Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following table presents the acquisition date fair values, accumulated amortization and net carrying values for other intangible assets and goodwill, by segment as of March 31, 2021 and December 31, 2020:


$ in Millions	Weighted Average Economic Life (in years)	March 31, 2021								December 31, 2020
		Acquisition Date Fair Value		Accumulated Amortization		Impairments and Amounts Allocated to Held for Sale		Net Carrying Value		Acquisition Date Fair Value		Accumulated Amortization		Impairments		Net Carrying Value
Goodwill:
Ark	N/A	$	116.8	$	—	$	—	$	116.8	$	—	$	—	$	—	$	—
NSM (1)	N/A	507.9		—		30.2		477.7		506.4		—		—		506.4
Kudu	N/A	7.6		—		—		7.6		7.6		—		—		7.6
Other Operations	N/A	11.3		—		—		11.3		11.5		—		—		11.5
Total goodwill		643.6		—		30.2		613.4		525.5		—		—		525.5

Other intangible assets:
Ark
Underwriting Capacity	N/A	175.7		—		—		175.7		—		—		—		—

NSM (1)
Customer relationships	8.9	136.4		41.7		3.5		91.2		136.2		36.7		3.5		96.0
Trade names	16	65.4		9.1		1.0		55.3		65.4		8.3		1.0		56.1
Information technology platform	0	3.1		1.4		1.7		—		3.1		1.4		1.7		—
Renewal rights	12	82.5		7.6		—		74.9		82.5		4.9				77.6
Other	3.4	1.7		1.1		—		.6		1.7		1.0				.7
Subtotal		289.1		60.9		6.2		222.0		288.9		52.3		6.2		230.4

Kudu
Trade names	7	2.2		.7		—		1.5		2.2		.6		—		1.6

Other Operations
Trade names	9.6	3.6		.4		—		3.2		3.6		.3		—		3.3
Customer relationships	10.7	14.2		1.8		—		12.4		14.2		1.4		—		12.8

Insurance Licenses	N/A	8.6		—		—		8.6		8.6		—		—		8.6
Other	5.4	.3		.1		—		.2		.3		.1		—		.2
Subtotal		26.7		2.3		—		24.4		26.7		1.8		—		24.9
Total other intangible assets		493.7		63.9		6.2		423.6		317.8		54.7		6.2		256.9
Total goodwill and other intangible assets		$	1,137.3	$	63.9	$	36.4	1,037.0		$	843.3	$	54.7	6.2		782.4
Goodwill and other intangible assets attributed to non-controlling interests								(108.4)								(28.1)
Goodwill and other intangible assets included in White Mountains’s common shareholders’ equity								$	928.6							$	754.3

(1) As of March 31, 2021, NSM’s goodwill and intangible assets included $1.5 and $0.2 of the effect of foreign currency translation. As of December 31, 2020, NSM’s goodwill and intangible assets included $13.4 and $1.6 of the effect of foreign currency translation.

The following tables present the change in goodwill and other intangible assets for the three months ended March 31, 2021 and 2020:


	Three Months Ended March 31,
	2021						2020
Millions	Goodwill		Other Intangible Assets		Total Goodwill and Other Intangible Assets		Goodwill		Other Intangible Assets		Total Goodwill and Other Intangible Assets
Beginning balance	$	525.5	$	256.9	$	782.4	$	394.7	$	260.0	$	654.7

Ark Transaction	116.8		175.7		292.5		—		—		—

Foreign currency translation	1.5		.2		1.7		(2.5)		(.5)		(3.0)

Loss on assets held for sale (1)	(30.2)		—		(30.2)		—		—		—
Measurement period adjustments (2)	(.2)		—		(.2)		.2		—		.2
Amortization	—		(9.2)		(9.2)		—		(5.1)		(5.1)
Ending balance	$	613.4	$	423.6	$	1,037.0	$	392.4	$	254.4	$	646.8

(1) Relates to the sale of NSM’s Fresh motor business recorded in the first quarter of 2021.This amounts excludes $1.5 of net proceeds related to the sale.

(2) Measurement period adjustments relate to updated information about acquisition date fair values of assets acquired and liabilities assumed. During the three months ended March 31, 2021, adjustments primarily relate to the acquisition in the Other Operations segment.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following presents additional details of the assets acquired and liabilities assumed as of the January 1, 2021 acquisition date:


Millions	As of January 1, 2021
Investments	$	594.3
Cash	52.0		(1)
Reinsurance recoverables	433.4
Insurance premiums receivable	236.7
Ceded unearned premiums	170.2
Value of in-force business acquired	71.7
Other assets	88.9
Loss and loss adjustment expense reserves	(696.0)
Unearned insurance premiums	(326.1)
Debt	(46.4)

Ceded reinsurance payable	(528.3)
Other liabilities	(25.9)
Net tangible assets acquired	24.5
Goodwill	116.8
Other intangible assets - syndicate underwriting capacity	175.7
Deferred tax liability on other intangible assets	(33.4)
Net assets acquired	$	283.6

(1) Cash excludes the White Mountains cash contribution of $605.4 as part of the Ark transaction.

The following table presents a summary of the acquisition date fair values of goodwill and other intangible assets for

acquisitions completed from January 1, 2020 through March 31, 2021:

$ in Millions

Acquisition of subsidiary/ asset

Goodwill and

Other intangible asset (1)

Acquisition Date

Kingsbridge

131.7

April 7, 2020

Ark

292.5

January 1, 2021

Other Operations

15.2

July 2, 2020

(1) Acquisition date fair values include the effect of adjustments during the measurement period and excludes the effect of foreign currency translation subsequent to the acquisition date.