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Segment Information
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Information
NOTE 14. Segment Information

White Mountains has determined that its reportable segments are OneBeacon, Sirius Group, HG Global/BAM 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.
OneBeacon is a specialty property and casualty insurance writer that offers a wide range of insurance products through independent agencies, regional and national brokers, wholesalers and managing general agencies.
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.
The HG Global/BAM segment consists of White Mountains’ investment in HG Global and the consolidated results of BAM. BAM is a municipal bond insurer domiciled in New York that was established to provide insurance on bonds issued to support essential U.S. public purposes such as schools, utilities, core governmental functions and existing transportation facilities. HG Global, together with its subsidiaries, provided the initial capitalization of BAM through the purchase of BAM Surplus Notes. HG Global also provides 15%-of-par, first loss reinsurance protection for policies underwritten by BAM. BAM's results are attributed to non-controlling interests.
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:
 
 
 
 
 
 
HG Global/BAM
 
 
 
 
Millions
 
OneBeacon
 
Sirius Group
 
HG Global
 
BAM
 
Other
Operations
 
Total
Year ended December 31, 2012
 
 

 
 

 
 
 
 
 
 

 
 

Earned insurance and reinsurance premiums
 
$
1,132.0

 
$
931.6

 
$
—

 
$
—

 
$
—

 
$
2,063.6

Net investment income
 
53.6

 
65.0

 
.3

 
1.9

 
32.8

 
153.6

Net investment income (loss) - surplus note interest
 
—

 
—

 
18.4

 
(18.4
)
 
—

—

—

Net realized and unrealized investment gains
 
55.7

 
17.3

 
—

 
—

 
45.2

 
118.2

Other revenue
 
(.5
)
 
70.6

 
—

 
—

 
30.2

 
100.3

Total revenues
 
1,240.8

 
1,084.5

 
18.7

 
(16.5
)
 
108.2

 
2,435.7

Losses and LAE
 
650.0

 
543.9

 
—

 
—

 
—

 
1,193.9

Insurance and reinsurance acquisition expenses
 
249.4

 
180.8

 
—

 
—

 
—

 
430.2

Other underwriting expenses
 
205.2

 
116.4

 
—

 
.2

 
—

 
321.8

General and administrative expenses
 
13.4

 
45.9

 
4.5

 
19.6

 
98.8

 
182.2

Interest expense on debt
 
16.9

 
26.2

 
—

 
—

 
1.7

 
44.8

Total expenses
 
1,134.9

 
913.2

 
4.5

 
19.8

 
100.5

 
2,172.9

Pre-tax income (loss)
 
$
105.9

 
$
171.3

 
$
14.2

 
$
(36.3
)
 
$
7.7

 
$
262.8


Millions
 
OneBeacon
 
Sirius Group
 
Other
Operations
 
Total
Year ended December 31, 2011
 
 

 
 

 
 

 
 

Earned insurance and reinsurance premiums
 
$
1,012.2

 
$
912.3

 
$
—

 
$
1,924.5

Net investment income
 
71.4

 
89.9

 
23.2

 
184.5

Net realized and unrealized investment gains
 
10.6

 
53.2

 
10.3

 
74.1

Other revenue
 
(12.4
)
 
4.1

 
(1.7
)
 
(10.0
)
Total revenues
 
1,081.8

 
1,059.5

 
31.8

 
2,173.1

Losses and LAE
 
548.3

 
626.0

 
—

 
1,174.3

Insurance and reinsurance acquisition expenses
 
221.2

 
181.0

 
—

 
402.2

Other underwriting expenses
 
162.3

 
105.8

 
—

 
268.1

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
 
962.1

 
978.5

 
134.5

 
2,075.1

Pre-tax income (loss)
 
$
119.7

 
$
81.0

 
$
(102.7
)
 
$
98.0

Millions
 
OneBeacon
 
Sirius Group
 
Other
Operations
 
Total
Year ended December 31, 2010
 
 

 
 

 
 

 
 

Earned insurance and reinsurance premiums
 
$
1,181.1

 
$
847.9

 
$
—

 
$
2,029.0

Net investment income
 
96.6

 
96.5

 
15.8

 
208.9

Net realized and unrealized investment gains (losses)
 
74.6

 
(14.8
)
 
17.8

 
77.6

Other revenue
 
(.6
)
 
40.9

 
(22.1
)
 
18.2

Total revenues
 
1,351.7

 
970.5

 
11.5

 
2,333.7

Losses and LAE
 
685.6

 
531.0

 
—

 
1,216.6

Insurance and reinsurance acquisition expenses
 
252.1

 
167.5

 
—

 
419.6

Other underwriting expenses
 
196.1

 
99.8

 
—

 
295.9

General and administrative expenses
 
12.9

 
31.6

 
110.5

 
155.0

Interest expense on debt
 
29.6

 
26.6

 
1.1

 
57.3

Total expenses
 
1,176.3

 
856.5

 
111.6

 
2,144.4

Pre-tax income (loss)
 
$
175.4

 
$
114.0

 
$
(100.1
)
 
$
189.3


 
 
 
 
 
 
HG Global/BAM
 
 
 
 
Selected Balance Sheet Data
 Millions
 
OneBeacon
 
Sirius Group
 
HG Global
 
BAM
 
Other
Operations
 
Total
December 31, 2012
 
 

 
 

 
 
 
 
 
 

 
 

Total investments
 
$
2,291.5

 
$
3,534.3

 
$
101.5

 
$
472.4

 
$
878.4

 
$
7,278.1

Reinsurance recoverable on paid and unpaid losses
 
110.7

 
336.3

 
—

 
—

 
—

 
447.0

Assets held for sale
 
2,226.8

 
—

 
—

 
—

 
—

 
2,226.8

Total assets
 
5,382.3

 
5,962.0

 
623.6

 
(28.6
)
(1 
) 
956.1

 
12,895.4

Loss and LAE reserves
 
1,000.0

 
2,168.9

 
—

 
—

 
—

 
3,168.9

Liabilities held for sale
 
2,226.8

 
—

 
—

 
—

 
—

 
2,226.8

Total liabilities
 
4,365.0

 
4,123.2

 
.9

 
7.4

 
140.7

 
8,637.2

Total White Mountains’ common shareholders’ equity
 
763.1

 
1,559.7

 
606.2

 
—

 
802.8

 
3,731.8

Non-controlling interest
 
254.2

 
279.1

 
16.5

 
(36.0
)
 
12.6

 
526.4

 
 
 
 
 
 
 
 
 
 
 
 
 
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

Total White Mountains’ common shareholders’ equity
 
826.7

 
1,264.3

 
—

 
—

 
1,996.7

 
4,087.7

Non-controlling interest
 
287.2

 
289.5

 
—

 
—

 
3.5

 
580.2

(1) BAM total assets reflect the elimination of $503.0 in surplus notes issued to HG Global and its subsidiaries, and $18.4 in accrued interest related to those surplus notes.