White Mountains Insurance Group Ltd. (WTM, Financial) filed Quarterly Report for the period ended 2010-06-30.
White Mountains Insurance Group Ltd. has a market cap of $2.84 billion; its shares were traded at around $325.9 with a P/E ratio of 24 and P/S ratio of 0.7. The dividend yield of White Mountains Insurance Group Ltd. stocks is 0.3%.WTM is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp, Chuck Royce of Royce& Associates, Murray Stahl of Horizon Asset Management, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
Total net written premiums decreased 14% and 9% to $744 million in the second quarter and $1,689 million in the first six months of 2010 compared to $870 million and $1,862 million in the second quarter and first six months of 2009, primarily due to the sale of the renewal rights to OneBeacons non-specialty commercial lines business beginning with January 1, 2010 renewals. OneBeacons net written premiums were $344 million in the second quarter and $715 million in the first six months of 2010, a decrease of 31% and 26% from the comparable periods of 2009, principally due to the aforementioned sale of non-specialty commercial lines business. OneBeacons Specialty Lines premiums increased by 2% for the second quarter and 8% for the first six months, while Personal Lines premiums decreased by 18% for the quarter and 17% for the first six months. White Mountains Res net written premiums were $207 million in the second quarter and $549 million in the first six months of 2010, an increase of 8% and 10% from the comparable periods of 2009, primarily due to increases in the trade credit and accident & health lines and the effects of foreign currency translation. Esurances net written premiums were $194 million in the second quarter and $425 million in the first six months of 2010, an increase of 7% and 8% from the comparable periods of 2009, due to both improved customer retention and higher new business sales.
White Mountains total revenues decreased 24% to $928 million in the second quarter of 2010 compared to $1,219 million in the second quarter of 2009, primarily due to lower net investment gains. White Mountains reported net realized and unrealized investment gains of $2 million in the second quarter of 2010 compared to $215 million of net realized and unrealized investment gains in the second quarter of 2009. Earned premiums were down 4% in the second quarter of 2010 compared to the second quarter of 2009 as the decrease at OneBeacon was partially offset by increases at White Mountains Re and Esurance. Net investment income was down 26% to $58 million in the second quarter of 2010, due primarily to lower fixed maturity yields and a reduction in invested assets from the OBH Senior Note repurchases at OneBeacon and the Companys on-going share repurchase program. Other revenues decreased to $10 million in the second quarter of 2010 from $29 million the second quarter of 2009, due mainly to $14 million of foreign currency translation losses at White Mountains Re in the second quarter of 2010 compared to $26 million of foreign currency translation gains reported in the second quarter of 2009. In addition, during the second quarter of 2010, OneBeacon repurchased $175 million of the OBH Senior Notes at an average price of 106% of par and recognized a loss of $10 million through other revenues as a result.
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White Mountains Insurance Group Ltd. has a market cap of $2.84 billion; its shares were traded at around $325.9 with a P/E ratio of 24 and P/S ratio of 0.7. The dividend yield of White Mountains Insurance Group Ltd. stocks is 0.3%.WTM is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp, Chuck Royce of Royce& Associates, Murray Stahl of Horizon Asset Management, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
White Mountains ended the second quarter of 2010 with an adjusted book value per share of $406, a decrease of 1% for the three months and 2% for the six months ended June 30, 2010, including dividends. White Mountains reported adjusted comprehensive loss of $67 million and $118 million for the second quarter and first six months of 2010, compared to adjusted comprehensive income of $236 million and $226 million for the second quarter and first six months of 2009. Adjusted book value per share decreased by $7 and $9 in the second quarter and first six months of 2010 from foreign currency translation losses, due primarily to the strengthening U.S. dollar, compared to an increase of $5 and $1 from foreign currency translation gains in the second quarter and first six months of 2009. The results for the second quarter of 2010 were also impacted by $38 million of natural catastrophe losses, including $20 million from the February 2010 earthquake in Chile at White Mountains Re, compared to $10 million of natural catastrophe losses in the second quarter of 2009. The results for the first six months of 2010 were impacted by $204 million of natural catastrophe losses, primarily from the Chile earthquake and winter weather in the Northeastern United States and Europe, compared to $25 million of catastrophe losses from relatively benign weather and few catastrophes in the first six months of 2009. White Mountains GAAP pre-tax total return on invested assets was -0.8% and 0.7% for the second quarter and first six months of 2010, which included -1.1% and -1.4% of currency losses, compared to 4.5% and 4.3% for the corresponding prior year periods, which included 1.0% and 0.4% of foreign currency gains. During the second quarter and first six months of 2010, White Mountains repurchased and retired 244,090 and 347,409 of its common shares under its share repurchase program for $82 million and $117 million. These repurchases were completed at an average price of 82% of White Mountains June 30, 2010 adjusted book value per share. As a result, the repurchases increased adjusted book value per share by $2 and $3 in the second quarter and first six months of 2010. In July 2010, OneBeacon closed the sale of its traditional personal lines business to Tower Group, Inc. In the third quarter of 2010, OneBeacon will record an after tax gain of approximately $19 million on the sale in addition to a $6 million tax benefit booked in the second quarter related to the difference between the tax basis of the companies sold to Tower and the net asset value of those entities under GAAP.Total net written premiums decreased 14% and 9% to $744 million in the second quarter and $1,689 million in the first six months of 2010 compared to $870 million and $1,862 million in the second quarter and first six months of 2009, primarily due to the sale of the renewal rights to OneBeacons non-specialty commercial lines business beginning with January 1, 2010 renewals. OneBeacons net written premiums were $344 million in the second quarter and $715 million in the first six months of 2010, a decrease of 31% and 26% from the comparable periods of 2009, principally due to the aforementioned sale of non-specialty commercial lines business. OneBeacons Specialty Lines premiums increased by 2% for the second quarter and 8% for the first six months, while Personal Lines premiums decreased by 18% for the quarter and 17% for the first six months. White Mountains Res net written premiums were $207 million in the second quarter and $549 million in the first six months of 2010, an increase of 8% and 10% from the comparable periods of 2009, primarily due to increases in the trade credit and accident & health lines and the effects of foreign currency translation. Esurances net written premiums were $194 million in the second quarter and $425 million in the first six months of 2010, an increase of 7% and 8% from the comparable periods of 2009, due to both improved customer retention and higher new business sales.
White Mountains total revenues decreased 24% to $928 million in the second quarter of 2010 compared to $1,219 million in the second quarter of 2009, primarily due to lower net investment gains. White Mountains reported net realized and unrealized investment gains of $2 million in the second quarter of 2010 compared to $215 million of net realized and unrealized investment gains in the second quarter of 2009. Earned premiums were down 4% in the second quarter of 2010 compared to the second quarter of 2009 as the decrease at OneBeacon was partially offset by increases at White Mountains Re and Esurance. Net investment income was down 26% to $58 million in the second quarter of 2010, due primarily to lower fixed maturity yields and a reduction in invested assets from the OBH Senior Note repurchases at OneBeacon and the Companys on-going share repurchase program. Other revenues decreased to $10 million in the second quarter of 2010 from $29 million the second quarter of 2009, due mainly to $14 million of foreign currency translation losses at White Mountains Re in the second quarter of 2010 compared to $26 million of foreign currency translation gains reported in the second quarter of 2009. In addition, during the second quarter of 2010, OneBeacon repurchased $175 million of the OBH Senior Notes at an average price of 106% of par and recognized a loss of $10 million through other revenues as a result.
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