HAMILTON, Bermuda, Nov. 5 /PRNewswire-FirstCall/ -- White Mountains
Insurance Group, Ltd. ended the third quarter with a fully diluted
tangible book value per share of $435, an increase of 3.7% for the
quarter, 8.7% for the first three quarters, and 18.8% for the past
twelve months, including dividends. Ray Barrette, Chairman and CEO,
said, "We had a good quarter. OneBeacon had excellent results,
growing ABVPS by 4.6% with a combined ratio of 84%, helped by some
non-recurring gains. White Mountains Re delivered a nice quarter
with a combined ratio of 94%, reflecting disciplined underwriting
and lower than expected catastrophe claims. On the underwriting
front, the only negative was a $15 million increase in Esurance's
loss reserves following a full review of open liability claim
files. Our investment results were good and our bond portfolio
remains a pillar of strength." Adjusted comprehensive net income
for the third quarter of 2007 was $161 million, compared to $211
million last year. Adjusted comprehensive net income for the first
nine months of 2007 was $354 million, compared to $377 million last
year. Net income for the third quarter was $111 million, compared
to $162 million. Last year's third quarter benefited from $44
million in transaction gains from the sale of Sirius America and
OneBeacon's Agri business versus $11 million from the sale of an
inactive shell insurance company at OneBeacon this year. Net income
for the first nine months of 2007 was $306 million, compared to
$374 million. In addition to the transaction gains, net income for
the first nine months of 2006 reflected $33 million in gains from
the settlements of United States Federal and state income tax
audits. OneBeacon OneBeacon grew its ABVPS by 4.6% in the quarter
and 13.3% for the first nine months. Pre-tax income for the quarter
was $135 million, compared to $107 million, while the GAAP combined
ratio was 84%, compared with 94%. For the first nine months of
2007, pre-tax income was $316 million, compared to $247 million,
while the GAAP combined ratio was 93%, compared with 96%. The 2007
results benefited from a gain on the partial settlement of the
qualified pension liabilities and a premium tax refund in the third
quarter, partially offset by office consolidation costs incurred
primarily in the first quarter. These items had the effect of
increasing OneBeacon's 2007 pretax income by $33 million in the
quarter and $23 million in the first nine months and lowering the
2007 combined ratios by 7 points in the quarter and 2 points in the
first nine months. Mike Miller, CEO of OneBeacon, said "OneBeacon
experienced an excellent quarter by any measure in today's market,
reflecting strong current accident year results, favorable
development on prior accident years, minimal catastrophe losses and
solid investment returns. Our 84% combined ratio for the quarter
reflected good results from all of our businesses. In addition, it
was positively impacted by the gain on the partial settlement of
our pension liabilities and a state premium tax refund. Excluding
these items, our combined ratio would have been 91% compared to 94%
last year. Net written premiums were down less than 1% for the
quarter and 2% through nine months, excluding the 2006 Agri
business. Recently, we reduced our workforce by approximately ten
percent to bring our expenses more in line with our business needs.
We will continue to focus on disciplined underwriting and manage
expenses accordingly." Net written premiums were $512 million for
the third quarter and $1,437 million for the first nine months, a
decrease of 1% and 2%, respectively, from the comparable periods of
2006 excluding the Agri business that was sold in September 2006.
Including Agri, premiums decreased 5% and 6%, respectively, from
the comparable periods of 2006. Strong growth in Specialty Lines
continues to mostly offset lower Personal Lines premiums at
AutoOne. White Mountains Re White Mountains Re's pre-tax income for
the third quarter of 2007 was $74 million, compared to $110
million, while the GAAP combined ratio was 94%, compared to 89%.
For the first nine months of 2007, pre-tax income was $217 million,
compared to $131 million, while the GAAP combined ratio was 94%,
compared to 108%. The results for the first nine months of 2006
were negatively impacted by $223 million related to KRW claims. The
first nine months of 2007 include $82 million of pre-tax
catastrophe losses, net of reinstatements and reinsurance,
including $22 million in the quarter, which are both lower than
plan. Allan Waters, CEO of White Mountains Re, said, "While the
number of large events was fairly high this quarter, insured
damages were limited. Total catastrophe losses for the quarter were
still higher than last year. Our increased combined ratio also
reflects deteriorating pricing across all lines. We are adjusting
our mix and reducing volume in response to the market softening. We
continue to look for ways to add value. During the quarter, we
transferred significant capital to our Bermuda operations to
improve our capital allocation." Net written premiums were $222
million for the third quarter and $905 million for the first nine
months, a decrease of 22% and 14% from the comparable periods of
2006. Esurance Esurance's pre-tax loss for the quarter was $25
million, compared to pre- tax income of $2 million, while the GAAP
combined ratio was 118%, compared to 106%. For the first nine
months, the pre-tax loss was $46 million, compared to pre-tax
income of $0.4 million, while the GAAP combined ratio was 114%,
compared to 107%. The worse results for both periods were due to
higher marketing costs, increased claim severity and increases in
loss reserves for prior years. Gary Tolman, CEO of Esurance, said,
"The third quarter was a difficult one. Our claims department
completed a review of all open liability claim files for 2006 and
prior accident years. Based on that review, we increased loss
reserves by $15 million. I believe this is a manageable adjustment
to our results, as the revised loss ratios remain quite good. Our
growth in written premium remained strong for the quarter; however,
given intense competition in the personal auto market, our growth
rate will be lower than we have experienced in the past. Due to the
increasing cost of acquiring new policies, we are carefully
evaluating our marketing expenditures." Net written premiums were
$208 million for the third quarter and $601 million for the first
nine months, an increase of 27% and 38% from the comparable periods
of 2006. Direct written premiums for the last twelve months were
$765 million. At September 30, 2007, Esurance had 472,000
policies-in-force, an increase of 40% over September 30, 2006.
Esurance writes business in 28 states that represent 85% of total
available premiums for the personal automobile insurance industry
in the United States. The expense ratios for the quarter and for
the first nine months were 34% for both periods, consistent with
the comparable periods of 2006. The operating expense ratio for the
first nine months is down to 7.5% compared to 9.6% last year.
Esurance continues to benefit from increasing scale, with an
emphasis on self service support, and the paperless, low cost
operating model. Other Operations White Mountains' Other Operations
segment's pre-tax income for the third quarter of 2007 was $7
million, compared to $10 million. For the first nine months of
2007, pre-tax income was $13 million, compared to $39 million. The
