net (loss) income | 593.1 | 627.2 | 627.2 | (34.1) | 593.1 | ||||||||||||||||
Net change in foreign currency translation and interest rate swap | 0.4 | 0.4 | 0.1 | 0.5 | |||||||||||||||||
Other comprehensive (loss) income, net of tax | 0.3 | 2.9 | 2.9 | 2.9 | |||||||||||||||||
Comprehensive income (loss) | 630.7 | 627.2 | 3.3 | 630.5 | (34) | 596.5 | |||||||||||||||
Dividends declared on common shares | (4.6) | (4.6) | (4.6) | ||||||||||||||||||
Dividends to non-controlling interests | (19.3) | (19.3) | |||||||||||||||||||
Issuances of common shares | 1.7 | 1.7 | 1.7 | ||||||||||||||||||
Repurchases and retirements of common shares | (723.9) | (147.9) | (576) | (723.9) | (5.2) | (729.1) | |||||||||||||||
Issuance of shares of non-controlling interests | (4.1) | (4.1) | 5.2 | 1.1 | |||||||||||||||||
Capital contributions from non-controlling interests | (4.6) | (4.6) | 3 | (1.6) | $ 27.2 | $ 27.2 | |||||||||||||||
Deconsolidation of non-controlling interests | $ (238.3) | $ (238.3) | $ (4.4) | $ (4.4) | |||||||||||||||||
Amortization of restricted share and option awards | 14.8 | 14.8 | 0.8 | 15.6 | |||||||||||||||||
Ending balance at Dec. 31, 2017 | 3,492.5 | 670.6 | 2,823.2 | (1.3) | 3,492.5 | (131.7) | 3,360.8 | ||||||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||||||||||
Net (loss) income | (191.4) | (141.2) | (141.2) | (50.2) | (191.4) | ||||||||||||||||
Net change in foreign currency translation and interest rate swap | (4.5) | (4.5) | (0.3) | (4.8) | |||||||||||||||||
Other comprehensive (loss) income, net of tax | (4.8) | ||||||||||||||||||||
Comprehensive income (loss) | (146) | (141.2) | (4.5) | (145.7) | (50.5) | (196.2) | |||||||||||||||
Dividends declared on common shares | (3.8) | (3.8) | (3.8) | ||||||||||||||||||
Dividends to non-controlling interests | (8) | (8) | |||||||||||||||||||
Issuances of common shares | 2 | 2 | 2 | ||||||||||||||||||
Repurchases and retirements of common shares | (519.4) | (105.8) | (413.3) | (519.1) | (519.1) | ||||||||||||||||
Capital contributions from non-controlling interests | $ 45 | $ 45 | |||||||||||||||||||
Noncontrolling Interest, Recognition of Equity-Based Shares | 7.4 | 0 | 0 | 7.4 | 4.3 | 11.7 | |||||||||||||||
Noncontrolling Interest, Dilution from Equity-based Shares | (1.5) | 0 | 0 | (1.5) | 1.5 | 0 | |||||||||||||||
Noncontrolling Interest, Decrease from Purchase of Interests | $ (1.7) | $ (1.7) | $ (1.7) | ||||||||||||||||||
Acquisition of subsidiary | 14.5 | 14.5 | |||||||||||||||||||
Amortization of restricted share and option awards | 13 | 13 | 13 | ||||||||||||||||||
Ending balance at Dec. 31, 2018 | $ 2,843.1 | $ 584 | $ 2,264.9 | $ (5.8) | $ 2,843.1 | $ (124.9) | $ 2,718.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operations: | |||
Net (loss) income | $ (191.4) | $ 593.1 | $ 409 |
Charges (credits) to reconcile net income to net cash provided from (used for) operations: | |||
Net realized and unrealized investment losses (gains) | 108.3 | (133.3) | 27.4 |
Amortization of restricted share and option awards | 13 | 14.8 | 18.5 |
Amortization and depreciation | 25.7 | 22.4 | 20.4 |
Deferred income tax benefit | (8.4) | (11.4) | (12.5) |
Net income from discontinued operations | 0 | (20.5) | (108.3) |
Net loss (gain) on sale of discontinued operations | 17.2 | (557) | (415.1) |
Other operating items: | |||
Net change in unearned insurance premiums | 39.2 | 54.5 | 31.7 |
Net change in deferred acquisition costs | (4.2) | (4.2) | (3.7) |
Net change in restricted cash | (3.4) | 0 | 0 |
Net change in other assets and liabilities, net | (27.1) | (20.8) | (146.1) |
Net cash used for continuing operations | (31.1) | (62.4) | (178.7) |
Net cash provided from discontinued operations (Note 19) | 0 | 157 | 23.6 |
Net cash (used for) provided from operations | (31.1) | 94.6 | (155.1) |
Cash flows from investing activities: | |||
Net change in short-term investments | (39) | (1.7) | (27.2) |
Sales of fixed maturity and convertible investments | 1,848.5 | 2,124.4 | 2,605.8 |
Maturities, calls and paydowns of fixed maturity and convertible investments | 141 | 213.4 | 253.4 |
Sales of common equity securities | 169.9 | 424.1 | 815.9 |
Distributions and redemptions of other long-term investments | 5 | 29.4 | 17.3 |
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold | 0 | 1,131 | 2,646.2 |
Proceeds paid to non-controlling common shareholders from the sale of consolidated subsidiaries | 0 | 0 | (141.6) |
Purchases of other long-term investments | (95.9) | (84.1) | (38.5) |
Net settlement of investment cash flows and contributions with discontinued operations | 0 | 167.7 | (402) |
Purchases of common equity securities | (328.3) | (881.2) | (278.3) |
Purchases of fixed maturity and convertible investments | (970.2) | (2,365.2) | (4,407) |
Purchases of consolidated subsidiaries, net of cash acquired of $90.9, including $53.4 of restricted cash | (295.2) | (27.6) | (13.4) |
Net change in unsettled investment purchases and sales | 27.6 | 0 | 0 |
Other investing activities, net | (4.2) | (14.7) | 4.8 |
Net cash provided from investing activities — continuing operations | 459.2 | 715.5 | 1,035.4 |
Net cash provided from investing activities — discontinued operations (Note 19) | 0 | 3 | 241.4 |
Net cash provided from investing activities | 459.2 | 718.5 | 1,276.8 |
Cash flows from financing activities: | |||
Draw down of debt and revolving line of credit | 84.1 | 376 | 352.5 |
Repayment of debt and revolving line of credit | (15.4) | (365) | (404.6) |
Cash dividends paid to the Company’s common shareholders | (3.8) | (4.6) | (5.4) |
Acquisitions of additional shares from non-controlling interest | (1.7) | (0.7) | 0 |
Distributions from discontinued operations | 0 | 45.2 | 57.2 |
Common shares repurchased | (511.9) | (714.6) | (881.3) |
Proceeds from issuances of common shares | 0 | 0 | 3.7 |
Capital contributions from non-controlling interest shareholders | 1.3 | 0.5 | 0 |
Distributions to non-controlling interest shareholders | (6) | (2) | (1.1) |
Payments to contingent considerations related to purchases of consolidated subsidiaries | (2.6) | 0 | (7.8) |
Capital contributions from BAM members | 53.8 | 37.4 | 38 |
Fidus Re premium payment | (3.7) | 0 | 0 |
Other financing activities, net | (8.4) | (9.3) | (5.8) |
Net cash used for financing activities — continuing operations | (414.3) | (637.1) | (854.6) |
Net cash used for financing activities — discontinued operations (Note 19) | 0 | (61.9) | (93.8) |
Net cash used for financing activities | (414.3) | (699) | (948.4) |
Net change in cash during the period - continuing operations | 13.2 | 16 | 2.1 |
Effect of exchange rate changes on cash | (0.6) | 0 | 0 |
Cash balance at beginning of year | 97.1 | 80.2 | 77.8 |
Add: cash held for sale at the beginning of period | 0 | 0.9 | 1.2 |
Less: cash held for sale at the end of period | 0 | 0 | 0.9 |
Cash balance at end of year | $ 110.3 | $ 97.1 | $ 80.2 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash acquired | $ 90.9 | |||
Restricted cash acquired | 53.4 | |||
Cash restricted | 50 | $ 0 | $ 0 | $ 5.8 |
Sirius Group | ||||
Held for sale and discontinued operations cash balance | $ 0 | $ 0 | $ 70.5 | $ 245.4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The Company is an exempted Bermuda limited liability company whose principal businesses are conducted through its insurance subsidiaries and other affiliates. The Company’s headquarters is located at 26 Reid Street, Hamilton, Bermuda HM 11, its principal executive office is located at 80 South Main Street, Hanover, New Hampshire 03755-2053 and its registered office is located at Clarendon House, 2 Church Street, Hamilton, Bermuda HM 11. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of White Mountains Insurance Group, Ltd. (the “Company” or the “Registrant”), its subsidiaries (collectively with the Company, “White Mountains”) and other entities required to be consolidated under GAAP. Under GAAP, the Company is required to consolidate any entity in which it holds a controlling financial interest. A controlling financial interest is usually in the form of an investment representing the majority of the subsidiary’s voting interests. However, a controlling financial interest may also arise from a financial interest in a variable interest entity (“VIE”) through arrangements that do not involve ownership of voting interests. The Company consolidates a VIE if it determines that it is the primary beneficiary. The primary beneficiary is defined as the entity who holds a variable interest that gives it both the power to direct the VIE’s activities that most significantly impact its economic performance and the obligation to absorb losses of, or the right to receive returns from, the VIE that could potentially be significant to the VIE. See Note 15 — “Variable Interest Entities” . Intercompany transactions have been eliminated in consolidation. Certain amounts in the prior period financial statements have been reclassified to conform to the current presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reportable Segments White Mountains has determined its reportable segments based on the nature of the underlying businesses, the manner in which the Company’s subsidiaries and affiliates are organized and managed and the organization of the financial information provided to the chief operating decision maker to assess performance and make decisions regarding allocation of resources. White Mountains’s reportable segments are HG Global/BAM, NSM, MediaAlpha and Other Operations. See Note 13 — “Segment Information” . The HG Global/BAM segment consists of HG Global Ltd. and its wholly-owned subsidiaries (“HG Global”) and the consolidated results of Build America Mutual Assurance Company (“BAM”) (collectively, “HG Global/BAM”). BAM is the first and only mutual municipal bond insurance company in the United States. By insuring the timely payment of principal and interest, BAM provides market access to, and lowers interest expense for, issuers of municipal bonds used to finance essential public purposes such as schools, utilities and transportation facilities. BAM is owned by and operated for the benefit of its members, the municipalities that purchase BAM’s insurance for their debt issuances. HG Global was established to fund the startup of BAM and, through its reinsurance subsidiary HG Re Ltd. (“HG Re”), to provide up to 15% -of-par, first loss reinsurance protection for policies underwritten by BAM. For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds. HG Global, together with its subsidiaries, funded the initial capitalization of BAM through the purchase of $503.0 million of surplus notes issued by BAM, consisting of $203.0 million of Series A Notes and $300.0 million of Series B Notes (the “BAM Surplus Notes”). As of December 31, 2018 and 2017 , White Mountains owned 96.9% of HG Global's preferred equity and 88.4% of its common equity. White Mountains does not have an ownership interest in BAM. However, White Mountains is required to consolidate BAM’s results in its financial statements because BAM is a VIE for which White Mountains is the primary beneficiary. BAM’s results are attributed to non-controlling interests. The NSM segment consists of NSM Insurance HoldCo, LLC and its wholly-owned subsidiaries (collectively, “NSM”). NSM is a full-service managing general underwriting agency (“MGU”) and program administrator for specialty property and casualty insurance. The company places insurance in niche sectors such as specialty transportation, social services and real estate. On behalf of its insurance carrier partners, NSM manages all aspects of the placement process, including product development, marketing, underwriting, policy issuance and claims. NSM earns commissions based on the volume and profitability of the insurance that it places. NSM does not take insurance risk. As of December 31, 2018, White Mountains owned 95.5% of NSM. The NSM segment also includes White Mountains Catskill Holdings, Inc., the immediate holding company of NSM. See Note 2 — “Significant Transactions ". The MediaAlpha segment consists of QL Holdings LLC and its wholly-owned subsidiary QuoteLab, LLC (collectively “MediaAlpha”). MediaAlpha is a leading marketing technology company that enables the programmatic buying and selling of vertical-specific, performance-based media between advertisers (buyers of advertising inventory) and publishers (sellers of advertising inventory) through cost-per-click, cost-per-call and cost-per-lead pricing models. MediaAlpha’s media buying platform enables advertisers to create and automate data-driven bidding strategies designed to improve the efficiency and enhance the overall performance of their marketing campaigns. MediaAlpha has developed distinctive platform solutions for a range of insurance verticals, including auto, motorcycle, home, renter, health and life, and non-insurance verticals, including travel, education and personal finance. White Mountains’s Other Operations segment consists of the Company and its wholly-owned subsidiary, White Mountains Capital, Inc. (“WM Capital”), its other intermediate holding companies, its wholly-owned investment management subsidiary, White Mountains Advisors LLC (“WM Advisors”), investment assets managed by WM Advisors, its interests in PassportCard Limited (“PassportCard”) and DavidShield Life Insurance Agency (2000) Ltd. (“DavidShield”) (collectively, “PassportCard/DavidShield”) and Kudu Investment Management, LLC (“Kudu”), certain other consolidated and unconsolidated entities (“Other Operating Businesses”) and certain other strategic investments (“Strategic Investments”). The consolidated entities include Wobi Insurance Agency Ltd. (“Wobi”) and Removal Stars Ltd. (“Buzz”). White Mountains’s Other Operations segment also included its variable annuity reinsurance business, White Mountains Life Reinsurance (Bermuda) Ltd. (“Life Re Bermuda”), which completed its runoff with all of its contracts fully matured on June 30, 2016 and was liquidated in the third quarter of 2017, and its U.S.-based service provider, White Mountains Financial Services LLC, which was liquidated in the second quarter of 2017 (collectively, “WM Life Re”). Discontinued Operations and Assets and Liabilities Held for Sale On September 28, 2017, Intact Financial Corporation completed its previously announced acquisition of OneBeacon Insurance Group, Ltd. (“OneBeacon”) in an all-cash transaction for $18.10 per share (the “OneBeacon Transaction”). On July 21, 2016, White Mountains completed its sale of Tranzact Holdings, LLC (“Tranzact”) to an affiliate of Clayton, Dubilier & Rice, LLC. On April 18, 2016, White Mountains completed its sale of Sirius International Insurance Group, Ltd. (“Sirius Group”) to CM International Pte. Ltd. and CM Bermuda Limited (collectively “CMI”), the Singapore-based investment arm of China Minsheng Investment Corp., Ltd. White Mountains has presented the results of OneBeacon, Tranzact and Sirius Group as discontinued operations in the statement of operations and comprehensive income and their assets and liabilities as held for sale in the balance sheet for all periods prior to the completion of each transaction. On March 7, 2017, White Mountains completed the sale of Star & Shield Services LLC, Star & Shield Risk Management LLC, and Star & Shield Claims Services LLC (collectively “Star & Shield”) and its investment in Star & Shield Insurance Exchange (“SSIE”) surplus notes to K2 Insurance Services, LLC. White Mountains was required to consolidate SSIE in its GAAP financial statements until White Mountains completed the sale. White Mountains has presented Star & Shield’s and SSIE’s assets and liabilities as held for sale as of December 31, 2016. See Note 19 — “Held for Sale and Discontinued Operations” . As of December 31, 2017, White Mountains has classified its Guilford, Connecticut property, which consists of an office building and adjacent land, as held for sale. The property has been measured at its estimated fair value, net of disposal costs of $3.3 million . The related write down of $3.7 million was recorded within other expenses during 2017. Significant Accounting Policies Cash Cash includes amounts on hand and demand deposits with banks and other financial institutions. Amounts presented in the statement of cash flows are shown net of balances acquired and sold in the purchase or sale of the Company’s consolidated subsidiaries and exclude changes in amounts of restricted cash. See Note 7 — “Derivatives” . Short-Term Investments Short-term investments consist of interest-bearing money market funds and other securities, which at the time of purchase, mature or become available for use within one year. Short-term investments are carried at amortized or accreted cost, which approximated fair value as of December 31, 2018 and 2017 . Investment Securities As of December 31, 2018 , White Mountains’s invested assets consisted of securities and other investments held for general investment purposes. White Mountains’s portfolio of fixed maturity investments, common equity securities and other long-term investments held for general investment purposes are classified as trading securities and are reported at fair value as of the balance sheet date. Changes in net unrealized investment gains (losses) are reported pre-tax in revenues. Realized investment gains (losses) are accounted for using the specific identification method and are reported pre-tax in revenues. Premiums and discounts on all fixed maturity investments are amortized and accreted to income over the anticipated life of the investment. White Mountains’s invested assets that are measured at fair value include fixed maturity investments, common equity securities and other long-term investments, including unconsolidated entities, private equity funds and hedge funds. In determining its estimates of fair value, White Mountains uses a variety of valuation approaches and inputs. Whenever possible, White Mountains estimates fair value using valuation methods that maximize the use of quoted prices and other observable inputs. Fair value measurements are categorized into a hierarchy that distinguishes between inputs based on market data from independent sources (“observable inputs”) and a reporting entity’s internal assumptions based upon the best information available when external market data is limited or unavailable (“unobservable inputs”). Quoted prices in active markets for identical assets have the highest priority (“Level 1”), followed by observable inputs other than quoted prices including prices for similar but not identical assets or liabilities (“Level 2”), and unobservable inputs, including the reporting entity’s estimates of the assumptions that market participants would use, having the lowest priority (“Level 3”). White Mountains uses brokers and outside pricing services to assist in determining fair values. The outside pricing services White Mountains uses have indicated that they will only provide prices where observable inputs are available. As of December 31, 2018, approximately 87% of the investment portfolio recorded at fair value as Level 1 or Level 2 measurements. Level 1 Measurements Investments valued using Level 1 inputs include fixed maturity investments, primarily investments in U.S. Treasuries and short-term investments, which include U.S. Treasury Bills and common equity securities. For investments in active markets, White Mountains uses the quoted market prices provided by outside pricing services to determine fair value. Level 2 Measurements Investments valued using Level 2 inputs include fixed maturity investments, which have been disaggregated into classes, including debt securities issued by corporations, mortgage and asset-backed securities, municipal obligations, and foreign government, agency and provincial obligations. Investments valued using Level 2 inputs also include certain passive exchange traded funds (“ETFs”) that track U.S. stock indices such as the S&P 500 but are traded on foreign exchanges, which management values using the fund manager’s published NAV to account for the difference in market close times. In circumstances where quoted market prices are unavailable or are not considered reasonable, White Mountains estimates the fair value using industry standard pricing methodologies and observable inputs such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, credit ratings, prepayment speeds, reference data including research publications and other relevant inputs. Given that many fixed maturity investments do not trade on a daily basis, the outside pricing services evaluate a wide range of fixed maturity investments by regularly drawing parallels from recent trades and quotes of comparable securities with similar features. The characteristics used to identify comparable fixed maturity investments vary by asset type and take into account market convention. White Mountains’s process to assess the reasonableness of the market prices obtained from the outside pricing sources covers substantially all of its fixed maturity investments and includes, but is not limited to, the evaluation of pricing methodologies and a review of the pricing services’ quality control procedures on at least an annual basis, a comparison of its invested asset prices obtained from alternate independent pricing vendors on at least a semi-annual basis, monthly analytical reviews of certain prices and a review of the underlying assumptions utilized by the pricing services for select measurements on an ad hoc basis throughout the year. White Mountains also performs back-testing of selected sales activity to determine whether there are any significant differences between the market price used to value the security prior to sale and the actual sale price on an ad-hoc basis throughout the year. Prices provided by the pricing services that vary by more than 5% and $0.5 million from the expected price based on these assessment procedures are considered outliers, as are prices that have not changed from period to period and prices that have trended unusually compared to market conditions. In circumstances where the results of White Mountains’s review process does not appear to support the market price provided by the pricing services, White Mountains challenges the vendor provided price. If White Mountains cannot gain satisfactory evidence to support the challenged price, White Mountains will rely upon its own pricing methodologies to estimate the fair value of the security in question. The valuation process described above is generally applicable to all of White Mountains’s fixed maturity investments. The techniques and inputs specific to asset classes within White Mountains’s fixed maturity investments for Level 2 securities that use observable inputs are as follows: Debt Securities Issued by Corporations The fair value of debt securities issued by corporations is determined from a pricing evaluation technique that uses information from market sources and integrates relative credit information, observed market movements, and sector news. Key inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including sector, coupon, credit quality ratings, duration, credit enhancements, early redemption features and market research publications. Mortgage and Asset-Backed Securities The fair value of mortgage and asset-backed securities is determined from a pricing evaluation technique that uses information from market sources and leveraging similar securities. Key inputs include benchmark yields, reported trades, underlying tranche cash flow data, collateral performance, plus new issue data, as well as broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including issuer, vintage, loan type, collateral attributes, prepayment speeds, default rates, recovery rates, cash flow stress testing, credit quality ratings and market research publications. Municipal Obligations The fair value of municipal obligations is determined from a pricing evaluation technique that uses information from market makers, brokers-dealers, buy-side firms, and analysts along with general market information. Key inputs include benchmark yields, reported trades, issuer financial statements, material event notices and new issue data, as well as broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including type, coupon, credit quality ratings, duration, credit enhancements, geographic location and market research publications. Foreign Government, Agency and Provincial Obligations The fair value of foreign government, agency and provincial obligations is determined from a pricing evaluation technique that uses feeds from data sources in each respective country, including active market makers and inter-dealer brokers. Key inputs include benchmark yields, reported trades, broker-dealer quotes, two-sided markets, benchmark securities, bids, offers, local exchange prices, foreign exchange rates and reference data including coupon, credit quality ratings, duration and market research publications. Level 3 Measurements Fair value estimates for investments that trade infrequently and have few or no observable market prices are classified as Level 3 measurements. Investments valued using Level 3 fair value estimates are based upon unobservable inputs and include investments in certain fixed maturity investments, equity securities and other long-term investments where quoted market prices are unavailable or are not considered reasonable. Level 3 valuations are generated from techniques that use assumptions not observable in the market. These unobservable assumptions reflect White Mountains’s assumptions that market participants would use in valuing the investment. Generally, certain securities may start out as Level 3 when they are originally issued but as observable inputs become available in the market, they may be reclassified to Level 2. Transfers between levels are based on investments held as of the beginning of the period. Other Long-Term Investments White Mountains maintains a portfolio of other long-term investments that primarily consists of unconsolidated entities, private equity funds and hedge funds. White Mountains’s portfolio of other long-term investments are generally valued at fair value, using level 3 measurements or net asset value “NAV” as a practical expedient. Investments for which fair value is measured at NAV using the practical expedient are not classified within the fair value hierarchy. Unconsolidated Entities White Mountains’s portfolio of other long-term investments includes certain unconsolidated entities, including non-controlling interests in certain private common equity securities, limited liability companies and convertible preferred securities. White Mountains portfolio of unconsolidated entities are generally valued using level 3 inputs. The determination of the fair value of unconsolidated entities may involve significant management judgment, the use of valuation models and assumptions that are inherently subjective. On an ongoing basis, White Mountains considers qualitative changes in facts and circumstances which may impact the valuation of unconsolidated entities, including economic changes of relevant industries and changes to the investee capital structure, business strategy and significant changes in key personnel. On an annual basis, or when facts and circumstances suggest a quantitative valuation analysis is necessary, White Mountains, with the assistance of a third-party valuation firm, completes a valuation analysis of significant unconsolidated entities. One of the following fair value approaches is applied: Income Approach: The income approach converts future amounts to a single current discounted amount, based on expected future cash flows that a company will generate, along with expected proceeds from disposition. The cash flows are discounted to their present value using a discount rate that incorporates the risk-free rate for the use of funds, the expected rate of inflation, and risks associated with the particular investment. Market Approach : The market approach uses prices and other relevant information generated by market transactions involving identical or comparable businesses, such as recent sales or offerings of comparable assets. Cost Approach: The cost approach reflects the amount that would be required currently to replace the service capacity of an asset, or the current replacement cost. When applied to the valuation of equity interests in businesses, value is based on the net aggregate fair market value of the entity’s underlying individual assets. Private Equity Funds and Hedge Funds White Mountains’s portfolio of other long-term investments includes investments in private equity funds and hedge funds. White Mountains employs a number of procedures to assess the reasonableness of the fair value measurements for its private equity funds and hedge funds, including obtaining and reviewing periodic and audited annual financial statements as well as discussing each fund’s pricing with the fund manager throughout the year. However, since the fund managers do not provide sufficient information to evaluate the pricing methods and inputs for each underlying investment, White Mountains considers the inputs to be unobservable. The fair value of White Mountains’s private equity fund and hedge fund investments has generally been determined using the fund manager’s NAV. In the event that White Mountains believes the fair value of a private equity fund or hedge fund differs from the NAV reported by the fund manager due to illiquidity or other factors, White Mountains will adjust the reported NAV to more appropriately represent the fair value of its investment in the private equity fund or hedge fund. As of December 31, 2018 and 2017, White Mountains did not adjust the reported NAV of its investments in private equity funds and hedge funds. Derivatives Financial Instruments White Mountains holds from time to time a variety of derivative financial instruments for risk management purposes. White Mountains recognizes all derivatives as either other assets or other liabilities, aside from the foreign currency forward contracts which are recognized within other long-term investments, measured at fair value, in the consolidated balance sheets. Changes in the fair value of derivative instruments are recognized in current period pre-tax income. From time to time, White Mountains holds warrants that it has received in the restructuring of certain of its common equity securities and fixed maturity investments. White Mountains accounts for its investments in warrants as derivatives. Variable Annuity Reinsurance In 2016, White Mountains completed the run-off of WM Life Re as all of its contracts matured as of June 30, 2016. WM Life Re entered into agreements to reinsure death and living benefit guarantees associated with certain variable annuities in Japan. The accounting for benefit guarantees differs depending on whether or not the guarantee is classified as a derivative or an insurance liability. The liability for guaranteed minimum death benefits was classified as a derivative and measured at fair value. The liability for guaranteed minimum accumulation benefits was classified as an insurance liability, and was measured using assumptions for interest rates, equity markets, foreign exchange rates and market volatilities at the valuation date, as well as annuitant-related actuarial assumptions, including surrender and mortality rates. WM Life Re entered into derivative contracts that were designed to economically hedge against changes in the fair value of living and death benefit liabilities associated with its variable annuity reinsurance arrangements. All WM Life Re’s derivative financial instruments were recorded as assets or liabilities at fair value on the balance sheet within other assets. These derivative financial instruments did not meet the criteria for hedge accounting treatment, and accordingly, changes in fair value were recognized in the appropriate period as gains or losses in the income statement within other revenues. Receivables BAM’s receivables consist primarily of premiums receivable from customers for municipal bond insurance policies. NSM’s receivables consist of insurance premiums receivable from customers and commissions receivable from insurance carriers, net of a provision for amounts estimated to be uncollectible. MediaAlpha receivables consist of advertising fee receivables from publishers and advertisers. Incentive Compensation White Mountains’s Long-Term Incentive Plan (the “WTM Incentive Plan”) provides for grants of various types of share-based and non-share-based incentive awards to key employees of White Mountains. Non-share based awards are recognized over the related service periods based on management’s best estimate of the amounts at which the awards are expected to be paid. Share-based compensation which is typically settled in cash, such as performance shares or performance units, is classified as a liability-type award. The compensation cost for liability-classified awards is measured initially at the grant date fair value and remeasured each reporting period until settlement. The compensation cost for equity-classified awards expected to be settled in shares, such as options and restricted shares, is measured at the original grant date fair value of the award. The compensation cost for all awards is recognized for the vested portion of the awards over the related service periods. See Note 10 — “Employee Share-Based Incentive Compensation Plans”. Goodwill and Other Intangible Assets Goodwill represents the excess of the amount paid to acquire subsidiaries over the fair value of identifiable net assets at the date of acquisition. Other intangible assets consist primarily of trademarks, URL and online names, customer relationships, information technology and insurance licenses. Goodwill is not amortized, but rather is evaluated for impairment on an annual basis, or whenever indications of potential impairment exist. In the absence of any indications of potential impairment, the evaluation of goodwill is performed during the fourth quarter of each year. White Mountains initially evaluates goodwill using a qualitative approach (step zero) to determine whether it is more likely than not that the fair value of goodwill is greater than its carrying value. If the results of the qualitative evaluation indicate that it is more likely than not that the carrying value of goodwill exceeds its fair value, White Mountains performs the two-step quantitative test for impairment. Other intangible assets with finite lives are measured at their acquisition date fair values, are amortized over their economic lives and presented net of accumulated amortization on the balance sheet. Other intangible assets with finite lives are evaluated for impairment at least annually and when events or changes in circumstances indicate that it is more likely than not that the asset is impaired. A significant portion of the goodwill and other identifiable intangible assets at December 31, 2018 arose from White Mountains’s acquisition of NSM in May 2018 and NSM’s subsequent acquisitions of Fresh Insurance and KBK. White Mountains believes that all of the goodwill and intangible assets recorded in respect of these acquisitions is fully recoverable. Because of the timing of these acquisitions, all of which are still within the one-year measurement period following the acquisition date, these amounts have not yet been subject to White Mountains’s annual review for potential impairment. White Mountains evaluated the recoverability of goodwill and other intangible assets other than the portion associated with the NSM acquisitions and did not recognize any impairment losses for any of the years ended December 31, 2018, 2017 and 2016. See Note 4 — “Goodwill and Other Intangible Assets” . Municipal Bond Guarantee Insurance All of the contracts issued by BAM are accounted for as insurance contracts under ASC 944-605, Financial Guarantee Insurance Contracts. Premiums are generally received upfront and an unearned premium revenue liability, equal to the amount of the premium received, is established at contract inception. Installment premiums are measured at the present value of contractual premiums, discounted at the risk free rate, which is set at the inception of the insurance contract. Premium revenues are recognized in revenue over the period of the contracts in proportion to the amount of insurance protection provided using a constant rate. The constant rate is calculated based on the relationship between the par outstanding in a given reporting period compared with the sum of each of the par amounts outstanding for all periods. Deferred acquisition costs represent commissions, premium taxes, excise taxes and other costs which are directly attributable to and vary with the production of business. These costs are deferred and amortized to the extent they relate to successful contract acquisitions over the applicable premium recognition period as acquisition expenses. Deferred acquisition costs are limited to the amount expected to be recovered from future earned premiums and anticipated investment income. BAM’s obligation for outstanding contracts consists of the unearned premium reserve and any loss reserves. Loss reserves are recorded only to the extent that the present value of the expected amount of any losses to be paid, net of any expected recoveries, exceeds the associated unearned premium reserve. As of December 31, 2018 and 2017, BAM did not have any loss or LAE reserves. Revenue Recognition MediaAlpha recognizes advertising and publishing fee revenues based on the contractual amount of the fees, adjusted for any amounts expected to be refunded or uncollectible, when it has satisfied its contractual performance obligations, which is generally at the time each transaction is executed. For transactions where MediaAlpha acts as the principal, such as the Open exchange, revenue amounts are reported gross. For transactions where MediaAlpha acts as an agent facilitating transactions between third parties, revenue amounts are reported at the net fee billed. Agent and commission revenues are measured based on the contractual rates with insurance carriers, net of any amounts expected to be uncollectible and any amounts associated with expected policy cancellations adjustments, and are recognized when contractual performance obligations have been fulfilled. Cost of Sales and Broker Commission Expense MediaAlpha’s cost of sales consists primarily of revenue sharing payments to publisher partners and traffic acquisition costs to top tier search engines. Cost of sales are measured based on contract terms and recognized when the related revenue transactions are executed. NSM’s broker commission expense consists of commissions paid to sub-agents |
Significant Transactions
Significant Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Significant Transactions [Abstract] | |
Significant Transactions | Significant Transactions Acquisitions NSM On May 11, 2018, White Mountains closed its acquisition of 95% of NSM’s equity for cash consideration of $274.2 million . During the third quarter of 2018, White Mountains recorded a purchase price adjustment of $2.1 million . White Mountains recognized total assets acquired related to NSM of $495.2 million , including $383.0 million of goodwill and other intangible assets, total liabilities assumed of $204.6 million , including contingent consideration earnout liabilities related to NSM’s previous acquisitions of its U.K.-based operations, of $10.2 million , and non-controlling interest of $14.4 million reflecting acquisition date fair values. In connection with the acquisition, White Mountains incurred transaction costs of $6.3 million , which were expensed in 2018. On May 18, 2018, NSM acquired 100% of Fresh Insurance Group Limited (“Fresh Insurance”) for upfront cash consideration of $49.6 million . During the third quarter of 2018, NSM recorded a purchase price adjustment of $0.7 million . The purchase price is subject to additional adjustments based upon growth in EBITDA during two earnout periods ending in February 2020 and February 2022. NSM recognized total assets acquired related to Fresh Insurance of $72.6 million , including $54.6 million of goodwill and other intangible assets, and total liabilities assumed of $22.3 million , reflecting acquisition date fair values. In connection with the acquisition, NSM recorded a contingent consideration earnout liability of $7.5 million . On December 3, 2018, NSM acquired all the net assets of KBK for upfront cash consideration of $60.0 million and recognized $59.4 million of goodwill and other intangible assets, reflecting acquisition date fair values. The relative fair values of goodwill and other intangible assets recognized in connection with the acquisitions of KBK had not yet been determined at December 31, 2018. The purchase price is subject to additional adjustments based upon growth in EBITDA during three earnout periods ending in December 2019, December 2020 and December 2021. In connection to the KBK acquisition, NSM expects to record a contingent consideration earnout liability in the first quarter of 2019. White Mountains acquired 16,694,869 additional newly-issued units of NSM for $29 million in connection with NSM’s acquisition of KBK. The contingent consideration earnout liabilities related to these acquisitions are subject to adjustment based upon EBITDA, EBITDA projections, and present value factors for acquired entities. For the period from May 11, 2018 through December 31, 2018 , NSM recognized pre-tax expense of $2.7 million for the change in the fair value of its contingent consideration earnout liabilities for Fresh Insurance and its other U.K.-based operations. Any future adjustments to contingent consideration earnout liabilities under the agreements will also be recognized through pre-tax income. As of December 31, 2018 , NSM recorded contingent consideration earnout liabilities of $20.2 million . DavidShield On January 24, 2018, White Mountains acquired 50% of DavidShield, its joint venture partner in PassportCard. DavidShield is a managing general agency that is the leading provider of expatriate medical insurance in Israel and uses the same card-based delivery system as PassportCard. As part of the transaction, White Mountains reorganized its equity stake in PassportCard so that White Mountains and its partner in DavidShield would each own 50% of both businesses. To facilitate the transaction, White Mountains provided financing to its partner in the form of a non-interest bearing loan that is secured by the partner’s equity in PassportCard and DavidShield. The gross purchase price for the 50% of DavidShield was $41.8 million , or $28.3 million net of the financing provided for the restructuring. Kudu On February 5, 2018, White Mountains entered into an agreement to fund up to $125.0 million in Kudu, a capital provider to asset management and wealth management firms. As of December 31, 2018, White Mountains owned 49.5% of Kudu. Kudu specializes in providing capital solutions to asset managers and registered investment advisers for purposes including generational ownership transfers, management buyouts, acquisition and growth finance and legacy partner liquidity. Kudu also provides strategic assistance to investees from time to time. Kudu’s capital solutions typically are structured as long-term or permanent revenue shares. Kudu closed its first three transactions in 2018 deploying $63.0 million of capital in total, of which $31.5 million was from White Mountains. White Mountains has determined that Kudu is a VIE, but that White Mountains is not the primary beneficiary. White Mountains has elected to take the fair value option for its investment in Kudu. As of December 31, 2018 , White Mountains had funded $31.5 million of its $125 million commitment, plus an additional $3.8 million for working capital. On February 14, 2019, White Mountains entered into a definitive agreement to buy all of the interests in Kudu held by certain funds managed by Oaktree Capital Management, L.P. (“Oaktree”). See Note 20 — “Subsequent Events” . Buzz On August 4, 2016, White Mountains acquired a 70.9% ownership share in Buzz for a purchase price of British Pound Sterling (“GBP”) 6.1 million (approximately $8.1 million based upon the foreign exchange spot rate at the date of acquisition). White Mountains recognized total assets acquired related to Buzz of $11.5 million , including $7.6 million of goodwill and $1.1 million of other intangible assets, and total liabilities assumed of $0.1 million , reflecting acquisition date fair values. On August 1, 2017, White Mountains acquired 37,409 newly-issued preferred shares of Buzz for GBP 4.0 million (approximately $5.0 million based upon the foreign exchange spot rate at the date of acquisition) and 5,808 common shares from the company founders for GBP 0.5 million (approximately $0.7 million based upon the spot rate at the date of acquisition). As of December 31, 2018 and 2017 , White Mountains’s ownership share in Buzz was 77.1% . MediaAlpha On January 15, 2016, MediaAlpha acquired certain assets from Oversee.net for an aggregate purchase price of $3.9 million . The majority of assets acquired, which are included in other intangible assets, consists of customer relationships, a customer contract, a non-compete agreement from the seller, domain names and technology. On October 5, 2017, MediaAlpha acquired certain assets associated with the Health, Life and Medicare insurance business of Healthplans.com for an aggregate purchase price of $28.0 million . The majority of assets acquired, which are included in other intangible assets, consists of customer relationships, a non-compete agreement from the seller and domain names. See Note 4 — “Goodwill and Other Intangibles Assets” . On October 5, 2017, White Mountains acquired 131,579 newly-issued Class A common units of MediaAlpha for $12.5 million . As of December 31, 2018 and 2017 , White Mountains’s ownership share in MediaAlpha was 61.0% and 64.4% . Dispositions OneBeacon On September 28, 2017, White Mountains received $1.3 billion in cash proceeds from the OneBeacon Transaction and recorded a net gain of $554.6 million , net of transaction costs, and other comprehensive income of $2.9 million . As a result of the OneBeacon Transaction, OneBeacon’s results have been reported as discontinued operations within White Mountains’s GAAP financial statements. See Note 19 — “Held for Sale and Discontinued Operations” . Tranzact On July 21, 2016, White Mountains completed the sale of Tranzact to an affiliate of Clayton, Dubilier & Rice, LLC and received net proceeds of $221.3 million . In connection with the sale of Tranzact, the purchaser directly repaid $56.3 million for the portion of Tranzact’s debt attributable to White Mountains’s common shareholders. On October 5, 2016, White Mountains received additional proceeds of $1.2 million following the release of the post-closing purchase price adjustment escrow. White Mountains recorded a $51.9 million gain from the sale of Tranzact in discontinued operations, which included a $30.2 million tax expense for the reversal of a tax valuation allowance that is offset by a tax benefit recorded in continuing operations. See Note 6 — “Income Taxes” . The increase to White Mountains’s book value from the sale of Tranzact was $82.1 million . The following table presents a reconciliation of the gain reported in discontinued operations to the impact to White Mountains’s book value: Millions Year ended December 31, 2016 Gain from sale of Tranzact reported in discontinued operations $ 51.9 Add back reclassification from continuing operations for the release of a tax valuation allowance 30.2 Increase to White Mountains’s book value from sale of Tranzact $ 82.1 Through July 21, 2016, Tranzact’s results of operations are reported as discontinued operations and assets and liabilities held for sale within White Mountains’s GAAP financial statements. See Note 19 — “Held for Sale and Discontinued Operations” . During 2017, White Mountains recorded a $3.2 million increase to the gain from sale of Tranzact in discontinued operations as a result of a change in state tax expense. Sirius Group On April 18, 2016, White Mountains completed the sale of Sirius Group to CMI for approximately $2.6 billion . Of this amount, $161.8 million was used to purchase certain assets retained by White Mountains out of Sirius Group, including shares of OneBeacon. The amount paid at closing was based on an estimate of Sirius Group’s closing date tangible common shareholder’s equity. During the third quarter of 2016, there was a final true-up to Sirius Group’s tangible common shareholder’s equity that resulted in a $4.0 million reduction to the gain. During 2016, White Mountains recorded $363.2 million of gain from sale of Sirius Group in discontinued operations and $113.3 million in other comprehensive income from discontinued operations from Sirius Group. During 2017, White Mountains recorded a $0.7 million reduction to the gain from sale of Sirius Group as a result of a change to the valuation of the accrued incentive compensation payable to Sirius Group employees. During 2018, White Mountains recorded a loss of $17.3 million within net (loss) gain on sale of discontinued operations for a contingency related to the sale of Sirius Group. See Note 18 — “Commitments and Contingencies” . Through April 18, 2016, Sirius Group’s results are reported as discontinued operations and assets and liabilities held for sale within White Mountains’s GAAP financial statements. See Note 19 — “Held for Sale and Discontinued Operations” . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investments Securities White Mountains’s portfolio of investment securities held for general investment purposes consists of fixed maturity investments, short-term investments, common equity securities and other long-term investments, which are all classified as trading securities. Trading securities are reported at fair value as of the balance sheet date. Net realized and unrealized investment gains (losses) on trading securities are reported in pre-tax revenues. White Mountains’s fixed maturity investments are generally valued using industry standard pricing methodologies. Key inputs include benchmark yields, benchmark securities, reported trades, issuer spreads, bids, offers, credit ratings and prepayment speeds. Income on mortgage and asset-backed securities is recognized using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the estimated economic life is recalculated and the remaining unamortized premium or discount is amortized prospectively over the remaining economic life. Realized investment gains (losses) resulting from sales of investment securities are accounted for using the specific identification method. Premiums and discounts on all fixed maturity investments are amortized or accreted to income over the anticipated life of the investment. Short-term investments consist of interest-bearing money market funds and other securities, which at the time of purchase, mature or become available for use within one year. Short-term investments are carried at amortized or accreted cost, which approximated fair value as of December 31, 2018 and 2017. Other long-term investments consist primarily of unconsolidated entities, private equity funds and hedge funds. Net Investment Income White Mountains’s net investment income is comprised primarily of interest income associated with White Mountains’s fixed maturity investments and short-term investments and dividend income from its common equity securities and other long-term investments. The following table presents pre-tax net investment income for 2018, 2017 and 2016 : Year Ended December 31, Millions 2018 2017 2016 Fixed maturity investments $ 35.1 $ 44.9 $ 28.5 Short-term investments 8.0 1.8 .9 Common equity securities 15.1 10.6 4.0 Other long-term investments 3.8 1.2 1.1 Total investment income 62.0 58.5 34.5 Third-party investment expenses (3.0 ) (2.5 ) (2.4 ) Net investment income, pre-tax $ 59.0 $ 56.0 $ 32.1 Net Realized and Unrealized Investment Gains (Losses) The following table presents net realized and unrealized investment gains (losses) for 2018, 2017 and 2016: Year Ended December 31, Millions 2018 2017 2016 Net realized investment (losses) gains, pre-tax $ (12.9 ) $ 24.1 $ 270.0 Net unrealized investment (losses) gains, pre-tax (95.4 ) 109.2 (297.4 ) Net realized and unrealized investment (losses) gains, pre-tax (108.3 ) 133.3 (27.4 ) Income tax benefit (expense) attributable to net realized and unrealized investment (losses) gains 18.2 (12.9 ) 2.7 Net realized and unrealized investment (losses) gains, after-tax $ (90.1 ) $ 120.4 $ (24.7 ) For the years ended December 31, 2018, 2017 and 2016, all of White Mountains’s net realized and unrealized investment gains (losses) were recorded in the statements of operations. There were no investments gains (losses) recorded in other comprehensive income. Net Realized Investment Gains (Losses) The following tables present net realized investment gains (losses) for 2018, 2017 and 2016 : Year Ended December 31, 2018 Millions Net Realized (Losses) Gains Net Foreign Total Net Realized (Losses) Gains Reflected in Earnings Fixed maturity investments $ (29.8 ) $ 18.2 $ (11.6 ) Short-term investments (.8 ) — (.8 ) Common equity securities 6.6 — 6.6 Other long-term investments .1 (7.2 ) (7.1 ) Net realized investment (losses) gains, pre-tax (23.9 ) 11.0 (12.9 ) Income tax benefit attributable to net realized investment (losses) gains 9.1 — 9.1 Net realized investment (losses) gains, after-tax $ (14.8 ) $ 11.0 $ (3.8 ) Year Ended December 31, 2017 Millions Net Realized (Losses) Gains Net Foreign Total Net Realized Gains (Losses) Reflected in Earnings Fixed maturity investments $ (1.6 ) $ 4.1 $ 2.5 Short-term investments (.3 ) — (.3 ) Common equity securities 18.1 6.0 24.1 Other long-term investments 19.1 (21.3 ) (2.2 ) Net realized investment gains (losses), pre-tax 35.3 (11.2 ) 24.1 Income tax expense attributable to net realized investment gains (losses) (8.9 ) — (8.9 ) Net realized investment gains (losses), after-tax $ 26.4 $ (11.2 ) $ 15.2 Year Ended December 31, 2016 Millions Net Realized (Losses) Gains Net Foreign Total Net Realized (Losses) Gains Reflected in Earnings Fixed maturity investments $ (1.9 ) $ .3 $ (1.6 ) Short-term investments .4 — .4 Common equity securities 268.5 — 268.5 Other long-term investments 2.7 — 2.7 Net realized investment gains, pre-tax 269.7 .3 270.0 Income tax expense attributable to net realized investment gains (45.6 ) — (45.6 ) Net realized investment gains, after-tax $ 224.1 $ .3 $ 224.4 Net Unrealized Investment Gains (Losses) The following tables present net unrealized investment gains (losses) and changes in the carrying value of investments measured at fair value for the years ended 2018, 2017 and 2016: Year Ended December 31, 2018 Millions Net Unrealized (Losses) Gains Net Foreign Exchange (Losses) Gains Total Net Unrealized (Losses) Gains Reflected in Earnings Fixed maturity investments $ (8.3 ) $ (14.8 ) $ (23.1 ) Common equity securities (105.5 ) — (105.5 ) Other long-term investments 30.2 3.0 33.2 Net unrealized investment losses, pre-tax (83.6 ) (11.8 ) (95.4 ) Income tax benefit attributable to net unrealized investment losses 9.1 — 9.1 Net unrealized investment losses, after-tax $ (74.5 ) $ (11.8 ) $ (86.3 ) Year Ended December 31, 2017 Millions Net Unrealized Gains (Losses) Net Foreign Total Net Unrealized Gains (Losses) Reflected in Earnings Fixed maturity investments $ 13.8 $ 12.7 $ 26.5 Common equity securities 99.3 — 99.3 Other long-term investments (15.6 ) (1.0 ) (16.6 ) Net unrealized investment gains, pre-tax 97.5 11.7 109.2 Income tax expense attributable to net unrealized investment gains (4.0 ) — (4.0 ) Net unrealized investment gains, after-tax $ 93.5 $ 11.7 $ 105.2 Year Ended December 31, 2016 Millions Net Unrealized Losses Net Foreign Exchange Gains (Losses) Total Net Unrealized Losses Reflected in Earnings Fixed maturity investments $ (14.6 ) $ 2.1 $ (12.5 ) Common equity securities (257.4 ) (3.3 ) (260.7 ) Other long-term investments (22.7 ) (1.5 ) (24.2 ) Net unrealized investment losses, pre-tax (294.7 ) (2.7 ) (297.4 ) Income tax benefit attributable to net unrealized investment losses 48.3 — 48.3 Net unrealized investment losses, after-tax $ (246.4 ) $ (2.7 ) $ (249.1 ) White Mountains recognized gross realized investment gains of $49.4 million , $61.5 million and $283.7 million and gross realized investment losses of $62.3 million , $37.4 million and $13.7 million on sales of investment securities during 2018, 2017 and 2016. The following table presents total gains (losses) included in earnings attributable to unrealized investment gains (losses) for Level 3 investments for the years ended December 31, 2018, 2017 and 2016 : Year Ended December 31, Millions 2018 2017 2016 Fixed maturity investments $ — $ — $ 0.1 Other long-term investments 22.6 (15.4 ) (14.3 ) Total net unrealized investment gains (losses), pre-tax - Level 3 investments $ 22.6 $ (15.4 ) $ (14.2 ) Investment Holdings The following tables present the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency gains, and carrying values of White Mountains’s fixed maturity investments as of December 31, 2018 and 2017 . December 31, 2018 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Gains Carrying U.S. Government and agency obligations $ 154.0 $ .1 $ (.9 ) $ — $ 153.2 Debt securities issued by corporations 519.0 1.0 (9.5 ) — 510.5 Municipal obligations 279.0 2.4 (1.1 ) — 280.3 Mortgage and asset-backed securities 136.1 .1 (2.7 ) — 133.5 Total fixed maturity investments $ 1,088.1 $ 3.6 $ (14.2 ) $ — $ 1,077.5 December 31, 2017 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Gains Carrying Value U.S. Government and agency obligations $ 297.8 $ — $ (1.3 ) $ — $ 296.5 Debt securities issued by corporations 867.6 2.9 (4.3 ) 14.7 880.9 Mortgage and asset-backed securities 697.2 1.6 (4.1 ) — 694.7 Municipal obligations 252.0 3.7 (.8 ) — 254.9 Foreign government, agency and provincial obligations 2.6 — — .1 2.7 Total fixed maturity investments $ 2,117.2 $ 8.2 $ (10.5 ) $ 14.8 $ 2,129.7 The weighted average duration of White Mountains’s fixed income portfolio was approximately 3.4 years when including short-term investments and approximately 4.0 years when excluding short-term investments as of December 31, 2018. The following table presents the cost or amortized cost and carrying value of White Mountains’s fixed maturity investments by contractual maturity as of December 31, 2018 . Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. December 31, 2018 Millions Cost or Amortized Cost Carrying Value Due in one year or less $ 84.8 $ 84.4 Due after one year through five years 500.8 496.2 Due after five years through ten years 222.4 218.0 Due after ten years 144.0 145.4 Mortgage and asset-backed securities 136.1 133.5 Total $ 1,088.1 $ 1,077.5 The following tables present the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency losses, and carrying values of White Mountains’s common equity securities and other long-term investments as of December 31, 2018 and 2017 : December 31, 2018 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Losses Carrying Value Common equity securities $ 904.7 $ 51.0 $ (30.1 ) $ — $ 925.6 Other long-term investments $ 330.3 $ 52.2 $ (54.9 ) $ (2.0 ) $ 325.6 December 31, 2017 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Losses Carrying Value Common equity securities $ 739.7 $ 129.4 $ (3.0 ) $ — $ 866.1 Other long-term investments $ 246.6 $ 6.8 $ (39.7 ) $ (4.9 ) $ 208.8 Proceeds from the sales and maturities of investments, excluding short-term investments, totaled $2.2 billion , $2.8 billion and $3.7 billion for the years ended December 31, 2018, 2017 and 2016 . Investments Held on Deposit or as Collateral As of December 31, 2018 and 2017 , investments of $254.3 million and $204.6 million , were held in trusts required to be maintained in relation to HG Global’s reinsurance agreements with BAM. White Mountains’s insurance subsidiaries are required to maintain deposits with certain insurance regulatory agencies in order to maintain their insurance licenses. The fair value of such deposits, which represent BAM’s state deposits and are included within the investment portfolio, totaled $6.1 million and $6.0 million as of December 31, 2018 and 2017. Fair Value Measurements as of December 31, 2018 Fair value measurements are categorized into a hierarchy that distinguishes between inputs based on market data from independent sources (“observable inputs”) and a reporting entity’s internal assumptions based upon the best information available when external market data is limited or unavailable (“unobservable inputs”). Quoted prices in active markets for identical assets or liabilities have the highest priority (“Level 1”), followed by observable inputs other than quoted prices, including prices for similar but not identical assets or liabilities (“Level 2”) and unobservable inputs, including the reporting entity’s estimates of the assumptions that market participants would use, having the lowest priority (“Level 3”). As of December 31, 2018 and 2017 , White Mountains used quoted market prices or other observable inputs to determine fair value for approximately 87% and 94% of the investment portfolio. See Note 1 — “Basis of Presentation and Significant Accounting Policies”. Fair Value Measurements by Level The following tables present White Mountains’s fair value measurements for investments as of December 31, 2018 and 2017 by level. The major security types were based on the legal form of the securities. White Mountains has disaggregated its fixed maturity investments based on the issuing entity type, which impacts credit quality, with debt securities issued by U.S. government entities carrying minimal credit risk, while the credit and other risks associated with other issuers, such as corporations, foreign governments, municipalities or entities issuing mortgage and asset-backed securities vary depending on the nature of the issuing entity type. White Mountains further disaggregates debt securities issued by corporations and common equity securities by industry sector because investors often reference commonly used benchmarks and their subsectors to monitor risk and performance. Accordingly, White Mountains has further disaggregated these asset classes into subclasses based on the similar sectors and industry classifications it uses to evaluate investment risk and performance against commonly used benchmarks, such as the Bloomberg Barclays U.S. Intermediate Aggregate and S&P 500 indices. December 31, 2018 Millions Fair Value Level 1 Level 2 Level 3 Fixed maturity investments: U.S. Government and agency obligations $ 153.2 $ 153.2 $ — $ — Debt securities issued by corporations: Financials 143.4 — 143.4 — Consumer 68.5 — 68.5 — Technology 60.5 — 60.5 — Energy 57.6 — 57.6 — Healthcare 55.0 — 55.0 — Industrial 47.6 — 47.6 — Communications 31.8 — 31.8 — Materials 26.3 — 26.3 — Utilities 19.8 — 19.8 — Total debt securities issued by corporations 510.5 — 510.5 — Mortgage and asset-backed securities 133.5 — 133.5 — Municipal obligations 280.3 — 280.3 — Total fixed maturity investments 1,077.5 153.2 924.3 — Short-term investments (1) 214.2 204.4 9.8 — Common equity securities: Exchange traded funds (2) 675.3 617.0 58.3 — Healthcare 14.0 14.0 — — Financials 13.5 13.5 — — Communications 12.7 12.7 — — Industrial 11.4 11.4 — — Technology 7.4 7.4 — — Consumer 6.2 6.2 — — Energy 4.1 4.1 — — Materials 3.1 3.1 — — Other (3) 177.9 — 177.9 — Total common equity securities 925.6 689.4 236.2 — Other long-term investments 138.7 — — 138.7 Other long-term investments — NAV (4) 186.9 — — — Total investments $ 2,542.9 $ 1,047.0 $ 1,170.3 $ 138.7 (1) Short-term investments are measured at amortized cost, which approximates fair value. (2) ETFs traded on foreign exchanges are priced using the fund's published NAV to account for the difference in market close times and are therefore designated a level 2 measurement. (3) Consists of two investments in unit trusts that primarily invest in international equities. (4) Consists of unconsolidated entities, private equity funds and one hedge fund for which fair value is measured at NAV using the practical expedient. Investments for which fair value is measured at NAV are not classified within the fair value hierarchy. December 31, 2017 Millions Fair Value Level 1 Level 2 Level 3 Fixed maturity investments: U.S. Government and agency obligations $ 296.5 $ 296.5 $ — $ — Debt securities issued by corporations: Consumer 185.1 — 185.1 — Communications 127.8 — 127.8 — Financials 114.8 — 114.8 — Utilities 108.9 — 108.9 — Materials 95.5 — 95.5 — Healthcare 94.3 — 94.3 — Technology 80.5 — 80.5 — Energy 48.1 — 48.1 — Industrial 25.9 — 25.9 — Total debt securities issued by corporations 880.9 — 880.9 — Mortgage and asset-backed securities 694.7 — 694.7 — Municipal obligations 254.9 — 254.9 — Foreign government, agency and provincial obligations 2.7 — 2.7 — Total fixed maturity investments 2,129.7 296.5 1,833.2 — Short-term investments (1) 176.1 151.0 25.1 — Common equity securities: Exchange traded funds (2) 569.7 508.1 61.6 — Healthcare 17.1 17.1 — — Financials 16.3 16.3 — — Technology 15.1 15.1 — — Industrial 11.9 11.9 — — Communications 10.9 10.9 — — Consumer 10.7 10.7 — — Energy 3.8 3.8 — — Other (3) 210.6 — 210.6 — Total common equity securities 866.1 593.9 272.2 — Other long-term investments (4) 77.2 — — 77.2 Other long-term investments — NAV (5) 135.3 — — — Total investments $ 3,384.4 $ 1,041.4 $ 2,130.5 $ 77.2 (1) Short-term investments are measured at amortized cost, which approximates fair value. (2) ETFs traded on foreign exchanges are priced using the fund’s published NAV to account for the difference in market close times and are therefore designated a level 2 measurement. (3) Consists of two investments in unit trusts that primarily invests in international equities. (4) Excludes carrying value of $(3.7) related to foreign currency forward contracts. (5) Consists of unconsolidated entities, private equity funds and one hedge funds for which fair value is measured at NAV using the practical expedient. Investments for which fair value is measured at NAV are not classified within the fair value hierarchy. Debt Securities Issued by Corporations The following table presents the ratings of debt securities issued by corporations held in White Mountains’s investment portfolio as of December 31, 2018 and 2017: Fair Value at December 31, Millions 2018 2017 AAA $ 8.9 $ 1.6 AA 88.7 42.6 A 270.5 192.5 BBB 142.4 465.2 BB — 161.7 B — 17.3 Debt securities issued by corporations (1) $ 510.5 $ 880.9 (1) Credit ratings are based upon issuer credit ratings provided by Standard & Poor’s Financial Services LLC (“Standard & Poor’s”), or if unrated by Standard & Poor’s, long term obligation ratings provided by Moody's Investor Service, Inc. Mortgage and Asset-backed Securities The following table presents the fair value of White Mountains’s mortgage and asset-backed securities as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Millions Fair Value Level 2 Level 3 Fair Value Level 2 Level 3 Mortgage-backed securities: Agency: FNMA $ 53.6 $ 53.6 $ — $ 84.5 $ 84.5 $ — FHLMC 38.1 38.1 — 62.0 62.0 — GNMA 23.7 23.7 — 46.3 46.3 — Total agency (1) 115.4 115.4 — 192.8 192.8 — Non-agency: Commercial — — — 70.5 70.5 — Total non-agency — — — 70.5 70.5 — Total mortgage-backed securities 115.4 115.4 — 263.3 263.3 — Other asset-backed securities: Vehicle receivables 9.2 9.2 — 142.4 142.4 — Credit card receivables 8.9 8.9 — 206.0 206.0 — Other — — — 83.0 83.0 — Total other asset-backed securities 18.1 18.1 — 431.4 431.4 — Total mortgage and asset-backed securities $ 133.5 $ 133.5 $ — $ 694.7 $ 694.7 $ — (1) Represents publicly traded mortgage-backed securities which carry the full faith and credit guaranty of the U.S. Government (i.e., GNMA) or are guaranteed by a government sponsored entity (i.e., FNMA, FHLMC). White Mountains considers sub-prime mortgage-backed securities as those that have underlying loan pools that exhibit weak credit characteristics, or those that are issued from dedicated sub-prime shelves or dedicated second-lien shelf registrations (i.e., White Mountains considers investments backed primarily by second-liens to be sub-prime risks regardless of credit scores or other metrics). As of December 31, 2018 , White Mountains did not hold any mortgage-backed securities categorized as sub-prime. White Mountains considers mortgage-backed securities as “non-prime” (also called “Alt A” or “A-”) if they are backed by collateral that has overall credit quality between prime and sub-prime based on White Mountains’s review of the characteristics of their underlying mortgage loan pools, such as credit scores and financial ratios. As of December 31, 2018 , White Mountains did not hold any mortgage-backed securities classified as non-prime. Other Long-Term Investments The following table presents the carrying values of White Mountains’s other long-term investments as of December 31, 2018 and 2017: Carrying Value at December 31, Millions 2018 2017 PassportCard/DavidShield (1) $ 75.0 $ 21.0 Kudu 30.7 — Other unconsolidated entities (1)(2) 60.0 62.2 Total unconsolidated entities (1)(2) 165.7 83.2 Private equity funds and hedge funds 146.1 125.3 Foreign currency forward contracts — (3.7 ) Other 13.8 4.0 Total other long-term investments $ 325.6 $ 208.8 (1) See Fair Value Measurements by Level table. (2) Includes White Mountains's non-controlling interests in certain private common equity securities, limited liability companies and convertible preferred securities. Private Equity Funds and Hedge Funds White Mountains invests in private equity funds and hedge funds, which are included in other long-term investments. The fair value of these investments is generally estimated using the NAV of the funds. As of December 31, 2018 , White Mountains held investments in 12 private equity funds and one hedge fund. The largest investment in a single fund was $54.3 million as of December 31, 2018 and $54.9 million as of December 31, 2017 . The following table presents investments in private equity funds and hedge funds by investment objective and sector as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Millions Fair Value Unfunded Fair Value Unfunded Private equity funds Manufacturing/Industrial $ 42.9 $ 10.5 $ 43.3 $ 10.4 Aerospace/Defense/Government 27.6 34.9 15.8 12.9 Direct lending 13.0 17.7 7.1 23.1 Financial services 8.3 13.6 4.2 11.7 Total private equity funds 91.8 76.7 70.4 58.1 Hedge funds Long/short banks and financial 54.3 — 54.9 — Total hedge funds 54.3 — 54.9 — Total private equity funds and hedge funds included in other long-term investments $ 146.1 $ 76.7 $ 125.3 $ 58.1 Investments in private equity funds are generally subject to a lock-up period during which investors may not request a redemption. Distributions prior to the expected termination date of the fund may be limited to dividends or proceeds arising from the liquidation of the fund’s underlying investments. In addition, certain private equity funds have the option to extend the lock-up period. The following table presents investments in private equity funds that were subject to lock-up periods as of December 31, 2018: Millions 1 – 3 years 3 – 5 years 5 – 10 years >10 years Total Private equity funds — expected lock-up period remaining $ 1.8 $ 5.5 $ 63.2 $ 21.3 $ 91.8 Investors in private equity funds are generally subject to indemnification obligations outside of the capital commitment period and prior to the winding up of the fund. As of December 31, 2018 and 2017, White Mountains is not aware of any indemnification claims relating to its investments in private equity funds. Redemption of investments in most hedge funds is subject to restrictions including lock-up periods where no redemptions or withdrawals are allowed, restrictions on redemption frequency and advance notice periods for redemptions. Amounts requested for redemptions remain subject to market fluctuations until the redemption effective date, which generally falls at the end of the defined redemption period. As of December 31, 2018, White Mountains held one active hedge fund with a fair value of $54.3 million . The hedge fund is subject to a semi-annual restriction on redemptions and an advance notice period requirement of 45 days. Rollforward of Fair Value Measurements by Level White Mountains uses quoted market prices where available as the inputs to estimate fair value for its investments in active markets. Such measurements are considered to be either Level 1 or Level 2 measurements, depending on whether the quoted market price inputs are for identical securities (Level 1) or similar securities (Level 2). Level 3 measurements for fixed maturity investments, common equity securities and other long-term investments as of December 31, 2018 and 2017 consist of securities for which the estimated fair value has not been determined based upon quoted market price inputs for identical or similar securities. The following tables present the changes in White Mountains’s fair value measurements by level for the years ended December 31, 2018 and 2017 : Level 3 Investments Unconsolidated Entities, Private Equity Funds and Hedge Funds Measured at NAV (3) Millions Level 1 Investments Level 2 Investments Other Long-term Investments Total Balance at December 31, 2017 $ 890.4 $ 2,105.4 $ 77.2 $ 135.3 $ 3,208.3 (1)(2) Net realized and unrealized (losses) gains (64.9 ) (64.4 ) 16.2 13.3 (99.8 ) (4) Amortization/accretion .2 (2.7 ) — — (2.5 ) Purchases 514.7 783.8 45.3 50.5 1,394.3 Sales (497.8 ) (1,661.6 ) — (12.2 ) (2,171.6 ) Transfers in — — — — — Transfers out — — — — — Balance at December 31, 2018 $ 842.6 $ 1,160.5 $ 138.7 $ 186.9 $ 2,328.7 (2) (1) Excludes carrying value of $(3.7) as of December 31, 2017 associated with foreign currency forward contracts. (2) Excludes carrying value of $214.2 and $176.1 as of December 31, 2018 and 2017 classified as short-term investments. (3) Investments for which fair value is measured at NAV using the practical expedient are no longer classified within the fair value hierarchy. See Note 1 — “Basis of Presentation and Significant Accounting Policies” . (4) Excludes realized and unrealized losses associated with foreign currency forward contracts, foreign currency on cash and open trades and short-term investments of $3.5 , $4.2 and $0.8 for the year ended December 31, 2018. Level 3 Investments Unconsolidated Entities, Private Equity Funds and Hedge Funds Measured at NAV (3) Millions Level 1 Investments Level 2 Investments Fixed Other Long- term Investments Total Balance at December 31, 2016 $ 279.5 $ 2,093.8 $ — $ 91.4 $ 82.6 $ 2,547.3 (1)(2)(5) Net realized and unrealized gains (losses) 82.7 69.6 — (15.3 ) 20.4 157.4 (4) Amortization/accretion — (9.1 ) — — — (9.1 ) Purchases 1,209.3 2,007.9 31.2 3.1 81.0 3,332.5 Sales (681.1 ) (2,070.3 ) (12.5 ) (2.0 ) (48.7 ) (2,814.6 ) Deconsolidation of SSIE — (5.2 ) — — — (5.2 ) Transfers in — 18.7 — — — 18.7 Transfers out — — (18.7 ) — — (18.7 ) Balance at December 31, 2017 $ 890.4 $ 2,105.4 $ — $ 77.2 $ 135.3 $ 3,208.3 (1)(2) (1) Excludes carrying value of $(3.7) and $(1.2) as of December 31, 2017 and 2016 associated with foreign currency forward contracts. (2) Excludes carrying value of $176.1 and $175.0 as of December 31, 2017 and 2016 classified as short-term investments, of which $0.1 is classified as held for sale at December 31, 2016. (3) Investments for which fair value is measured at NAV using the practical expedient are no longer classified within the fair value hierarchy. See Note 1 — “Basis of Presentation and Significant Accounting Policies” . (4) Excludes realized and unrealized losses associated with foreign currency forward contracts and short-term investments of $23.8 and $0.3 for the year ended December 31, 2017. (5) Includes carrying value of $6.6 of fixed maturity investments at December 31, 2016 that is classified as assets held for sale related to SSIE. Fair Value Measurements — Transfers Between Levels - For Years Ended December 31, 2018 and 2017 Transfers between levels are recorded using the fair value measurement as of the end of the quarterly period in which the event or change in circumstance giving rise to the transfer occurred. During 2018, there were no fixed maturity investments or other long-term investments classified as Level 3 measurements in the prior period that were transferred to Level 2 measurements. During 2017, three fixed maturity investments classified as a Level 3 measurement in the prior period were transferred to Level 2 measurement because quoted market prices for similar securities that were considered reliable and could be validated against an alternative source were available as of December 31, 2017. These measurements comprise “Transfers out” of Level 3 and “Transfers in” to Level 2 of $ 18.7 million for the period ended December 31, 2017 . Significant Unobservable Inputs The following tables present significant unobservable inputs used in estimating the fair value of other long-term investments, other than private equity funds and hedge funds, classified within Level 3 as of December 31, 2018 and 2017. The fair value of investments in certain unconsolidated entities, private equity funds and hedge funds are generally estimated using the NAV of the funds. $ in Millions, Except Share Price December 31, 2018 Description Valuation Technique(s) Fair Value (1) Unobservable Input PassportCard/DavidShield Discounted cash flow $75.0 Discount rate - 18.0% Exit multiple - 1.00 Compare.com Discounted cash flow $16.9 Discount rate - 22.0% Exit multiple - 2.75 YOUSURE Tarifvergleich GmbH (“durchblicker”) Discounted cash flow $15.5 Discount rate - 23.0% Exit multiple - 2.25 Captricity, Inc. Discounted cash flow $14.5 Discount rate - 23.0% Exit multiple - 3.75 Galvanic Applied Sciences Multiple of EBITDA $3.1 EBITDA multiple - 6.00 Private debt instrument Discounted cash flow $10.0 Discount rate - 9.62% (1) Includes the net unrealized investment gains (losses) associated with foreign currency; foreign currency effects based on observable inputs. $ in Millions, Except Share Price December 31, 2017 Description Valuation Technique(s) Fair Value (1) Unobservable Input PassportCard Discounted cash flow $21.0 Discount rate - 25.0% Exit multiple - 1.00 Compare.com Discounted cash flow $22.1 Discount rate - 35.0% Exit multiple - 1.75 durchblicker Discounted cash flow $11.3 Discount rate - 21.0% Exit multiple - 1.75 Captricity, Inc. Discounted cash flow $14.5 Discount rate - 30.0% Exit multiple - 3.50 Galvanic Applied Sciences Multiple of EBITDA $0.6 EBITDA multiple - 6.00 OneTitle Holdings LLC Share price of most recent transaction $3.6 Share price - $2.52 (1) Includes the net unrealized investment gains (losses) associated with foreign currency; foreign currency effects based on observable inputs. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets White Mountains has recognized goodwill and other intangible assets at the acquisition date fair values in connection with its purchases of subsidiaries. The following table presents the economic lives, acquisition date values, accumulated amortization and net carrying values for other intangible assets and goodwill, by company: $ in Millions Weighted Average Economic Life (in Years) December 31, 2018 December 31, 2017 Acquisition Date Fair Value Accumulated Amortization Net Carrying Value Acquisition Date Fair Value Accumulated Amortization Net Carrying Value Goodwill: NSM (1)(2) N/A $ 354.3 $ — $ 354.3 $ — $ — $ — MediaAlpha N/A 18.3 — 18.3 18.3 — 18.3 Buzz (3) N/A 7.3 — 7.3 7.6 — 7.6 Total goodwill 379.9 — 379.9 25.9 — 25.9 Other intangible assets: NSM (1) Customer relationships 9 85.3 6.0 79.3 — — — Trade names 20 51.2 1.8 49.4 — — — Information technology 5 3.7 .5 3.2 — — — Subtotal 140.2 8.3 131.9 — — — MediaAlpha Customer relationships 9 26.8 4.9 21.9 26.8 2.4 24.4 Information technology 5 33.3 30.9 2.4 33.3 24.3 9.0 Other 3 9.8 9.0 .8 9.8 7.8 2.0 Subtotal 69.9 44.8 25.1 69.9 34.5 35.4 Buzz Trademark 7 .6 .2 .4 .6 .1 .5 Information technology 5 .5 .3 .2 .5 .2 .3 Subtotal 1.1 .5 .6 1.1 .3 .8 Total other intangible assets 211.2 53.6 157.6 71.0 34.8 36.2 Total goodwill and other intangible assets $ 591.1 $ 53.6 $ 537.5 $ 96.9 $ 34.8 $ 62.1 Goodwill and other intangible assets (40.6 ) (21.1 ) Goodwill and other intangible assets $ 496.9 $ 41.0 (1) Includes the effect of foreign currency translation from the date of acquisition of $(2.2) for goodwill and $(0.7) for other intangible assets. (2) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisition of KBK had not yet been determined at December 31, 2018. See Note 2 — “Significant Transactions” . (3) Includes the effect of foreign currency translation from the date of acquisition of $(0.3) for goodwill. The goodwill recognized for the above acquisitions is attributed to expected future cash flows. The acquisition date fair values of other intangible assets with finite lives are estimated using income approach techniques, which use future expected cash flows to develop a discounted present value amount. The multi-period-excess-earnings method estimates fair value using the present value of the incremental after-tax cash flows attributable solely to the other intangible asset over its remaining life. This approach was used to estimate the fair value of other intangible assets associated with trademarks, brand names, customer relationships and contracts and information technology. The relief-from-royalty method was used to estimate fair value for other intangible assets that relate to rights that could be obtained via a license from a third-party owner. Under this method, the fair value is estimated using the present value of license fees avoided by owning rather than leasing the asset. This technique was used to estimate the fair value of domain names, certain trademarks and brand names. The with-or-without method estimates the fair value of another intangible asset that provides an incremental benefit. Under this method, the fair value of the other intangible asset is calculated by comparing the value of the entity with and without the other intangible asset. This approach was used to estimate the fair value of favorable lease terms. The following table presents the change in goodwill and other intangible assets: December 31, 2018 2017 Millions Goodwill Other Intangible Assets Goodwill Other Intangible Assets Beginning balance $ 25.9 $ 36.2 $ 25.9 $ 19.3 Acquisitions of businesses (1) 356.5 140.9 — — Acquisitions of asset groups (2) — — — 27.6 Foreign currency translation (2.5 ) (.7 ) — — Acquisitions of other intangible assets — — — — Amortization — (18.8 ) — (10.7 ) Ending balance $ 379.9 $ 157.6 $ 25.9 $ 36.2 (1) During 2018, amounts include acquisitions related to NSM, Fresh Insurance and KBK. See Note 2 — “Significant Transactions” . (2) During 2017, amounts include certain assets associated with the Health, Life and Medicare insurance business of Healthplans.com for an aggregate purchase price of $28.0 . See Note 2 — “Significant Transactions” . Amortization expense was $18.8 million , $10.7 million and $10.5 million for the years ended December 31, 2018, 2017 and 2016 . White Mountains expects to recognize amortization expense in each of the next five years as the following table presents: Millions Amortization Expense 2019 $ 18.1 2020 16.0 2021 16.0 2022 15.8 2023 and years after 89.5 Total $ 155.4 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table presents White Mountains’s debt outstanding as of December 31, 2018 and 2017 : December 31, Effective December 31, Effective Millions 2018 Rate (1) 2017 Rate (1) WTM Bank Facility $ — N/A $ — N/A NSM Bank Facility 180.4 7.4% — Unamortized issuance cost (3.8 ) — NSM Bank Facility, carrying value 176.6 — — MediaAlpha Bank Facility 14.3 7.1% 23.9 5.6% Unamortized issuance cost (.1 ) (.1 ) MediaAlpha Bank Facility, carrying value 14.2 23.8 Other NSM debt, carrying value 1.9 — Total debt $ 192.7 $ 23.8 (1) Effective rate considers the effect of the debt issuance costs. The following table presents a schedule of contractual repayments of White Mountains’s debt as of December 31, 2018 : Millions December 31, Due in one year or less $ 5.2 Due in two to three years 10.4 Due in four to five years 9.4 Due after five years 171.9 Total $ 196.9 WTM Bank Facility White Mountains had a revolving credit facility with a syndicate of lenders administered by Wells Fargo Bank, N.A., which had a total commitment of $425.0 million (the “WTM Bank Facility”). White Mountains terminated the WTM Bank Facility on May 8, 2018. White Mountains recorded $0.3 million , $0.6 million , and $1.2 million of interest expense on the WTM Bank Facility for the years ended December 31, 2018, 2017 and 2016 . NSM Bank Facility On May 11, 2018, NSM entered into a secured credit facility (the “NSM Bank Facility”) with Ares Capital Corporation in order to refinance NSM’s existing debt and to fund the acquisitions of subsidiaries. The NSM Bank Facility is comprised of a term loan of $100.0 million , two delayed-draw term loans of $51.0 million , to fund the Fresh Insurance acquisition, and $30.1 million , to fund the KBK acquisition, and a revolving credit loan commitment of $10.0 million , under which NSM initially borrowed $2.0 million . The term loans under the NSM Bank Facility mature on May 11, 2024, and the revolving loan under the NSM Bank Facility matures on May 11, 2023. During the period from May 11, 2018 through December 31, 2018 , NSM repaid $0.8 million on the term loans and $2.0 million on the revolving credit loan. As of December 31, 2018 , $180.4 million of the term loans were outstanding and the revolving credit loan was undrawn. Interest on the NSM Bank Facility accrues at a floating interest rate equal to the three month LIBOR or the Prime Rate, as published by the Wall Street Journal plus, in each case, an applicable margin. The margin over LIBOR may vary between 4.25% and 4.75% , and the margin over the Prime Rate may vary between 3.25% and 3.75% , in each case, depending on the consolidated total leverage ratio of the borrower. On June 15, 2018, NSM entered into an interest rate swap agreement to hedge its exposure to interest rate risk on $151.0 million of its variable rate term loans. Under the terms of the swap agreement, NSM pays a fixed rate of 2.97% and receives a variable rate, which is reset monthly, based on the then-current LIBOR. As of December 31, 2018, the variable rate received by NSM under the swap agreement was 2.52% . As of December 31, 2018 , the effective interest rate for the outstanding term loans of $150.2 million that are hedged by the swap was 7.47% . The effective interest on the outstanding term loans of $30.0 million that are unhedged was 6.85% . The effective interest rate on the total outstanding term loans under the NSM Bank Facility of $180.4 million was 7.42% . See Note 7 — “Derivatives — NSM Interest Rate Swap” . NSM recorded $8.0 million of interest expense on the NSM Bank Facility for the 2018 ownership period. The NSM Bank Facility is secured by all property of the loan parties and contains various affirmative, negative and financial covenants that White Mountains considers to be customary for such borrowings, including a maximum consolidated total leverage ratio covenant. MediaAlpha Bank Facility On May 12, 2017, MediaAlpha entered into a secured credit facility (the “MediaAlpha Bank Facility”) with Western Alliance Bank, which had a total commitment of $20.0 million and had a maturity date of May 12, 2020. On October 5, 2017, MediaAlpha refinanced the MediaAlpha Bank Facility in order to fund the acquisition of certain assets associated with the Health, Life and Medicare insurance business of Healthplans.com. The total commitment of the MediaAlpha Bank Facility was increased to $28.4 million and has a maturity date of October 6, 2020. The MediaAlpha Bank Facility consists of a $18.4 million term loan facility, which has an outstanding balance of $14.3 million as of December 31, 2018 , and a revolving loan facility for $10.0 million , which was undrawn as of December 31, 2018 . The MediaAlpha Bank Facility replaced MediaAlpha’s previous credit facility with Opus Bank, which had a total commitment of $20.0 million . The MediaAlpha Bank Facility carries a variable interest rate that is based on the Prime Rate, as published by the Wall Street Journal, plus a spread of 1.5% on the term loan facility and 0.25% on the revolving credit facility as of December 31, 2018 . During 2018, under the MediaAlpha Bank Facility, MediaAlpha repaid $3.6 million on the term loan and borrowed $3.0 million and repaid $9.0 million on the revolving loan. In 2017, under the MediaAlpha Bank Facility, MediaAlpha borrowed $20.0 million and repaid $2.1 million on the term loan and borrowed $6.0 million on the revolving loan. During 2017, under the previous MediaAlpha Bank Facility, MediaAlpha repaid $12.9 million . MediaAlpha recorded $1.2 million , $1.0 million , $0.9 million of interest expense on the MediaAlpha Bank Facility for the years ended December 31, 2018, 2017 and 2016 . The MediaAlpha Bank Facility is secured by intellectual property and the common stock of MediaAlpha’s subsidiaries, and contains various affirmative, negative and financial covenants that White Mountains considers to be customary for such borrowings, including a fixed charge coverage ratio and an asset coverage ratio. Other NSM Debt On December 12, 2016, in connection with the acquisition of a wholly-owned subsidiary, NSM assumed a secured term loan facility with Ageas Insurance Limited, which has a maturity date of May 11, 2024. As of December 31, 2018 , the secured term loan facility has an outstanding balance of $2.2 million . The carrying value of the debt includes a purchase accounting adjustment of $(0.3) million to reflect the debt at its acquisition date fair value. The $(0.3) million is being amortized over the remaining term of the loan. Debt Covenants As of December 31, 2018 , White Mountains was in compliance with all of the covenants under all of its debt facilities. Interest Total interest expense incurred by White Mountains for its indebtedness was $9.5 million , $2.3 million and $3.0 million for the periods ended December 31, 2018, 2017 and 2016 . Total interest paid by White Mountains for its indebtedness was $8.8 million , $1.4 million , and $2.1 million for the periods ended December 31, 2018, 2017 and 2016 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company and its Bermuda domiciled subsidiaries are not subject to Bermuda income tax under current Bermuda law. In the event there is a change in the current law such that taxes are imposed, the Company and its Bermuda domiciled subsidiaries would be exempt from such tax until March 31, 2035, pursuant to the Bermuda Exempted Undertakings Tax Protection Act of 1966. The Company has subsidiaries and branches that operate in various other jurisdictions around the world that are subject to tax in the jurisdictions in which they operate. The jurisdictions in which the Company’s subsidiaries and branches are subject to tax are Barbados, Ireland, Israel, Luxembourg, the United Kingdom and the United States. The following table presents the total income tax benefit for the years ended December 31, 2018, 2017 and 2016 : Year Ended December 31, Millions 2018 2017 2016 Current income tax (expense) benefit: U.S. federal $ (.1 ) $ (.3 ) $ 21.4 State (1.4 ) (1.3 ) (.7 ) Non-U.S. (2.9 ) (2.0 ) (.3 ) Total current income tax (expense) benefit (4.4 ) (3.6 ) 20.4 Deferred income tax benefit: U.S. federal 8.3 11.4 12.5 Non-U.S. .1 — — Total deferred income tax benefit 8.4 11.4 12.5 Total income tax benefit $ 4.0 $ 7.8 $ 32.9 Effective Rate Reconciliation The following table presents a reconciliation of taxes calculated for 2018 using the 21% U.S. federal statutory rate and for 2017 and 2016 using the 35% U.S. federal statutory rate (the tax rate at which the majority of White Mountains’s worldwide operations are taxed) to the income tax benefit (expense) on pre-tax (loss) income: Year Ended December 31, Millions 2018 2017 2016 Tax benefit (expense) at the U.S. statutory rate $ 37.4 $ (2.7 ) $ 51.6 Differences in taxes resulting from: Change in valuation allowance (31.0 ) 42.6 6.9 State taxes 4.0 .6 (1.2 ) Non-U.S. earnings, net of foreign taxes (2.9 ) 21.5 (19.2 ) Withholding tax (2.7 ) (2.0 ) (.2 ) Member’s surplus contributions (“MSC”) (2.6 ) (3.0 ) (2.3 ) Tax rate changes 1.7 (44.3 ) (3.9 ) Tax reserve adjustments (.8 ) (.3 ) — Tax exempt interest and dividends .6 .5 .1 Officer compensation — (4.1 ) — Other, net .3 (1.0 ) 1.1 Total income tax benefit on pre-tax (loss) income $ 4.0 $ 7.8 $ 32.9 The non-U.S. component of pre-tax (loss) income was $(30.1) million , $71.3 million and $(66.3) million for the years ended December 31, 2018, 2017 and 2016 . Tax Payments and Receipts Net income tax payments to national governments (primarily the United States) totaled $3.5 million , $2.0 million , and $0.3 million for the years ended December 31, 2018, 2017 and 2016 . Deferred Tax Assets and Liabilities Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for tax purposes. The following table presents an outline of the significant components of White Mountains’s U.S. federal, state and non-U.S. deferred tax assets and liabilities: December 31, Millions 2018 2017 Deferred tax assets related to: U.S. federal and state net operating and capital loss carryforwards $ 95.5 $ 73.0 Non-U.S. net operating loss carryforwards 36.6 33.9 Incentive compensation 14.1 20.4 Investment basis difference 11.1 4.9 Net unrealized investment losses 9.5 — Tax credit carryforwards 4.2 1.3 Deferred acquisition costs 3.5 2.0 Other items 5.8 1.6 Total gross deferred tax assets 180.3 137.1 Less: valuation allowances 139.9 109.6 Total net deferred tax assets 40.4 27.5 Deferred tax liabilities related to: MSC 32.8 24.1 Purchase accounting 4.2 .2 Net unrealized investment gains — 1.0 Other items 1.2 .9 Total deferred tax liabilities 38.2 26.2 Net deferred tax asset $ 2.2 $ 1.3 White Mountains’s deferred tax assets are net of U.S. federal, state and non-U.S. valuation allowances and, to the extent they relate to non-U.S. jurisdictions, they are shown at year-end exchange rates. Tax Cuts and Jobs Act of 2017 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) was enacted. Substantially all of the provisions of the TCJA are effective for taxable years beginning after December 31, 2017. The TCJA includes significant changes to the Internal Revenue Code of 1986 (the “Code”), including amendments which significantly change the taxation of individuals and business entities. The more significant changes in the TCJA that impact White Mountains are reductions in the corporate federal income tax rate from 35% to 21% and several technical provisions including, among others, limiting the utilization of net operating losses arising after December 31, 2017 to 80% of taxable income with an indefinite carryforward. The TCJA did not have a material impact on White Mountains’s financial statements in 2017 due to a full valuation allowance previously having been recorded against its U.S. deferred tax assets. Under U.S. GAAP, specifically ASC Topic 740, Income Taxes, the tax effects of changes in tax laws must be recognized in the period in which the law is enacted, or December 22, 2017 for the TCJA. ASC 740 also requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. Thus, at the date of enactment, White Mountains’s deferred taxes were re-measured based upon the new tax rate. For White Mountains, a change in deferred taxes was recorded as an adjustment to our deferred tax provision for $43.1 million of federal tax expense, which was offset by a change in the valuation allowance. The staff of the U.S. Securities and Exchange Commission has recognized the complexity of reflecting the impacts of the TCJA and on December 22, 2017 issued guidance in Staff Accounting Bulletin 118 (“SAB 118”) which clarifies accounting for income taxes under ASC 740 if information is not yet available or complete and provides for up to a one-year period in which to complete the required analyses and accounting (the measurement period). SAB 118 describes three scenarios associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply ASC 740, based on the provisions of the tax laws that were in effect immediately prior to the TCJA being enacted. White Mountains completed its accounting for the effects of the TCJA, which have been reflected in the December 31, 2017 financial statements. Valuation Allowance White Mountains records a valuation allowance against deferred tax assets if it becomes more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in income tax expense in the period of change. In determining whether or not a valuation allowance, or change therein, is warranted, White Mountains considers factors such as prior earnings history, expected future earnings, carryback and carryforward periods and strategies that if executed would result in the realization of a deferred tax asset. It is possible that certain planning strategies or projected earnings in certain subsidiaries may not be sufficient to utilize the entire deferred tax asset, which could result in material changes to White Mountains’s deferred tax assets and tax expense. Of the $139.9 million valuation allowance as of December 31, 2018 , $102.6 million related to deferred tax assets on net operating losses in U.S. subsidiaries and other federal and state deferred tax benefits, $21.1 million related to deferred tax assets on net operating losses and net investment unrealized gains and losses in Luxembourg subsidiaries, $14.5 million related to net operating losses and other deferred tax benefits in Israeli subsidiaries and $1.7 million related to net operating losses and other deferred tax benefits in U.K. subsidiaries. Of the $109.6 million valuation allowance as of December 31, 2017 , $74.8 million related to deferred tax assets on net operating losses in U.S. subsidiaries and other federal and state deferred tax benefits, $20.3 million related to deferred tax assets on net operating losses and net investment unrealized gains and losses in Luxembourg subsidiaries, $13.5 million related to net operating losses in Israeli subsidiaries and $1.0 million related to net operating losses in a U.K. subsidiary. United States During 2018 and 2017, White Mountains recorded income tax expense (benefit) of $22.7 million to establish and $(21.5) million to release a valuation allowance against deferred tax assets of Guilford Holdings, Inc. and subsidiaries (“Guilford”). Guilford consists of MediaAlpha, various service companies and certain investments and other assets that are included in the Other Operations segment. The TCJA reduced the U.S. federal income tax rate from 35% to 21% , which reduced the deferred tax assets of Guilford by $20.4 million . In 2017, White Mountains recorded a $20.4 million tax expense for the reduction, which was offset with a tax benefit due to the release in the valuation allowance against the deferred tax assets. During 2018 and 2017, Guilford continued to have a full valuation allowance recorded against its deferred tax assets as White Mountains management is unsure it will generate sufficient taxable income to utilize the deferred tax assets. During 2018 and 2017, White Mountains recorded income tax expense (benefit) of $1.5 million to establish and $(18.4) million to release a valuation allowance against deferred tax assets of BAM. The reduction in the U.S. federal income tax rate under the TCJA reduced the deferred tax assets of BAM by $22.7 million . In 2017, White Mountains recorded a $22.7 million income tax expense for the reduction, which was offset with an income tax benefit due to the release in the valuation allowance against the deferred tax assets. Also during 2018 and 2017, BAM had income in equity that was available to offset its loss from continuing operations. As a result, BAM recorded an income tax benefit of $8.7 million and $10.1 million , in continuing operations, with an offsetting tax expense in paid-in surplus. During 2018 and 2017, BAM continued to have a full valuation allowance recorded against its deferred tax assets as White Mountains management is unsure it will generate sufficient taxable income to utilize the deferred tax assets. During 2018, White Mountains recorded income tax expense of $2.8 million to establish a valuation allowance against a deferred tax asset related to foreign tax credits at White Mountains Catskill Holdings, Inc. as White Mountains management is unsure it will generate sufficient taxable income to utilize the deferred tax asset. Non-U.S. Jurisdictions During 2018, White Mountains recorded income tax expense of $1.2 million to establish a full valuation allowance against deferred tax assets which primarily related to unrealized losses on investments held in Luxembourg-domiciled subsidiaries. During 2017, White Mountains recorded an income tax benefit of $6.4 million in Luxembourg to reduce a full valuation allowance against deferred tax assets due to the recapture of previously deducted losses offset by a loss on the write down of Wobi. During 2018 and 2017, White Mountains recorded income tax expense of $2.1 million and $3.0 million to establish a full valuation allowance against deferred tax assets at certain Israel-domiciled subsidiaries, as White Mountains management does not currently anticipate sufficient taxable income to utilize the deferred tax assets. During 2018 and 2017, White Mountains recorded income tax expense of $0.7 million and $0.7 million to establish a full valuation allowance against deferred tax assets at certain U.K.-domiciled subsidiaries, as White Mountains management does not currently anticipate sufficient taxable income to utilize the deferred tax assets. Net Operating Loss and Capital Loss Carryforwards The following table presents net operating loss and capital loss carryforwards as of December 31, 2018 , the expiration dates and the deferred tax assets thereon: December 31, 2018 Millions United States Luxembourg United Kingdom Israel Total 2019-2023 $ .4 $ — $ — $ — $ .4 2024-2028 — — — — — 2029-2038 342.8 47.0 — — 389.8 No expiration date 81.5 29.8 14.9 61.1 187.3 Total $ 424.7 $ 76.8 $ 14.9 $ 61.1 $ 577.5 Gross deferred tax asset 89.7 20.0 2.6 14.0 126.3 Valuation allowance (87.3 ) (20.0 ) (1.8 ) (14.0 ) (123.1 ) Net deferred tax asset $ 2.4 $ — $ .8 $ — $ 3.2 Included in the U.S. net operating loss carryforwards are losses of $3.7 million subject to an annual limitation on utilization under Internal Revenue Code Section 382. These loss carryforwards will begin to expire in 2032. Also included in the U.S. net operating loss carryforwards are losses of $6.8 million due to additional deductions related to equity compensation. These loss carryforwards will begin to expire in 2032. As of December 31, 2018 , there are U.S. alternative minimum tax credit carryforwards of $0.7 million , which are refundable under provisions of the TCJA. Uncertain Tax Positions Recognition of the benefit of a given tax position is based upon whether a company determines that it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. In evaluating the more-likely-than-not recognition threshold, White Mountains must presume that the tax position will be subject to examination by a taxing authority with full knowledge of all relevant information. If the recognition threshold is met, then the tax position is measured at the largest amount of benefit that is more than 50% likely of being realized upon ultimate settlement. There were no uncertain tax positions for the year ended December 31, 2016. The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits for 2018 and 2017: Millions Permanent Differences (1) Temporary Differences (2) Interest and Penalties (3) Total Balance at January 1, 2017 $ — $ — $ — $ — Changes in prior year tax positions .1 — — .1 Tax positions taken during the current year .2 — — .2 Balance at December 31, 2017 .3 — — .3 Changes in prior year tax positions .8 — — .8 Balance at December 31, 2018 $ 1.1 $ — $ — $ 1.1 (1) Represents the amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate. (2) Represents the amount of unrecognized tax benefits that, if recognized, would create a temporary difference between the reported amount of an item in White Mountains’s Consolidated Balance Sheet and its tax basis. (3) Net of tax benefit. White Mountains classifies all interest and penalties on unrecognized tax benefits as part of income tax expense. During the years ended December 31, 2018, 2017 and 2016 , White Mountains did not recognize any net interest (income) expense. There was no accrued interest as of December 31, 2018 and December 31, 2017. Tax Examinations With few exceptions, White Mountains is no longer subject to U.S. federal, state, or non-U.S. income tax examinations by tax authorities for years before 2013. In the second quarter of 2016, White Mountains recorded an increase in deferred tax assets of $0.6 million and a corresponding increase in valuation allowance of $0.6 million related to the settlement of the IRS audit of Guilford for tax year 2012. In the first quarter of 2018, the Israeli Tax Authority commenced an examination of the 2013 to 2016 income tax returns for Wobi. White Mountains does not expect the resolution of this examination to result in a material change to its financial condition, results of operations and cash flows. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2018 | |
Derivative [Line Items] | |
Derivatives | Derivatives |
Forward Contracts | |
Derivative [Line Items] | |
Derivatives | Foreign Currency Forward Contracts White Mountains’s investment portfolio includes investments denominated in GBP, Euros, Japanese Yen and other foreign currencies. White Mountains previously entered into foreign currency forward contracts to manage its foreign currency exposure related to certain of these investments. The foreign currency forward contracts did not meet the criteria to be accounted for as a hedge. Mismatches between currency driven movements in foreign denominated investments and foreign currency forward contracts may result in net foreign currency positions being outside pre-defined ranges and/or may result in net foreign currency gains (losses). White Mountains’s foreign currency forward contracts were traded over-the-counter. The fair value of the foreign currency forward contracts were estimated using OTC quotes for similar instruments and accordingly, the measurements were classified as Level 2 measurements. During the fourth quarter of 2017, White Mountains closed the foreign currency forward contracts associated with certain non-U.S. common equity securities. In conjunction with the liquidation of the GBP investment grade corporate bond mandate in the first quarter of 2018, White Mountains closed the associated foreign currency forward contract. As of December 31, 2018, White Mountains no longer has any open foreign currency forward contracts. As of December 31, 2017, White Mountains held $206.3 million (GBP 152.0 million ) total gross notional value of a foreign currency forward contract. The derivative (losses) recognized in net realized and unrealized investment gains (losses) for the years ended December 31, 2018, 2017 and 2016 were $(3.5) million , $ (23.8) million and $ (1.2) million . White Mountains’s foreign currency forward contracts were subject to a master netting agreement. As of December 31, 2017 and 2016, the gross liability amount offset under the master netting agreement and the net amount recognized in other long-term investments was $(3.7) million and $ (1.2) million . White Mountains did not hold or provide any collateral under its foreign currency forward contract. The following table presents the gross notional amounts and carrying values associated with the foreign currency forward contracts as of December 31, 2017: December 31, 2017 Millions Notional Amount Carrying Value Standard & Poor ’ s Rating (1) Barclays Bank PLC $ 206.3 $ (3.7 ) A (1) “A” is the sixth highest of 23 credit ratings assigned by Standard & Poor’s. |
Variable Annuity Reinsurance | |
Derivative [Line Items] | |
Derivatives | Variable Annuity Reinsurance White Mountains entered into agreements to reinsure death and living benefit guarantees associated with certain variable annuities in Japan. During the third quarter of 2015, the variable annuity contracts reinsured by WM Life Re began to mature and were fully runoff by June 30, 2016. The reinsurance agreement was commuted in December 2016. WM Life Re was liquidated in the third quarter of 2017. The following table presents the pre-tax operating results of WM Life Re for the year ended December 31, 2016: Millions Year Ended Fees, included in other revenue $ 1.2 Change in fair value of variable annuity liability, included in other revenue (.3 ) Change in fair value of derivatives, included in other revenue (2.0 ) Foreign exchange, included in other revenue 1.3 Total revenues .2 Death benefit claims paid, included in general and administrative expenses (.3 ) General and administrative expenses (2.6 ) Pre-tax loss $ (2.7 ) The following table presents realized and unrealized derivative gains (losses) recognized in other revenue for the year ended December 31, 2016 by type of instrument: Millions Gains (Losses) Year Ended December 31, 2016 Fixed income/interest rate $ 1.8 Foreign exchange (4.8 ) Equity 1.0 Total $ (2.0 ) The following tables present the changes in White Mountains’s variable annuity reinsurance liabilities and derivative instruments for the year ended December 31, 2016: Variable Annuity Liabilities Derivative Instruments Millions Level 3 Level 3 (1) Level 2 (1)(2) Level 1 (3) Total Balance at January 1, 2016 $ .3 $ 2.7 $ 16.5 $ .9 $ 20.1 Purchases — — — — — Realized and unrealized (losses) gains (.3 ) 2.9 (.7 ) (4.2 ) (2.0 ) Transfers in — — — — — Sales/settlements — (5.6 ) (15.8 ) 3.3 (18.1 ) Balance at December 31, 2016 $ — $ — $ — $ — $ — (1) Consists of over-the-counter instruments. (2) Consists of interest rate swaps, total return swaps, foreign currency forward contracts, and bond forwards. Fair value measurement based upon bid/ask pricing quotes for similar instruments that are actively traded, where available. Swaps for which an active market does not exist have been priced using observable inputs including the swap curve and the underlying bond index. (3) Consists of exchange traded equity index, foreign currency and interest rate futures. Fair value measurements based upon quoted prices for identical instruments that are actively traded. All of White Mountains’s variable annuity reinsurance liabilities were classified as Level 3 measurements. The fair value of White Mountains’s variable annuity reinsurance liabilities were estimated using actuarial and capital market assumptions related to the projected discounted cash flows over the term of the reinsurance agreement. Actuarial assumptions regarding future policyholder behavior, including surrender and lapse rates, were generally unobservable inputs and significantly impacted the fair value estimates. White Mountains used derivative instruments to mitigate the risks associated with changes in the fair value of the reinsured variable annuity guarantees. The types of inputs used to estimate the fair value of these derivative instruments, with the exception of actuarial assumptions regarding policyholder behavior and risk margins, were generally the same as those used to estimate the fair value of variable annuity liabilities. |
Municipal Bond Guarantee Insura
