XML 58 R25.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Variable Interest Entities | 12 Months Ended
--- | ---
Dec. 31, 2014
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] |
Variable Interest Entities | Variable Interest Entities BAM As a mutual insurance company, BAM is owned by its members and a portion of each member’s policy payments represents a contribution to member’s surplus. During 2012, White Mountains capitalized HG Global to fund BAM through the purchase of $503.0 million of BAM Surplus Notes. The equity at risk funded by BAM’s members is not sufficient to fund its operations without the additional subordinated financial support provided by the BAM Surplus Notes and accordingly, BAM is considered to be a VIE. BAM and HG Global, through its wholly-owned subsidiary, HG Re, entered into a first loss reinsurance treaty (“FLRT”), under which HG Re will provide first loss protection up to 15% of par outstanding on each bond insured by BAM in exchange for 60% of the premium, net of a ceding commission, charged by BAM. HG Re’s obligations under the FLRT are satisfied by the assets in two collateral trusts: a Regulation 114 Trust and a Supplemental Trust. Losses required to be reimbursed to BAM by HG Re are subject to an aggregate limit equal to the assets held in the collateral trusts at any point in time. In addition, HG Global has the right to designate two directors for election to BAM’s board of directors. White Mountains is required to consolidate the results of BAM. Since BAM is owned by its members, its equity and results of operations are included in non-controlling interests. Reciprocals Reciprocals are policyholder-owned insurance carriers organized as unincorporated associations. Each policyholder insured by the reciprocal shares risk with the other policyholders. Policyholders share profits and losses in the same proportion as the amount of insurance purchased but are not subject to assessment for net losses of the reciprocal. Houston General Insurance Exchange Houston General Management Company, a wholly-owned indirect subsidiary of OneBeacon provides management services for a fee to a reciprocal, Houston General Insurance Exchange (“HGIE”). As of December 31, 2014, OneBeacon holds a surplus note issued by HGIE, the remaining balance of which is $4.0 million as of December 31, 2014. The principal and interest on the surplus note is repayable to OneBeacon only with regulatory approval. The obligation to repay principal on the note is subordinated to all other liabilities including obligations to policyholders and claimants for benefits under insurance policies. OneBeacon has no ownership interest in the reciprocal. OneBeacon has determined that HGIE qualifies as a VIE. Furthermore, OneBeacon has determined that it is the primary beneficiary as a result of the management services provided to the reciprocal and the funds loaned to it. Accordingly, OneBeacon consolidates HGIE. As of December 31, 2014 and 2013, consolidated amounts related to HGIE included total assets of $2.4 million and $2.6 million and total liabilities of $4.0 million and $4.2 million. As of December 31, 2014, the net amount of capital at risk is equal to the surplus note of $4.0 million less the accumulated losses of $1.8 million which includes accrued interest on the surplus note of $0.2 million that eliminates in consolidation. Star & Shield Insurance Exchange Star & Shield Risk Management LLC, a wholly-owned indirect subsidiary of White Mountains provides management and other services for a fee to a reciprocal, Star & Shield Insurance Exchange (“SSIE”). As of December 31, 2014, White Mountains held $17.0 million of surplus notes issued by SSIE. The principal and interest on the surplus notes are repayable to White Mountains only with regulatory approval. The obligation to repay principal on the note is subordinated to all other liabilities including obligations to policyholders and claimants for benefits under insurance policies. Because SSIE is consolidated in White Mountains’s financial statements, the SSIE Surplus Notes and accrued interest are classified as intercompany notes, carried at face value and eliminated in consolidation. White Mountains has no ownership interest in SSIE. White Mountains has determined that SSIE qualifies as a VIE. Furthermore, White Mountains has determined that it is the primary beneficiary as a result of the management services provided to the reciprocal and the funds loaned to it. Accordingly, White Mountains consolidates SSIE. As of December 31, 2014, consolidated amounts related to SSIE included total assets of $13.5 million and total liabilities of $25.9 million. As of December 31, 2014, the net amount of capital at risk is equal to the surplus notes of $17.0 million less the accumulated losses of $12.4 million. Prospector Funds White Mountains determined that the Prospector Offshore Fund, Ltd. and Prospector Turtle Fund, Ltd. (collectively, the “Prospector Funds”) are VIEs for which White Mountains is the primary beneficiary and is required to consolidate. In 2014, White Mountains redeemed its interest in the Prospector Turtle Fund. As of December 31, 2014 and 2013, White Mountains consolidated total assets of $135.8 million and $249.2 million and total liabilities of $39.8 million and $90.6 million of the Prospector Funds. In addition, as of December 31, 2014 and 2013, White Mountains recorded non-controlling interest of $31.1 million and $46.2 million in the Prospector Funds. For the years ended December 31, 2014, 2013 and 2012, White Mountains recorded $5.6 million, $14.5 million, and $9.3 million of income and $1.9 million, $4.0 million and $2.7 million of non-controlling interest income related to the Prospector Funds. As of December 31, 2014, the net amount of capital at risk is equal to White Mountains’s investment in Prospector Offshore Fund of $64.9 million, which represents White Mountains’s ownership interest of 67.6% in the Prospector Offshore Fund. TaClaro In 2013, White Mountains invested $3.0 million in the convertible preferred shares of TaClaro Holdings B.V. (“TaClaro”), representing a 27% ownership interest on a fully converted basis. TaClaro owns TaCerto.com, a Brazilian online insurance broker. During 2014, White Mountains invested an additional $1.5 million in the convertible preferred shares, increasing the ownership percentage to 39% on a fully converted basis. Also, during 2014, in connection with a restructuring of TaClaro’s equity ownership, White Mountains invested an additional $2.0 million comprising of $1.7 million in loans and $0.3 million in common shares. As of December 31, 2014, White Mountains holds a 49% ownership share on a fully converted basis. The investments in TaClaro are included within other long term investments (see Note 5). White Mountains has determined that TaClaro is a VIE but White Mountains is not the primary beneficiary because it does not have the power to direct the activities of TaClaro that most significantly impact the entity’s economic performance. White Mountains’s exposure to loss is limited to the carrying value of its investments in TaClaro. Tranzutary White Mountains holds a 36.0% ownership interest in Tranzutary Holdings LLC (“Tranzutary”) through its investment in Tranzact Holdings. Tranzact Holdings has entered into a services agreement under which it manages the day-to-day operations of Tranzutary for a fee. White Mountains has determined that Tranzutary is a VIE. Further, White Mountains has determined that Tranzact Holdings is the primary beneficiary as a result of the services provided and Tranzact Holdings’s ownership interest in Tranzutary. As of December 31, 2014, consolidated amounts related to Tranzutary included total assets of $29.6 million, which includes other intangible assets of $28.9 million, and total liabilities of $4.1 million. Tuckerman Fund I, Hamer and Bri-Mar On December 31, 2011, the Tuckerman Capital, LP fund (“Tuckerman Fund I”) was dissolved and all of the net assets of the fund were distributed to the owners of the fund, of which White Mountains owned approximately 94%. In conjunction with the dissolution, White Mountains received a portion of the shares of Hamer and Bri-Mar, two small manufacturing companies that were owned by the Tuckerman Fund I. The consolidated results of Hamer and Bri-Mar are included in the Other Operations segment from January 1, 2012 through September 30, 2012, at which point the results of these companies were no longer consolidated by White Mountains. Prior to the dissolution, White Mountains had determined that Tuckerman Fund I was a VIE for which White Mountains was the primary beneficiary and was required to consolidate Tuckerman Fund I.

X
- Details
Name: | us-gaap_VariableInterestEntityNotPrimaryBeneficiaryDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Entire disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE. + References No definition available. + Details
Name: | wtm_VariableInterestEntityDisclosureTextBlock
Namespace Prefix: | wtm_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration