HAMILTON, Bermuda, Aug. 2 /PRNewswire-FirstCall/ -- White Mountains
Insurance Group, Ltd. ended the second quarter with a fully diluted
tangible book value per share of $422, an increase of 2.2% for the
quarter, 4.9% for the year to date, and 21.0% for the past twelve
months, including dividends. Ray Barrette, Chairman and CEO, said
"Once again, our results for the quarter were OK. Our investment
team continues to deliver superior results. On the underwriting
front, White Mountains Re had a good quarter with a 90% combined
ratio. Esurance had a 113% combined ratio reflecting some reserve
increases but grew premiums by 42% at target loss ratios. OneBeacon
grew its ABVPS including dividends by 3.7% driven by a 97% combined
ratio and superior investment returns. We remain focused on
delivering mid-teens or higher tangible book value per share growth
for the full year." Adjusted comprehensive net income for the
second quarter of 2007 was $90 million, compared to $50 million in
the second quarter of last year. Adjusted comprehensive net income
for the first six months of 2007 was $193 million, up from $166
million in the first six months of last year. 2006 results were
negatively impacted by the adverse developments on KRW reserves at
White Mountains Re. Net income for the second quarter was $103
million, compared to $116 million. Net income for the first six
months of 2007 was $195 million, down from $212 million. OneBeacon
OneBeacon's pre-tax income for the second quarter of 2007 was $94
million, compared to $92 million, while the GAAP combined ratio was
97%, compared with 94%. For the first six months of 2007, pre-tax
income was $180 million, compared to $140 million, while the GAAP
combined ratio was 97%, compared with 96%. Mike Miller, CEO of
OneBeacon, said "Specialty and Commercial Lines had strong results
for the quarter while Personal Lines, especially AutoOne, continued
to be challenged. We continue to invest in specialized teams of
people, having recently bolstered our Commercial Lines presence in
the Midwest and Mountain States regions. For the balance of 2007,
we will remain focused on maintaining our underwriting discipline,
taking appropriate steps to manage our expenses, and continuing to
look for new specialized opportunities." Net written premiums were
$485 million for the second quarter and $925 million for the first
six months, a decrease of 6% and 7% from the comparable periods of
2006. Excluding the Agri business that was sold in September 2006,
net written premiums decreased 2% from the comparable periods of
2006. Strong growth in OneBeacon's Specialty Lines almost offset
lower Personal Lines premiums for both periods. White Mountains Re
White Mountains Re's pre-tax income for the second quarter of 2007
was $85 million, compared to a loss of $63 million, while the GAAP
combined ratio was 90%, compared to 141%. For the first six months
of 2007, pre-tax income was $143 million, compared to $22 million,
while the GAAP combined ratio was 95%, compared to 116%. 2006
results were negatively impacted by the adverse developments on KRW
reserves. The first six months of 2007 includes $60 million of
pre-tax catastrophe losses, net of reinstatements and reinsurance,
most of which relates to first quarter European windstorms Kyrill
and Hanno. Results for the second quarter and the first six months
of 2006 included $50 million and $86 million, respectively, in
pre-tax catastrophe losses, net of reinstatements and reinsurance,
from KRW, as well as $137 million of pre-tax losses related to the
reimbursement of Olympus Re. Allan Waters, CEO of White Mountains
Re, said, "Our underwriting results indicate that our core business
remains attractive. However, we continue to see softening across
most of our lines. Our principal challenge is to maintain
discipline as market conditions change. Our management initiatives
and capital structuring activities progressed at pace in the
quarter, and our efforts to reduce our catastrophe exposures since
KRW have improved our financial strength." Net written premiums
were down 17% and 11% for the second quarter and first six months
from the comparable periods of 2006. These declines reflects lower
property and casualty volume, mainly as a result of changing
pricing, terms and conditions which no longer meet White Mountains
Re's underwriting guidelines, and increased ceding company
retentions. In May 2007, White Mountains Re issued $250 million
non-cumulative perpetual preference shares with a $1,000 per share
liquidation preference. Net proceeds of $246 million will be used
to further capitalize White Mountains Re's reinsurance
subsidiaries, including expansion of the Bermuda platform. Esurance
Esurance's pre-tax loss for the second quarter of 2007 was $13
million, compared to pre-tax income of $2 million, while the GAAP
combined ratio was 113%, compared to 106%. For the first six months
of 2007, Esurance's pre-tax loss was $21 million, compared to $2
million, while the GAAP combined ratio was 112%, compared to 108%.
The increases in the loss and combined ratios for both periods were
primarily due to reserve increases for bodily injury claims and
lower prices. The expense ratio for the quarter and for the first
six months was 35%, compared to 35% and 36% in the comparable
periods of 2006. Gary Tolman, CEO of Esurance, stated, "In the
second quarter, Esurance faced an increasingly challenging
environment. Competition for new business increased as many of our
competitors, along with Esurance, have reduced rates and continue
to spend heavily on advertising. While our rate of growth remains
strong, it will not be as strong as previous years. Additionally,
we increased our reserves by $6 million during the quarter,
primarily for bodily injury claims for prior accident years.
Overall, we remain very excited about our position in the market
and our performance. The current accident year loss results look
good, and we have grown our policyholder base by more than 50% in
the last 12 months." Net written premiums were $186 million for the
second quarter and $393 million for the first six months, an
increase of 42% and 45% from the comparable periods of 2006. Net
written premiums for the last 12 months were $718 million. At June
30, 2007, Esurance had 457,000 policies in force. With the addition
of Alabama, Kentucky, and Louisiana in the second quarter, Esurance
writes business in 28 states, comprising 85% of total written
premiums for the personal automobile insurance industry in the
United States. Other Operations White Mountains' Other Operations
segment's pre-tax income for the second quarter of 2007 was $10
million, compared to $41 million. For the first six months of 2007,
pre-tax income was $6 million, compared to $29 million. The
decrease in pre-tax income for both periods is primarily due to the
realization in the second quarter of 2006 of a $21 million gain
from the redemption of a private equity investment, offset somewhat
by higher investment income in 2007. Investment Activities The GAAP
total return on invested assets for the second quarter and the
first six months of 2007 was 1.6% and 3.5% compared to 1.6% and
2.8% in the comparable periods of 2006. Net investment income was
$127 million in the second quarter and $245 million in the first
six months, up from $104 million and $203 million. Mark Dorcus,
President of White Mountains Advisors, said "Our absolute returns
in 2007 have been solid, while our performance relative to industry
benchmarks has been outstanding. The bond portfolio performed
particularly well versus its benchmarks in the second quarter. Our
short duration, avoidance of the sub-prime mortgage mess, and
superior security selection provided positive bond returns in a
rising interest rate and escalating risk premium environment."
Additional Information On July 17, 2006, in connection with the
initial public offering of OneBeacon Insurance Group, Ltd.
("OBIG"), White Mountains undertook an internal reorganization and
formed OBIG for the purpose of holding certain of its property and
casualty insurance businesses. As a result of the reorganization,
certain of White Mountains' businesses that had been historically
reported as part of its Other Operations segment are now owned by
OBIG, and accordingly are now included within the OneBeacon
segment. In addition, certain other businesses of White Mountains
that are no longer owned by OBIG are now presented as part of the
Other Operations segment. Prior period segment information has been
restated to conform to the current presentation. As a result of the
sale of OneBeacon shares, there is a significant minority interest
in OneBeacon. Accordingly, prior periods in the Company's financial
statements have been reclassified to show the Company's minority
interest in certain limited partnership investments. White
Mountains is a Bermuda-domiciled financial services holding company
traded on the New York Stock Exchange and the Bermuda Stock
Exchange under the symbol WTM. Additional financial information and
other items of interest are available at the Company's website
located at http://www.whitemountains.com/. The Company expects to
file its Form 10-Q with the Securities and Exchange Commission on
or before August 9, 2007 and urges shareholders to refer to that
document for more complete information concerning White Mountains'
financial results. Regulation G This earnings release includes
three non-GAAP financial measures that have been reconciled to
their most comparable GAAP financial measures. White Mountains
believes these measures to be more relevant than comparable GAAP
measures in evaluating White Mountains' financial performance.
