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Discontinued Operations
 6 Months Ended
Jun. 30, 2012
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
 
Esurance
On October 7, 2011, White Mountains completed the sale of Esurance Insurance and AFI to Allstate (see Note 2).  As a result of the transaction, Esurance Insurance, AFI and the business Esurance Insurance cedes to Sirius Group (collectively, “the Esurance Disposal Group”) are reported as discontinued operations.  White Mountains recognized a gain of $677.5 million on the Esurance Sale which is recorded net of tax in discontinued operations.  Effective as of December 31, 2011, the results of operations for the Esurance Disposal Group have been classified as discontinued operations and are presented, net of related income taxes, in the statement of comprehensive income. The assets and liabilities of the Esurance Disposal Group have been presented in the balance sheet as held for sale.  Prior year amounts have been reclassified to conform to the current period’s presentation.

AutoOne
 On February 22, 2012, OneBeacon completed the sale of the AutoOne business to Interboro. AutoOne operated as a division within OneBeacon that offered products and services to automobile assigned risk markets. The transaction included the sale of two insurance entities, AOIC and AOSIC, through which substantially all of the AutoOne business was written on a direct basis. For the six months ended June 30, 2012, the results of operations for the AutoOne business have been classified as discontinued operations and are presented, net of related income taxes, in the statement of comprehensive income. Prior year results of operations have been reclassified to conform to the current period’s presentation. The AutoOne disposal group excludes investing and financing activities from amounts classified as discontinued operations. OneBeacon’s investing and financing operations are conducted on an overall consolidated level and accordingly, there were no separately identifiable cash investing or financing cash flows associated with AutoOne. The assets and liabilities associated with the AutoOne business as of December 31, 2011 have been presented in the balance sheet as held for sale.
 
Net Assets Held for Sale
The following summarizes the assets and liabilities associated with the businesses classified as held for sale:
 
Millions
December 31,
2011
Assets held for sale
 

Fixed maturity investments, at fair value
$
111.8

Cash
5.5

Insurance premiums receivable
8.8

Deferred acquisition costs
2.2

Deferred tax asset
1.9

Other assets
2.4

Total assets held for sale
$
132.6

Liabilities held for sale
 

Loss and loss adjustment expense reserves
$
64.7

Unearned insurance premiums
34.1

Other liabilities
8.8

Total liabilities held for sale
107.6

Net assets held for sale
$
25.0


Income (Loss) from Discontinued Operations 
The following summarizes the results of operations, including related income taxes associated with the businesses classified as discontinued operations:
 
 
 
Three Months Ended
 
Six Months Ended
Millions, except per share amounts
 
June 30,
 
June 30,
 
 
2012
 
2011
 
2012
 
2011
Revenues
 
 

 
 

 
 

 
 

Earned insurance premiums
 
$
—

 
$
237.2

 
$
7.8

 
$
464.9

Net investment income
 
—

 
4.0

 
—

 
8.0

Net realized and unrealized investment gains (losses)
 
—

 
4.4

 
—

 
7.8

Other revenue
 
—

 
17.2

 
—

 
34.9

Total revenues
 
—

 
262.8

 
7.8

 
515.6

Expenses
 


 


 


 


Loss and loss adjustment expenses
 
—

 
170.1

 
6.7

 
338.2

Insurance and reinsurance acquisition expenses
 
—

 
53.6

 
1.0

 
103.1

Other underwriting expenses
 
—

 
22.5

 
.2

 
44.0

General and administrative expenses
 
—

 
23.3

 
—

 
35.8

Total expenses
 
—

 
269.5

 
7.9

 
521.1

Pre-tax (loss) income
 
—

 
(6.7
)
 
(.1
)
 
(5.5
)
Income tax benefit
 
—

 
5.2

 
.2

 
6.5

Income (loss) from discontinued operations
 
$
—

 
$
(1.5
)
 
$
.1

 
$
1.0


Earnings Per Share
 
Basic earnings per share amounts are based on the weighted average number of common shares outstanding including unvested restricted shares that are considered participating securities.  Diluted earnings per share amounts are based on the weighted average number of common shares including unvested restricted shares and the net effect of potentially dilutive common shares outstanding.
The following table outlines the computation of earnings per share for discontinued operations for the three and six months ended June 30, 2012 and 2011:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2012
 
2011
 
2012
 
2011
Basic and diluted earnings per share numerators (in millions):
 
 

 
 

 
 

 
 

Net income (loss) attributable to White Mountains’ common shareholders
 
$
—

 
$
(1.5
)
 
$
.1

 
$
1.0

Allocation of income for participating unvested restricted common shares (1)
 
—

 
—

 
—

 
—

Net income attributable to White Mountains’ common shareholders, net of
     restricted common share amounts (2)
 
$
—

 
$
(1.5
)
 
$
.1

 
$
1.0

Basic earnings per share denominators (in thousands):
 


 


 


 


Total average common shares outstanding during the period
 
6,638.7

 
7,958.8

 
7,033.0

 
7,995.1

Average unvested restricted common shares (3)
 
(93.5
)
 
(73.3
)
 
(85.9
)
 
(65.2
)
Basic earnings per share denominator
 
6,545.2

 
7,885.5

 
6,947.1

 
7,929.9

Diluted earnings per share denominator (in thousands):
 
 
 
 
 
 
 
 
Total average common shares outstanding during the period
 
6,638.7

 
7,958.8

 
7,033.0

 
7,995.1

Average unvested restricted common shares
 
(93.5
)
 
(73.3
)
 
(85.9
)
 
(65.2
)
Average outstanding dilutive options to acquire common shares
 
—

 
—

 
—

 
—

Diluted earnings per share denominator
 
6,545.2

 
7,885.5

 
6,947.1

 
7,929.9

Basic and diluted earnings per share (in dollars):
 
$
—

 
$
(.18
)
 
$
.02

 
$
.13

(1) Restricted shares issued by White Mountains contain dividend participation features, and therefore, are considered participating securities.
(2) Net income (loss) attributable to White Mountains’ common shareholders, net of restricted share amounts, is equal to undistributed earnings (loss) for the three and six months ended June 30, 2012 and 2011.
(3) Restricted common shares outstanding vest either in equal annual installments or upon a stated date (see Note 12)