Equity-Method Eligible Investments

12 Months Ended

Dec. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

White Mountains’s equity method eligible investments include White Mountains’s investment in MediaAlpha, certain other unconsolidated entities, including Kudu’s Participation Contracts, private equity funds and hedge funds in which White Mountains has the ability to exert significant influence over the investee’s operating and financial policies.

The following table presents the carrying values of White Mountains’s equity method eligible investments as of December 31, 2020 and 2019:


	December 31,
Millions	2020		2019
Investment in MediaAlpha	$	802.2	$	180.0
Other equity method eligible investments, at fair value	$	698.1	$	581.7

For the years ended December 31, 2020, 2019 and 2018, White Mountains’s received dividend and income distributions from equity method eligible investments, including White Mountains’s investment in MediaAlpha, of $95.0 million, $14.8 million and $3.7 million, which were recorded within net investment income in the consolidated statement of operations.

The following table presents White Mountains’s significant equity method eligible investments as of December 31, 2020 and 2019:


	Basic Ownership Interest
Investee	December 31, 2020	December 31, 2019	Instrument Held
PassportCard/DavidShield	53.8%	50.0%	Common shares
New Market Solutions, LLC.	46.7%	n/a	Units
durchblicker	45.0%	45.0%	Common shares
MediaAlpha (1)	35.0%	48.3%	Common Shares/Units (1)
Elementum Holdings, L.P.	28.9%	30.0%	Limited partnership interest
Compare.com	18.4%	18.4%	Common shares
Tuckerman Capital Funds	14.9 - 62.0%	17.5 - 62.4%	Limited and general partnership interests
JAM Partners L.P.	n/a	11.1%	Limited partnership interest
Enlightenment Capital Funds	9.7- 66.7%	10.0 - 38.4%	Limited and general partnership interests

Kudu’s Participation Contracts	3.2 - 35.0%	3.2 - 30.0%	Revenue and earnings participation contracts

(1) On October 30, 2020, MediaAlpha completed the MediaAlpha IPO. See Note 2 — “Significant Transactions”

The following tables present aggregated summarized financial information for White Mountains’s investments in equity method eligible unconsolidated entities, excluding MediaAlpha:


	December 31,
Millions	2020		2019
Balance sheet data(1):
Total assets	$	1,328.5	$	1,959.2
Total liabilities	$	228.7	$	653.2

(1) Financial data for White Mountains’s equity method eligible investees is generally reported on a one-quarter lag.


	Year Ended December 31,
Millions	2020		2019		2018
Income statement data(1):
Total revenues	$	526.5	$	344.6	$	226.0
Total expenses	$	325.9	$	88.3	$	141.4
Net income (loss)	$	201.7	$	255.1	$	83.6

(1) Financial data for White Mountains’s equity method eligible investees is generally reported on a one-quarter lag.

As a result of the 2019 MediaAlpha Transaction, White Mountains reduced its ownership interest of the basic units outstanding of MediaAlpha from 61.0% to 48.3% (58.9% to 42.0% on a fully diluted, fully converted basis). White Mountains’s remaining ownership interest in MediaAlpha no longer meets the criteria for a controlling ownership interest and, accordingly, White Mountains deconsolidated MediaAlpha as of February 26, 2019. Upon deconsolidation, White Mountains’s investment in MediaAlpha met the criteria to be accounted for under the equity method or under the fair value option. White Mountains elected the fair value option and the investment in MediaAlpha was initially measured at its estimated fair value of $114.7 million as of March 31, 2019, with the change in fair value of $114.7 million recognized as an unrealized investment gain. For the twelve months ended December 31, 2019, White Mountains recognized $180.0 million in unrealized investment gains associated with its investment in MediaAlpha including changes in the fair value of White Mountains’s investment in MediaAlpha subsequent to the 2019 MediaAlpha Transaction.

On October 30, 2020, MediaAlpha completed the MediaAlpha IPO. Following the completion of the MediaAlpha IPO, White Mountains owns 20,532,202 MediaAlpha shares, representing a 35.0% ownership interest (32.3% on a fully-diluted, fully converted basis). At the December 31, 2020 closing price of $39.07 per share, the value of White Mountains’s remaining investment in MediaAlpha was $802.2 million. For the twelve months ended December 31, 2020, White Mountains recognized $686.0 million in realized and unrealized investment gains associated with its investment in MediaAlpha.

White Mountains’s consolidated statement of comprehensive income and its segment disclosures include MediaAlpha’s results of operations for the period from January 1, 2019 through February 26, 2019. See Note 2 — “Significant Transactions”. For the period from February 26, 2019 to December 31, 2019, MediaAlpha was considered a significant subsidiary. For the period from February 26, 2019 to December 31, 2019, MediaAlpha’s total revenues, total expenses, and net income were $359.2 million, $336.3 million, and $22.9 million.

For the twelve months ended December 31, 2020, MediaAlpha was considered a significant subsidiary. The following tables present summarized financial information for MediaAlpha as of December 31, 2020 and 2019 for the twelve months ended December 31, 2020, 2019, and 2018:


	December 31,
Millions	2020		2019 (1)
Balance sheet data:
Total assets	$	212.7	$	105.4
Total liabilities	$	315.8	$	144.9

(1) As of December 31, 2019, MediaAlpha recorded out of period adjustments that (decreased) increased total assets and total liabilities by $(1.5) and $0.3. The adjustments primarily related to MediaAlpha’s accounting for its other intangible assets and debt. White Mountains has evaluated the impact of the adjustments and concluded that they are not material, individually and in the aggregate, to current or prior period financial statements.


	Year Ended December 31,
Millions	2020		2019 (1)		2018 (1)
Income statement data:
Total revenues	$	584.8	$	408.0	$	296.9
Total expenses	$	575.4	$	390.2	$	278.8
Net income (loss)	$	9.4	$	17.8	$	18.1

(1) For the twelve months ended December 31, 2019 and 2018, MediaAlpha recorded out of period adjustments that increased (decreased) total revenues by $0.1 and $(0.2), total expenses by $1.2 and $(9.4) and net income by $(1.1) and $9.2. The adjustments primarily related to MediaAlpha’s accounting for its equity-based compensation and amortization of other intangible assets. White Mountains has evaluated the impact of the adjustments and concluded that they are not material, individually and in the aggregate, to current or prior period financial statements.