Adjusted comprehensive net income is a non-GAAP financial measure
that excludes the change in net unrealized gains and losses from
Symetra's fixed maturity portfolio from comprehensive net income.
The reconciliation of adjusted comprehensive net income to
comprehensive net income is included on page 8. Fully diluted
tangible book value per share is a non-GAAP measure which is
derived by expanding the GAAP book value per share calculation to
include the effects of assumed conversion of all in-the-money
convertible securities and to exclude any unamortized goodwill and
net unrealized gains/(losses) from Symetra's fixed maturity
portfolio. In addition, for periods subsequent to December 31,
2006, the number of common shares outstanding used in the
calculation of fully diluted tangible book value per share are
adjusted to exclude unearned shares of restricted stock
representative of the proportion of unamortized compensation cost
at the date of the calculation to the value of the restricted stock
on the date of issuance. This adjustment was not made to fully
diluted tangible book value per share for periods prior to December
31, 2006 as the impact was not significant. The reconciliation of
fully diluted tangible book value per share to book value per share
is included on page 7. Adjusted book value per common share at
OneBeacon is a non-GAAP financial measure which is derived by
excluding the impact of economically defeasing OneBeacon's
mandatorily redeemable preferred stock from book value per common
share, the most closely comparable GAAP measure. Management
believes that adjusted book value per common share is a useful
supplement to understanding OneBeacon's earnings and profitability.
A reconciliation of OneBeacon's book value per common share to
OneBeacon's adjusted book value per common share follows:
(millions, except per share amounts) June 30, March 31, 2007 2007
OneBeacon book value per share numerators: OneBeacon common
shareholders' equity $1,861.3 $1,825.7 Remaining accretion of
subsidiary preferred stock to face value (40.8) (49.5) Adjusted
OneBeacon common shareholders' equity 1,820.5 1,776.2 OneBeacon
common shares outstanding 100.0 100.0 OneBeacon book value per
common share $18.61 $18.26 OneBeacon adjusted book value per common
share $18.21 $17.76 Growth in adjusted book value per common share
in the quarter (1) 3.7% (1)Includes $.21 dividend per common share
paid in June 2007. Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995 This earnings release may
contain "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical facts, included or referenced in this release which
address activities, events or developments which we expect or
anticipate will or may occur in the future are forward-looking
statements. The words "will," "believe," "intend," "expect,"
"anticipate," "project," "estimate," "predict" and similar
expressions are also intended to identify forward-looking
statements. These forward-looking statements include, among others,
statements with respect to White Mountains': -- growth in book
value per share or return on equity; -- business strategy; --
financial and operating targets or plans; -- incurred losses and
the adequacy of its loss and loss adjustment expense reserves and
related reinsurance; -- projections of revenues, income (or loss),
earnings (or loss) per share, dividends, market share or other
financial forecasts; -- expansion and growth of our business and
operations; and -- future capital expenditures. These statements
are based on certain assumptions and analyses made by White
Mountains in light of its experience and perception of historical
trends, current conditions and expected future developments, as
well as other factors believed to be appropriate in the
circumstances. However, whether actual results and developments
will conform to our expectations and predictions is subject to a
number of risks and uncertainties that could cause actual results
to differ materially from expectations, including: -- the risks
associated with Item 1A of White Mountains' 2006 Annual Report on
Form 10-K; -- claims arising from catastrophic events, such as
hurricanes, earthquakes, floods or terrorist attacks; -- the
continued availability of capital and financing; -- general
economic, market or business conditions; -- business opportunities
(or lack thereof) that may be presented to it and pursued; --
competitive forces, including the conduct of other property and
casualty insurers and reinsurers; -- changes in domestic or foreign
laws or regulations, or their interpretation, applicable to White
Mountains, its competitors or its clients; -- an economic downturn
or other economic conditions adversely affecting its financial
position; -- recorded loss reserves subsequently proving to have
been inadequate; -- other factors, most of which are beyond White
Mountains' control. Consequently, all of the forward-looking
statements made in this earnings release are qualified by these
cautionary statements, and there can be no assurance that the
actual results or developments anticipated by White Mountains will
be realized or, even if substantially realized, that they will have
the expected consequences to, or effects on, White Mountains or its
business or operations. White Mountains assumes no obligation to
publicly update any such forward-looking statements, whether as a
result of new information, future events or otherwise. WHITE
MOUNTAINS INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED BALANCE
SHEETS (millions, except share amounts) (Unaudited) June 30,
December 31, June 30, 2007 2006 2006 Assets Fixed maturity
investments $7,524.9 $7,475.3 $6,944.1 Common equity securities
1,402.7 1,212.6 1,147.0 Short-term investments 1,152.9 1,344.9
873.5 Other investments 558.5 524.8 469.6 Convertible fixed
maturity investments 544.7 436.2 359.5 Investments held in trust
312.0 338.9 - Total investments 11,495.7 11,332.7 9,793.7
Reinsurance recoverable on unpaid losses 3,693.2 4,015.7 4,660.9
Reinsurance recoverable on paid losses 57.7 159.4 116.0 Funds held
by ceding companies 366.7 452.8 554.7 Insurance and reinsurance
premiums receivable 1,007.3 913.6 1,062.4 Securities lending
collateral 554.0 649.8 453.1 Investments in unconsolidated
affiliates 381.0 335.5 412.0 Deferred acquisition costs 351.6 320.3
324.9 Ceded unearned premiums 130.9 87.9 167.1 Accounts receivable
on unsettled investment sales 24.3 8.5 23.6 Other assets 1,121.9
1,167.5 1,159.6 Total assets $19,184.3 $19,443.7 $18,728.0
Liabilities Loss and loss adjustment expense reserves $8,364.7
$8,777.2 $9,775.3 Unearned insurance and reinsurance premiums
1,735.7 1,584.9 1,730.7 Debt 1,183.6 1,106.7 838.2 Securities
lending payable 554.0 649.8 453.1 Preferred stock subject to
mandatory redemption 259.2 262.3 247.3 Ceded reinsurance payable
125.4 138.4 166.9 Funds held under reinsurance treaties 110.4 141.6
130.1 Reserves for structured contracts 87.3 147.1 214.2 Accounts
payable on unsettled investment purchases 32.0 66.8 63.7 Other
liabilities 1,269.1 1,510.4 1,143.4 Total liabilities 13,721.4
14,385.2 14,762.9 Minority interest - OneBeacon Insurance Group,
Ltd. 526.0 490.7 - Minority interest - White Mountains Re Group,
Ltd. Preference Shares 250.0 - - Minority interest - consolidated
limited partnerships 111.6 112.5 100.8 Total minority interest
887.6 603.2 100.8 Common Shareholders' Equity Common shares and
paid-in surplus 1,731.9 1,727.5 1,726.4 Retained earnings 2,647.5
2,496.0 2,077.7 Accumulated other comprehensive income (loss),
after tax: Net unrealized gains on investments 182.5 198.1 122.1
Equity in net unrealized losses from Symetra's fixed maturity
portfolio (38.5) (4.1) (69.0) Net unrealized foreign currency
translation gains and other 51.9 37.8 7.1 Total common
shareholders' equity 4,575.3 4,455.3 3,864.3 Total liabilities,
minority interest and common shareholders' equity $19,184.3
$19,443.7 $18,728.0 Common shares outstanding (000's) 10,843 10,783
10,780 Common and equivalent shares outstanding (000's) 10,806
10,812 10,814 WHITE MOUNTAINS INSURANCE GROUP, LTD. FULLY DILUTED
TANGIBLE BOOK VALUE PER COMMON AND EQUIVALENT SHARE (Unaudited)
June March December June 30, 31, 31, 30 2007 2007 2006 2006 Book
value per share numerators (in millions): Common shareholders'
equity $4,575.3 $4,542.9 $4,455.3 $3,864.3 Benefits to be received
from share obligations under employee benefit plans 2.3 4.1 4.7 5.1
Remaining adjustment of preferred stock subj. to mandatory
redemption to face value (29.3)(1) (35.5)(1) (41.8)(1) (72.7) Book
value per share numerator 4,548.3 4,511.5 4,418.2 3,796.7 Equity in
net unrealized (gains) losses from Symetra's fixed maturity
portfolio 38.5 (1.8) 4.1 69.0 Goodwill (28.4) (29.2) (32.5) (25.2)
Fully diluted tangible book value per common and equivalent share
numerator $4,558.4 $4,480.5 $4,389.8 $3,840.5 Book value per share
denominators (in thousands of shares): Common Shares outstanding
10,842.6 10,833.8 10,782.8 10,780.1 Unearned restricted shares
(50.6) (52.7) - - Share obligations under employee benefits plans
14.4 25.3 29.5 33.4 Fully diluted tangible book value per common
and equivalent share denominator 10,806.4 10,806.4 10,812.3
10,813.5 Book value per common and equivalent share $420.90 $417.47
$408.62 $351.11 Fully diluted tangible book value per common and
equivalent share $421.83 $414.61 $406.00 $355.16 (1) Remaining
adjustment of subsidiary preferred stock to face value, which is
representative of White Mountains' ownership interest in OneBeacon
Insurance Group, Ltd. of 71.7% as of June 30, 2007, 71.8% as of
March 31, 2007 and 72.4% as of December 31, 2006. WHITE MOUNTAINS
INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME (millions, except per share amounts)
(Unaudited) Three Months Ended Six Months Ended June 30, June 30,
2007 2006 2007 2006 Revenues: Earned insurance and reinsurance
premiums $960.7 $953.5 $1,898.7 $1,854.5 Net investment income
126.7 104.4 244.7 202.9 Net realized investment gains 89.1 106.5
163.0 135.0 Other revenue 34.1 36.5 70.3 66.3 Total revenues
1,210.6 1,200.9 2,376.7 2,258.7 Expenses: Loss and loss adjustment
expenses 592.1 763.8 1,205.4 1,327.8 Insurance and reinsurance
acquisition expenses 203.6 187.7 396.2 373.3 Other underwriting
expenses 136.2 122.8 273.9 238.7 General and administrative
