Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-8993 | |
Entity Registrant Name | WHITE MOUNTAINS INSURANCE GROUP, LTD | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 94-2708455 | |
Entity Address, Address Line One | 23 South Main Street, Suite 3B | |
Entity Address, Postal Zip Code | 03755-2053 | |
Entity Address, City or Town | Hanover, | |
Entity Address, State or Province | NH | |
City Area Code | 603 | |
Local Phone Number | 640-2200 | |
Title of 12(b) Security | Common Shares, par value $1.00 | |
Trading Symbol | WTM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,102,011 | |
Entity Central Index Key | 0000776867 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Investments | ||
Other long-term investments | $ 1,171.2 | $ 856.3 |
Goodwill and other intangible assets | 776.3 | 654.7 |
Total assets | 4,383.4 | 3,983.2 |
Liabilities | ||
Debt | 359.4 | 283.5 |
Total liabilities | 1,074.2 | 838.5 |
White Mountains’s common shareholders’ equity | ||
White Mountains’s common shares at $1 par value per share—authorized 50,000,000 shares; issued and outstanding 3,102,011 and 3,185,353 shares and paid-in surplus | 592.1 | 596.3 |
Retained earnings | 2,822.1 | 2,672.4 |
Accumulated other comprehensive loss, after-tax: | ||
Net unrealized foreign currency translation and interest rate swap losses | (6.5) | (7.2) |
Total White Mountains’s common shareholders’ equity | 3,407.7 | 3,261.5 |
Non-controlling interests | (98.5) | (116.8) |
Total equity | 3,309.2 | 3,144.7 |
Total liabilities and equity | 4,383.4 | 3,983.2 |
Financial Guarantee (HG Global/BAM) | ||
Investments | ||
Fixed maturity investments, at fair value | 831.8 | 799.3 |
Short-term investments, at fair value | 56.1 | 46.3 |
Total investments | 887.9 | 845.6 |
Cash | 49.9 | 24.2 |
Insurance premiums receivable | 7.2 | 6.7 |
Deferred acquisition costs | 26.1 | 22.1 |
Accrued investment income | 5.2 | 5.4 |
Accounts receivable on unsettled investment sales | 0 | 3.9 |
Other assets | 15 | 16.1 |
Total assets | 991.3 | 924 |
Liabilities | ||
Unearned insurance premiums | 226.9 | 198.4 |
Accrued incentive compensation | 19.4 | 21.7 |
Accounts payable on unsettled investment purchases | 6.4 | 0 |
Other liabilities | 27.8 | 26.7 |
Total liabilities | 280.5 | 246.8 |
Specialty Insurance Distribution (NSM) | ||
Investments | ||
Cash | 125 | 89.7 |
Premiums and commissions receivable | 67.7 | 70.8 |
Goodwill and other intangible assets | 730.3 | 623 |
Other assets | 57.2 | 41.7 |
Total assets | 980.2 | 825.2 |
Liabilities | ||
Debt | 270.2 | 219.2 |
Premiums payable | 116.9 | 102.3 |
Contingent consideration earnout liabilities | 11.8 | 20.6 |
Other liabilities | 77.5 | 59 |
Total liabilities | 476.4 | 401.1 |
Asset Management (Kudu) | ||
Investments | ||
Short-term investments, at fair value | 0.1 | 0.1 |
Other long-term investments | 325.5 | 266.5 |
Total investments | 325.6 | 266.6 |
Cash | 8.4 | 5.8 |
Accrued investment income | 6.2 | 5.8 |
Goodwill and other intangible assets | 9.3 | 9.6 |
Other assets | 2.4 | 2.7 |
Total assets | 351.9 | 290.5 |
Liabilities | ||
Debt | 71 | 53.6 |
Other liabilities | 10.2 | 3.4 |
Total liabilities | 81.2 | 57 |
Other Operations | ||
Investments | ||
Fixed maturity investments, at fair value | 389.7 | 406.5 |
Short-term investments, at fair value | 515.6 | 154.8 |
Common equity securities, at fair value | 140.7 | 683.9 |
Other long-term investments | 845.7 | 589.8 |
Total investments | 1,891.7 | 1,835 |
Cash | 31.5 | 41.3 |
Accrued investment income | 2.8 | 5.7 |
Accounts receivable on unsettled investment sales | 54.7 | 5.1 |
Goodwill and other intangible assets | 36.7 | 22.1 |
Other assets | 41.9 | 31.3 |
Assets held for sale | 0.7 | 3 |
Total assets | 2,060 | 1,943.5 |
Liabilities | ||
Debt | 18.2 | 10.7 |
Accrued incentive compensation | 41.9 | 55.1 |
Other liabilities | 176 | 67.8 |
Total liabilities | $ 236.1 | $ 133.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Common shares, par value per share (in dollars per share) | $ 1 | $ 1 |
Common shares, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common shares, issued shares (in shares) | 3,102,011 | 3,185,353 |
Common shares, outstanding shares (in shares) | 3,102,011 | 3,185,353 |
Specialty Insurance Distribution (NSM) | ||
Restricted cash | $ 82.9 | $ 56.3 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Earned insurance premiums | $ 6.2 | $ 5.2 | $ 17.2 | $ 13.7 |
Net investment income | 71.2 | 18.4 | 113.7 | 55.4 |
Net realized and unrealized investment gains | 306.6 | 67 | 302.8 | 233.1 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 182.2 | |||
Advertising and commission revenues | 60.3 | 51.3 | 180.3 | 200.9 |
Other revenues | 15.2 | 13.6 | 45.9 | 32.8 |
Total revenues | 459.5 | 155.5 | 659.9 | 718.1 |
Expenses: | ||||
Insurance acquisition expenses | 1.6 | 1.4 | 5.4 | 4.1 |
Other underwriting expenses | 0.1 | 0.1 | 0.3 | 0.3 |
Cost of sales | 2.3 | 2.3 | 6.5 | 45.6 |
General and administrative expenses | 103.3 | 78 | 266.7 | 236.9 |
Broker commission expenses | 17.1 | 15.3 | 56.4 | 48.9 |
Change in fair value of contingent consideration earnout liabilities | 0.7 | (2) | (1.6) | 5.6 |
Amortization of other intangible assets | 5.4 | 4.6 | 17.1 | 15.4 |
Interest expense | 7.8 | 4.7 | 21.2 | 12.7 |
Total expenses | 138.3 | 104.4 | 372 | 369.5 |
Pre-tax income (loss) from continuing operations | 321.2 | 51.1 | 287.9 | 348.6 |
Income tax expense | (98.5) | (8.8) | (97.1) | (18.9) |
Net income from continuing operations | 222.7 | 42.3 | 190.8 | 329.7 |
Net (loss) income from sale of discontinued operations, net of tax | (0.7) | 0.9 | (0.8) | 1.6 |
Net income | 222 | 43.2 | 190 | 331.3 |
Net loss attributable to non-controlling interests | 10.9 | 5.5 | 29.5 | 22.3 |
Net income attributable to White Mountains’s common shareholders | 232.9 | 48.7 | 219.5 | 353.6 |
Financial Guarantee (HG Global/BAM) | ||||
Revenues: | ||||
Earned insurance premiums | 6.2 | 5.2 | 17.2 | 13.7 |
Net investment income | 4.7 | 5.4 | 15.1 | 16.1 |
Net realized and unrealized investment gains | 3.2 | 7.1 | 23.7 | 30.4 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | |||
Advertising and commission revenues | 0 | 0 | 0 | 0 |
Other revenues | 0.4 | 0.3 | 2.1 | 1.3 |
Total revenues | 14.5 | 18 | 58.1 | 61.5 |
Expenses: | ||||
Insurance acquisition expenses | 1.6 | 1.4 | 5.4 | 4.1 |
Other underwriting expenses | 0.1 | 0.1 | 0.3 | 0.3 |
Cost of sales | 0 | 0 | 0 | 0 |
General and administrative expenses | 13.9 | 12.5 | 41.1 | 39.1 |
Broker commission expenses | 0 | 0 | 0 | 0 |
Change in fair value of contingent consideration earnout liabilities | 0 | 0 | 0 | 0 |
Amortization of other intangible assets | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Total expenses | 15.6 | 14 | 46.8 | 43.5 |
Pre-tax income (loss) from continuing operations | (1.1) | 4 | 11.3 | 18 |
Specialty Insurance Distribution (NSM) | ||||
Revenues: | ||||
Earned insurance premiums | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Net realized and unrealized investment gains | 0 | 0 | 0 | 0 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | |||
Advertising and commission revenues | 58.2 | 49.4 | 174.2 | 147.6 |
Other revenues | 12.5 | 10.5 | 37.6 | 27.7 |
Total revenues | 70.7 | 59.9 | 211.8 | 175.3 |
Expenses: | ||||
Insurance acquisition expenses | 0 | 0 | 0 | |
