XML 40 R22.htm IDEA: XBRL DOCUMENT v3.20.4
Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
As of December 31, 2020, White Mountains conducted its operations through four segments: (1) HG Global/BAM, (2) NSM, (3) Kudu and (4) Other Operations. In addition, MediaAlpha was consolidated as a reportable segment until the date of the 2019 MediaAlpha Transaction. A discussion of White Mountains’s consolidated investment operations is included after the discussion of operations by segment.
As a result of the Kudu Transaction, White Mountains began consolidating Kudu in its financial statements in the second quarter of 2019. White Mountains’s segment disclosures for the year ended December 31, 2019 include Kudu’s results of operations for the period from April 4, 2019, the date of the Kudu Transaction, to December 31, 2019. See Note 2 — “Significant Transactions”.
As a result of the 2019 MediaAlpha Transaction, White Mountains no longer consolidated MediaAlpha, and consequently it was no longer a reportable segment. White Mountains’s segment disclosures for the year ended December 31, 2019 include MediaAlpha’s results of operations for the period from January 1, 2019 to February 26, 2019, the date of the 2019 MediaAlpha Transaction. See Note 2 — “Significant Transactions”.
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. Significant intercompany transactions among White Mountains’s segments have been eliminated herein.
The following tables present the financial information for White Mountains’s segments:
Millions
HG Global/BAM (1)
NSMKuduOther
Operations		Total
Year Ended December 31, 2020  
Earned insurance premiums$22.8$—$— $—$22.8 
Net investment income19.5 — 29.5 82.0 131.0 
Net realized and unrealized investment gains (losses) 23.7 — 15.9 (8.8)30.8 
Net realized and unrealized investment gains from
investment in MediaAlpha		— — — 686.0 686.0 
Advertising and commission revenues (2)
— 232.5 — 8.3 240.8 
Other revenues2.5 52.6 .3 13.9 69.3 
Total revenues68.5 285.1 45.7 781.4 1,180.7 
Insurance acquisition expenses7.0 — — — 7.0 
Other underwriting expenses.4 — — — .4 
Cost of sales— — — 11.3 11.3 
General and administrative expenses56.4 176.9 11.8 141.9 387.0 
Broker commission expense— 75.3 — — 75.3 
Change in fair value of contingent consideration
earnout liabilities		— (3.3)— — (3.3)
Amortization of other intangible assets— 26.7 .3 1.3 28.3 
Interest expense— 22.1 6.0 1.4 29.5 
Total expenses63.8 297.7 18.1 155.9 535.5 
Pre-tax income (loss)$4.7 $(12.6)$27.6 $625.5 $645.2 
(1)    BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS.
(2)    Approximately 19% of NSM’s commission revenue was associated with one single carrier.
Millions
HG Global/BAM (1)
NSM
Kudu (2)
MediaAlpha (3)
Other
Operations		Total
Year Ended December 31, 2019  
Earned insurance premiums$16.3$— $— $— $— $16.3 
Net investment income21.6 — 14.7 — 43.4 79.7 
Net realized and unrealized investment gains27.1 — 6.3 — 219.8 253.2 
Net realized and unrealized investment gains
from investment in MediaAlpha		— — — — 180.0180.0 
Gain from deconsolidation of MediaAlpha— — — 67.567.5 
Advertising and commission revenues (4)
— 193.4 — 48.8 6.9 249.1 
Other revenues1.6 39.7 .2 — 6.1 47.6 
Total revenues66.6 233.1 21.2 48.8 523.7 893.4 
Insurance acquisition expenses5.7 — — — — 5.7 
Other underwriting expenses.4 — — — — .4 
Cost of sales— — — 40.6 7.5 48.1 
General and administrative expenses50.5 132.2 10.1 12.5 122.5 327.8 
Broker commission expense— 64.8 — — — 64.8 
Change in fair value of contingent
consideration earnout liabilities		— 2.1 — — — 2.1 
Amortization of other intangible assets— 19.4 .2 1.6 .6 21.8 
Interest expense— 16.7 .1 .2 .6 17.6 
Total expenses56.6 235.2 10.4 54.9 131.2 488.3 
Pre-tax income (loss)$10.0 $(2.1)$10.8 $(6.1)$392.5 $405.1 
(1)    BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS.
(2)    Kudu’s results are from April 4, 2019, the date of the Kudu Transaction, to December 31, 2019.
(3)    MediaAlpha’s results are from January 1, 2019 to February 26, 2019, the date of the 2019 MediaAlpha Transaction.
(4)    Approximately 17% of NSM’s commission revenue was associated with one single carrier.
Millions
HG Global/BAM (1)
NSMMediaAlphaOther
Operations		Total
Year Ended December 31, 2018  
Earned insurance premiums$13.9 $— $— $— $13.9 
Net investment income16.7 — — 42.3 59.0 
Net realized and unrealized investment losses(7.5)— — (100.8)(108.3)
Advertising and commission revenues (2)
— 89.6 295.5 4.1 389.2 
Other revenues1.2 12.0 1.6 .5 15.3 
Total revenues24.3 101.6 297.1 (53.9)369.1 
Insurance acquisition expenses5.3 — — — 5.3 
Other underwriting expenses.4 — — — .4 
Cost of sales— — 245.0 3.7 248.7 
General and administrative expenses48.0 59.4 31.7 94.4 233.5 
Broker commission expense— 28.4 — — 28.4 
Change in fair value of contingent
consideration earnout liabilities		— 2.7 — — 2.7 
Amortization of other intangible assets— 8.3 10.3 .2 18.8 
Interest expense — 8.0 1.2 .3 9.5 
Total expenses53.7 106.8 288.2 98.6 547.3 
Pre-tax (loss) income$(29.4)$(5.2)$8.9 $(152.5)$(178.2)
(1)    BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS.
(2)    Approximately 29% of MediaAlpha’s advertising revenue was associated with one customer and approximately 33% of NSM’s commission revenue was associated with one single carrier.

Millions
Selected Balance Sheet Data		HG Global/BAMNSMKuduOther
Operations		Held for SaleTotal
December 31, 2020:  
Total investments$919.9 $— $400.7 $1,618.5 $— $2,939.1 
Total assets$1,017.8 
(1)
$999.6 $430.2 $2,381.5 
(2)
$2.3 $4,831.4 
Total liabilities$291.5 
(2)
$491.8 $96.3 $133.9 $— $1,013.5 
Total White Mountains’s common
shareholders’ equity		$836.1 
(2)
$490.7 $331.6 $2,245.3 
(2)
$2.3 $3,906.0 
Non-controlling interest$(109.8)$17.1 $2.3 $2.3 $— $(88.1)
December 31, 2019:  
Total investments$845.6 $— $266.6 $1,835.0 $— $2,947.2 
Total assets$924.0 
(1)
$825.2 $290.5 $1,940.5 
(2)
$3.0 $3,983.2 
Total liabilities$246.8 
(2)
$401.1 $57.0 $133.6 $— $838.5 
Total White Mountains’s common
shareholders’ equity		$809.5 
(2)
$409.3 $231.3 $1,808.4 
(2)
$3.0 $3,261.5 
Non-controlling interest$(132.3)$14.8 $2.2 $(1.5)$— $(116.8)
(1) As of December 2020 and 2019, total assets in the HG Global/BAM segment reflected the elimination of $388.2 and $457.6 of BAM Surplus Notes issued to HG Global and its subsidiaries, and $155.7 and $162.7 in accrued interest related to the BAM Surplus Notes.
(2) HG Global preferred dividends payable to White Mountains’s subsidiaries is eliminated in White Mountains’s consolidated financial statements. For segment reporting, the HG Global preferred dividends payable to White Mountains’s subsidiaries included within the HG Global/BAM segment are eliminated against the offsetting receivable included within the Other Operations segment and therefore added back to White Mountains’s common shareholders’ equity within the HG Global/BAM segment. As of December 31, 2020 and 2019, the HG Global preferred dividends payable to White Mountains’s subsidiaries was $363.9 and $330.3.
In compliance with ASC 606, Revenues from Contracts with Customers, the following tables present White Mountains’s total revenues by revenue source:

MillionsHG Global/BAMNSMKuduOther
Operations		Total
Year Ended December 31, 2020
Commission and Other Revenue
Specialty Transportation$— $85.5 $— $— $85.5 
Real Estate— 44.9 — — 44.9 
Social Services— 28.9 — — 28.9 
Pet— 55.0 — — 55.0 
United Kingdom— 49.4 — — 49.4 
Other— 21.4 — 8.3 29.7 
Total Commission and Other Revenue— 285.1 — 8.3 293.4 
Products— — — 14.5 14.5 
Total revenues from contracts with customers— 285.1 — 22.8 307.9 
Other revenues (1)
68.5 — 45.7 758.6 872.8 
Total revenues$68.5 $285.1 $45.7 $781.4 $1,180.7 
(1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers.

MillionsHG Global/BAMNSM
Kudu (2)
MediaAlpha (3)
Other
Operations		Total
Year Ended December 31, 2019
Commission and Other Revenue
Specialty Transportation$— $77.6 $— $— $— $77.6 
Real Estate— 34.7 — — — 34.7 
Social Services— 25.9 — — — 25.9 
Pet— 30.0 — — — 30.0 
United Kingdom— 45.9 — — — 45.9 
Other— 19.0 — — 6.9 25.9 
Total Commission and Other Revenue— 233.1 — — 6.9 240.0 
Advertising revenues— — — 48.8 — 48.8 
Products— — — — 5.5 5.5 
Total revenues from contracts with customers— 233.1 — 48.8 12.4 294.3 
Other revenues (1)
66.6 — 21.2 — 511.3 599.1 
Total revenues$66.6 $233.1 $21.2 $48.8 $523.7 $893.4 
(1)    Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers.
(2)    Kudu’s results are from April 4, 2019, the date of the Kudu Transaction, to December 31, 2019.
(3)    MediaAlpha’s results are from January 1, 2019 to February 26, 2019, the date of the 2019 MediaAlpha Transaction.
MillionsHG Global/BAMNSMMediaAlphaOther
Operations		Total
Year Ended December 31, 2018
Commission and Other Revenue
Specialty Transportation$— $28.3 $— $— $28.3 
Real Estate— 17.8 — — 17.8 
Social Services— 14.7 — — 14.7 
United Kingdom— 28.0 — — 28.0 
Other— 12.8 — 4.1 16.9 
Total Commission and Other Revenue— 101.6 — 4.1 105.7 
Advertising revenues— — 295.5 — 295.5 
Total revenues from contracts with customers— 101.6 295.5 4.1 401.2 
Other revenues (1)
24.3 — 1.6 (58.0)(32.1)
Total revenues$24.3 $101.6 $297.1 $(53.9)$369.1 
(1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers.