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Discontinued Operations (Tables) | 6 Months Ended
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Jun. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures | Summary of Reclassified Balances and Related Items Net Assets Held for Sale The following summarizes the assets and liabilities associated with business classified as held for sale. At December 31, 2015, amounts presented relate to Sirius Group, Tranzact, Abiaka and SSIE. At June 30, 2016, the amounts presented relate to Tranzact, Abiaka, SSIE and Ashmere, a subsidiary formerly owned by Sirius Group.
Millions |  | June 30, 2016 |  | December 31, 2015
Assets held for sale |  |  |  |
Fixed maturity investments, at fair value |  | $ | 14.4 |  |  | $ | 2,383.5 |
Short-term investments, at amortized cost (which approximates fair value) |  | 4.2 |  |  | 352.1 |
Common equity securities, at fair value |  | — |  |  | 174.4 |
Other long-term investments |  | — |  |  | 72.2 |
Total investments |  | 18.6 |  |  | 2,982.2 |
Cash |  | 1.9 |  |  | 150.2 |
Reinsurance recoverable on unpaid losses |  | .4 |  |  | 283.6 |
Reinsurance recoverable on paid losses |  | — |  |  | 10.2 |
Insurance and reinsurance premiums receivable |  | 2.4 |  |  | 326.6 |
Deferred acquisition costs |  | — |  |  | 74.6 |
Deferred tax asset |  | — |  |  | 303.1 |
Ceded unearned insurance and reinsurance premiums |  | — |  |  | 87.7 |
Accounts receivable on unsettled investment sales |  | — |  |  | 29.0 |
Goodwill and intangible assets |  | 315.1 |  |  | 330.5 |
Other assets |  | 46.2 |  |  | 212.7 |
Total assets held for sale |  | $ | 384.6 |  |  | $ | 4,790.4 |
Liabilities held for sale |  |  |  |
Loss and loss adjustment expense reserves |  | $ | 5.7 |  |  | $ | 1,650.4 |
Unearned insurance and reinsurance premiums |  | 1.8 |  |  | 344.3 |
Debt |  | 96.9 |  |  | 506.4 |
Deferred tax liability |  | 8.7 |  |  | 270.6 |
Accrued incentive compensation |  | 1.0 |  |  | 64.2 |
Ceded reinsurance payable |  | (.2 | ) |  | 67.7 |
Funds held under reinsurance treaties |  | — |  |  | 52.9 |
Accounts payable on unsettled investment purchases |  | — |  |  | — |
Other liabilities |  | 36.7 |  |  | 111.9 |
Total liabilities held for sale |  | 150.6 |  |  | 3,068.4 |
Net assets held for sale |  | $ | 234.0 |  |  | $ | 1,722.0 |
Net Income from Discontinued Operations The following summarizes the results of operations, including related income taxes associated with the business classified as discontinued operations. For the three and six months ended June 30, 2016, the amounts presented relate to Sirius Group and Tranzact. For the three and six months ended June 30, 2015, the amounts presented relate to the sales of Sirius Group, Tranzact, Esurance, and the OneBeacon's runoff business. The results of discontinued operations from Sirius Group up to the closing date of the transaction inure to White Mountains.
