Bermuda domiciled financial services holding company White Mountains Insurance Group has reported comprehensive income of $139 million for the second quarter of 2021, up from $116 million for the same period last year.
Results were boosted by a “solid” performance at Ark, which was acquired by White Mountains in January, and which recorded income of $18 million, following a loss of $33 million in Q1.
Ark, which is focused on P&C re/insurance business, reported gross written premiums of $328 million, net written premiums of $262 million and net earned premiums of $118 million.
Looking at the first six months of the year, White Mountains reported comprehensive income of $66 million, compared with a loss of $17 million for the H1 period of 2020.
The firm also noted that results in both the second quarter and first six months of 2021 were driven primarily by $113 million and $71 million of net realized and unrealized investment gains from White Mountains’s investment in MediaAlpha.
“We had a strong second quarter,” said White Mountains CEO Manning Rountree. “Adjusted book value per share was up 4%, driven by solid results across our operating companies as well as the increase in MediaAlpha’s share price during the quarter.”
“BAM produced $30 million of total premiums and member surplus contributions, as insured penetration and market share remained strong, while pricing declined. Ark wrote $328 million of gross written premiums, up 78% year over year, and produced an 84% adjusted combined ratio,” Rountree continued.
“NSM generated nice growth in both pro forma controlled premiums and pro forma adjusted EBITDA. Kudu also posted nice growth in adjusted EBITDA and recognized $28 million in unrealized gains in the fair value of its portfolio of participation contracts.”
“Excluding MediaAlpha, our investment portfolio returned 2.4% in the quarter. We finished the second quarter with roughly $300 million in undeployed capital. We expect undeployed capital will increase in the third quarter upon completion of the subordinated debt raise at Ark.”