expenses 62.4 22.3 115.3 66.9 Accretion of fair value adjustment to
loss and loss adjustment expense reserves 5.5 6.4 10.6 11.6
Interest expense on debt 18.3 11.9 35.1 23.6 Interest expense -
dividends on preferred stock subject to mandatory redemption 7.5
7.5 15.1 15.1 Interest expense - accretion on preferred stock
subject to mandatory redemption 8.8 6.9 17.0 13.3 Total expenses
1,034.4 1,129.3 2,068.6 2,070.3 Pre-tax income 176.2 71.6 308.1
188.4 Income tax benefit (provision) (55.8) 29.3 (87.0) 2.4 Income
before equity in earnings of unconsolidated affiliates and minority
interest 120.4 100.9 221.1 190.8 Equity in earnings of
unconsolidated affiliates 8.6 14.8 19.1 23.8 Minority interest
(26.4) .1 (45.4) (2.8) Net income 102.6 115.8 194.8 211.8 Change in
net unrealized gains on investments (70.7) (114.5) (50.0) (171.6)
Change in foreign currency translation and other 17.9 11.9 14.1
32.9 Comprehensive net income 49.8 13.2 158.9 73.1 Change in net
unrealized gains and losses from Symetra's fixed maturity portfolio
40.3 36.4 34.4 93.2 Adjusted comprehensive net income $90.1 $49.6
$193.3 $166.3 Basic earnings per share $9.51 $10.75 $18.07 $19.67
Diluted earnings per share $9.49 $10.72 $18.03 $19.61 Dividends
declared and paid per common share $2.00 $2.00 $4.00 $4.00 WHITE
MOUNTAINS INSURANCE GROUP, LTD. YTD SEGMENT INCOME STATEMENTS (in
millions) (Unaudited) For the Six Months Ended June 30, 2007
OneBeacon WMRe Esurance Other Total Revenues: Earned insurance and
reinsurance premiums $933.9 $605.1 $359.7 $- $1,898.7 Net
investment income 105.2 101.1 13.6 24.8 244.7 Net realized
investment gains 112.0 42.1 2.5 6.4 163.0 Other revenue 5.5 (5.5)
6.1 64.2 70.3 Total revenues 1,156.6 742.8 381.9 95.4 2,376.7
Expenses: Loss and loss adjustment expenses 571.3 367.4 277.4
(10.7) 1,205.4 Insurance and reinsurance acquisition expenses 156.6
144.6 95.0 - 396.2 Other underwriting expenses 180.5 61.2 30.6 1.6
273.9 General and administrative expenses 5.1 16.2 .2 93.8 115.3
Accretion of fair value adjustment to loss and lae reserves 8.0 2.6
- - 10.6 Interest expense on debt 22.7 8.0 - 4.4 35.1 Interest
expense - dividends and accretion on preferred stock 32.1 - - -
32.1 Total expenses 976.3 600.0 403.2 89.1 2,068.6 Pre-tax
income(loss) $180.3 $142.8 $(21.3) $6.3 $308.1 For the Six Months
Ended June 30, 2006 OneBeacon WMRe Esurance Other Total Revenues:
Earned insurance and reinsurance premiums $965.5 $658.0 $231.0 $-
$1,854.5 Net investment income 96.0 84.5 8.4 14.0 202.9 Net
realized investment gains 66.0 41.2 3.5 24.3 135.0 Other revenue
11.8 6.9 3.9 43.7 66.3 Total revenues 1,139.3 790.6 246.8 82.0
2,258.7 Expenses: Loss and loss adjustment expenses 599.3 564.2
165.1 (.8) 1,327.8 Insurance and reinsurance acquisition expenses
160.8 151.2 61.3 - 373.3 Other underwriting expenses 169.9 45.5
22.4 .9 238.7 General and administrative expenses 6.7 7.1 - 53.1
66.9 Accretion of fair value adjustment to loss and lae reserves
11.5 .1 - - 11.6 Interest expense on debt 22.8 .8 - - 23.6 Interest
expense - dividends and accretion on preferred stock 28.4 - - -
28.4 Total expenses 999.4 768.9 248.8 53.2 2,070.3 Pre-tax income
(loss) $139.9 $21.7 $(2.0) $28.8 $188.4 WHITE MOUNTAINS INSURANCE
GROUP, LTD. QTD SEGMENT INCOME STATEMENTS (in millions) (Unaudited)
For the Three Months Ended June 30, 2007 OneBeacon WMRe Esurance
Other Total Revenues: Earned insurance and reinsurance premiums
