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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2021 and December 31, 2020:

$ in Millions						Weighted Average Economic  Life (in years)						September 30, 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						559.8						—						30.2						529.6						506.4						—						—						506.4
Kudu						N/A						7.6						—						—						7.6						7.6						—						—						7.6
Other Operations						N/A						17.4						—						—						17.4						11.5						—						—						11.5
Total goodwill												701.6						—						30.2						671.4						525.5						—						—						525.5
Other intangible assets:
Ark
Underwriting Capacity						N/A						175.7						—						—						175.7						—						—						—						—
NSM (1)
Customer    relationships						8.9						136.0						50.6						3.5						81.9						136.2						36.7						3.5						96.0
Trade names						16						65.3						10.9						1.0						53.4						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						13.1						—						69.4						82.5						4.9						—						77.6
Other						3.4						1.1						.6						—						.5						1.7						1.0						—						.7
Subtotal												288.0						76.6						6.2						205.2						288.9						52.3						6.2						230.4
Kudu
Trade names						7						2.2						.8						—						1.4						2.2						.6						—						1.6
Other Operations
Trade names						18.1						8.2						1.0						—						7.2						3.6						.3						—						3.3
Customer    relationships						13.3						18.9						3.5						—						15.4						14.2						1.4						—						12.8
Insurance    Licenses						N/A						8.6						—						—						8.6						8.6						—						—						8.6
Other						5.4						.3						.2						—						.1						.3						.1						—						.2
Subtotal												36.0						4.7						—						31.3						26.7						1.8						—						24.9
Total other intangible assets												501.9						82.1						6.2						413.6						317.8						54.7						6.2						256.9
Total goodwill and other    intangible assets												$	1,203.5					$	82.1					$	36.4					1,085.0						$	843.3					$	54.7					6.2						782.4
Goodwill and other intangible assets attributed to non-controlling interests																														(118.0)																								(28.1)
Goodwill and other intangible assets included in White Mountains’s    common shareholders’ equity																														$	967.0																							$	754.3

(1) As of September 30, 2021, NSM’s goodwill and intangible assets included $(2.3) 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 and nine months ended September 30, 2021 and 2020:

						Three Months Ended September 30,
						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						$	629.4					$	414.8					$	1,044.2					$	518.2					$	241.7					$	759.9
Acquisition of businesses						55.7			(1)			—						55.7						14.9			(2)			—						14.9
Attribution of acquisition date fair value    estimates between goodwill and other    intangible assets (3)						(9.3)						9.3						—						—						—						—
Foreign currency translation						(4.0)						(.3)						(4.3)						7.0						(.1)						6.9
Measurement period adjustments (4)						(.4)						—						(.4)						—						—						—
Amortization						—						(10.2)						(10.2)						—						(5.4)						(5.4)
Ending balance						$	671.4					$	413.6					$	1,085.0					$	540.1					$	236.2					$	776.3

(1) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisition of J.C. Taylor had not yet been finalized at September 30, 2021.

(2) The relative fair values of goodwill and other intangible assets recognized in connection with an acquisition within Other Operations had not yet been finalized at September 30, 2020.

(3) Relates to an acquisition within the Other Operations segment.

(4) Measurement period adjustments relate to updated information about acquisition date fair values of assets acquired and liabilities assumed. During the nine months ended September 30, 2021, adjustments relate to an acquisition within the Other Operations segment.

						Nine Months Ended September 30,
						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
Attribution of acquisition date fair value    estimates between goodwill and other    intangible assets (1)						(9.3)						9.3						—						—						—						—
Ark Transaction						116.8						175.7						292.5						—						—						—
Acquisition of businesses						71.5			(2)			—						71.5						140.0			(3)			—						140.0
Foreign currency translation						(2.3)						(.2)						(2.5)						5.2						(.5)						4.7
Impairments						—						—						—						—						(6.2)						(6.2)
Loss on assets held for sale (4)						(30.2)						—						(30.2)						—						—						—
Measurement period adjustments (5)						(.6)						—						(.6)						.2						—						.2
Amortization						—						(28.1)						(28.1)						—						(17.1)						(17.1)
Ending balance						$	671.4					$	413.6					$	1,085.0					$	540.1					$	236.2					$	776.3

(1) Relates to an acquisition within the Other Operations segment.

(2) The relative fair values of goodwill and other intangible assets of $55.7 recognized in connection with the acquisition of J.C. Taylor had not yet been finalized at September 30, 2021. The remaining $15.8 relates to the relative fair values of goodwill and other intangible assets recognized in connection with an acquisition within the Other Operations segment.

(3) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisition of Kingsbridge and an acquisition within Other Operations had not yet been finalized at September 30, 2020.

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

(5) Measurement period adjustments relate to updated information about acquisition date fair values of assets acquired and liabilities assumed. During the nine months ended September 30, 2021, adjustments relate to acquisitions within 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 September 30, 2021:

$ in Millions
Acquisition of subsidiary/ asset						Goodwill and Other intangible asset (1)						Acquisition Date
Kingsbridge						$	131.7					April 7, 2020
J.C. Taylor						55.7						August 6, 2021
Total NSM segment						$	187.4
Ark						$	292.5					January 1, 2021
Other Operations						$	30.6					Various

(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.

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- References

No definition available.

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- Definition

Tabular disclosure of goodwill and intangible assets, which may be broken down by segment or major class.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

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- Definition

Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121647850&loc=d3e4845-128472

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