|  | Three Months Ended |  | Three Months Ended
|  | June 30, 2016 |  | June 30, 2015
Millions |  | Sirius Group |  | Other Disc Ops |  | Total |  | Sirius Group |  | Other Disc Ops |  | Total
Revenues |  |  |  |  |  |  |  |  |  |  |  |
Earned insurance premiums |  | $ | 37.7 |  |  | $ | — |  |  | $ | 37.7 |  |  | $ | 215.5 |  |  | $ | — |  |  | $ | 215.5 |
Net investment income |  | 2.2 |  |  | — |  |  | 2.2 |  |  | 9.1 |  |  | — |  |  | 9.1 |
Net realized and unrealized gains (losses) |  | 7.3 |  |  | — |  |  | 7.3 |  |  | (46.1 | ) |  | — |  |  | (46.1 | )
Other revenue |  | 4.7 |  |  | 47.0 |  |  | 51.7 |  |  | 5.4 |  |  | 34.7 |  |  | 40.1 |
Total revenues |  | 51.9 |  |  | 47.0 |  |  | 98.9 |  |  | 183.9 |  |  | 34.7 |  |  | 218.6 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss adjustment expenses |  | 41.2 |  |  | — |  |  | 41.2 |  |  | 92.1 |  |  | — |  |  | 92.1 |
Insurance and reinsurance acquisition expenses |  | 10.6 |  |  | — |  |  | 10.6 |  |  | 47.5 |  |  | — |  |  | 47.5 |
Other underwriting expenses |  | 4.2 |  |  | — |  |  | 4.2 |  |  | 27.7 |  |  | — |  |  | 27.7 |
General and administrative expenses |  | .2 |  |  | 49.2 |  |  | 49.4 |  |  | 6.7 |  |  | 38.0 |  |  | 44.7 |
Interest expense |  | 1.3 |  |  | 1.3 |  |  | 2.6 |  |  | 6.6 |  |  | .9 |  |  | 7.5 |
Total expenses |  | 57.5 |  |  | 50.5 |  |  | 108.0 |  |  | 180.6 |  |  | 38.9 |  |  | 219.5 |
Pre-tax (loss) income |  | (5.6 | ) |  | (3.5 | ) |  | (9.1 | ) |  | 3.3 |  |  | (4.2 | ) |  | (.9 | )
Income tax benefit (expense) |  | 2.2 |  |  | (1.1 | ) |  | 1.1 |  |  | .5 |  |  | — |  |  | .5 |
Net (loss) income from discontinued operations |  | (3.4 | ) |  | (4.6 | ) |  | (8.0 | ) |  | 3.8 |  |  | (4.2 | ) |  | (.4 | )
Net gain from sales of discontinued operations - Sirius |  | 366.6 |  |  | — |  |  | 366.6 |  |  | — |  |  | — |  |  | — |
Net gain from sales of discontinued operations - OneBeacon |  | — |  |  | — |  |  | — |  |  | — |  |  | .3 |  |  | .3 |
Net loss from sale of discontinued operations - Esurance |  | — |  |  | — |  |  | — |  |  | — |  |  | (.4 | ) |  | (.4 | )
Total income (loss) from discontinued operations |  | $ | 363.2 |  |  | $ | (4.6 | ) |  | $ | 358.6 |  |  | $ | 3.8 |  |  | $ | (4.3 | ) |  | $ | (.5 | )
Change in foreign currency translation and other from discontinued operations |  | (5.2 | ) |  | — |  |  | (5.2 | ) |  | 44.0 |  |  | — |  |  | 44.0 |
Change in foreign currency translation and other from sale of Sirius Group |  | 113.3 |  |  | — |  |  | 113.3 |  |  | — |  |  | — |  |  | — |
Comprehensive income (loss) from discontinued operations |  | $ | 471.3 |  |  | $ | (4.6 | ) |  | $ | 466.7 |  |  | $ | 47.8 |  |  | $ | (4.3 | ) |  | $ | 43.5 |
|  | Six Months Ended |  | Six Months Ended
|  | June 30, 2016 |  | June 30, 2015
Millions |  | Sirius Group |  | Other Disc Ops |  | Total |  | Sirius Group |  | Other Disc Ops |  | Total
Revenues |  |  |  |  |  |  |  |  |  |  |  |
Earned insurance premiums |  | $ | 240.1 |  |  | $ | — |  |  | $ | 240.1 |  |  | $ | 420.5 |  |  | $ | — |  |  | $ | 420.5 |
Net investment income |  | 14.4 |  |  | — |  |  | 14.4 |  |  | 18.1 |  |  | — |  |  | 18.1 |
