White Mountains Insurance Group, Ltd. has recently released its 10-K report, providing a detailed overview of its operations and financial performance. The company operates through five segments: HG Global/BAM, Ark, NSM, Kudu, and Other Operations. These segments offer insurance and financial services, including municipal bond insurance, reinsurance, managing general agent and program administrator services, capital solutions, and insurance solutions for the travel industry.
In 2023, White Mountains reported a book value per share of $1,656 and adjusted book value per share of $1,704, marking a 14% increase from the previous year. The company's comprehensive income attributable to common shareholders was $511 million, a decrease from $788 million in 2022. This decline was primarily due to the net gain of $876 million from the NSM Transaction in 2022. Additionally, White Mountains reported $27 million of unrealized investment gains from its investment in MediaAlpha in 2023, compared to $(93) million in 2022.
The HG Global/BAM segment saw gross written premiums and MSC collected totaling $131 million in 2023, compared to $147 million in 2022. BAM insured municipal bonds with a par value of $15.6 billion in 2023, down from $16.0 billion in 2022. Ark's combined ratio remained at 82% in both 2023 and 2022, with the company reporting a pre-tax income of $249 million in 2023, up from $95 million in 2022. WM Outrigger Re reported a combined ratio of 44% in 2023 and made a $130 million redeployment agreement during the fourth quarter of 2023.
Kudu reported total revenues of $177 million, pre-tax income of $137 million, and adjusted EBITDA of $57 million in 2023, compared to total revenues of $119 million, pre-tax income of $89 million, and adjusted EBITDA of $42 million in 2022. White Mountains also disclosed its investment in MediaAlpha, stating that it owned 22.9 million shares, representing a 34.9% basic ownership interest, as of December 31, 2023.
In 2022, White Mountains ended the year with a book value per share of $1,457 and adjusted book value per share of $1,495, marking a 24% and 26% increase, respectively, from the previous year. The company's comprehensive income attributable to common shareholders was $788 million in 2022, a significant improvement from $(273) million in 2021. This improvement was primarily due to the net gain from the NSM Transaction, where White Mountains received $1.4 billion in net cash proceeds at closing and recognized a net gain of $876 million.
The HG Global/BAM segment reported gross written premiums and MSC collected totaling $147 million in 2022, up from $118 million in 2021. BAM insured municipal bonds with a par value of $16.0 billion in 2022, down from $17.5 billion in 2021. Ark's combined ratio was 82% in 2022, down from 87% in 2021, with the company reporting a pre-tax income of $95 million in 2022, up from $53 million in 2021. Kudu reported total revenues of $119 million, pre-tax income of $89 million, and adjusted EBITDA of $42 million in 2022, compared to total revenues of $134 million, pre-tax income of $108 million, and adjusted EBITDA of $33 million in 2021.
The market has reacted to these announcements by moving the company's shares 0.6% to a price of $1782.85. For more information, read the company's full 10-K submission here.
