NYSE$WTM

White Mountains Insurance Group Ltd · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a good first quarter with ABVPS up 1%. Positive results from operating companies and equity portfolio offset headwinds from rising interest rates.

White Mountains reported a positive first quarter, with adjusted book value per share increasing by 1%. The company benefited from strong performance in its operating companies and equity portfolio, which offset the negative impact of rising interest rates on its fixed income portfolio. Key contributors included BAM, Ark, NSM, and Kudu.

  • Adjusted book value per share increased by 1% in Q1 2022.
  • BAM produced $22 million of total premiums and member surplus contributions.
  • Ark's gross written premiums increased by 57% year-over-year, with risk adjusted rate change up 9%.
  • NSM experienced healthy growth in pro forma controlled premiums and pro forma adjusted EBITDA.

Headline financials

Total Revenue

$349M

Previous: $178M+95.8%
EPS (adj)

-$11.10

Previous: -$30.33+63.4%
Book Value Per Share

$1.18K

Previous: $1.23K-3.9%
Free Cash Flow

$33.4M

Previous: -$75.3M+144.4%
Net Income

$33.4M

Previous: -$75.3M+144.4%
Operating Income

$162M

Previous: $17.2M+843.0%
Gross Profit

$328M

Previous: $174M+88.0%
Cash & Equivalents

$188M

Previous: $471M-60.0%
Total Assets

$7.36B

Previous: $6.9B+6.6%

Revenue & EPS history

White Mountains · Revenue · Quarterly

$349M

Q1 2022+95.8%vs Q1 2021
Beat estimate in 6 of 9 quarters(67%)
ActualEstimate

Revenue by segment

White Mountains · $84.7M total across 3 segments · Q1 2022

  • Other Operations
    $81.1M+451.1%
  • Asset Management
    $34.9M+44.8%
  • Financial Guarantee
    -$31.3M-367.2%

Forward guidance

The company provided forward guidance, expressing optimism about continued profitable growth in the book, driven by strong January renewals and attractive market conditions.

Tailwinds

  • Strong rate environment experienced in 2021 has carried through to 2022.
  • Driven by solid January renewals, gross written premiums were up 57% from 2021, with risk adjusted rate change up 9%.
  • Market conditions remain attractive.
  • Optimistic about continued profitable growth in the book.
  • Kudu expects further capital deployments throughout the year.

Headwinds

  • Rising interest rates were a headwind in the fixed income portfolio.
  • Ark produced break-even underwriting results in the quarter, reflecting the impact of estimated losses emanating from the conflict in Ukraine.
  • Losses from the conflict in Ukraine could increase as the conflict continues.
  • HG Global's pre-tax loss increased due to lower investment returns on the fixed income portfolio.
  • BAM's pre-tax loss increased due to lower investment returns on the fixed income portfolio.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+1.3%

Avg return

30 days after

51%

34 / 67 earnings

Positive

+8.3%

Q1 2022

Best reaction

-4.2%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-0.9%-4.2%
Q4 2025+2.5%+0.8%+1.8%
Q3 2025-0.2%+1.5%+7.2%
Q1 2025+0.9%-0.8%-2.7%
Q4 2024-3.4%-7.3%-4.4%
Q3 2024+5.8%+7.4%+11.8%
Q2 2024-3.0%-4.5%+0.2%
Q1 2024-1.4%-6.1%-6.1%
Q4 2023+1.3%+6.1%+9.4%
Q3 2023-0.4%+3.3%+0.1%
Q2 2023-0.5%+0.1%-1.7%
Q1 2023+0.3%-1.9%-0.8%
Q4 2022+1.8%+2.6%-6.7%
Q3 2022+0.8%-1.3%-3.7%
Q2 2022+0.9%+3.6%+10.1%
Q1 2022+8.3%+7.6%+19.3%
Q4 2021+2.0%+2.1%+1.7%
Q3 2021+2.5%+2.7%-6.3%
Q2 2021+1.7%+1.1%-0.2%
Q1 2021-3.2%-4.0%-8.7%
Q4 2020+3.0%+9.6%+10.3%
Q3 2020+0.4%-2.5%+3.8%
Q2 2020+7.7%+3.2%-0.2%
Q4 2019+0.5%+0.8%-11.8%
Q3 2019+0.8%+1.7%+1.6%
Q2 2019+1.7%+2.7%+1.1%
Q1 2019-0.9%+2.7%+5.5%
Q4 2018+1.1%+3.3%+2.9%
Q3 2018+1.0%+0.8%+6.1%
Q2 2018+0.3%+0.7%-1.3%
Q1 2018-0.0%-0.4%+4.2%
Q4 2017-3.0%+0.1%+2.6%
Q3 2017+1.8%+0.4%-1.1%
Q2 2017-0.5%-1.3%+2.0%
Q1 2017+1.7%+0.8%+1.3%
Q4 2016-2.0%-1.2%+1.5%
Q3 2016-0.2%-0.3%+3.2%
Q2 2016+0.6%+1.1%+0.9%
Q1 2016-0.1%
Q4 2015+6.0%
Q3 2015-3.8%
Q2 2015+3.5%
Q1 2015-0.1%
Q4 2014-1.2%
Q3 2014-1.8%
Q2 2014-0.2%
Q1 2014+0.3%
Q4 2013-0.3%
Q3 2013+0.4%
Q2 2013-0.2%
Q1 2013-0.4%
Q4 2012+0.0%
Q3 2012+0.1%
Q2 2012-4.2%
Q1 2012+1.9%
Q4 2011-0.4%
Q3 2011-3.6%
Q2 2011+0.7%
Q1 2010-2.0%
Q1 2011+1.4%
Q4 2008-0.8%
Q4 2010-0.8%
Q3 2010+1.4%
Q3 2009+1.4%
Q2 2010-1.8%
Q4 2009-1.8%
Q2 2009-1.8%

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