Municipal Bond Guarantee Insurance | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Municipal Bond Guarantee Insurance | Municipal Bond Guarantee Insurance In 2012, HG Global was capitalized with $594.5 million from White Mountains and $14.5 million from non-controlling interests to fund the initial capitalization of BAM, a newly formed mutual municipal bond insurer. As of December 31, 2018 , White Mountains owned 96.9% of HG Global’s preferred equity and 88.4% of its common equity. HG Global, together with its subsidiaries, provided the initial capitalization of BAM through the purchase of $503.0 million of BAM Surplus Notes. At inception, BAM and HG Re also entered into a first loss reinsurance treaty (“FLRT”). HG Re provides first loss protection up to 15% -of-par outstanding on each municipal bond insured by BAM. For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds. In return, BAM cedes 60% of the risk premium charged for insuring the municipal bond, net of a ceding commission. During 2017, HG Global and BAM made certain changes to the ceding commission arrangements under the FLRT. These changes serve to accelerate growth in BAM’s statutory capital but do not impact the net risk premium ceded from BAM to HG Re. HG Re’s obligations under the FLRT are limited to the assets in two collateral trusts: a Regulation 114 Trust and a supplemental collateral trust (the “Supplemental Trust” and together with the Regulation 114 Trust, the “Collateral Trusts”). Losses required to be reimbursed under the FLRT are subject to an aggregate limit equal to the assets held in the Collateral Trusts at any point in time. Effective January 1, 2014, HG Global and BAM agreed to change the interest rate on the BAM Surplus Notes for the five years ending December 31, 2018 from a fixed rate of 8.0% to a variable rate equal to the one -year U.S. treasury rate plus 300 basis points, set annually, which was 3.78% , 4.60% and 5.70% for 2017, 2018 and 2019. In 2018, BAM exercised its option to extend the variable rate period for an additional three years. At the end of the variable rate period, the interest rate will be fixed at the higher of the then current variable rate or 8.0% . No payment of interest or principal on the BAM Surplus Notes may be made without the approval of the New York State Department of Financial Services (“NYDFS”). BAM has stated its intention to seek regulatory approval to pay interest and principal on its surplus notes to the extent that its remaining qualified statutory capital and other capital resources continue to support its outstanding obligations, its business plan and its “AA/stable” rating from Standard & Poor’s. BAM repaid $17.7 million of the BAM Surplus Notes and $5.3 million of accrued interest during the year ended December 31, 2018. BAM repaid $4.0 million of the BAM Surplus Notes and $1.0 million of accrued interest during the year ended December 31, 2017. At inception, the Supplemental Trust contained the original $300 million of Series B Notes and $100 million of cash and fixed income securities. During 2017, in order to further support BAM’s long-term capital position and business prospects, HG Global agreed to contribute the original $203.0 million of Series A Notes into the Supplemental Trust. At the same time HG Global and BAM also changed the payment terms of the Series B Notes, so that payments will reduce principal and accrued interest on a pro rata basis, consistent with the payment terms on the Series A Notes. The terms of the Series B Notes had previously stipulated that payments would first reduce interest owed, then reduce principal owed once all accrued interest had been paid. The NYDFS approved the change during 2017. In connection with the contribution and change in payment terms of the Series B Notes, the Series A Notes were merged into the Series B Notes to become the Series S-1 Surplus Notes. On December 3, 2018, the Series S-1 Surplus Notes were exchanged for Series S-2 Surplus Notes, which reflect all of the unpaid principal and accrued interest from the Series S-1 Surplus Notes. The Series S-2 Surplus Notes are held in an HG Re sponsored vehicle within the Supplemental Trust. The Regulation 114 Trust target balance is equal to gross ceded unearned premiums and unpaid ceded loss and LAE expenses, if any. The Supplemental Trust target balance is equal to $603.0 million . As the BAM Surplus Notes are repaid over time, the BAM Surplus Notes will be replaced in the Supplemental Trust by cash and fixed income securities. The Collateral Trust balances must be at target levels before excess funds can be distributed out of the Supplemental Trust. Under GAAP, if the terms of a debt instrument are amended, unless there is a greater than 10% change in the expected discounted future cash flows of such instrument, a change in the instrument’s carrying value is not permitted. White Mountains has determined that the impact of the changes made during 2017 to the terms of the BAM Surplus Notes on the expected discounted future cash flows was not greater than 10% . As of December 31, 2018 and 2017, the Collateral Trusts held assets of $757.4 million and $715.1 million , which included $481.3 million and $499.0 million of BAM Surplus Notes. As of December 31, 2018 and 2017, HG Global has accrued $ 143.7 million and $126.0 million of interest receivable on the BAM Surplus Notes. The following table presents a schedule of BAM’s insured obligations as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Contracts outstanding 7,525 6,371 Remaining weighted average contract period (in years) 10.7 10.9 Contractual debt service outstanding (in millions): Principal $ 52,201.6 $ 42,090.6 Interest and capital appreciation 26,560.3 21,057.1 Total debt service outstanding $ 78,761.9 $ 63,147.7 Gross unearned insurance premiums $ 176.0 $ 136.8 The following table presents a schedule of BAM’s future premium revenues as of December 31, 2018 : Millions December 31, 2018 January 1, 2019 - March 31, 2019 $ 4.1 April 1, 2019 - June 30, 2019 4.0 July 1, 2019 - September 30, 2019 4.0 October 1, 2019 - December 31, 2019 3.8 15.9 2020 15.0 2021 14.0 2022 13.2 2023 12.3 2024 and thereafter 105.6 Total gross unearned insurance premiums $ 176.0 The following table presents a schedule of net written premiums and net earned premiums included in White Mountains’s HG Global/BAM segment for the years ended December 31, 2018, 2017 and 2016 : Millions December 31, 2018 December 31, 2017 December 31, 2016 Written premiums: Direct $ 44.8 $ 63.2 $ 38.6 Assumed 8.1 — — Net written premiums $ 52.9 $ 63.2 $ 38.6 Earned premiums: Direct $ 13.6 $ 9.4 $ 5.9 Assumed .3 — — Net earned premiums $ 13.9 $ 9.4 $ 5.9 In April 2018, BAM entered into a collateralized financial guarantee excess of loss reinsurance agreement with Fidus Re, Ltd. (“Fidus Re”), a Bermuda based special purpose insurer created solely to provide reinsurance protection to BAM. Fidus Re was capitalized by the issuance of $100.0 million of insurance linked securities. The proceeds from issuance were placed in a collateral trust supporting Fidus Re’s obligations to BAM. The insurance linked securities were issued by Fidus Re with an initial term of twelve years and are callable five years after the date of issuance. Under the agreement, BAM retains the first $165.0 million of aggregate losses, before giving effect to HG’s reinsurance coverage, on the ceded business. Fidus Re reinsures 90% of aggregate losses exceeding $165.0 million on a portion of BAM’s financial guarantee portfolio up to a total reimbursement of $100 million . The aggregate loss limit under the agreement is $276.1 million . The agreement is accounted for using deposit accounting and any related financing expenses are recorded in general and administrative expenses as the agreement does not meet the risk transfer requirements necessary to be accounted for as reinsurance. In November 2018, BAM entered into a 100% quota share facultative reinsurance agreement under which it assumed a portfolio of municipal bond guarantee contracts with a par value of $2.2 billion . None of the contracts assumed were non-performing and no loss reserves have been established for any of the contracts, either at the transaction date or subsequent thereto. The agreement, which covers future claims exposure only, meets the risk transfer criteria under ASC 944-20, Insurance Activities and accordingly has been accounted for as reinsurance. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share White Mountains calculates earnings per share using the two-class method, which allocates earnings between common shares and unvested restricted common shares. Both classes of shares participate equally in dividends and earnings on a per share basis. Basic earnings per share amounts are based on the weighted average number of common shares outstanding adjusted for unvested restricted common shares. The following table presents the Company’s computation of earnings per share from continuing operations for the years ended December 31, 2018, 2017 and 2016 . See Note 19 — “Held for Sale and Discontinued Operations” . Year Ended December 31, 2018 2017 2016 Basic and diluted earnings per share numerators (in millions): Net (loss) income attributable to White Mountains’s common shareholders $ (141.2 ) $ 627.2 $ 401.8 Less: total (loss) income from discontinued operations, net of tax (17.2 ) 577.5 523.4 Net (loss) income from continuing operations attributable to White Mountains’s common shareholders (124.0 ) 49.7 (121.6 ) Allocation of earnings (losses) to participating restricted common shares (1) 1.4 (.7 ) 1.5 Basic and diluted (losses) earnings per share numerators $ (122.6 ) $ 49.0 $ (120.1 ) Basic earnings per share denominators (in thousands): Total average common shares outstanding during the period $ 3,382.5 $ 4,293.8 $ 5,014.9 Average unvested restricted common shares (2) (40.1 ) (54.3 ) (64.8 ) Basic (losses) earnings per share denominator $ 3,342.4 $ 4,239.5 $ 4,950.1 Diluted earnings per share denominator (in thousands): Total average common shares outstanding during the period $ 3,382.5 $ 4,293.8 $ 5,018.1 Average unvested restricted common shares (2) (40.1 ) (54.3 ) (64.8 ) Diluted (losses) earnings per share denominator (3) $ 3,342.4 $ 4,239.5 $ 4,953.3 Basic and diluted earnings per share (in dollars) - continuing operations: Distributed earnings - dividends declared and paid $ 1.00 $ 1.00 $ 1.00 Undistributed (losses) earnings $ (37.67 ) $ 10.56 $ (25.26 ) Basic and diluted (losses) earnings per share $ (36.67 ) $ 11.56 $ (24.26 ) (1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities. (2) Restricted shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans” . (3) The diluted earnings (loss) per share denominator for the year ended December 31, 2016, includes the impact of 40,000 common shares issuable upon exercise of the non-qualified options outstanding, which resulted in 3,217 incremental shares outstanding over the period. The following table presents the undistributed net earnings (losses) from continuing operations for the years ended December 31, 2018, 2017 and 2016 . See Note 19 — “Held for Sale and Discontinued Operations” . Year Ended December 31, Millions 2018 2017 2016 Undistributed net earnings - continuing operations: Net (loss) income attributable to White Mountains’s common shareholders, net of restricted common share amounts $ (122.6 ) $ 49.0 $ (120.1 ) Dividends declared, net of restricted common share amounts (1) (3.7 ) (4.5 ) (5.4 ) Total undistributed net (losses) earnings, net of restricted common share amounts $ (126.3 ) $ 44.5 $ (125.5 ) (1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities. |
Employee Share-Based Incentive
Employee Share-Based Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Share-Based Incentive Compensation Plans | Employee Share-Based Incentive Compensation Plans White Mountains’s share-based incentive compensation plans are designed to incentivize key employees to maximize shareholder value over long periods of time. White Mountains believes that this is best pursued by utilizing a pay-for-performance program that closely aligns the financial interests of management with those of its shareholders. White Mountains accomplishes this by emphasizing highly variable long-term compensation that is contingent on performance over a number of years rather than entitlements. White Mountains expenses all its share-based compensation. As a result, White Mountains’s calculation of its owners’ returns includes the expense of all outstanding share-based compensation awards. Incentive Compensation Plans White Mountains’s Long-Term Incentive Plan (the “WTM Incentive Plan”) provides for grants of various types of share-based and non-share-based incentive awards to key employees and directors of White Mountains. The WTM Incentive Plan was adopted by the Board, was approved by the Company’s sole shareholder in 1985 and was subsequently amended by its shareholders in 1995, 2001, 2003, 2005, 2010 and 2013. Share-based incentive awards that may be granted under the plan include performance shares, restricted shares, incentive stock options and non-qualified stock options (“Non-Qualified Options”). Performance Shares Performance shares are designed to reward employees for meeting company-wide performance targets. Performance shares are conditional grants of a specified maximum number of common shares or an equivalent amount of cash. Awards generally vest at the end of a three-year service period, are subject to the attainment of pre-specified performance goals, and are valued based on the market value of common shares at the time awards are paid. Performance shares earned under the WTM Incentive Plan are typically paid in cash but may be paid in common shares. Compensation expense is recognized for the vested portion of the awards over the related service periods. The level of payout ranges from zero to two times the number of shares initially granted, depending on White Mountains’s financial performance. Performance shares become payable at the conclusion of a performance cycle (typically three years) if pre-defined financial targets are met. The performance measures used for determining performance share payouts are growth in White Mountains’s adjusted book value per share and intrinsic value per share. Intrinsic value per share is generally calculated by adjusting adjusted book value per share for differences between the adjusted book value of certain assets and liabilities and White Mountains’s estimate of their underlying intrinsic values. The following table presents performance share activity for the years ended December 31, 2018, 2017 and 2016 for performance shares granted under the WTM Incentive Plan: Year Ended December 31, 2018 2017 2016 $ in Millions Target Performance Shares Outstanding Accrued Expense Target Performance Shares Outstanding Accrued Expense Target Performance Shares Outstanding Accrued Expense Beginning of period 50,515 $ 45.8 80,353 $ 42.4 93,654 $ 57.7 Shares paid or expired (1) (23,186 ) (28.4 ) (30,838 ) (21.9 ) (36,294 ) (41.0 ) New grants 14,105 — 17,710 — 22,615 — Forfeitures (2) (818 ) .1 (16,710 ) (9.3 ) 378 .5 Expense recognized — 14.2 — 34.6 — 25.2 End of period (3) 40,616 $ 31.7 50,515 $ 45.8 80,353 $ 42.4 (1) WTM performance share payments in 2018 for the 2015-2017 performance cycle, which were paid in March 2018 ranged from 145% to 147% of target. WTM performance share payments in 2017 for the 2014-2016 performance cycle, which were paid in March 2017 ranged from 34% to 76% of target. WTM performance shares payments in 2016 for the 2013-2015 performance cycle ranged from 140% to 142% of target. (2) Amounts include changes in assumed forfeitures, as required under GAAP. (3) Outstanding performance share awards as of December 31, 2018, 2017 and 2016 exclude 0 , 2,195 and 7,315 unvested performance shares awards for employees of discontinued operations. For the 2015-2017 and 2014-2016 performance cycle, all performance shares earned were settled in cash. For the performance shares earned in the 2013-2015 performance cycle, the Company issued 5,000 common shares and settled the remainder in cash. If the outstanding performance shares had vested on December 31, 2018 , the total additional compensation cost to be recognized would have been $13.8 million , based on accrual factors as of December 31, 2018 (common share price and payout assumptions). The following table presents performance shares outstanding and accrued expense for performance shares awarded under the WTM Incentive Plan as of December 31, 2018 for each performance cycle: $ in Millions Target Performance Shares Outstanding Accrued Expense Performance cycle: 2018 – 2020 13,450 $ 3.8 2017 – 2019 14,070 11.9 2016 – 2018 13,715 16.5 Sub-total 41,235 32.2 Assumed forfeitures (619 ) (.5 ) Total 40,616 $ 31.7 For the 2018-2020 performance cycle, the targeted performance goal for full payment of outstanding performance shares granted under the WTM Incentive Plan is 6% average growth in adjusted book value per share and intrinsic value per share. Average growth of 2% or less would result in no payout and average growth of 10% or more would result in a payout of 200% . For the 2017-2019 performance cycle, the targeted performance goal for full payment of outstanding performance shares granted under the WTM Incentive Plan to non-investment personnel is 5% average growth in adjusted book value per share and intrinsic value per share. Average growth of 1% or less would result in no payout and average growth of 9% or more would result in a payout of 200% . For the 2016-2018 performance cycle, the targeted performance goal for full payment of outstanding performance shares granted under the WTM Incentive Plan to non-investment personnel is 4% average growth in adjusted book value per share and intrinsic value per share. Average growth of 0% or less would result in no payout and average growth of 8% or more would result in a payout of 200% . For investment personnel, for the periods ended December 31, 2016 and 2017, the targeted performance goals for full payment of outstanding performance shares granted under the WTM Incentive Plan are based one-third on average growth in adjusted book value per share and intrinsic value per share (as described above) and two-thirds on achieving a total return on invested assets as measured against metrics based on the 10-year U.S. Treasury Note. For periods after December 31, 2017, the targeted performance goals for full payment of outstanding performance shares granted under the WTM Incentive Plan are based on the same performance goals described above for non-investment personnel. Restricted Shares Restricted shares are grants of a specified number of common shares that generally vest at the end of a three-year service period. The following table presents the unrecognized compensation cost associated with the outstanding restricted share awards under the WTM Incentive Plan for the years ended December 31, 2018, 2017 and 2016 : Year Ended December 31, 2018 2017 2016 $ in Millions Restricted Shares Unamortized Issue Date Fair Value Restricted Shares Unamortized Issue Date Fair Value Restricted Shares Unamortized Issue Date Fair Value Non-vested, Beginning of period 53,755 $ 14.3 70,620 $ 19.7 70,675 $ 15.7 Issued 14,105 11.4 17,985 16.3 25,365 20.2 Vested (25,381 ) — (28,846 ) — (24,620 ) — Forfeited (969 ) (.2 ) (6,004 ) (3.5 ) (800 ) (.3 ) Expense recognized — (13.0 ) — (18.2 ) — (15.9 ) End of period (1) 41,510 $ 12.5 53,755 $ 14.3 70,620 $ 19.7 (1) Outstanding restricted share awards as of December 31, 2018, 2017 and 2016 include 0 , 2,195 , and 5,235 unvested restricted shares for employees of Sirius Group. During 2018, White Mountains issued 13,450 restricted shares that vest on January 1, 2021, 290 restricted shares that vest on January 1, 2020 and 365 restricted shares that vest on January 1, 2019. During 2017, White Mountains issued 17,485 restricted shares that vest on January 1, 2020, 250 restricted shares that vest on January 1, 2019 and 250 restricted shares that vest on January 1, 2018. During 2016, White Mountains issued 24,615 restricted shares that vest on January 1, 2019 and 750 restricted shares that vest on January 1, 2018. The unrecognized compensation cost as of December 31, 2018 is expected to be recognized ratably over the remaining vesting periods. Non-Qualified Options As of January 20, 2017, the 125,000 Non-Qualified Options issued to the Company’s former Chairman and CEO had been exercised. During the first quarter of 2017, 40,000 Non-Qualified Options, with an intrinsic value of $4.4 million , were exercised in exchange for 5,142 common shares with an equal total market value. During 2016, 5,000 Non-Qualified Options, with an intrinsic value of $0.4 million , were exercised at $742 per common share and 80,000 Non-Qualified Options, with an intrinsic value of $8.4 million , were exercised in exchange for 9,930 common shares with an equal total market value. Intrinsic value represents the difference between the market price of the Company’s common shares at the date of exercise and the fixed strike price of $742 per common share. The Non-Qualified Options were fully amortized as of 2011. MediaAlpha Class B Unit Awards MediaAlpha has issued Class B unit awards to certain employees. The units entitle the award recipient to participate in distributions from MediaAlpha, subject to a cumulative distribution threshold, which is a performance condition, and a service period. The grant date fair value of the awards is determined when it is deemed probable that the distribution threshold will be met. The service period ranges from 36 months to 48 months. For 2018, MediaAlpha recognized $11.7 million of compensation expense for the vested portion of the awards for which achievement of the performance award was deemed probable, and $3.3 million of unearned compensation expense for unvested awards, which will be recognized over the remaining service periods of the awards. |
Common Shareholders_ Equity and
Common Shareholders’ Equity and Non-controlling Interests | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Common Shareholder's Equity | Common Shareholders’ Equity and Non-controlling Interests Common Shares Repurchased and Retired During the past several years, White Mountains’s board of directors authorized the Company to repurchase its common shares, from time to time, subject to market conditions. Shares may be repurchased on the open market or through privately negotiated transactions. The repurchase authorizations do not have a stated expiration date. As of December 31, 2018 , White Mountains may repurchase an additional 635,705 shares under these board authorizations. In addition, from time to time White Mountains has also repurchased its common shares through tender offers that were separately authorized by its board of directors. During 2018 , the Company repurchased 592,458 common shares for $519.4 million at an average share price of $877 , which were comprised of 582,493 common shares repurchased under the board authorizations for $511.0 million at an average share price of $877 and 9,965 common shares repurchased pursuant to employee benefit plans. Shares repurchased pursuant to employee benefit plans do not fall under the board authorizations referred to above. During 2017 , the Company repurchased 832,725 common shares for $723.9 million at an average share price of $869 , which were comprised of 821,732 common shares repurchased under the board authorizations for $713.1 million at an average share price of $870 and 10,993 common shares repurchased pursuant to employee benefit plans. During 2016 , the Company repurchased 1,106,145 common shares for $887.2 million at an average share price of $802 , which were comprised of 1,098,123 common shares repurchased under the board authorizations for $881.4 million at an average share price of $803 and 8,022 common shares repurchased pursuant to employee benefit plans. Common Shares Issued During 2018 , the Company issued a total of 16,377 common shares, which consisted of 14,105 restricted shares to key personnel and 2,272 shares issued to directors of the Company. During 2017 , the Company issued a total of 25,086 common shares, which consisted of 17,985 restricted shares to key personnel, 5,142 shares issued to the Company’s former Chairman and CEO as a result of exercised options, and 1,959 shares issued to directors of the Company. During 2016 , the Company issued a total of 47,030 common shares, which consisted of 25,365 restricted shares issued to key personnel, 14,930 shares issued to the Company’s former Chairman and CEO as a result of exercised options, 5,000 shares issued in satisfaction of performance shares and 1,735 shares issued to directors of the Company. Dividends on Common Shares For the years ended December 31, 2018, 2017 and 2016 , the Company declared and paid cash dividends totaling $3.8 million , $4.6 million and $5.4 million (or $1.00 per common share). Non-controlling Interests Non-controlling interests consist of the ownership interests of non-controlling shareholders in consolidated entities and are presented separately on the balance sheet. The following table presents the balance of non-controlling interests included in White Mountains’s total equity and the related percentage of each consolidated entity’s total equity owned by non-controlling shareholders as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 $ in Millions Non-controlling Percentage Non-controlling Equity Non-controlling Percentage Non-controlling Equity Other, excluding BAM HG Global 3.1 % $ 14.5 3.1 % $ 15.9 NSM 4.5 13.6 — — MediaAlpha 39.0 16.2 35.7 13.1 Buzz 22.9 1.1 22.9 2.5 Other NSM 13.4 .3 — — Total other, excluding BAM 45.7 31.5 BAM 100.0 (170.6 ) 100.0 (163.2 ) Total non-controlling interests $ (124.9 ) $ (131.7 ) |
Statutory Capital and Surplus
Statutory Capital and Surplus | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Statutory Capital and Surplus | Statutory Capital and Surplus White Mountains’s insurance operations are subject to regulation and supervision in each of the jurisdictions where they are domiciled and licensed to conduct business. Generally, regulatory authorities have broad supervisory and administrative powers over such matters as licenses, standards of solvency, premium rates, policy forms, investments, security deposits, methods of accounting, form and content of financial statements, minimum capital and surplus requirements, dividends and other distributions to shareholders, periodic examinations and annual and other report filings. In general, such regulation is for the protection of policyholders rather than shareholders. The Insurance Act 1978 of Bermuda and related regulations, as amended (“Insurance Act”), regulates the insurance business of Bermuda-domiciled insurers. Under the Insurance Act, insurers are required to maintain available statutory capital and surplus at a level equal to or in excess of its enhanced capital requirement which is established by reference to either a Bermuda Solvency Capital Requirement (“BSCR”) model or an approved internal capital model. Generally, the Bermuda Monetary Authority (“BMA”) has broad supervisory and administrative powers over such matters as licenses, standards of solvency, investments, methods of accounting, form and content of financial statements, minimum capital and surplus requirements, and annual and other report filings. HG Global/BAM HG Re is a Special Purpose Insurer under Bermuda insurance regulations and is subject to regulation and supervision by the BMA. As of December 31, 2018 , HG Re had statutory capital and surplus of $698.9 million . As a Special Purpose Insurer, HG Re has a nominal minimum regulatory capital requirement of $1 . BAM is domiciled in New York and is subject to regulation by the NYDFS. New York financial guarantee insurance law establishes single risk and aggregate limits with respect to insured obligations insured by financial guarantee insurers. BAM’s statutory net loss for the years ended December 31, 2018, 2017 and 2016 was $34.6 million , $25.4 million and $32.7 million . BAM’s members’ surplus, as reported to regulatory authorities as of December 31, 2018 , was $413.7 million , which exceeds the minimum members’ surplus necessary for BAM to maintain its New York State financial guarantee insurance license of $66.0 million . Dividend Capacity There are no restrictions under Bermuda law or the law of any other jurisdiction on the payment of dividends from retained earnings by White Mountains, provided that after the payment of any dividend, the Company would continue to be able to pay its liabilities as they become due and the realizable value of the Company’s assets would remain greater that its liabilities. Following is a description of the dividend capacity of White Mountains’s reinsurance and other operating subsidiaries: HG Global/BAM As of December 31, 2018 , HG Global had $619.0 million face value of preferred shares outstanding, of which White Mountains owned 96.9% . Holders of the HG Global preferred shares receive cumulative dividends at a fixed annual rate of 6.0% on a quarterly basis, when and if declared by HG Global. HG Global did not declare or pay any preferred dividends in 2018. As of December 31, 2018 , HG Global has accrued $288.1 million of dividends payable to holders of its preferred shares, $278.5 million of which is payable to White Mountains and eliminated in consolidation. As of December 31, 2018, HG Global and its subsidiaries had $2.2 million of cash outside of HG Re. HG Re is a Special Purpose Insurer subject to regulation and supervision by the BMA, but does not require regulatory approval to pay dividends. However, HG Re’s dividend capacity is limited to amounts held outside of the Collateral Trusts pursuant to the FLRT with BAM. As of December 31, 2018 , HG Re had statutory capital and surplus of $698.9 million , $757.4 million of assets held in the Collateral Trusts pursuant to the FLRT with BAM and $3.0 million of cash and investments outside the Collateral Trusts. Effective January 1, 2014, HG Global and BAM agreed to change the interest rate on the BAM Surplus Notes for the five years ending December 31, 2018 from a fixed rate of 8.0% to a variable rate equal to the one-year U.S. treasury rate plus 300 basis points, set annually, which was 4.6% for 2018 and is 5.7% for 2019. During 2018, BAM exercised its option to extend the variable rate period on the BAM Surplus Notes for three years to December 31, 2021. At the end of the variable rate period, the interest rate will be fixed at the higher of the then current variable rate or 8.0% . BAM is required to seek regulatory approval to pay interest and principal on the BAM Surplus Notes only to the extent that its capital resources continue to support its outstanding obligations, business plan and rating. No payment of interest or principal on the BAM Surplus Notes may be made without the approval of the New York State Department of Financial Services (“NYDFS”). During 2017, HG Global and BAM agreed to change the payment terms of the Series B Notes, so that payments will reduce principal and accrued interest on a pro rata basis, consistent with the payment terms on the Series A Notes. The terms of the Series B Notes had previously stipulated that payments would first reduce interest owed, then reduce principal owed once all accrued interest had been paid. The NYDFS approved the change during the third quarter of 2017. During 2018 and 2017, BAM repaid $17.7 million and $4.0 million of the BAM Surplus Notes and $5.3 million and $1.0 million of accrued interest. NSM During the period from May 11, 2018, the date of White Mountains’s acquisition of NSM, through December 31, 2018, NSM did not pay any dividends to its shareholders. As of December 31, 2018, NSM had $16.2 million of net unrestricted cash. MediaAlpha During 2018, MediaAlpha paid $15.9 million of dividends, of which $9.8 million was paid to White Mountains. As of December 31, 2018, MediaAlpha had $5.7 million of net unrestricted cash. Other Operations During 2018, White Mountains paid a $3.8 million common share dividend. As of December 31, 2018 , the Company and its intermediate holding companies held $536.0 million of net unrestricted cash, short-term investments and fixed maturity investments, $925.6 million of common equity securities and $67.3 million of other long-term investments included in its Other Operations segment. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information White Mountains has determined that its reportable segments are HG Global/BAM, NSM, MediaAlpha and Other Operations. As a result of the OneBeacon, Sirius Group and Tranzact transactions, the results of operations for OneBeacon and Sirius Group, previously reported in their own respective segments, and Tranzact, previously reported in the Other Operations segment, have been classified as discontinued operations and are now presented, net of related income taxes, as such in the statement of operations and comprehensive income. See Note 19 — “Held for Sale and Discontinued Operations” . Beginning in the second quarter of 2017, MediaAlpha’s results have been presented as a separate segment within White Mountains’s consolidated financial statements. Prior year amounts have been reclassified to conform to the current period’s presentation. White Mountains has made its segment determination based on consideration of the following criteria: (i) the nature of the business activities of each of the Company’s subsidiaries and affiliates; (ii) the manner in which the Company’s subsidiaries and affiliates are organized; (iii) the existence of primary managers responsible for specific subsidiaries and affiliates; and (iv) the organization of information provided to the chief operating decision makers and the Board of Directors. The HG Global/BAM segment consists of White Mountains’s investment in HG Global and the consolidated results of BAM. BAM is a municipal bond insurer domiciled in New York that was established to provide insurance on municipal bonds issued to support essential U.S. public purposes such as schools, utilities, core governmental functions and existing transportation facilities. HG Global, together with its subsidiaries, provided the initial capitalization of BAM through the purchase of BAM Surplus Notes. HG Global also provides up to 15% -of-par, first loss reinsurance protection for policies underwritten by BAM. For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds. BAM's results are attributed to non-controlling interests. NSM is a full-service MGU and program administrator for specialty property and casualty insurance. The company places insurance in niche sectors such as specialty transportation, social services and real estate. On behalf of its insurance carrier partners, NSM manages all aspects of the placement process, including product development, marketing, underwriting, policy issuance and claims. NSM earns commissions based on the volume and profitability of the insurance that it places. NSM does not take insurance risk. MediaAlpha is a leading marketing technology company that develops technology that enables the programmatic buying and selling of vertical-specific, performance-based media between advertisers (buyers of advertising inventory) and publishers (sellers of advertising inventory) through cost-per-click, cost-per-call and cost-per-lead pricing models. MediaAlpha's media buying platform enables advertisers to create and automate data-driven bidding strategies designed to improve the efficiency and enhance overall performance of their marketing campaigns that target high-intent consumers at the time and place they are ready to purchase. MediaAlpha’s publisher platform is used by publishers to sell their vertical-specific, performance-based media to advertisers through transparent, programmatic, auction-based marketplaces. White Mountains’s Other Operations segment consists of the Company and its wholly-owned subsidiary, WM Capital, its other intermediate holding companies, its investment management subsidiary, WM Advisors, investment assets managed by WM Advisors, its interests in PassportCard/DavidShield and Kudu, certain other consolidated and unconsolidated entities and certain other strategic investments. The consolidated entities consist of Wobi and Buzz. White Mountains’s Other Operations segment also includes its variable annuity reinsurance business, WM Life Re. Significant intercompany transactions among White Mountains’s segments have been eliminated herein. The following tables present the financial information for White Mountains’s segments: Millions HG Global/BAM (1) NSM MediaAlpha Other Operations Total Year Ended December 31, 2018 Earned insurance premiums $ 13.9 $ — $ — $ — $ 13.9 Net investment income 16.7 — — 42.3 59.0 Net realized and unrealized investment losses (7.5 ) — — (100.8 ) (108.3 ) Advertising and commission revenues (2) — 94.7 295.5 4.1 394.3 Other revenues 1.2 6.9 1.6 .5 10.2 Total revenues 24.3 101.6 297.1 (53.9 ) 369.1 Insurance acquisition expenses 5.3 — — — 5.3 Other underwriting expenses .4 — — — .4 Cost of sales — — 245.0 3.7 248.7 General and administrative expenses 48.0 61.6 31.7 94.4 235.7 Broker commission expense — 28.9 — — 28.9 Amortization of other intangible assets — 8.3 10.3 .2 18.8 Interest expense — 8.0 1.2 .3 9.5 Total expenses 53.7 106.8 288.2 98.6 547.3 Pre-tax (loss) income $ (29.4 ) $ (5.2 ) $ 8.9 $ (152.5 ) $ (178.2 ) (1) BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS. (2) As of December 31, 2018, approximately 29% of MediaAlpha’s advertising revenue was associated with one customer. As of December 31, 2018, approximately 33% of NSM’s commission revenue was associated with one single carrier. Millions HG Global/BAM (1) MediaAlpha Other Operations Total Year Ended December 31, 2017 Earned insurance premiums $ 9.4 $ — $ 1.0 $ 10.4 Net investment income 12.3 — 43.7 56.0 Net realized and unrealized investment gains .6 — 132.7 133.3 Advertising and commission revenues (2) — 163.2 3.8 167.0 Other revenues 1.0 — 6.1 7.1 Total revenues 23.3 163.2 187.3 373.8 Losses and LAE — — 1.1 1.1 Insurance acquisition expenses 4.0 — .1 4.1 Other underwriting expenses .4 — — .4 Cost of sales — 135.9 3.5 139.4 General and administrative expenses 42.9 16.2 148.9 208.0 Amortization of other intangible assets — 10.5 .2 10.7 Interest expense — 1.0 1.3 2.3 Total expenses 47.3 163.6 155.1 366.0 Pre-tax (loss) income $ (24.0 ) $ (.4 ) $ 32.2 $ 7.8 (1) BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS. (2) As of December 31, 2017, approximately 27% of MediaAlpha’s advertising revenue was associated with one customer. Millions HG Global/BAM (1) MediaAlpha Other Operations Total Year Ended December 31, 2016 Earned insurance premiums $ 5.9 $ — $ 7.5 $ 13.4 Net investment income 9.0 — 23.1 32.1 Net realized and unrealized investment gains (losses) .7 — (28.1 ) (27.4 ) Advertising and commission revenues (2) — 116.5 1.8 118.3 Other revenues 1.1 — 20.2 21.3 Total revenues 16.7 116.5 24.5 157.7 Losses and LAE — — 8.0 8.0 Insurance acquisition expenses 3.4 — 2.2 5.6 Other underwriting expenses .4 — — .4 Cost of sales — 97.8 4.2 102.0 General and administrative expenses 39.6 11.8 124.1 175.5 Amortization of other intangible assets — 10.1 .4 10.5 Interest expense — .9 2.1 3.0 Total expenses 43.4 120.6 141.0 305.0 Pre-tax loss $ (26.7 ) $ (4.1 ) $ (116.5 ) $ (147.3 ) (1) BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS. (2) As of December 31, 2016, approximately 24% of MediaAlpha’s advertising revenue was associated with one customer. Millions Selected Balance Sheet Data HG Global/BAM NSM MediaAlpha Other Operations Held for Sale Total December 31, 2018: Total investments $ 768.3 $ 1.7 $ — $ 1,772.9 $ — $ 2,542.9 Total assets $ 816.2 (1) $ 627.0 $ 88.4 $ 1,827.7 (2) $ 3.3 $ 3,362.6 Total liabilities $ 212.5 (2) $ 314.8 $ 46.9 $ 70.2 $ — $ 644.4 Total White Mountains’s common shareholders’ equity $ 759.8 (2) $ 298.3 $ 25.3 $ 1,756.4 (2) $ 3.3 $ 2,843.1 Non-controlling interest $ (156.1 ) $ 13.9 $ 16.2 $ 1.1 $ — $ (124.9 ) December 31, 2017: Total investments $ 693.4 $ — $ — $ 2,687.3 $ — $ 3,380.7 Total assets $ 747.4 (1) $ — $ 96.5 $ 2,812.0 (2) $ 3.3 $ 3,659.2 Total liabilities $ 167.0 (2) $ — $ 59.8 $ 71.6 $ — $ 298.4 Total White Mountains’s common $ 727.7 (2) $ — $ 23.6 $ 2,737.9 (2) $ 3.3 $ 3,492.5 Non-controlling interest $ (147.3 ) $ — $ 13.1 $ 2.5 $ — $ (131.7 ) (1) As of December 2018 and 2017, BAM’s total assets reflected the elimination of $481.3 and $499.0 of BAM Surplus Notes issued to HG Global and its subsidiaries, and $143.7 and $126.0 in accrued interest related to the BAM Surplus Notes. (2) HG Global preferred dividends payable to White Mountains’s subsidiaries is eliminated in White Mountains’s consolidated financial statements. For segment reporting, the HG Global preferred dividends payable to White Mountains’s subsidiaries included within the HG Global/BAM segment are eliminated against the offsetting receivable included within the Other Operations segment and therefore added back to White Mountains’s common shareholders’ equity within the HG Global/BAM segment. As of December 31, 2018 and 2017, the HG Global preferred dividends payable to White Mountains’s subsidiaries was $278.5 and $227.9 . |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Entities White Mountains’s investments in unconsolidated entities are included within other long-term investments and consist of investments in common equity securities or similar instruments, which give White Mountains the ability to exert significant influence over the investee’s operating and financial policies (“equity method eligible unconsolidated entities”). Such investments may be accounted for under either the equity method or, alternatively, White Mountains may elect to account for them under the fair value option. The following table presents the carrying values of investments in equity method eligible unconsolidated entities recorded within other long-term investments: December 31, Millions 2018 2017 Equity method eligible unconsolidated entities, at fair value $ 138.1 $ 58.0 Investments accounted for under the equity method 1.3 4.6 Total investments in equity method eligible unconsolidated entities 139.4 62.6 Other unconsolidated investments (1) 186.2 146.2 Total other long-term investments $ 325.6 $ 208.8 (1) Consists of other long-term investments that are not equity method eligible. The following table presents White Mountains’s investments in equity method eligible unconsolidated entities as of December 31, 2018 and 2017: Ownership Interest Investee December 31, 2018 December 31, 2017 Instrument Held PassportCard/DavidShield (1) 50.0% 50% / 0% Common shares Kudu 49.5% — Units durchblicker 45.0% 45.0% Common shares Tuckerman Capital Fund III, L.P. 18.5% 21.3% Limited partnership interest Compare.com 18.4% 22.1% Common shares (1) As of December 31, 2018, White Mountains’s ownership interest in DavidShield comprised a 50% direct interest and White Mountains’s ownership interest in PassportCard comprised a 25% direct ownership interest and a 25% indirect interest through DavidShield. As of December 31, 2017, White Mountains had no ownership in DavidShield and White Mountains’s ownership interest in PassportCard comprised a 50% direct interest. See Note 2 — “Significant Transactions”. The following tables presents aggregated summarized financial information for White Mountains’s investments in equity method eligible unconsolidated entities: December 31, Millions 2018 2017 Balance sheet data (1) : Total assets $ 218.8 $ 75.4 Total liabilities $ 46.7 $ 24.2 (1) Financial data for durchblicker, Compare.com and Tuckerman Capital Fund III, L.P. is on a one-quarter lag. Year Ended December 31, Millions 2018 2017 2016 Income statement data (1) : Revenues $ 134.1 $ 60.0 $ 32.9 Expenses $ (110.1 ) $ (66.8 ) $ (76.4 ) (1) Financial data for durchblicker, Compare.com and Tuckerman Capital Fund III, L.P. is on a one-quarter lag. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities BAM As a mutual insurance company, BAM is owned by its members. BAM charges an insurance premium on each municipal bond insurance policy it writes. A portion of the premium is a MSC and the remainder is a risk premium. In the event of a municipal bond refunding, the MSC from the original issuance can be reutilized, in effect serving as a credit against the total insurance premium on the refunding of the municipal bond. Issuers of debt insured by BAM are members of BAM so long as any of their BAM-insured debt is outstanding, and as members they have certain interests in BAM, including the right to vote for BAM’s directors and to receive dividends in the future, if declared. The equity at risk funded by BAM’s members is not sufficient to fund its operations without the additional financial support provided by the BAM Surplus Notes and accordingly, BAM is considered to be a VIE. At inception, BAM and HG Re also entered into the FLRT. HG Re provides first loss protection up to 15% -of-par outstanding on each municipal bond insured by BAM. For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds. In return, BAM cedes 60% of the risk premium charged for insuring the municipal bond, net of a ceding commission. HG Re’s obligations under the FLRT are limited to the assets in the Regulation 114 Trust and the Supplemental Trust. Losses required to be reimbursed under the FLRT are subject to an aggregate limit equal to the assets held in the Collateral Trusts at any point in time. In addition, under the FLRT, HG Holdings Ltd, a subsidiary of HG Global, has the right to designate two directors for election to BAM’s board of directors. Since BAM is owned by its members, its equity and results of operations are included in non-controlling interests. However, White Mountains is required to consolidate BAM’s results in its financial statements because BAM is a VIE for which White Mountains is the primary beneficiary. Kudu On February 5, 2018, White Mountains entered into an agreement to fund up to $125.0 million in Kudu Investment Management, LLC (“Kudu”), a capital provider to asset management and wealth management firms. Kudu specializes in providing capital solutions to asset managers and registered investment advisers, for purposes including generational ownership transfers, management buyouts, acquisition and growth finance, and legacy partner liquidity. White Mountains has determined that Kudu is a VIE but that White Mountains is not the primary beneficiary. White Mountains’s ownership interest gives White Mountains the opportunity to exert significant influence over the significant financial and operating activities of Kudu. Accordingly, Kudu meets the criteria to be accounted for under the equity method. White Mountains has taken the fair value option for its investment in Kudu. White Mountains’s investment in Kudu is measured at fair value using NAV as a practical expedient. Changes in the fair value of Kudu have been recorded in realized and unrealized investment gains. White Mountains’s maximum loss in Kudu is limited to the amount invested. As of December 31, 2018, Kudu is recorded within other long-term investments at a carrying amount of $30.7 million . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments White Mountains records its financial instruments at fair value with the exception of the NSM Bank Facility and the MediaAlpha Bank Facility, which are recorded as debt at face value less unamortized original issue discount. The following tables presents the fair value and carrying value of these financial instruments as of December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 Millions Fair Value Carrying Value Fair Value Carrying Value NSM Bank Facility $ 176.1 $ 176.6 $ — $ — MediaAlpha Bank Facility $ 14.6 $ 14.2 $ 23.9 $ 23.8 The fair value estimates for the NSM Bank Facility and the MediaAlpha Bank Facility have been determined based on a discounted cash flows approach and are considered to be Level 3 measurements. |
Transactions with Related Perso
Transactions with Related Persons | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Transactions with Related Persons | Transactions with Related Persons During 2017, the Company repurchased shares from Franklin Mutual Advisers, a beneficial owner of the Company. On July 13, 2017, the Company repurchased 235,000 White Mountains common shares for $850.00 per share, the market price at the time the agreement was reached. During 2016, the Company repurchased shares from Franklin Mutual Advisers in two transactions. On April 19, 2016, the Company repurchased 325,000 White Mountains common shares for $807.00 per share, the market price at the time the agreement was reached. On September 15, 2016, the Company repurchased 305,000 White Mountains common shares for $820.00 per share, the market price at the time the agreement was reached. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies White Mountains leases certain office spaces under non-cancellable operating leases that expire on various dates through 2022. Rental expense for all of White Mountains’s locations was $5.5 million , $3.5 million and $3.4 million for the years ended December 31, 2018, 2017 and 2016 . White Mountains also has various other lease obligations that are immaterial in the aggregate. White Mountains’s future annual minimum rental payments required under non-cancellable leases, which are primarily for office space, are $6.6 million , $4.9 million , $4.2 million , and $12.0 million for the years 2019, 2020, 2021 and 2022 and thereafter. White Mountains also has future binding commitments to fund certain other long-term investments. These commitments, which totaled $170.2 million as of December 31, 2018, do not have fixed funding dates. Legal Contingencies White Mountains is subject to litigation and arbitration in the normal course of business. White Mountains considers the requirements of ASC 450 when evaluating its exposure to litigation and arbitration. ASC 450 requires that accruals be established for litigation and arbitration if it is probable that a loss has been incurred and it can be reasonably estimated. ASC 450 also requires that litigation and arbitration be disclosed if it is probable that a loss has been incurred or if there is a reasonable possibility that a loss may have been incurred. White Mountains does not have any current litigation that may have a material adverse effect on White Mountains’s financial condition, results of operations or cash flows. The following description presents significant legal contingencies, ongoing non-claims related litigation or arbitration as of December 31, 2018: Esurance On October 7, 2011, the Company completed the sale of its Esurance Holdings, Inc. and its subsidiaries and Answer Financial Inc. and its subsidiaries (collectively, “Esurance”) to The Allstate Corporation (“Allstate”) pursuant to a Stock Purchase Agreement dated as of May 17, 2011. Subject to specified thresholds and limits, the Company remains contingently liable to Allstate for specified matters related to the pre-closing period, including (a) losses of Esurance arising from extra-contractual claims and claims in excess of policy limits, (b) certain corporate reorganizations effected to remove entities from Esurance that were not being sold in the transaction, and (c) certain tax matters, including certain net operating losses being less than stated levels. Sirius Tax Contingency A subsidiary of Sirius Group, which was sold by White Mountains in 2016, has been denied interest deductions by the Swedish Tax Authority (“STA”) for tax years 2013-2016. In October 2018, the Swedish Administrative Court ruled against Sirius Group on its appeal of the Swedish Tax Agency’s denial of certain interest deductions relating to periods prior to the sale of Sirius Group to CMI. In connection with the sale, White Mountains indemnified Sirius Group against the loss of certain tax attributes, including those related to these interest deductions. As a result, for the year ended December 31, 2018, White Mountains recorded a loss of $17.3 million within net (loss) gain on sale of discontinued operations reflecting the value of these interest deductions. Sirius Group has appealed the decision to the Swedish Administrative Court of Appeal. NSM Contingent Liability In connection with White Mountains’s acquisition of NSM, White Mountains and NSM entered into an agreement with American International Group, Inc. (“AIG”) to facilitate a sale of NSM’s U.S. collector car renewal rights owned by AIG to a third party by December 31, 2019. Under the terms of the agreement, if White Mountains and NSM are unable to facilitate a sale by December 31, 2019, AIG has the right to require NSM to purchase the renewal rights for $82.5 million . The Company has guaranteed NSM’s obligations under the agreement with AIG. The manner in which these obligations are ultimately discharged depends on a number of factors, including the market value of the renewal rights, the number of potential buyers and the current and prospective environment for U.S. collector car insurance. White Mountains believes that the estimated fair value of the renewal rights is equal to or greater than $82.5 million and, accordingly, no accrual of a liability is necessary at December 31, 2018 . |
Held for Sale and Discontinued
Held for Sale and Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Held for Sale and Discontinued Operations | Discontinued Operations OneBeacon On September 28, 2017, Intact Financial Corporation completed its acquisition of OneBeacon in an all-cash transaction for $18.10 per share. White Mountains received total proceeds of $1.3 billion and recorded a gain of $554.6 million , net of transaction costs. For 2017 through the closing date of the transaction, net income from discontinued operations related to OneBeacon was $20.5 million . Net income from discontinued operations related to OneBeacon was $108.6 million for the year ended December 31, 2016. Star & Shield On March 7, 2017, White Mountains completed the sale of Star & Shield and its investment in SSIE surplus notes to K2 Insurances LLC. White Mountains did not recognize any gain or loss on the sale. Tranzact On July 21, 2016, White Mountains completed the sale of Tranzact to an affiliate of Clayton, Dubilier & Rice, LLC and received net proceeds of $221.3 million at closing. On October 5, 2016, White Mountains received additional proceeds of $1.2 million following the release of the post-closing purchase price adjustment escrow. For the year ended December 31, 2016, White Mountains recorded $51.9 million of gain from the sale of Tranzact in discontinued operations in the statement of operations. Through July 21, 2016, Tranzact's results of operations are reported as discontinued operations and assets and liabilities held for sale within White Mountains's GAAP financial statements. For the year ended December 31, 2016, White Mountains recorded net income from discontinued operations of $6.1 million from Tranzact. White Mountains recognized a $21.4 million income tax benefit in continuing operations related to the reversal of a valuation allowance that resulted from the gain on the sale of Tranzact recognized within discontinued operations. This income tax benefit was recorded in continuing operations with an offsetting amount of net income tax expense recorded in discontinued operations, including $30.2 million of income tax expense recorded to gain from sale of Tranzact in discontinued operations and $8.8 million of income tax benefit recorded to net income from discontinued operations. During 2017, White Mountains recorded a $3.2 million increase to the gain from sale of Tranzact in discontinued operations as a result of state income tax expense. Sirius Group On April 18, 2016, White Mountains completed the sale of Sirius Group to CMI for approximately $2.6 billion . Of this amount, $161.8 million of this amount was used to purchase certain assets to be retained by White Mountains out of Sirius Group, including shares of OneBeacon. The amount paid at closing was based on an estimate of Sirius Group’s closing date tangible common shareholder’s equity. During 2016, White Mountains recorded $363.2 million of gain from sale of Sirius Group in discontinued operations in the statement of operations and $113.3 million in other comprehensive income from discontinued operations. During 2017, White Mountains recorded a $0.7 million reduction to the gain from sale of Sirius Group as a result of a change to the valuation of the accrued incentive compensation payable to Sirius Group employees. Through April 18, 2016, Sirius Group’s results are reported as discontinued operations within White Mountains’s GAAP financial statements. Net income (loss) from discontinued operations did not include investment gains (losses) from White Mountains’s investment in OneBeacon and certain other investments that were held in the Sirius Group legal entities. For the year ended December 31, 2016, $3.7 million of net investment income and net realized and unrealized investment gains (losses), net of related tax effects, that were included in the Sirius Group legal entities have been excluded from net income (loss) from discontinued operations. For the years ended December 31, 2016, White Mountains recorded $4.3 million of net loss from discontinued operations and $32.0 million of other comprehensive income from Sirius Group. In October 2018, the Swedish Administrative Court ruled against Sirius Group on its appeal of the Swedish Tax Agency’s denial of certain interest deductions relating to periods prior to the sale of Sirius Group to CMI. In connection with the sale, White Mountains indemnified Sirius Group against the loss of certain tax attributes, including those related to these interest deductions. As a result, for the year ended December 31, 2018, White Mountains recorded a $17.3 million loss on sale of discontinued operations reflecting the value of these interest deductions. See Note 18 — “Commitments and Contingencies” . Other As of December 31, 2017, White Mountains has classified its Guilford, Connecticut property, which consists of an office building and adjacent land, as held for sale. As of December 31, 2018 and 2017 , the property has been measured at its estimated fair value net of disposal costs of $3.3 million . The related write down of $3.7 million was recorded within other expenses during 2017. Net Income (Loss) from Discontinued Operations The following tables present the results of operations, including related income taxes associated with the business classified as discontinued operations. For the year ended December 31, 2017 and 2016, the amounts presented relate to OneBeacon, Sirius Group and Tranzact. The results of discontinued operations from Sirius Group and Tranzact up to the closing date of the transaction inure to White Mountains. Year Ended December 31, 2017 Millions OneBeacon Sirius Group Tranzact Total Revenues Earned insurance premiums $ 807.6 $ — $ — $ 807.6 Net investment income 39.7 — — 39.7 Net realized and unrealized investment gains 38.8 — — 38.8 Other revenues 7.7 — — 7.7 Total revenues 893.8 — — 893.8 Expenses Loss and loss adjustment expenses 546.0 — — 546.0 Insurance and reinsurance acquisition expenses 145.6 — — 145.6 Other underwriting expenses 156.2 — — 156.2 General and administrative expenses 21.2 — — 21.2 Interest expense 10.0 10.0 Total expenses 879.0 — — 879.0 Pre-tax income 14.8 — — 14.8 Income tax benefit 5.7 — — 5.7 Net income from discontinued operations 20.5 — — 20.5 Gain (loss) from sale of discontinued operations, net of tax 554.5 (.7 ) 3.2 557.0 Total income (loss) from discontinued operations 575.0 (.7 ) 3.2 577.5 Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax .3 — — .3 Recognition of benefit plan assets and obligations from the sale of OneBeacon, net of tax 2.9 — — 2.9 Comprehensive income (loss) from discontinued operations $ 578.2 $ (.7 ) $ 3.2 $ 580.7 Year Ended December 31, 2016 Millions OneBeacon Sirius Group Tranzact Total Revenues Earned insurance premiums $ 1,100.6 $ 240.1 $ — $ 1,340.7 Net investment income 50.6 14.4 — 65.0 Net realized and unrealized investment gains (losses) 37.7 (1.5 ) — 36.2 Other revenues 5.5 .6 119.6 125.7 Total revenues 1,194.4 253.6 119.6 1,567.6 Expenses Loss and loss adjustment expenses 656.0 154.9 — 810.9 Insurance and reinsurance acquisition expenses 206.0 59.0 — 265.0 Other underwriting expenses 209.0 30.9 — 239.9 General and administrative expenses 14.2 10.4 116.7 141.3 Interest expense 13.1 7.9 3.2 24.2 Total expenses 1,098.3 263.1 119.9 1,481.3 Pre-tax income (loss) 96.1 (9.5 ) (.3 ) 86.3 Income tax benefit 12.5 3.1 6.4 22.0 Net income (loss) from discontinued operations 108.6 (6.4 ) 6.1 108.3 Gain from sale of discontinued operations, net of tax — 363.2 51.9 415.1 Total income from discontinued operations 108.6 356.8 58.0 523.4 Change in foreign currency translation and other comprehensive 1.0 32.0 — 33.0 Recognition of foreign currency translation from sale of Sirius Group, net of tax — 113.3 — 113.3 Comprehensive income from discontinued operations $ 109.6 $ 502.1 $ 58.0 $ 669.7 Net Change in Cash from Discontinued Operations The transactions to purchase the investments in OneBeacon and other investments held by Sirius Group prior to the closing are presented in the statement of cash flows as net settlement of investment cash flows with discontinued operations. The following table presents the net change in cash associated with the businesses classified as discontinued operations: Year Ended December 31, Millions 2017 2016 Net cash provided from operations $ 157.0 $ 23.6 Net cash provided from (used for) investing activities 3.0 241.4 Net cash used for financing activities (61.9 ) (93.8 ) Net change in cash during the period 98.1 171.2 Cash balances at beginning of period 70.5 245.4 Net change in cash held for sale (.9 ) (.3 ) Cash sold as part of sale of consolidated subsidiaries (167.7 ) (345.8 ) Cash balances at end of period $ — $ 70.5 Earnings Per Share from Discontinued Operations White Mountains calculates earnings per share using the two-class method, which allocates earnings between common and unvested restricted common shares. Both classes of shares participate equally in earnings on a per share basis. Basic earnings per share amounts are based on the weighted average number of common shares outstanding adjusted for unvested restricted common shares. Diluted earnings per share amounts are also impacted by the net effect of potentially dilutive common shares outstanding. The following table presents the Company’s computation of earnings per share for discontinued operations for the years ended December 31, 2018, 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Basic and diluted earnings per share numerators (in millions): Net (loss) income attributable to White Mountains’s common shareholders $ (141.2 ) $ 627.2 $ 401.8 Less: total (loss) income from continuing operations, net of tax (124.0 ) 49.7 (121.6 ) Net (loss) income from discontinued operations attributable to White Mountains’s common shareholders (17.2 ) 577.5 523.4 Allocation of earnings (losses) to participating restricted common shares (1) 0.2 (7.3 ) (6.8 ) Basic and diluted (losses) earnings per share numerators $ (17.0 ) $ 570.2 $ 516.6 Basic earnings per share denominators (in thousands): Total average common shares outstanding during the period $ 3,382.5 $ 4,293.8 $ 5,014.9 Average unvested restricted common shares (3) (40.1 ) (54.3 ) (64.8 ) Basic earnings (losses) per share denominator $ 3,342.4 $ 4,239.5 $ 4,950.1 Diluted earnings per share denominator (in thousands): Total average common shares outstanding during the period $ 3,382.5 $ 4,293.8 $ 5,018.1 Average unvested restricted common shares (3) (40.1 ) (54.3 ) (64.8 ) Diluted earnings (losses) per share denominator (4) $ 3,342.4 $ 4,239.5 $ 4,953.3 Basic (losses) earnings per share (in dollars) - discontinued operations: $ (5.09 ) $ 134.50 $ 104.37 Diluted (losses) earnings per share (in dollars) - discontinued operations: $ (5.09 ) $ 134.50 $ 104.32 (1) Restricted shares issued by White Mountains contain dividend participation features, and therefore, are considered participating securities. (2) Net earnings attributable to White Mountains’s common shareholders, net of restricted share amounts, is equal to undistributed earnings for the years ended December 31, 2018, 2017 and 2016 . (3) Restricted common shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Compensation Plans” . (4) The diluted earnings per share denominator for the year ended December 31, 2016 includes the impact of 40,000 common shares issuable upon exercise of the non-qualified options outstanding, which resulted in 3,217 incremental shares outstanding over the period. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events MediaAlpha On February 26, 2019, MediaAlpha completed the sale of a significant minority stake to Insignia Capital Group in connection with a recapitalization and cash distribution to existing equityholders. MediaAlpha also repurchased a portion of the holdings of existing equityholders. The transaction valued MediaAlpha at approximately $350.0 million . White Mountains retained a 42% ownership interest in MediaAlpha on a fully-diluted basis, and received a net cash distribution of approximately $88.0 million . As a result of the transaction, White Mountains also expects that it will no longer consolidate MediaAlpha in its financial statements and will mark its interest in MediaAlpha to fair value at the transaction closing date and in subsequent periods. Kudu On February 14, 2019, White Mountains entered into a definitive agreement to buy all of the interests in Kudu held by certain funds managed by Oaktree Capital Management, L.P. (“Oaktree”) for approximately $50.0 million . In connection with the transaction, White Mountains will assume all of Oaktree’s unfunded capital commitments to Kudu, increasing White Mountains’s total unfunded Kudu capital commitment to approximately $167.0 million . If Kudu calls additional capital from Oaktree prior to the closing of the transaction, the purchase price would increase by the amount of the capital called, and White Mountains’s assumed unfunded capital commitment would decrease by an equal amount. As a result of the transaction, White Mountains’s ownership of Kudu will increase from 49.5% to 99.0% , and it expects to consolidate Kudu in its financial statements after closing. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quartely Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (Unaudited) The following table presents selected quarterly financial data for 2018 and 2017 . The quarterly financial data includes, in the opinion of management, all recurring adjustments necessary for a fair presentation of the results of operations for the interim periods. As a result of the OneBeacon, Sirius Group and Tranzact transactions, the results of operations for OneBeacon, Tranzact and Sirius Group have been classified as discontinued operations and are now presented, net of related income taxes, as such in the statement of comprehensive income. See Note 19 — “Held for Sale and Discontinued Operations” . Prior year amounts have been reclassified to conform to the current period’s presentation. Prior year amounts have also been adjusted for the impact of White Mountains’s financial statement revisions. 2018 Three Months Ended 2017 Three Months Ended Millions, Except Per Share Amounts Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Revenues $ 6.0 $ 198.7 $ 122.3 $ 42.1 $ 114.0 $ 87.5 $ 83.5 $ 88.8 Expenses 150.1 154.4 134.7 108.1 108.8 79.1 85.7 92.4 Pre-tax income (loss) (144.1 ) 44.3 (12.4 ) (66.0 ) 5.2 8.4 (2.2 ) (3.6 ) Tax benefit (expense) 3.6 3.6 (2.5 ) (.7 ) 2.5 4.0 1.0 0.3 Income (loss) from continuing operations (140.5 ) 47.9 (14.9 ) (66.7 ) 7.7 12.4 (1.2 ) (3.3 ) Income (loss) from discontinued operations, net of tax — (17.3 ) — .1 4.3 539.1 2.8 31.3 Non-controlling interest in consolidated subsidiaries 3.0 10.2 18.4 18.6 10.5 10.6 12.0 1.0 Income (loss) attributable to White Mountains’s common shareholders $ (137.5 ) $ 40.8 $ 3.5 $ (48.0 ) $ 22.5 $ 562.1 $ 13.6 $ 29.0 Income (loss) attributable to White Mountains’s common shareholders per share: Basic Continuing operations $ (43.24 ) $ 18.27 $ 1.02 $ (12.85 ) $ 4.85 $ 5.36 $ 2.36 $ (0.52 ) Discontinued operations — (5.44 ) — .03 1.15 125.45 .61 6.86 Total consolidated operations $ (43.24 ) $ 12.83 $ 1.02 $ (12.82 ) $ 6.00 $ 130.81 $ 2.97 $ 6.34 Diluted Continuing operations $ (43.24 ) $ 18.27 $ 1.02 $ (12.85 ) $ 4.85 $ 5.36 $ 2.36 $ (0.52 ) Discontinued operations — (5.44 ) — .03 1.15 125.45 .61 6.86 Total consolidated operations $ (43.24 ) $ 12.83 $ 1.02 $ (12.82 ) $ 6.00 $ 130.81 $ 2.97 $ 6.34 |
SCHEDULE I SUMMARY OF INVESTMEN
SCHEDULE I SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
SCHEDULE I SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES | WHITE MOUNTAINS INSURANCE GROUP, LTD. SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES At December 31, 2018 Millions Cost Carrying Value Fair Value Fixed maturity investments: U.S. Government and government agencies and authorities $ 154.0 $ 153.2 $ 153.2 Debt securities issued by corporations 519.0 510.5 510.5 States, municipalities and political subdivisions 279.0 280.3 280.3 Mortgage and asset-backed securities 136.1 133.5 133.5 Total fixed maturity investments 1,088.1 1,077.5 1,077.5 Short-term investments 214.2 214.2 214.2 Common equity securities: Exchange traded funds 681.8 675.3 675.3 Banks, trust and insurance companies 11.8 13.5 13.5 Industrial, miscellaneous and other 211.1 236.8 236.8 Total common equity securities 904.7 925.6 925.6 Other long-term investments 330.3 325.6 325.6 Total investments $ 2,537.3 $ 2,542.9 $ 2,542.9 |
SCHEDULE II CONDENSED FINANCIAL
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT CONDENSED BALANCE SHEETS (1) December 31, Millions 2018 2017 Assets: Cash $ .7 $ 14.9 Fixed maturity investments, at fair value — 869.6 Common equity securities, at fair value 335.6 641.8 Other long-term investments (2) — (3.7 ) Short-term investments, at amortized cost 28.0 57.2 Other assets 1.8 30.9 Investments in consolidated subsidiaries 2,533.2 1,914.8 Total assets $ 2,899.3 $ 3,525.5 Liabilities: Payable to subsidiary $ 15.8 $ 11.8 Other liabilities 25.9 21.2 Total liabilities (3) 41.7 33.0 White Mountains’s common shareholders’ equity 2,843.1 3,492.5 Non-controlling interests 14.5 — Total liabilities and equity $ 2,899.3 $ 3,525.5 (1) These condensed unconsolidated financial statements reflect the results of operations, financial condition and cash flows for the Company. Investments in controlling subsidiaries are accounted for using the equity method. Under the equity method, investments in subsidiaries are recorded on the condensed balance sheets at the amount of the Company’s ownership percentage of the subsidiary’s GAAP book value. The income from subsidiaries is reported on a net of tax basis as equity in earnings from consolidated and unconsolidated subsidiaries on the condensed statements of operations and comprehensive income. Capital contributions to and distributions from subsidiaries are presented within investing activities on the condensed statements of cash flows. (2) As of December 31, 2017, other long-term investments includes $(3.7) related to foreign currency forward contracts. See Note 7 — “Derivatives—Foreign Currency Forward Contracts ”. (3) As of December 31, 2018, White Mountains other liabilities includes $17.3 related to the Sirius tax contingency. See Note 18 — “Commitments and Contingencies ”. Schedules of the Registrant should be read in conjunction with the Consolidated Financial Statements and Notes. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (1) Year Ended December 31, Millions 2018 2017 2016 Revenues (loss) (including realized and unrealized gains and losses) $ (47.7 ) $ 27.3 $ (1.0 ) Expenses 45.9 99.7 68.2 Pre-tax loss (93.6 ) (72.4 ) (69.2 ) Income tax expense (2.5 ) (1.4 ) (.5 ) Net loss (96.1 ) (73.8 ) (69.7 ) Net loss from discontinued operations, net of tax (2) (17.2 ) (2) — (3) — (4) Equity in earnings from consolidated and unconsolidated subsidiaries, net of tax (27.4 ) 701.0 (3) 471.5 (4) Net loss (income) attributable to non-controlling interests (.5 ) — — Net (loss) income attributable to White Mountains’s common shareholders (141.2 ) 627.2 401.8 Other comprehensive (loss) income items, net of tax (4.5 ) 3.3 145.3 Comprehensive (loss) income attributable to White Mountains’s common shareholders $ (145.7 ) $ 630.5 $ 547.1 (1) These condensed unconsolidated financial statements reflect the results of operations, financial condition and cash flows for the Company. Investments in which White Mountains holds a controlling financial interest are accounted for using the equity method. Under the equity method, investments in subsidiaries are recorded on the condensed balance sheets at the amount of the Company’s ownership percentage of the subsidiary’s GAAP book value. The income from subsidiaries is reported on a net of tax basis as equity in earnings of subsidiaries on the condensed statements of operations and comprehensive income. Capital contributions to and distributions from subsidiaries are presented within investing activities on the condensed statements of cash flows. (2) During 2018, net loss from discontinued operations includes $17.3 arising from the tax contingency on the sale of Sirius Group. See Note 18 — “Commitments and Contingencies” . (3) Equity in earnings from consolidated subsidiaries for the year ended December 31, 2017 includes $577.5 of income from discontinued operations associated primarily with the dispositions of OneBeacon, Sirius Group and Tranzact. See Note 19 — “ Held for Sale and Discontinued Operations ”. (4) Equity in earnings from consolidated subsidiaries for the year ended December 31, 2016 includes $523.4 of income from discontinued operations associated primarily with the dispositions of OneBeacon, Sirius Group and Tranzact. See Note 19 — “ Held for Sale and Discontinued Operations ”. Schedules of the Registrant should be read in conjunction with the Consolidated Financial Statements and Notes. SCHEDULE II (continued) CONDENSED STATEMENTS OF CASH FLOWS (1)(2) Year Ended December 31, Millions 2018 2017 2016 Net income attributable to White Mountains’s common shareholders $ (141.2 ) $ 627.2 $ 401.8 Charges (credits) to reconcile net income to net cash from operations: Net realized and unrealized investment (gains) losses on sales of investments 57.8 (18.5 ) 1.1 Undistributed earnings from subsidiaries 27.4 (701.0 ) (471.5 ) Net loss on sale of other discontinued operations (3) 17.2 — — Other non-cash reconciling items, primarily amortization of restricted share and option awards (4) 34.6 31.1 17.9 Accumulated earnings distributed from subsidiary in cash (5) — 1,256.7 — Net change in other assets and liabilities (6) 16.7 (4.9 ) (5.6 ) Net cash provided from (used for) operations 12.5 1,190.6 (56.3 ) Cash flows from investing activities: Net change in short-term investments (7) 134.0 (24.7 ) 10.9 Purchases of investment securities (8) (321.2 ) (474.7 ) — Sales and maturities of investment securities (9) 967.6 367.1 — Issuance of debt (to) from subsidiaries (10) (55.2 ) 382.0 992.0 Repayment of debt to (from) subsidiaries (11) 31.0 — (5.0 ) (Contributions to) distributions from subsidiaries (12)(13) (258.2 ) (700.0 ) — Net cash provided from (used for) investing activities 498.0 (450.3 ) 997.9 Cash flows from financing activities: Draw down of revolving line of credit (14) — 350.0 350.0 Repayment of revolving line of credit (14) — (350.0 ) (400.0 ) Proceeds from issuances of common shares — — 3.7 Repurchases and retirement of common shares (10) (510.9 ) (714.6 ) (881.3 ) Dividends paid on common shares (3.8 ) (4.6 ) (5.4 ) Payments of restricted shares withholding taxes (10.0 ) (9.3 ) (5.8 ) Net cash used for financing activities (524.7 ) (728.5 ) (938.8 ) Net (decrease) increase in cash during the year (14.2 ) 11.8 2.8 Cash balance at beginning of year 14.9 3.1 .3 Cash balance at end of year $ .7 $ 14.9 $ 3.1 Supplemental cash flow information: interest paid $ — $ (.6 ) $ (1.2 ) (1) These condensed unconsolidated financial statements reflect the results of operations, financial condition and cash flows for the Company. Investments in which White Mountains holds a controlling financial interest are accounted for using the equity method. Under the equity method, investments in subsidiaries are recorded on the condensed balance sheets at the amount of the Company’s ownership percentage of the subsidiary’s GAAP book value. The income from subsidiaries is reported on a net of tax basis as equity in earnings of subsidiaries on the condensed statements of operations and comprehensive income. Capital contributions to and distributions from subsidiaries are presented within investing activities on the condensed statements of cash flows. (2) During 2017, Lone Tree Holdings, Ltd. (“LTH”), a wholly-owned subsidiary of the Company, merged into the Company. The merger was treated as a liquidation for financial statement purposes. As part of the liquidation, significant non-cash balances that were transferred from LTH to the Company included ending net equity of $2,810.4 , intercompany balances of $1,863.1 , investments in its subsidiaries of $964.4 , short-term investments of $13.0 and other liabilities of $14.1 . (3) During 2018, Net loss from discontinued operations includes $17.3 arising from the tax contingency on the sale of Sirius Group. See Note 18 — “Commitments and Contingencies” . (4) For the years ended December 31, 2018, 2017 and 2016 , amortization of restricted share and option awards was $ 13.0 , $ 14.8 and $ 18.5 . (5) During 2017, as part of its liquidation into the Company, LTH transferred $1,256.7 of cash, which included $1,037.6 of the proceeds from the sale of OneBeacon, to the Company. (6) For 2018, 2017 and 2016 , net change in other assets and liabilities also included a $4.0 , $11.6 , and $ 0.2 net change in payables to the Company’s subsidiaries. (7) During 2018, the Company had non-cash (purchases) and sales of short-term investments of ( $284.6 ) and $179.2 . (8) During 2018, the Company had non-cash purchases of investment securities of $603.9 , which included $170.5 of fixed maturity securities, $148.8 of common equity securities and $22.7 of other long term investments. (9) During 2018, the Company had non-cash sales of investment securities of $1,065.4 , which included $373.4 of fixed maturity securities, $490.1 of common equity securities and $22.7 of other long term investments. (10) During 2018, the Company had non-cash issuance of debt of $349.5 to its wholly-owned subsidiary, Guilford Holding, Inc. (“GHI”). Proceeds of the debt, which included $170.4 of fixed maturity securities and $179.2 of short-term investments, were transferred to GHI. During 2017, the Company had non-cash issuance of debt from LTH of $ 94.2 . During 2017 and 2016, the Company used cash proceeds received from the issuance of debt from LTH, primarily to fund repurchases of its common shares. (11) During 2018, the Company received non-cash repayments of $22.7 from its wholly-owned subsidiary, Bridge Holdings (“Bridge”) in the form of other long term investments. (12) During 2018, the Company made non-cash contributions of $350.0 by transferring intercompany debt receivable from GHI to Bridge. Also during 2018, the Company made a non-cash contribution of $1.0 by transferring intercompany debt receivable from White Mountains Investment (Luxembourg), a wholly-owned subsidiary of Bridge, to Bridge. During 2018, the Company made cash contributions of $255.3 and $2.9 to its wholly-owned subsidiaries, Bridge and White Mountains Investment, Ltd. During 2017, the Company contributed $700.0 to its wholly-owned subsidiary, GHI. (13) During 2017, the Company received non-cash distributions of $1,238.9 from LTH, prior to its liquidation. The distribution was completed through the transfer of fixed maturity investments and common equity securities. During 2016, the Company received a non-cash distribution of $80.0 from LTH. The distribution was completed through the transfer of fixed maturity investments. (14) The WTM Bank Facility was a direct obligation of the Registrant as of December 31, 2017 and was terminated on May 8, 2018. See Note 5 — “Debt”. Schedules of the Registrant should be read in conjunction with the Consolidated Financial Statements and Notes. |
SCHEDULE III SUPPLEMENTARY INSU
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | WHITE MOUNTAINS INSURANCE GROUP, LTD. SUPPLEMENTARY INSURANCE INFORMATION (1) Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K Millions Segment Deferred Acqui- sition Costs Future Policy Benefits, Losses, Claims and Loss Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premiums Earned Net Investment Income (2) Benefits, Claims, Losses and Settlement Expenses Amortization of Deferred Policy Acquisition Costs Other Operating Expenses Premiums Written Years ended: December 31, 2018 HG Global/ BAM $ 19.0 $ — $ 176.0 $ — $ 13.9 $ 16.7 $ — $ 5.3 $ .4 $ 52.9 Other Operations — — — — — — — — — — December 31, 2017 HG Global/ BAM 14.8 — 136.8 — 9.4 12.3 — 4.0 .4 63.2 Other Operations (3) — — — — 1.0 — 1.1 .1 — .9 December 31, 2016 HG Global/ BAM 10.6 — 82.9 — 5.9 9.0 — 3.4 .4 38.6 Other Operations (3) — — — — 7.5 .2 8.0 2.2 .1 6.5 (1) Schedule excludes activity related to OneBeacon and Sirius Group for the years ended December 31, 2017 and 2016. See Note 19 — “Held for Sale and Discontinued Operations” . (2) The amounts shown exclude net investment income relating to non-insurance operations of $0.0 , $43.7 and $22.9 for the twelve months ended December 31, 2018, 2017 and 2016 , respectively. (3) The Other Operations amounts shown relate to SSIE. White Mountains completed the sale of SSIE on March 7, 2017. See Note 19 — “Held for Sale and Discontinued Operations” . Schedules of the Registrant should be read in conjunction with the Consolidated Financial Statements and Notes. |
SCHEDULE IV REINSURANCE
SCHEDULE IV REINSURANCE | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SCHEDULE IV REINSURANCE | WHITE MOUNTAINS INSURANCE GROUP, LTD. REINSURANCE (1) Column A Column B Column C Column D Column E Column F $ in Millions Premiums Earned Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net Year ended: December 31, 2018 HG Global/BAM $ 13.6 $ — $ .3 $ 13.9 2.2 % Other Operations — — — — — December 31, 2017 HG Global/BAM 9.4 — — 9.4 — Other Operations (2) 1.0 — — 1.0 — December 31, 2016 HG Global/BAM 5.9 — — 5.9 — Other Operations (2) 15.2 (7.7 ) — 7.5 — (1) Schedule excludes activity related to OneBeacon and Sirius Group for the years ended December 31, 2017 and 2016. See Note 19 — “Held for Sale and Discontinued Operations” . (2) The Other Operations amounts shown relate to SSIE. White Mountains completed the sale of SSIE on March 7, 2017. See Note 19 — “Held for Sale and Discontinued Operations” . Schedules of the Registrant should be read in conjunction with the Consolidated Financial Statements and Notes. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Nature of Operations and Basis of Presentation | Basis of Presentation The Company is an exempted Bermuda limited liability company whose principal businesses are conducted through its insurance subsidiaries and other affiliates. The Company’s headquarters is located at 26 Reid Street, Hamilton, Bermuda HM 11, its principal executive office is located at 80 South Main Street, Hanover, New Hampshire 03755-2053 and its registered office is located at Clarendon House, 2 Church Street, Hamilton, Bermuda HM 11. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of White Mountains Insurance Group, Ltd. (the “Company” or the “Registrant”), its subsidiaries (collectively with the Company, “White Mountains”) and other entities required to be consolidated under GAAP. Under GAAP, the Company is required to consolidate any entity in which it holds a controlling financial interest. A controlling financial interest is usually in the form of an investment representing the majority of the subsidiary’s voting interests. However, a controlling financial interest may also arise from a financial interest in a variable interest entity (“VIE”) through arrangements that do not involve ownership of voting interests. The Company consolidates a VIE if it determines that it is the primary beneficiary. The primary beneficiary is defined as the entity who holds a variable interest that gives it both the power to direct the VIE’s activities that most significantly impact its economic performance and the obligation to absorb losses of, or the right to receive returns from, the VIE that could potentially be significant to the VIE. See Note 15 — “Variable Interest Entities” . Intercompany transactions have been eliminated in consolidation. Certain amounts in the prior period financial statements have been reclassified to conform to the current presentation. | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Reporting Segments | Reportable Segments White Mountains has determined its reportable segments based on the nature of the underlying businesses, the manner in which the Company’s subsidiaries and affiliates are organized and managed and the organization of the financial information provided to the chief operating decision maker to assess performance and make decisions regarding allocation of resources. White Mountains’s reportable segments are HG Global/BAM, NSM, MediaAlpha and Other Operations. See Note 13 — “Segment Information” . The HG Global/BAM segment consists of HG Global Ltd. and its wholly-owned subsidiaries (“HG Global”) and the consolidated results of Build America Mutual Assurance Company (“BAM”) (collectively, “HG Global/BAM”). BAM is the first and only mutual municipal bond insurance company in the United States. By insuring the timely payment of principal and interest, BAM provides market access to, and lowers interest expense for, issuers of municipal bonds used to finance essential public purposes such as schools, utilities and transportation facilities. BAM is owned by and operated for the benefit of its members, the municipalities that purchase BAM’s insurance for their debt issuances. HG Global was established to fund the startup of BAM and, through its reinsurance subsidiary HG Re Ltd. (“HG Re”), to provide up to 15% -of-par, first loss reinsurance protection for policies underwritten by BAM. For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds. HG Global, together with its subsidiaries, funded the initial capitalization of BAM through the purchase of $503.0 million of surplus notes issued by BAM, consisting of $203.0 million of Series A Notes and $300.0 million of Series B Notes (the “BAM Surplus Notes”). As of December 31, 2018 and 2017 , White Mountains owned 96.9% of HG Global's preferred equity and 88.4% of its common equity. White Mountains does not have an ownership interest in BAM. However, White Mountains is required to consolidate BAM’s results in its financial statements because BAM is a VIE for which White Mountains is the primary beneficiary. BAM’s results are attributed to non-controlling interests. The NSM segment consists of NSM Insurance HoldCo, LLC and its wholly-owned subsidiaries (collectively, “NSM”). NSM is a full-service managing general underwriting agency (“MGU”) and program administrator for specialty property and casualty insurance. The company places insurance in niche sectors such as specialty transportation, social services and real estate. On behalf of its insurance carrier partners, NSM manages all aspects of the placement process, including product development, marketing, underwriting, policy issuance and claims. NSM earns commissions based on the volume and profitability of the insurance that it places. NSM does not take insurance risk. As of December 31, 2018, White Mountains owned 95.5% of NSM. The NSM segment also includes White Mountains Catskill Holdings, Inc., the immediate holding company of NSM. See Note 2 — “Significant Transactions ". The MediaAlpha segment consists of QL Holdings LLC and its wholly-owned subsidiary QuoteLab, LLC (collectively “MediaAlpha”). MediaAlpha is a leading marketing technology company that enables the programmatic buying and selling of vertical-specific, performance-based media between advertisers (buyers of advertising inventory) and publishers (sellers of advertising inventory) through cost-per-click, cost-per-call and cost-per-lead pricing models. MediaAlpha’s media buying platform enables advertisers to create and automate data-driven bidding strategies designed to improve the efficiency and enhance the overall performance of their marketing campaigns. MediaAlpha has developed distinctive platform solutions for a range of insurance verticals, including auto, motorcycle, home, renter, health and life, and non-insurance verticals, including travel, education and personal finance. White Mountains’s Other Operations segment consists of the Company and its wholly-owned subsidiary, White Mountains Capital, Inc. (“WM Capital”), its other intermediate holding companies, its wholly-owned investment management subsidiary, White Mountains Advisors LLC (“WM Advisors”), investment assets managed by WM Advisors, its interests in PassportCard Limited (“PassportCard”) and DavidShield Life Insurance Agency (2000) Ltd. (“DavidShield”) (collectively, “PassportCard/DavidShield”) and Kudu Investment Management, LLC (“Kudu”), certain other consolidated and unconsolidated entities (“Other Operating Businesses”) and certain other strategic investments (“Strategic Investments”). The consolidated entities include Wobi Insurance Agency Ltd. (“Wobi”) and Removal Stars Ltd. (“Buzz”). White Mountains’s Other Operations segment also included its variable annuity reinsurance business, White Mountains Life Reinsurance (Bermuda) Ltd. (“Life Re Bermuda”), which completed its runoff with all of its contracts fully matured on June 30, 2016 and was liquidated in the third quarter of 2017, and its U.S.-based service provider, White Mountains Financial Services LLC, which was liquidated in the second quarter of 2017 (collectively, “WM Life Re”). | |
Discontinued Operations and Assets and Liabilities Held for Sale | Discontinued Operations and Assets and Liabilities Held for Sale On September 28, 2017, Intact Financial Corporation completed its previously announced acquisition of OneBeacon Insurance Group, Ltd. (“OneBeacon”) in an all-cash transaction for $18.10 per share (the “OneBeacon Transaction”). On July 21, 2016, White Mountains completed its sale of Tranzact Holdings, LLC (“Tranzact”) to an affiliate of Clayton, Dubilier & Rice, LLC. On April 18, 2016, White Mountains completed its sale of Sirius International Insurance Group, Ltd. (“Sirius Group”) to CM International Pte. Ltd. and CM Bermuda Limited (collectively “CMI”), the Singapore-based investment arm of China Minsheng Investment Corp., Ltd. White Mountains has presented the results of OneBeacon, Tranzact and Sirius Group as discontinued operations in the statement of operations and comprehensive income and their assets and liabilities as held for sale in the balance sheet for all periods prior to the completion of each transaction. On March 7, 2017, White Mountains completed the sale of Star & Shield Services LLC, Star & Shield Risk Management LLC, and Star & Shield Claims Services LLC (collectively “Star & Shield”) and its investment in Star & Shield Insurance Exchange (“SSIE”) surplus notes to K2 Insurance Services, LLC. White Mountains was required to consolidate SSIE in its GAAP financial statements until White Mountains completed the sale. White Mountains has presented Star & Shield’s and SSIE’s assets and liabilities as held for sale as of December 31, 2016. See Note 19 — “Held for Sale and Discontinued Operations” . As of December 31, 2017, White Mountains has classified its Guilford, Connecticut property, which consists of an office building and adjacent land, as held for sale. The property has been measured at its estimated fair value, net of disposal costs of $3.3 million . The related write down of $3.7 million | |
Cash | Cash Cash includes amounts on hand and demand deposits with banks and other financial institutions. Amounts presented in the statement of cash flows are shown net of balances acquired and sold in the purchase or sale of the Company’s consolidated subsidiaries and exclude changes in amounts of restricted cash. See Note 7 — “Derivatives” . | |
Short-term Investments | Short-Term Investments Short-term investments consist of interest-bearing money market funds and other securities, which at the time of purchase, mature or become available for use within one year. Short-term investments are carried at amortized or accreted cost, which approximated fair value as of December 31, 2018 and 2017 . | |
Investment securities | Investment Securities As of December 31, 2018 , White Mountains’s invested assets consisted of securities and other investments held for general investment purposes. White Mountains’s portfolio of fixed maturity investments, common equity securities and other long-term investments held for general investment purposes are classified as trading securities and are reported at fair value as of the balance sheet date. Changes in net unrealized investment gains (losses) are reported pre-tax in revenues. Realized investment gains (losses) are accounted for using the specific identification method and are reported pre-tax in revenues. Premiums and discounts on all fixed maturity investments are amortized and accreted to income over the anticipated life of the investment. White Mountains’s invested assets that are measured at fair value include fixed maturity investments, common equity securities and other long-term investments, including unconsolidated entities, private equity funds and hedge funds. In determining its estimates of fair value, White Mountains uses a variety of valuation approaches and inputs. Whenever possible, White Mountains estimates fair value using valuation methods that maximize the use of quoted prices and other observable inputs. Fair value measurements are categorized into a hierarchy that distinguishes between inputs based on market data from independent sources (“observable inputs”) and a reporting entity’s internal assumptions based upon the best information available when external market data is limited or unavailable (“unobservable inputs”). Quoted prices in active markets for identical assets have the highest priority (“Level 1”), followed by observable inputs other than quoted prices including prices for similar but not identical assets or liabilities (“Level 2”), and unobservable inputs, including the reporting entity’s estimates of the assumptions that market participants would use, having the lowest priority (“Level 3”). White Mountains uses brokers and outside pricing services to assist in determining fair values. The outside pricing services White Mountains uses have indicated that they will only provide prices where observable inputs are available. As of December 31, 2018, approximately 87% of the investment portfolio recorded at fair value as Level 1 or Level 2 measurements. Level 1 Measurements Investments valued using Level 1 inputs include fixed maturity investments, primarily investments in U.S. Treasuries and short-term investments, which include U.S. Treasury Bills and common equity securities. For investments in active markets, White Mountains uses the quoted market prices provided by outside pricing services to determine fair value. Level 2 Measurements Investments valued using Level 2 inputs include fixed maturity investments, which have been disaggregated into classes, including debt securities issued by corporations, mortgage and asset-backed securities, municipal obligations, and foreign government, agency and provincial obligations. Investments valued using Level 2 inputs also include certain passive exchange traded funds (“ETFs”) that track U.S. stock indices such as the S&P 500 but are traded on foreign exchanges, which management values using the fund manager’s published NAV to account for the difference in market close times. In circumstances where quoted market prices are unavailable or are not considered reasonable, White Mountains estimates the fair value using industry standard pricing methodologies and observable inputs such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, credit ratings, prepayment speeds, reference data including research publications and other relevant inputs. Given that many fixed maturity investments do not trade on a daily basis, the outside pricing services evaluate a wide range of fixed maturity investments by regularly drawing parallels from recent trades and quotes of comparable securities with similar features. The characteristics used to identify comparable fixed maturity investments vary by asset type and take into account market convention. White Mountains’s process to assess the reasonableness of the market prices obtained from the outside pricing sources covers substantially all of its fixed maturity investments and includes, but is not limited to, the evaluation of pricing methodologies and a review of the pricing services’ quality control procedures on at least an annual basis, a comparison of its invested asset prices obtained from alternate independent pricing vendors on at least a semi-annual basis, monthly analytical reviews of certain prices and a review of the underlying assumptions utilized by the pricing services for select measurements on an ad hoc basis throughout the year. White Mountains also performs back-testing of selected sales activity to determine whether there are any significant differences between the market price used to value the security prior to sale and the actual sale price on an ad-hoc basis throughout the year. Prices provided by the pricing services that vary by more than 5% and $0.5 million from the expected price based on these assessment procedures are considered outliers, as are prices that have not changed from period to period and prices that have trended unusually compared to market conditions. In circumstances where the results of White Mountains’s review process does not appear to support the market price provided by the pricing services, White Mountains challenges the vendor provided price. If White Mountains cannot gain satisfactory evidence to support the challenged price, White Mountains will rely upon its own pricing methodologies to estimate the fair value of the security in question. The valuation process described above is generally applicable to all of White Mountains’s fixed maturity investments. The techniques and inputs specific to asset classes within White Mountains’s fixed maturity investments for Level 2 securities that use observable inputs are as follows: Debt Securities Issued by Corporations The fair value of debt securities issued by corporations is determined from a pricing evaluation technique that uses information from market sources and integrates relative credit information, observed market movements, and sector news. Key inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including sector, coupon, credit quality ratings, duration, credit enhancements, early redemption features and market research publications. Mortgage and Asset-Backed Securities The fair value of mortgage and asset-backed securities is determined from a pricing evaluation technique that uses information from market sources and leveraging similar securities. Key inputs include benchmark yields, reported trades, underlying tranche cash flow data, collateral performance, plus new issue data, as well as broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including issuer, vintage, loan type, collateral attributes, prepayment speeds, default rates, recovery rates, cash flow stress testing, credit quality ratings and market research publications. Municipal Obligations The fair value of municipal obligations is determined from a pricing evaluation technique that uses information from market makers, brokers-dealers, buy-side firms, and analysts along with general market information. Key inputs include benchmark yields, reported trades, issuer financial statements, material event notices and new issue data, as well as broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including type, coupon, credit quality ratings, duration, credit enhancements, geographic location and market research publications. Foreign Government, Agency and Provincial Obligations The fair value of foreign government, agency and provincial obligations is determined from a pricing evaluation technique that uses feeds from data sources in each respective country, including active market makers and inter-dealer brokers. Key inputs include benchmark yields, reported trades, broker-dealer quotes, two-sided markets, benchmark securities, bids, offers, local exchange prices, foreign exchange rates and reference data including coupon, credit quality ratings, duration and market research publications. Level 3 Measurements Fair value estimates for investments that trade infrequently and have few or no observable market prices are classified as Level 3 measurements. Investments valued using Level 3 fair value estimates are based upon unobservable inputs and include investments in certain fixed maturity investments, equity securities and other long-term investments where quoted market prices are unavailable or are not considered reasonable. Level 3 valuations are generated from techniques that use assumptions not observable in the market. These unobservable assumptions reflect White Mountains’s assumptions that market participants would use in valuing the investment. Generally, certain securities may start out as Level 3 when they are originally issued but as observable inputs become available in the market, they may be reclassified to Level 2. Transfers between levels are based on investments held as of the beginning of the period. | |
Derivatives | Derivatives Financial Instruments White Mountains holds from time to time a variety of derivative financial instruments for risk management purposes. White Mountains recognizes all derivatives as either other assets or other liabilities, aside from the foreign currency forward contracts which are recognized within other long-term investments, measured at fair value, in the consolidated balance sheets. Changes in the fair value of derivative instruments are recognized in current period pre-tax income. | |
Warrants | From time to time, White Mountains holds warrants that it has received in the restructuring of certain of its common equity securities and fixed maturity investments. White Mountains accounts for its investments in warrants as derivatives. | |
Derivatives - Variable annuity reinsurance | Variable Annuity Reinsurance In 2016, White Mountains completed the run-off of WM Life Re as all of its contracts matured as of June 30, 2016. WM Life Re entered into agreements to reinsure death and living benefit guarantees associated with certain variable annuities in Japan. The accounting for benefit guarantees differs depending on whether or not the guarantee is classified as a derivative or an insurance liability. The liability for guaranteed minimum death benefits was classified as a derivative and measured at fair value. The liability for guaranteed minimum accumulation benefits was classified as an insurance liability, and was measured using assumptions for interest rates, equity markets, foreign exchange rates and market volatilities at the valuation date, as well as annuitant-related actuarial assumptions, including surrender and mortality rates. WM Life Re entered into derivative contracts that were designed to economically hedge against changes in the fair value of living and death benefit liabilities associated with its variable annuity reinsurance arrangements. All WM Life Re’s derivative financial instruments were recorded as assets or liabilities at fair value on the balance sheet within other assets. These derivative financial instruments did not meet the criteria for hedge accounting treatment, and accordingly, changes in fair value were recognized in the appropriate period as gains or losses in the income statement within other revenues. | |
Receivables | Receivables BAM’s receivables consist primarily of premiums receivable from customers for municipal bond insurance policies. NSM’s receivables consist of insurance premiums receivable from customers and commissions receivable from insurance carriers, net of a provision for amounts estimated to be uncollectible. MediaAlpha receivables consist of advertising fee receivables from publishers and advertisers. | |
Incentive Compensation | Incentive Compensation White Mountains’s Long-Term Incentive Plan (the “WTM Incentive Plan”) provides for grants of various types of share-based and non-share-based incentive awards to key employees of White Mountains. Non-share based awards are recognized over the related service periods based on management’s best estimate of the amounts at which the awards are expected to be paid. Share-based compensation which is typically settled in cash, such as performance shares or performance units, is classified as a liability-type award. The compensation cost for liability-classified awards is measured initially at the grant date fair value and remeasured each reporting period until settlement. The compensation cost for equity-classified awards expected to be settled in shares, such as options and restricted shares, is measured at the original grant date fair value of the award. The compensation cost for all awards is recognized for the vested portion of the awards over the related service periods. See Note 10 — “Employee Share-Based Incentive Compensation Plans”. | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the amount paid to acquire subsidiaries over the fair value of identifiable net assets at the date of acquisition. Other intangible assets consist primarily of trademarks, URL and online names, customer relationships, information technology and insurance licenses. Goodwill is not amortized, but rather is evaluated for impairment on an annual basis, or whenever indications of potential impairment exist. In the absence of any indications of potential impairment, the evaluation of goodwill is performed during the fourth quarter of each year. White Mountains initially evaluates goodwill using a qualitative approach (step zero) to determine whether it is more likely than not that the fair value of goodwill is greater than its carrying value. If the results of the qualitative evaluation indicate that it is more likely than not that the carrying value of goodwill exceeds its fair value, White Mountains performs the two-step quantitative test for impairment. Other intangible assets with finite lives are measured at their acquisition date fair values, are amortized over their economic lives and presented net of accumulated amortization on the balance sheet. Other intangible assets with finite lives are evaluated for impairment at least annually and when events or changes in circumstances indicate that it is more likely than not that the asset is impaired. A significant portion of the goodwill and other identifiable intangible assets at December 31, 2018 arose from White Mountains’s acquisition of NSM in May 2018 and NSM’s subsequent acquisitions of Fresh Insurance and KBK. White Mountains believes that all of the goodwill and intangible assets recorded in respect of these acquisitions is fully recoverable. Because of the timing of these acquisitions, all of which are still within the one-year measurement period following the acquisition date, these amounts have not yet been subject to White Mountains’s annual review for potential impairment. White Mountains evaluated the recoverability of goodwill and other intangible assets other than the portion associated with the NSM acquisitions and did not recognize any impairment losses for any of the years ended December 31, 2018, 2017 and 2016. See Note 4 — “Goodwill and Other Intangible Assets” . | |
Municipal Bond Guarantee Insurance | Municipal Bond Guarantee Insurance All of the contracts issued by BAM are accounted for as insurance contracts under ASC 944-605, Financial Guarantee Insurance Contracts. Premiums are generally received upfront and an unearned premium revenue liability, equal to the amount of the premium received, is established at contract inception. Installment premiums are measured at the present value of contractual premiums, discounted at the risk free rate, which is set at the inception of the insurance contract. Premium revenues are recognized in revenue over the period of the contracts in proportion to the amount of insurance protection provided using a constant rate. The constant rate is calculated based on the relationship between the par outstanding in a given reporting period compared with the sum of each of the par amounts outstanding for all periods. Deferred acquisition costs represent commissions, premium taxes, excise taxes and other costs which are directly attributable to and vary with the production of business. These costs are deferred and amortized to the extent they relate to successful contract acquisitions over the applicable premium recognition period as acquisition expenses. Deferred acquisition costs are limited to the amount expected to be recovered from future earned premiums and anticipated investment income. BAM’s obligation for outstanding contracts consists of the unearned premium reserve and any loss reserves. Loss reserves are recorded only to the extent that the present value of the expected amount of any losses to be paid, net of any expected recoveries, exceeds the associated unearned premium reserve. As of December 31, 2018 and 2017, BAM did not have any loss or LAE reserves. | |
Revenue Recognition | Revenue Recognition MediaAlpha recognizes advertising and publishing fee revenues based on the contractual amount of the fees, adjusted for any amounts expected to be refunded or uncollectible, when it has satisfied its contractual performance obligations, which is generally at the time each transaction is executed. For transactions where MediaAlpha acts as the principal, such as the Open exchange, revenue amounts are reported gross. For transactions where MediaAlpha acts as an agent facilitating transactions between third parties, revenue amounts are reported at the net fee billed. Agent and commission revenues are measured based on the contractual rates with insurance carriers, net of any amounts expected to be uncollectible and any amounts associated with expected policy cancellations adjustments, and are recognized when contractual performance obligations have been fulfilled. | |
Cost of Sales and Broker Commission Expense | Cost of Sales and Broker Commission Expense MediaAlpha’s cost of sales consists primarily of revenue sharing payments to publisher partners and traffic acquisition costs to top tier search engines. Cost of sales are measured based on contract terms and recognized when the related revenue transactions are executed. NSM’s broker commission expense consists of commissions paid to sub-agents and brokers. Broker commission expense is measured in accordance with contractual terms and recognized when incurred, which is generally at the policy issuance date. Other Operations’s cost of sales consists of salaries and related expenses, professional services and marketing and advertising expenses directly related to sales generation. These expenses are recognized as incurred. | |
Federal and foreign income taxes | Federal and Foreign Income Taxes A number of White Mountains’s subsidiaries file consolidated tax returns in the United States. Income earned or losses generated by companies outside the United States are generally subject to an overall effective tax rate lower than that imposed by the United States. Deferred tax assets and liabilities are recorded when a difference between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for tax purposes exists, and for other temporary differences. The deferred tax asset or liability is recorded based on tax rates expected to be in effect when the difference reverses. The deferred tax asset is recognized when it is more likely than not that it will be realized. | |
Foreign currency exchange | Foreign Currency Exchange The functional currency for White Mountains’s non-U.S. based subsidiaries are measured, in most instances, using functional currencies other than the U.S. dollar. Net foreign exchange gains and losses arising from the translation of functional currencies are generally reported in shareholders’ equity, in accumulated other comprehensive income or loss. White Mountains also invests in securities denominated in foreign currencies. Assets and liabilities recorded in these foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, and revenues and expenses are converted using the weighted average exchange rates for the period. | |
Noncontrolling Interest | Non-controlling Interests Non-controlling interests consist of the ownership interests of non-controlling shareholders in consolidated subsidiaries, and are presented separately on the balance sheet. The portion of comprehensive income attributable to non-controlling interests is presented net of related income taxes in the statement of operations and comprehensive income. See Note 11 — “Common Shareholders’ Equity and Non-controlling Interests” . | |
Recent Accounting Pronouncements | Recently Adopted Changes in Accounting Principles Revenue Recognition On January 1, 2018, White Mountains adopted ASU 2014-09, Revenue from Contracts with Customers (ASC 606), which modifies the guidance for revenue recognition. Under ASU 2014-09, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled once it fulfills its performance obligations under the terms of its contract with the customer. The scope of the new guidance includes agent commissions and other non-insurance revenues. Adoption of ASU 2014-09 did not have any impact on White Mountains's financial statements. Share-Based Compensation On January 1, 2018, White Mountains adopted ASU 2017-09, Stock Compensation: Scope of Modification Accounting (ASC 718), which narrows the scope of transactions subject to modification accounting to changes in the terms of an award that result in a change in the award’s fair value, vesting conditions or classification. Adoption of ASU 2017-09 did not have any impact on White Mountains’s financial statements. On January 1, 2017, White Mountains adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (ASC 718) which simplifies certain aspects of the accounting for share-based compensation. The new guidance provides an accounting policy election to account for forfeitures by either applying an assumption, as required under existing guidance, or by recognizing forfeitures when they actually occur. At adoption, White Mountains did not change its accounting policy for forfeitures, which is to apply an assumed forfeiture rate. The new guidance also changed the threshold for partial cash settlement to settle statutory withholding requirements for equity classified awards, increasing the threshold up to the maximum statutory tax rate. As a result of adoption, White Mountains reported $8.4 million and $9.2 million of statutory withholding tax payments made in connection with the settlement of restricted shares as financing cash flows for the year ended December 31, 2018 and 2017. Such payments were classified as operating cash flows prior to adoption. In addition, the new guidance changed the treatment for excess tax benefits that arise from the difference between the deduction for tax purposes and the compensation costs recognized for financial reporting. Under the new guidance, a reporting entity recognizes excess tax benefits or expense in current period earnings. Business Combinations On January 1, 2018, White Mountains adopted ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (ASC 805), which clarifies the definition of a business and affects the determination of whether acquisitions or disposals are accounted for as assets or as a business. Under the new guidance, when substantially all of the fair value of the assets is concentrated in a single identifiable asset or group of similar assets, it is not a business. Adoption of ASU 2017-01 did not have any impact on White Mountains’s financial statements. Cash Flow Statement On January 1, 2018, White Mountains adopted ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (ASC 230), which addresses the classification and presentation of certain items, including debt prepayment and extinguishment costs, contingent consideration payments made after a business combination and distributions received from equity method investees, for which there was diversity in practice prior to the issuance of ASU 2016-15. Also on January 1, 2018, White Mountains adopted ASU 2016-18, Statement of Cash Flows: Restricted Cash (ASC 230), which modifies the guidance for the treatment of restricted cash amounts in the cash flow statement. The new guidance requires restricted cash to be included in the reconciliation of beginning and end-of-period amounts presented on the statement of cash flows and requires a description of the nature of the changes in restricted cash during the periods presented. Adoption of ASU 2016-15 and ASU 2016-18 did not have any impact on White Mountains's statement of cash flows. Financial Instruments - Recognition and Measurement On January 1, 2018, White Mountains adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASC 825-10), which modifies the guidance for financial instruments, including investments in equity securities. Under the new guidance, all equity securities with readily determinable fair values are required to be measured at fair value with changes therein recognized through current period earnings. In addition, the new ASU requires a qualitative assessment for equity securities without readily determinable fair values to identify impairment, and for impaired equity securities to be measured at fair value. White Mountains measures its portfolio of investment securities at fair value with changes therein recognized through current period earnings and, accordingly, adoption of ASU 2016-01 did not have any impact on White Mountains's financial statements. Recently Issued Accounting Pronouncements Premium Amortization on Callable Debt Securities In March 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities (ASC 310-20), which changes the amortization period for certain purchased callable debt securities. Under the new guidance, for investments in callable debt securities held at a premium, the premium will be amortized over the period to the earliest call date. The new guidance does not change the amortization period for callable debt securities held at a discount. The new guidance is effective for annual periods beginning after December 15, 2018. White Mountains does not expect adoption to have any effect on its financial statements. Goodwill In January 2017, the FASB issue ASU 2017-04, Simplifying the Test for Goodwill Impairment (ASC 350), which changes the guidance on goodwill impairment testing. Under the new guidance, the qualitative assessment of the recoverability of goodwill remains the same. However, the second step required under the existing guidance has been eliminated. Goodwill is considered impaired if the carrying value exceeds the estimated fair value. The new guidance is effective for fiscal years beginning after December 15, 2019. Credit Losses In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (ASC 326), which establishes new guidance for the recognition of credit losses for financial assets measured at amortized cost. The new ASU requires reporting entities to estimate the credit losses expected over the life of a credit exposure using historical information, current information and reasonable and supportable forecasts that affect the collectability of the financial asset. This differs from current GAAP, which delays recognition until it is probable a loss has been incurred. The new guidance is expected to accelerate recognition of credit losses. The types of assets within the scope of the new guidance include loans and trade receivables such as premium receivables and reinsurance recoverables on paid losses. ASU 2016-13 is effective for annual periods beginning after January 1, 2020, including interim periods. White Mountains measures its portfolio of investment securities at fair value with changes therein recognized through current period earnings and accordingly does not expect adoption to have any effect on its financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842). The new guidance requires lessees to recognize lease assets and liabilities on the balance sheet for both operating and financing leases, with the exception of leases with an original term of 12 months or less. Under existing guidance recognition of lease assets and liabilities is not required for operating leases. The lease liabilities will be measured initially based on the present value of the lease payments. The lease asset will be measured as the sum of the lease liabilities, adjusted for initial direct costs. White Mountains will be adopting the new guidance effective January 1, 2019, and will use the optional transition method that permits prospective adoption with recognition of a cumulative effect adjustment to the opening balance of retained earnings. White Mountains will not apply the new guidance to comparative periods presented in the year of adoption. White Mountains plans to elect available practical expedients permitted under ASC 842, which will allow White Mountains to carry forward its historical lease classification and not reassess leases for the definition of a lease under the new guidance. White Mountains has estimated that it will recognize lease right-of-use assets and lease liabilities of approximately $24.5 million . White Mountains does not expect the cumulative effect adjustment to opening retained earnings to be material. Financial Instruments - Recognition and Measurement In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASC 825-10). The new ASU modifies the guidance for financial instruments, including investments in equity securities. Under the new guidance, all equity securities with readily determinable fair values are required to be measured at fair value with changes therein recognized through current period earnings. In addition, the new ASU requires a qualitative assessment for equity securities without readily determinable fair values to identify impairment, and for impaired equity securities to be measured at fair value. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. White Mountains measures its portfolio of investment securities at fair value with changes therein recognized through current period earnings and accordingly, does not expect adoption to have any effect on its financial statements. |
Significant Transactions Signif
Significant Transactions Significant Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Transactions [Abstract] | |
Reconciliation to the increase in book value | The following table presents a reconciliation of the gain reported in discontinued operations to the impact to White Mountains’s book value: Millions Year ended December 31, 2016 Gain from sale of Tranzact reported in discontinued operations $ 51.9 Add back reclassification from continuing operations for the release of a tax valuation allowance 30.2 Increase to White Mountains’s book value from sale of Tranzact $ 82.1 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Pre-tax net investment income | The following table presents pre-tax net investment income for 2018, 2017 and 2016 : Year Ended December 31, Millions 2018 2017 2016 Fixed maturity investments $ 35.1 $ 44.9 $ 28.5 Short-term investments 8.0 1.8 .9 Common equity securities 15.1 10.6 4.0 Other long-term investments 3.8 1.2 1.1 Total investment income 62.0 58.5 34.5 Third-party investment expenses (3.0 ) (2.5 ) (2.4 ) Net investment income, pre-tax $ 59.0 $ 56.0 $ 32.1 |
Net Realized and Unrealized Investment Gains and Losses | The following table presents net realized and unrealized investment gains (losses) for 2018, 2017 and 2016: Year Ended December 31, Millions 2018 2017 2016 Net realized investment (losses) gains, pre-tax $ (12.9 ) $ 24.1 $ 270.0 Net unrealized investment (losses) gains, pre-tax (95.4 ) 109.2 (297.4 ) Net realized and unrealized investment (losses) gains, pre-tax (108.3 ) 133.3 (27.4 ) Income tax benefit (expense) attributable to net realized and unrealized investment (losses) gains 18.2 (12.9 ) 2.7 Net realized and unrealized investment (losses) gains, after-tax $ (90.1 ) $ 120.4 $ (24.7 ) |
Realized Gain (Loss) on Investments | The following tables present net realized investment gains (losses) for 2018, 2017 and 2016 : Year Ended December 31, 2018 Millions Net Realized (Losses) Gains Net Foreign Total Net Realized (Losses) Gains Reflected in Earnings Fixed maturity investments $ (29.8 ) $ 18.2 $ (11.6 ) Short-term investments (.8 ) — (.8 ) Common equity securities 6.6 — 6.6 Other long-term investments .1 (7.2 ) (7.1 ) Net realized investment (losses) gains, pre-tax (23.9 ) 11.0 (12.9 ) Income tax benefit attributable to net realized investment (losses) gains 9.1 — 9.1 Net realized investment (losses) gains, after-tax $ (14.8 ) $ 11.0 $ (3.8 ) Year Ended December 31, 2017 Millions Net Realized (Losses) Gains Net Foreign Total Net Realized Gains (Losses) Reflected in Earnings Fixed maturity investments $ (1.6 ) $ 4.1 $ 2.5 Short-term investments (.3 ) — (.3 ) Common equity securities 18.1 6.0 24.1 Other long-term investments 19.1 (21.3 ) (2.2 ) Net realized investment gains (losses), pre-tax 35.3 (11.2 ) 24.1 Income tax expense attributable to net realized investment gains (losses) (8.9 ) — (8.9 ) Net realized investment gains (losses), after-tax $ 26.4 $ (11.2 ) $ 15.2 Year Ended December 31, 2016 Millions Net Realized (Losses) Gains Net Foreign Total Net Realized (Losses) Gains Reflected in Earnings Fixed maturity investments $ (1.9 ) $ .3 $ (1.6 ) Short-term investments .4 — .4 Common equity securities 268.5 — 268.5 Other long-term investments 2.7 — 2.7 Net realized investment gains, pre-tax 269.7 .3 270.0 Income tax expense attributable to net realized investment gains (45.6 ) — (45.6 ) Net realized investment gains, after-tax $ 224.1 $ .3 $ 224.4 |
Unrealized Gain (Loss) on Investments | The following tables present net unrealized investment gains (losses) and changes in the carrying value of investments measured at fair value for the years ended 2018, 2017 and 2016: Year Ended December 31, 2018 Millions Net Unrealized (Losses) Gains Net Foreign Exchange (Losses) Gains Total Net Unrealized (Losses) Gains Reflected in Earnings Fixed maturity investments $ (8.3 ) $ (14.8 ) $ (23.1 ) Common equity securities (105.5 ) — (105.5 ) Other long-term investments 30.2 3.0 33.2 Net unrealized investment losses, pre-tax (83.6 ) (11.8 ) (95.4 ) Income tax benefit attributable to net unrealized investment losses 9.1 — 9.1 Net unrealized investment losses, after-tax $ (74.5 ) $ (11.8 ) $ (86.3 ) Year Ended December 31, 2017 Millions Net Unrealized Gains (Losses) Net Foreign Total Net Unrealized Gains (Losses) Reflected in Earnings Fixed maturity investments $ 13.8 $ 12.7 $ 26.5 Common equity securities 99.3 — 99.3 Other long-term investments (15.6 ) (1.0 ) (16.6 ) Net unrealized investment gains, pre-tax 97.5 11.7 109.2 Income tax expense attributable to net unrealized investment gains (4.0 ) — (4.0 ) Net unrealized investment gains, after-tax $ 93.5 $ 11.7 $ 105.2 Year Ended December 31, 2016 Millions Net Unrealized Losses Net Foreign Exchange Gains (Losses) Total Net Unrealized Losses Reflected in Earnings Fixed maturity investments $ (14.6 ) $ 2.1 $ (12.5 ) Common equity securities (257.4 ) (3.3 ) (260.7 ) Other long-term investments (22.7 ) (1.5 ) (24.2 ) Net unrealized investment losses, pre-tax (294.7 ) (2.7 ) (297.4 ) Income tax benefit attributable to net unrealized investment losses 48.3 — 48.3 Net unrealized investment losses, after-tax $ (246.4 ) $ (2.7 ) $ (249.1 ) |
Net unrealized investment gains (losses) for Level 3 investments | The following table presents total gains (losses) included in earnings attributable to unrealized investment gains (losses) for Level 3 investments for the years ended December 31, 2018, 2017 and 2016 : Year Ended December 31, Millions 2018 2017 2016 Fixed maturity investments $ — $ — $ 0.1 Other long-term investments 22.6 (15.4 ) (14.3 ) Total net unrealized investment gains (losses), pre-tax - Level 3 investments $ 22.6 $ (15.4 ) $ (14.2 ) |
Investment holdings, fixed maturity investments | The following tables present the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency gains, and carrying values of White Mountains’s fixed maturity investments as of December 31, 2018 and 2017 . December 31, 2018 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Gains Carrying U.S. Government and agency obligations $ 154.0 $ .1 $ (.9 ) $ — $ 153.2 Debt securities issued by corporations 519.0 1.0 (9.5 ) — 510.5 Municipal obligations 279.0 2.4 (1.1 ) — 280.3 Mortgage and asset-backed securities 136.1 .1 (2.7 ) — 133.5 Total fixed maturity investments $ 1,088.1 $ 3.6 $ (14.2 ) $ — $ 1,077.5 December 31, 2017 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Gains Carrying Value U.S. Government and agency obligations $ 297.8 $ — $ (1.3 ) $ — $ 296.5 Debt securities issued by corporations 867.6 2.9 (4.3 ) 14.7 880.9 Mortgage and asset-backed securities 697.2 1.6 (4.1 ) — 694.7 Municipal obligations 252.0 3.7 (.8 ) — 254.9 Foreign government, agency and provincial obligations 2.6 — — .1 2.7 Total fixed maturity investments $ 2,117.2 $ 8.2 $ (10.5 ) $ 14.8 $ 2,129.7 |
Schedule of contractual maturities of fixed maturities | The following table presents the cost or amortized cost and carrying value of White Mountains’s fixed maturity investments by contractual maturity as of December 31, 2018 . Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. December 31, 2018 Millions Cost or Amortized Cost Carrying Value Due in one year or less $ 84.8 $ 84.4 Due after one year through five years 500.8 496.2 Due after five years through ten years 222.4 218.0 Due after ten years 144.0 145.4 Mortgage and asset-backed securities 136.1 133.5 Total $ 1,088.1 $ 1,077.5 |
Investment holdings, equity securities, convertible fixed maturities and other long-term investments | The following tables present the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency losses, and carrying values of White Mountains’s common equity securities and other long-term investments as of December 31, 2018 and 2017 : December 31, 2018 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Losses Carrying Value Common equity securities $ 904.7 $ 51.0 $ (30.1 ) $ — $ 925.6 Other long-term investments $ 330.3 $ 52.2 $ (54.9 ) $ (2.0 ) $ 325.6 December 31, 2017 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Losses Carrying Value Common equity securities $ 739.7 $ 129.4 $ (3.0 ) $ — $ 866.1 Other long-term investments $ 246.6 $ 6.8 $ (39.7 ) $ (4.9 ) $ 208.8 |
Fair value measurements by level, investment securities | The following tables present White Mountains’s fair value measurements for investments as of December 31, 2018 and 2017 by level. The major security types were based on the legal form of the securities. White Mountains has disaggregated its fixed maturity investments based on the issuing entity type, which impacts credit quality, with debt securities issued by U.S. government entities carrying minimal credit risk, while the credit and other risks associated with other issuers, such as corporations, foreign governments, municipalities or entities issuing mortgage and asset-backed securities vary depending on the nature of the issuing entity type. White Mountains further disaggregates debt securities issued by corporations and common equity securities by industry sector because investors often reference commonly used benchmarks and their subsectors to monitor risk and performance. Accordingly, White Mountains has further disaggregated these asset classes into subclasses based on the similar sectors and industry classifications it uses to evaluate investment risk and performance against commonly used benchmarks, such as the Bloomberg Barclays U.S. Intermediate Aggregate and S&P 500 indices. December 31, 2018 Millions Fair Value Level 1 Level 2 Level 3 Fixed maturity investments: U.S. Government and agency obligations $ 153.2 $ 153.2 $ — $ — Debt securities issued by corporations: Financials 143.4 — 143.4 — Consumer 68.5 — 68.5 — Technology 60.5 — 60.5 — Energy 57.6 — 57.6 — Healthcare 55.0 — 55.0 — Industrial 47.6 — 47.6 — Communications 31.8 — 31.8 — Materials 26.3 — 26.3 — Utilities 19.8 — 19.8 — Total debt securities issued by corporations 510.5 — 510.5 — Mortgage and asset-backed securities 133.5 — 133.5 — Municipal obligations 280.3 — 280.3 — Total fixed maturity investments 1,077.5 153.2 924.3 — Short-term investments (1) 214.2 204.4 9.8 — Common equity securities: Exchange traded funds (2) 675.3 617.0 58.3 — Healthcare 14.0 14.0 — — Financials 13.5 13.5 — — Communications 12.7 12.7 — — Industrial 11.4 11.4 — — Technology 7.4 7.4 — — Consumer 6.2 6.2 — — Energy 4.1 4.1 — — Materials 3.1 3.1 — — Other (3) 177.9 — 177.9 — Total common equity securities 925.6 689.4 236.2 — Other long-term investments 138.7 — — 138.7 Other long-term investments — NAV (4) 186.9 — — — Total investments $ 2,542.9 $ 1,047.0 $ 1,170.3 $ 138.7 (1) Short-term investments are measured at amortized cost, which approximates fair value. (2) ETFs traded on foreign exchanges are priced using the fund's published NAV to account for the difference in market close times and are therefore designated a level 2 measurement. (3) Consists of two investments in unit trusts that primarily invest in international equities. (4) Consists of unconsolidated entities, private equity funds and one hedge fund for which fair value is measured at NAV using the practical expedient. Investments for which fair value is measured at NAV are not classified within the fair value hierarchy. December 31, 2017 Millions Fair Value Level 1 Level 2 Level 3 Fixed maturity investments: U.S. Government and agency obligations $ 296.5 $ 296.5 $ — $ — Debt securities issued by corporations: Consumer 185.1 — 185.1 — Communications 127.8 — 127.8 — Financials 114.8 — 114.8 — Utilities 108.9 — 108.9 — Materials 95.5 — 95.5 — Healthcare 94.3 — 94.3 — Technology 80.5 — 80.5 — Energy 48.1 — 48.1 — Industrial 25.9 — 25.9 — Total debt securities issued by corporations 880.9 — 880.9 — Mortgage and asset-backed securities 694.7 — 694.7 — Municipal obligations 254.9 — 254.9 — Foreign government, agency and provincial obligations 2.7 — 2.7 — Total fixed maturity investments 2,129.7 296.5 1,833.2 — Short-term investments (1) 176.1 151.0 25.1 — Common equity securities: Exchange traded funds (2) 569.7 508.1 61.6 — Healthcare 17.1 17.1 — — Financials 16.3 16.3 — — Technology 15.1 15.1 — — Industrial 11.9 11.9 — — Communications 10.9 10.9 — — Consumer 10.7 10.7 — — Energy 3.8 3.8 — — Other (3) 210.6 — 210.6 — Total common equity securities 866.1 593.9 272.2 — Other long-term investments (4) 77.2 — — 77.2 Other long-term investments — NAV (5) 135.3 — — — Total investments $ 3,384.4 $ 1,041.4 $ 2,130.5 $ 77.2 (1) Short-term investments are measured at amortized cost, which approximates fair value. (2) ETFs traded on foreign exchanges are priced using the fund’s published NAV to account for the difference in market close times and are therefore designated a level 2 measurement. (3) Consists of two investments in unit trusts that primarily invests in international equities. (4) Excludes carrying value of $(3.7) related to foreign currency forward contracts. (5) Consists of unconsolidated entities, private equity funds and one hedge funds for which fair value is measured at NAV using the practical expedient. Investments for which fair value is measured at NAV are not classified within the fair value hierarchy. |
Debt securities issued by corporations, credit ratings | The following table presents the ratings of debt securities issued by corporations held in White Mountains’s investment portfolio as of December 31, 2018 and 2017: Fair Value at December 31, Millions 2018 2017 AAA $ 8.9 $ 1.6 AA 88.7 42.6 A 270.5 192.5 BBB 142.4 465.2 BB — 161.7 B — 17.3 Debt securities issued by corporations (1) $ 510.5 $ 880.9 (1) Credit ratings are based upon issuer credit ratings provided by Standard & Poor’s Financial Services LLC (“Standard & Poor’s”), or if unrated by Standard & Poor’s, long term obligation ratings provided by Moody's Investor Service, Inc. |
Mortgage-backed, asset-backed securities | The following table presents the fair value of White Mountains’s mortgage and asset-backed securities as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Millions Fair Value Level 2 Level 3 Fair Value Level 2 Level 3 Mortgage-backed securities: Agency: FNMA $ 53.6 $ 53.6 $ — $ 84.5 $ 84.5 $ — FHLMC 38.1 38.1 — 62.0 62.0 — GNMA 23.7 23.7 — 46.3 46.3 — Total agency (1) 115.4 115.4 — 192.8 192.8 — Non-agency: Commercial — — — 70.5 70.5 — Total non-agency — — — 70.5 70.5 — Total mortgage-backed securities 115.4 115.4 — 263.3 263.3 — Other asset-backed securities: Vehicle receivables 9.2 9.2 — 142.4 142.4 — Credit card receivables 8.9 8.9 — 206.0 206.0 — Other — — — 83.0 83.0 — Total other asset-backed securities 18.1 18.1 — 431.4 431.4 — Total mortgage and asset-backed securities $ 133.5 $ 133.5 $ — $ 694.7 $ 694.7 $ — (1) Represents publicly traded mortgage-backed securities which carry the full faith and credit guaranty of the U.S. Government (i.e., GNMA) or are guaranteed by a government sponsored entity (i.e., FNMA, FHLMC). |
Other Investments Not Readily Marketable | The following table presents the carrying values of White Mountains’s other long-term investments as of December 31, 2018 and 2017: Carrying Value at December 31, Millions 2018 2017 PassportCard/DavidShield (1) $ 75.0 $ 21.0 Kudu 30.7 — Other unconsolidated entities (1)(2) 60.0 62.2 Total unconsolidated entities (1)(2) 165.7 83.2 Private equity funds and hedge funds 146.1 125.3 Foreign currency forward contracts — (3.7 ) Other 13.8 4.0 Total other long-term investments $ 325.6 $ 208.8 (1) See Fair Value Measurements by Level table. (2) Includes White Mountains's non-controlling interests in certain private common equity securities, limited liability companies and convertible preferred securities. |
Other long-term investments | The following table presents investments in private equity funds and hedge funds by investment objective and sector as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Millions Fair Value Unfunded Fair Value Unfunded Private equity funds Manufacturing/Industrial $ 42.9 $ 10.5 $ 43.3 $ 10.4 Aerospace/Defense/Government 27.6 34.9 15.8 12.9 Direct lending 13.0 17.7 7.1 23.1 Financial services 8.3 13.6 4.2 11.7 Total private equity funds 91.8 76.7 70.4 58.1 Hedge funds Long/short banks and financial 54.3 — 54.9 — Total hedge funds 54.3 — 54.9 — Total private equity funds and hedge funds included in other long-term investments $ 146.1 $ 76.7 $ 125.3 $ 58.1 |
Fair Value of private equity funds subject to lock-up periods | The following table presents investments in private equity funds that were subject to lock-up periods as of December 31, 2018: Millions 1 – 3 years 3 – 5 years 5 – 10 years >10 years Total Private equity funds — expected lock-up period remaining $ 1.8 $ 5.5 $ 63.2 $ 21.3 $ 91.8 |
Rollforward of fair value investments by level | The following tables present the changes in White Mountains’s fair value measurements by level for the years ended December 31, 2018 and 2017 : Level 3 Investments Unconsolidated Entities, Private Equity Funds and Hedge Funds Measured at NAV (3) Millions Level 1 Investments Level 2 Investments Other Long-term Investments Total Balance at December 31, 2017 $ 890.4 $ 2,105.4 $ 77.2 $ 135.3 $ 3,208.3 (1)(2) Net realized and unrealized (losses) gains (64.9 ) (64.4 ) 16.2 13.3 (99.8 ) (4) Amortization/accretion .2 (2.7 ) — — (2.5 ) Purchases 514.7 783.8 45.3 50.5 1,394.3 Sales (497.8 ) (1,661.6 ) — (12.2 ) (2,171.6 ) Transfers in — — — — — Transfers out — — — — — Balance at December 31, 2018 $ 842.6 $ 1,160.5 $ 138.7 $ 186.9 $ 2,328.7 (2) (1) Excludes carrying value of $(3.7) as of December 31, 2017 associated with foreign currency forward contracts. (2) Excludes carrying value of $214.2 and $176.1 as of December 31, 2018 and 2017 classified as short-term investments. (3) Investments for which fair value is measured at NAV using the practical expedient are no longer classified within the fair value hierarchy. See Note 1 — “Basis of Presentation and Significant Accounting Policies” . (4) Excludes realized and unrealized losses associated with foreign currency forward contracts, foreign currency on cash and open trades and short-term investments of $3.5 , $4.2 and $0.8 for the year ended December 31, 2018. Level 3 Investments Unconsolidated Entities, Private Equity Funds and Hedge Funds Measured at NAV (3) Millions Level 1 Investments Level 2 Investments Fixed Other Long- term Investments Total Balance at December 31, 2016 $ 279.5 $ 2,093.8 $ — $ 91.4 $ 82.6 $ 2,547.3 (1)(2)(5) Net realized and unrealized gains (losses) 82.7 69.6 — (15.3 ) 20.4 157.4 (4) Amortization/accretion — (9.1 ) — — — (9.1 ) Purchases 1,209.3 2,007.9 31.2 3.1 81.0 3,332.5 Sales (681.1 ) (2,070.3 ) (12.5 ) (2.0 ) (48.7 ) (2,814.6 ) Deconsolidation of SSIE — (5.2 ) — — — (5.2 ) Transfers in — 18.7 — — — 18.7 Transfers out — — (18.7 ) — — (18.7 ) Balance at December 31, 2017 $ 890.4 $ 2,105.4 $ — $ 77.2 $ 135.3 $ 3,208.3 (1)(2) (1) Excludes carrying value of $(3.7) and $(1.2) as of December 31, 2017 and 2016 associated with foreign currency forward contracts. (2) Excludes carrying value of $176.1 and $175.0 as of December 31, 2017 and 2016 classified as short-term investments, of which $0.1 is classified as held for sale at December 31, 2016. (3) Investments for which fair value is measured at NAV using the practical expedient are no longer classified within the fair value hierarchy. See Note 1 — “Basis of Presentation and Significant Accounting Policies” . (4) Excludes realized and unrealized losses associated with foreign currency forward contracts and short-term investments of $23.8 and $0.3 for the year ended December 31, 2017. |
Schedule of significant unobservable inputs used in estimating the fair value of investment securities | The following tables present significant unobservable inputs used in estimating the fair value of other long-term investments, other than private equity funds and hedge funds, classified within Level 3 as of December 31, 2018 and 2017. The fair value of investments in certain unconsolidated entities, private equity funds and hedge funds are generally estimated using the NAV of the funds. $ in Millions, Except Share Price December 31, 2018 Description Valuation Technique(s) Fair Value (1) Unobservable Input PassportCard/DavidShield Discounted cash flow $75.0 Discount rate - 18.0% Exit multiple - 1.00 Compare.com Discounted cash flow $16.9 Discount rate - 22.0% Exit multiple - 2.75 YOUSURE Tarifvergleich GmbH (“durchblicker”) Discounted cash flow $15.5 Discount rate - 23.0% Exit multiple - 2.25 Captricity, Inc. Discounted cash flow $14.5 Discount rate - 23.0% Exit multiple - 3.75 Galvanic Applied Sciences Multiple of EBITDA $3.1 EBITDA multiple - 6.00 Private debt instrument Discounted cash flow $10.0 Discount rate - 9.62% (1) Includes the net unrealized investment gains (losses) associated with foreign currency; foreign currency effects based on observable inputs. $ in Millions, Except Share Price December 31, 2017 Description Valuation Technique(s) Fair Value (1) Unobservable Input PassportCard Discounted cash flow $21.0 Discount rate - 25.0% Exit multiple - 1.00 Compare.com Discounted cash flow $22.1 Discount rate - 35.0% Exit multiple - 1.75 durchblicker Discounted cash flow $11.3 Discount rate - 21.0% Exit multiple - 1.75 Captricity, Inc. Discounted cash flow $14.5 Discount rate - 30.0% Exit multiple - 3.50 Galvanic Applied Sciences Multiple of EBITDA $0.6 EBITDA multiple - 6.00 OneTitle Holdings LLC Share price of most recent transaction $3.6 Share price - $2.52 (1) Includes the net unrealized investment gains (losses) associated with foreign currency; foreign currency effects based on observable inputs. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table presents the economic lives, acquisition date values, accumulated amortization and net carrying values for other intangible assets and goodwill, by company: $ in Millions Weighted Average Economic Life (in Years) December 31, 2018 December 31, 2017 Acquisition Date Fair Value Accumulated Amortization Net Carrying Value Acquisition Date Fair Value Accumulated Amortization Net Carrying Value Goodwill: NSM (1)(2) N/A $ 354.3 $ — $ 354.3 $ — $ — $ — MediaAlpha N/A 18.3 — 18.3 18.3 — 18.3 Buzz (3) N/A 7.3 — 7.3 7.6 — 7.6 Total goodwill 379.9 — 379.9 25.9 — 25.9 Other intangible assets: NSM (1) Customer relationships 9 85.3 6.0 79.3 — — — Trade names 20 51.2 1.8 49.4 — — — Information technology 5 3.7 .5 3.2 — — — Subtotal 140.2 8.3 131.9 — — — MediaAlpha Customer relationships 9 26.8 4.9 21.9 26.8 2.4 24.4 Information technology 5 33.3 30.9 2.4 33.3 24.3 9.0 Other 3 9.8 9.0 .8 9.8 7.8 2.0 Subtotal 69.9 44.8 25.1 69.9 34.5 35.4 Buzz Trademark 7 .6 .2 .4 .6 .1 .5 Information technology 5 .5 .3 .2 .5 .2 .3 Subtotal 1.1 .5 .6 1.1 .3 .8 Total other intangible assets 211.2 53.6 157.6 71.0 34.8 36.2 Total goodwill and other intangible assets $ 591.1 $ 53.6 $ 537.5 $ 96.9 $ 34.8 $ 62.1 Goodwill and other intangible assets (40.6 ) (21.1 ) Goodwill and other intangible assets $ 496.9 $ 41.0 (1) Includes the effect of foreign currency translation from the date of acquisition of $(2.2) for goodwill and $(0.7) for other intangible assets. (2) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisition of KBK had not yet been determined at December 31, 2018. See Note 2 — “Significant Transactions” . (3) Includes the effect of foreign currency translation from the date of acquisition of $(0.3) for goodwill. |
Schedule of Goodwill and Intangible Assets Rollforward | The following table presents the change in goodwill and other intangible assets: December 31, 2018 2017 Millions Goodwill Other Intangible Assets Goodwill Other Intangible Assets Beginning balance $ 25.9 $ 36.2 $ 25.9 $ 19.3 Acquisitions of businesses (1) 356.5 140.9 — — Acquisitions of asset groups (2) — — — 27.6 Foreign currency translation (2.5 ) (.7 ) — — Acquisitions of other intangible assets — — — — Amortization — (18.8 ) — (10.7 ) Ending balance $ 379.9 $ 157.6 $ 25.9 $ 36.2 (1) During 2018, amounts include acquisitions related to NSM, Fresh Insurance and KBK. See Note 2 — “Significant Transactions” . (2) During 2017, amounts include certain assets associated with the Health, Life and Medicare insurance business of Healthplans.com for an aggregate purchase price of $28.0 . See Note 2 — “Significant Transactions” . |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | White Mountains expects to recognize amortization expense in each of the next five years as the following table presents: Millions Amortization Expense 2019 $ 18.1 2020 16.0 2021 16.0 2022 15.8 2023 and years after 89.5 Total $ 155.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt outstanding | The following table presents White Mountains’s debt outstanding as of December 31, 2018 and 2017 : December 31, Effective December 31, Effective Millions 2018 Rate (1) 2017 Rate (1) WTM Bank Facility $ — N/A $ — N/A NSM Bank Facility 180.4 7.4% — Unamortized issuance cost (3.8 ) — NSM Bank Facility, carrying value 176.6 — — MediaAlpha Bank Facility 14.3 7.1% 23.9 5.6% Unamortized issuance cost (.1 ) (.1 ) MediaAlpha Bank Facility, carrying value 14.2 23.8 Other NSM debt, carrying value 1.9 — Total debt $ 192.7 $ 23.8 (1) Effective rate considers the effect of the debt issuance costs. |
Schedule of contractual repayments of debt | schedule of contractual repayments of White Mountains’s debt as of December 31, 2018 : Millions December 31, Due in one year or less $ 5.2 Due in two to three years 10.4 Due in four to five years 9.4 Due after five years 171.9 Total $ 196.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of total income tax benefit (expense) | The following table presents the total income tax benefit for the years ended December 31, 2018, 2017 and 2016 : Year Ended December 31, Millions 2018 2017 2016 Current income tax (expense) benefit: U.S. federal $ (.1 ) $ (.3 ) $ 21.4 State (1.4 ) (1.3 ) (.7 ) Non-U.S. (2.9 ) (2.0 ) (.3 ) Total current income tax (expense) benefit (4.4 ) (3.6 ) 20.4 Deferred income tax benefit: U.S. federal 8.3 11.4 12.5 Non-U.S. .1 — — Total deferred income tax benefit 8.4 11.4 12.5 Total income tax benefit $ 4.0 $ 7.8 $ 32.9 |
Reconciliation of the U.S. federal statutory income tax rate and actual effective tax rate on pre-tax income | The following table presents a reconciliation of taxes calculated for 2018 using the 21% U.S. federal statutory rate and for 2017 and 2016 using the 35% U.S. federal statutory rate (the tax rate at which the majority of White Mountains’s worldwide operations are taxed) to the income tax benefit (expense) on pre-tax (loss) income: Year Ended December 31, Millions 2018 2017 2016 Tax benefit (expense) at the U.S. statutory rate $ 37.4 $ (2.7 ) $ 51.6 Differences in taxes resulting from: Change in valuation allowance (31.0 ) 42.6 6.9 State taxes 4.0 .6 (1.2 ) Non-U.S. earnings, net of foreign taxes (2.9 ) 21.5 (19.2 ) Withholding tax (2.7 ) (2.0 ) (.2 ) Member’s surplus contributions (“MSC”) (2.6 ) (3.0 ) (2.3 ) Tax rate changes 1.7 (44.3 ) (3.9 ) Tax reserve adjustments (.8 ) (.3 ) — Tax exempt interest and dividends .6 .5 .1 Officer compensation — (4.1 ) — Other, net .3 (1.0 ) 1.1 Total income tax benefit on pre-tax (loss) income $ 4.0 $ 7.8 $ 32.9 |
Schedule of components of deferred income tax assets and liabilities | The following table presents an outline of the significant components of White Mountains’s U.S. federal, state and non-U.S. deferred tax assets and liabilities: December 31, Millions 2018 2017 Deferred tax assets related to: U.S. federal and state net operating and capital loss carryforwards $ 95.5 $ 73.0 Non-U.S. net operating loss carryforwards 36.6 33.9 Incentive compensation 14.1 20.4 Investment basis difference 11.1 4.9 Net unrealized investment losses 9.5 — Tax credit carryforwards 4.2 1.3 Deferred acquisition costs 3.5 2.0 Other items 5.8 1.6 Total gross deferred tax assets 180.3 137.1 Less: valuation allowances 139.9 109.6 Total net deferred tax assets 40.4 27.5 Deferred tax liabilities related to: MSC 32.8 24.1 Purchase accounting 4.2 .2 Net unrealized investment gains — 1.0 Other items 1.2 .9 Total deferred tax liabilities 38.2 26.2 Net deferred tax asset $ 2.2 $ 1.3 |
Schedule of net operating and capital loss carryforwards by expiration dates and the deferred tax assets thereon | The following table presents net operating loss and capital loss carryforwards as of December 31, 2018 , the expiration dates and the deferred tax assets thereon: December 31, 2018 Millions United States Luxembourg United Kingdom Israel Total 2019-2023 $ .4 $ — $ — $ — $ .4 2024-2028 — — — — — 2029-2038 342.8 47.0 — — 389.8 No expiration date 81.5 29.8 14.9 61.1 187.3 Total $ 424.7 $ 76.8 $ 14.9 $ 61.1 $ 577.5 Gross deferred tax asset 89.7 20.0 2.6 14.0 126.3 Valuation allowance (87.3 ) (20.0 ) (1.8 ) (14.0 ) (123.1 ) Net deferred tax asset $ 2.4 $ — $ .8 $ — $ 3.2 |
Reconciliation of changes in the amount of unrecognized tax benefits | The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits for 2018 and 2017: Millions Permanent Differences (1) Temporary Differences (2) Interest and Penalties (3) Total Balance at January 1, 2017 $ — $ — $ — $ — Changes in prior year tax positions .1 — — .1 Tax positions taken during the current year .2 — — .2 Balance at December 31, 2017 .3 — — .3 Changes in prior year tax positions .8 — — .8 Balance at December 31, 2018 $ 1.1 $ — $ — $ 1.1 (1) Represents the amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate. (2) Represents the amount of unrecognized tax benefits that, if recognized, would create a temporary difference between the reported amount of an item in White Mountains’s Consolidated Balance Sheet and its tax basis. (3) Net of tax benefit. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative [Line Items] | |
Schedule of collateral | The following table presents the gross notional amounts and carrying values associated with the foreign currency forward contracts as of December 31, 2017: December 31, 2017 Millions Notional Amount Carrying Value Standard & Poor ’ s Rating (1) Barclays Bank PLC $ 206.3 $ (3.7 ) A (1) |
Variable Annuity Reinsurance | |
Derivative [Line Items] | |
Pre-tax operating results | The following table presents the pre-tax operating results of WM Life Re for the year ended December 31, 2016: Millions Year Ended Fees, included in other revenue $ 1.2 Change in fair value of variable annuity liability, included in other revenue (.3 ) Change in fair value of derivatives, included in other revenue (2.0 ) Foreign exchange, included in other revenue 1.3 Total revenues .2 Death benefit claims paid, included in general and administrative expenses (.3 ) General and administrative expenses (2.6 ) Pre-tax loss $ (2.7 ) |
Realized and unrealized derivative gains (losses) recognized in other revenues and carrying values, by the type of instrument | The following table presents realized and unrealized derivative gains (losses) recognized in other revenue for the year ended December 31, 2016 by type of instrument: Millions Gains (Losses) Year Ended December 31, 2016 Fixed income/interest rate $ 1.8 Foreign exchange (4.8 ) Equity 1.0 Total $ (2.0 ) |
Fair Value of Assets and Liabilities Measured on Recurring and Non-recurring Basis Table | The following tables present the changes in White Mountains’s variable annuity reinsurance liabilities and derivative instruments for the year ended December 31, 2016: Variable Annuity Liabilities Derivative Instruments Millions Level 3 Level 3 (1) Level 2 (1)(2) Level 1 (3) Total Balance at January 1, 2016 $ .3 $ 2.7 $ 16.5 $ .9 $ 20.1 Purchases — — — — — Realized and unrealized (losses) gains (.3 ) 2.9 (.7 ) (4.2 ) (2.0 ) Transfers in — — — — — Sales/settlements — (5.6 ) (15.8 ) 3.3 (18.1 ) Balance at December 31, 2016 $ — $ — $ — $ — $ — (1) Consists of over-the-counter instruments. (2) Consists of interest rate swaps, total return swaps, foreign currency forward contracts, and bond forwards. Fair value measurement based upon bid/ask pricing quotes for similar instruments that are actively traded, where available. Swaps for which an active market does not exist have been priced using observable inputs including the swap curve and the underlying bond index. (3) Consists of exchange traded equity index, foreign currency and interest rate futures. Fair value measurements based upon quoted prices for identical instruments that are actively traded. |
Municipal Bond Guarantee Insu_2
Municipal Bond Guarantee Insurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Financial Guarantee Insurance Contracts, Premium Received over Contract Period [Table Text Block] | The following table presents a schedule of BAM’s future premium revenues as of December 31, 2018 : Millions December 31, 2018 January 1, 2019 - March 31, 2019 $ 4.1 April 1, 2019 - June 30, 2019 4.0 July 1, 2019 - September 30, 2019 4.0 October 1, 2019 - December 31, 2019 3.8 15.9 2020 15.0 2021 14.0 2022 13.2 2023 12.3 2024 and thereafter 105.6 Total gross unearned insurance premiums $ 176.0 |
Schedule of Insured Obligations | The following table presents a schedule of BAM’s insured obligations as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Contracts outstanding 7,525 6,371 Remaining weighted average contract period (in years) 10.7 10.9 Contractual debt service outstanding (in millions): Principal $ 52,201.6 $ 42,090.6 Interest and capital appreciation 26,560.3 21,057.1 Total debt service outstanding $ 78,761.9 $ 63,147.7 Gross unearned insurance premiums $ 176.0 $ 136.8 |
Schedule of Net Written Premiums | The following table presents a schedule of net written premiums and net earned premiums included in White Mountains’s HG Global/BAM segment for the years ended December 31, 2018, 2017 and 2016 : Millions December 31, 2018 December 31, 2017 December 31, 2016 Written premiums: Direct $ 44.8 $ 63.2 $ 38.6 Assumed 8.1 — — Net written premiums $ 52.9 $ 63.2 $ 38.6 Earned premiums: Direct $ 13.6 $ 9.4 $ 5.9 Assumed .3 — — Net earned premiums $ 13.9 $ 9.4 $ 5.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | The following table presents the Company’s computation of earnings per share from continuing operations for the years ended December 31, 2018, 2017 and 2016 . See Note 19 — “Held for Sale and Discontinued Operations” . Year Ended December 31, 2018 2017 2016 Basic and diluted earnings per share numerators (in millions): Net (loss) income attributable to White Mountains’s common shareholders $ (141.2 ) $ 627.2 $ 401.8 Less: total (loss) income from discontinued operations, net of tax (17.2 ) 577.5 523.4 Net (loss) income from continuing operations attributable to White Mountains’s common shareholders (124.0 ) 49.7 (121.6 ) Allocation of earnings (losses) to participating restricted common shares (1) 1.4 (.7 ) 1.5 Basic and diluted (losses) earnings per share numerators $ (122.6 ) $ 49.0 $ (120.1 ) Basic earnings per share denominators (in thousands): Total average common shares outstanding during the period $ 3,382.5 $ 4,293.8 $ 5,014.9 Average unvested restricted common shares (2) (40.1 ) (54.3 ) (64.8 ) Basic (losses) earnings per share denominator $ 3,342.4 $ 4,239.5 $ 4,950.1 Diluted earnings per share denominator (in thousands): Total average common shares outstanding during the period $ 3,382.5 $ 4,293.8 $ 5,018.1 Average unvested restricted common shares (2) (40.1 ) (54.3 ) (64.8 ) Diluted (losses) earnings per share denominator (3) $ 3,342.4 $ 4,239.5 $ 4,953.3 Basic and diluted earnings per share (in dollars) - continuing operations: Distributed earnings - dividends declared and paid $ 1.00 $ 1.00 $ 1.00 Undistributed (losses) earnings $ (37.67 ) $ 10.56 $ (25.26 ) Basic and diluted (losses) earnings per share $ (36.67 ) $ 11.56 $ (24.26 ) (1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities. (2) Restricted shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans” . (3) The diluted earnings (loss) per share denominator for the year ended December 31, 2016, includes the impact of 40,000 common shares issuable upon exercise of the non-qualified options outstanding, which resulted in 3,217 incremental shares outstanding over the period. |
Schedule of discontinued operations balance sheet, income statement, and cash flows | The following table presents the undistributed net earnings (losses) from continuing operations for the years ended December 31, 2018, 2017 and 2016 . See Note 19 — “Held for Sale and Discontinued Operations” . Year Ended December 31, Millions 2018 2017 2016 Undistributed net earnings - continuing operations: Net (loss) income attributable to White Mountains’s common shareholders, net of restricted common share amounts $ (122.6 ) $ 49.0 $ (120.1 ) Dividends declared, net of restricted common share amounts (1) (3.7 ) (4.5 ) (5.4 ) Total undistributed net (losses) earnings, net of restricted common share amounts $ (126.3 ) $ 44.5 $ (125.5 ) (1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities. Net Income (Loss) from Discontinued Operations The following tables present the results of operations, including related income taxes associated with the business classified as discontinued operations. For the year ended December 31, 2017 and 2016, the amounts presented relate to OneBeacon, Sirius Group and Tranzact. The results of discontinued operations from Sirius Group and Tranzact up to the closing date of the transaction inure to White Mountains. Year Ended December 31, 2017 Millions OneBeacon Sirius Group Tranzact Total Revenues Earned insurance premiums $ 807.6 $ — $ — $ 807.6 Net investment income 39.7 — — 39.7 Net realized and unrealized investment gains 38.8 — — 38.8 Other revenues 7.7 — — 7.7 Total revenues 893.8 — — 893.8 Expenses Loss and loss adjustment expenses 546.0 — — 546.0 Insurance and reinsurance acquisition expenses 145.6 — — 145.6 Other underwriting expenses 156.2 — — 156.2 General and administrative expenses 21.2 — — 21.2 Interest expense 10.0 10.0 Total expenses 879.0 — — 879.0 Pre-tax income 14.8 — — 14.8 Income tax benefit 5.7 — — 5.7 Net income from discontinued operations 20.5 — — 20.5 Gain (loss) from sale of discontinued operations, net of tax 554.5 (.7 ) 3.2 557.0 Total income (loss) from discontinued operations 575.0 (.7 ) 3.2 577.5 Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax .3 — — .3 Recognition of benefit plan assets and obligations from the sale of OneBeacon, net of tax 2.9 — — 2.9 Comprehensive income (loss) from discontinued operations $ 578.2 $ (.7 ) $ 3.2 $ 580.7 Year Ended December 31, 2016 Millions OneBeacon Sirius Group Tranzact Total Revenues Earned insurance premiums $ 1,100.6 $ 240.1 $ — $ 1,340.7 Net investment income 50.6 14.4 — 65.0 Net realized and unrealized investment gains (losses) 37.7 (1.5 ) — 36.2 Other revenues 5.5 .6 119.6 125.7 Total revenues 1,194.4 253.6 119.6 1,567.6 Expenses Loss and loss adjustment expenses 656.0 154.9 — 810.9 Insurance and reinsurance acquisition expenses 206.0 59.0 — 265.0 Other underwriting expenses 209.0 30.9 — 239.9 General and administrative expenses 14.2 10.4 116.7 141.3 Interest expense 13.1 7.9 3.2 24.2 Total expenses 1,098.3 263.1 119.9 1,481.3 Pre-tax income (loss) 96.1 (9.5 ) (.3 ) 86.3 Income tax benefit 12.5 3.1 6.4 22.0 Net income (loss) from discontinued operations 108.6 (6.4 ) 6.1 108.3 Gain from sale of discontinued operations, net of tax — 363.2 51.9 415.1 Total income from discontinued operations 108.6 356.8 58.0 523.4 Change in foreign currency translation and other comprehensive 1.0 32.0 — 33.0 Recognition of foreign currency translation from sale of Sirius Group, net of tax — 113.3 — 113.3 Comprehensive income from discontinued operations $ 109.6 $ 502.1 $ 58.0 $ 669.7 Net Change in Cash from Discontinued Operations The transactions to purchase the investments in OneBeacon and other investments held by Sirius Group prior to the closing are presented in the statement of cash flows as net settlement of investment cash flows with discontinued operations. The following table presents the net change in cash associated with the businesses classified as discontinued operations: Year Ended December 31, Millions 2017 2016 Net cash provided from operations $ 157.0 $ 23.6 Net cash provided from (used for) investing activities 3.0 241.4 Net cash used for financing activities (61.9 ) (93.8 ) Net change in cash during the period 98.1 171.2 Cash balances at beginning of period 70.5 245.4 Net change in cash held for sale (.9 ) (.3 ) Cash sold as part of sale of consolidated subsidiaries (167.7 ) (345.8 ) Cash balances at end of period $ — $ 70.5 |
Employee Share-Based Incentiv_2
Employee Share-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of performance share activity | The following table presents performance share activity for the years ended December 31, 2018, 2017 and 2016 for performance shares granted under the WTM Incentive Plan: Year Ended December 31, 2018 2017 2016 $ in Millions Target Performance Shares Outstanding Accrued Expense Target Performance Shares Outstanding Accrued Expense Target Performance Shares Outstanding Accrued Expense Beginning of period 50,515 $ 45.8 80,353 $ 42.4 93,654 $ 57.7 Shares paid or expired (1) (23,186 ) (28.4 ) (30,838 ) (21.9 ) (36,294 ) (41.0 ) New grants 14,105 — 17,710 — 22,615 — Forfeitures (2) (818 ) .1 (16,710 ) (9.3 ) 378 .5 Expense recognized — 14.2 — 34.6 — 25.2 End of period (3) 40,616 $ 31.7 50,515 $ 45.8 80,353 $ 42.4 (1) WTM performance share payments in 2018 for the 2015-2017 performance cycle, which were paid in March 2018 ranged from 145% to 147% of target. WTM performance share payments in 2017 for the 2014-2016 performance cycle, which were paid in March 2017 ranged from 34% to 76% of target. WTM performance shares payments in 2016 for the 2013-2015 performance cycle ranged from 140% to 142% of target. (2) Amounts include changes in assumed forfeitures, as required under GAAP. (3) Outstanding performance share awards as of December 31, 2018, 2017 and 2016 exclude 0 , 2,195 and 7,315 unvested performance shares awards for employees of discontinued operations. |
Summary of performance shares outstanding and accrued expense for performance shares awarded under an Incentive Plan | The following table presents performance shares outstanding and accrued expense for performance shares awarded under the WTM Incentive Plan as of December 31, 2018 for each performance cycle: $ in Millions Target Performance Shares Outstanding Accrued Expense Performance cycle: 2018 – 2020 13,450 $ 3.8 2017 – 2019 14,070 11.9 2016 – 2018 13,715 16.5 Sub-total 41,235 32.2 Assumed forfeitures (619 ) (.5 ) Total 40,616 $ 31.7 |
Schedule of nonvested restricted stock activity | The following table presents the unrecognized compensation cost associated with the outstanding restricted share awards under the WTM Incentive Plan for the years ended December 31, 2018, 2017 and 2016 : Year Ended December 31, 2018 2017 2016 $ in Millions Restricted Shares Unamortized Issue Date Fair Value Restricted Shares Unamortized Issue Date Fair Value Restricted Shares Unamortized Issue Date Fair Value Non-vested, Beginning of period 53,755 $ 14.3 70,620 $ 19.7 70,675 $ 15.7 Issued 14,105 11.4 17,985 16.3 25,365 20.2 Vested (25,381 ) — (28,846 ) — (24,620 ) — Forfeited (969 ) (.2 ) (6,004 ) (3.5 ) (800 ) (.3 ) Expense recognized — (13.0 ) — (18.2 ) — (15.9 ) End of period (1) 41,510 $ 12.5 53,755 $ 14.3 70,620 $ 19.7 (1) Outstanding restricted share awards as of December 31, 2018, 2017 and 2016 include 0 , 2,195 , and 5,235 unvested restricted shares for employees of Sirius Group |
Common Shareholders_ Equity a_2
Common Shareholders’ Equity and Non-controlling Interests Common Shareholders’ Equity and Non-controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | The following table presents the balance of non-controlling interests included in White Mountains’s total equity and the related percentage of each consolidated entity’s total equity owned by non-controlling shareholders as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 $ in Millions Non-controlling Percentage Non-controlling Equity Non-controlling Percentage Non-controlling Equity Other, excluding BAM HG Global 3.1 % $ 14.5 3.1 % $ 15.9 NSM 4.5 13.6 — — MediaAlpha 39.0 16.2 35.7 13.1 Buzz 22.9 1.1 22.9 2.5 Other NSM 13.4 .3 — — Total other, excluding BAM 45.7 31.5 BAM 100.0 (170.6 ) 100.0 (163.2 ) Total non-controlling interests $ (124.9 ) $ (131.7 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Financial information for White Mountains' segments | The following tables present the financial information for White Mountains’s segments: Millions HG Global/BAM (1) NSM MediaAlpha Other Operations Total Year Ended December 31, 2018 Earned insurance premiums $ 13.9 $ — $ — $ — $ 13.9 Net investment income 16.7 — — 42.3 59.0 Net realized and unrealized investment losses (7.5 ) — — (100.8 ) (108.3 ) Advertising and commission revenues (2) — 94.7 295.5 4.1 394.3 Other revenues 1.2 6.9 1.6 .5 10.2 Total revenues 24.3 101.6 297.1 (53.9 ) 369.1 Insurance acquisition expenses 5.3 — — — 5.3 Other underwriting expenses .4 — — — .4 Cost of sales — — 245.0 3.7 248.7 General and administrative expenses 48.0 61.6 31.7 94.4 235.7 Broker commission expense — 28.9 — — 28.9 Amortization of other intangible assets — 8.3 10.3 .2 18.8 Interest expense — 8.0 1.2 .3 9.5 Total expenses 53.7 106.8 288.2 98.6 547.3 Pre-tax (loss) income $ (29.4 ) $ (5.2 ) $ 8.9 $ (152.5 ) $ (178.2 ) (1) BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS. (2) As of December 31, 2018, approximately 29% of MediaAlpha’s advertising revenue was associated with one customer. As of December 31, 2018, approximately 33% of NSM’s commission revenue was associated with one single carrier. Millions HG Global/BAM (1) MediaAlpha Other Operations Total Year Ended December 31, 2017 Earned insurance premiums $ 9.4 $ — $ 1.0 $ 10.4 Net investment income 12.3 — 43.7 56.0 Net realized and unrealized investment gains .6 — 132.7 133.3 Advertising and commission revenues (2) — 163.2 3.8 167.0 Other revenues 1.0 — 6.1 7.1 Total revenues 23.3 163.2 187.3 373.8 Losses and LAE — — 1.1 1.1 Insurance acquisition expenses 4.0 — .1 4.1 Other underwriting expenses .4 — — .4 Cost of sales — 135.9 3.5 139.4 General and administrative expenses 42.9 16.2 148.9 208.0 Amortization of other intangible assets — 10.5 .2 10.7 Interest expense — 1.0 1.3 2.3 Total expenses 47.3 163.6 155.1 366.0 Pre-tax (loss) income $ (24.0 ) $ (.4 ) $ 32.2 $ 7.8 (1) BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS. (2) As of December 31, 2017, approximately 27% of MediaAlpha’s advertising revenue was associated with one customer. Millions HG Global/BAM (1) MediaAlpha Other Operations Total Year Ended December 31, 2016 Earned insurance premiums $ 5.9 $ — $ 7.5 $ 13.4 Net investment income 9.0 — 23.1 32.1 Net realized and unrealized investment gains (losses) .7 — (28.1 ) (27.4 ) Advertising and commission revenues (2) — 116.5 1.8 118.3 Other revenues 1.1 — 20.2 21.3 Total revenues 16.7 116.5 24.5 157.7 Losses and LAE — — 8.0 8.0 Insurance acquisition expenses 3.4 — 2.2 5.6 Other underwriting expenses .4 — — .4 Cost of sales — 97.8 4.2 102.0 General and administrative expenses 39.6 11.8 124.1 175.5 Amortization of other intangible assets — 10.1 .4 10.5 Interest expense — .9 2.1 3.0 Total expenses 43.4 120.6 141.0 305.0 Pre-tax loss $ (26.7 ) $ (4.1 ) $ (116.5 ) $ (147.3 ) (1) BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS. (2) As of December 31, 2016, approximately 24% of MediaAlpha’s advertising revenue was associated with one customer. Millions Selected Balance Sheet Data HG Global/BAM NSM MediaAlpha Other Operations Held for Sale Total December 31, 2018: Total investments $ 768.3 $ 1.7 $ — $ 1,772.9 $ — $ 2,542.9 Total assets $ 816.2 (1) $ 627.0 $ 88.4 $ 1,827.7 (2) $ 3.3 $ 3,362.6 Total liabilities $ 212.5 (2) $ 314.8 $ 46.9 $ 70.2 $ — $ 644.4 Total White Mountains’s common shareholders’ equity $ 759.8 (2) $ 298.3 $ 25.3 $ 1,756.4 (2) $ 3.3 $ 2,843.1 Non-controlling interest $ (156.1 ) $ 13.9 $ 16.2 $ 1.1 $ — $ (124.9 ) December 31, 2017: Total investments $ 693.4 $ — $ — $ 2,687.3 $ — $ 3,380.7 Total assets $ 747.4 (1) $ — $ 96.5 $ 2,812.0 (2) $ 3.3 $ 3,659.2 Total liabilities $ 167.0 (2) $ — $ 59.8 $ 71.6 $ — $ 298.4 Total White Mountains’s common $ 727.7 (2) $ — $ 23.6 $ 2,737.9 (2) $ 3.3 $ 3,492.5 Non-controlling interest $ (147.3 ) $ — $ 13.1 $ 2.5 $ — $ (131.7 ) |
Schedule of selected balance sheet data by segment | Millions Selected Balance Sheet Data HG Global/BAM NSM MediaAlpha Other Operations Held for Sale Total December 31, 2018: Total investments $ 768.3 $ 1.7 $ — $ 1,772.9 $ — $ 2,542.9 Total assets $ 816.2 (1) $ 627.0 $ 88.4 $ 1,827.7 (2) $ 3.3 $ 3,362.6 Total liabilities $ 212.5 (2) $ 314.8 $ 46.9 $ 70.2 $ — $ 644.4 Total White Mountains’s common shareholders’ equity $ 759.8 (2) $ 298.3 $ 25.3 $ 1,756.4 (2) $ 3.3 $ 2,843.1 Non-controlling interest $ (156.1 ) $ 13.9 $ 16.2 $ 1.1 $ — $ (124.9 ) December 31, 2017: Total investments $ 693.4 $ — $ — $ 2,687.3 $ — $ 3,380.7 Total assets $ 747.4 (1) $ — $ 96.5 $ 2,812.0 (2) $ 3.3 $ 3,659.2 Total liabilities $ 167.0 (2) $ — $ 59.8 $ 71.6 $ — $ 298.4 Total White Mountains’s common $ 727.7 (2) $ — $ 23.6 $ 2,737.9 (2) $ 3.3 $ 3,492.5 Non-controlling interest $ (147.3 ) $ — $ 13.1 $ 2.5 $ — $ (131.7 ) (1) As of December 2018 and 2017, BAM’s total assets reflected the elimination of $481.3 and $499.0 of BAM Surplus Notes issued to HG Global and its subsidiaries, and $143.7 and $126.0 in accrued interest related to the BAM Surplus Notes. (2) HG Global preferred dividends payable to White Mountains’s subsidiaries is eliminated in White Mountains’s consolidated financial statements. For segment reporting, the HG Global preferred dividends payable to White Mountains’s subsidiaries included within the HG Global/BAM segment are eliminated against the offsetting receivable included within the Other Operations segment and therefore added back to White Mountains’s common shareholders’ equity within the HG Global/BAM segment. |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of changes in unconsolidated affiliates | The following table presents the carrying values of investments in equity method eligible unconsolidated entities recorded within other long-term investments: December 31, Millions 2018 2017 Equity method eligible unconsolidated entities, at fair value $ 138.1 $ 58.0 Investments accounted for under the equity method 1.3 4.6 Total investments in equity method eligible unconsolidated entities 139.4 62.6 Other unconsolidated investments (1) 186.2 146.2 Total other long-term investments $ 325.6 $ 208.8 (1) Consists of other long-term investments that are not equity method eligible. |
Summarized statement of financial position | The following table presents White Mountains’s investments in equity method eligible unconsolidated entities as of December 31, 2018 and 2017: Ownership Interest Investee December 31, 2018 December 31, 2017 Instrument Held PassportCard/DavidShield (1) 50.0% 50% / 0% Common shares Kudu 49.5% — Units durchblicker 45.0% 45.0% Common shares Tuckerman Capital Fund III, L.P. 18.5% 21.3% Limited partnership interest Compare.com 18.4% 22.1% Common shares (1) As of December 31, 2018, White Mountains’s ownership interest in DavidShield comprised a 50% direct interest and White Mountains’s ownership interest in PassportCard comprised a 25% direct ownership interest and a 25% indirect interest through DavidShield. As of December 31, 2017, White Mountains had no ownership in DavidShield and White Mountains’s ownership interest in PassportCard comprised a 50% direct interest. See Note 2 — “Significant Transactions”. |
Financials | |
Schedule of Equity Method Investments [Line Items] | |
Summarized statement of financial position | The following tables presents aggregated summarized financial information for White Mountains’s investments in equity method eligible unconsolidated entities: December 31, Millions 2018 2017 Balance sheet data (1) : Total assets $ 218.8 $ 75.4 Total liabilities $ 46.7 $ 24.2 (1) Financial data for durchblicker, Compare.com and Tuckerman Capital Fund III, L.P. is on a one-quarter lag. Year Ended December 31, Millions 2018 2017 2016 Income statement data (1) : Revenues $ 134.1 $ 60.0 $ 32.9 Expenses $ (110.1 ) $ (66.8 ) $ (76.4 ) (1) Financial data for durchblicker, Compare.com and Tuckerman Capital Fund III, L.P. is on a one-quarter lag. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of the fair value and carrying value of financial instruments | The following tables presents the fair value and carrying value of these financial instruments as of December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 Millions Fair Value Carrying Value Fair Value Carrying Value NSM Bank Facility $ 176.1 $ 176.6 $ — $ — MediaAlpha Bank Facility $ 14.6 $ 14.2 $ 23.9 $ 23.8 |
