White Mountains income boosted by “solid” quarter for Ark

Bermuda domiciled financial services holding company White Mountains Insurance Group has reported comprehensive income of $139 million for the second quarter of 2021, up from $116 million for the same period last year.

Results were boosted by a “solid” performance at Ark, which was acquired by White Mountains in January, and which recorded income of $18 million, following a loss of $33 million in Q1.

Ark, which is focused on P&C re/insurance business, reported gross written premiums of $328 million, net written premiums of $262 million and net earned premiums of $118 million.

Looking at the first six months of the year, White Mountains reported comprehensive income of $66 million, compared with a loss of $17 million for the H1 period of 2020.

The firm also noted that results in both the second quarter and first six months of 2021 were driven primarily by $113 million and $71 million of net realized and unrealized investment gains from White Mountains’s investment in MediaAlpha.

“We had a strong second quarter,” said White Mountains CEO Manning Rountree. “Adjusted book value per share was up 4%, driven by solid results across our operating companies as well as the increase in MediaAlpha’s share price during the quarter.”

“BAM produced $30 million of total premiums and member surplus contributions, as insured penetration and market share remained strong, while pricing declined. Ark wrote $328 million of gross written premiums, up 78% year over year, and produced an 84% adjusted combined ratio,” Rountree continued.

“NSM generated nice growth in both pro forma controlled premiums and pro forma adjusted EBITDA. Kudu also posted nice growth in adjusted EBITDA and recognized $28 million in unrealized gains in the fair value of its portfolio of participation contracts.”

“Excluding MediaAlpha, our investment portfolio returned 2.4% in the quarter. We finished the second quarter with roughly $300 million in undeployed capital.  We expect undeployed capital will increase in the third quarter upon completion of the subordinated debt raise at Ark.”

The post White Mountains income boosted by “solid” quarter for Ark appeared first on ReinsuranceNe.ws.

Source: https://www.reinsurancene.ws/white-mountains-income-boosted-by-solid-quarter-for-ark/

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