Held for Sale and Discontinued Operations

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Held for Sale and Discontinued Operations

Sirius Group

As of December 31, 2020, White Mountains recorded a liability of $18.7 million, related to the tax indemnification provided in connection with the sale of Sirius Group in 2016. For the three months ended March 31, 2021, White Mountains recorded a gain of $17.6 million in discontinued operations to reverse the liability accrued as of December 31, 2020 and $1.1 million gain related to foreign currency translation. See Note 18 — “Commitments and Contingencies”.

Other

As of December 31, 2020, assets held for sale included a corporate aircraft with a carrying value of $1.7 million. On February 12, 2021, the corporate aircraft was sold for $2.1 million and White Mountains recorded $0.5 million of realized gains within other revenues in the Other Operations segment.

On April 12, 2021, NSM sold its Fresh Insurance motor business. White Mountains determined that the transaction qualified as a held for sale business in the first quarter 2021, however, it did not meet the criteria to be classified as discontinued operations. In the first quarter of 2021, NSM recorded a loss of $28.7 million related to the sale. As of March 31, 2021, assets held for sale included the net realizable value of Fresh Insurance’s motor business of $1.5 million, which was recorded in other assets in the NSM segment.

Earnings Per Share from Discontinued Operations

White Mountains calculates earnings per share using the two-class method, which allocates earnings between common and unvested restricted common shares. Both classes of shares participate equally in earnings on a per share basis. Basic earnings per share amounts are based on the weighted average number of common shares outstanding adjusted for unvested restricted common shares. Diluted earnings per share amounts are also impacted by the net effect of potentially dilutive common shares outstanding.

The following table presents the Company’s computation of earnings per share for discontinued operations for the three months ended March 31, 2021 and 2020:


	Three Months Ended
	March 31,
		2021		2020
Basic and diluted earnings per share numerators (in millions):
Net loss attributable to White Mountains’s common shareholders		$	(75.3)	$	(128.8)
Less: total loss from continuing operations, net of tax		(94.0)		(129.7)
Net income from discontinued operations attributable to White Mountains’s common shareholders		$	18.7	$	.9
Allocation of earnings to participating restricted common shares (1)		(.2)		—
Basic and diluted earnings per share numerators (2)		$	18.5	$	.9
Basic earnings per share denominators (in thousands):
Total average common shares outstanding during the period		3,100.2		3,178.0
Average unvested restricted common shares (3)		(32.4)		(33.8)
Basic earnings per share denominator		3,067.8		3,144.2
Diluted earnings per share denominator (in thousands):
Total average common shares outstanding during the period		3,100.2		3,178.0
Average unvested restricted common shares (3)		(32.4)		(33.8)

Diluted earnings per share denominator		3,067.8		3,144.2

Basic and diluted (losses) earnings per share (in dollars) - discontinued operations:		$	6.03	$	.28

(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 months ended March 31, 2021 and 2020.

(3) Restricted common shares outstanding vest either in equal annual installments or upon a stated date. See Note 12 — “Employee Share-Based Incentive Compensation Plans”.