Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Informartion

Segment Information

White Mountains has determined that its reportable segments are OneBeacon, HG Global/BAM and Other Operations. As a result of the Sirius Group sale, the results of operations for Sirius Group have been classified as discontinued operations and are now presented, net of related income taxes, as such in the statement of operations and comprehensive income. Prior year amounts have been reclassified to conform to the current period’s presentation (See Note 17 - “Held for Sale and Discontinued Operations”).

White Mountains has made its segment determination based on consideration of the following criteria: (i) the nature of the business activities of each of the Company’s subsidiaries and affiliates; (ii) the manner in which the Company’s subsidiaries and affiliates are organized; (iii) the existence of primary managers responsible for specific subsidiaries and affiliates; and (iv) the organization of information provided to the chief operating decision makers and the Board of Directors.

Significant intercompany transactions among White Mountains’s segments have been eliminated herein. Financial information for White Mountains’s segments follows:

			HG Global/BAM
Millions	OneBeacon		HG		BAM(1)			Other Operations				Total
Three Months Ended June 30, 2016
Earned insurance premiums	$	271.4	$	1.0	$	.4		$	1.9			$	274.7
Net investment income	12.1		.5		1.8			4.8				19.2
Net investment income (loss) - surplus note interest	—		4.4		(4.4		)	—				—
Net realized and unrealized investment gains (losses)	24.7		.5		3.2			(.3		)		28.1
Other revenue	.8		—		.3			35.1			(2)	36.2
Total revenues	309.0		6.4		1.3			41.5				358.2
Losses and LAE	179.7		—		—			2.3				182.0
Insurance acquisition expenses	48.7		.2		.6			.6				50.1
Other underwriting expenses	50.9		—		.1			—				51.0
General and administrative expenses	3.2		.3		9.6			56.7			(3)	69.8
Amortization of intangible assets	.3		—		—			3.0				3.3
Interest expense	3.2		—		—			.9				4.1
Total expenses	286.0		.5		10.3			63.5				360.3
Pre-tax income (loss)	$	23.0	$	5.9	$	(9.0	)	$	(22.0	)		$	(2.1	)

			HG Global/BAM
Millions	OneBeacon		HG		BAM(1)			Other Operations				Total
Six Months Ended June 30, 2016
Earned insurance premiums	$	550.0	$	1.9	$	.7		$	4.2			$	556.8
Net investment income	26.5		1.0		3.4			6.2				37.1
Net investment income (loss) - surplus note interest	—		8.9		(8.9		)	—				—
Net realized and unrealized investment gains	41.3		2.6		8.1			5.6				57.6
Other revenue	1.7		—		.4			73.9			(2)	76.0
Total revenues	619.5		14.4		3.7			89.9				727.5
Losses and LAE	338.5		—		—			4.6				343.1
Insurance acquisition expenses	99.7		.4		1.3			1.4				102.8
Other underwriting expenses	106.2		—		.2			—				106.4
General and administrative expenses	6.8		.8		18.8			127.4			(3)	153.8
Amortization of intangible assets	.6		—		—			5.8				6.4
Interest expense	6.5		—		—			2.1				8.6
Total expenses	558.3		1.2		20.3			141.3				721.1
Pre-tax income (loss)	$	61.2	$	13.2	$	(16.6	)	$	(51.4	)		$	6.4

				HG Global/BAM
Millions	OneBeacon			HG			BAM(1)			Other Operations			Total
Three Months Ended June 30, 2015
Earned insurance premiums	$	319.3		$	.6		$	.1		$	1.8		$	321.8
Net investment income	10.1			.5			.8			1.8			13.2
Net investment income (loss) - surplus note interest	—			3.9			(3.9		)	—			—
Net realized and unrealized investment (losses) gains	(14.0		)	(1.4		)	(1.9		)	2.3			(15.0		)
Other (loss) revenue	(1.2		)	—			.2			49.7		(2)	48.7
Total revenues	314.2			3.6			(4.7		)	55.6			368.7
Losses and LAE	194.5			—			—			1.7			196.2
Insurance acquisition expenses	56.4			.1			.6			.7			57.8
Other underwriting expenses	52.9			—			.1			—			53.0
General and administrative expenses	3.8			.4			8.7			47.8		(3)	60.7
Amortization of intangible assets	.4			—			—			2.3			2.7
Interest expense	3.3			—			—			.1			3.4
Total expenses	311.3			.5			9.4			52.6			373.8
Pre-tax income (loss)	$	2.9		$	3.1		$	(14.1	)	$	3.0		$	(5.1	)

				HG Global/BAM
Millions	OneBeacon			HG			BAM(1)			Other Operations				Total
Six Months Ended June 30, 2015
Earned insurance premiums	$	605.9		$	1.1		$	.3		$	3.8			$	611.1
Net investment income	20.6			.9			1.8			2.5				25.8
Net investment income (loss) - surplus note interest	—			7.9			(7.9		)	—				—
Net realized and unrealized investment gains (losses)	.2			(.3		)	1.1			9.0				10.0
Other (loss) revenue	(4.3		)	—			.3			80.1			(2)	76.1
Total revenues	622.4			9.6			(4.4		)	95.4				723.0
Losses and LAE	360.4			—			—			3.7				364.1
Insurance acquisition expenses	107.4			.2			1.4			1.8				110.8
Other underwriting expenses	108.8			—			.2			—				109.0
General and administrative expenses	7.6			.8			16.9			103.7			(3)	129.0
Amortization of intangible assets	.7			—			—			4.6				5.3
Interest expense	6.5			—			—			.4				6.9
Total expenses	591.4			1.0			18.5			114.2				725.1
Pre-tax income (loss)	$	31.0		$	8.6		$	(22.9	)	$	(18.8	)		$	(2.1	)

⁽¹⁾ BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes surplus notes and is not reduced by accruals of interest expense on the surplus notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the New York Department of Financial Services.

⁽²⁾ Includes $28.1 and $60.8 from MediaAlpha for the three months and six months ended June 30, 2016, and $23.2 and $52.9 from MediaAlpha for the three months and six months ended June 30, 2015.

⁽³⁾ Includes $26.0 and $56.5 from MediaAlpha for the three months and six months ended June 30, 2016, and $21.9 and $49.6 from MediaAlpha for the three months and six months ended June 30, 2015.