1. WTM's book value per share rose slightly to $1,752. 2. Ark's gross written premiums jumped 27% year-over-year to $1.1 billion. 3. MediaAlpha's share price fell 18%, impacting WTM's investment. 4. Bamboo doubled its managed premiums, driving positive growth. 5. Comprehensive income dropped significantly compared to the previous year.
Despite some growth in segments, MediaAlpha's decline offsets WTM's overall positive trajectory, leading to market uncertainty similar to previous earnings where investment losses impacted sentiment.
Key segments reported solid performance, but significant unrealized losses influence market perception and investor sentiment.
Investors may react quickly to MediaAlpha's performance; however, strong growth in other segments may cushion downside.
White Mountains Insurance Group, Ltd. (NYSE: WTM) reported book value per share of $1,752 as of March 31, 2025, a slight increase for the first quarter of 2025, including dividends.
Manning Rountree, CEO, commented, "Book value per share ended the quarter at $1,752, up slightly. We had solid operating results and good investment returns, partially offset by the share price decline at MediaAlpha. Ark posted a 94% combined ratio and wrote $1.1 billion of gross written premiums, up 27% year-over-year. HG Global generated $7 million of gross written premiums and grew equity by 3% in the quarter. At Kudu, trailing 12 months EBITDA increased, and the fair value of the portfolio grew 4% on a same store basis. Bamboo delivered another great quarter, doubling managed premiums on a trailing 12 months basis and tripling MGA adjusted EBITDA year-over-year, while also successfully renewing its largest reinsurance program. MediaAlpha's share price declined 18% in the quarter, producing a $37 million mark-to-market loss. Excluding MediaAlpha, the investment portfolio returned 2.3%, with gains in both equities and fixed income. In April, we made new capital deployments into BroadStreet Partners and Enterprise Solutions, our first acquisition at WTM Partners. Including these deployments and expected operating company distributions, undeployed capital now stands at roughly $550 million."
Subsequent to the deconsolidation of BAM on July 1, 2024, the BAM surplus notes are carried at fair value under GAAP, and there is no longer a time value of money adjustment for adjusted book value purposes. As a result of this change, there was only one remaining adjustment to book value: the add back of the unearned premium reserve, net of deferred acquisition costs, at HG Global. Accordingly, White Mountains determined that it will no longer report adjusted book value per share beginning in 2025. The value of the net unearned premium reserve will continue to be disclosed within the HG Global segment reporting.
Comprehensive income attributable to common shareholders was $35 million in the first quarter of 2025 compared to $236 million in the first quarter of 2024. Results in the first quarter of 2025 included $37 million of unrealized investment losses from White Mountains's investment in MediaAlpha compared to $211 million of unrealized investment gains in the first quarter of 2024.
The Ark/WM Outrigger segment's combined ratio was 97% in the first quarter of 2025 compared to 91% in the first quarter of 2024. Ark/WM Outrigger reported gross written premiums of $1,108 million, net written premiums of $728 million and net earned premiums of $358 million in the first quarter of 2025 compared to gross written premiums of $872 million, net written premiums of $598 million and net earned premiums of $303 million in the first quarter of 2024.
Ark's combined ratio was 94% in both the first quarter of 2025 and 2024. Ark's combined ratio included 25 points of catastrophe losses in the first quarter of 2025, driven by losses related to the January 2025 California wildfires of $75 million on a net basis after reinsurance and reinstatement premiums, compared to minimal catastrophe losses in the first quarter of 2024. Ark's combined ratio included 14 points of net favorable prior year development in the first quarter of 2025 compared to slight net favorable prior year development in the first quarter of 2024. Net favorable development for the first quarter of 2025 was driven by the marine & energy and property lines of business.
Ark reported gross written premiums of $1,108 million, net written premiums of $690 million and net earned premiums of $346 million in the first quarter of 2025 compared to gross written premiums of $872 million, net written premiums of $564 million and net earned premiums of $293 million in the first quarter of 2024. Premium growth was driven primarily by property and specialty lines of business.
Ark reported pre-tax income of $52 million in the first quarter of 2025 compared to $33 million in the first quarter of 2024. Ark's results included net realized and unrealized investment gains of $30 million in the first quarter of 2025 compared to $11 million in the first quarter of 2024.