Segment Information

White Mountains has determined that its reportable segments are HG Global/BAM, NSM, MediaAlpha and Other 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. The following table presents the financial information for White Mountains’s segments:



Millions	HG Global/BAM			NSM			MediaAlpha		Other Operations		Total
Three Months Ended September 30, 2018
Earned insurance premiums	$	3.3		$	—		$	—	$	—	$	3.3
Net investment income	4.8			—			—		8.6		13.4
Net realized and unrealized investment (losses) gains	(4.1		)	—			—		70.2		66.1
Advertising and commission revenues ⁽¹⁾	—			36.6			74.5		1.1		112.2
Other revenue	.2			3.1			—		.4		3.7
Total revenues	4.2			39.7			74.5		80.3		198.7
Insurance acquisition expenses	1.2			—			—		—		1.2
Other underwriting expenses	.1			—			—		—		.1
Cost of sales	—			—			61.8		1.1		62.9
General and administrative expenses	11.3			25.8			5.4		26.0		68.5
Broker commission expense	—			10.9			—		—		10.9
Amortization of other intangible assets	—			5.0			2.4		—		7.4
Interest expense	—			3.2			.2		—		3.4
Total expenses	12.6			44.9			69.8		27.1		154.4
Pre-tax (loss) income	$	(8.4	)	$	(5.2	)	$	4.7	$	53.2	$	44.3


⁽¹⁾	Approximately 30% of MediaAlpha’s advertising revenue for the three months ended September 30, 2018 was associated with one customer.



Millions	HG Global/BAM			MediaAlpha			Other Operations		Total
Three Months Ended September 30, 2017
Earned insurance premiums	$	2.4		$	—		$	—	$	2.4
Net investment income	3.3			—			8.9		12.2
Net realized and unrealized investment gains	.8			—			31.7		32.5
Advertising and commission revenues ⁽¹⁾	—			37.9			.9		38.8
Other revenue	.2			—			1.4		1.6
Total revenues	6.7			37.9			42.9		87.5
Insurance acquisition expenses	.9			—			—		.9
Other underwriting expenses	.1			—			—		.1
Cost of sales	—			32.2			.9		33.1
General and administrative expenses	10.6			3.8			27.3		41.7
Amortization of other intangible assets	—			2.3			.1		2.4
Interest expense	—			.1			.8		.9
Total expenses	11.6			38.4			29.1		79.1
Pre-tax (loss) income	$	(4.9	)	$	(.5	)	$	13.8	$	8.4


⁽¹⁾	Approximately 32% of MediaAlpha’s advertising revenue for the three months ended September 30, 2017 was associated with one customer.



Millions	HG Global/BAM			NSM ⁽²⁾			MediaAlpha		Other Operations			Total
Nine Months Ended September 30, 2018
Earned insurance premiums	$	9.7		$	—		$	—	—			$	9.7
Net investment income	12.5			—			—		32.4			44.9
Net realized and unrealized investment (losses) gains	(14.4		)	—			—		37.3			22.9
Advertising and commission revenues ⁽¹⁾	—			59.2			216.4		3.0			278.6
Other revenue	.8			4.0			1.6		.6			7.0
Total revenues	8.6			63.2			218.0		73.3			363.1
Insurance acquisition expenses	3.9			—			—		—			3.9
Other underwriting expenses	.3			—			—		—			.3
Cost of sales	—			—			179.1		2.9			182.0
General and administrative expenses	36.5			37.9			21.2		79.0			174.6
Broker commission expense	—			17.5			—		—			17.5
Amortization of other intangible assets	—			5.0			7.8		.1			12.9
Interest expense	—			4.8			.9		.3			6.0
Total expenses	40.7			65.2			209.0		82.3			397.2
Pre-tax (loss) income	$	(32.1	)	$	(2.0	)	$	9.0	$	(9.0	)	$	(34.1	)


⁽¹⁾	Approximately 31% of MediaAlpha’s advertising revenue for the nine months ended September 30, 2018 was associated with one customer.

⁽²⁾NSM’s results are from May 11, 2018, the date of acquisition, to the end of the third quarter.



Millions	HG Global/BAM			MediaAlpha			Other Operations		Total
Nine Months Ended September 30, 2017
Earned insurance premiums	$	6.6		$	—		$	—	$	6.6
Net investment income	8.9			—			30.8		39.7
Net realized and unrealized investment gains	3.2			—			99.3		102.5
Advertising and commission revenues ⁽¹⁾	—			101.2			2.7		103.9
Other revenue	.8			—			6.3		7.1
Total revenues	19.5			101.2			139.1		259.8
Insurance acquisition expenses	3.0			—			—		3.0
Other underwriting expenses	.3			—			—		.3
Cost of sales	—			86.0			2.7		88.7
General and administrative expenses	31.5			10.7			113.9		156.1
Amortization of other intangible assets	—			7.2			.1		7.3
Interest expense	—			.6			1.2		1.8
Total expenses	34.8			104.5			117.9		257.2
Pre-tax (loss) income	$	(15.3	)	$	(3.3	)	$	21.2	$	2.6


⁽¹⁾	Approximately 29% of MediaAlpha’s advertising revenue for the nine months ended September 30, 2017 was associated with one customer.