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Segment Information
 12 Months Ended
Dec. 31, 2011
Segment Information  
Segment Information

NOTE 14. Segment Information

 

White Mountains has determined that its reportable segments are OneBeacon, Sirius Group, and Other Operations. As a result of the Esurance Sale, the results of operations for Esurance have been classified as discontinued operations and are now presented, net of related income taxes, as such in the statement of comprehensive income. Prior year amounts have been reclassified to conform to the current period’s presentation (see Note 20).

 

White Mountains has made its segment determination based on consideration of the following criteria: (i) the nature of the business activities of each of the Company’s subsidiaries and affiliates; (ii) the manner in which the Company’s subsidiaries and affiliates are organized; (iii) the existence of primary managers responsible for specific subsidiaries and affiliates; and (iv) the organization of information provided to the chief operating decision makers and the Board of Directors.

 

Historically, OneBeacon offered a range of specialty, commercial and personal products and services. However, OneBeacon has completed two transactions that have transformed it into a specialty insurance company. On December 3, 2009, OneBeacon sold the renewal rights to its non-specialty commercial lines (the “Commercial Lines Transaction”) business and on July 1, 2010, OneBeacon completed the sale of its traditional personal lines business (the “Personal Lines Transaction”). OneBeacon specialty lines coverage is comprised of a collection of niche insurance business lines including professional liability products, marine insurance, collector cars and boats, property and inland marine, tuition reimbursement, excess property and accident and health products as well as property and casualty insurance coverages tailored to industry groups such as technology, financial services, entertainment, sports and leisure industries and government entities.

 

Sirius Group provides insurance and reinsurance products for property, accident and health, aviation and space, trade credit, marine, agriculture and certain other exposures on a worldwide basis.

 

Other Operations consists of the Company, the Company’s intermediate holding companies, WM Advisors and WM Life Re as well as and various other entities not included in other segments.

 

Significant intercompany transactions among White Mountains’ segments have been eliminated herein.

 

Financial information for White Mountains’ segments follows:

 

Millions

 

OneBeacon

 

Sirius Group

 

Other
Operations

 

Total

 

Year ended December 31, 2011:

 

 

 

 

 

 

 

 

 

Earned insurance and reinsurance premiums

 

$

1,015.5

 

$

912.3

 

$

—

 

$

1,927.8

 

Net investment income

 

71.4

 

89.9

 

23.2

 

184.5

 

Net realized and unrealized investment gains (losses)

 

10.6

 

101.9

 

10.3

 

122.8

 

Other revenue

 

(10.7

)

(44.6

)

(1.7

)

(57.0

)

Total revenues

 

1,086.8

 

1,059.5

 

31.8

 

2,178.1

 

Losses and LAE

 

580.9

 

626.0

 

—

 

1,206.9

 

Insurance and reinsurance acquisition expenses

 

219.0

 

181.0

 

—

 

400.0

 

Other underwriting expenses

 

173.3

 

105.8

 

—

 

279.1

 

General and administrative expenses

 

9.8

 

34.1

 

131.4

 

175.3

 

Interest expense on debt

 

20.5

 

31.6

 

3.1

 

55.2

 

Total expenses

 

1,003.5

 

978.5

 

134.5

 

2,116.5

 

Pre-tax income (loss)

 

$

83.3

 

$

81.0

 

$

(102.7

)

$

61.6

 

 

Millions

 

OneBeacon

 

Sirius Group

 

Other
Operations

 

Total

 

Year ended December 31, 2010:

 

 

 

 

 

 

 

 

 

Earned insurance and reinsurance premiums

 

$

1,403.9

 

$

847.9

 

$

—

 

$

2,251.8

 

Net investment income

 

96.6

 

96.5

 

15.8

 

208.9

 

Net realized and unrealized investment gains (losses)

 

74.6

 

(9.8

)

17.8

 

82.6

 

Other revenue

 

9.6

 

35.9

 

(22.1

)

23.4

 

Total revenues

 

1,584.7

 

970.5

 

11.5

 

2,566.7

 

Losses and LAE

 

858.2

 

531.0

 

—

 

1,389.2

 

Insurance and reinsurance acquisition expenses

 

311.6

 

167.5

 

