Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

White Mountains accounts for business combinations using the acquisition method. Under the acquisition method, White Mountains recognizes and measures the assets acquired, liabilities assumed and any noncontrolling interest in the acquired entities at their acquisition date fair values. Goodwill represents the excess of the amount paid to acquire businesses over the fair value of identifiable net assets at the date of acquisition. The estimated acquisition date fair values, generally consisting of intangible assets and liabilities for contingent consideration, may be recorded at provisional amounts in circumstances where the information necessary to complete the acquisition accounting is not available at the reporting date. Any such provisional amounts are finalized as measurement period adjustments within one year of the acquisition date.

The following table presents the economic lives, acquisition date fair values, accumulated amortization and net carrying value for other intangible assets and goodwill as of December 31, 2023 and 2022:


$ in Millions	Weighted Average Economic Life (in years)	December 31, 2023				December 31, 2022
		Acquisition Date Fair Value		Accumulated Amortization		Net Carrying Value		Acquisition Date Fair Value		Accumulated Amortization		Net Carrying Value
Goodwill:
Ark	N/A	$	116.8	$	—	$	116.8	$	116.8	$	—	$	116.8
Kudu	N/A	7.6		—		7.6		7.6		—		7.6


Other Operations	N/A	44.4		—		44.4		52.1		—		52.1
Total goodwill		168.8		—		168.8		176.5		—		176.5
Other intangible assets:
Ark
Underwriting capacity	N/A	175.7		—		175.7		175.7		—		175.7
Kudu
Trade names	7.0	2.2		1.5		.7		2.2		1.2		1.0





Other Operations
Trade names	13.3	13.3		4.1		9.2		17.9		3.0		14.9
Customer relationships	10.9	24.8		10.3		14.5		29.5		7.5		22.0

Other	12.1	2.8		1.1		1.7		2.8		.5		2.3
Subtotal		40.9		15.5		25.4		50.2		11.0		39.2
Total other intangible assets		218.8		17.0		201.8		228.1		12.2		215.9
Total goodwill and other intangible assets		$	387.6	$	17.0	370.6		$	404.6	12.2		392.4

Intangible Assets Valuation Methods

The goodwill recognized for the entities shown above is attributed to expected future cash flows. The acquisition date fair values of other intangible assets with finite lives are estimated using income approach techniques, which use future expected cash flows to develop a discounted present value amount.

The multi-period-excess-earnings method estimates fair value using the present value of the incremental after-tax cash flows attributable solely to the other intangible asset over its remaining life. This approach was used to estimate the fair value of other intangible assets associated with the underwriting capacity and customer relationships.

The relief-from-royalty method was used to estimate fair value for other intangible assets that relate to rights that could be obtained via a license from a third-party owner. Under this method, the fair value is estimated using the present value of license fees avoided by owning rather than leasing the asset. This technique was used to estimate the fair value of trade names, patents and certain information technology platforms.

The with-or-without method estimates the fair value of other intangible assets that provide an incremental benefit. Under this method, the fair value of the other intangible asset is calculated by comparing the value of the entity with and without the other intangible asset. This approach was used to estimate the fair value of non-compete agreements.

On at least an annual basis beginning no later than the interim period included in the one-year anniversary of an acquisition, White Mountains evaluates goodwill and other intangible assets for potential impairment. Between annual evaluations, White Mountains considers changes in circumstances or events subsequent to the most recent evaluation that may indicate that an impairment exists and, if necessary will perform an interim review for potential impairment.

During the year ended December 31, 2023 and 2022, White Mountains did not recognize any impairments to goodwill and other intangible assets.

Rollforward of Goodwill and Other Intangible Asset

The following table presents the change in goodwill and other intangible assets:


	December 31, 2023						December 31, 2022
Millions	Goodwill		Other Intangible Assets		Total Goodwill and Other Intangible Assets		Goodwill		Other Intangible Assets		Total Goodwill and Other Intangible Assets
Beginning balance	$	176.5	$	215.9	$	392.4	$	142.3	$	198.2	$	340.5
Acquisition of businesses (1)	—		—		—		59.5		—		59.5
Disposition of businesses (2)	(6.7)		(6.9)		(13.6)		—		—		—
Attribution of acquisition date fair value estimates between goodwill and other intangible assets	—		—		—		(22.9)		22.9		—
Measurement period adjustments (3)	(1.0)		—		(1.0)		(2.4)		—		(2.4)
Amortization	—		(7.2)		(7.2)		—		(5.2)		(5.2)
Ending balance	$	168.8	$	201.8	$	370.6	$	176.5	$	215.9	$	392.4

(1) Relates to acquisitions within Other Operations.

(2) Relates to a disposition within Other Operations.

(3) Measurement period adjustments relate to updated information about acquisition date fair values of assets acquired and liabilities assumed. Adjustments relate to acquisitions within Other Operations.

During the years ended December 31, 2023 and 2022, White Mountains did not recognize any impairments to goodwill and other intangible assets.

Amortization of Other Intangible Assets

Amortization expense was $7.2 million, $5.2 million and $4.6 million for the years ended December 31, 2023, 2022 and 2021.

White Mountains expects to recognize amortization expense in each of the next five years as presented in the following table:


Millions	Amortization Expense
2024	$	5.5
2025	4.8
2026	4.0
2027	3.6
2028 and years after	8.2
Total (1)	$	26.1

(1) Excludes Ark’s indefinite-lived intangible assets of $175.7.