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Earnings Per Share (Tables) | 12 Months Ended
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Dec. 31, 2017
Earnings Per Share [Abstract] |
Computation of earnings per share | The following table presents the Company’s computation of earnings per share from continuing operations for the years ended December 31, 2017, 2016 and 2015. See Note 19 — “Held for Sale and Discontinued Operations”.
|  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015
Basic and diluted earnings per share numerators (in millions): |  |  |  |  |  |  |  |  |
Net income attributable to White Mountains’s common shareholders |  | $ | 627.2 |  |  | $ | 401.8 |  |  | $ | 295.2 |
Less: total income from discontinued operations, net of tax |  | 577.5 |  |  | 523.4 |  |  | 135.1 |
Net income (loss) from continuing operations attributable to White Mountains’s common shareholders |  | 49.7 |  |  | (121.6 | ) |  | 160.1 |
Allocation of earnings to participating restricted common shares (1) |  | (.7 | ) |  | 1.5 |  |  | (1.9 | )
Basic and diluted earnings per share numerators |  | $ | 49.0 |  |  | $ | (120.1 | ) |  | $ | 158.2 |
Basic earnings per share denominators (in thousands): |  |  |  |  |  |
Total average common shares outstanding during the period |  | 4,293.8 |  |  | 5,014.9 |  |  | 5,879.2 |
Average unvested restricted common shares (2) |  | (54.3 | ) |  | (64.8 | ) |  | (68.0 | )
Basic earnings per share denominator |  | 4,239.5 |  |  | 4,950.1 |  |  | 5,811.2 |
Diluted earnings per share denominator (in thousands): |  |  |  |  |  |
Total average common shares outstanding during the period |  | 4,293.8 |  |  | 5,018.1 |  |  | 5,879.2 |
Average unvested restricted common shares (2) |  | (54.3 | ) |  | (64.8 | ) |  | (68.0 | )
Diluted earnings per share denominator (3) |  | 4,239.5 |  |  | 4,953.3 |  |  | 5,811.2 |
Basic and diluted earnings per share (in dollars) - continuing operations: |  |  |  |  |  |
Distributed earnings - dividends declared and paid |  | $ | 1.00 |  |  | $ | 1.00 |  |  | $ | 1.00 |
Undistributed earnings (losses) |  | $ | 10.56 |  |  | $ | (25.26 | ) |  | $ | 26.22 |
Basic and diluted earnings per share |  | $ | 11.56 |  |  | $ | (24.26 | ) |  | $ | 27.22 |
(1) | Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities.
(2) | Restricted shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans”.
(3) | The diluted earnings (loss) per share denominator for the year ended December 31, 2016, includes the impact of 40,000 common shares issuable upon exercise of the non-qualified options outstanding, which resulted in 3,217 incremental shares outstanding over the period. Prior periods do not include the impact of 125,000 common shares issuable upon exercise of the non-qualified options outstanding as they are anti-dilutive to the calculation.
Schedule of Undistributed Net Earnings | The following table presents the undistributed net earnings (losses) from continuing operations for the years ended December 31, 2017, 2016 and 2015. See Note 19 — “Held for Sale and Discontinued Operations”.
| Year Ended December 31,
Millions |  | 2017 |  | 2016 |  | 2015
Undistributed net earnings - continuing operations: |  |  |  |  |  |
Net income (loss) attributable to White Mountains’s common shareholders, net of restricted common share amounts |  | $ | 49.0 |  |  | $ | (120.1 | ) |  | $ | 158.2 |
Dividends declared, net of restricted common share amounts (1) |  | (4.5 | ) |  | (5.4 | ) |  | (5.9 | )
Total undistributed net earnings (losses), net of restricted common share amounts |  | $ | 44.5 |  |  | $ | (125.5 | ) |  | $ | 152.3 |
(1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities. Net Assets Held for Sale The following table presents the assets and liabilities associated with business classified as held for sale as of December 31, 2016. Amounts presented relate to OneBeacon, Star & Shield and SSIE and the Company’s Guilford, Connecticut property. Assets held for sale as of December 31, 2017 consist solely of the Company’s Guilford, Connecticut property, which is recorded at the amount of its estimated fair value, net of estimated costs of disposal, of $3.3 million. The related writedown of $3.7 million has been recorded within other expenses.
