The next dialogue accommodates "forward-looking statements."White Mountains intends statements that aren't historic in nature, that are hereby recognized as forward-looking statements, to be coated by the protected harbor provisions of the Non-public Securities Litigation Reform Act of 1995.White Mountains can not promise that its expectations in such forward-looking statements will become right.White Mountains's precise outcomes might be materially completely different from and worse than its expectations. See "FORWARD-LOOKING STATEMENTS" on web page 76 for particular necessary elements that might trigger precise outcomes to vary materially from these contained in forward-looking statements. The next dialogue additionally consists of 9 non-GAAP monetary measures: (i) adjusted ebook worth per share, (ii) Ark's adjusted loss and LAE ratio, (iii) Ark's adjusted insurance coverage acquisition expense ratio, (iv) Ark's adjusted different underwriting expense ratio, (v) Ark's adjusted mixed ratio (vi) Kudu's earnings earlier than curiosity, taxes, depreciation and amortization ("EBITDA"), (vii) Kudu's adjusted EBITDA, (viii) whole consolidated portfolio returns excluding MediaAlpha, and (ix) adjusted capital, which have been reconciled from their most comparable GAAP monetary measures on web page 74.White Mountains believes these measures to be helpful in evaluatingWhite Mountains's monetary efficiency and situation.
RESULTS OF OPERATIONS AT THE END OF THREE AND NINE MONTHS
Overview
White Mountains reported ebook worth per share of$1,439 and adjusted ebook worth per share of$1,471 as ofSeptember 30, 2022 . E book worth per share and adjusted ebook worth per share each elevated 28% within the third quarter of 2022. For the first 9 months of 2022, ebook worth elevated 23% and adjusted ebook worth elevated 24%, together with dividends. The will increase in ebook worth per share and adjusted ebook worth per share have been pushed primarily by the online acquire from the sale of NSM of roughly$300 per share (based mostly on 2.9 million shares excellent atAugust 1, 2022 ). As well as, the expansion inWhite Mountains's ebook worth per share and adjusted ebook worth per share mirror good working outcomes at its companies, partially offset by web realized and unrealized losses in its mounted revenue portfolio and funding in MediaAlpha.White Mountains reported ebook worth per share of$1,162 and adjusted ebook worth per share of$1,176 as ofSeptember 30, 2021 . E book worth per share and adjusted ebook worth per share each decreased 9% within the third quarter of 2021. E book worth per share decreased 8% and adjusted ebook worth per share decreased 7% within the first 9 months of 2021, together with dividends. Leads to the third quarter and first 9 months of 2021 have been pushed primarily by$397 million and$326 million of web realized and unrealized funding losses fromWhite Mountains's funding in MediaAlpha, ensuing from decreases within the MediaAlpha share worth. OnAugust 1, 2022 ,White Mountains closed the NSM Transaction.White Mountains obtained$1.4 billion in web money proceeds at closing and acknowledged a web acquire of$876 million , which was comprised of$887 million of web acquire from sale of discontinued operations and$3 million of complete revenue associated to the recognition of international forex translation positive aspects (losses) from the sale, partially offset by$14 million of compensation and different prices associated to the transaction recorded in Different Operations. In the course of the third quarter of 2022,White Mountains repurchased and retired 366,645 of its widespread shares for$509 million at a median share worth of$1,388.24 , or 96% ofWhite Mountains's September 30, 2022 ebook worth per share and 94% ofWhite Mountains's September 30, 2022 adjusted ebook worth per share. As ofSeptember 30, 2022 ,White Mountains's undeployed capital was roughly$1.1 billion . Within the HG World/BAM section, gross written premiums and MSC collected totaled$46 million and$109 million within the third quarter and first 9 months of 2022 in comparison with$28 million and$84 million within the third quarter and first 9 months of 2021. Complete pricing was 110 and 81 foundation factors within the third quarter and first 9 months of 2022 in comparison with 69 and 66 foundation factors within the third quarter and first 9 months of 2021. BAM insured municipal bonds with par worth of$4.1 billion and$13.5 billion within the third quarter and first 9 months of 2022 in comparison with$4.0 billion and$12.6 billion within the third quarter and first 9 months of 2021. BAM's whole claims paying assets have been$1,260 million as ofSeptember 30, 2022 in comparison with$1,192 million as ofDecember 31, 2021 and$1,181 million as ofSeptember 30, 2021 . 