Held for Sale and Discontinue_2
Held for Sale and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of discontinued operations balance sheet, income statement, and cash flows | The following table presents the undistributed net earnings (losses) from continuing operations for the years ended December 31, 2018, 2017 and 2016 . See Note 19 — “Held for Sale and Discontinued Operations” . Year Ended December 31, Millions 2018 2017 2016 Undistributed net earnings - continuing operations: Net (loss) income attributable to White Mountains’s common shareholders, net of restricted common share amounts $ (122.6 ) $ 49.0 $ (120.1 ) Dividends declared, net of restricted common share amounts (1) (3.7 ) (4.5 ) (5.4 ) Total undistributed net (losses) earnings, net of restricted common share amounts $ (126.3 ) $ 44.5 $ (125.5 ) (1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities. Net Income (Loss) from Discontinued Operations The following tables present the results of operations, including related income taxes associated with the business classified as discontinued operations. For the year ended December 31, 2017 and 2016, the amounts presented relate to OneBeacon, Sirius Group and Tranzact. The results of discontinued operations from Sirius Group and Tranzact up to the closing date of the transaction inure to White Mountains. Year Ended December 31, 2017 Millions OneBeacon Sirius Group Tranzact Total Revenues Earned insurance premiums $ 807.6 $ — $ — $ 807.6 Net investment income 39.7 — — 39.7 Net realized and unrealized investment gains 38.8 — — 38.8 Other revenues 7.7 — — 7.7 Total revenues 893.8 — — 893.8 Expenses Loss and loss adjustment expenses 546.0 — — 546.0 Insurance and reinsurance acquisition expenses 145.6 — — 145.6 Other underwriting expenses 156.2 — — 156.2 General and administrative expenses 21.2 — — 21.2 Interest expense 10.0 10.0 Total expenses 879.0 — — 879.0 Pre-tax income 14.8 — — 14.8 Income tax benefit 5.7 — — 5.7 Net income from discontinued operations 20.5 — — 20.5 Gain (loss) from sale of discontinued operations, net of tax 554.5 (.7 ) 3.2 557.0 Total income (loss) from discontinued operations 575.0 (.7 ) 3.2 577.5 Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax .3 — — .3 Recognition of benefit plan assets and obligations from the sale of OneBeacon, net of tax 2.9 — — 2.9 Comprehensive income (loss) from discontinued operations $ 578.2 $ (.7 ) $ 3.2 $ 580.7 Year Ended December 31, 2016 Millions OneBeacon Sirius Group Tranzact Total Revenues Earned insurance premiums $ 1,100.6 $ 240.1 $ — $ 1,340.7 Net investment income 50.6 14.4 — 65.0 Net realized and unrealized investment gains (losses) 37.7 (1.5 ) — 36.2 Other revenues 5.5 .6 119.6 125.7 Total revenues 1,194.4 253.6 119.6 1,567.6 Expenses Loss and loss adjustment expenses 656.0 154.9 — 810.9 Insurance and reinsurance acquisition expenses 206.0 59.0 — 265.0 Other underwriting expenses 209.0 30.9 — 239.9 General and administrative expenses 14.2 10.4 116.7 141.3 Interest expense 13.1 7.9 3.2 24.2 Total expenses 1,098.3 263.1 119.9 1,481.3 Pre-tax income (loss) 96.1 (9.5 ) (.3 ) 86.3 Income tax benefit 12.5 3.1 6.4 22.0 Net income (loss) from discontinued operations 108.6 (6.4 ) 6.1 108.3 Gain from sale of discontinued operations, net of tax — 363.2 51.9 415.1 Total income from discontinued operations 108.6 356.8 58.0 523.4 Change in foreign currency translation and other comprehensive 1.0 32.0 — 33.0 Recognition of foreign currency translation from sale of Sirius Group, net of tax — 113.3 — 113.3 Comprehensive income from discontinued operations $ 109.6 $ 502.1 $ 58.0 $ 669.7 Net Change in Cash from Discontinued Operations The transactions to purchase the investments in OneBeacon and other investments held by Sirius Group prior to the closing are presented in the statement of cash flows as net settlement of investment cash flows with discontinued operations. The following table presents the net change in cash associated with the businesses classified as discontinued operations: Year Ended December 31, Millions 2017 2016 Net cash provided from operations $ 157.0 $ 23.6 Net cash provided from (used for) investing activities 3.0 241.4 Net cash used for financing activities (61.9 ) (93.8 ) Net change in cash during the period 98.1 171.2 Cash balances at beginning of period 70.5 245.4 Net change in cash held for sale (.9 ) (.3 ) Cash sold as part of sale of consolidated subsidiaries (167.7 ) (345.8 ) Cash balances at end of period $ — $ 70.5 |
Discontinued operations, computation of earnings per share | The following table presents the Company’s computation of earnings per share for discontinued operations for the years ended December 31, 2018, 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Basic and diluted earnings per share numerators (in millions): Net (loss) income attributable to White Mountains’s common shareholders $ (141.2 ) $ 627.2 $ 401.8 Less: total (loss) income from continuing operations, net of tax (124.0 ) 49.7 (121.6 ) Net (loss) income from discontinued operations attributable to White Mountains’s common shareholders (17.2 ) 577.5 523.4 Allocation of earnings (losses) to participating restricted common shares (1) 0.2 (7.3 ) (6.8 ) Basic and diluted (losses) earnings per share numerators $ (17.0 ) $ 570.2 $ 516.6 Basic earnings per share denominators (in thousands): Total average common shares outstanding during the period $ 3,382.5 $ 4,293.8 $ 5,014.9 Average unvested restricted common shares (3) (40.1 ) (54.3 ) (64.8 ) Basic earnings (losses) per share denominator $ 3,342.4 $ 4,239.5 $ 4,950.1 Diluted earnings per share denominator (in thousands): Total average common shares outstanding during the period $ 3,382.5 $ 4,293.8 $ 5,018.1 Average unvested restricted common shares (3) (40.1 ) (54.3 ) (64.8 ) Diluted earnings (losses) per share denominator (4) $ 3,342.4 $ 4,239.5 $ 4,953.3 Basic (losses) earnings per share (in dollars) - discontinued operations: $ (5.09 ) $ 134.50 $ 104.37 Diluted (losses) earnings per share (in dollars) - discontinued operations: $ (5.09 ) $ 134.50 $ 104.32 (1) Restricted shares issued by White Mountains contain dividend participation features, and therefore, are considered participating securities. (2) Net earnings attributable to White Mountains’s common shareholders, net of restricted share amounts, is equal to undistributed earnings for the years ended December 31, 2018, 2017 and 2016 . (3) Restricted common shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Compensation Plans” . (4) The diluted earnings per share denominator for the year ended December 31, 2016 includes the impact of 40,000 common shares issuable upon exercise of the non-qualified options outstanding, which resulted in 3,217 incremental shares outstanding over the period. |
Summary of the fair value and carrying value of financial instruments | The following tables presents the fair value and carrying value of these financial instruments as of December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 Millions Fair Value Carrying Value Fair Value Carrying Value NSM Bank Facility $ 176.1 $ 176.6 $ — $ — MediaAlpha Bank Facility $ 14.6 $ 14.2 $ 23.9 $ 23.8 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents selected quarterly financial data for 2018 and 2017 . The quarterly financial data includes, in the opinion of management, all recurring adjustments necessary for a fair presentation of the results of operations for the interim periods. As a result of the OneBeacon, Sirius Group and Tranzact transactions, the results of operations for OneBeacon, Tranzact and Sirius Group have been classified as discontinued operations and are now presented, net of related income taxes, as such in the statement of comprehensive income. See Note 19 — “Held for Sale and Discontinued Operations” . Prior year amounts have been reclassified to conform to the current period’s presentation. Prior year amounts have also been adjusted for the impact of White Mountains’s financial statement revisions. 2018 Three Months Ended 2017 Three Months Ended Millions, Except Per Share Amounts Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Revenues $ 6.0 $ 198.7 $ 122.3 $ 42.1 $ 114.0 $ 87.5 $ 83.5 $ 88.8 Expenses 150.1 154.4 134.7 108.1 108.8 79.1 85.7 92.4 Pre-tax income (loss) (144.1 ) 44.3 (12.4 ) (66.0 ) 5.2 8.4 (2.2 ) (3.6 ) Tax benefit (expense) 3.6 3.6 (2.5 ) (.7 ) 2.5 4.0 1.0 0.3 Income (loss) from continuing operations (140.5 ) 47.9 (14.9 ) (66.7 ) 7.7 12.4 (1.2 ) (3.3 ) Income (loss) from discontinued operations, net of tax — (17.3 ) — .1 4.3 539.1 2.8 31.3 Non-controlling interest in consolidated subsidiaries 3.0 10.2 18.4 18.6 10.5 10.6 12.0 1.0 Income (loss) attributable to White Mountains’s common shareholders $ (137.5 ) $ 40.8 $ 3.5 $ (48.0 ) $ 22.5 $ 562.1 $ 13.6 $ 29.0 Income (loss) attributable to White Mountains’s common shareholders per share: Basic Continuing operations $ (43.24 ) $ 18.27 $ 1.02 $ (12.85 ) $ 4.85 $ 5.36 $ 2.36 $ (0.52 ) Discontinued operations — (5.44 ) — .03 1.15 125.45 .61 6.86 Total consolidated operations $ (43.24 ) $ 12.83 $ 1.02 $ (12.82 ) $ 6.00 $ 130.81 $ 2.97 $ 6.34 Diluted Continuing operations $ (43.24 ) $ 18.27 $ 1.02 $ (12.85 ) $ 4.85 $ 5.36 $ 2.36 $ (0.52 ) Discontinued operations — (5.44 ) — .03 1.15 125.45 .61 6.86 Total consolidated operations $ (43.24 ) $ 12.83 $ 1.02 $ (12.82 ) $ 6.00 $ 130.81 $ 2.97 $ 6.34 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Reportable Segments and Discontinued Operations and Assets and Liabilities Held for Sale) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2018 | May 11, 2018 | Dec. 31, 2017 | Sep. 28, 2017 | Dec. 31, 2012 |
Basis of Presentation | |||||
Percentage of par value of policy reinsured | 15.00% | 15.00% | |||
HG Global | |||||
Basis of Presentation | |||||
Surplus notes | $ 503 | ||||
Preferred stocks | HG Global | |||||
Basis of Presentation | |||||
Ownership interest (as a percent) | 96.90% | 96.90% | |||
Common Stock | HG Global | |||||
Basis of Presentation | |||||
Ownership interest (as a percent) | 88.40% | 88.40% | |||
Intact Financial Corporation | OneBeacon | |||||
Basis of Presentation | |||||
Sale of Stock, price per share | $ 18.10 | ||||
NSM Insurance HoldCo, LLC | |||||
Basis of Presentation | |||||
Ownership interest (as a percent) | 95.50% | 95.00% | |||
Series A BAM Surplus Note | HG Global | |||||
Basis of Presentation | |||||
Surplus notes | 203 | ||||
Series B BAM Surplus Note | HG Global | |||||
Basis of Presentation | |||||
Surplus notes | $ 300 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Investment Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Minimum Percentage of Variation from Expected Price Required to Treat Prices of Investments Provided by Pricing Services as Outliers | 5.00% | |
Minimum Variation from Expected Price Required to Treat Prices of Investments Provided by Pricing Services as Outliers | $ 0.5 | |
Percentage of investments recorded at fair value | 87.00% | 94.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Foreign Currency Exchange) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Net unrealized foreign currency translation losses | $ (3.9) | $ (1.3) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Recently Adopted Accounting Principles) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Employee service share-based compensation, tax benefit from exercise of stock options | $ 8.4 | $ 9.2 | |
Subsequent Event | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 24.5 | ||
Operating lease, liability | $ 24.5 |
Significant Transactions (Acqui
Significant Transactions (Acquisitions) (Details) | Dec. 03, 2018USD ($)shares | May 11, 2018USD ($) | Jan. 24, 2018USD ($) | Oct. 05, 2017USD ($)shares | Aug. 01, 2017USD ($)shares | Aug. 04, 2016USD ($) | Jan. 15, 2016USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)earnout_period | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 18, 2018USD ($) | Feb. 05, 2018USD ($) |
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Purchase of consolidated subsidiaries, net of cash acquired | $ 295,200,000 | $ 27,600,000 | $ 13,400,000 | |||||||||||
Assets | $ 3,362,600,000 | 3,362,600,000 | 3,659,200,000 | |||||||||||
Goodwill | 379,900,000 | 379,900,000 | 25,900,000 | $ 25,900,000 | ||||||||||
Liabilities | 644,400,000 | 644,400,000 | 298,400,000 | |||||||||||
NSM Holding Co LLC | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Contingent consideration | 2,700,000 | 2,700,000 | ||||||||||||
Contingent consideration earnout liabilities | 20,200,000 | 20,200,000 | 0 | |||||||||||
Assets | 627,000,000 | 627,000,000 | 0 | |||||||||||
Liabilities | $ 314,800,000 | $ 314,800,000 | $ 0 | |||||||||||
Buzzmove | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 70.90% | 77.10% | 77.10% | 77.10% | ||||||||||
Assets | $ 11,500,000 | |||||||||||||
Goodwill | 7,600,000 | |||||||||||||
Intangible assets, net (excluding goodwill) | 1,100,000 | |||||||||||||
Liabilities | 100,000 | |||||||||||||
LowFares.com | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Purchase of consolidated subsidiaries, net of cash acquired | $ 3,900,000 | |||||||||||||
Healthplans.com | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Purchase of consolidated subsidiaries, net of cash acquired | $ 28,000,000 | |||||||||||||
MediaAlpha | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 61.00% | 61.00% | 64.40% | |||||||||||
Assets | $ 88,400,000 | $ 88,400,000 | $ 96,500,000 | |||||||||||
Liabilities | $ 46,900,000 | $ 46,900,000 | $ 59,800,000 | |||||||||||
Preferred stocks | Buzzmove | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Stock issued during period, shares, acquisitions | shares | 37,409 | |||||||||||||
Common Stock | Buzzmove | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Stock issued during period, shares, acquisitions | shares | 5,808 | |||||||||||||
GBP | Buzzmove | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Payments to acquire interest in subsidiary | 6,100,000 | |||||||||||||
GBP | Preferred stocks | Buzzmove | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Payments to acquire interest in subsidiary | $ 4,000,000 | |||||||||||||
GBP | Common Stock | Buzzmove | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Payments to acquire interest in subsidiary | 500,000 | |||||||||||||
United States of America, Dollars | Buzzmove | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Payments to acquire interest in subsidiary | $ 8,100,000 | |||||||||||||
United States of America, Dollars | Preferred stocks | Buzzmove | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Payments to acquire interest in subsidiary | 5,000,000 | |||||||||||||
United States of America, Dollars | Common Stock | Buzzmove | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Payments to acquire interest in subsidiary | $ 700,000 | |||||||||||||
NSM Insurance HoldCo, LLC | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 95.00% | 95.50% | 95.50% | |||||||||||
Purchase of consolidated subsidiaries, net of cash acquired | $ 274,200,000 | |||||||||||||
Purchase price adjustment | $ 2,100,000 | |||||||||||||
Assets acquired | 495,200,000 | |||||||||||||
Goodwill and intangible assets acquired | 383,000,000 | |||||||||||||
Liabilities acquired | 204,600,000 | |||||||||||||
Contingent consideration | 10,200,000 | |||||||||||||
Noncontrolling interest acquired | $ 14,400,000 | |||||||||||||
Transaction costs | $ 6,300,000 | |||||||||||||
Fresh Insurance Services Group Limited | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 100.00% | |||||||||||||
Purchase price adjustment | $ 700,000 | |||||||||||||
Assets acquired | $ 72,600,000 | |||||||||||||
Goodwill and intangible assets acquired | 54,600,000 | |||||||||||||
Liabilities acquired | 22,300,000 | |||||||||||||
Contingent consideration | 7,500,000 | |||||||||||||
Equity method investment, aggregate cost | $ 49,600,000 | |||||||||||||
Number of earnout periods | earnout_period | 2 | |||||||||||||
KBK Insurance Group, Inc. & KBK Premium Services, Inc. | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Purchase of consolidated subsidiaries, net of cash acquired | $ 60,000,000 | |||||||||||||
Goodwill and intangible assets acquired | $ 59,400,000 | |||||||||||||
Stock issued during period, shares, acquisitions | shares | 16,694,869 | |||||||||||||
Stock issued during period, value, acquisitions | $ 29,000,000 | |||||||||||||
DavidShield | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | |||||||||||
DavidShield | White Mountains | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 25.00% | 25.00% | ||||||||||||
PassportCard | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 50.00% | 25.00% | 25.00% | 50.00% | ||||||||||
DavidShield & PassportCard | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||||||
Payments to acquire businesses, gross | $ 41,800,000 | |||||||||||||
Payments to acquire businesses, net | $ 28,300,000 | |||||||||||||
Kudu | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 49.50% | 49.50% | 0.00% | |||||||||||
Equity method investment, aggregate cost | $ 125,000,000 | |||||||||||||
Working capital funded | $ 3,800,000 | $ 3,800,000 | ||||||||||||
Additional funding | 63,000,000 | 63,000,000 | ||||||||||||
Kudu | White Mountains | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Equity method investment, aggregate cost | 31,500,000 | 31,500,000 | ||||||||||||
Additional funding | $ 31,500,000 | $ 31,500,000 | ||||||||||||
Capital Unit, Class A | MediaAlpha | ||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||||
Capital units, purchased | shares | 131,579 | |||||||||||||
Capital units, value | $ 12,500,000 |
Significant Transactions (Dispo
Significant Transactions (Dispositions) (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Oct. 05, 2016 | Jul. 21, 2016 | Apr. 18, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Significant Transactions | |||||||||||||||||
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold | $ 0 | $ 1,131 | $ 2,646.2 | ||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | (17.2) | 557 | 415.1 | ||||||||||||||
Other comprehensive (loss) income, net of tax | (4.8) | 0.3 | (0.7) | ||||||||||||||
Repayments of debt, principal | 15.4 | 365 | 404.6 | ||||||||||||||
Payments to acquire other investments | 95.9 | 84.1 | 38.5 | ||||||||||||||
Net income from discontinued operations, net of tax | $ 0 | $ (17.3) | $ 0 | $ 0.1 | $ 4.3 | $ 539.1 | $ 2.8 | $ 31.3 | 0 | 20.5 | 108.3 | ||||||
OneBeacon | |||||||||||||||||
Significant Transactions | |||||||||||||||||
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold | $ 1,300 | ||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 554.6 | ||||||||||||||||
Other comprehensive (loss) income, net of tax | $ 2.9 | ||||||||||||||||
Net income from discontinued operations, net of tax | $ 20.5 | 108.6 | |||||||||||||||
Tranzact | |||||||||||||||||
Significant Transactions | |||||||||||||||||
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold | $ 1.2 | $ 221.3 | |||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 3.2 | 51.9 | |||||||||||||||
Repayments of debt, principal | 56.3 | ||||||||||||||||
Tax effect of discontinued operation | 30.2 | ||||||||||||||||
Increase of book value | $ 82.1 | 82.1 | |||||||||||||||
Sirius Group | |||||||||||||||||
Significant Transactions | |||||||||||||||||
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold | $ 2,600 | ||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | $ (4) | 363.2 | |||||||||||||||
Payments to acquire other investments | $ 161.8 | ||||||||||||||||
Net change in pension liability and other accumulated comprehensive items | 113.3 | ||||||||||||||||
Sale of Sirius Group | |||||||||||||||||
Significant Transactions | |||||||||||||||||
Net change in pension liability and other accumulated comprehensive items | 113.3 | ||||||||||||||||
Discontinued Operations | OneBeacon | |||||||||||||||||
Significant Transactions | |||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 0 | 554.5 | 0 | ||||||||||||||
Tax effect of discontinued operation | (5.7) | (12.5) | |||||||||||||||
Net change in pension liability and other accumulated comprehensive items | 2.9 | 0 | |||||||||||||||
Net income from discontinued operations, net of tax | 20.5 | 108.6 | |||||||||||||||
Discontinued Operations | Tranzact | |||||||||||||||||
Significant Transactions | |||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 0 | 3.2 | 51.9 | ||||||||||||||
Tax effect of discontinued operation | 0 | (6.4) | |||||||||||||||
Net change in pension liability and other accumulated comprehensive items | 0 | 0 | |||||||||||||||
Net income from discontinued operations, net of tax | 0 | 6.1 | |||||||||||||||
Discontinued Operations | Sirius Group | |||||||||||||||||
Significant Transactions | |||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | (17.2) | (0.7) | 363.2 | ||||||||||||||
Tax effect of discontinued operation | 0 | (3.1) | |||||||||||||||
Net change in pension liability and other accumulated comprehensive items | 0 | 113.3 | |||||||||||||||
Net income from discontinued operations, net of tax | $ 0 | (6.4) | |||||||||||||||
Discontinued Operations | Sale of Sirius Group | |||||||||||||||||
Significant Transactions | |||||||||||||||||
Net income from discontinued operations, net of tax | $ (4.3) | ||||||||||||||||
Swedish Tax Authority | Sirius Group | Sirius Group | |||||||||||||||||
Significant Transactions | |||||||||||||||||
Net income from discontinued operations, net of tax | $ (17.3) |
Investment Securities (Net Inve
Investment Securities (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment income: | |||
Total investment income | $ 62 | $ 58.5 | $ 34.5 |
Third-party investment expenses | (3) | (2.5) | (2.4) |
Net investment income, pre-tax | 59 | 56 | 32.1 |
Fixed maturity investments | |||
Investment income: | |||
Total investment income | 35.1 | 44.9 | 28.5 |
Short-term investments | |||
Investment income: | |||
Total investment income | 8 | 1.8 | 0.9 |
Common Stock | |||
Investment income: | |||
Total investment income | 15.1 | 10.6 | 4 |
Other long-term investments | |||
Investment income: | |||
Total investment income | $ 3.8 | $ 1.2 | $ 1.1 |
Investment Securities (Net Real
Investment Securities (Net Realized and Unrealized Investement Gains and Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net realized investment (losses) gains, pre-tax | $ (12.9) | $ 24.1 | $ 270 |
Net unrealized investment (losses) gains, pre-tax | (95.4) | 109.2 | (297.4) |
Net realized and unrealized investment (losses) gains, pre-tax | (108.3) | 133.3 | (27.4) |
Income tax benefit (expense) attributable to net realized and unrealized investment (losses) gains | 18.2 | (12.9) | 2.7 |
Net realized and unrealized investment (losses) gains, after-tax | $ (90.1) | $ 120.4 | $ (24.7) |
Investment Securities (Net Re_2
Investment Securities (Net Realized Investment Gain (losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment securities | |||
Net realized investment gains (losses), pre-tax | $ (23.9) | $ 35.3 | $ 269.7 |
Net realized investment gains (losses), foreign, pre-tax | 11 | (11.2) | 0.3 |
Net realized investment gains (losses), pre-tax, total | (12.9) | 24.1 | 270 |
Income tax expense attributable to net realized investment gains (losses) | 9.1 | (8.9) | (45.6) |
Income tax expense attributable to net realized investment gains (losses), foreign | 0 | 0 | 0 |
Income tax expense attributable to net realized investment gains, total | 9.1 | (8.9) | (45.6) |
Net realized investment gains (losses), after-tax | (14.8) | 26.4 | 224.1 |
Net realized investment gains (losses), foreign, after-tax | 11 | (11.2) | 0.3 |
Net realized investment gains (losses), total, after-tax | (3.8) | 15.2 | 224.4 |
Fixed maturity investments | |||
Investment securities | |||
Net realized investment gains (losses), pre-tax | (29.8) | (1.6) | (1.9) |
Net realized investment gains (losses), foreign, pre-tax | 18.2 | 4.1 | 0.3 |
Net realized investment gains (losses), pre-tax, total | (11.6) | 2.5 | (1.6) |
Short-term investments | |||
Investment securities | |||
Net realized investment gains (losses), pre-tax | (0.8) | (0.3) | 0.4 |
Net realized investment gains (losses), foreign, pre-tax | 0 | 0 | 0 |
Net realized investment gains (losses), pre-tax, total | (0.8) | (0.3) | 0.4 |
Common equity securities | |||
Investment securities | |||
Net realized investment gains (losses), pre-tax | 6.6 | 18.1 | 268.5 |
Net realized investment gains (losses), foreign, pre-tax | 0 | 6 | 0 |
Net realized investment gains (losses), pre-tax, total | 6.6 | 24.1 | 268.5 |
Other long-term investments | |||
Investment securities | |||
Net realized investment gains (losses), pre-tax | 0.1 | 19.1 | 2.7 |
Net realized investment gains (losses), foreign, pre-tax | (7.2) | (21.3) | 0 |
Net realized investment gains (losses), pre-tax, total | $ (7.1) | $ (2.2) | $ 2.7 |
Investment Securities (Net Unre
Investment Securities (Net Unrealized Investment Gains (Losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment securities | |||
Unrealized investment gains | $ (83.6) | $ 97.5 | $ (294.7) |
Foreign Currency Transaction Gain (Loss), Unrealized | (11.8) | 11.7 | (2.7) |
Net unrealized investment gains (losses), pre-tax | (95.4) | 109.2 | (297.4) |
Trading Securities, Tax on Unrealized Holding Gain (Loss) on Investments | 9.1 | (4) | 48.3 |
Trading Securities, Unrealized Foreign Currency Transaction Gain (Loss) Tax | 0 | 0 | 0 |
Net Unrealized Gain (Loss) and Foreign Currency Gain (Loss) on Trading Securities Tax | 9.1 | (4) | 48.3 |
Unrealized investment gains after tax | (74.5) | 93.5 | (246.4) |
Trading Securities, Unrealized Foreign Currenc Gain (Loss) Net of Tax | (11.8) | 11.7 | (2.7) |
Net Unrealized Gain (Loss) and Foreign Currency Gain (Loss) on Trading Securities Net of Tax | (86.3) | 105.2 | (249.1) |
Fixed maturity investments | |||
Investment securities | |||
Unrealized investment gains | (8.3) | 13.8 | (14.6) |
Foreign Currency Transaction Gain (Loss), Unrealized | (14.8) | 12.7 | 2.1 |
Net unrealized investment gains (losses), pre-tax | (23.1) | 26.5 | (12.5) |
Common equity securities | |||
Investment securities | |||
Unrealized investment gains | (105.5) | 99.3 | (257.4) |
Foreign Currency Transaction Gain (Loss), Unrealized | 0 | 0 | (3.3) |
Net unrealized investment gains (losses), pre-tax | (105.5) | 99.3 | (260.7) |
Other long-term investments | |||
Investment securities | |||
Unrealized investment gains | 30.2 | (15.6) | (22.7) |
Foreign Currency Transaction Gain (Loss), Unrealized | 3 | (1) | (1.5) |
Net unrealized investment gains (losses), pre-tax | $ 33.2 | $ (16.6) | $ (24.2) |
Investment Securities (Investme
Investment Securities (Investment Gains (Losses) For Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment securities | |||
Realized gains | $ 49.4 | $ 61.5 | $ 283.7 |
Realized losses | 62.3 | 37.4 | 13.7 |
Unrealized investment gains | (83.6) | 97.5 | (294.7) |
Level 3 Inputs | |||
Investment securities | |||
Unrealized investment gains | 22.6 | (15.4) | (14.2) |
Fixed maturity investments | |||
Investment securities | |||
Unrealized investment gains | (8.3) | 13.8 | (14.6) |
Fixed maturity investments | Level 3 Inputs | |||
Investment securities | |||
Unrealized investment gains | 0 | 0 | 0.1 |
Common equity securities | |||
Investment securities | |||
Unrealized investment gains | (105.5) | 99.3 | (257.4) |
Other long-term investments | |||
Investment securities | |||
Unrealized investment gains | 30.2 | (15.6) | (22.7) |
Other long-term investments | Level 3 Inputs | |||
Investment securities | |||
Unrealized investment gains | $ 22.6 | $ (15.4) | $ (14.3) |
Investment Securities (Invest_2
Investment Securities (Investment Holdings) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Government and agency obligations | ||
Investment securities | ||
Cost or amortized cost | $ 154 | $ 297.8 |
Gross unrealized gains | 0.1 | 0 |
Gross unrealized losses | (0.9) | (1.3) |
Net foreign currency gains | 0 | 0 |
Fixed maturity investments, at fair value | 153.2 | 296.5 |
Debt securities issued by corporations | ||
Investment securities | ||
Cost or amortized cost | 519 | 867.6 |
Gross unrealized gains | 1 | 2.9 |
Gross unrealized losses | (9.5) | (4.3) |
Net foreign currency gains | 0 | 14.7 |
Fixed maturity investments, at fair value | 510.5 | 880.9 |
Mortgage and asset-backed securities | ||
Investment securities | ||
Cost or amortized cost | 136.1 | 697.2 |
Gross unrealized gains | 0.1 | 1.6 |
Gross unrealized losses | (2.7) | (4.1) |
Net foreign currency gains | 0 | 0 |
Fixed maturity investments, at fair value | 133.5 | 694.7 |
Municipal obligations | ||
Investment securities | ||
Cost or amortized cost | 279 | 252 |
Gross unrealized gains | 2.4 | 3.7 |
Gross unrealized losses | (1.1) | (0.8) |
Net foreign currency gains | 0 | 0 |
Fixed maturity investments, at fair value | 280.3 | 254.9 |
Foreign government, agency and provincial obligations | ||
Investment securities | ||
Cost or amortized cost | 2.6 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Net foreign currency gains | 0.1 | |
Fixed maturity investments, at fair value | 2.7 | |
Total fixed maturity investments | ||
Investment securities | ||
Cost or amortized cost | 1,088.1 | 2,117.2 |
Gross unrealized gains | 3.6 | 8.2 |
Gross unrealized losses | (14.2) | (10.5) |
Net foreign currency gains | 0 | 14.8 |
Total fixed maturity investments | $ 1,077.5 | $ 2,129.7 |
Including Short Term Fixed | ||
Investment securities | ||
Duration of fixed maturities (years) | 3 years 5 months | |
Excluding Short Term Investments | ||
Investment securities | ||
Duration of fixed maturities (years) | 4 years |
Investment Securities (Cost and
Investment Securities (Cost and Amortized Cost Maturity Schedule) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Trading Securities by Maturity Cost or Amortized Cost | |
Cost of Amortized Cost | $ 1,088.1 |
Trading Securities by Maturity, Fair Value | |
Common equity securities | 1,077.5 |
Fixed Maturities and Convertible Fixed Maturities Excluding A B S M B S and Preferred Stock | |
Trading Securities by Maturity Cost or Amortized Cost | |
Due in one year or less | 84.8 |
Due after one year through five years | 500.8 |
Due after five years through ten years | 222.4 |
Due after ten years | 144 |
Trading Securities by Maturity, Fair Value | |
Due in one year or less | 84.4 |
Due after one year through five years | 496.2 |
Due after five years through ten years | 218 |
Due after ten years | 145.4 |
Mortgage and asset-backed securities | |
Trading Securities by Maturity Cost or Amortized Cost | |
Mortgage and asset-backed securities | 136.1 |
Trading Securities by Maturity, Fair Value | |
Mortgage and asset-backed securities | $ 133.5 |
Investment Securities (Cost or
Investment Securities (Cost or Amortized Cost, Gross Unrealized Investment Gains and Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment securities | |||
Sales and maturities of investment securities | $ 2,164.4 | $ 2,791.3 | $ 3,692.4 |
Common Stock | |||
Investment securities | |||
Cost or amortized cost | 904.7 | 739.7 | |
Gross unrealized gains | 51 | 129.4 | |
Gross unrealized losses | (30.1) | (3) | |
Net foreign currency gains | 0 | 0 | |
Fixed maturity investments, at fair value | 925.6 | 866.1 | |
Other long-term investments | |||
Investment securities | |||
Cost or amortized cost | 330.3 | 246.6 | |
Gross unrealized gains | 52.2 | 6.8 | |
Gross unrealized losses | (54.9) | (39.7) | |
Net foreign currency gains | (2) | (4.9) | |
Fixed maturity investments, at fair value | $ 325.6 | $ 208.8 |
Investment Securities (Invest_3
Investment Securities (Investments Held on Deposit or as Collateral) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Investments held in trusts | $ 254.3 | $ 204.6 |
Assets held by insurance regulators | $ 6.1 | $ 6 |
Percentage of investments recorded at fair value | 87.00% | 94.00% |
Investment Securities (Fair Val
Investment Securities (Fair Value Measurement by Level) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Investment | Dec. 31, 2017USD ($)Investment | Dec. 31, 2016USD ($) | |
Investment securities | |||
Percentage of investments recorded at fair value | 87.00% | 94.00% | |
Fair value investments | $ 2,328.7 | $ 3,208.3 | $ 2,547.3 |
U.S. Government and agency obligations | |||
Investment securities | |||
Cost or amortized cost | 154 | 297.8 | |
Debt securities issued by corporations | |||
Investment securities | |||
Cost or amortized cost | 519 | 867.6 | |
Fair value investments | 510.5 | 880.9 | |
Mortgage and asset-backed securities | |||
Investment securities | |||
Cost or amortized cost | 136.1 | 697.2 | |
Fair value investments | 133.5 | 694.7 | |
Municipal obligations | |||
Investment securities | |||
Cost or amortized cost | $ 279 | 252 | |
Foreign government, agency and provincial obligations | |||
Investment securities | |||
Cost or amortized cost | $ 2.6 | ||
Common Stock | |||
Investment securities | |||
Number of investments | Investment | 2 | 2 | |
Cost or amortized cost | $ 904.7 | $ 739.7 | |
Level 1 | |||
Investment securities | |||
Fair value investments | 842.6 | 890.4 | 279.5 |
Level 2 | |||
Investment securities | |||
Fair value investments | 1,160.5 | 2,105.4 | 2,093.8 |
Level 2 | Mortgage and asset-backed securities | |||
Investment securities | |||
Fair value investments | 133.5 | 694.7 | |
Level 3 Inputs | Mortgage and asset-backed securities | |||
Investment securities | |||
Fair value investments | 0 | $ 0 | |
Level 3 Inputs | Fixed maturity investments | |||
Investment securities | |||
Number of investments | Investment | 3 | ||
Fair value investments | $ 0 | 0 | |
Level 3 Inputs | Other long-term investments | |||
Investment securities | |||
Fair value investments | 138.7 | 77.2 | 91.4 |
Level 3 Inputs | Hedge Funds and Private Equity Funds | |||
Investment securities | |||
Fair value investments | $ 82.6 | ||
Fair Value Measured at Net Asset Value Per Share | Hedge Funds and Private Equity Funds | |||
Investment securities | |||
Fair value investments | 186.9 | 135.3 | |
Fair value measured on a recurring basis | |||
Investment securities | |||
Fair value investments | 2,542.9 | 3,384.4 | |
Fair value measured on a recurring basis | U.S. Government and agency obligations | |||
Investment securities | |||
Fair value investments | 153.2 | 296.5 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 510.5 | 880.9 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | Consumer | |||
Investment securities | |||
Fair value investments | 68.5 | 185.1 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | Communications | |||
Investment securities | |||
Fair value investments | 31.8 | 127.8 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | Financials | |||
Investment securities | |||
Fair value investments | 143.4 | 114.8 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | Utilities | |||
Investment securities | |||
Fair value investments | 19.8 | 108.9 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | Materials | |||
Investment securities | |||
Fair value investments | 26.3 | 95.5 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | Healthcare | |||
Investment securities | |||
Fair value investments | 55 | 94.3 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | Technology | |||
Investment securities | |||
Fair value investments | 60.5 | 80.5 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | Energy | |||
Investment securities | |||
Fair value investments | 57.6 | 48.1 | |
Fair value measured on a recurring basis | Debt securities issued by corporations | Industrial | |||
Investment securities | |||
Fair value investments | 47.6 | 25.9 | |
Fair value measured on a recurring basis | Mortgage and asset-backed securities | |||
Investment securities | |||
Fair value investments | 133.5 | 694.7 | |
Fair value measured on a recurring basis | Municipal obligations | |||
Investment securities | |||
Fair value investments | 280.3 | 254.9 | |
Fair value measured on a recurring basis | Foreign government, agency and provincial obligations | |||
Investment securities | |||
Fair value investments | 2.7 | ||
Fair value measured on a recurring basis | Fixed maturity investments | |||
Investment securities | |||
Fair value investments | 1,077.5 | 2,129.7 | |
Fair value measured on a recurring basis | Common equity securities | Consumer | |||
Investment securities | |||
Fair value investments | 6.2 | 10.7 | |
Fair value measured on a recurring basis | Common equity securities | Communications | |||
Investment securities | |||
Fair value investments | 12.7 | 10.9 | |
Fair value measured on a recurring basis | Common equity securities | Financials | |||
Investment securities | |||
Fair value investments | 13.5 | 16.3 | |
Fair value measured on a recurring basis | Common equity securities | Materials | |||
Investment securities | |||
Fair value investments | 3.1 | ||
Fair value measured on a recurring basis | Common equity securities | Healthcare | |||
Investment securities | |||
Fair value investments | 14 | 17.1 | |
Fair value measured on a recurring basis | Common equity securities | Technology | |||
Investment securities | |||
Fair value investments | 7.4 | 15.1 | |
Fair value measured on a recurring basis | Common equity securities | Energy | |||
Investment securities | |||
Fair value investments | 4.1 | 3.8 | |
Fair value measured on a recurring basis | Common equity securities | Industrial | |||
Investment securities | |||
Fair value investments | 11.4 | 11.9 | |
Fair value measured on a recurring basis | Common equity securities | Other | |||
Investment securities | |||
Fair value investments | 177.9 | 210.6 | |
Fair value measured on a recurring basis | Common equity securities | Exchange traded funds | |||
Investment securities | |||
Fair value investments | 675.3 | 569.7 | |
Fair value measured on a recurring basis | Common equity securities | Common equity securities | |||
Investment securities | |||
Fair value investments | 925.6 | 866.1 | |
Fair value measured on a recurring basis | Other long-term investments | |||
Investment securities | |||
Fair value investments | 138.7 | 77.2 | |
Fair value measured on a recurring basis | Level 1 | |||
Investment securities | |||
Fair value investments | 1,047 | 1,041.4 | |
Fair value measured on a recurring basis | Level 1 | U.S. Government and agency obligations | |||
Investment securities | |||
Fair value investments | 153.2 | 296.5 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Consumer | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Communications | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Financials | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Utilities | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Materials | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Healthcare | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Technology | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Energy | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Industrial | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Mortgage and asset-backed securities | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Municipal obligations | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Foreign government, agency and provincial obligations | |||
Investment securities | |||
Fair value investments | 0 | ||
Fair value measured on a recurring basis | Level 1 | Fixed maturity investments | |||
Investment securities | |||
Fair value investments | 153.2 | 296.5 | |
Fair value measured on a recurring basis | Level 1 | Short-term investments | |||
Investment securities | |||
Fair value investments | 204.4 | 151 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Consumer | |||
Investment securities | |||
Fair value investments | 6.2 | 10.7 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Communications | |||
Investment securities | |||
Fair value investments | 12.7 | 10.9 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Financials | |||
Investment securities | |||
Fair value investments | 13.5 | 16.3 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Materials | |||
Investment securities | |||
Fair value investments | 3.1 | ||
Fair value measured on a recurring basis | Level 1 | Common equity securities | Healthcare | |||
Investment securities | |||
Fair value investments | 14 | 17.1 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Technology | |||
Investment securities | |||
Fair value investments | 7.4 | 15.1 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Energy | |||
Investment securities | |||
Fair value investments | 4.1 | 3.8 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Industrial | |||
Investment securities | |||
Fair value investments | 11.4 | 11.9 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Other | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Exchange traded funds | |||
Investment securities | |||
Fair value investments | 617 | 508.1 | |
Fair value measured on a recurring basis | Level 1 | Common equity securities | Common equity securities | |||
Investment securities | |||
Fair value investments | 689.4 | 593.9 | |
Fair value measured on a recurring basis | Level 1 | Other long-term investments | |||
Investment securities | |||
Fair value investments | 0 | 3,208.3 | |
Fair value measured on a recurring basis | Level 2 | |||
Investment securities | |||
Fair value investments | 1,170.3 | 2,130.5 | |
Fair value measured on a recurring basis | Level 2 | U.S. Government and agency obligations | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 510.5 | 880.9 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Consumer | |||
Investment securities | |||
Fair value investments | 68.5 | 185.1 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Communications | |||
Investment securities | |||
Fair value investments | 31.8 | 127.8 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Financials | |||
Investment securities | |||
Fair value investments | 143.4 | 114.8 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Utilities | |||
Investment securities | |||
Fair value investments | 19.8 | 108.9 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Materials | |||
Investment securities | |||
Fair value investments | 26.3 | 95.5 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Healthcare | |||
Investment securities | |||
Fair value investments | 55 | 94.3 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Technology | |||
Investment securities | |||
Fair value investments | 60.5 | 80.5 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Energy | |||
Investment securities | |||
Fair value investments | 57.6 | 48.1 | |
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Industrial | |||
Investment securities | |||
Fair value investments | 47.6 | 25.9 | |
Fair value measured on a recurring basis | Level 2 | Mortgage and asset-backed securities | |||
Investment securities | |||
Fair value investments | 133.5 | 694.7 | |
Fair value measured on a recurring basis | Level 2 | Municipal obligations | |||
Investment securities | |||
Fair value investments | 280.3 | 254.9 | |
Fair value measured on a recurring basis | Level 2 | Foreign government, agency and provincial obligations | |||
Investment securities | |||
Fair value investments | 2.7 | ||
Fair value measured on a recurring basis | Level 2 | Fixed maturity investments | |||
Investment securities | |||
Fair value investments | 924.3 | 1,833.2 | |
Fair value measured on a recurring basis | Level 2 | Short-term investments | |||
Investment securities | |||
Fair value investments | 9.8 | 25.1 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Consumer | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Communications | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Financials | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Materials | |||
Investment securities | |||
Fair value investments | 0 | ||
Fair value measured on a recurring basis | Level 2 | Common equity securities | Healthcare | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Technology | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Energy | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Industrial | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Other | |||
Investment securities | |||
Fair value investments | 177.9 | 210.6 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Exchange traded funds | |||
Investment securities | |||
Fair value investments | 58.3 | 61.6 | |
Fair value measured on a recurring basis | Level 2 | Common equity securities | Common equity securities | |||
Investment securities | |||
Fair value investments | 236.2 | 272.2 | |
Fair value measured on a recurring basis | Level 2 | Other long-term investments | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | |||
Investment securities | |||
Fair value investments | 138.7 | 77.2 | |
Fair value measured on a recurring basis | Level 3 Inputs | U.S. Government and agency obligations | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | Consumer | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | Communications | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | Financials | |||
Investment securities | |||
Fair value investments | 0 | ||
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | Utilities | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | Materials | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | Healthcare | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | Technology | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | Energy | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Debt securities issued by corporations | Industrial | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Mortgage and asset-backed securities | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Municipal obligations | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Foreign government, agency and provincial obligations | |||
Investment securities | |||
Fair value investments | 0 | ||
Fair value measured on a recurring basis | Level 3 Inputs | Fixed maturity investments | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Short-term investments | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Consumer | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Communications | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Financials | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Materials | |||
Investment securities | |||
Fair value investments | 0 | ||
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Healthcare | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Technology | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Energy | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Industrial | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Other | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Exchange traded funds | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Common equity securities | Common equity securities | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Fair value measured on a recurring basis | Level 3 Inputs | Other long-term investments | |||
Investment securities | |||
Fair value investments | $ 138.7 | 77.2 | |
Fair value measured on a recurring basis | Fair Value Measured at Net Asset Value Per Share | Other long-term investments | |||
Investment securities | |||
Fair value investments | 135.3 | ||
Foreign Exchange Forward | Fair value measured on a recurring basis | Level 3 Inputs | Other long-term investments | |||
Investment securities | |||
Derivative, fair value, net | $ (3.7) |
Investment Securities (Debt Sec
Investment Securities (Debt Securities Issued By Corporation) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Investment securities | |||
Fair value investments | $ 2,328.7 | $ 3,208.3 | $ 2,547.3 |
Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 510.5 | 880.9 | |
AAA | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 8.9 | 1.6 | |
AA | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 88.7 | 42.6 | |
A | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 270.5 | 192.5 | |
BBB | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 142.4 | 465.2 | |
BB | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | 0 | 161.7 | |
B | Debt securities issued by corporations | |||
Investment securities | |||
Fair value investments | $ 0 | $ 17.3 |
Investment Securities (Mortgage
Investment Securities (Mortgage-backed Asset Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Investment securities | |||
Fair value investments | $ 2,328.7 | $ 3,208.3 | $ 2,547.3 |
FNMA | |||
Investment securities | |||
Fair value investments | 53.6 | 84.5 | |
FHLMC | |||
Investment securities | |||
Fair value investments | 38.1 | 62 | |
GNMA | |||
Investment securities | |||
Fair value investments | 23.7 | 46.3 | |
Total Agency | |||
Investment securities | |||
Fair value investments | 115.4 | 192.8 | |
Commercial | |||
Investment securities | |||
Fair value investments | 0 | 70.5 | |
Total non-agency | |||
Investment securities | |||
Fair value investments | 0 | 70.5 | |
Total mortgage-backed securities | |||
Investment securities | |||
Fair value investments | 115.4 | 263.3 | |
Vehicle receivables | |||
Investment securities | |||
Fair value investments | 9.2 | 142.4 | |
Credit card receivables | |||
Investment securities | |||
Fair value investments | 8.9 | 206 | |
Other | |||
Investment securities | |||
Fair value investments | 0 | 83 | |
Total other asset-backed securities | |||
Investment securities | |||
Fair value investments | 18.1 | 431.4 | |
Total mortgage and asset- backed securities | |||
Investment securities | |||
Fair value investments | 133.5 | 694.7 | |
Level 2 Inputs | |||
Investment securities | |||
Fair value investments | 1,160.5 | 2,105.4 | $ 2,093.8 |
Level 2 Inputs | FNMA | |||
Investment securities | |||
Fair value investments | 53.6 | 84.5 | |
Level 2 Inputs | FHLMC | |||
Investment securities | |||
Fair value investments | 38.1 | 62 | |
Level 2 Inputs | GNMA | |||
Investment securities | |||
Fair value investments | 23.7 | 46.3 | |
Level 2 Inputs | Total Agency | |||
Investment securities | |||
Fair value investments | 115.4 | 192.8 | |
Level 2 Inputs | Commercial | |||
Investment securities | |||
Fair value investments | 0 | 70.5 | |
Level 2 Inputs | Total non-agency | |||
Investment securities | |||
Fair value investments | 0 | 70.5 | |
Level 2 Inputs | Total mortgage-backed securities | |||
Investment securities | |||
Fair value investments | 115.4 | 263.3 | |
Level 2 Inputs | Vehicle receivables | |||
Investment securities | |||
Fair value investments | 9.2 | 142.4 | |
Level 2 Inputs | Credit card receivables | |||
Investment securities | |||
Fair value investments | 8.9 | 206 | |
Level 2 Inputs | Other | |||
Investment securities | |||
Fair value investments | 0 | 83 | |
Level 2 Inputs | Total other asset-backed securities | |||
Investment securities | |||
Fair value investments | 18.1 | 431.4 | |
Level 2 Inputs | Total mortgage and asset- backed securities | |||
Investment securities | |||
Fair value investments | 133.5 | 694.7 | |
Level 3 Inputs | FNMA | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | FHLMC | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | GNMA | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Total Agency | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Commercial | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Total non-agency | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Total mortgage-backed securities | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Vehicle receivables | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Credit card receivables | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Other | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Total other asset-backed securities | |||
Investment securities | |||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Total mortgage and asset- backed securities | |||
Investment securities | |||
Fair value investments | $ 0 | $ 0 |
Investment Securities (Other Lo
Investment Securities (Other Long-Term Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DavidShield & PassportCard | ||
Investment securities | ||
Other Investments | $ 75 | $ 21 |
Kudu | ||
Investment securities | ||
Other Investments | 30.7 | 0 |
Other unconsolidated private equity investments, at fair value | ||
Investment securities | ||
Other Investments | 60 | 62.2 |
Total unconsolidated entities | ||
Investment securities | ||
Other Investments | 165.7 | 83.2 |
Hedge Funds and Private Equity Funds | ||
Investment securities | ||
Other Investments | 146.1 | 125.3 |
Forward Contracts | ||
Investment securities | ||
Other Investments | 0 | (3.7) |
Other long-term investments | ||
Investment securities | ||
Other Investments | 13.8 | 4 |
White Mountains | ||
Investment securities | ||
Other Investments | $ 325.6 | $ 208.8 |
Investment Securities (Fair V_2
Investment Securities (Fair Value of Hedge Funds Subject to Restrictions on Redemption Frequency) (Details) $ in Millions | Dec. 31, 2018USD ($)fund | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Private equity funds | |||
Investment securities | |||
Number of investments held | fund | 12 | ||
Trading security, fair value | $ 91.8 | ||
Hedge funds | |||
Investment securities | |||
Number of investments held | fund | 1 | ||
Total private equity funds and hedge funds included in other long-term investments | |||
Investment securities | |||
Other long-term investments largest single investment | $ 54.3 | $ 54.9 | |
Trading security, fair value | 146.1 | 125.3 | |
Fair value unfunded commitments | 76.7 | 58.1 | |
Private equity funds | Private equity funds | |||
Investment securities | |||
Trading security, fair value | 91.8 | 70.4 | |
Fair value unfunded commitments | 76.7 | 58.1 | |
Private equity funds | Manufacturing/Industrial | |||
Investment securities | |||
Trading security, fair value | 42.9 | 43.3 | |
Fair value unfunded commitments | 10.5 | 10.4 | |
Private equity funds | Aerospace/Defense/Government | |||
Investment securities | |||
Trading security, fair value | 27.6 | 15.8 | |
Fair value unfunded commitments | 34.9 | 12.9 | |
Private equity funds | Direct lending | |||
Investment securities | |||
Trading security, fair value | 13 | 7.1 | |
Fair value unfunded commitments | 17.7 | 23.1 | |
Private equity funds | Financial services | |||
Investment securities | |||
Trading security, fair value | 8.3 | 4.2 | |
Fair value unfunded commitments | 13.6 | 11.7 | |
Hedge funds | Hedge funds | |||
Investment securities | |||
Trading security, fair value | 54.3 | 54.3 | 54.9 |
Fair value unfunded commitments | 0 | 0 | |
Hedge funds | Hedge Fund, Long/ Short Equity Banks and Financial | |||
Investment securities | |||
Trading security, fair value | $ 54.3 | 54.9 | |
Fair value unfunded commitments | $ 0 | $ 0 |
Investment Securities (Invest_4
Investment Securities (Investments In Private Equity Funds Subject to Lock-Up Periods) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Private equity funds | |||
Investment securities | |||
Trading security, fair value | $ 91.8 | ||
1 – 3 years | Private equity funds | |||
Investment securities | |||
Trading security, fair value | 1.8 | ||
3 – 5 years | Private equity funds | |||
Investment securities | |||
Trading security, fair value | 5.5 | ||
5 – 10 years | Private equity funds | |||
Investment securities | |||
Trading security, fair value | 63.2 | ||
10 years | Private equity funds | |||
Investment securities | |||
Trading security, fair value | 21.3 | ||
Hedge funds | Hedge funds | |||
Investment securities | |||
Trading security, fair value | $ 54.3 | $ 54.3 | $ 54.9 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | 45 years |
Investment Securities (Rollforw
Investment Securities (Rollforward of Fair Value Measurements by Level) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)Investment | Dec. 31, 2016USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | $ 3,208,300,000 | $ 2,547,300,000 | |
Total realized and unrealized gains (losses) | 99,800,000 | 157,400,000 | |
Amortization/Accretion | (2,500,000) | (9,100,000) | |
Purchases | 1,394,300,000 | 3,332,500,000 | |
Sales | (2,171,600,000) | (2,814,600,000) | |
Transfers in | 0 | 18,700,000 | |
Transfers out | 0 | (18,700,000) | |
Fair value investments | 2,328,700,000 | 3,208,300,000 | $ 2,547,300,000 |
Net realized and unrealized investment gains (losses), pre-tax | (108,300,000) | 133,300,000 | (27,400,000) |
Net realized and unrealized investment gains | (108,300,000) | 133,300,000 | (27,400,000) |
Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 3,384,400,000 | ||
Fair value investments | 2,542,900,000 | 3,384,400,000 | |
Fixed maturity investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 2,129,700,000 | ||
Fair value investments | 1,077,500,000 | 2,129,700,000 | |
Other long-term investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 77,200,000 | ||
Fair value investments | 138,700,000 | 77,200,000 | |
Short-term investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net realized and unrealized investment gains (losses), pre-tax | 800,000 | 300,000 | |
