WHITE MOUNTAINS INSURANCE GROUP LTD Dialogue and evaluation of administration’s monetary situation and outcomes of operations. (type 10-Q)

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 evaluating White Mountains's monetary efficiency and
situation.

RESULTS OF OPERATIONS AT THE END OF THREE AND NINE MONTHS SEPTEMBER 30, 2022 and 2021

Overview

White Mountains reported ebook worth per share of $1,439 and adjusted ebook worth
per share of $1,471 as of September 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 at August 1, 2022). As well as, the expansion in White 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 of September 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 from White Mountains's funding
in MediaAlpha, ensuing from decreases within the MediaAlpha share worth.
On August 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% of White Mountains's September 30, 2022 ebook worth per share
and 94% of White Mountains's September 30, 2022 adjusted ebook worth per share.
As of September 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 of September 30, 2022 in comparison with $1,192 million as of December 31,
2021 and $1,181 million as of September 30, 2021.
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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 to White 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 of September 30, 2022, the market worth of White Mountains's funding in
MediaAlpha was $148 million, which was down from $167 million as of June 30,
2022. As of September 30, 2022, the closing worth was $8.75 per share, which
decreased from $9.85 as of June 30, 2022. Based mostly on White Mountains's possession
of 16.9 million shares of MediaAlpha as of September 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 in White 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 from White 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 from White 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 from White 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
from White 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.


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Adjusted ebook worth per share

The next desk presents of the white mountains ebook worth per share and reconciles it to adjusted ebook worth per share, a non-GAAP measure from
September 30, 2022, June 30, 2022, December 31, 2021Y September 30, 2021. See NON-GAAP FINANCIAL MEASURES on web page 74.


                                                  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 $3,548.1 $3,521.7


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 $3,576.0 $3,542.4
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 $1,175.73 $1,162.44
Adjusted ebook worth per share

                     $  1,470.84          $ 

1,152.12 $1,190.39 $1,175.86
Dividends paid per share thus far

             $      1.00          $    

1.00 $1.00 $1.00

(1) Quantity displays of the white mountains 96.9% possession of most popular shares in HG World.

Goodwill and Different Intangible Property


The next desk presents a abstract of goodwill and different intangible property
which might be included in White Mountains's ebook worth as of September 30, 2022, June
30, 2022, December 31, 2021, and September 30, 2021:

                                                     September 30,          June 30,               December 31,        September 30,
Thousands and thousands                                                  2022                2022                     2021                 2021
Goodwill:
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                350.2
Goodwill and different intangible property
attributed to
   non-controlling pursuits                              (103.1)            (103.4)                    (91.8)               (92.0)
Goodwill and different intangible property included
in
  White 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 of
September 30, 2022 and June 30, 2022.
(2) See Notice 4 - "Goodwill and Different Intangible Property" for particulars of goodwill
and different intangible property.
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Abstract of Consolidated Outcomes

The next desk presents of the white mountains consolidated monetary outcomes for the three and 9 months ended September 30, 2022 and 2021:


                                                       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 to White
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)






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I. Abstract of Operations by Section


As of September 30, 2022, White Mountains performed its operations by 4
segments: (1) HG World/BAM, (2) Ark, (3) Kudu and (4) Different Operations. A
dialogue of White 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 for NSM 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 in the 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 in
White 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 ended September 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 of the white mountains stability sheet.

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                                                                           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 of the white mountains stability sheet.



                                                                           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 of the white mountains stability sheet.

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                                                                           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 of the white mountains stability sheet.



HG World/BAM Outcomes-Three Months Ended September 30, 2022 versus Three Months
Ended September 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.
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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 ended
September 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 into White 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 Ended September 30, 2022 versus 9 Months
Ended September 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.
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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 ended
September 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.
On April 29, 2022, HG World obtained the proceeds of its new $150 million,
10-year time period mortgage credit score facility. In flip, on Could 2, 2022, HG World paid a
$120 million money dividend to shareholders, of which $116 million was paid to
White 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 of September 30, 2022
in comparison with $1,192 million as of December 31, 2021 and $1,181 million as of
September 30, 2021. The rise in claims paying assets as of September 30,
2022 in comparison with December 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 ended September 30, 2022.
The next desk presents BAM's whole claims paying assets as of
September 30, 2022, December 31, 2021 and September 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



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