White Mountains has released its fourth-quarter results for 2023, reporting that its Ark partner firm produced strong underwriting results in both the quarter and the full year, while growing full-year gross written premiums 31%, according to CEO Manning Rountree.
Ark saw gross written premiums (GWP) rise to $232 million in Q4 2023 compared to the $200 million in Q4 2022. Its GWP year ended December 31, 2023, saw an increase as well, to $1,898 million from $1,452 million in the year ended December 31, 2022.
It reported net written premiums of $213 million and $1,411 million, and net earned premiums of $334 million and $1,305 million in the fourth quarter and 2023. Which compare to net written premiums of $189 million and $1,195 million and net earned premiums of $286 million and $1,043 million in the fourth quarter and year ended December 31, 2022.
The firm also reported pre-tax income of $109 million in Q4 and $249 million for the year, compared to $116 million and $95 million in Q4 2022 and year ended December 31, 2022.
According to the firm, Ark’s results included net realized and unrealized investment gains of $50 million and $86 million in the fourth quarter and year ended December 31, 2023, compared to $21 million and a loss of $55 million in the fourth quarter and year ended December 31, 2022, respectively.
Ian Beaton, CEO of Ark, said, “Ark had a good quarter and full year, producing combined ratios of 70% and 82%, respectively. Premiums grew 31% year over year, including risk adjusted rate change of 15%. Growth was particularly strong in the property line of business, aided by the rate environment and capacity from Outrigger Re.
“In December, AM Best affirmed Ark’s ‘A/stable’ rating. We look forward to continued profitable growth in the business in 2024.”
White Mountains, meanwhile, said that its comprehensive income attributable to common shareholders was $288 million and $511 million in the fourth quarter and year ended December 31, 2023 compared to $40 million and $788 million in the fourth quarter and year ended December 31, 2022.
Results in the fourth quarter and year ended December 31, 2023 included $66 million and $27 million of unrealized investment gains (losses) from White Mountains’s investment in MediaAlpha compared to $20 million and $(93) million in the fourth quarter and year ended December 31, 2022.
Results in the year ended December 31, 2022 also included the net gain from the sale of NSM of $876 million.
Manning Rountree, CEO, commented, “We had a strong fourth quarter to cap off a good year. ABVPS was up 7% in the quarter and 14% for the full year. In the quarter, we had good results from our operating companies and excellent returns in our investment portfolio.”
“BAM produced $48 million of gross written premiums and member surplus contributions in the quarter.”
“Ark produced good underwriting results in both the quarter and the full year, while growing full-year gross written premiums by 31%.”
“Kudu grew the fair value of its continuing portfolio and closed two new deployments in the quarter. Our investment portfolio was up 6% in the quarter and 11% for the year.”
“The value of our MediaAlpha position grew $66 million in the quarter and $27 million for the year. We redeployed $130 million into Outrigger Re for the coming year and closed on our acquisition of Bamboo in early January. Undeployed capital stands at roughly $500 million.”