Other underwriting expenses | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
General and administrative expenses | 42.9 | 33.3 | 131 | 91.4 |
Broker commission expenses | 17.1 | 15.3 | 56.4 | 48.9 |
Change in fair value of contingent consideration earnout liabilities | 0.7 | (2) | (1.6) | 5.6 |
Amortization of other intangible assets | 5.1 | 4.4 | 16.2 | 13.5 |
Interest expense | 6.1 | 4.4 | 16.1 | 12.2 |
Total expenses | 71.9 | 55.4 | 218.1 | 171.6 |
Pre-tax income (loss) from continuing operations | (1.2) | 4.5 | (6.3) | 3.7 |
Asset Management (Kudu) | ||||
Revenues: | ||||
Earned insurance premiums | 0 | 0 | 0 | 0 |
Net investment income | 6.4 | 4.6 | 19.3 | 8.6 |
Net realized and unrealized investment gains | 9.8 | 2.7 | 1.5 | 3.1 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | |||
Advertising and commission revenues | 0 | 0 | 0 | 0 |
Other revenues | 0.1 | 0.2 | 0.2 | 0.2 |
Total revenues | 16.3 | 7.5 | 21 | 11.9 |
Expenses: | ||||
Insurance acquisition expenses | 0 | 0 | 0 | 0 |
Other underwriting expenses | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
General and administrative expenses | 2.2 | 4.5 | 7.5 | 6.7 |
Broker commission expenses | 0 | 0 | 0 | 0 |
Change in fair value of contingent consideration earnout liabilities | 0 | 0 | 0 | 0 |
Amortization of other intangible assets | 0.1 | 0.2 | 0.3 | 0.2 |
Interest expense | 1.4 | 0 | 4.3 | 0 |
Total expenses | 3.7 | 4.7 | 12.1 | 6.9 |
Pre-tax income (loss) from continuing operations | 12.6 | 2.8 | 8.9 | 5 |
Marketing Technology (MediaAlpha) | ||||
Revenues: | ||||
Earned insurance premiums | 0 | |||
Net investment income | 0 | |||
Net realized and unrealized investment gains | 0 | |||
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | |||
Advertising and commission revenues | 0 | 0 | 0 | 48.8 |
Other revenues | 0 | |||
Total revenues | 0 | 0 | 0 | 48.8 |
Expenses: | ||||
Insurance acquisition expenses | 0 | |||
Other underwriting expenses | 0 | |||
Cost of sales | 0 | 0 | 0 | 40.6 |
General and administrative expenses | 0 | 0 | 0 | 12.5 |
Broker commission expenses | 0 | |||
Change in fair value of contingent consideration earnout liabilities | 0 | |||
Amortization of other intangible assets | 0 | 0 | 0 | 1.6 |
Interest expense | 0 | 0 | 0 | 0.2 |
Total expenses | 0 | 0 | 0 | 54.9 |
Pre-tax income (loss) from continuing operations | (6.1) | |||
Other Operations | ||||
Revenues: | ||||
Earned insurance premiums | 0 | 0 | 0 | 0 |
Net investment income | 60.1 | 8.4 | 79.3 | 30.7 |
Net realized and unrealized investment gains | 293.6 | 57.2 | 277.6 | 199.6 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | 0 | 0 | 182.2 |
Advertising and commission revenues | 2.1 | 1.9 | 6.1 | 4.5 |
Other revenues | 2.2 | 2.6 | 6 | 3.6 |
Total revenues | 358 | 70.1 | 369 | 420.6 |
Expenses: | ||||
Insurance acquisition expenses | 0 | 0 | 0 | 0 |
Other underwriting expenses | 0 | 0 | 0 | 0 |
Cost of sales | 2.3 | 2.3 | 6.5 | 5 |
General and administrative expenses | 44.3 | 27.7 | 87.1 | 87.2 |
Broker commission expenses | 0 | 0 | 0 | 0 |
Change in fair value of contingent consideration earnout liabilities | 0 | 0 | 0 | 0 |
Amortization of other intangible assets | 0.2 | 0 | 0.6 | 0.1 |
Interest expense | 0.3 | 0.3 | 0.8 | 0.3 |
Total expenses | 47.1 | 30.3 | 95 | 92.6 |
Pre-tax income (loss) from continuing operations | $ 310.9 | $ 39.8 | $ 274 | $ 328 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to White Mountains’s common shareholders | $ 232.9 | $ 48.7 | $ 219.5 | $ 353.6 |
Other comprehensive income (loss), net of tax | 3.9 | (2.4) | 1 | (5.8) |
Comprehensive income | 236.8 | 46.3 | 220.5 | 347.8 |