decrease in pre-tax income for the nine-month period is primarily
due to a $21 million gain from the redemption of a private equity
investment last year. Investment Activities The GAAP total return
on invested assets for the third quarter and the first nine months
of 2007 was 2.0% and 5.4% compared to 2.7% and 5.5% in the
comparable periods of 2006. Net investment income was $129 million
in the third quarter and $374 million in the first nine months, up
from $109 million and $312 million. Mark Dorcus, President of White
Mountains Advisors, said "We have had solid results so far this
year in very turbulent markets. Our bond portfolios have exceeded
our benchmarks with much less volatility and our equity portfolios
have performed in line with the market. Both have benefited from
the weakening U.S. dollar. However, the real story does not show up
in the comparison to these indices. Difficulties with sub-prime
mortgages continue to fester and taint many other companies'
investment portfolios. We avoided these problems and our bond
portfolios continue to be rock solid for the group." 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 November 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: Sept. 30,
June 30, December 31, (millions, except per share amounts) 2007
2007 2006 OneBeacon book value per share numerators: OneBeacon
common shareholders' equity $1,910.9 $1,861.3 1,777.2 Remaining
accretion of subsidiary preferred stock to face value (31.5) (40.8)
(57.7) Adjusted OneBeacon common shareholders' equity 1,879.4
1,820.5 1,719.5 OneBeacon common shares outstanding 99.7 100.0
100.0 OneBeacon book value per common share $19.17 $18.61 17.77
OneBeacon adjusted book value per common share $18.85 $18.21 17.20
Growth in adjusted book value per common share in the quarter (1)
4.6% Growth in adjusted book value per common share for the
nine-month period (1) 13.3% (1) Includes $.21 dividend per common
share paid quarterly beginning in March 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. Contact:
David Foy (230) 458-5850 WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (millions, except share
amounts) (Unaudited) September December September 30, 31, 30, 2007
2006 2006 Assets Fixed maturity investments $7,436.7 $7,475.3
$6,692.6 Common equity securities 1,471.3 1,212.6 1,042.0
Short-term investments 1,614.8 1,344.9 1,222.8 Other investments
549.3 524.8 498.0 Convertible fixed maturity investments 529.5
436.2 396.6 Investments held in trust 308.7 338.9 - Total
investments 11,910.3 11,332.7 9,852.0 Reinsurance recoverable on
unpaid losses 3,581.9 4,015.7 4,250.3 Reinsurance recoverable on
paid losses 58.1 159.4 89.3 Funds held by ceding companies 352.3
452.8 467.5 Insurance and reinsurance premiums receivable 971.1
913.6 1,002.3 Securities lending collateral 824.6 649.8 583.8
Investments in unconsolidated affiliates 404.4 335.5 529.1 Deferred
acquisition costs 358.6 320.3 333.5 Ceded unearned premiums 129.2
87.9 113.7 Accounts receivable on unsettled investment sales 21.7
8.5 354.1 Other assets 1,106.5 1,167.5 1,136.5 Total assets
$19,718.7 $19,443.7 $18,712.1 Liabilities Loss and loss adjustment
expense reserves $8,249.3 $8,777.2 $9,114.2 Unearned insurance and
reinsurance premiums 1,743.2 1,584.9 1,714.9 Debt 1,192.8 1,106.7
794.2 Securities lending payable 824.6 649.8 583.8 Preferred stock
subject to mandatory redemption 268.5 262.3 254.5 Ceded reinsurance
payable 124.0 138.4 135.6 Funds held under reinsurance treaties
99.5 141.6 119.6 Reserves for structured contracts 78.8 147.1 153.5
Accounts payable on unsettled investment purchases 85.4 66.8 303.5
Other liabilities 1,431.2 1,510.4 1,309.6 Total liabilities
14,097.3 14,385.2 14,483.4 Minority interest - OneBeacon Insurance
Group, Ltd. 536.3 490.7 - Minority interest - White Mountains Re
Group, Ltd. Preference Shares 250.0 - - Minority interest -
consolidated limited partnerships 102.5 112.5 110.0 Total minority
interest 888.8 603.2 110.0 Common Shareholders' Equity Common
shares and paid-in surplus 1,734.7 1,727.5 1,726.7 Retained
earnings 2,737.3 2,496.0 2,218.2 Accumulated other comprehensive
income (loss), after tax: Net unrealized gains on investments 207.2
198.1 169.8 Equity in net unrealized losses from Symetra's fixed
maturity portfolio (22.9) (4.1) (4.1) Net unrealized foreign
currency translation gains and other 76.3 37.8 8.1 Total common
shareholders' equity 4,732.6 4,455.3 4,118.7 Total liabilities,
minority interest and common shareholders' equity $19,718.7
$19,443.7 $18,712.1 Common shares outstanding (000's) 10,843 10,783
10,780 Common and equivalent shares outstanding (000's) 10,809
10,812 10,812 WHITE MOUNTAINS INSURANCE GROUP, LTD. FULLY DILUTED
TANGIBLE BOOK VALUE PER COMMON AND EQUIVALENT SHARE (Unaudited)
September 30, June 30, December 31, September 30, 2007 2007 2006
2006 Book value per share numerators (in millions): Common
shareholders' equity $4,732.6 $4,575.3 $4,455.3 $4,118.7 Benefits
to be received from share obligations under employee benefit plans
2.4 2.3 4.7 5.0 Remaining adjustment of preferred stock subj. to
mandatory redemption to face value (22.7)(1) (29.3)(1) (41.8)(1)
(65.5) Book value per share numerator 4,712.3 4,548.3 4,418.2
4,058.2 Equity in net unrealized losses from Symetra's fixed
maturity portfolio 22.9 38.5 4.1 4.1 Goodwill (28.7) (28.4) (32.5)
(25.8) Fully diluted tangible book value per common and equivalent
share numerator $4,706.5 $4,558.4 $4,389.8 $4,036.5 Book value per
share denominators (in thousands of shares): Common Shares
outstanding 10,842.6 10,842.5 10,782.8 10,780.1 Unearned restricted
shares (48.5) (50.6) - - Share obligations under employee benefits
plans 14.4 14.4 29.5 32.2 Fully diluted tangible book value per
common and equivalent share denominator 10,808.5 10,806.3 10,812.3
10,812.3 Book value per common and equivalent share $435.99 $420.90
$408.62 $375.34 Fully diluted tangible book value per common and
equivalent share $435.45 $421.83 $406.00 $373.33 (1) Remaining
adjustment of subsidiary preferred stock to face value, which is
representative of White Mountains' ownership interest in OneBeacon
Insurance Group, Ltd. of 71.9% as of September 30, 2007, 71.7% as
of June 30, 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 Nine Months Ended September 30,
September 30, 2007 2006 2007 2006 Revenues: Earned insurance and
reinsurance premiums $936.3 $918.9 $2,835.0 $2,773.4 Net investment
income 128.9 108.7 373.6 311.6 Net realized investment gains 29.9
67.8 192.9 202.8 Other revenue 60.3 90.8 130.6 157.1 Total revenues
1,155.4 1,186.2 3,532.1 3,444.9 Expenses: Loss and loss adjustment
expenses 591.9 558.1 1,797.3 1,885.9 Insurance and reinsurance
acquisition expenses 183.9 189.3 580.1 562.6 Other underwriting
expenses 103.6 122.8 377.5 361.5 General and administrative
expenses 43.0 53.1 158.3 120.0 Accretion of fair value adjustment
to loss and loss adjustment expense reserves 5.4 6.6 16.0 18.2
Interest expense on debt 19.8 12.9 54.9 36.5 Interest expense -
dividends on preferred stock subject to mandatory redemption 7.1
7.6 22.2 22.7 Interest expense - accretion on preferred stock
subject to mandatory redemption 9.2 7.3 26.2 20.6 Total expenses
963.9 957.7 3,032.5 3,028.0 Pre-tax income 191.5 228.5 499.6 416.9
Income tax provision (64.3) (69.3) (151.3) (66.9) Income before
equity in earnings of unconsolidated affiliates and minority
interest 127.2 159.2 348.3 350.0 Equity in earnings of
unconsolidated affiliates 8.2 5.6 27.3 29.4 Minority interest
(24.0) (2.7) (69.4) (5.5) Net income 111.4 162.1 306.2 373.9 Change
in net unrealized gains on investments 40.3 112.6 (9.7) (59.0)
Change in foreign currency translation and other 24.4 1.0 38.5 33.9
Comprehensive net income 176.1 275.7 335.0 348.8 Change in net
unrealized gains and losses from Symetra's fixed maturity portfolio
(15.6) (64.9) 18.8 28.3 Adjusted comprehensive net income $160.5
$210.8 $353.8 $377.1 Basic earnings per share $10.33 $15.05 $28.40
$34.72 Diluted earnings per share $10.32 $15.01 $28.35 $34.61
Dividends declared and paid per common share $2.00 $2.00 $6.00
$6.00 WHITE MOUNTAINS INSURANCE GROUP, LTD. YTD SEGMENT INCOME
STATEMENTS (in millions) (Unaudited) For the Nine Months Ended
September 30, 2007 OneBeacon WMRe Esurance Other Total Revenues:
Earned insurance and reinsurance premiums $1,407.5 $870.9 $556.6 $-
$2,835.0 Net investment income 156.7 155.7 21.5 39.7 373.6 Net
realized investment gains 142.7 44.9 2.8 2.5 192.9 Other revenue
16.3 9.5 9.1 95.7 130.6 Total revenues 1,723.2 1,081.0 590.0 137.9
3,532.1 Expenses: Loss and loss adjustment expenses 827.1 537.7
443.2 (10.7) 1,797.3 Insurance and reinsurance acquisition expenses
231.5 197.9 150.7 - 580.1 Other underwriting expenses 246.9 86.4
41.9 2.3 377.5 General and administrative expenses 7.5 21.7 .2
128.9 158.3 Accretion of fair value adjustment to loss and lae
reserves 12.0 4.0 - - 16.0 Interest expense on debt 34.1 16.2 - 4.6
54.9 Interest expense - dividends and accretion on preferred stock
48.4 - - 48.4 Total expenses 1,407.5 863.9 636.0 125.1 3,032.5
Pre-tax income (loss) $315.7 $217.1 $(46.0) $12.8 $499.6 For the
Nine Months Ended September 30, 2006 OneBeacon WMRe Esurance Other
Total Revenues: Earned insurance and reinsurance premiums $1,458.1
$943.8 $371.5 $- $2,773.4 Net investment income 144.2 130.6 13.6
23.2 311.6 Net realized investment gains 97.8 48.0 7.0 50.0 202.8
Other revenue 48.4 38.2 5.7 64.8 157.1 Total revenues 1,748.5
1,160.6 397.8 138.0 3,444.9 Expenses: Loss and loss adjustment
expenses 891.3 727.3 265.6 1.7 1,885.9 Insurance and reinsurance
acquisition expenses 249.8 217.0 95.8 - 562.6 Other underwriting
expenses 253.9 70.3 35.9 1.4 361.5 General and administrative
expenses 11.6 12.7 .1 95.6 120.0 Accretion of fair value adjustment
to loss and lae reserves 17.3 .9 - - 18.2 Interest expense on debt
34.8 1.2 - .5 36.5 Interest expense - dividends and accretion on
preferred stock 43.3 - - - 43.3 Total expenses 1,502.0 1,029.4
397.4 99.2 3,028.0 Pre-tax income $246.5 $131.2 .4 $38.8 $416.9
WHITE MOUNTAINS INSURANCE GROUP, LTD. QTD SEGMENT INCOME STATEMENTS
(in millions) (Unaudited) For the Three Months Ended September 30,
2007 OneBeacon WMRe Esurance Other Total Revenues: Earned insurance
and reinsurance premiums $473.6 $265.8 $196.9 $- $936.3 Net
investment income 51.5 54.6 7.9 14.9 128.9 Net realized investment