48 -------------------------------------------------------------------------------- Ark reported a GAAP mixed ratio of 87% and 90% within the third quarter and first 9 months of 2022 in comparison with 92% and 95% within the third quarter and first 9 months of 2021. Ark's adjusted mixed ratio, which provides again quantities attributable to TPC suppliers, was 86% and 90% within the third quarter and first 9 months of 2022 in comparison with 89% and 93% within the third quarter and first 9 months of 2021. The adjusted mixed ratio for the third quarter and first 9 months of 2022 included 21 factors and 17 factors of disaster losses in contrast to 21 factors and 16 factors within the third quarter and first 9 months of 2021. Disaster losses for the third quarter and first 9 months of 2022 included$51 million associated to Hurricane Ian on a web foundation after reinstatement premiums. The adjusted mixed ratio within the third quarter and first 9 months of 2022 additionally included 4 factors and 5 factors of favorable prior 12 months growth in comparison with six factors and 5 factors within the third quarter and first 9 months of 2021, principally in property traces. Ark reported gross written premiums of$216 million and$1,253 million , web written premiums of$193 million and$1,007 million and web earned premiums of$346 million and$758 million within the third quarter and first 9 months of 2022 in comparison with gross written premiums of$162 million and$895 million , web written premiums of$121 million and$726 million and web earned premiums of$213 million and$436 million and within the third quarter and first 9 months of 2021. Ark reported pre-tax revenue (loss) of$24 million and$(20) million within the third quarter and first 9 months of 2022 in comparison with$11 million and$(4) million in third quarter and first 9 months of 2021. Ark's outcomes included web realized and unrealized funding positive aspects (losses) of$(14) million and$(77) million within the third quarter and first 9 months of 2022 in comparison with$0.3 million and$10 million within the third quarter and first 9 months of 2021. Ark's pre-tax loss for the primary 9 months of 2021 additionally included$25 million of transaction bills associated toWhite Mountains's transaction with Ark Kudu reported whole income of$56 million , pre-tax revenue of$47 million and adjusted EBITDA of$12 million within the third quarter of 2022 in comparison with whole income of$29 million , pre-tax revenue of$23 million and adjusted EBITDA of$7 million within the third quarter of 2021. Complete revenues and pre-tax revenue within the third quarter of 2022 included$41 million of web realized and unrealized funding positive aspects on Kudu's participation contracts in comparison with$19 million of web realized and unrealized funding positive aspects on Kudu's participation contracts within the third quarter of 2021. Kudu reported whole income of$87 million , pre-tax revenue of$66 million and adjusted EBITDA of$33 million within the first 9 months of 2022 in comparison with whole income of$89 million , pre-tax revenue of$70 million and adjusted EBITDA of$19 million within the first 9 months of 2021. Complete revenues and pre-tax revenue within the first 9 months of 2022 included$46 million of web realized and unrealized funding positive aspects on Kudu's participation contracts in comparison with$63 million of web realized and unrealized funding positive aspects on Kudu's participation contracts within the first 9 months of 2021. As ofSeptember 30, 2022 , the market worth ofWhite Mountains's funding in MediaAlpha was$148 million , which was down from$167 million as ofJune 30, 2022 . As