Equity-Method Eligible Investments

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 and December 31, 2020:


Millions	March 31, 2021		December 31, 2020
Investment in MediaAlpha	$	600.2	$	802.2

Other equity method eligible investments, at fair value	$	706.2	$	698.1

For the three months ended March 31, 2021 and 2020, White Mountains’s received dividend and income distributions from equity method eligible investments, including White Mountains’s investment in MediaAlpha, of $13.7 million, and $11.4 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 March 31, 2021 and December 31, 2020:


	Basic Ownership Interest
Investee	March 31, 2021	December 31, 2020	Instrument Held
PassportCard/DavidShield	53.8%	53.8%	Common shares
New Market Solutions, LLC.	46.7%	46.7%	Units
durchblicker	45.0%	45.0%	Common shares
MediaAlpha	28.5%	35.0%	Common shares
Elementum Holdings, L.P.	29.7%	28.9%	Limited partnership interest
Compare.com	18.4%	18.4%	Common shares
Tuckerman Capital Funds	16.1 - 30.0%	14.9 - 62.0%	Limited and general partnership interests
Enlightenment Capital Funds	9.1 - 66.3%	9.7 - 66.7%	Limited and general partnership interests
Kudu Participation Contracts	3.2 - 35.6%	3.2 - 35.0%	Revenue and earnings participation contracts

On October 30, 2020, MediaAlpha completed the MediaAlpha IPO. In the offering, White Mountains sold 3.6 million shares at $19.00 per share ($17.67 per share net of underwriting discount) and received total proceeds of $63.8 million. White Mountains also received $55.0 million of net proceeds related to a dividend recapitalization at MediaAlpha. Following the MediaAlpha IPO, White Mountains owned 20.5 million 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 fair value of White Mountains’s remaining investment in MediaAlpha was $802.2 million. Subsequent to the MediaAlpha IPO, White Mountains’s investment in MediaAlpha is accounted for at fair value based on the publicly traded share price of MediaAlpha’s common stock and White Mountains presents its investment in MediaAlpha as a separate line item on the balance sheet.

On March 23, 2021, MediaAlpha completed a secondary offering of 8.05 million shares. In the secondary offering, White Mountains sold 3.6 million shares at $46.00 per share ($44.62 per share net of underwriting fees) for net proceeds of $160.3 million. Following the completion of the offering, White Mountains owns 16.9 million shares, representing a 28.5% basic ownership interest (26.3% fully-diluted/fully-converted basis). At the March 31, 2021, closing price of $35.43 per share, the fair value of White Mountains’s remaining investment in MediaAlpha was $600.2 million. For the three months ended March 31, 2021, White Mountains recognized $41.7 million in realized and unrealized investment losses associated with its investment in MediaAlpha.

For the three months ended March 31, 2021 and 2020, MediaAlpha was considered a significant subsidiary. The following tables present summarized financial information for MediaAlpha as of March 31, 2021 and 2020:


Millions	March 31, 2021		December 31, 2020
Balance sheet data:
Total assets	$	241.7	$	212.7
Total liabilities	$	331.1	$	315.8


	Three Months Ended
	March 31,
Millions	2021		2020
Income statement data:
Total revenues	$	173.6	$	119.4
Total expenses	$	173.4	$	110.6
Net income	$	.2	$	8.8