Net realized and unrealized (losses) gains |  | (1.5 | ) |  | — |  |  | (1.5 | ) |  | 32.3 |  |  | — |  |  | 32.3 |
Other revenue |  | .6 |  |  | 104.8 |  |  | 105.4 |  |  | (22.0 | ) |  | 72.1 |  |  | 50.1 |
Total revenues |  | 253.6 |  |  | 104.8 |  |  | 358.4 |  |  | 448.9 |  |  | 72.1 |  |  | 521.0 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss adjustment expenses |  | 154.9 |  |  | — |  |  | 154.9 |  |  | 189.6 |  |  | — |  |  | 189.6 |
Insurance and reinsurance acquisition expenses |  | 59.0 |  |  | — |  |  | 59.0 |  |  | 90.1 |  |  | — |  |  | 90.1 |
Other underwriting expenses |  | 30.9 |  |  | — |  |  | 30.9 |  |  | 53.2 |  |  | — |  |  | 53.2 |
General and administrative expenses |  | 8.3 |  |  | 102.6 |  |  | 110.9 |  |  | 13.0 |  |  | 77.2 |  |  | 90.2 |
Interest expense |  | 7.9 |  |  | 2.7 |  |  | 10.6 |  |  | 13.4 |  |  | 1.7 |  |  | 15.1 |
Total expenses |  | 261.0 |  |  | 105.3 |  |  | 366.3 |  |  | 359.3 |  |  | 78.9 |  |  | 438.2 |
Pre-tax (loss) income |  | (7.4 | ) |  | (.5 | ) |  | (7.9 | ) |  | 89.6 |  |  | (6.8 | ) |  | 82.8 |
Income tax benefit (expense) |  | 3.1 |  |  | (2.1 | ) |  | 1.0 |  |  | (19.9 | ) |  | — |  |  | (19.9 | )
Net (loss) income from discontinued operations |  | (4.3 | ) |  | (2.6 | ) |  | (6.9 | ) |  | 69.7 |  |  | (6.8 | ) |  | 62.9 |
Net gain from sales of discontinued operations - Sirius |  | 366.6 |  |  | — |  |  | 366.6 |  |  | — |  |  | — |  |  | — |
Net gain from sales of discontinued operations - OneBeacon |  | — |  |  | — |  |  | — |  |  | — |  |  | .3 |  |  | .3 |
Net gain from sales of discontinued operations - Esurance |  | — |  |  | — |  |  | — |  |  | — |  |  | 7.6 |  |  | 7.6 |
Total income (loss) from discontinued operations |  | $ | 362.3 |  |  | $ | (2.6 | ) |  | $ | 359.7 |  |  | $ | 69.7 |  |  | $ | 1.1 |  |  | $ | 70.8 |
Change in foreign currency translation and other from discontinued operations |  | 32.0 |  |  | — |  |  | 32.0 |  |  | (43.6 | ) |  | — |  |  | (43.6 | )
Change in foreign currency translation and other from sale of Sirius Group |  | 113.3 |  |  | — |  |  | 113.3 |  |  | — |  |  | — |  |  | — |
Comprehensive income (loss) from discontinued operations |  | $ | 507.6 |  |  | $ | (2.6 | ) |  | $ | 505.0 |  |  | $ | 26.1 |  |  | $ | 1.1 |  |  | $ | 27.2 |
Net Change in Cash from Discontinued Operations The following summarizes the net change in cash, including income tax (payment to) refund from national governments and interest paid associated with the business classified as discontinued operations:
|  | Six Months Ended
|  | June 30,
(Millions) |  | 2016 |  | 2015
Net cash used for operations |  | $ | (43.1 | ) |  | $ | (12.9 | )
Net cash provided from investing activities |  | 229.6 |  |  | 59.3 |
Net cash provided from (used for) financing activities |  | 9.0 |  |  | (2.0 | )
Effect of exchange rate changes on cash |  | — |  |  | (2.1 | )
Net change in cash during the period |  | 195.5 |  |  | 42.3 |
Cash balances at beginning of period |  | 148.9 |  |  | 114.5 |
Cash balances at end of period |  | $ | 344.4 |  |  | $ | 156.8 |
Supplemental cash flows information: |  |  |  |
Interest paid |  | $ | (1.4 | ) |  | $ | (14.5 | )