ofSeptember 30, 2022 , the closing worth was$8.75 per share, which decreased from$9.85 as ofJune 30, 2022 . Based mostly onWhite Mountains's possession of 16.9 million shares of MediaAlpha as ofSeptember 30, 2022 , every$1.00 per share improve or lower within the inventory worth of MediaAlpha will end in an approximate$6.60 per share improve or lower inWhite Mountains's ebook worth per share and adjusted ebook worth per share.White Mountains's pre-tax whole consolidated portfolio return on invested property was 0.4% within the third quarter of 2022. This return included$19 million of unrealized funding losses fromWhite Mountains's funding in MediaAlpha. Excluding MediaAlpha, the overall consolidated portfolio return on invested property was 0.5% within the third quarter of 2022. Excluding MediaAlpha, funding returns within the third quarter of 2022 have been pushed primarily by favorable different long-term funding outcomes, which greater than offset web realized and unrealized funding losses within the mounted revenue portfolio because of rising rates of interest.White Mountains's pre-tax whole consolidated portfolio return on invested property was -8.0% within the third quarter of 2021. This return included$397 million of unrealized funding losses fromWhite Mountains's funding in MediaAlpha. Excluding MediaAlpha, the overall consolidated portfolio return on invested property was 1.4% within the third quarter of 2021. Excluding MediaAlpha, funding returns within the third quarter of 2021 have been pushed primarily by favorable different long-term investments outcomes.White Mountains's pre-tax whole consolidated portfolio return on invested property was -3.6% within the first 9 months of 2022. This return included$113 million of web unrealized funding losses fromWhite Mountains's funding in MediaAlpha. Excluding MediaAlpha, the overall consolidated portfolio return on invested property was -1.4% within the first 9 months of 2022. Excluding MediaAlpha, funding returns within the first 9 months of 2022 have been pushed primarily by web unrealized funding losses within the mounted revenue portfolio due to rising rates of interest, partially offset by favorable different long-term funding outcomes.White Mountains's pre-tax whole consolidated portfolio return on invested property was -3.7% within the first 9 months of 2021. This return included$326 million of web realized and unrealized funding losses fromWhite Mountains's funding in MediaAlpha. Excluding MediaAlpha, the overall consolidated portfolio return on invested property was 4.6% within the first 9 months of 2021. Excluding MediaAlpha, funding returns within the first 9 months of 2021 have been pushed primarily by favorable different long-term funding outcomes. 49
--------------------------------------------------------------------------------
Adjusted ebook worth per share
The next desk presents
September 30, June 30, December 31, September 30,
2022 2022 2021 2021
E book worth per share numerators (in
thousands and thousands):
White Mountains's widespread shareholders'
fairness -
GAAP ebook worth per share numerator $ 3,708.0 $
3,323.3
Time worth of cash low cost on anticipated future funds on the BAM Surplus Notes (1) (110.8) (115.9) (125.9) (128.0) HG World's unearned premium reserve (1) 232.2 221.6 214.6 206.8 HG World's web deferred acquisition prices (1) (65.9) (62.6) (60.8) (58.1) Adjusted ebook worth per share numerator$ 3,763.5 $
3,366.4
E book worth by share denominators (in 1000’s of shares): Frequent shares excellent – GAAP ebook worth
per share denominator 2,576.2 2,942.9 3,017.8 3,029.6 Unearned restricted widespread shares (17.5) (20.9) (13.7) (17.0) Adjusted ebook worth per share denominator 2,558.7 2,922.0 3,004.1 3,012.6 GAAP ebook worth per share$ 1,439.31 $
1,129.27
Adjusted ebook worth per share
$ 1,470.84 $
1,152.12
Dividends paid per share thus far
$ 1.00 $
1.00
(1) Quantity displays