Short-term investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value disclosure, investments | 214,200,000 | 176,100,000 | 175,000,000 |
Foreign Currency on Cash and Open Trades | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net realized and unrealized investment gains (losses), pre-tax | 4,200,000 | ||
Foreign Exchange Forward | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net realized and unrealized investment gains (losses), pre-tax | 3,500,000 | 23,800,000 | |
Level 1 Inputs | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 890,400,000 | 279,500,000 | |
Total realized and unrealized gains (losses) | (64,900,000) | 82,700,000 | |
Amortization/Accretion | 200,000 | 0 | |
Purchases | 514,700,000 | 1,209,300,000 | |
Sales | (497,800,000) | (681,100,000) | |
Transfers in | 0 | 0 | |
Transfers out | 0 | 0 | |
Fair value investments | 842,600,000 | 890,400,000 | 279,500,000 |
Level 1 Inputs | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 1,041,400,000 | ||
Fair value investments | 1,047,000,000 | 1,041,400,000 | |
Level 1 Inputs | Fixed maturity investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 296,500,000 | ||
Fair value investments | 153,200,000 | 296,500,000 | |
Level 1 Inputs | Other long-term investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 3,208,300,000 | ||
Fair value investments | 0 | 3,208,300,000 | |
Level 1 Inputs | Short-term investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 151,000,000 | ||
Fair value investments | 204,400,000 | 151,000,000 | |
Level 2 Inputs | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 2,105,400,000 | 2,093,800,000 | |
Total realized and unrealized gains (losses) | (64,400,000) | 69,600,000 | |
Amortization/Accretion | (2,700,000) | (9,100,000) | |
Purchases | 783,800,000 | 2,007,900,000 | |
Sales | (1,661,600,000) | (2,070,300,000) | |
Transfers in | 0 | 18,700,000 | |
Transfers out | 0 | 0 | |
Fair value investments | 1,160,500,000 | 2,105,400,000 | 2,093,800,000 |
Level 2 Inputs | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 2,130,500,000 | ||
Fair value investments | 1,170,300,000 | 2,130,500,000 | |
Level 2 Inputs | Fixed maturity investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 1,833,200,000 | ||
Fair value investments | 924,300,000 | 1,833,200,000 | |
Level 2 Inputs | Other long-term investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 0 | ||
Fair value investments | 0 | 0 | |
Level 2 Inputs | Short-term investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 25,100,000 | ||
Fair value investments | 9,800,000 | 25,100,000 | |
Level 3 Inputs | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 77,200,000 | ||
Fair value investments | 138,700,000 | 77,200,000 | |
Level 3 Inputs | Fixed maturity investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 0 | 0 | |
Total realized and unrealized gains (losses) | 0 | ||
Amortization/Accretion | 0 | ||
Purchases | 31,200,000 | ||
Sales | (12,500,000) | ||
Transfers in | 0 | ||
Transfers out | (18,700,000) | ||
Fair value investments | $ 0 | 0 | |
Number of investments | Investment | 3 | ||
Level 3 Inputs | Fixed maturity investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 0 | ||
Fair value investments | 0 | $ 0 | |
Level 3 Inputs | Other long-term investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 77,200,000 | 91,400,000 | |
Total realized and unrealized gains (losses) | 16,200,000 | (15,300,000) | |
Amortization/Accretion | 0 | 0 | |
Purchases | 45,300,000 | 3,100,000 | |
Sales | 0 | (2,000,000) | |
Transfers in | 0 | 0 | |
Transfers out | 0 | 0 | |
Fair value investments | 138,700,000 | 77,200,000 | 91,400,000 |
Level 3 Inputs | Other long-term investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 77,200,000 | ||
Fair value investments | 138,700,000 | 77,200,000 | |
Level 3 Inputs | Hedge Funds and Private Equity Funds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 82,600,000 | ||
Total realized and unrealized gains (losses) | 20,400,000 | ||
Amortization/Accretion | 0 | ||
Purchases | 81,000,000 | ||
Sales | (48,700,000) | ||
Transfers in | 0 | ||
Transfers out | 0 | ||
Fair value investments | 82,600,000 | ||
Level 3 Inputs | Short-term investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 0 | ||
Fair value investments | 0 | 0 | |
Level 3 Inputs | Foreign Exchange Forward | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value disclosure, investments | (3,700,000) | (1,200,000) | |
Fair Value Measured at Net Asset Value Per Share | Other long-term investments | Fair value measured on a recurring basis | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 135,300,000 | ||
Fair value investments | 135,300,000 | ||
Fair Value Measured at Net Asset Value Per Share | Hedge Funds and Private Equity Funds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value investments | 135,300,000 | ||
Total realized and unrealized gains (losses) | 13,300,000 | ||
Amortization/Accretion | 0 | ||
Purchases | 50,500,000 | ||
Sales | (12,200,000) | ||
Transfers in | 0 | ||
Transfers out | 0 | ||
Fair value investments | $ 186,900,000 | 135,300,000 | |
Star & Shield Insurance Exchange | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net change in investments related to purchases and sales of consolidated/unconsolidated affiliates | (5,200,000) | ||
Star & Shield Insurance Exchange | Level 1 Inputs | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net change in investments related to purchases and sales of consolidated/unconsolidated affiliates | 0 | ||
Star & Shield Insurance Exchange | Level 1 Inputs | Short-term investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Short-term investments, at amortized cost (which approximates fair value) | 100,000 | ||
Star & Shield Insurance Exchange | Level 2 Inputs | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net change in investments related to purchases and sales of consolidated/unconsolidated affiliates | (5,200,000) | ||
Star & Shield Insurance Exchange | Level 3 Inputs | Fixed maturity investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net change in investments related to purchases and sales of consolidated/unconsolidated affiliates | 0 | ||
Star & Shield Insurance Exchange | Level 3 Inputs | Other long-term investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net change in investments related to purchases and sales of consolidated/unconsolidated affiliates | 0 | ||
Star & Shield Insurance Exchange | Level 3 Inputs | Hedge Funds and Private Equity Funds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net change in investments related to purchases and sales of consolidated/unconsolidated affiliates | $ 0 | ||
Star & Shield Insurance Exchange | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fixed maturity investments held-for-sale | $ 6,600,000 |
Investment Securities (Signific
Investment Securities (Significant Unobservable Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
DavidShield & PassportCard | Standard Poors NR Rating | Discounted cash flows | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 75 | |
Unobservable Input | 0.18 | |
DavidShield & PassportCard | Standard Poors NR Rating | Exit Revenue Multiple | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Unobservable Input | 1 | |
PassportCard | Discounted cash flows | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 21 | |
Unobservable Input | 0.25 | |
PassportCard | Standard Poors NR Rating | Exit Revenue Multiple | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Unobservable Input | 1 | |
Compare.com | Discounted cash flows | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 22.1 | |
Unobservable Input | 0.35 | |
Compare.com | Standard Poors NR Rating | Discounted cash flows | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 16.9 | |
Unobservable Input | 0.22 | |
Compare.com | Standard Poors NR Rating | Exit Revenue Multiple | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Unobservable Input | 2.75 | 1.75 |
YOUSURE Tarifvergleich GmbH “durchblicker” | Standard Poors NR Rating | Discounted cash flows | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 15.5 | $ 11.3 |
Unobservable Input | 0.23 | 0.21 |
YOUSURE Tarifvergleich GmbH “durchblicker” | Standard Poors NR Rating | Exit Revenue Multiple | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Unobservable Input | 2.25 | 1.75 |
Captricity | Discounted cash flows | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 14.5 | |
Unobservable Input | .30 | |
Captricity | Standard Poors NR Rating | Discounted cash flows | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 14.5 | |
Unobservable Input | 0.23 | |
Captricity | Standard Poors NR Rating | Exit Revenue Multiple | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Unobservable Input | 3.75 | 3.50 |
Galvanic | Multiple of EBITDA | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 0.6 | |
Unobservable Input | 6 | |
Galvanic | Standard Poors NR Rating | Multiple of EBITDA | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 3.1 | |
Unobservable Input | 6 | |
Private debt instrument | Standard Poors NR Rating | Discounted cash flows | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 10 | |
Unobservable Input | 0.0962 | |
OneTitle | Recent transaction | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Assets, fair value | $ 3.6 | |
Unobservable Input | 2.521 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Summary of Goodwill and Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||
Goodwill, fair value | $ 379.9 | $ 25.9 | |
Goodwill | 379.9 | 25.9 | $ 25.9 |
Other intangible assets, accumulated amortization | 53.6 | 34.8 | |
Other intangible assets, net | 155.4 | ||
Other intangible assets, gross (including goodwill) | 591.1 | 96.9 | |
Goodwill and other intangible assets | 537.5 | 62.1 | |
Goodwill, foreign currency translation gain | 0 | ||
NSM Holding Co LLC | |||
Goodwill [Line Items] | |||
Goodwill, fair value | 354.3 | 0 | |
Goodwill | 354.3 | 0 | |
Other intangible assets, fair value | 140.2 | 0 | |
Other intangible assets, accumulated amortization | 8.3 | 0 | |
Other intangible assets, net | 131.9 | 0 | |
MediaAlpha | |||
Goodwill [Line Items] | |||
Goodwill, fair value | 18.3 | 18.3 | |
Goodwill | 18.3 | 18.3 | |
Other intangible assets, fair value | 69.9 | 69.9 | |
Other intangible assets, accumulated amortization | 44.8 | 34.5 | |
Other intangible assets, net | 25.1 | 35.4 | |
Buzzmove | |||
Goodwill [Line Items] | |||
Goodwill, fair value | 7.3 | 7.6 | |
Goodwill | 7.3 | 7.6 | |
Other intangible assets, fair value | 1.1 | 1.1 | |
Other intangible assets, accumulated amortization | 0.5 | 0.3 | |
Other intangible assets, net | $ 0.6 | 0.8 | |
Customer Relationships | NSM Holding Co LLC | |||
Goodwill [Line Items] | |||
Acquired other intangible assets, weighted average useful life | 9 years | ||
Other intangible assets, fair value | $ 85.3 | 0 | |
Other intangible assets, accumulated amortization | 6 | 0 | |
Other intangible assets, net | $ 79.3 | 0 | |
Customer Relationships | MediaAlpha | |||
Goodwill [Line Items] | |||
Acquired other intangible assets, weighted average useful life | 9 years | ||
Other intangible assets, fair value | $ 26.8 | 26.8 | |
Other intangible assets, accumulated amortization | 4.9 | 2.4 | |
Other intangible assets, net | $ 21.9 | 24.4 | |
Trade Names | NSM Holding Co LLC | |||
Goodwill [Line Items] | |||
Acquired other intangible assets, weighted average useful life | 20 years | ||
Other intangible assets, fair value | $ 51.2 | 0 | |
Other intangible assets, accumulated amortization | 1.8 | 0 | |
Other intangible assets, net | $ 49.4 | 0 | |
Information Technology | NSM Holding Co LLC | |||
Goodwill [Line Items] | |||
Acquired other intangible assets, weighted average useful life | 5 years | ||
Other intangible assets, fair value | $ 3.7 | 0 | |
Other intangible assets, accumulated amortization | 0.5 | 0 | |
Other intangible assets, net | $ 3.2 | 0 | |
Information Technology | MediaAlpha | |||
Goodwill [Line Items] | |||
Acquired other intangible assets, weighted average useful life | 5 years | ||
Other intangible assets, fair value | $ 33.3 | 33.3 | |
Other intangible assets, accumulated amortization | 30.9 | 24.3 | |
Other intangible assets, net | $ 2.4 | 9 | |
Information Technology | Buzzmove | |||
Goodwill [Line Items] | |||
Acquired other intangible assets, weighted average useful life | 5 years | ||
Other intangible assets, fair value | $ 0.5 | 0.5 | |
Other intangible assets, accumulated amortization | 0.3 | 0.2 | |
Other intangible assets, net | $ 0.2 | 0.3 | |
Other | MediaAlpha | |||
Goodwill [Line Items] | |||
Acquired other intangible assets, weighted average useful life | 3 years | ||
Other intangible assets, fair value | $ 9.8 | 9.8 | |
Other intangible assets, accumulated amortization | 9 | 7.8 | |
Other intangible assets, net | 0.8 | 2 | |
Other Intangible Assets | |||
Goodwill [Line Items] | |||
Other intangible assets, fair value | 211.2 | 71 | |
Other intangible assets, accumulated amortization | 53.6 | 34.8 | |
Other intangible assets, net | 157.6 | 36.2 | |
Other Intangible Assets | NSM Holding Co LLC | |||
Goodwill [Line Items] | |||
Goodwill, foreign currency translation gain | $ (0.7) | ||
Trademarks | Buzzmove | |||
Goodwill [Line Items] | |||
Acquired other intangible assets, weighted average useful life | 7 years | ||
Other intangible assets, fair value | $ 0.6 | 0.6 | |
Other intangible assets, accumulated amortization | 0.2 | 0.1 | |
Other intangible assets, net | 0.4 | 0.5 | |
Non-controlling interests | |||
Goodwill [Line Items] | |||
Goodwill and other intangible assets | (40.6) | (21.1) | |
Parent | |||
Goodwill [Line Items] | |||
Goodwill and other intangible assets | 496.9 | 41 | |
Goodwill | |||
Goodwill [Line Items] | |||
Goodwill | 379.9 | $ 25.9 | |
Goodwill, foreign currency translation gain | (2.5) | ||
Goodwill | NSM Holding Co LLC | |||
Goodwill [Line Items] | |||
Goodwill, foreign currency translation gain | (2.2) | ||
Goodwill | Buzzmove | |||
Goodwill [Line Items] | |||
Goodwill, foreign currency translation gain | $ (0.3) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Goodwill and Intangible Assets Rollforward) (Details) - USD ($) $ in Millions | Oct. 05, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Roll Forward] | ||||
Beginning balance | $ 25.9 | $ 25.9 | ||
Acquisitions of businesses | 0 | |||
Foreign currency translation | 0 | |||
Ending balance | 379.9 | 25.9 | $ 25.9 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Amortization | (18.8) | (10.7) | (10.5) | |
Purchase of consolidated subsidiaries, net of cash acquired | 295.2 | 27.6 | 13.4 | |
Healthplans.com | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Purchase of consolidated subsidiaries, net of cash acquired | $ 28 | |||
Other Intangible Assets | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Beginning balance | 36.2 | 19.3 | ||
Acquisitions of businesses | 140.9 | 0 | ||
Acquisition of asset groups | 27.6 | |||
Foreign currency translation | (0.7) | 0 | ||
Amortization | (18.8) | (10.7) | ||
Ending balance | 157.6 | 36.2 | $ 19.3 | |
Goodwill | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 25.9 | |||
Acquisitions of businesses | 356.5 | |||
Foreign currency translation | (2.5) | |||
Ending balance | $ 379.9 | $ 25.9 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other intangible assets | $ 18.8 | $ 10.7 | $ 10.5 |
Finite-lived intangible assets, next twelve months | 18.1 | ||
Finite-lived intangible assets, year two | 16 | ||
Finite-lived intangible assets, year three | 16 | ||
Finite-lived intangible assets, year four | 15.8 | ||
Finite-lived intangible assets, year five and thereafter | 89.5 | ||
Total | $ 155.4 |
Debt (Debt Outstanding) (Detail
Debt (Debt Outstanding) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument | ||
Debt | $ 192.7 | $ 23.8 |
Other Debt | ||
Debt Instrument | ||
Debt | 1.9 | 0 |
White Mountains | WTM Bank Facility | ||
Debt Instrument | ||
Debt | 0 | 0 |
NSM Holding Co LLC | ||
Debt Instrument | ||
Debt | 178.5 | 0 |
MediaAlpha | ||
Debt Instrument | ||
Debt | 14.2 | 23.8 |
MediaAlpha | MediaAlpha Bank Facility | ||
Debt Instrument | ||
Debt instrument at face value | 14.3 | 23.9 |
Unamortized Debt Issuance Expense | (0.1) | (0.1) |
Debt | $ 14.2 | $ 23.8 |
Effective yield (as a percent) | 7.10% | 5.60% |
Term Loan | NSM Holding Co LLC | NSM Bank Facility | ||
Debt Instrument | ||
Debt instrument at face value | $ 180.4 | $ 0 |
Unamortized Debt Issuance Expense | $ (3.8) | 0 |
Debt | $ 0 | |
Effective yield (as a percent) | 7.40% | |
Term Loan | MediaAlpha | MediaAlpha Bank Facility | ||
Debt Instrument | ||
Debt instrument at face value | $ 14.3 |
Debt (Schedule of Contractual R
Debt (Schedule of Contractual Repayments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
Due in one year or less | $ 5.2 |
Due in two to three years | 10.4 |
Due in four to five years | 9.4 |
Due after five years | 171.9 |
Total | $ 196.9 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ in Millions | May 11, 2018USD ($)loans | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 15, 2018USD ($) | Oct. 05, 2017USD ($) | May 12, 2017USD ($) | Aug. 14, 2013USD ($) |
Debt Instrument | |||||||||
Interest expense on debt | $ 9.5 | $ 2.3 | $ 3 | ||||||
Repayments of debt, principal | 15.4 | 365 | 404.6 | ||||||
Debt | $ 192.7 | 192.7 | 23.8 | ||||||
Draw down of debt and revolving line of credit | 84.1 | 376 | 352.5 | ||||||
Interest paid | 8.8 | 1.4 | 2.1 | ||||||
WTM Bank Facility | |||||||||
Debt Instrument | |||||||||
Total commitment under revolving credit facility | $ 425 | ||||||||
Interest expense on debt | 0.3 | 0.6 | 1.2 | ||||||
NSM Holding Co LLC | |||||||||
Debt Instrument | |||||||||
Debt | 178.5 | 178.5 | 0 | ||||||
NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Total commitment under revolving credit facility | $ 100 | ||||||||
Number of delayed draw loans | loans | 2 | ||||||||
MediaAlpha | |||||||||
Debt Instrument | |||||||||
Debt | 14.2 | 14.2 | 23.8 | ||||||
MediaAlpha | MediaAlpha Bank Facility | |||||||||
Debt Instrument | |||||||||
Total commitment under revolving credit facility | $ 28.4 | $ 20 | |||||||
Interest expense on debt | 1.2 | 1 | 0.9 | ||||||
Debt instrument at face value | 14.3 | 14.3 | 23.9 | ||||||
Debt | $ 14.2 | $ 14.2 | $ 23.8 | ||||||
Effective yield (as a percent) | 7.10% | 7.10% | 5.60% | ||||||
Draw down of debt and revolving line of credit | $ 3 | $ 20 | |||||||
MediaAlpha | Previous MediaAlpha Bank Facility | |||||||||
Debt Instrument | |||||||||
Total commitment under revolving credit facility | $ 20 | 20 | |||||||
Repayments of debt, principal | $ 12.9 | ||||||||
Term Loan | MediaAlpha Bank Facility | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 1.50% | ||||||||
Term Loan | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Repayments of debt, principal | 0.8 | ||||||||
Debt instrument at face value | $ 180.4 | $ 180.4 | 0 | ||||||
Debt | 0 | ||||||||
Effective yield (as a percent) | 7.40% | 7.40% | |||||||
Term Loan | NSM Holding Co LLC | Ageas Bank Facility | |||||||||
Debt Instrument | |||||||||
Amount outstanding | $ 2.2 | $ 2.2 | |||||||
Fair value of amount outstanding | (0.3) | (0.3) | |||||||
Amortization of purchase accounting adjustment | (0.3) | ||||||||
Term Loan | MediaAlpha | MediaAlpha Bank Facility | |||||||||
Debt Instrument | |||||||||
Total commitment under revolving credit facility | 18.4 | 18.4 | |||||||
Repayments of debt, principal | 3.6 | 2.1 | |||||||
Debt instrument at face value | 14.3 | 14.3 | |||||||
Revolving Credit Facility | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Total commitment under revolving credit facility | $ 10 | ||||||||
Current borrowing capacity | 2 | ||||||||
Repayments of lines of credit | 2 | ||||||||
Revolving Credit Facility | MediaAlpha | MediaAlpha Bank Facility | |||||||||
Debt Instrument | |||||||||
Amount outstanding | 10 | 10 | |||||||
Repayments of debt, principal | $ 9 | 6 | |||||||
Basis spread on variable rate | 0.25% | ||||||||
Term Loan and Revolving Credit Loan | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Debt instrument at face value | $ 180.4 | $ 180.4 | |||||||
London Interbank Offered Rate (LIBOR) | Term Loan | Minimum | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 4.25% | 4.25% | |||||||
London Interbank Offered Rate (LIBOR) | Term Loan | Maximum | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 4.75% | 4.75% | |||||||
Prime Rate | Term Loan | Minimum | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 3.25% | 3.25% | |||||||
Prime Rate | Term Loan | Maximum | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 3.75% | 3.75% | |||||||
Interest Rate Swap | NSM Holding Co LLC | |||||||||
Debt Instrument | |||||||||
Fixed interest rate | 2.97% | 2.97% | |||||||
Variable interest rate | 2.52% | 2.52% | |||||||
Interest Rate Swap | Term Loan | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Total commitment under revolving credit facility | $ 151 | ||||||||
Fixed interest rate | 2.97% | 2.97% | |||||||
Variable interest rate | 2.52% | 2.52% | |||||||
Debt | $ 150.2 | $ 150.2 | |||||||
Debt, weighted average interest rate | 7.42% | 7.42% | |||||||
Fresh Insurance Services Group Limited | Term Loan | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Amount outstanding | 51 | ||||||||
KBK Insurance Group, Inc. & KBK Premium Services, Inc. | Term Loan | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Amount outstanding | $ 30.1 | ||||||||
NSM Holding Co LLC | |||||||||
Debt Instrument | |||||||||
Interest expense on debt | $ 8 | $ 0 | $ 0 | ||||||
Designated as Hedging Instrument | Interest Rate Swap | Term Loan | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Debt | $ 150.2 | $ 150.2 | |||||||
Debt, weighted average interest rate | 7.47% | 7.47% | |||||||
Not Designated as Hedging Instrument | Interest Rate Swap | Term Loan | NSM Holding Co LLC | NSM Bank Facility | |||||||||
Debt Instrument | |||||||||
Debt | $ 30 | $ 30 | |||||||
Effective yield (as a percent) | 6.85% | 6.85% |
Income Taxes (Income Tax (Benef
Income Taxes (Income Tax (Benefit) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax (expense) benefit: | |||||||||||
U.S. federal | $ (0.1) | $ (0.3) | $ 21.4 | ||||||||
State | (1.4) | (1.3) | (0.7) | ||||||||
Non-U.S. | (2.9) | (2) | (0.3) | ||||||||
Total current tax expense | (4.4) | (3.6) | 20.4 | ||||||||
Deferred income tax benefit: | |||||||||||
U.S. federal | 8.3 | 11.4 | 12.5 | ||||||||
Non-U.S. | 0.1 | 0 | 0 | ||||||||
Total deferred income tax benefit | 8.4 | 11.4 | 12.5 | ||||||||
Total income tax benefit | $ 3.6 | $ 3.6 | $ (2.5) | $ (0.7) | $ 2.5 | $ 4 | $ 1 | $ 0.3 | $ 4 | $ 7.8 | $ 32.9 |
Income Taxes (Effective Rate Re
Income Taxes (Effective Rate Reconciliation) (Details) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 21, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Contingency [Line Items] | |||||||||||||
U.S. statutory rate (as a percent) | 21.00% | 35.00% | 21.00% | 35.00% | |||||||||
Tax benefit (expense) at the U.S. statutory rate | $ 37.4 | $ (2.7) | $ 51.6 | ||||||||||
Differences in taxes resulting from: | |||||||||||||
Change in valuation allowance | (31) | 42.6 | 6.9 | ||||||||||
State taxes | 4 | 0.6 | (1.2) | ||||||||||
Non-U.S. earnings, net of foreign taxes | (2.9) | 21.5 | (19.2) | ||||||||||
Withholding tax | (2.7) | (2) | (0.2) | ||||||||||
Member’s surplus contributions (“MSC”) | (2.6) | (3) | (2.3) | ||||||||||
Tax rate changes | 1.7 | (44.3) | (3.9) | ||||||||||
Tax reserve adjustments | (0.8) | (0.3) | 0 | ||||||||||
Tax exempt interest and dividends | 0.6 | 0.5 | 0.1 | ||||||||||
Officer compensation | 0 | (4.1) | 0 | ||||||||||
Other, net | 0.3 | (1) | 1.1 | ||||||||||
Income tax (expense) benefit | $ 3.6 | $ 3.6 | $ (2.5) | $ (0.7) | $ 2.5 | $ 4 | $ 1 | $ 0.3 | 4 | 7.8 | 32.9 | ||
Pre-tax loss | $ (144.1) | $ 44.3 | $ (12.4) | $ (66) | $ 5.2 | $ 8.4 | $ (2.2) | $ (3.6) | (178.2) | 7.8 | (147.3) | ||
Tax Payments and Receipts | |||||||||||||
Net income tax payments to (receipts from) national governments, total | 3.5 | 2 | 0.3 | ||||||||||
Non-US | |||||||||||||
Differences in taxes resulting from: | |||||||||||||
Pre-tax loss | $ (30.1) | $ 71.3 | $ (66.3) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 21, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets related to: | |||||
U.S. federal and state net operating and capital loss carryforwards | $ 95.5 | $ 73 | |||
Non-U.S. net operating loss carryforwards | 36.6 | 33.9 | |||
Incentive compensation | 14.1 | 20.4 | |||
Investment basis difference | 11.1 | 4.9 | |||
Net unrealized investment losses | 9.5 | 0 | |||
Tax credit carryforwards | 4.2 | 1.3 | |||
Deferred acquisition costs | 3.5 | 2 | |||
Other items | 5.8 | 1.6 | |||
Total gross deferred tax assets | 180.3 | 137.1 | |||
Less: valuation allowances | 139.9 | 109.6 | |||
Total net deferred tax assets | 40.4 | 27.5 | |||
Deferred income tax liabilities related to: | |||||
Member surplus contributions (“MSC”) | 32.8 | 24.1 | |||
Net unrealized investment gains | 0 | 1 | |||
Purchase accounting | 4.2 | 0.2 | |||
Other items | 1.2 | 0.9 | |||
Total deferred tax liabilities | 38.2 | 26.2 | |||
Net deferred tax asset | $ 2.2 | $ 1.3 | |||
U.S. statutory rate (as a percent) | 21.00% | 35.00% | 21.00% | 35.00% | |
Percentage of utilization of net operating losses | 80.00% | ||||
Change in valuation allowance | $ 31 | $ (42.6) | $ (6.9) | ||
United States | |||||
Deferred income tax liabilities related to: | |||||
Provisional income tax expense | $ 43.1 |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance) (Details) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 21, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Valuation Allowance [Line Items] | |||||||||||||
Valuation allowance | $ 139.9 | $ 109.6 | $ 139.9 | $ 109.6 | |||||||||
Change in valuation allowance | $ 31 | $ (42.6) | $ (6.9) | ||||||||||
U.S. statutory rate (as a percent) | 21.00% | 35.00% | 21.00% | 35.00% | |||||||||
Income tax (expense) benefit | 3.6 | $ 3.6 | $ (2.5) | $ (0.7) | 2.5 | $ 4 | $ 1 | $ 0.3 | $ 4 | $ 7.8 | $ 32.9 | ||
U.S. losses and other federal deferred tax benefits | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Valuation allowance | 102.6 | 74.8 | 102.6 | 74.8 | |||||||||
Net operating losses in Luxembourg subsidiaries | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Valuation allowance | 21.1 | 21.1 | |||||||||||
Net Operating Losses in Israel Subsidiaries | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Valuation allowance | 14.5 | 13.5 | 14.5 | 13.5 | |||||||||
Net Operating Losses in Netherlands Subsidiaries | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Valuation allowance | 1.7 | 1.7 | |||||||||||
Luxembourg | U.S. losses and other federal deferred tax benefits | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Change in valuation allowance | 1.2 | 6.4 | |||||||||||
United States | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Provisional income tax expense | 43.1 | ||||||||||||
Israel | Net Operating Losses in Israel Subsidiaries | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Change in valuation allowance | 2.1 | 3 | |||||||||||
United Kingdom | Net Operating Losses in United Kingdom Subsidiaries | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Change in valuation allowance | 0.7 | 0.7 | |||||||||||
Subsidiaries | Luxembourg | Net operating losses in Luxembourg subsidiaries | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Valuation allowance | 20.3 | 20.3 | |||||||||||
Subsidiaries | United Kingdom | Net operating losses in Luxembourg subsidiaries | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Valuation allowance | $ 1 | 1 | |||||||||||
Guilford Holdings, Inc. | United States | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Change in valuation allowance | 22.7 | (21.5) | |||||||||||
U.S. statutory rate (as a percent) | 21.00% | 35.00% | |||||||||||
Provisional income tax expense | 20.4 | ||||||||||||
BAM | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Change in valuation allowance | 1.5 | (18.4) | |||||||||||
Provisional income tax expense | 22.7 | ||||||||||||
Income tax (expense) benefit | (8.7) | $ (10.1) | |||||||||||
White Mountains Catskill Holdings, Inc. | |||||||||||||
Valuation Allowance [Line Items] | |||||||||||||
Valuation allowance | $ 2.8 | $ 2.8 |
Income Taxes (Net Operating and
Income Taxes (Net Operating and Capital Loss Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Net deferred tax assets | ||
Total net deferred tax assets | $ 40.4 | $ 27.5 |
Alternative minimum tax credit carryforwards, not subject to expiration | 0.7 | |
United States | ||
Net deferred tax assets | ||
Operating loss carryforwards | 3.7 | |
Stock Compensation Plan [Member] | United States | ||
Net deferred tax assets | ||
Operating loss carryforwards | 6.8 | |
Operating and Capital Loss Carryforward | ||
Net deferred tax assets | ||
Operating loss carryforwards | 577.5 | |
Gross deferred tax asset | 126.3 | |
Valuation allowance | (123.1) | |
Total net deferred tax assets | 3.2 | |
Operating and Capital Loss Carryforward | United States | ||
Net deferred tax assets | ||
Operating loss carryforwards | 424.7 | |
Gross deferred tax asset | 89.7 | |
Valuation allowance | (87.3) | |
Total net deferred tax assets | 2.4 | |
Operating and Capital Loss Carryforward | Luxembourg | ||
Net deferred tax assets | ||
Operating loss carryforwards | 76.8 | |
Gross deferred tax asset | 20 | |
Valuation allowance | (20) | |
Total net deferred tax assets | 0 | |
Operating and Capital Loss Carryforward | United Kingdom | ||
Net deferred tax assets | ||
Operating loss carryforwards | 14.9 | |
Gross deferred tax asset | 2.6 | |
Valuation allowance | (1.8) | |
Total net deferred tax assets | 0.8 | |
Operating and Capital Loss Carryforward | Israel | ||
Net deferred tax assets | ||
Operating loss carryforwards | 61.1 | |
Gross deferred tax asset | 14 | |
Valuation allowance | (14) | |
Total net deferred tax assets | 0 | |
2019-2023 | Operating and Capital Loss Carryforward | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0.4 | |
2019-2023 | Operating and Capital Loss Carryforward | United States | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0.4 | |
2019-2023 | Operating and Capital Loss Carryforward | Luxembourg | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
2019-2023 | Operating and Capital Loss Carryforward | United Kingdom | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
2019-2023 | Operating and Capital Loss Carryforward | Israel | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
2024-2028 | Operating and Capital Loss Carryforward | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
2024-2028 | Operating and Capital Loss Carryforward | United States | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
2024-2028 | Operating and Capital Loss Carryforward | Luxembourg | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
2024-2028 | Operating and Capital Loss Carryforward | United Kingdom | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
2024-2028 | Operating and Capital Loss Carryforward | Israel | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
2029-2038 | Operating and Capital Loss Carryforward | ||
Net deferred tax assets | ||
Operating loss carryforwards | 389.8 | |
2029-2038 | Operating and Capital Loss Carryforward | United States | ||
Net deferred tax assets | ||
Operating loss carryforwards | 342.8 | |
2029-2038 | Operating and Capital Loss Carryforward | Luxembourg | ||
Net deferred tax assets | ||
Operating loss carryforwards | 47 | |
2029-2038 | Operating and Capital Loss Carryforward | United Kingdom | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
2029-2038 | Operating and Capital Loss Carryforward | Israel | ||
Net deferred tax assets | ||
Operating loss carryforwards | 0 | |
No expiration date | Operating and Capital Loss Carryforward | ||
Net deferred tax assets | ||
Operating loss carryforwards | 187.3 | |
No expiration date | Operating and Capital Loss Carryforward | United States | ||
Net deferred tax assets | ||
Operating loss carryforwards | 81.5 | |
No expiration date | Operating and Capital Loss Carryforward | Luxembourg | ||
Net deferred tax assets | ||
Operating loss carryforwards | 29.8 | |
No expiration date | Operating and Capital Loss Carryforward | United Kingdom | ||
Net deferred tax assets | ||
Operating loss carryforwards | 14.9 | |
No expiration date | Operating and Capital Loss Carryforward | Israel | ||
Net deferred tax assets | ||
Operating loss carryforwards | $ 61.1 |
Income Taxes (ASC 740-10) (Deta
Income Taxes (ASC 740-10) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Percentage of likelihood for realization of benefit upon ultimate settlement | 50.00% | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning | $ 0.3 | $ 0 | |
Changes in prior year tax positions | 0.8 | 0.1 | |
Tax positions taken during the current year | 0.2 | ||
Balance at year end | 1.1 | 0.3 | $ 0 |
Permanent Differences | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning | 0.3 | 0 | |
Changes in prior year tax positions | 0.8 | 0.1 | |
Tax positions taken during the current year | 0.2 | ||
Balance at year end | 1.1 | 0.3 | 0 |
Temporary Differences | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning | 0 | 0 | |
Changes in prior year tax positions | 0 | 0 | |
Tax positions taken during the current year | 0 | ||
Balance at year end | 0 | 0 | 0 |
Interest and Penalties Net of Tax Benefit | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning | 0 | 0 | |
Changes in prior year tax positions | 0 | 0 | |
Tax positions taken during the current year | 0 | ||
Balance at year end | $ 0 | $ 0 | $ 0 |
Income Taxes (Tax Examinations)
Income Taxes (Tax Examinations) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2016 |
Income Tax Examination [Line Items] | |||
Gross deferred income tax assets | $ 180.3 | $ 137.1 | |
Tax Year 2012 | |||
Income Tax Examination [Line Items] | |||
Gross deferred income tax assets | $ 0.6 | ||
Valuation allowance | $ 0.6 |
Derivatives (Details)
Derivatives (Details) $ in Millions | Dec. 31, 2017USD ($) |
Derivative [Line Items] | |
Notional amount | $ 206.3 |
Derivatives (Pre-Tax Operating
Derivatives (Pre-Tax Operating Results of WM Life Re) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pre-tax operating results of WM Life Re | |||||||||||
Total revenues | $ 6 | $ 198.7 | $ 122.3 | $ 42.1 | $ 114 | $ 87.5 | $ 83.5 | $ 88.8 | $ 369.1 | $ 373.8 | $ 157.7 |
General and administrative expenses | (235.7) | (208) | (175.5) | ||||||||
Pre-tax income (loss) | $ (144.1) | $ 44.3 | $ (12.4) | $ (66) | $ 5.2 | $ 8.4 | $ (2.2) | $ (3.6) | $ (178.2) | $ 7.8 | (147.3) |
White Mountains Life Re | |||||||||||
Pre-tax operating results of WM Life Re | |||||||||||
Fees, included in other revenue | 1.2 | ||||||||||
Change in fair value of variable annuity liability, included in other revenue | (0.3) | ||||||||||
Change in fair value of derivatives, included in other revenue | (2) | ||||||||||
Foreign exchange, included in other revenue | 1.3 | ||||||||||
Total revenues | 0.2 | ||||||||||
Liability for Future Policy Benefits, Other Increase (Decrease) | (0.3) | ||||||||||
General and administrative expenses | (2.6) | ||||||||||
Pre-tax income (loss) | $ (2.7) |
Derivatives (Realized and Unrea
Derivatives (Realized and Unrealized Gains (Losses)) (Details) - White Mountains Life Re $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Realized and unrealized derivative gains (losses) recognized in other revenues and carrying values of instruments | |
Change in fair value of derivatives, included in other revenue | $ (2) |
Fixed income/interest rate | |
Realized and unrealized derivative gains (losses) recognized in other revenues and carrying values of instruments | |
Change in fair value of derivatives, included in other revenue | 1.8 |
Foreign exchange | |
Realized and unrealized derivative gains (losses) recognized in other revenues and carrying values of instruments | |
Change in fair value of derivatives, included in other revenue | (4.8) |
Equity | |
Realized and unrealized derivative gains (losses) recognized in other revenues and carrying values of instruments | |
Change in fair value of derivatives, included in other revenue | $ 1 |
Derivatives (Variable Annuity R
Derivatives (Variable Annuity Reinsurance Liabilities and Derivative Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in derivative instruments | |||
Purchases | $ 1,394.3 | $ 3,332.5 | |
Level 2 | |||
Changes in derivative instruments | |||
Purchases | 783.8 | 2,007.9 | |
Level 1 | |||
Changes in derivative instruments | |||
Purchases | $ 514.7 | 1,209.3 | |
White Mountains Life Re | |||
Changes in derivative instruments | |||
Realized and unrealized gains (losses) | $ (2) | ||
Variable Annuity Liabilities | White Mountains Life Re | Level 3 | |||
Changes in variable annuity (liabilities) | |||
Beginning balance | 0 | 0.3 | |
Purchases | 0 | ||
Realized and unrealized (losses) gains | (0.3) | ||
Transfers in | 0 | ||
Sales/settlements | 0 | ||
Ending balance | 0 | ||
Derivative Instruments | White Mountains Life Re | |||
Changes in derivative instruments | |||
Beginning of period | 0 | 20.1 | |
Purchases | 0 | ||
Realized and unrealized gains (losses) | 2 | ||
Transfers in | 0 | ||
Sales/settlements | (18.1) | ||
Ending balance | 0 | ||
Derivative Instruments | White Mountains Life Re | Level 3 | |||
Changes in derivative instruments | |||
Beginning of period | 0 | 2.7 | |
Purchases | 0 | ||
Realized and unrealized gains (losses) | (2.9) | ||
Transfers in | 0 | ||
Sales/settlements | (5.6) | ||
Ending balance | 0 | ||
Derivative Instruments | White Mountains Life Re | Level 2 | |||
Changes in derivative instruments | |||
Beginning of period | 0 | 16.5 | |
Purchases | 0 | ||
Realized and unrealized gains (losses) | 0.7 | ||
Transfers in | 0 | ||
Sales/settlements | (15.8) | ||
Ending balance | 0 | ||
Derivative Instruments | White Mountains Life Re | Level 1 | |||
Changes in derivative instruments | |||
Beginning of period | $ 0 | 0.9 | |
Purchases | 0 | ||
Realized and unrealized gains (losses) | 4.2 | ||
Transfers in | 0 | ||
Sales/settlements | 3.3 | ||
Ending balance | $ 0 |
Derivatives (Forward Contracts)
Derivatives (Forward Contracts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Notional amount | $ 206.3 | ||
Forward Contracts | |||
Derivative [Line Items] | |||
Realized and unrealized gains (losses) | $ 3.5 | 23.8 | $ 1.2 |
Other unconsolidated investments | |||
Derivative [Line Items] | |||
Net amount recognized in other long-term investments | (3.7) | $ (1.2) | |
A | Barclays | Forward Contracts | |||
Derivative [Line Items] | |||
Notional amount | 206.3 | ||
Carrying Value | (3.7) | ||
GBP | |||
Derivative [Line Items] | |||
Notional amount | $ 152 |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swap (Details) - USD ($) | 8 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Jun. 15, 2018 | May 11, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||||
Debt | $ 192,700,000 | $ 192,700,000 | $ 23,800,000 | ||
NSM Holding Co LLC | |||||
Derivative [Line Items] | |||||
Debt | $ 178,500,000 | $ 178,500,000 | 0 | ||
NSM Bank Facility | NSM Holding Co LLC | |||||
Derivative [Line Items] | |||||
Total commitment under revolving credit facility | $ 100,000,000 | ||||
NSM Bank Facility | NSM Holding Co LLC | Term Loan | |||||
Derivative [Line Items] | |||||
Debt | $ 0 | ||||
NSM Bank Facility | NSM Holding Co LLC | Term Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Derivative [Line Items] | |||||
Basis spread on variable rate | 4.25% | 4.25% | |||
NSM Bank Facility | NSM Holding Co LLC | Term Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Derivative [Line Items] | |||||
Basis spread on variable rate | 4.75% | 4.75% | |||
NSM Bank Facility | NSM Holding Co LLC | Term Loan | Prime Rate | Minimum | |||||
Derivative [Line Items] | |||||
Basis spread on variable rate | 3.25% | 3.25% | |||
NSM Bank Facility | NSM Holding Co LLC | Term Loan | Prime Rate | Maximum | |||||
Derivative [Line Items] | |||||
Basis spread on variable rate | 3.75% | 3.75% | |||
Interest Rate Swap | NSM Holding Co LLC | |||||
Derivative [Line Items] | |||||
Fixed interest rate | 2.97% | 2.97% | |||
Variable interest rate | 2.52% | 2.52% | |||
Net interest expense | $ 700,000 | ||||
Derivative, fair value, net | 2,700,000 | $ 2,700,000 | |||
Change in the fair value of the swap | $ (2,700,000) | ||||
Interest Rate Swap | NSM Bank Facility | NSM Holding Co LLC | Term Loan | |||||
Derivative [Line Items] | |||||
Total commitment under revolving credit facility | $ 151,000,000 | ||||
Fixed interest rate | 2.97% | 2.97% | |||
Variable interest rate | 2.52% | 2.52% | |||
Debt | $ 150,200,000 | $ 150,200,000 | |||
Debt, weighted average interest rate | 7.42% | 7.42% | |||
Designated as Hedging Instrument | Interest Rate Swap | NSM Bank Facility | NSM Holding Co LLC | Term Loan | |||||
Derivative [Line Items] | |||||
Debt | $ 150,200,000 | $ 150,200,000 | |||
Debt, weighted average interest rate | 7.47% | 7.47% |
Municipal Bond Guarantee Insu_3
Municipal Bond Guarantee Insurance (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2018USD ($) | Dec. 31, 2018USD ($)Contract | Dec. 31, 2017USD ($)yrContract | Dec. 31, 2016USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2019 | |
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Supplement Trust Target | $ 603 | |||||
Percentage of par value of policy reinsured | 15.00% | 15.00% | ||||
Percentage of risk premium ceded | 60.00% | |||||
Repayments of debt, principal | $ 15.4 | $ 365 | $ 404.6 | |||
Interest paid | 8.8 | $ 1.4 | $ 2.1 | |||
Percentage of discounted future cash flows | 10.00% | |||||
Unearned premium revenue | 176 | $ 136.8 | ||||
White Mountains | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Capital contributions | $ 594.5 | |||||
HG Global | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Surplus notes | 503 | |||||
Assets Held-in-trust | $ 100 | |||||
BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Year of U.S. Treasury Rate | yr | 1 | |||||
Contracts outstanding | Contract | 7,525 | 6,371 | ||||
Remaining weighted average contract period (in years) | 10 years 8 months | 10 years 11 months | ||||
Municipal bond outstanding principal | $ 52,201.6 | $ 42,090.6 | ||||
Municipal bond outstanding interest | 26,560.3 | 21,057.1 | ||||
Municipal bond debt service outstanding | 78,761.9 | $ 63,147.7 | ||||
Unearned premium revenue | 176 | |||||
January 1, 2019 - March 31, 2019 | 4.1 | |||||
April 1, 2019 - June 30, 2019 | 4 | |||||
July 1, 2019 - September 30, 2019 | 4 | |||||
October 1, 2019 - December 31, 2019 | 3.8 | |||||
2,019 | 15.9 | |||||
2,020 | 15 | |||||
2,021 | 14 | |||||
2,022 | 13.2 | |||||
2,023 | 12.3 | |||||
2024 and thereafter | $ 105.6 | |||||
BAM Management | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Capital contributions | $ 14.5 | |||||
Preferred stocks | HG Global | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Ownership interest (as a percent) | 96.90% | 96.90% | ||||
Common Stock | HG Global | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Ownership interest (as a percent) | 88.40% | 88.40% | ||||
HG Global | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Percentage of par value of policy reinsured | 15.00% | |||||
Collateral held in supplement trust | $ 757.4 | $ 715.1 | ||||
Interest receivable | 143.7 | 126 | ||||
BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Surplus notes | $ 481.3 | $ 499 | ||||
Surplus Note | BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Interest rate (as a percent) | 4.60% | 3.78% | ||||
Basis spread on variable rate | 300.00% | |||||
Surplus Note | BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Repayments of debt, principal | $ 17.7 | $ 4 | ||||
Interest paid | 5.3 | $ 1 | ||||
Combination One | Surplus Note | BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Number of years of change in interest rate | yr | 5 | |||||
Fixed interest rate | Surplus Note | BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Interest rate (as a percent) | 8.00% | |||||
Forecast | Surplus Note | BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Interest rate (as a percent) | 5.70% | |||||
Series A BAM Surplus Note | HG Global | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Surplus notes | $ 203 | |||||
Series B BAM Surplus Note | HG Global | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Surplus notes | $ 300 | |||||
BAM | Fidus Re Ltd. | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Losses above retention, percentage of liability | 90.00% | |||||
Fidus Re Ltd. | BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Insurance linked securities | $ 100 | |||||
Collateralized financial guarantee, term | 12 years | |||||
Collateral Financial Guarantee, Callable Term | 5 years | |||||
Liabilities for guarantees on long-duration contracts, guaranteed benefit liability, gross | $ 165 | |||||
Percentage of Quota Share Reinsurance Agreement | 100.00% | |||||
Financial guarantee insurance contracts, reimbusement | 100 | |||||
Direct written premiums | $ 2,200 | |||||
Minimum | Fidus Re Ltd. | BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Liabilities for guarantees on long-duration contracts, guaranteed benefit liability, gross | $ 165 | |||||
Maximum | Fidus Re Ltd. | BAM | ||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||||
Liabilities for guarantees on long-duration contracts, guaranteed benefit liability, gross | $ 276 |
Municipal Bond Guarantee Insu_4
Municipal Bond Guarantee Insurance Schedule of Net Written Premiums (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earned premiums: | |||
Net earned premiums | $ 13.9 | $ 10.4 | $ 13.4 |
HG/BAM | |||
Written premiums: | |||
Direct | 44.8 | 63.2 | 38.6 |
Assumed | 8.1 | 0 | 0 |
Net written premiums | 52.9 | 63.2 | 38.6 |
Earned premiums: | |||
Net earned premiums | 13.6 | 9.4 | 5.9 |
Assumed | 0.3 | 0 | 0 |
Net earned premiums | $ 13.9 | $ 9.4 | $ 5.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic and diluted earnings per share numerators (in millions): | |||||||||||
Net income attributable to White Mountains’s common shareholders | $ (137.5) | $ 40.8 | $ 3.5 | $ (48) | $ 22.5 | $ 562.1 | $ 13.6 | $ 29 | $ (141.2) | $ 627.2 | $ 401.8 |
Less: total (loss) income from discontinued operations, net of tax | (17.2) | 577.5 | 523.4 | ||||||||
Net income (loss) attributable to White Mountains’ common shareholders | (124) | 49.7 | (121.6) | ||||||||
Allocation of earnings (losses) to participating restricted common shares | 1.4 | (0.7) | 1.5 | ||||||||
Basic and diluted earnings per share numerators | $ (122.6) | $ 49 | $ (120.1) | ||||||||
Basic earnings per share denominators (in thousands): | |||||||||||
Weighted Average Number of Shares Issued, Basic | 3,382,500 | 4,293,800 | 5,014,900 | ||||||||
Average unvested restricted common shares | (40,100) | (54,300) | (64,800) | ||||||||
Basic (losses) earnings per share denominator | 3,342,400 | 4,239,500 | 4,950,100 | ||||||||
Diluted earnings per share denominator (in thousands): | |||||||||||
Average outstanding dilutive options to acquire common shares | 3,382,500 | 4,293,800 | 5,018,100 | ||||||||
Average unvested restricted common shares | (40,100) | (54,300) | (64,800) | ||||||||
Diluted earnings (loss) per share denominator | 3,342,400 | 4,239,500 | 4,953,300 | ||||||||
Diluted earnings per share (in dollars) - continuing operations: | |||||||||||
Dividends declared and paid | $ 1 | $ 1 | $ 1 | ||||||||
Undistributed earnings (loss) | (37.67) | 10.56 | (25.26) | ||||||||
Basic and diluted (losses) earnings per share | $ (36.67) | $ 11.56 | $ (24.26) |
Earnings Per Share (Footnotes)
Earnings Per Share (Footnotes) (Details) | 12 Months Ended |
Dec. 31, 2016shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Incremental common shares attributable to share-based payment arrangements | 3,217 |
Discontinued Operations | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Incremental common shares attributable to share-based payment arrangements | 40,000 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Undistributed Net Earnings) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net (loss) income attributable to White Mountains’s common shareholders, net of restricted common share amounts | $ (122,600,000) | $ 49,000,000 | $ (120,100,000) |
Dividends declared, net of restricted common share amounts | (3,700,000) | (4,500,000) | (5,400,000) |
Total undistributed net (losses) earnings, net of restricted common share amounts | $ (126,300,000) | $ 44,500,000 | $ (125,500,000) |
Employee Share-Based Incentiv_3
Employee Share-Based Incentive Compensation Plans (WTM Performance Shares) (Details) - Performance Shares $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)multipliershares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Range Of Performance Cycle From 2013 to 2015 | |||
Unamortized grant date fair value | |||
Vested (in shares) | 5,000 | ||
White Mountains | |||
Share-based compensation arrangement by share-based payment award | |||
Multiplier for determining payout, low end of range | multiplier | 0 | ||
Multiplier for determining payout, high end of range | multiplier | 2 | ||
Performance cycle period | 3 years | ||
W T M Incentive Plan | White Mountains | |||
Target Performance Share activity | |||
Beginning of period | 50,515 | 80,353 | 93,654 |
Shares paid or expired | (23,186) | (30,838) | (36,294) |
New grants | 14,105 | 17,710 | 22,615 |
Forfeitures | (818) | (16,710) | 378 |
End of period | 40,616 | 50,515 | 80,353 |
Unamortized grant date fair value | |||
Beginning of period | $ | $ 45.8 | $ 42.4 | $ 57.7 |
Shares paid or expired | $ | (28.4) | (21.9) | 41 |
Forfeitures | $ | 0.1 | (9.3) | 0.5 |
Expense recognized | $ | 14.2 | 34.6 | 25.2 |
End of period | $ | 31.7 | $ 45.8 | $ 42.4 |
Unamortized grant date fair value | $ | $ 13.8 | ||
W T M Incentive Plan | Sirius Group | |||
Target Performance Share activity | |||
Beginning of period | 2,195 | 7,315 | |
End of period | 0 | 2,195 | 7,315 |
W T M Incentive and Phantom Plan | Range Of Performance Cycle From 2015 to 2017 | |||
Unamortized grant date fair value | |||
Performance goal percentage for minimum payout | 145.00% | ||
Payout for maximum growth target percentage | 147.00% | ||
W T M Incentive and Phantom Plan | Range Of Performance Cycle From 2014 to 2016 | |||
Unamortized grant date fair value | |||
Performance goal percentage for minimum payout | 34.00% | ||
Payout for maximum growth target percentage | 76.00% | ||
W T M Incentive and Phantom Plan | Range Of Performance Cycle From 2013 to 2015 | |||
Unamortized grant date fair value | |||
Performance goal percentage for minimum payout | 140.00% | ||
Payout for maximum growth target percentage | 142.00% |
Employee Share-Based Incentiv_4
Employee Share-Based Incentive Compensation Plans (WTM Performance Shares Granted Under the WTM Incentive Plan) (Details) - W T M Incentive Plan - Performance Shares - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Range Of Performance Cycle 2018 to 2020 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Targeted performance goal for personnel expressed as percentage of growth in intrinsic business value per share | 6.00% | |||
Payout for maximum growth target percentage | 200.00% | |||
Range Of Performance Cycle From 2017-2019 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Targeted performance goal for personnel expressed as percentage of growth in intrinsic business value per share | 5.00% | |||
Payout for maximum growth target percentage | 200.00% | |||
Range Of Performance Cycle From 2016-2018 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Targeted performance goal for personnel expressed as percentage of growth in intrinsic business value per share | 4.00% | |||
Payout for maximum growth target percentage | 200.00% | |||
White Mountains | ||||
Share-based compensation arrangement by share-based payment award | ||||
Options nonvested, number before forfeitures (in shares) | 41,235 | |||
Incentive compensation payable before forfeitures | $ 32.2 | |||
Assumed forfeitures (shares) | (619) | |||
Assumed forfeitures in period amount | (0.5) | |||
Shares outstanding (in shares) | 40,616 | 50,515 | 80,353 | 93,654 |
Accrued incentive compensation | $ 31.7 | $ 45.8 | $ 42.4 | $ 57.7 |
White Mountains | Range Of Performance Cycle 2018 to 2020 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Options nonvested, number before forfeitures (in shares) | 13,450 | |||
Incentive compensation payable before forfeitures | $ 3.8 | |||
White Mountains | Range Of Performance Cycle From 2017-2019 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Options nonvested, number before forfeitures (in shares) | 14,070 | |||
Incentive compensation payable before forfeitures | $ 11.9 | |||
White Mountains | Range Of Performance Cycle From 2016-2018 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Options nonvested, number before forfeitures (in shares) | 13,715 | |||
Incentive compensation payable before forfeitures | $ 16.5 | |||
Minimum | Range Of Performance Cycle 2018 to 2020 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Performance goal percentage for minimum payout | 2.00% | |||
Minimum | Range Of Performance Cycle From 2017-2019 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Performance goal percentage for minimum payout | 1.00% | |||
Minimum | Range Of Performance Cycle From 2016-2018 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Performance goal percentage for minimum payout | 0.00% | |||
Maximum | Range Of Performance Cycle 2018 to 2020 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Performance goal percentage for minimum payout | 10.00% | |||
Maximum | Range Of Performance Cycle From 2017-2019 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Performance goal percentage for minimum payout | 9.00% | |||
Maximum | Range Of Performance Cycle From 2016-2018 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Performance goal percentage for minimum payout | 8.00% |
Employee Share-Based Incentiv_5
Employee Share-Based Incentive Compensation Plans (WTM Restricted Shares) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
W T M Incentive and Phantom Plan | Restricted Share Cliff Vesting in January 2021 [Member] | |||
Target Performance Share activity | |||
Issued (in shares) | 13,450 | ||
W T M Incentive and Phantom Plan | Restricted Share Cliff Vesting in January 2020 | |||
Target Performance Share activity | |||
Issued (in shares) | 290 | 17,485 | |
W T M Incentive and Phantom Plan | Restricted Share Cliff Vesting in January 2019 | |||
Target Performance Share activity | |||
Issued (in shares) | 365 | 250 | 24,615 |
W T M Incentive and Phantom Plan | Restricted Share Cliff Vesting in January 2018 | |||
Target Performance Share activity | |||
Issued (in shares) | 250 | 750 | |
White Mountains | W T M Incentive Plan | Restricted Stock | |||
Target Performance Share activity | |||
Beginning of period | 53,755 | 70,620 | 70,675 |
Issued (in shares) | 14,105 | 17,985 | 25,365 |
Vested (in shares) | (25,381) | (28,846) | (24,620) |
Assumed forfeitures and cancellations (in shares) | (969) | (6,004) | (800) |
End of period | 41,510 | 53,755 | 70,620 |
Unamortized grant date fair value | |||
Beginning balance | $ 14.3 | $ 19.7 | $ 15.7 |
Issued | 11.4 | 16.3 | 20.2 |
Assumed forfeitures and cancellations | (0.2) | (3.5) | (0.3) |
Expense recognized | (13) | (18.2) | (15.9) |
Ending balance | $ 12.5 | $ 14.3 | $ 19.7 |
Sirius Group | W T M Incentive Plan | Restricted Stock | |||
Target Performance Share activity | |||
Beginning of period | 2,195 | 5,235 | |
End of period | 0 | 2,195 | 5,235 |
Employee Share-Based Incentiv_6
Employee Share-Based Incentive Compensation Plans (WTM Non-Qualified Options) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 20, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Share-based compensation arrangement by share-based payment award | |||
Shares issued, price per share | $ 742 | ||
Employee Stock Option | Combination One | |||
Share-based compensation arrangement by share-based payment award | |||
Non-option equity instruments, exercised | 5,000 | ||
Exercises in period, intrinsic value | $ 0.4 | ||
Shares issued, price per share | $ 742 | ||
Employee Stock Option | Combination Two | |||
Share-based compensation arrangement by share-based payment award | |||
Non-option equity instruments, exercised | 80,000 | ||
Exercises in period, intrinsic value | $ 8.4 | ||
Conversion of stock, shares converted | 9,930 | ||
Employee Stock Option | Chief Executive Officer | |||
Share-based compensation arrangement by share-based payment award | |||
Non-option equity instruments, exercised | 125,000 | 40,000 | |
Exercises in period, intrinsic value | $ 4.4 | ||
Common Stock | |||
Share-based compensation arrangement by share-based payment award | |||
Conversion of stock, shares converted | 5,142 |
Employee Share-Based Incentiv_7
Employee Share-Based Incentive Compensation Plans (MediaAlpha Class B Unit Awards) (Details) - Capital Unit, Class B - MediaAlpha $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Share-based compensation arrangement by share-based payment award | |
Expense recognized | $ 11.7 |
Compensation not recognized | $ 3.3 |
Minimum | |
Share-based compensation arrangement by share-based payment award | |
Award service period | 36 months |
Maximum | |
Share-based compensation arrangement by share-based payment award | |
Award service period | 48 months |
Common Shareholders_ Equity a_3
Common Shareholders’ Equity and Non-controlling Interests (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Common Shares Repurchased and Retired [Abstract] | |||
Value of common shares repurchased and retired during the period | $ 519.4 | $ 723.9 | $ 887.2 |
Value of each common share repurchased and retired during the period (in dollars per share) | $ 876.69 | $ 869 | $ 802 |
Common Shares Issued [Abstract] | |||
Stock issued during period, shares, new issues | 16,377 | 25,086 | 47,030 |
Shares issued to directors (in shares) | 2,272 | 1,959 | 1,735 |
Dividends, Common Stock [Abstract] | |||
Cash dividends declared and paid | $ 3.8 | $ 4.6 | $ 5.4 |
Dividends delared and paid (in dollars per share) | $ 1 | ||
Non-controlling interests | $ (124.9) | $ (131.7) | |
Common Stock | |||
Common Shares Repurchased and Retired [Abstract] | |||
Common shares repurchased and retired during the period | 592,458 | 832,725 | 1,106,145 |
Restricted Stock | |||
Common Shares Issued [Abstract] | |||
Stock issued during period, shares, new issues | 14,105 | 17,985 | 25,365 |
Performance Shares | |||
Common Shares Issued [Abstract] | |||
Stock issued during period, shares, new issues | 5,000 | ||
General Board Authorization | |||
Common Shares Repurchased and Retired [Abstract] | |||
Additional authorized repurchase of common shares | 635,705 | ||
Common shares repurchased and retired during the period | 582,493 | 821,732 | 1,098,123 |
Value of common shares repurchased and retired during the period | $ 511 | $ 713.1 | $ 881.4 |
Value of each common share repurchased and retired during the period (in dollars per share) | $ 877 | $ 870 | $ 802.63 |
Chief Executive Officer | Restricted Stock | |||
Common Shares Issued [Abstract] | |||
Stock issued during period, shares, new issues | 5,142 | 14,930 | |
Repurchased for Employee Benefit Plans | |||
Common Shares Repurchased and Retired [Abstract] | |||
Common shares repurchased and retired during the period | 9,965 | 10,993 | 8,022 |
HG Global | |||
Dividends, Common Stock [Abstract] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 3.10% | 3.10% | |
Non-controlling interests | $ 14.5 | $ 15.9 | |
NSM Insurance HoldCo, LLC | |||
Dividends, Common Stock [Abstract] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 4.50% | 0.00% | |
Non-controlling interests | $ 13.6 | $ 0 | |
MediaAlpha | |||
Dividends, Common Stock [Abstract] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 39.00% | 35.70% | |
Non-controlling interests | $ 16.2 | $ 13.1 | |
Buzzmove | |||
Dividends, Common Stock [Abstract] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 22.90% | 22.90% | |
Non-controlling interests | $ 1.1 | $ 2.5 | |
Other | |||
Dividends, Common Stock [Abstract] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 13.40% | ||
Non-controlling interests | $ 0.3 | ||
BAM | |||
Dividends, Common Stock [Abstract] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 100.00% | 100.00% | |
Non-controlling interests | $ (170.6) | $ (163.2) | |
Total Non-Controlling Excluding Reciprocals | |||
Dividends, Common Stock [Abstract] | |||
Non-controlling interests | $ 45.7 | $ 31.5 |
Statutory Capital and Surplus (
Statutory Capital and Surplus (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)yr | Dec. 31, 2017USD ($)yr | Dec. 31, 2016USD ($) | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | ||||
Repayments of debt, principal | $ 15.4 | $ 365 | $ 404.6 | |
Interest paid | 8.8 | 1.4 | 2.1 | |
Other Operations | ||||
Statutory Accounting Practices [Line Items] | ||||
Unrestricted cash | 536 | |||
Other long-term investments | 67.3 | |||
HG Re | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory capital and surplus | 698.9 | |||
Cash outside of collateral trusts | 2.2 | |||
Collateral held in supplement trust | 757.4 | |||
Cash and investments outside of collateral trusts | 3 | |||
BAM | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory capital and surplus | 413.7 | |||
Statutory net income (loss) | (34.6) | $ (25.4) | $ (32.7) | |
Surplus required | 66 | |||
HG Global | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Preferred stock, value | $ 619 | |||
Ownership interest (as a percent) | 96.90% | |||
Preferred stock dividend rate | 6.00% | |||
NSM Insurance HoldCo, LLC | NSM Insurance HoldCo, LLC | ||||
Statutory Accounting Practices [Line Items] | ||||
Cash | $ 16.2 | |||
MediaAlpha | ||||
Statutory Accounting Practices [Line Items] | ||||
Ownership interest (as a percent) | 61.00% | 64.40% | ||
Cash | $ 5.7 | $ 9.1 | ||
Distributions made | 15.9 | |||
Unrestricted cash | 5.7 | |||
Surplus Note | BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Repayments of debt, principal | 17.7 | 4 | ||
Interest paid | $ 5.3 | $ 1 | ||
Surplus Note | BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Interest rate (as a percent) | 4.60% | 3.78% | ||
Basis spread on variable rate | 300.00% | |||
Surplus Note | BAM | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Interest rate (as a percent) | 8.00% | |||
Preferred stocks | HG Global | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends payable | $ 288.1 | |||
Preferred stocks | White Mountains | HG Global | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends payable | 278.5 | |||
Common Equities | Other Operations | ||||
Statutory Accounting Practices [Line Items] | ||||
Distributions made | 3.8 | |||
Common equity securities | $ 925.6 | |||
Combination One | Surplus Note | BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Number of years of change in interest rate | yr | 5 | |||
Combination One | Surplus Note | BAM | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Number of years of change in interest rate | 5 | |||
Combination Two | Surplus Note | BAM | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Number of years of change in interest rate | yr | 3 | |||
US Treasury Rate | Surplus Note | BAM | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Interest rate (as a percent) | 4.60% | |||
Fixed interest rate | Surplus Note | BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Interest rate (as a percent) | 8.00% | |||
Fixed interest rate | Surplus Note | BAM | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Interest rate (as a percent) | 8.00% | |||
Forecast | Surplus Note | BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Interest rate (as a percent) | 5.70% | |||
Forecast | US Treasury Rate | Surplus Note | BAM | HG Global-BAM | ||||
Statutory Accounting Practices [Line Items] | ||||
Interest rate (as a percent) | 5.70% | |||
Parent | MediaAlpha | ||||
Statutory Accounting Practices [Line Items] | ||||
Distributions made | $ 9.8 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment reporting information | |||||||||||
Earned insurance premiums | $ 13.9 | $ 10.4 | $ 13.4 | ||||||||
Net investment income | 59 | 56 | 32.1 | ||||||||
Gain (Loss) on Investments | $ (108.3) | $ 133.3 | (27.4) | ||||||||
Percentage of par value of policy reinsured | 15.00% | 15.00% | 15.00% | 15.00% | |||||||
Commission revenues | $ 394.3 | $ 167 | 118.3 | ||||||||
Other revenue | 10.2 | 7.1 | 21.3 | ||||||||
Total revenues | $ 6 | $ 198.7 | $ 122.3 | $ 42.1 | $ 114 | $ 87.5 | $ 83.5 | $ 88.8 | 369.1 | 373.8 | 157.7 |
Loss and loss adjustment expenses | 1.1 | 8 | |||||||||
Insurance acquisition expenses | 5.3 | 4.1 | 5.6 | ||||||||
Other underwriting expenses | 0.4 | 0.4 | 0.4 | ||||||||
Cost of sales | 248.7 | 139.4 | 102 | ||||||||
General and administrative expenses | 235.7 | 208 | 175.5 | ||||||||
Broker commission expense | 28.9 | ||||||||||
Amortization of other intangible assets | 18.8 | 10.7 | 10.5 | ||||||||
Interest Expense | 9.5 | 2.3 | 3 | ||||||||
Total expenses | 150.1 | 154.4 | 134.7 | 108.1 | 108.8 | 79.1 | 85.7 | 92.4 | 547.3 | 366 | 305 |
Pre-tax loss | $ (144.1) | $ 44.3 | $ (12.4) | $ (66) | $ 5.2 | $ 8.4 | $ (2.2) | $ (3.6) | (178.2) | 7.8 | (147.3) |
NSM Holding Co LLC | |||||||||||
Segment reporting information | |||||||||||
Earned insurance premiums | 0 | ||||||||||
Net investment income | 0 | ||||||||||
Gain (Loss) on Investments | 0 | ||||||||||
Commission revenues | 94.7 | 0 | 0 | ||||||||
Other revenue | 6.9 | 0 | 0 | ||||||||
Total revenues | 101.6 | 0 | 0 | ||||||||
Insurance acquisition expenses | 0 | ||||||||||
Other underwriting expenses | 0 | ||||||||||
Cost of sales | 0 | ||||||||||
General and administrative expenses | 61.6 | 0 | 0 | ||||||||
Broker commission expense | 28.9 | 0 | 0 | ||||||||
Amortization of other intangible assets | 8.3 | 0 | 0 | ||||||||
Interest Expense | 8 | 0 | 0 | ||||||||
Total expenses | 106.8 | 0 | 0 | ||||||||
Pre-tax loss | $ (5.2) | ||||||||||
Percentage of commission revenue | 33.00% | ||||||||||
HG Global-BAM | |||||||||||
Segment reporting information | |||||||||||
Earned insurance premiums | $ 13.9 | 9.4 | 5.9 | ||||||||
Net investment income | 16.7 | 12.3 | 9 | ||||||||
Gain (Loss) on Investments | (7.5) | 0.6 | 0.7 | ||||||||
Commission revenues | 0 | 0 | 0 | ||||||||
Other revenue | 1.2 | 1 | 1.1 | ||||||||
Total revenues | 24.3 | 23.3 | 16.7 | ||||||||
Loss and loss adjustment expenses | 0 | 0 | |||||||||
Insurance acquisition expenses | 5.3 | 4 | 3.4 | ||||||||
Other underwriting expenses | 0.4 | 0.4 | 0.4 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
General and administrative expenses | 48 | 42.9 | 39.6 | ||||||||
Broker commission expense | 0 | ||||||||||
Amortization of other intangible assets | 0 | 0 | 0 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Total expenses | 53.7 | 47.3 | 43.4 | ||||||||
Pre-tax loss | (29.4) | (24) | (26.7) | ||||||||
MediaAlpha | |||||||||||
Segment reporting information | |||||||||||
Earned insurance premiums | 0 | 0 | 0 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Gain (Loss) on Investments | 0 | 0 | 0 | ||||||||
Commission revenues | 295.5 | 163.2 | 116.5 | ||||||||
Other revenue | 1.6 | 0 | 0 | ||||||||
Total revenues | 297.1 | 163.2 | 116.5 | ||||||||
Loss and loss adjustment expenses | 0 | 0 | |||||||||
Insurance acquisition expenses | 0 | 0 | 0 | ||||||||
Other underwriting expenses | 0 | 0 | 0 | ||||||||
Cost of sales | 245 | 135.9 | 97.8 | ||||||||
General and administrative expenses | 31.7 | 16.2 | 11.8 | ||||||||
Broker commission expense | 0 | ||||||||||
Amortization of other intangible assets | 10.3 | 10.5 | 10.1 | ||||||||
Interest Expense | 1.2 | 1 | 0.9 | ||||||||
Total expenses | 288.2 | 163.6 | 120.6 | ||||||||
Pre-tax loss | $ 8.9 | $ (0.4) | $ (4.1) | ||||||||
Percentage of advertising revenue | 29.00% | 27.00% | 24.00% | ||||||||
Other | |||||||||||
Segment reporting information | |||||||||||
Earned insurance premiums | $ 0 | $ 1 | $ 7.5 | ||||||||
Net investment income | 42.3 | 43.7 | 23.1 | ||||||||
Gain (Loss) on Investments | (100.8) | 132.7 | (28.1) | ||||||||
Commission revenues | 4.1 | 3.8 | 1.8 | ||||||||
Other revenue | 0.5 | 6.1 | 20.2 | ||||||||
Total revenues | (53.9) | 187.3 | 24.5 | ||||||||
Loss and loss adjustment expenses | 0 | 1.1 | 8 | ||||||||
Insurance acquisition expenses | 0 | 0.1 | 2.2 | ||||||||
Other underwriting expenses | 0 | 0 | 0 | ||||||||
Cost of sales | 3.7 | 3.5 | 4.2 | ||||||||
General and administrative expenses | 94.4 | 148.9 | 124.1 | ||||||||
Broker commission expense | 0 | ||||||||||
Amortization of other intangible assets | 0.2 | 0.2 | 0.4 | ||||||||
Interest Expense | 0.3 | 1.3 | 2.1 | ||||||||
Total expenses | 98.6 | 155.1 | 141 | ||||||||
Pre-tax loss | $ (152.5) | $ 32.2 | $ (116.5) |
Segment Information (Assets) (D
Segment Information (Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2012 |
Segment reporting information | |||
Total investments | $ 2,542.9 | $ 3,380.7 | |
Assets | 3,362.6 | 3,659.2 | |
Liabilities | 644.4 | 298.4 | |
White Mountains’ common shareholders’ equity | 2,843.1 | 3,492.5 | |
Non-controlling interests | (124.9) | (131.7) | |
NSM Holding Co LLC | |||
Segment reporting information | |||
Total investments | 1.7 | 0 | |
Assets | 627 | 0 | |
Liabilities | 314.8 | 0 | |
White Mountains’ common shareholders’ equity | 298.3 | 0 | |
Non-controlling interests | 13.9 | 0 | |
MediaAlpha | |||
Segment reporting information | |||
Total investments | 0 | 0 | |
Assets | 88.4 | 96.5 | |
Liabilities | 46.9 | 59.8 | |
White Mountains’ common shareholders’ equity | 25.3 | 23.6 | |
Non-controlling interests | 16.2 | 13.1 | |
Discontinued Operations, Held-for-sale | |||
Segment reporting information | |||
Total investments | 0 | 0 | |
Assets | 3.3 | 3.3 | |
Liabilities | 0 | 0 | |
White Mountains’ common shareholders’ equity | 3.3 | 3.3 | |
Non-controlling interests | 0 | 0 | |
HG Global-BAM | |||
Segment reporting information | |||
Total investments | 768.3 | 693.4 | |
Assets | 816.2 | 747.4 | |
Liabilities | 212.5 | 167 | |
White Mountains’ common shareholders’ equity | 759.8 | 727.7 | |
Non-controlling interests | (156.1) | (147.3) | |
Other Operations | |||
Segment reporting information | |||
Total investments | 1,772.9 | 2,687.3 | |
Assets | 1,827.7 | 2,812 | |
Liabilities | 70.2 | 71.6 | |
White Mountains’ common shareholders’ equity | 1,756.4 | 2,737.9 | |
Non-controlling interests | 1.1 | 2.5 | |
BAM | |||
Segment reporting information | |||
Surplus notes | 481.3 | 499 | |
Accrued interest on surplus notes | 143.7 | 126 | |
HG Global | |||
Segment reporting information | |||
Non-controlling interests | 14.5 | 15.9 | |
Surplus notes | $ 503 | ||
Preferred Dividends Payable | HG Global | |||
Segment reporting information | |||
Liabilities | $ 278.5 | $ 227.9 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates (Carrying Values of Investments) (Details) - White Mountains - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Other Investments | $ 325.6 | $ 208.8 |
Limited liability companies and private equity securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments | 138.1 | 58 |
Investments accounted for under the equity method | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments | 1.3 | 4.6 |
Investments In Unconsolidated Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments | 139.4 | 62.6 |
Other unconsolidated investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments | $ 186.2 | $ 146.2 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates (Details) | Dec. 31, 2018 | Jan. 24, 2018 | Dec. 31, 2017 |
DavidShield & PassportCard | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest (as a percent) | 50.00% | ||
Kudu | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest (as a percent) | 49.50% | 0.00% | |
YOUSURE Tarifvergleich GmbH “durchblicker” | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest (as a percent) | 45.00% | 45.00% | |
Compare.com | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest (as a percent) | 18.40% | 22.10% | |
Tuckerman Capital Fund III, L.P. | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest (as a percent) | 18.50% | 21.30% | |
DavidShield | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest (as a percent) | 50.00% | 50.00% | |
PassportCard | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest (as a percent) | 25.00% | 50.00% | 50.00% |
White Mountains | DavidShield | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest (as a percent) | 25.00% |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliates (Balance Sheet and Income Statement Tables) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments in unconsolidated affiliates | |||||||||||
Assets | $ 3,362.6 | $ 3,659.2 | $ 3,362.6 | $ 3,659.2 | |||||||
Liabilities | 644.4 | 298.4 | 644.4 | 298.4 | |||||||
Revenues | 6 | $ 198.7 | $ 122.3 | $ 42.1 | 114 | $ 87.5 | $ 83.5 | $ 88.8 | 369.1 | 373.8 | $ 157.7 |
White Mountains | |||||||||||
Investments in unconsolidated affiliates | |||||||||||
Assets | 218.8 | 75.4 | 218.8 | 75.4 | |||||||
Liabilities | $ 46.7 | $ 24.2 | 46.7 | 24.2 | |||||||
Revenues | 134.1 | 60 | 32.9 | ||||||||
Expenses | $ (110.1) | $ (66.8) | $ (76.4) |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)director | Feb. 05, 2018USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | ||||
Percentage of par value of policy reinsured | 15.00% | 15.00% | ||
HG Global | ||||
Variable Interest Entity [Line Items] | ||||
Percentage of par value of policy reinsured | 15.00% | |||
BAM | ||||
Variable Interest Entity [Line Items] | ||||
Right to elect directors on board number | director | 2 | |||
First Loss Reinsurance Treaty | HG Global | ||||
Variable Interest Entity [Line Items] | ||||
Percentage of par value of policy reinsured | 15.00% | |||
First Loss Reinsurance Treaty | BAM | ||||
Variable Interest Entity [Line Items] | ||||
Percentage of premiums | 60.00% | |||
Other long-term investments | Kudu | ||||
Variable Interest Entity [Line Items] | ||||
Unfunded capital commitment | $ 125 | |||
VIE, carrying amount | $ 30.7 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 192.7 | $ 23.8 |
NSM Holding Co LLC | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 178.5 | 0 |
NSM Holding Co LLC | Fair value | NSM Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 176.1 | 0 |
MediaAlpha | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 14.2 | 23.8 |
MediaAlpha | MediaAlpha Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 14.2 | 23.8 |
MediaAlpha | Fair value | MediaAlpha Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 14.6 | 23.9 |
MediaAlpha | Carrying Value | MediaAlpha Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 14.2 | 23.8 |
Term Loan | NSM Holding Co LLC | NSM Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | |
Term Loan | NSM Holding Co LLC | Carrying Value | NSM Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 176.6 | $ 0 |
Transactions with Related Per_2
Transactions with Related Persons (Details) - $ / shares | Jul. 13, 2017 | Sep. 15, 2016 | Apr. 19, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||||||
Value of each common share repurchased and retired during the period (in dollars per share) | $ 876.69 | $ 869 | $ 802 | |||
Franklin Mutual Advisers | ||||||
Related Party Transaction [Line Items] | ||||||
Value of each common share repurchased and retired during the period (in dollars per share) | $ 850 | $ 820 | $ 807 | |||
Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Common shares repurchased and retired during the period | 592,458 | 832,725 | 1,106,145 | |||
Common Stock | Franklin Mutual Advisers | ||||||
Related Party Transaction [Line Items] | ||||||
Common shares repurchased and retired during the period | 235,000 | 305,000 | 325,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||||||||||
Rent expense | $ 5.5 | $ 3.5 | $ 3.4 | ||||||||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||||||||
Capital lease payments due next year | $ 6.6 | 6.6 | |||||||||
Capital lease payments due in two years | 4.9 | 4.9 | |||||||||
Capital lease payments due in three years | 4.2 | 4.2 | |||||||||
Capital Lease payments due in four years and thereafter | 12 | 12 | |||||||||
Commitments to fund other-long term investments | 170.2 | ||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | $ (17.3) | $ 0 | $ 0.1 | $ 4.3 | $ 539.1 | $ 2.8 | $ 31.3 | 0 | $ 20.5 | $ 108.3 |
Assumed lliability for unpaid claims and claims adjustment expense | $ 82.5 | 82.5 | |||||||||
Sirius Group | Swedish Tax Authority | Sirius Group | |||||||||||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (17.3) |
Held for Sale and Discontinue_3
Held for Sale and Discontinued Operations (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Oct. 05, 2016 | Jul. 21, 2016 | Apr. 18, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Discontinued Operations | |||||||||||||||||
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold | $ 0 | $ 1,131 | $ 2,646.2 | ||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | (17.2) | 557 | 415.1 | ||||||||||||||
Net income from discontinued operations, net of tax | $ 0 | $ (17.3) | $ 0 | $ 0.1 | $ 4.3 | $ 539.1 | $ 2.8 | $ 31.3 | 0 | 20.5 | 108.3 | ||||||
Tax benefit (expense) | 3.6 | $ 3.6 | $ (2.5) | $ (0.7) | 2.5 | $ 4 | $ 1 | $ 0.3 | 4 | 7.8 | 32.9 | ||||||
Payments to acquire other investments | 95.9 | 84.1 | 38.5 | ||||||||||||||
OneBeacon | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold | $ 1,300 | ||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | $ 554.6 | ||||||||||||||||
Net income from discontinued operations, net of tax | $ 20.5 | 108.6 | |||||||||||||||
OneBeacon | Discontinued Operations | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 0 | 554.5 | 0 | ||||||||||||||
Net income from discontinued operations, net of tax | 20.5 | 108.6 | |||||||||||||||
Tax effect of discontinued operation | (5.7) | (12.5) | |||||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 2.9 | 0 | |||||||||||||||
Tranzact | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold | $ 1.2 | $ 221.3 | |||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 3.2 | 51.9 | |||||||||||||||
Tax effect of discontinued operation | 30.2 | ||||||||||||||||
Tranzact | Discontinued Operations | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 0 | 3.2 | 51.9 | ||||||||||||||
Net income from discontinued operations, net of tax | 0 | 6.1 | |||||||||||||||
Tax benefit (expense) | 21.4 | ||||||||||||||||
Tax effect of extraordinary item, loss | 30.2 | ||||||||||||||||
Tax effect of discontinued operation | 0 | (6.4) | |||||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 0 | 0 | |||||||||||||||
Sirius Group | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold | $ 2,600 | ||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | $ (4) | 363.2 | |||||||||||||||
Payments to acquire other investments | $ 161.8 | ||||||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 113.3 | ||||||||||||||||
Sirius Group | Discontinued Operations | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | (17.2) | (0.7) | 363.2 | ||||||||||||||
Net income from discontinued operations, net of tax | 0 | (6.4) | |||||||||||||||
Tax effect of discontinued operation | 0 | (3.1) | |||||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 0 | 113.3 | |||||||||||||||
Sale of Sirius Group | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 113.3 | ||||||||||||||||
Sale of Sirius Group | Discontinued Operations | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Net income from discontinued operations, net of tax | (4.3) | ||||||||||||||||
Net gain (loss) from sale of discontinued operations | Tranzact | Discontinued Operations | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Tax effect of discontinued operation | $ 8.8 | ||||||||||||||||
Connecticut | Sirius Group, Tranzact, and Star and Shield | Discontinued Operations, Held-for-sale | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Assets held for sale | $ 3.3 | $ 3.3 | 3.3 | 3.3 | |||||||||||||
Other expenses | $ 3.7 | ||||||||||||||||
Sirius Group | Swedish Tax Authority | Sirius Group | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
Net income from discontinued operations, net of tax | $ (17.3) |
Held for Sale and Discontinue_4
Held for Sale and Discontinued Operations (Loss from Discontinued Operations) (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Revenues | ||||||||||||||
Earned insurance premiums | $ 13.9 | $ 10.4 | $ 13.4 | |||||||||||
Net investment income | 59 | 56 | 32.1 | |||||||||||
Other revenue | 10.2 | 7.1 | 21.3 | |||||||||||
Net realized and unrealized investment gains | (108.3) | 133.3 | (27.4) | |||||||||||
Revenues (loss) (including realized and unrealized gains and losses) | $ 6 | $ 198.7 | $ 122.3 | $ 42.1 | $ 114 | $ 87.5 | $ 83.5 | $ 88.8 | 369.1 | 373.8 | 157.7 | |||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 1.1 | 8 | ||||||||||||
Other underwriting expenses | 0.4 | 0.4 | 0.4 | |||||||||||
General and administrative expenses | 235.7 | 208 | 175.5 | |||||||||||
Interest expense on debt | 9.5 | 2.3 | 3 | |||||||||||
Total expenses | 150.1 | 154.4 | 134.7 | 108.1 | 108.8 | 79.1 | 85.7 | 92.4 | 547.3 | 366 | 305 | |||
Net income from discontinued operations, net of tax | $ 0 | $ (17.3) | $ 0 | $ 0.1 | $ 4.3 | $ 539.1 | $ 2.8 | $ 31.3 | 0 | 20.5 | 108.3 | |||
Gain (loss) on sale of other discontinued operations, net of tax | (17.2) | 557 | 415.1 | |||||||||||
Total income (loss) from discontinued operations | (17.2) | 577.5 | 523.4 | |||||||||||
Comprehensive income from discontinued operations | (146) | 630.7 | 547.4 | |||||||||||
Discontinued Operations | ||||||||||||||
Expenses | ||||||||||||||
Total income (loss) from discontinued operations | (17.2) | 577.5 | 523.4 | |||||||||||
OneBeacon | ||||||||||||||
Expenses | ||||||||||||||
Net income from discontinued operations, net of tax | $ 20.5 | 108.6 | ||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | $ 554.6 | |||||||||||||
OneBeacon | Discontinued Operations | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 807.6 | 1,100.6 | ||||||||||||
Net investment income | 39.7 | 50.6 | ||||||||||||
Other revenue | 7.7 | 5.5 | ||||||||||||
Net realized and unrealized investment gains | 38.8 | 37.7 | ||||||||||||
Revenues (loss) (including realized and unrealized gains and losses) | 893.8 | 1,194.4 | ||||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 546 | 656 | ||||||||||||
Insurance and reinsurance acquisition expenses | 145.6 | 206 | ||||||||||||
Other underwriting expenses | 156.2 | 209 | ||||||||||||
General and administrative expenses | 21.2 | 14.2 | ||||||||||||
Interest expense on debt | 10 | 13.1 | ||||||||||||
Total expenses | 879 | 1,098.3 | ||||||||||||
Net income from discontinued operations | 14.8 | 96.1 | ||||||||||||
Income tax benefit | 5.7 | 12.5 | ||||||||||||
Net income from discontinued operations, net of tax | 20.5 | 108.6 | ||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 0 | 554.5 | 0 | |||||||||||
Total income (loss) from discontinued operations | 575 | 108.6 | ||||||||||||
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax | 0.3 | 1 | ||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 2.9 | 0 | ||||||||||||
Comprehensive income from discontinued operations | 578.2 | 109.6 | ||||||||||||
Sale of Sirius Group | ||||||||||||||
Expenses | ||||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 113.3 | |||||||||||||
Sale of Sirius Group | Discontinued Operations | ||||||||||||||
Expenses | ||||||||||||||
Net income from discontinued operations, net of tax | (4.3) | |||||||||||||
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax | 32 | |||||||||||||
Sirius Group | ||||||||||||||
Revenues | ||||||||||||||
Net realized and unrealized investment gains | 3.7 | |||||||||||||
Expenses | ||||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | $ (4) | 363.2 | ||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 113.3 | |||||||||||||
Sirius Group | Discontinued Operations | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 0 | 240.1 | ||||||||||||
Net investment income | 0 | 14.4 | ||||||||||||
Other revenue | 0 | 0.6 | ||||||||||||
Net realized and unrealized investment gains | 0 | (1.5) | ||||||||||||
Revenues (loss) (including realized and unrealized gains and losses) | 0 | 253.6 | ||||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 0 | 154.9 | ||||||||||||
Insurance and reinsurance acquisition expenses | 0 | 59 | ||||||||||||
Other underwriting expenses | 0 | 30.9 | ||||||||||||
General and administrative expenses | 0 | 10.4 | ||||||||||||
Interest expense on debt | 7.9 | |||||||||||||
Total expenses | 0 | 263.1 | ||||||||||||
Net income from discontinued operations | 0 | (9.5) | ||||||||||||
Income tax benefit | 0 | 3.1 | ||||||||||||
Net income from discontinued operations, net of tax | 0 | (6.4) | ||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | (17.2) | (0.7) | 363.2 | |||||||||||
Total income (loss) from discontinued operations | (0.7) | 356.8 | ||||||||||||
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax | 0 | 32 | ||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 0 | 113.3 | ||||||||||||
Comprehensive income from discontinued operations | (0.7) | 502.1 | ||||||||||||
Tranzact | ||||||||||||||
Expenses | ||||||||||||||
Income tax benefit | (30.2) | |||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 3.2 | 51.9 | ||||||||||||
Tranzact | Discontinued Operations | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 0 | 0 | ||||||||||||
Net investment income | 0 | 0 | ||||||||||||
Other revenue | 0 | 119.6 | ||||||||||||
Net realized and unrealized investment gains | 0 | 0 | ||||||||||||
Revenues (loss) (including realized and unrealized gains and losses) | 0 | 119.6 | ||||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 0 | 0 | ||||||||||||
Insurance and reinsurance acquisition expenses | 0 | 0 | ||||||||||||
Other underwriting expenses | 0 | 0 | ||||||||||||
General and administrative expenses | 0 | 116.7 | ||||||||||||
Interest expense on debt | 3.2 | |||||||||||||
Total expenses | 0 | 119.9 | ||||||||||||
Net income from discontinued operations | 0 | (0.3) | ||||||||||||
Income tax benefit | 0 | 6.4 | ||||||||||||
Net income from discontinued operations, net of tax | 0 | 6.1 | ||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | $ 0 | 3.2 | 51.9 | |||||||||||
Total income (loss) from discontinued operations | 3.2 | 58 | ||||||||||||
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax | 0 | 0 | ||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 0 | 0 | ||||||||||||
Comprehensive income from discontinued operations | 3.2 | 58 | ||||||||||||
Total | Discontinued Operations | ||||||||||||||
Revenues | ||||||||||||||
Earned insurance premiums | 807.6 | 1,340.7 | ||||||||||||
Net investment income | 39.7 | 65 | ||||||||||||
Other revenue | 7.7 | 125.7 | ||||||||||||
Net realized and unrealized investment gains | 38.8 | 36.2 | ||||||||||||
Revenues (loss) (including realized and unrealized gains and losses) | 893.8 | 1,567.6 | ||||||||||||
Expenses | ||||||||||||||
Loss and loss adjustment expenses | 546 | 810.9 | ||||||||||||
Insurance and reinsurance acquisition expenses | 145.6 | 265 | ||||||||||||
Other underwriting expenses | 156.2 | 239.9 | ||||||||||||
General and administrative expenses | 21.2 | 141.3 | ||||||||||||
Interest expense on debt | 10 | 24.2 | ||||||||||||
Total expenses | 879 | 1,481.3 | ||||||||||||
Net income from discontinued operations | 14.8 | 86.3 | ||||||||||||
Income tax benefit | 5.7 | 22 | ||||||||||||
Net income from discontinued operations, net of tax | 20.5 | 108.3 | ||||||||||||
Gain (loss) on sale of other discontinued operations, net of tax | 557 | 415.1 | ||||||||||||
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax | 0.3 | 33 | ||||||||||||
Recognition of foreign currency translation from sale of Sirius Group, net of tax | 2.9 | 113.3 | ||||||||||||
Comprehensive income from discontinued operations | $ 580.7 | $ 669.7 |
Held for Sale and Discontinue_5
Held for Sale and Discontinued Operations (Cash Flows Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net cash provided from discontinued operations (Note 19) | $ 0 | $ 157 | $ 23.6 |
Net cash provided from investing activities — discontinued operations (Note 19) | 0 | 3 | 241.4 |
Net cash used for financing activities — discontinued operations (Note 19) | 0 | (61.9) | (93.8) |
Net change in cash during the period | 98.1 | 171.2 | |
Cash balance at beginning of year | 97.1 | 80.2 | 77.8 |
Net change in cash during the period - continuing operations | 13.2 | 16 | 2.1 |
Cash balance at end of year | 110.3 | 97.1 | 80.2 |
Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash balance at beginning of year | $ 0 | 70.5 | 245.4 |
Net change in cash during the period - continuing operations | (0.9) | (0.3) | |
Cash sold as part of sale of consolidated subsidiaries | (167.7) | (345.8) | |
Cash balance at end of year | $ 0 | $ 70.5 |
Held for Sale and Discontinue_6
Held for Sale and Discontinued Operations (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic and diluted earnings per share numerators (in millions): | |||||||||||
Net income attributable to White Mountains’s common shareholders | $ (137.5) | $ 40.8 | $ 3.5 | $ (48) | $ 22.5 | $ 562.1 | $ 13.6 | $ 29 | $ (141.2) | $ 627.2 | $ 401.8 |
Net income (loss) attributable to White Mountains’ common shareholders | (124) | 49.7 | (121.6) | ||||||||
Total income (loss) from discontinued operations | (17.2) | 577.5 | 523.4 | ||||||||
Allocation of earnings (losses) to participating restricted common shares | 1.4 | (0.7) | 1.5 | ||||||||
Basic and diluted (losses) earnings per share numerators | $ (122.6) | $ 49 | $ (120.1) | ||||||||
Basic earnings per share denominators (in thousands): | |||||||||||
Total average common shares outstanding during the period | 3,382,500 | 4,293,800 | 5,014,900 | ||||||||
Average unvested restricted common shares | (40,100) | (54,300) | (64,800) | ||||||||
Basic earnings (losses) per share denominator | 3,342,400 | 4,239,500 | 4,950,100 | ||||||||
Diluted earnings per share denominator (in thousands): | |||||||||||
Average outstanding dilutive options to acquire common shares | 3,382,500 | 4,293,800 | 5,018,100 | ||||||||
Average unvested restricted common shares | (40,100) | (54,300) | (64,800) | ||||||||
Diluted earnings (loss) per share denominator | 3,342,400 | 4,239,500 | 4,953,300 | ||||||||
Basic (losses) earnings per share (in usd per share) | $ (43.24) | $ 12.83 | $ 1.02 | $ (12.82) | $ 6 | $ 130.81 | $ 2.97 | $ 6.34 | $ (41.76) | $ 146.06 | $ 80.11 |
Diluted (losses) earnings per share (in usd per share) | $ (43.24) | $ 12.83 | $ 1.02 | $ (12.82) | $ 6 | $ 130.81 | $ 2.97 | $ 6.34 | $ (41.76) | $ 146.06 | $ 80.06 |
Incremental common shares attributable to share-based payment arrangements | 3,217 | ||||||||||
Discontinued Operations | |||||||||||
Basic and diluted earnings per share numerators (in millions): | |||||||||||
Net income attributable to White Mountains’s common shareholders | $ (141.2) | $ 627.2 | $ 401.8 | ||||||||
Net income (loss) attributable to White Mountains’ common shareholders | (124) | 49.7 | (121.6) | ||||||||
Total income (loss) from discontinued operations | (17.2) | 577.5 | 523.4 | ||||||||
Allocation of earnings (losses) to participating restricted common shares | 0.2 | (7.3) | (6.8) | ||||||||
Basic and diluted (losses) earnings per share numerators | $ (17) | $ 570.2 | $ 516.6 | ||||||||
Basic earnings per share denominators (in thousands): | |||||||||||
Total average common shares outstanding during the period | 3,382,500 | 4,293,800 | 5,014,900 | ||||||||
Average unvested restricted common shares | (40,100) | (54,300) | (64,800) | ||||||||
Basic earnings (losses) per share denominator | 3,342,400 | 4,239,500 | 4,950,100 | ||||||||
Diluted earnings per share denominator (in thousands): | |||||||||||
Average outstanding dilutive options to acquire common shares | 3,382,500 | 4,293,800 | 5,018,100 | ||||||||
Average unvested restricted common shares | (40,100) | (54,300) | (64,800) | ||||||||
Diluted earnings (loss) per share denominator | 3,342,400 | 4,239,500 | 4,953,300 | ||||||||
Basic (losses) earnings per share (in usd per share) | $ (5.09) | $ 134.50 | $ 104.37 | ||||||||
Diluted (losses) earnings per share (in usd per share) | $ (5.09) | $ 134.50 | $ 104.32 | ||||||||
Incremental common shares attributable to share-based payment arrangements | 40,000 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | Feb. 26, 2019 | Feb. 14, 2019 | Feb. 13, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
MediaAlpha | |||||
Subsequent Event [Line Items] | |||||
Ownership interest (as a percent) | 61.00% | 64.40% | |||
MediaAlpha | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Assets, fair value | $ 350 | ||||
Ownership interest (as a percent) | 42.00% | ||||
Equity in earnings of unconsolidated affiliates, net of tax | $ 88 | ||||
Kudu | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Ownership interest (as a percent) | 99.00% | 49.50% | |||
Equity method investment, aggregate cost | $ 50 | ||||
Unfunded capital commitment | $ 167 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 6 | $ 198.7 | $ 122.3 | $ 42.1 | $ 114 | $ 87.5 | $ 83.5 | $ 88.8 | $ 369.1 | $ 373.8 | $ 157.7 |
Expenses | 150.1 | 154.4 | 134.7 | 108.1 | 108.8 | 79.1 | 85.7 | 92.4 | 547.3 | 366 | 305 |
Pre-tax income (loss) | (144.1) | 44.3 | (12.4) | (66) | 5.2 | 8.4 | (2.2) | (3.6) | (178.2) | 7.8 | (147.3) |
Tax benefit (expense) | 3.6 | 3.6 | (2.5) | (0.7) | 2.5 | 4 | 1 | 0.3 | 4 | 7.8 | 32.9 |
Net income (loss) from continuing operations | (140.5) | 47.9 | (14.9) | (66.7) | 7.7 | 12.4 | (1.2) | (3.3) | (174.2) | 15.6 | (114.4) |
Net income from discontinued operations, net of tax | 0 | (17.3) | 0 | 0.1 | 4.3 | 539.1 | 2.8 | 31.3 | 0 | 20.5 | 108.3 |
Non-controlling interest in consolidated subsidiaries | 3 | 10.2 | 18.4 | 18.6 | 10.5 | 10.6 | 12 | 1 | 50.2 | 34.1 | (7.2) |
Net income attributable to White Mountains’s common shareholders | $ (137.5) | $ 40.8 | $ 3.5 | $ (48) | $ 22.5 | $ 562.1 | $ 13.6 | $ 29 | $ (141.2) | $ 627.2 | $ 401.8 |
Basic earnings per share | |||||||||||
Continuing operations | $ (43.24) | $ 18.27 | $ 1.02 | $ (12.85) | $ 4.85 | $ 5.36 | $ 2.36 | $ (0.52) | $ (36.67) | $ 11.56 | $ (24.26) |
Discontinued operations | 0 | (5.44) | 0 | 0.03 | 1.15 | 125.45 | 0.61 | 6.86 | (5.09) | 134.50 | 104.37 |
Total consolidated operations | (43.24) | 12.83 | 1.02 | (12.82) | 6 | 130.81 | 2.97 | 6.34 | (41.76) | 146.06 | 80.11 |
Diluted earnings per share | |||||||||||
Continuing operations | (43.24) | 18.27 | 1.02 | (12.85) | 4.85 | 5.36 | 2.36 | (0.52) | (36.67) | 11.56 | (24.26) |
Discontinued operations | 0 | (5.44) | 0 | 0.03 | 1.15 | 125.45 | 0.61 | 6.86 | (5.09) | 134.50 | 104.32 |
Total consolidated operations | $ (43.24) | $ 12.83 | $ 1.02 | $ (12.82) | $ 6 | $ 130.81 | $ 2.97 | $ 6.34 | $ (41.76) | $ 146.06 | $ 80.06 |
SCHEDULE I SUMMARY OF INVESTM_2
SCHEDULE I SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2018USD ($) |
Summary of investments other than investments in related parties | |
Cost | $ 2,537.3 |
Carrying Value | 2,542.9 |
Fair Value | 2,542.9 |
Fixed maturity investments | |
Summary of investments other than investments in related parties | |
Cost | 1,088.1 |
Carrying Value | 1,077.5 |
Fair Value | 1,077.5 |
U.S. Government and agency obligations | |
Summary of investments other than investments in related parties | |
Cost | 154 |
Carrying Value | 153.2 |
Fair Value | 153.2 |
Debt securities issued by corporations | |
Summary of investments other than investments in related parties | |
Cost | 519 |
Carrying Value | 510.5 |
Fair Value | 510.5 |
Mortgage and asset-backed securities | |
Summary of investments other than investments in related parties | |
Cost | 136.1 |
Carrying Value | 133.5 |
Fair Value | 133.5 |
Municipal obligations | |
Summary of investments other than investments in related parties | |
Cost | 279 |
Carrying Value | 280.3 |
Fair Value | 280.3 |
Short-term investments | |
Summary of investments other than investments in related parties | |
Cost | 214.2 |
Carrying Value | 214.2 |
Fair Value | 214.2 |
Exchange traded funds | |
Summary of investments other than investments in related parties | |
Cost | 681.8 |
Carrying Value | 675.3 |
Fair Value | 675.3 |
Common equity securities | |
Summary of investments other than investments in related parties | |
Cost | 904.7 |
Carrying Value | 925.6 |
Fair Value | 925.6 |
Banks, trust and insurance companies | |
Summary of investments other than investments in related parties | |
Cost | 11.8 |
Carrying Value | 13.5 |
Fair Value | 13.5 |
Industrial, miscellaneous and other | |
Summary of investments other than investments in related parties | |
Cost | 211.1 |
Carrying Value | 236.8 |
Fair Value | 236.8 |
Other long-term investments | |
Summary of investments other than investments in related parties | |
Cost | 330.3 |
Carrying Value | 325.6 |
Fair Value | $ 325.6 |
SCHEDULE II CONDENSED FINANCI_2
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||
Total assets | $ 3,362.6 | $ 3,659.2 | |
Liabilities | |||
Debt | 192.7 | 23.8 | |
Payable to subsidiary | 4 | 11.6 | $ 0.2 |
Total liabilities | 644.4 | 298.4 | |
White Mountains’s common shareholders’ equity | 2,718.2 | 3,360.8 | |
Non-controlling interests | (124.9) | (131.7) | |
Total liabilities and equity | 3,362.6 | 3,659.2 | |
Fair value investments | 2,328.7 | 3,208.3 | $ 2,547.3 |
White Mountains Insurance Group Ltd. | |||
Assets | |||
Cash | 0.7 | 14.9 | |
Fixed maturity investments, at fair value | 0 | 869.6 | |
Common equity securities, at fair value | 335.6 | 641.8 | |
Short-term investments, at amortized cost | 28 | 57.2 | |
Other long-term investments | 0 | (3.7) | |
Other assets | 1.8 | 30.9 | |
Investments in consolidated subsidiaries | 2,533.2 | 1,914.8 | |
Total assets | 2,899.3 | 3,525.5 | |
Liabilities | |||
Payable to subsidiary | 15.8 | 11.8 | |
Other liabilities | 25.9 | 21.2 | |
Total liabilities | 41.7 | 33 | |
White Mountains’s common shareholders’ equity | 2,843.1 | 3,492.5 | |
Non-controlling interests | 14.5 | 0 | |
Total liabilities and equity | 2,899.3 | 3,525.5 | |
Sirius Group | |||
Liabilities | |||
Other liabilities | $ 17.3 | ||
Barclays | Forward Contracts | A | |||
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | |||
Derivative, fair value, net | $ (3.7) |
SCHEDULE II CONDENSED FINANCI_3
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | |||||||||||
Payments for (Proceeds from) Short-term Investments | $ 39 | $ 1.7 | $ 27.2 | ||||||||
Revenues (loss) (including realized and unrealized gains and losses) | $ 6 | $ 198.7 | $ 122.3 | $ 42.1 | $ 114 | $ 87.5 | $ 83.5 | $ 88.8 | 369.1 | 373.8 | 157.7 |
Expenses | 150.1 | 154.4 | 134.7 | 108.1 | 108.8 | 79.1 | 85.7 | 92.4 | 547.3 | 366 | 305 |
Pre-tax loss | (144.1) | 44.3 | (12.4) | (66) | 5.2 | 8.4 | (2.2) | (3.6) | (178.2) | 7.8 | (147.3) |
Income tax (expense) benefit | 3.6 | 3.6 | (2.5) | (0.7) | 2.5 | 4 | 1 | 0.3 | 4 | 7.8 | 32.9 |
Net income (loss) from continuing operations | (140.5) | 47.9 | (14.9) | (66.7) | 7.7 | 12.4 | (1.2) | (3.3) | (174.2) | 15.6 | (114.4) |
Net income from discontinued operations, net of tax | 0 | (17.3) | 0 | 0.1 | 4.3 | 539.1 | 2.8 | 31.3 | 0 | 20.5 | 108.3 |
Net loss attributable to non-controlling interests | 3 | 10.2 | 18.4 | 18.6 | 10.5 | 10.6 | 12 | 1 | 50.2 | 34.1 | (7.2) |
Net income attributable to White Mountains’s common shareholders | (137.5) | 40.8 | 3.5 | (48) | 22.5 | 562.1 | 13.6 | 29 | (141.2) | 627.2 | 401.8 |
Other comprehensive (loss) income, net of tax | (4.8) | 0.3 | (0.7) | ||||||||
Comprehensive (loss) income attributable to White Mountains’s common shareholders | (145.7) | 630.5 | 547.1 | ||||||||
Computation of net income (loss) available to common shareholders: | |||||||||||
Net income attributable to White Mountains’s common shareholders | $ (137.5) | $ 40.8 | $ 3.5 | $ (48) | $ 22.5 | $ 562.1 | $ 13.6 | $ 29 | (141.2) | 627.2 | 401.8 |
Comprehensive income (loss) | (146) | 630.7 | 547.4 | ||||||||
Total income (loss) from discontinued operations | (17.2) | 577.5 | 523.4 | ||||||||
Payments for (Proceeds from) Other Investing Activities | 4.2 | 14.7 | (4.8) | ||||||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 459.2 | 715.5 | 1,035.4 | ||||||||
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 0 | 3 | 241.4 | ||||||||
Net Cash Provided by (Used in) Investing Activities | 459.2 | 718.5 | 1,276.8 | ||||||||
White Mountains Insurance Group Ltd. | |||||||||||
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | |||||||||||
Payments for (Proceeds from) Short-term Investments | (134) | 24.7 | (10.9) | ||||||||
Revenues (loss) (including realized and unrealized gains and losses) | (47.7) | 27.3 | (1) | ||||||||
Expenses | 45.9 | 99.7 | 68.2 | ||||||||
Pre-tax loss | (93.6) | (72.4) | (69.2) | ||||||||
Income tax (expense) benefit | (2.5) | (1.4) | (0.5) | ||||||||
Net income (loss) from continuing operations | (96.1) | (73.8) | (69.7) | ||||||||
Net income from discontinued operations, net of tax | (17.2) | 0 | 0 | ||||||||
Equity in earnings (losses) from consolidated and unconsolidated affiliates | (27.4) | 701 | 471.5 | ||||||||
Net loss attributable to non-controlling interests | (0.5) | 0 | 0 | ||||||||
Net income attributable to White Mountains’s common shareholders | (141.2) | 627.2 | 401.8 | ||||||||
Other comprehensive (loss) income, net of tax | (4.5) | 3.3 | 145.3 | ||||||||
Comprehensive (loss) income attributable to White Mountains’s common shareholders | (145.7) | 630.5 | 547.1 | ||||||||
Computation of net income (loss) available to common shareholders: | |||||||||||
Net income attributable to White Mountains’s common shareholders | (141.2) | 627.2 | 401.8 | ||||||||
Payments to Acquire Investments | 321.2 | 474.7 | 0 | ||||||||
Proceeds from Sale and Maturity of Debt and Equity Securities, FV-NI, Held-for-investment | 967.6 | 367.1 | 0 | ||||||||
Issuance Of Debt To From Subsidiaries | (55.2) | 382 | 992 | ||||||||
Repayment of debt from subsidiaries | (31) | 0 | 5 | ||||||||
Payments to acquire interest in subsidiary | 258.2 | 0 | |||||||||
Net Cash Provided by (Used in) Investing Activities | 498 | (450.3) | 997.9 | ||||||||
Guilford Holdings, Inc. | White Mountains Insurance Group Ltd. | |||||||||||
Computation of net income (loss) available to common shareholders: | |||||||||||
Payments to acquire interest in subsidiary | 700 | ||||||||||
Discontinued Operations | |||||||||||
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | |||||||||||
Net income attributable to White Mountains’s common shareholders | (141.2) | 627.2 | 401.8 | ||||||||
Computation of net income (loss) available to common shareholders: | |||||||||||
Net income attributable to White Mountains’s common shareholders | (141.2) | 627.2 | 401.8 | ||||||||
Total income (loss) from discontinued operations | (17.2) | 577.5 | 523.4 | ||||||||
Discontinued Operations | Sirius Group | |||||||||||
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | |||||||||||
Revenues (loss) (including realized and unrealized gains and losses) | 0 | 253.6 | |||||||||
Expenses | 0 | 263.1 | |||||||||
Net income from discontinued operations, net of tax | 0 | (6.4) | |||||||||
Computation of net income (loss) available to common shareholders: | |||||||||||
Comprehensive income (loss) | (0.7) | 502.1 | |||||||||
Total income (loss) from discontinued operations | (0.7) | 356.8 | |||||||||
Discontinued Operations | OneBeacon, Sirius Group, and Tranzact | |||||||||||
Computation of net income (loss) available to common shareholders: | |||||||||||
Total income (loss) from discontinued operations | $ 577.5 | $ 523.4 | |||||||||
Swedish Tax Authority | Sirius Group | Sirius Group | |||||||||||
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | |||||||||||
Net income from discontinued operations, net of tax | $ (17.3) |
SCHEDULE II CONDENSED FINANCI_4
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | |||||||||||
Net income attributable to White Mountains’s common shareholders | $ (137.5) | $ 40.8 | $ 3.5 | $ (48) | $ 22.5 | $ 562.1 | $ 13.6 | $ 29 | $ (141.2) | $ 627.2 | $ 401.8 |
Charges (credits) to reconcile net income to net cash provided from (used for) operations: | |||||||||||
Net realized and unrealized investment losses (gains) | 108.3 | (133.3) | 27.4 | ||||||||
Net income from discontinued operations, net of tax | 0 | $ (17.3) | $ 0 | 0.1 | 4.3 | $ 539.1 | $ 2.8 | 31.3 | 0 | 20.5 | 108.3 |
Net change in other assets and liabilities, net | (27.1) | (20.8) | (146.1) | ||||||||
Net cash (used for) provided from operations | (31.1) | 94.6 | (155.1) | ||||||||
Cash flows from investing activities: | |||||||||||
Net decrease in short-term investments | (39) | (1.7) | (27.2) | ||||||||
Net cash provided from investing activities | 459.2 | 718.5 | 1,276.8 | ||||||||
Cash flows from financing activities: | |||||||||||
Draw down of debt and revolving line of credit | 84.1 | 376 | 352.5 | ||||||||
Repayment of debt and revolving line of credit | (15.4) | (365) | (404.6) | ||||||||
Proceeds from issuances of common shares | 0 | 0 | 3.7 | ||||||||
Repurchases and retirement of common shares | (511.9) | (714.6) | (881.3) | ||||||||
Dividends paid on common shares | (3.8) | (4.6) | (5.4) | ||||||||
Net cash used for financing activities | (414.3) | (699) | (948.4) | ||||||||
Net change in cash during the period - continuing operations | 13.2 | 16 | 2.1 | ||||||||
Cash balance at beginning of year | 97.1 | 80.2 | 97.1 | 80.2 | 77.8 | ||||||
Cash balance at end of year | 110.3 | 97.1 | 110.3 | 97.1 | 80.2 | ||||||
Interest paid | (8.8) | (1.4) | (2.1) | ||||||||
White Mountains’s common shareholders’ equity | 2,718.2 | 3,360.8 | 2,718.2 | 3,360.8 | |||||||
Amortization of restricted share and option awards | 13 | 14.8 | 18.5 | ||||||||
Payable to subsidiary | 4 | 11.6 | 4 | 11.6 | 0.2 | ||||||
Lone Tree Holdings Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
White Mountains’s common shareholders’ equity | 2,810.4 | 2,810.4 | |||||||||
Other liabilities | 14.1 | 14.1 | |||||||||
Investments in consolidated subsidiaries | 964.4 | 964.4 | |||||||||
Short-term investments, at amortized cost | 13 | 13 | |||||||||
White Mountains Insurance Group Ltd. | |||||||||||
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | |||||||||||
Net income attributable to White Mountains’s common shareholders | (141.2) | 627.2 | 401.8 | ||||||||
Charges (credits) to reconcile net income to net cash provided from (used for) operations: | |||||||||||
Net realized and unrealized investment losses (gains) | 57.8 | (18.5) | 1.1 | ||||||||
Undistributed earnings from subsidiaries | 27.4 | (701) | (471.5) | ||||||||
Net income from discontinued operations, net of tax | (17.2) | 0 | 0 | ||||||||
Other non-cash reconciling items, primarily amortization of restricted share and option awards (3) | 34.6 | 31.1 | 17.9 | ||||||||
Accumulated earnings distributed from subsidiary in cash | 0 | 1,256.7 | 0 | ||||||||
Net change in other assets and liabilities, net | 16.7 | (4.9) | (5.6) | ||||||||
Net cash (used for) provided from operations | 12.5 | 1,190.6 | (56.3) | ||||||||
Cash flows from investing activities: | |||||||||||
Net decrease in short-term investments | 134 | (24.7) | 10.9 | ||||||||
Payments to Acquire Investments | (321.2) | (474.7) | 0 | ||||||||
Proceeds from Sale and Maturity of Debt and Equity Securities, FV-NI, Held-for-investment | 967.6 | 367.1 | 0 | ||||||||
Repayment of debt (to) from subsidiaries | 31 | 0 | (5) | ||||||||
Payments to acquire interest in subsidiary | 258.2 | 0 | |||||||||
Net cash provided from investing activities | 498 | (450.3) | 997.9 | ||||||||
Cash flows from financing activities: | |||||||||||
Draw down of debt and revolving line of credit | 0 | 350 | 350 | ||||||||
Repayment of debt and revolving line of credit | 0 | (350) | (400) | ||||||||
Proceeds from issuances of common shares | 0 | 0 | 3.7 | ||||||||
Repurchases and retirement of common shares | (510.9) | (714.6) | (881.3) | ||||||||
Dividends paid on common shares | (3.8) | (4.6) | (5.4) | ||||||||
Payments of restricted shares withholding taxes | (10) | (9.3) | (5.8) | ||||||||
Net cash used for financing activities | (524.7) | (728.5) | (938.8) | ||||||||
Net change in cash during the period - continuing operations | (14.2) | 11.8 | 2.8 | ||||||||
Cash balance at beginning of year | $ 14.9 | $ 3.1 | 14.9 | 3.1 | 0.3 | ||||||
Cash balance at end of year | 0.7 | 14.9 | 0.7 | 14.9 | 3.1 | ||||||
Interest paid | 0 | (0.6) | (1.2) | ||||||||
White Mountains’s common shareholders’ equity | 2,843.1 | 3,492.5 | 2,843.1 | 3,492.5 | |||||||
Other liabilities | 25.9 | 21.2 | 25.9 | 21.2 | |||||||
Investments in consolidated subsidiaries | 2,533.2 | 1,914.8 | 2,533.2 | 1,914.8 | |||||||
Short-term investments, at amortized cost | 28 | 57.2 | 28 | 57.2 | |||||||
Payable to subsidiary | 15.8 | 11.8 | 15.8 | 11.8 | |||||||
Transfer from investments | 1,238.9 | ||||||||||
Sirius Group | |||||||||||
Cash flows from financing activities: | |||||||||||
Other liabilities | $ 17.3 | 17.3 | |||||||||
Lone Tree Holdings Ltd. | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
Net change in due to affiliates | 1,256.7 | ||||||||||
Proceeds from divestiture of businesses | 1,037.6 | ||||||||||
Bridge Holdings, Ltd. | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from investing activities: | |||||||||||
Payments to acquire interest in subsidiary | $ (255.3) | ||||||||||
Cash flows from financing activities: | |||||||||||
Noncash Investing and Financing Activities Related Text | 22.7 | ||||||||||
White Mountains Investment, Ltd. | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from investing activities: | |||||||||||
Payments to acquire interest in subsidiary | $ (2.9) | ||||||||||
Guilford Holdings, Inc. | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from investing activities: | |||||||||||
Payments to acquire interest in subsidiary | 700 | ||||||||||
Intercompany balances | Lone Tree Holdings Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
Other liabilities | $ 1,863.1 | $ 1,863.1 | |||||||||
Non-cash reconciling item | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
Noncash Investing and Financing Activities Related Text | 94.2 | ||||||||||
Non-cash reconciling item | Guilford Holdings, Inc. | |||||||||||
Cash flows from financing activities: | |||||||||||
Noncash Investing and Financing Activities Related Text | 349.5 | ||||||||||
Noncash Total | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
Transfer to investments | $ (603.9) | ||||||||||
Transfer from investments | 1,065.4 | ||||||||||
Fixed maturity investments | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
Transfer to investments | (170.5) | ||||||||||
Transfer from investments | 373.4 | 80 | |||||||||
Fixed maturity investments | Guilford Holdings, Inc. | |||||||||||
Cash flows from financing activities: | |||||||||||
Transfer from investments | 170.4 | ||||||||||
Common equity securities | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
Transfer to investments | (148.8) | ||||||||||
Transfer from investments | 490.1 | ||||||||||
Other long-term investments | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
Transfer to investments | (22.7) | ||||||||||
Transfer from investments | 22.7 | ||||||||||
Short-term investments | White Mountains Insurance Group Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
Transfer to investments | 284.6 | ||||||||||
Transfer from investments | 179.2 | ||||||||||
Short-term investments | Guilford Holdings, Inc. | |||||||||||
Cash flows from financing activities: | |||||||||||
Transfer from investments | $ 179.2 | ||||||||||
Bridge Holdings, Ltd. | White Mountains Investment, Ltd. | |||||||||||
Cash flows from financing activities: | |||||||||||
Noncash Investing and Financing Activities Related Text | 1 | ||||||||||
Bridge Holdings, Ltd. | Guilford Holdings, Inc. | |||||||||||
Cash flows from financing activities: | |||||||||||
Noncash Investing and Financing Activities Related Text | 350 | ||||||||||
Sirius Group | |||||||||||
Charges (credits) to reconcile net income to net cash provided from (used for) operations: | |||||||||||
Net realized and unrealized investment losses (gains) | $ (3.7) | ||||||||||
Swedish Tax Authority | Sirius Group | Sirius Group | |||||||||||
Charges (credits) to reconcile net income to net cash provided from (used for) operations: | |||||||||||
Net income from discontinued operations, net of tax | $ (17.3) |
SCHEDULE III SUPPLEMENTARY IN_2
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SUPPLEMENTARY INSURANCE INFORMATION | |||
Net investment income | $ 59 | $ 56 | $ 32.1 |
HG Global-BAM | |||
SUPPLEMENTARY INSURANCE INFORMATION | |||
Deferred acquisition costs | 19 | 14.8 | 10.6 |
Future policy benefits, losses, claims and loss expenses | 0 | 0 | 0 |
Unearned premiums | 176 | 136.8 | 82.9 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premiums earned | 13.9 | 9.4 | 5.9 |
Net investment income | 16.7 | 12.3 | 9 |
Benefits, claims, losses, and settlement expenses | 0 | 0 | 0 |
Amortization of deferred policy acquisition costs | 5.3 | 4 | 3.4 |
Other operating expenses | 0.4 | 0.4 | 0.4 |
Premiums written | 52.9 | 63.2 | 38.6 |
Net investment income | 16.7 | 12.3 | 9 |
Other Operations | |||
SUPPLEMENTARY INSURANCE INFORMATION | |||
Deferred acquisition costs | 0 | 0 | 0 |
Future policy benefits, losses, claims and loss expenses | 0 | 0 | 0 |
Unearned premiums | 0 | 0 | 0 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premiums earned | 0 | 1 | 7.5 |
Net investment income | 0 | 0 | 0.2 |
Benefits, claims, losses, and settlement expenses | 0 | 1.1 | 8 |
Amortization of deferred policy acquisition costs | 0 | 0.1 | 2.2 |
Other operating expenses | 0 | 0 | 0.1 |
Premiums written | 0 | 0.9 | 6.5 |
Non-insurance [Member] | Operating Segments | |||
SUPPLEMENTARY INSURANCE INFORMATION | |||
Net investment income | $ 0 | $ 43.7 | $ 22.9 |
SCHEDULE IV REINSURANCE (Detail
SCHEDULE IV REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Premiums earned | |||
Net earned premiums | $ 13.9 | $ 10.4 | $ 13.4 |
HG Global/BAM | |||
Premiums earned | |||
Gross amount | 13.6 | 9.4 | 5.9 |
Ceded to other companies | 0 | 0 | 0 |
Assumed from other companies | 0.3 | 0 | 0 |
Net earned premiums | $ 13.9 | $ 9.4 | $ 5.9 |
Percentage of amount assumed to net | 2.20% | 0.00% | 0.00% |
Other Segments | |||
Premiums earned | |||
Gross amount | $ 0 | $ 1 | $ 15.2 |
Ceded to other companies | 0 | 0 | (7.7) |
Assumed from other companies | 0 | 0 | 0 |
Net earned premiums | $ 0 | $ 1 | $ 7.5 |
Percentage of amount assumed to net | 0.00% | 0.00% | 0.00% |