Net income tax payment to national governments |  | $ | (31.8 | ) |  | $ | (24.6 | )
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, 2016 and 2015:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, |  | June 30,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Basic and diluted earnings per share numerators (in millions): |  |  |  |  |  |  |  |  |
Net income attributable to White Mountains’s common shareholders |  | $ | 358.6 |  |  | $ | (.5 | ) |  | $ | 359.7 |  |  | $ | 70.8 |
Allocation of income for participating unvested restricted common shares(1) |  | (4.7 | ) |  | — |  |  | (4.1 | ) |  | (.8 | )
Net income attributable to White Mountains’s common shareholders, net of restricted common share amounts (2) |  | $ | 353.9 |  |  | $ | (.5 | ) |  | $ | 355.6 |  |  | $ | 70.0 |
Basic earnings per share denominators (in thousands): |  |  |  |  |  |  |  |  |
Total average common shares outstanding during the period |  | 5,096.1 |  |  | 5,985.7 |  |  | 5,317.8 |  |  | 5,982.1 |
Average unvested restricted common shares(3) |  | (66.5 | ) |  | (71.4 | ) |  | (60.2 | ) |  | (65.2 | )
Basic earnings per share denominator |  | 5,029.6 |  |  | 5,914.3 |  |  | 5,257.6 |  |  | 5,916.9 |
Diluted earnings per share denominator (in thousands): |  |  |  |  |  |  |  |  |
Total average common shares outstanding during the period(4) |  | 5,107.0 |  |  | 5,985.7 |  |  | 5,324.0 |  |  | 5,982.1 |
Average unvested restricted common shares(3) |  | (66.5 | ) |  | (71.4 | ) |  | (60.2 | ) |  | (65.2 | )
Diluted earnings per share denominator(4) |  | 5,040.5 |  |  | 5,914.3 |  |  | 5,263.8 |  |  | 5,916.9 |
Basic earnings per share (in dollars): |  | $ | 70.37 |  |  | $ | (.08 | ) |  | $ | 67.64 |  |  | $ | 11.84 |
Diluted earnings per share (in dollars): |  | $ | 70.22 |  |  | $ | (.08 | ) |  | $ | 67.56 |  |  | $ | 11.84 |
(1) Restricted shares issued by White Mountains contain dividend participation features, and therefore, are considered participating securities. (2) Net earnings attributable to White Mountains’s common shareholders, net of restricted share amounts, is equal to undistributed earnings for the three and six months ended June 30, 2016 and 2015. (3) Restricted common shares outstanding vest either in equal annual installments or upon a stated date. (See Note 15 - “Employee Share-Based Compensation Plans”). (4) ) The diluted earnings per share denominator for the three and six months ended June 30, 2016 includes the impact of 120,000 common shares issuable upon exercise of the non-qualified options outstanding, which results in 10,863 and 6,194 incremental shares outstanding over the periods.
Summary of the fair value and carrying value of financial instruments | The following table summarizes the fair value and carrying value of these financial instruments as of June 30, 2016 and December 31, 2015:
|  | June 30, 2016 |  | December 31, 2015
Millions |  | Fair Value |  | Carrying Value |  | Fair Value |  | Carrying Value
OBH Senior Notes |  | $ | 279.7 |  |  | $ | 273.0 |  |  | $ | 276.4 |  |  | $ | 272.9 |
MediaAlpha Bank Facility |  | 17.0 |  |  | 16.8 |  |  | 15.0 |  |  | 14.7 |

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