gains (losses) 30.7 2.8 0.3 (3.9) 29.9 Other revenue 10.8 15.0 3.0
31.5 60.3 Total revenues 566.6 338.2 208.1 42.5 1,155.4 Expenses:
Loss and loss adjustment expenses 255.8 170.3 165.8 - 591.9
Insurance and reinsurance acquisition expenses 74.9 53.3 55.7 -
183.9 Other underwriting expenses 66.4 25.2 11.3 .7 103.6 General
and administrative expenses 2.4 5.5 - 35.1 43.0 Accretion of fair
value adjustment to loss and lae reserves 4.0 1.4 - - 5.4 Interest
expense on debt 11.4 8.2 - .2 19.8 Interest expense - dividends and
accretion on preferred stock 16.3 - - - 16.3 Total expenses 431.2
263.9 232.8 36.0 963.9 Pre-tax income (loss) $135.4 $74.3 $(24.7)
$6.5 $191.5 For the Three Months Ended September, 2006 OneBeacon
WMRe Esurance Other Total Revenues: Earned insurance and
reinsurance premiums $492.6 $285.8 $140.5 $- $918.9 Net investment
income 48.2 46.1 5.2 9.2 108.7 Net realized investment gains 31.8
6.8 3.5 25.7 67.8 Other revenue 36.6 31.3 1.8 21.1 90.8 Total
revenues 609.2 370.0 151.0 56.0 1,186.2 Expenses: Loss and loss
adjustment expenses 292.0 163.1 100.5 2.5 558.1 Insurance and
reinsurance acquisition expenses 89.0 65.8 34.5 - 189.3 Other
underwriting expenses 84.0 24.8 13.5 .5 122.8 General and
administrative expenses 4.9 5.6 .1 42.5 53.1 Accretion of fair
value adjustment to loss and lae reserves 5.8 .8 - - 6.6 Interest
expense on debt 12.0 .4 - .5 12.9 Interest expense - dividends and
accretion on preferred stock 14.9 - - - 14.9 Total expenses 502.6
260.5 148.6 46.0 957.7 Pre-tax income $106.6 $109.5 $2.4 $10.0
$228.5 WHITE MOUNTAINS INSURANCE GROUP, LTD. SUMMARY OF GAAP RATIOS
AND PREMIUMS (Unaudited) Nine Months Ended September 30, 2007
OneBeacon WMRe Esurance Specialty Personal Commercial Total (1) (2)
GAAP Ratios Loss and LAE 57% 61% 54% 59% 62% 80% Expense 30% 33%
36% 34% 32% 34% Total Combined 87% 94% 90% 93% 94% 114% Dollars in
millions Net written premiums $344.2 $535.7 $557.0 $1,437.0 $905.3
$601.4 Earned premiums $324.3 $552.1 $531.0 $1,407.5 $870.9 $556.6
Nine Months Ended September 30, 2006 OneBeacon WMRe Esurance
Specialty Personal Commercial Total (1) (2) GAAP Ratios Loss and
LAE 55% 63% 58% 61% 77% 72% Expense 33% 32% 38% 35% 31% 35% Total
Combined 88% 95% 96% 96% 108% 107% Dollars in millions Net written
premiums $350.1 $626.3 $548.8 $1,526.0 $1,053.6 $436.0 Earned
premiums $321.0 $624.7 $511.6 $1,458.1 $943.8 $371.5 Three Months
Ended September 30, 2007 OneBeacon WMRe Esurance Specialty Personal
Commercial Total (1) (2) GAAP Ratios Loss and LAE 56% 53% 49% 54%
64% 84% Expense 29% 27% 34% 30% 30% 34% Total Combined 85% 80% 83%
84% 94% 118% Dollars in millions Net written premiums $136.6 $182.5
$192.8 $511.9 $222.3 $208.0 Earned premiums $109.1 $181.8 $182.6
$473.6 $265.8 $196.9 Three Months Ended September 30, 2006
OneBeacon WMRe Esurance Specialty Personal Commercial Total (1) (2)
GAAP Ratios Loss and LAE 54% 60% 56% 59% 57% 72% Expense 35% 33%
37% 35% 32% 34% Total Combined 89% 93% 93% 94% 89% 106% Dollars in
millions Net written premiums $142.5 $206.5 $186.3 $536.2 $286.4
$164.4 Earned premiums $111.0 $205.5 $175.3 $492.7 $285.8 $140.5
(1) Includes results of consolidated reciprocals. (2) Includes
results from runoff operations. DATASOURCE: White Mountains
Insurance Group, Ltd. CONTACT: David Foy of White Mountains
Insurance Group, Ltd., +1-203-458- 5850 Web site:
http://www.whitemountains.com/
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