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Third-Party Reinsurance (Tables)

3 Months Ended

Mar. 31, 2023

Reinsurance Disclosures [Abstract]

Effects of Reinsurance

The following table summarizes the effects of reinsurance on written and earned premiums and on losses and LAE for the Ark/WM Outrigger segment for the three months ended March 31, 2023 and 2022:

												Three Months Ended March 31,
Millions																		2023						2022
Written premiums:
Direct																		$	246.2					$	230.9
Assumed																		563.2						402.2
Gross written premiums																		809.4						633.1
Ceded																		(195.2)			(1)			(89.3)
Net written premiums																		$	614.2					$	543.8
Earned premiums:
Direct																		$	150.4					$	138.7
Assumed																		162.1						106.6
Gross earned premiums																		312.5						245.3
Ceded																		(57.4)			(2)			(50.9)
Net earned premiums																		$	255.1					$	194.4
Losses and LAE:
Gross																		$	162.4					$	183.1
Ceded																		(14.6)			(3)			(61.1)
Net losses and LAE																		$	147.8					$	122.0

(1) The ceded written premiums exclude $44.1 ceded by Ark to WM Outrigger Re for the three months ended March 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded earned premiums exclude $5.2 ceded by Ark to WM Outrigger Re for the three months ended March 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

(3) The ceded loss and LAE exclude $0.2 ceded by Ark to WM Outrigger Re for the three months ended March 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

The following table presents the Ark/WM Outrigger segment’s reinsurance recoverables as of March 31, 2023 and December 31, 2022:

Millions						March 31, 2023									December 31, 2022
Reinsurance recoverables on unpaid losses						$	348.9		(1)						$	505.0		(3)
Reinsurance recoverables on paid losses						23.1									31.1
Ceded unearned premiums						198.6			(2)						59.2
Reinsurance recoverables						$	570.6								$	595.3

(1) The reinsurance recoverables on unpaid losses exclude $0.2 ceded by Ark to WM Outrigger Re as of March 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded unearned premiums exclude $38.9 ceded by Ark to WM Outrigger Re as of March 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

(3) The reinsurance recoverables on unpaid losses include $145.4 attributable to TPC Providers as of December 31, 2022, which are collateralized.

The following table presents the Ark/WM Outrigger segment’s gross and net reinsurance recoverables by the reinsurer’s A.M. Best Company, Inc (“A.M. Best”) ratings as of March 31, 2023:

$ in Millions						As of March 31, 2023
A.M. Best Rating(1)						Gross						Collateral						Net						% of Total
A+ or better						$	173.8					$	—					$	173.8					64.7		%
A- to A						77.9						—						77.9						29.0
B++ or lower and not rated						120.3						103.2						17.1						6.3
Total						$	372.0					$	103.2					$	268.8					100.0		%

(1) A.M. Best ratings as detailed above are: “A+ or better” (Superior) “A- to A” (Excellent), “B++” (Good).

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- Definition

Tabular disclosure of the effects of reinsurance, for example, but not limited to, disclosure of direct, assumed, and ceded insurance.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6486672&loc=d3e27261-158547

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- References

No definition available.

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