$465.0 $306.8 $188.9 $- $960.7 Net investment income 54.6 53.0 7.4
11.7 126.7 Net realized investment gains 57.1 22.2 1.5 8.3 89.1
Other revenue 2.4 (1.9) 3.1 30.5 34.1 Total revenues 579.1 380.1
200.9 50.5 1,210.6 Expenses: Loss and loss adjustment expenses
283.1 172.8 147.1 (10.9) 592.1 Insurance and reinsurance
acquisition expenses 78.3 75.0 50.3 - 203.6 Other underwriting
expenses 89.6 29.9 15.9 .8 136.2 General and administrative
expenses 2.7 9.6 .1 50.0 62.4 Accretion of fair value adjustment to
loss and lae reserves 4.0 1.5 - - 5.5 Interest expense on debt 11.3
6.8 - .2 18.3 Interest expense - dividends and accretion on
preferred stock 16.3 - - - 16.3 Total expenses 485.3 295.6 213.4
40.1 1,034.4 Pre-tax income (loss) $93.8 $84.5 $(12.5) $10.4 $176.2
For the Three Months Ended June 30, 2006 OneBeacon WMRe Esurance
Other Total Revenues: Earned insurance and reinsurance premiums
$485.3 $342.4 $125.8 $- $953.5 Net investment income 50.9 43.4 4.8
5.3 104.4 Net realized investment gains 38.9 38.7 2.6 26.3 106.5
Other revenue 6.3 2.5 1.8 25.9 36.5 Total revenues 581.4 427.0
135.0 57.5 1,200.9 Expenses: Loss and loss adjustment expenses
295.6 377.6 89.9 .7 763.8 Insurance and reinsurance acquisition
expenses 74.5 80.9 32.3 - 187.7 Other underwriting expenses 86.0
25.1 11.3 .4 122.8 General and administrative expenses 2.3 4.9 -
15.1 22.3 Accretion of fair value adjustment to loss and lae
reserves 5.7 .7 - - 6.4 Interest expense on debt 11.4 .4 - .1 11.9
Interest expense - dividends and accretion on preferred stock 14.4
- - - 14.4 Total expenses 489.9 489.6 133.5 16.3 1,129.3 Pre-tax
income (loss)$91.5 $(62.6) $1.5 $41.2 $71.6 WHITE MOUNTAINS
INSURANCE GROUP, LTD. SUMMARY OF GAAP RATIOS AND PREMIUMS
(Unaudited) Six Months Ended June 30, 2007 OneBeacon WMRe Esurance
Specialty Personal Commercial Total (1) (2) GAAP Ratios Loss and
LAE 57% 64% 56% 61% 61% 77% Expense 32% 37% 37% 36% 34% 35% Total
Combined 89% 101% 93% 97% 95% 112% Dollars in millions Net written
premiums $207.6 $353.2 $364.2 $925.1 $683.0 $393.4 Earned premiums
$215.2 $370.3 $348.4 $933.9 $605.1 $359.7 Six Months Ended June 30,
2006 OneBeacon WMRe Esurance Specialty Personal Commercial Total
(1) (2) GAAP Ratios Loss and LAE 56% 64% 59% 62% 86% 72% Expense
31% 31% 38% 34% 30% 36% Total Combined 87% 95% 97% 96% 116% 108%
Dollars in millions Net written premiums $207.6 $419.8 $362.5
$989.9 $767.2 $271.6 Earned premiums $210.0 $419.2 $336.3 $965.4
$658.0 $231.0 Three Months Ended June 30, 2007 OneBeacon WMRe
Esurance Specialty Personal Commercial Total (1) (2) GAAP Ratios
Loss and LAE 57% 63% 57% 61% 56% 78% Expense 32% 36% 37% 36% 34%
35% Total Combined 89% 99% 94% 97% 90% 113% Dollars in millions Net
written premiums $110.8 $180.4 $193.6 $484.8 $279.4 $185.7 Earned
premiums $108.2 $180.5 $176.4 $465.0 $306.8 $188.9 Three Months
Ended June 30, 2006 OneBeacon WMRe Esurance Specialty Personal
Commercial Total (1) (2) GAAP Ratios Loss and LAE 58% 61% 58% 61%
110% 71% Expense 31% 29% 38% 33% 31% 35% Total Combined 89% 90% 96%
94% 141% 106% Dollars in millions Net written premiums $105.6
$217.4 $195.7 $515.4 $338.5 $130.7 Earned premiums $108.0 $209.7
$171.0 $485.3 $342.4 $125.8 Contact: David Foy (203)458-5850
DATASOURCE: White Mountains Insurance Group, Ltd. CONTACT: David
Foy, +1-203-458-5850 for White Mountains Insurance Group, Ltd. Web
site: http://www.whitemountains.com/
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