—

 

479.1

 

Other underwriting expenses

 

233.1

 

99.8

 

—

 

332.9

 

General and administrative expenses

 

13.0

 

31.6

 

110.5

 

155.1

 

Interest expense on debt

 

29.6

 

26.6

 

1.1

 

57.3

 

Total expenses

 

1,445.5

 

856.5

 

111.6

 

2,413.6

 

Pre-tax income (loss)

 

$

139.2

 

$

114.0

 

$

(100.1

)

$

153.1

 

 

Millions

 

OneBeacon

 

Sirius Group

 

Other
Operations

 

Total

 

Year ended December 31, 2009:

 

 

 

 

 

 

 

 

 

Earned insurance and reinsurance premiums

 

$

1,858.8

 

$

858.8

 

$

—

 

$

2,717.6

 

Net investment income

 

125.5

 

110.3

 

14.3

 

250.1

 

Net realized and unrealized investment gains

 

248.6

 

112.6

 

.5

 

361.7

 

Other revenue

 

23.1

 

106.5

 

(15.7

)

113.9

 

Total revenues

 

2,256.0

 

1,188.2

 

(.9

)

3,443.3

 

Losses and LAE

 

1,005.3

 

418.8

 

—

 

1,424.1

 

Insurance and reinsurance acquisition expenses

 

376.3

 

170.9

 

—

 

547.2

 

Other underwriting expenses

 

308.5

 

98.1

 

—

 

406.6

 

General and administrative expenses

 

18.5

 

74.4

 

104.5

 

197.4

 

Interest expense on debt

 

39.7

 

26.3

 

4.8

 

70.8

 

Total expenses

 

1,748.3

 

788.5

 

109.3

 

2,646.1

 

Pre-tax income (loss)

 

$

507.7

 

$

399.7

 

$

(110.2

)

$

797.2

 

 

Selected Balance Sheet Data
Millions

 

OneBeacon

 

Sirius Group

 

Other
Operations

 

Discontinued
Operations

 

Total

 

December 31, 2011:

 

 

 

 

 

 

 

 

 

 

 

Total investments

 

$

2,707.6

 

$

3,640.5

 

$

1,919.9

 

$

—

 

$

8,268.0

 

Reinsurance recoverable on paid and unpaid losses

 

2,184.1

 

353.7

 

—

 

—

 

2,537.8

 

Assets held for sale

 

132.6

 

—

 

—

 

—

 

132.6

 

Total assets

 

5,792.4

 

5,337.9

 

2,933.7

 

—

 

14,064.0

 

Loss and LAE reserves

 

3,358.6

 

2,343.7

 

—

 

—

 

5,702.3

 

Liabilities held for sale

 

107.6

 

—

 

—

 

—

 

107.6

 

Total liabilities

 

4,678.5

 

3,784.1

 

933.5

 

—

 

9,396.1

 

Noncontrolling interest

 

287.2

 

289.5

 

3.5

 

—

 

580.2

 

Total White Mountains’ common shareholders’ equity

 

826.7

 

1,264.3

 

1,996.7

 

—

 

4,087.7

 

December 31, 2010:

 

 

 

 

 

 

 

 

 

 

 

Total investments

 

$

3,266.0

 

$

4,116.2

 

$

561.3

 

$

—

 

$

7,943.5

 

Reinsurance recoverable on paid and unpaid losses

 

1,937.7

 

469.4

 

—

 

—

 

2,407.1

 

Assets held for sale

 

—

 

—

 

—

 

1,122.8

 

1,122.8

 

Total assets

 

6,138.3

 

5,618.7

 

1,654.3

 

1,122.8

 

14,534.1

 

Loss and LAE reserves

 

3,295.5

 

2,441.3

 

—

 

—

 

5,736.8

 

Liabilities held for sale

 

—

 

—

 

—

 

751.5

 

751.5

 

Total liabilities

 

4,889.4

 

3,863.0

 

769.4

 

751.5

 

10,273.3

 

Noncontrolling interest

 

314.9

 

290.6

 

2.3

 

—

 

607.8

 

Total White Mountains’ common shareholders’ equity

 

934.0

 

1,465.1

 

882.6

 

371.3

 

3,653.0