Millions |  | December 31, 2016
Assets held for sale |  |
Fixed maturity investments, at fair value |  | $ | 2,175.7 |
Short-term investments, at amortized cost (which approximates fair value) |  | 112.3 |
Common equity securities, at fair value |  | 188.7 |
Other long-term investments |  | 150.5 |
Total investments |  | 2,627.2 |
Cash |  | 70.5 |
Reinsurance recoverable on unpaid losses |  | 179.8 |
Insurance and reinsurance premiums receivable |  | 229.8 |
Deferred acquisition costs |  | 96.3 |
Deferred tax asset |  | 126.7 |
Ceded unearned insurance and reinsurance premiums |  | 44.2 |
Accounts receivable on unsettled investment sales |  | 1.4 |
Goodwill and other intangible assets |  | 1.2 |
Accrued investment income |  | 11.3 |
Other assets |  | 218.0 |
Total assets held for sale |  | $ | 3,606.4 |
Liabilities held for sale |  |
Loss and loss adjustment expense reserves |  | $ | 1,370.6 |
Unearned insurance and reinsurance premiums |  | 576.3 |
Debt |  | 273.2 |
Accrued incentive compensation |  | 44.3 |
Funds held under reinsurance treaties |  | 153.0 |
Other liabilities |  | 151.9 |
Total liabilities held for sale |  | 2,569.3 |
Net assets held for sale |  | $ | 1,037.1 |
Net Income (Loss) from Discontinued Operations The following tables present the results of operations, including related income taxes associated with the business classified as discontinued operations. For the year ended December 31, 2017 and 2016, the amounts presented relate to OneBeacon, Sirius Group and Tranzact. For the year ended December 31, 2015, the amounts presented relate to OneBeacon, Sirius Group, Tranzact and Esurance. The results of discontinued operations from Sirius Group and Tranzact up to the closing date of the transaction inure to White Mountains.
|  | Year Ended December 31, 2017
Millions |  | OneBeacon |  | Sirius Group |  | Tranzact |  | Total
Revenues |  |  |  |  |  |  |  |  |
Earned insurance premiums |  | $ | 807.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 807.6 |
Net investment income |  | 39.7 |  |  | — |  |  | — |  |  | 39.7 |
Net realized and unrealized investment gains |  | 38.8 |  |  | — |  |  | — |  |  | 38.8 |
Other revenues |  | 7.7 |  |  | — |  |  | — |  |  | 7.7 |
Total revenues |  | 893.8 |  |  | — |  |  | — |  |  | 893.8 |
Expenses |  |  |  |  |  |  |  |
Loss and loss adjustment expenses |  | 546.0 |  |  | — |  |  | — |  |  | 546.0 |
Insurance and reinsurance acquisition expenses |  | 145.6 |  |  | — |  |  | — |  |  | 145.6 |
Other underwriting expenses |  | 156.2 |  |  | — |  |  | — |  |  | 156.2 |
General and administrative expenses |  | 21.2 |  |  | — |  |  | — |  |  | 21.2 |
Interest expense |  | 10.0 |  |  |  |  |  |  | 10.0 |
Total expenses |  | 879.0 |  |  | — |  |  | — |  |  | 879.0 |
Pre-tax income |  | 14.8 |  |  | — |  |  | — |  |  | 14.8 |
Income tax benefit |  | 5.7 |  |  | — |  |  | — |  |  | 5.7 |
Net income from discontinued operations |  | 20.5 |  |  | — |  |  | — |  |  | 20.5 |
Gain (loss) from sale of discontinued operations, net of tax |  | 554.5 |  |  | (.7 | ) |  | 3.2 |  |  | 557.0 |
Total income (loss) from discontinued operations |  | 575.0 |  |  | (.7 | ) |  | 3.2 |  |  | 577.5 |
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax |  | .3 |  |  | — |  |  | — |  |  | .3 |
Recognition of benefit plan assets and obligations from the sale of OneBeacon, net of tax |  | 2.9 |  |  | — |  |  | — |  |  | 2.9 |
Comprehensive income (loss) from discontinued operations |  | $ | 578.2 |  |  | $ | (.7 | ) |  | $ | 3.2 |  |  | $ | 580.7 |
|  | Year Ended December 31, 2016
Millions |  | OneBeacon |  | Sirius Group |  | Tranzact |  | Total
Revenues |  |  |  |  |  |  |  |  |
Earned insurance premiums |  | $ | 1,100.6 |  |  | $ | 240.1 |  |  | $ | — |  |  | $ | 1,340.7 |
Net investment income |  | 50.6 |  |  | 14.4 |  |  | — |  |  | 65.0 |
Net realized and unrealized investment gains (losses) |  | 37.7 |  |  | (1.5 | ) |  | — |  |  | 36.2 |
Other revenues |  | 5.5 |  |  | .6 |  |  | 119.6 |  |  | 125.7 |
Total revenues |  | 1,194.4 |  |  | 253.6 |  |  | 119.6 |  |  | 1,567.6 |
Expenses |  |  |  |  |  |  |  |