The next desk presents a abstract of goodwill and different intangible property which might be included inWhite Mountains's ebook worth as ofSeptember 30, 2022 ,June 30, 2022 ,December 31, 2021 , andSeptember 30, 2021 : September 30, June 30, December 31, September 30, Thousands and thousands 2022 2022 2021 2021Goodwill : Ark$ 116.8 $ 116.8 $ 116.8 $ 116.8 Kudu 7.6 7.6 7.6 7.6 Different Operations 51.1 (1) 77.4 (1) 17.9 17.4 Complete goodwill 175.5 201.8 142.3 141.8 Different intangible property: Ark 175.7 175.7 175.7 175.7 Kudu 1.1 1.1 1.3 1.4 Different Operations 40.9 19.4 21.2 31.3 Complete different intangible property 217.7 196.2 198.2 208.4 Complete goodwill and different intangible property (2) 393.2 398 340.5 350.2Goodwill and different intangible property attributed to non-controlling pursuits (103.1) (103.4) (91.8) (92.0)Goodwill and different intangible property included inWhite Mountains's widespread shareholders' fairness$ 290.1 $ 294.6 $ 248.7 $ 258.2 (1) The relative honest values of goodwill and different intangible property acknowledged in reference to current acquisitions had not but been finalized as ofSeptember 30, 2022 andJune 30, 2022 . (2) See Notice 4 - "Goodwill and Different Intangible Property" for particulars of goodwill and different intangible property. 50 --------------------------------------------------------------------------------
Abstract of Consolidated Outcomes
The next desk presents
Three Months Ended
9 months executed
September 30, September 30,
Thousands and thousands 2022 2021 2022 2021
Revenue
Monetary Assure revenues$ (24.7) $ 7.4 $ (69.2) $ 18.1 P&C Insurance coverage and Reinsurance revenues 343.2 217.7
701.1 457.3
Asset Administration revenues 55.9 28.5
87.0 88.8
Different Operations revenues 8.8 (346.0) 1.4 (210.8) Complete revenues 383.2 (92.4) 720.3 353.4 Bills Monetary Assure bills 19.5 15.4 64.4 49.2 P&C Insurance coverage and Reinsurance bills 319.1 206.8
721.5 461.1
Asset Administration bills 8.7 5.2
20.7 18.4
Different Operations bills 66.9 40.8 192.1 129.3 Complete bills 414.2 268.2 998.7 658.0 Pre-tax revenue (loss) Monetary Assure pre-tax revenue (loss) (44.2) (8.0) (133.6) (31.1)P&C Insurance coverage and Reinsurance pre-tax revenue (loss) 24.1 10.9
(20.4) (3.8)
Asset Administration pre-tax revenue (loss) 47.2 23.3
66.3 70.4
Different Operations pre-tax revenue (loss) (58.1) (386.8) (190.7) (340.1) Complete pre-tax revenue (loss) from persevering with operations (31.0) (360.6) (278.4) (304.6) Revenue tax (expense) profit 7.4 (28.6) 26.1 (52.2) Web revenue (loss) from persevering with operations (23.6) (389.2) (252.3) (356.8) Web revenue (loss) from discontinued operations, web of tax - NSM Group 6.3 5.3 16.4 (23.8) Web acquire (loss) from sale of discontinued operations, web of tax - NSM Group 886.8 - 886.8 - Web acquire (loss) from sale of discontinued operations, web of tax - Sirius Group - - - 18.7 Web revenue (loss) 869.5 (383.9) 650.9 (361.9) Web (revenue) loss attributable to non-controlling pursuits 18.7 12.5 101.5 53.7 Web revenue (loss) attributable toWhite Mountains's widespread shareholders 888.2 (371.4) 752.4 (308.2) Different complete revenue (loss), web of tax (1.4) - (3.0) (.3) Different complete revenue (loss) from discontinued operations, web of tax - NSM Group .7 (2.2) (5.2) .9 Recognition of international forex translation from sale of NSM Group, web of tax 2.9 - 2.9 - Complete revenue (loss) 890.4 (373.6) 747.1 (307.6) Different complete (revenue) loss attributable to non-controlling pursuits (.3) .2 .4 - Complete revenue (loss) attributable to White Mountains's widespread shareholders$ 890.1 $ (373.4) $ 747.5 $ (307.6) 51
--------------------------------------------------------------------------------
I. Abstract of Operations by Section
As ofSeptember 30, 2022 ,White Mountains performed its operations by 4 segments: (1) HG World/BAM, (2) Ark, (3) Kudu and (4) Different Operations. A dialogue ofWhite Mountains's consolidated funding operations is included after the dialogue of operations by section.White Mountains's section info is offered in Notice 15 - "Section Data" to the Consolidated Monetary Statements. On account of the NSM Transaction, the outcomes of operations forNSM Group have been labeled as discontinued operations and are offered individually, web of associated revenue taxes, within the assertion of complete revenue by the closing of the transaction. Prior 12 months quantities have been reclassified to adapt to the present interval's presentation. See Notice 19 - "Held for Sale and Discontinued Operations."
HG World/BAM
HG World/BAM consists of the consolidated outcomes of HG World, HG Re and BAM. BAM is the primary and solely mutual municipal bond insurance coverage firm inthe United States . By insuring the well timed cost of principal and curiosity, BAM gives market entry to, and lowers curiosity expense for, issuers of municipal bonds used to finance important public function initiatives, resembling colleges, utilities and transportation services. BAM is owned by and operated for the good thing about its members, the municipalities that buy BAM's insurance coverage for his or her debt issuances. HG World was established to fund the startup of BAM and, by HG Re, to supply as much as 15%-of-par, first loss reinsurance safety for insurance policies underwritten by BAM. The next tables current the elements of pre-tax revenue (loss) included inWhite Mountains's HG World/BAM section associated to the consolidation of HG World, which incorporates HG Re and its different wholly-owned subsidiaries, and BAM for the three and 9 months endedSeptember 30, 2022 and 2021: Three Months Ended September 30, 2022 Thousands and thousands HG World BAM Eliminations Complete Direct written premiums $ -$ 18.4 $ -$ 18.4 Assumed written premiums 16.8 1.3 (16.8) 1.3 Gross written premiums 16.8 19.7 (16.8) 19.7 Ceded written premiums - (16.8) 16.8 - Web written premiums$ 16.8 $ 2.9 $ -$ 19.7 Earned insurance coverage premiums$ 5.9 $ 1.2 $ -$ 7.1 Web funding revenue 2.8 2.9 - 5.7 Web funding revenue - BAM Surplus Notes 2.9 - (2.9) - Web realized and unrealized funding positive aspects (losses) (19.6) (19.2) - (38.8) Different revenues .1 1.2 - 1.3 Complete revenues (7.9) (13.9) (2.9) (24.7) Insurance coverage acquisition bills 1.6 .1 - 1.7 Normal and administrative bills .6 15.2 - 15.8 Curiosity expense - HG World Senior Notes 2.0 - - 2.0 Curiosity expense - BAM Surplus Notes - 2.9 (2.9) - Complete bills 4.2 18.2 (2.9) 19.5 Pre-tax revenue (loss)$ (12.1) $ (32.1) $ -$ (44.2) Supplemental info: MSC collected (1) $ -$ 26.0 $ -$ 26.0
(1) The MSC collected are recorded straight within the fairness of BAM, which is recorded as a non-controlling curiosity in
52
--------------------------------------------------------------------------------
Three Months Ended September 30, 2021
Thousands and thousands HG World BAM Eliminations Complete
Direct written premiums $ - $ 12.8 $ - $ 12.8
Assumed written premiums 10.9 - (10.9) -
Gross written premiums 10.9 12.8 (10.9) 12.8
Ceded written premiums - (10.9) 10.9 -
Web written premiums $ 10.9 $ 1.9 $ - $ 12.8
Earned insurance coverage premiums $ 5.5 $ 1.2 $ - $ 6.7
Web funding revenue 1.9 2.5 - 4.4
Web funding revenue - BAM Surplus Notes 3.1 - (3.1) -
Web realized and unrealized funding positive aspects (2.0) (2.0) - (4.0)
Different revenues .1 .2 - .3
Complete revenues 8.6 1.9 (3.1) 7.4
Insurance coverage acquisition bills 1.5 1.5 - 3.0
Normal and administrative bills .2 12.2 - 12.4
Curiosity expense - BAM Surplus Notes - 3.1 (3.1) -
Complete bills 1.7 16.8 (3.1) 15.4
Pre-tax revenue (loss) $ 6.9 $ (14.9) $ - $ (8.0)
Supplemental info:
MSC collected (1) $ - $ 14.7 $ - $ 14.7
(1) The MSC collected are recorded straight within the fairness of BAM, which is recorded as a non-controlling curiosity in
9 Months Ended September 30, 2022
Thousands and thousands HG World BAM Eliminations Complete
Direct written premiums $ - $ 44.9 $ - $ 44.9
Assumed written premiums 39.6 1.3 (39.6) 1.3
Gross written premiums 39.6 46.2 (39.6) 46.2
Ceded written premiums - (39.6) 39.6 -
Web written premiums $ 39.6 $ 6.6 $ - $ 46.2
Earned insurance coverage premiums $ 21.5 $ 4.5 $ - $ 26.0
Web funding revenue 7.1 8.0 - 15.1
Web funding revenue - BAM Surplus Notes 8.8 - (8.8) -
Web realized and unrealized funding positive aspects
(losses) (57.8) (56.2) - (114.0)
