White Mountains has released its third-quarter results for 2023, saying that its Ark partner firm saw gross written premiums rise to $251 million at Q3’23 compared with $216 million in Q2’22.
Ark saw GWP rise to $1,667 million for the first nine months of 2023, compared to $1,253 million in 2022.
It reported net written premiums of $225 million and $1,198 million and net earned premiums of $438 million and $972 million in the third quarter and first nine months of 2023. Which compare to net written premiums of $193 million and $1,007 million and net earned premiums of $346 million and $758 million in the third quarter and first nine months of 2022.
Ark also reported pre-tax loss of $62 million in Q3’23 and $140 million in 9M compared to $24 million and $(20) million in the third quarter and first nine months of 2022.
According to the firm, Ark’s results included net realised and unrealised investment gains (losses) of $(7) million and $36 million in the third quarter and first nine months of 2023 compared to $(14) million and $(77) million in the third quarter and first nine months of 2022.
Ian Beaton, CEO of Ark, said, “Ark had a good third quarter notwithstanding global catastrophe activity. The combined ratio was 81% in the quarter, an improvement of six points year-over-year.”
“Gross written premiums were $251 million in the quarter and $1,667 million year-to-date, up 17% and 33%, respectively, from 2022 levels. Risk-adjusted rate change is up 11% in the quarter and 16% year-to-date. Momentum remains positive.”
White Mountains, meanwhile, said that its comprehensive income attributable to common shareholders was $23 million and $224 million in the third quarter and first nine months of 2023 compared to $890 million and $748 million in the third quarter and first nine months of 2022.
According to White Mountain, results in Q3 and first nine months of 2023 included $47 million and $39 million of unrealised investment losses from White Mountains’s investment in MediaAlpha compared to $19 million and $113 million in the third quarter and first nine months of 2022.
The firm noted that results in Q3 and first nine months of 2022 included the net gain from the sale of NSM of $876 million.
Manning Rountree, CEO, commented, “ABVPS was up 1% in the quarter and 6% year-to-date. BAM generated $36 million of total gross written premiums and member surplus contributions in the quarter; primary market issuance remains below historical levels but ticked up slightly year-over-year.”
“Ark produced an 81% combined ratio while growing premiums 17% year over year. WM Outrigger Re delivered a 44% combined ratio and $37 million of pre-tax income. The fair value of Kudu’s portfolio of existing participation contracts grew 2% despite a challenging quarter for investment markets.”
“Kudu grew annualised adjusted EBITDA to $47 million and closed one new deployment in the quarter. MediaAlpha’s share price declined in the quarter, reducing ABVPS by 1%. Excluding MediaAlpha, the investment portfolio was up 1% in the quarter, outperforming benchmarks.”
“We were pleased to announce our acquisition of Bamboo and the launch of WM Partners. Including the Bamboo acquisition, undeployed capital stands at roughly $400 million.”