Loss and loss adjustment expenses |  | 656.0 |  |  | 154.9 |  |  | — |  |  | 810.9 |
Insurance and reinsurance acquisition expenses |  | 206.0 |  |  | 59.0 |  |  | — |  |  | 265.0 |
Other underwriting expenses |  | 209.0 |  |  | 30.9 |  |  | — |  |  | 239.9 |
General and administrative expenses |  | 14.2 |  |  | 10.4 |  |  | 116.7 |  |  | 141.3 |
Interest expense |  | 13.1 |  |  | 7.9 |  |  | 3.2 |  |  | 24.2 |
Total expenses |  | 1,098.3 |  |  | 263.1 |  |  | 119.9 |  |  | 1,481.3 |
Pre-tax income (loss) |  | 96.1 |  |  | (9.5 | ) |  | (.3 | ) |  | 86.3 |
Income tax benefit |  | 12.5 |  |  | 3.1 |  |  | 6.4 |  |  | 22.0 |
Net income (loss) from discontinued operations |  | 108.6 |  |  | (6.4 | ) |  | 6.1 |  |  | 108.3 |
Gain from sale of discontinued operations, net of tax |  | — |  |  | 363.2 |  |  | 51.9 |  |  | 415.1 |
Total income from discontinued operations |  | 108.6 |  |  | 356.8 |  |  | 58.0 |  |  | 523.4 |
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax |  | 1.0 |  |  | 32.0 |  |  | — |  |  | 33.0 |
Recognition of foreign currency translation from sale of Sirius Group, net of tax |  | — |  |  | 113.3 |  |  | — |  |  | 113.3 |
Comprehensive income from discontinued operations |  | $ | 109.6 |  |  | $ | 502.1 |  |  | $ | 58.0 |  |  | $ | 669.7 |
|  | Year Ended December 31, 2015
Millions |  | OneBeacon |  | Sirius Group |  | Other Disc Ops |  | Total
Revenues |  |  |  |  |  |  |  |  |
Earned insurance premiums |  | $ | 1,176.2 |  |  | $ | 847.0 |  |  | $ | — |  |  | $ | 2,023.2 |
Net investment income |  | 45.9 |  |  | 40.7 |  |  | — |  |  | 86.6 |
Net realized and unrealized investment (losses) gains |  | (35.1 | ) |  | 15.1 |  |  | — |  |  | (20.0 | )
Other (loss) revenues |  | (.6 | ) |  | (20.6 | ) |  | 186.2 |  |  | 165.0 |
Total revenues |  | 1,186.4 |  |  | 882.2 |  |  | 186.2 |  |  | 2,254.8 |
Expenses |  |  |  |  |  |  |  |  |
Loss and loss adjustment expenses |  | 700.7 |  |  | 422.7 |  |  | — |  |  | 1,123.4 |
Insurance and reinsurance acquisition expenses |  | 213.8 |  |  | 189.8 |  |  | — |  |  | 403.6 |
Other underwriting expenses |  | 218.2 |  |  | 107.9 |  |  | — |  |  | 326.1 |
Interest expense |  | 15.4 |  |  | 26.6 |  |  | 4.0 |  |  | 46.0 |
General and administrative expenses |  | 13.0 |  |  | 27.0 |  |  | 185.3 |  |  | 225.3 |
Total expenses |  | 1,161.1 |  |  | 774.0 |  |  | 189.3 |  |  | 2,124.4 |
Pre-tax income (loss) |  | 25.3 |  |  | 108.2 |  |  | (3.1 | ) |  | 130.4 |
Income tax benefit (expense) |  | 12.9 |  |  | (27.1 | ) |  | .7 |  |  | (13.5 | )
Net income (loss) from discontinued operations |  | 38.2 |  |  | 81.1 |  |  | (2.4 | ) |  | 116.9 |
Gain from sale of OneBeacon runoff, net of tax |  | .3 |  |  | — |  |  | — |  |  | .3 |
Gain from sale of Esurance, net of tax |  | — |  |  | — |  |  | 17.9 |  |  | 17.9 |
Total income from discontinued operations |  | 38.5 |  |  | 81.1 |  |  | 15.5 |  |  | 135.1 |
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax |  | — |  |  | (65.0 | ) |  | — |  |  | (65.0 | )
Comprehensive income from discontinued operations |  | $ | 38.5 |  |  | $ | 16.1 |  |  | $ | 15.5 |  |  | $ | 70.1 |
Net Change in Cash from Discontinued Operations The following table presents the net change in cash associated with the businesses classified as discontinued operations:
|  | Year ended December 31,
Millions |  | 2017 |  | 2016 |  | 2015
Net cash provided from operations |  | $ | 157.0 |  |  | $ | 23.6 |  |  | $ | 248.4 |
Net cash provided from (used for) investing activities |  | 3.0 |  |  | 241.4 |  |  | (100.5 | )
Net cash used for financing activities |  | (61.9 | ) |  | (93.8 | ) |  | (100.7 | )
Effect of exchange rate changes on cash |  | — |  |  | — |  |  | (4.5 | )
Net change in cash during the period |  | 98.1 |  |  | 171.2 |  |  | 42.7 |
Cash balances at beginning of period |  | 70.5 |  |  | 245.4 |  |  | 203.8 |
Net change in cash held for sale |  | (.9 | ) |  | (.3 | ) |  | (1.1 | )
Cash sold as part of sale of consolidated subsidiaries |  | (167.7 | ) |  | (345.8 | ) |  | — |
Cash balances at end of period |  | $ | — |  |  | $ | 70.5 |  |  | $ | 245.4 |

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