Different revenues .3 3.4 - 3.7
Complete revenues (20.1) (40.3) (8.8) (69.2)
Insurance coverage acquisition bills 7.6 1.9 - 9.5
Normal and administrative bills 2.1 47.4 - 49.5
Curiosity expense - HG World Senior Notes 5.4 - - 5.4
Curiosity expense - BAM Surplus Notes - 8.8 (8.8) -
Complete bills 15.1 58.1 (8.8) 64.4
Pre-tax revenue (loss) $ (35.2) $ (98.4) $ - $ (133.6)
Supplemental info:
MSC collected (1) $ - $ 62.3 $ - $ 62.3
(1) The MSC collected are recorded straight within the fairness of BAM, which is recorded as a non-controlling curiosity in
53
--------------------------------------------------------------------------------
9 Months Ended September 30, 2021
Thousands and thousands HG World BAM Eliminations Complete
Direct written premiums $ - $ 34.5 $ - $ 34.5
Assumed written premiums 33.4 4.5 (33.4) 4.5
Gross written premiums 33.4 39.0 (33.4) 39.0
Ceded written premiums - (33.4) 33.4 -
Web written premiums $ 33.4 $ 5.6 $ - $ 39.0
Earned insurance coverage premiums $ 16.1 $ 3.5 $ - $ 19.6
Web funding revenue 5.4 7.8 - 13.2
Web funding revenue - BAM Surplus Notes 9.1 - (9.1) -
Web realized and unrealized funding losses (9.5) (6.1) - (15.6)
Different revenues .3 .6 - .9
Complete revenues 21.4 5.8 (9.1) 18.1
Insurance coverage acquisition bills 4.3 2.2 - 6.5
Normal and administrative bills 1.3 41.4 - 42.7
Curiosity expense - BAM Surplus Notes - 9.1 (9.1) -
Complete bills 5.6 52.7 (9.1) 49.2
Pre-tax revenue (loss) $ 15.8 $ (46.9) $ - $ (31.1)
Supplemental info:
MSC collected (1) $ - 44.8 $ - $ 44.8
(1) MSC are recorded straight within the fairness of BAM, which is recorded as a non-controlling curiosity in
HG World/BAM Outcomes-Three Months EndedSeptember 30, 2022 versus Three Months EndedSeptember 30, 2021 BAM is required to organize its monetary statements on a statutory accounting foundation for the NYDFS and doesn't report stand-alone GAAP monetary outcomes. BAM fees an insurance coverage premium on every municipal bond insurance coverage coverage it writes. A portion of the premium is MSC and the rest is a danger premium. Within the occasion of a municipal bond refunding, a portion of the MSC from unique issuance may be reutilized, in impact serving as a credit score towards the overall insurance coverage premium on the refunding of the municipal bond. Gross written premiums and MSC collected within the HG World/BAM section totaled$46 million within the third quarter of 2022 in comparison with$28 million within the third quarter of 2021. BAM insured$4.1 billion of municipal bonds,$3.3 billion of which have been within the major market, within the third quarter of 2022 in comparison with$4.0 billion of municipal bonds,$3.8 billion of which have been within the major market, in the third quarter of 2021. Within the third quarter of 2022, BAM accomplished an assumed reinsurance transaction to reinsure municipal bonds with a par worth of$43 million . Insured penetration within the major market decreased to six.2% within the third quarter of 2022 in comparison with 8.6% within the third quarter of 2021, primarily because of a lower in massive transactions insured within the third quarter of 2022 in contrast to the third quarter of 2021. Complete pricing, which displays each gross written premiums and MSC, elevated to 110 foundation factors within the third quarter of 2022 in comparison with 69 foundation factors within the third quarter of 2021. The rise in whole pricing was pushed primarily by elevated secondary market exercise, larger pricing within the major market and an assumed reinsurance transaction within the third quarter of 2022. Pricing within the major market elevated to 79 foundation factors within the third quarter of 2022 in comparison with 59 foundation factors within the third quarter of 2021. Pricing within the mixed secondary and assumed reinsurance markets, which is extra transaction particular than pricing within the major market, decreased to 229 foundation factors in the third quarter of 2022 in comparison with 309 foundation factors within the third quarter of 2021. 54 -------------------------------------------------------------------------------- The next desk presents the gross par worth of major and secondary market insurance policies issued, the gross par worth of assumed reinsurance, the gross written premiums and MSC collected and whole pricing for the three months endedSeptember 30, 2022 and 2021: Three Months Ended September 30, $ in Thousands and thousands 2022 2021 Gross par worth of major market insurance policies issued$ 3,269.0 $ 3,813.7 Gross par worth of secondary market insurance policies issued 826.5 157.4 Gross par worth of assumed reinsurance 42.5 - Complete gross par worth of market insurance policies issued$ 4,138.0 $ 3,971.1 Gross written premiums$ 19.7 $ 12.8 MSC collected 26.0 14.7 Complete gross written premiums and MSC collected$ 45.7 $ 27.5 Complete pricing 110 bps 69 bps HG World reported pre-tax revenue (loss) of$(12) million within the third quarter of 2022 in comparison with$7 million within the third quarter of 2021. The change in pre-tax revenue (loss) was pushed primarily by$20 million of web unrealized funding losses on the HG World mounted revenue portfolio, as rates of interest elevated within the third quarter of 2022. Leads to the third quarter of 2022 and 2021 each included$3 million of curiosity revenue on the BAM Surplus Notes. BAM is a mutual insurance coverage firm that's owned by its members. BAM's outcomes are consolidated intoWhite Mountains's GAAP monetary statements and attributed to non-controlling pursuits.White Mountains reported$32 million of GAAP pre-tax loss from BAM within the third quarter of 2022 in comparison with$15 million in the third quarter of 2021. The change in pre-tax loss was pushed primarily by$19 million of web unrealized funding losses on the BAM mounted revenue portfolio, as rates of interest elevated within the third quarter of 2022. Leads to the third quarter of 2022 included$3 million of curiosity expense on the BAM Surplus Notes and$15 million of normal and administrative bills, in contrast to$3 million of curiosity expense and$12 million of normal and administrative bills within the third quarter of 2021. HG World/BAM Outcomes-9 Months EndedSeptember 30, 2022 versus 9 Months EndedSeptember 30, 2021 Gross written premiums and MSC collected within the HG World/BAM section totaled$109 million within the first 9 months of 2022 in comparison with$84 million within the first 9 months of 2021. BAM insured$13.5 billion of municipal bonds,$10.1 billion of which have been within the major market, within the first 9 months of 2022 in comparison with$12.6 billion of municipal bonds,$11.2 billion of which have been within the major market, within the first 9 months of 2021. Within the first 9 months of 2022 and 2021, BAM accomplished assumed reinsurance transactions to reinsure municipal bonds with par values of$43 million and$806 million . Complete pricing, which displays each gross written premiums and MSC, elevated to 81 foundation factors within the first 9 months of 2022 in comparison with 66 foundation factors in the primary 9 months of 2021. The rise in whole pricing was pushed primarily by elevated secondary market exercise within the first 9 months of 2022 in comparison with the primary 9 months of 2021. Pricing within the major market elevated to 57 foundation factors within the first 9 months of 2022, in comparison with 56 foundation factors within the first 9 months of 2021. Pricing within the secondary and assumed reinsurance markets, which is extra transaction particular than pricing in the first market, elevated to 152 foundation factors within the first 9 months of 2022, in comparison with 150 foundation factors within the first 9 months of 2021. 55 -------------------------------------------------------------------------------- The next desk presents the gross par worth of major and secondary market insurance policies issued, the gross par worth of assumed reinsurance, the gross written premiums and MSC collected and whole pricing for the 9 months endedSeptember 30, 2022 and 2021: 9 Months Ended September 30, $ in Thousands and thousands 2022 2021 Gross par worth of major market insurance policies issued$ 10,147.8 $ 11,171.2 Gross par worth of secondary market insurance policies issued 3,269.4 646.6 Gross par worth of assumed reinsurance 42.5 805.5 Complete gross par worth of market insurance policies issued$ 13,459.7 $ 12,623.3 Gross written premiums 46.2 39.0 MSC collected 62.3 44.8 Complete gross written premiums and MSC collected $ 108.5$ 83.8 Complete pricing 81 bps 66 bps HG World reported pre-tax revenue (loss) of$(35) million within the first 9 months of 2022 in comparison with$16 million within the first 9 months of 2021. The change in pre-tax revenue (loss) was pushed primarily by$58 million of web unrealized funding losses on the HG World mounted revenue portfolio, as rates of interest elevated within the first 9 months of 2022. Leads to the primary 9 months of 2022 and 2021 each included$9 million of curiosity revenue on the BAM Surplus Notes. OnApril 29, 2022 , HG World obtained the proceeds of its new$150 million , 10-year time period mortgage credit score facility. In flip, onCould 2, 2022 , HG World paid a$120 million money dividend to shareholders, of which$116 million was paid toWhite Mountains .White Mountains reported$98 million of GAAP pre-tax loss from BAM within the first 9 months of 2022 in comparison with$47 million within the first 9 months of 2021. The rise in pre-tax loss was pushed primarily by$56 million of web unrealized funding losses on the BAM mounted revenue portfolio, as curiosity charges elevated within the first 9 months of 2022. Leads to the primary 9 months of 2022 included$9 million of curiosity expense on the BAM Surplus Notes and$47 million of normal and administrative bills, in comparison with$9 million of curiosity expense and$41 million of normal and administrative bills in the primary 9 months of 2021. Claims Paying Assets BAM's claims paying assets symbolize the capital and different monetary assets BAM has out there to pay claims and, as such, is a key indication of BAM's monetary energy. BAM's claims paying assets have been$1,260 million as ofSeptember 30, 2022 in comparison with$1,192 million as ofDecember 31, 2021 and$1,181 million as ofSeptember 30, 2021 . The rise in claims paying assets as ofSeptember 30, 2022 in comparison withDecember 31, 2021 was pushed primarily by will increase within the statutory worth of the collateral trusts ensuing from deposits of ceded premiums and a rise in BAM's certified statutory capital ensuing from enterprise operations for the 9 months endedSeptember 30, 2022 . The next desk presents BAM's whole claims paying assets as ofSeptember 30, 2022 ,December 31, 2021 andSeptember 30, 2021 : September 30, September 30, Thousands and thousands 2022 December 31, 2021 2021 Policyholders' surplus $ 316.9 $ 298.1 $ 322.8 Contingency reserve 113.9 101.8 102.7 Certified statutory capital 430.8 399.9 425.5 Web unearned premiums 53.3 49.5 48.3
Current worth of the long run installment
premiums and MSC 13.3 13.8 13.9
HG Re Collateral trusts at
statutory worth 512.7 478.9 442.8
Fidus Re Collateral belief at
statutory worth 250.0 250.0 250.0
Claims paying assets $ 1,260.1 $ 1,192.1 $ 1,180.5
56
————————————————– ——————————
© Edgar On-line, supply