0001628280-26-012603
SEC filingWhite Mountains Insurance Group reported strong financial results for fiscal year 2025, driven by a significant gain from the sale of the Bamboo Group. Total revenues were $3.73 billion, a substantial increase from the prior year, with total expenses of $2.41 billion. This resulted in a pre-tax income of $1.33 billion and net income attributable to common shareholders of $1.11 billion. The company's balance sheet remained robust with total assets of $12.31 billion and total equity of $6.12 billion. Operating cash flow was positive at $550.5 million, while investing activities used $666.9 million, primarily for investment purchases and acquisitions. The company ended the year with a cash balance of $255.0 million.
White Mountains Insurance Group delivered exceptional financial performance in FY 2025, with total revenues of $3.73 billion and net income attributable to common shareholders of $1.11 billion. The results were significantly bolstered by an $849.3 million net gain on the sale of the Bamboo Group. The company's book value per share increased to $2,187.97, up 25% for the year including dividends. Comprehensive income attributable to common shareholders was $1.11 billion in 2025, compared to $230 million in 2024. The Ark/WM Outrigger segment reported a combined ratio of 81% and pre-tax income of $310 million. The company maintained a strong balance sheet with total assets of $12.31 billion and total equity of $6.12 billion as of December 31, 2025.
Total revenues of $3.73 billion were driven by multiple sources: earned insurance premiums contributed $1.78 billion, net investment income added $248.0 million, net realized and unrealized investment gains contributed $361.5 million, and commission and fee revenues provided $284.5 million. The significant $849.3 million net gain on the sale of the Bamboo Group was a major contributor to total revenues. By segment, Ark/WM Outrigger generated $1.94 billion in revenues, HG Global contributed $73.6 million, Kudu added $183.4 million, Distinguished provided $57.7 million, and Other Operations contributed $1.23 billion. The company's investment portfolio returned 9.1% for the year, with fixed income investments returning 5.9% and common equity securities returning 10.6%.
The company achieved strong profitability metrics with pre-tax income of $1.33 billion and net income of $1.20 billion. Total expenses were $2.41 billion, consisting primarily of loss and loss adjustment expenses of $882.2 million, general and administrative expenses of $606.6 million, acquisition expenses of $420.2 million, and broker commission expense of $94.1 million. The Ark/WM Outrigger segment maintained a combined ratio of 81%, indicating profitable underwriting operations. The company's investment portfolio generated substantial returns, with the total consolidated portfolio return of 9.1% contributing significantly to overall profitability. Income tax expense was $126.9 million, resulting in an effective tax rate that differed from the U.S. statutory rate due to income generated in jurisdictions with lower tax rates.
Operating activities generated $550.5 million in cash flow, while investing activities used $666.9 million primarily for purchases of fixed maturity investments ($1.24 billion) and other long-term investments ($286.2 million), partially offset by proceeds from asset sales. Financing activities provided $35.6 million, including draw downs of debt and revolving lines of credit of $294.7 million, partially offset by repurchases and retirements of common shares of $202.6 million. The balance sheet shows total assets of $12.31 billion, with total investments of $8.32 billion (including fixed maturity investments of $6.67 billion and other long-term investments of $2.96 billion). Total liabilities were $6.05 billion, primarily consisting of loss and loss adjustment expense reserves of $2.48 billion and debt of $837.0 million. Total equity was $6.12 billion, with common shareholders' equity of $5.43 billion.
The company completed several significant transactions during 2025, including the sale of the Bamboo Group, acquisition of Distinguished, investment in BroadStreet, and acquisition of Enterprise Solutions. White Mountains ended the year with approximately $1.0 billion in undeployed capital, providing flexibility for future investments. The company continues to execute its strategy of making opportunistic and value-oriented acquisitions in the insurance, financial services and related sectors. Management expects to receive additional distributions of reinsurance profits from the 2025 underwriting year in 2026. The company maintains a strong liquidity position with $975 million of net unrestricted cash, short-term investments and fixed maturity investments at the holding company level as of December 31, 2025.