Other Comprehensive (income) loss attributable to non-controlling interests | (0.1) | 0.1 | (0.3) | 0.3 |
Comprehensive income attributable to White Mountains’s common shareholders | $ 236.7 | $ 46.4 | $ 220.2 | $ 348.1 |
Basic earnings (loss) per share | ||||
Continuing operations (in usd per share) | $ 75.32 | $ 15.01 | $ 70.40 | $ 110.67 |
Discontinued operations (in usd per share) | (0.23) | 0.28 | (0.26) | 0.50 |
Total consolidated operations (in usd per share) | 75.09 | 15.29 | 70.14 | 111.17 |
Diluted earnings (loss) per share | ||||
Continuing operations (in usd per share) | 75.32 | 15.01 | 70.40 | 110.67 |
Discontinued operations (in usd per share) | (0.23) | 0.28 | (0.26) | 0.50 |
Total consolidated operations (in usd per share) | 75.09 | 15.29 | 70.14 | 111.17 |
Dividends declared per White Mountains’s common share (in USD per share) | $ 0 | $ 0 | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common shares and paid-in surplus | Retained earnings | AOCI, after tax | Total | Non-controlling interest | Total Equity | BAM | BAMNon-controlling interest | Marketing Technology (MediaAlpha) | Marketing Technology (MediaAlpha)Non-controlling interest |
Beginning Balances at Dec. 31, 2018 | $ 2,718.2 | $ 584 | $ 2,264.9 | $ (5.8) | $ 2,843.1 | $ (124.9) | |||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net income | 331.3 | 353.6 | 353.6 | (22.3) | |||||||
Net change in foreign currency translation and other | (5.8) | (5.5) | (5.5) | (0.3) | |||||||
Total comprehensive income (loss) | 347.8 | 353.6 | (5.5) | 348.1 | (22.6) | $ 325.5 | |||||
Dividends declared on common shares | (3.2) | (3.2) | (3.2) | ||||||||
Dividends to non-controlling interests | (1.6) | (1.6) | |||||||||
Repurchases and retirements of common shares | (4.9) | (1.1) | (3.8) | (4.9) | |||||||
Issuances of common shares | 2.2 | 2.2 | 2.2 | ||||||||
Capital contributions from BAM members, net of tax | $ 36.3 | $ 36.3 | |||||||||
Net contributions and dilution from other non-controlling interests | 2.3 | 2.3 | |||||||||
Amortization of restricted share awards | 7.8 | 7.8 | 7.8 | ||||||||
Acquisition of non-controlling interests | 1.8 | 1.8 | |||||||||
Effect of deconsolidation of MediaAlpha | $ (13.8) | $ (13.8) | |||||||||
Recognition of equity-based compensation expense of subsidiary | 0.3 | 0.3 | 0.3 | ||||||||
Ending Balances at Sep. 30, 2019 | 3,070.9 | 593.2 | 2,611.5 | (11.3) | 3,193.4 | (122.5) | |||||
Beginning Balances at Jun. 30, 2019 | 3,007.9 | 590.5 | 2,562.8 | (9) | 3,144.3 | (136.4) | |||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net income | 43.2 | 48.7 | 48.7 | (5.5) | |||||||
Net change in foreign currency translation and other | (2.4) | (2.3) | (2.3) | (0.1) | |||||||
Total comprehensive income (loss) | 46.3 | 48.7 | (2.3) | 46.4 | (5.6) | 40.8 | |||||
Dividends to non-controlling interests | (0.6) | (0.6) | |||||||||
Capital contributions from BAM members, net of tax | 19.3 | 19.3 | |||||||||
Net contributions and dilution from other non-controlling interests | 0.8 | 0.8 | |||||||||
Amortization of restricted share awards | 2.7 | 2.7 | 2.7 | ||||||||
Ending Balances at Sep. 30, 2019 | 3,070.9 | 593.2 | 2,611.5 | (11.3) | 3,193.4 | (122.5) | |||||
Beginning Balances at Dec. 31, 2019 | 3,144.7 | 596.3 | 2,672.4 | (7.2) | 3,261.5 | (116.8) | |||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net income | 190 | 219.5 | 219.5 | (29.5) | |||||||
Net change in foreign currency translation and other | 1 | 0.7 | 0.7 | 0.3 | |||||||
Total comprehensive income (loss) | 220.5 | 219.5 | 0.7 | 220.2 | (29.2) | 191 | |||||
Dividends declared on common shares | (3.2) | (3.2) | (3.2) | ||||||||
Dividends to non-controlling interests | (2.3) | (2.3) | |||||||||
Repurchases and retirements of common shares | (85.2) | (18.6) | (66.6) | (85.2) | |||||||
Issuances of common shares | 1.5 | 1.5 | 1.5 | ||||||||
Capital contributions from BAM members, net of tax | 46.9 | 46.9 | |||||||||
Net contributions and dilution from other non-controlling interests | 1.7 | (0.4) | (0.4) | 2.1 | |||||||
Amortization of restricted share awards | 12.3 | 12.3 | 12.3 | ||||||||
Acquisition of non-controlling interests | 0.8 | 0.8 | |||||||||
Recognition of equity-based compensation expense of subsidiary | 1 | 1 | 1 | ||||||||
Ending Balances at Sep. 30, 2020 | 3,309.2 | 592.1 | 2,822.1 | (6.5) | 3,407.7 | (98.5) | |||||
Beginning Balances at Jun. 30, 2020 | 3,063.3 | 587 | 2,589.3 | (10.3) | 3,166 | (102.7) | |||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net income | 222 | 232.9 | 232.9 | (10.9) | |||||||
Net change in foreign currency translation and other | 4 | 3.8 | 3.8 | 0.2 | |||||||
Total comprehensive income (loss) | 236.8 | 232.9 | 3.8 | 236.7 | (10.7) | $ 226 | |||||
Dividends to non-controlling interests | (0.9) | (0.9) | |||||||||
Repurchases and retirements of common shares | (0.1) | (0.1) | (0.1) | ||||||||
Issuances of common shares | 0.2 | 0.2 | 0.2 | 0 | |||||||
Capital contributions from BAM members, net of tax | $ 15.4 | $ 15.4 | |||||||||
Net contributions and dilution from other non-controlling interests | (0.1) | 0.3 | 0.3 | (0.4) | |||||||
Amortization of restricted share awards | 3.6 | 3.6 | 3.6 | ||||||||
Acquisition of non-controlling interests | 0.8 | 0.8 | |||||||||
Recognition of equity-based compensation expense of subsidiary | 1 | 1 | 1 | ||||||||
Ending Balances at Sep. 30, 2020 | $ 3,309.2 | $ 592.1 | $ 2,822.1 | $ (6.5) | $ 3,407.7 | $ (98.5) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operations: | ||
Net income | $ 190 | $ 331.3 |
Adjustments to reconcile net income to net cash used for operations: | ||
Net realized and unrealized investment gains | (302.8) | (347.8) |
Realized gain from the MediaAlpha Transaction | 0 | (67.5) |
Deferred income tax expense | 87.9 | 11.4 |
Net gain from sale of discontinued operations, net of tax | 0.8 | (1.6) |
Amortization of restricted share and option awards | 12.2 | 8.3 |
Amortization and depreciation | 27.2 | 19.8 |
Other operating items: | ||
Net change in premiums and commissions receivable | 6 | (9.4) |
Net change in premiums payable | 5.3 | 15.4 |
Net change in unearned insurance premiums | 28.6 | 27.5 |
Net change in deferred acquisition costs | (4) | (2.4) |
Net change in restricted cash | 26.6 | 17 |
Investments in Kudu Participation Contracts | (57.5) | (74.4) |
Net change in other assets and liabilities, net | (8.1) | (0.1) |
Net cash provided from (used for) operations | 12.2 | (72.5) |
Cash flows from investing activities: | ||
Net change in short-term investments | (370.3) | (54.5) |
Sales of fixed maturity and convertible investments | 293.2 | 292.6 |
Maturities, calls and paydowns of fixed maturity and convertible investments | 135.2 | 92.7 |
Sales of common equity securities | 582.9 | 442.1 |
Distributions and redemptions of other long-term investments and settlements of forward contracts | 64.5 | 28.7 |
Purchases of other long-term investments | (61) | (173) |
Purchases of common equity securities | (33.8) | (4.8) |
Purchases of fixed maturity and convertible investments | (411.3) | (428) |
Purchases of consolidated subsidiaries, net of cash acquired of $13.4 and $12.8 | (129.4) | (243.4) |
Other investing activities, net | (42) | (12.9) |
Net cash provided from (used for) investing activities | 28 | (60.5) |
Cash flows from financing activities: | ||
Draw down of debt and revolving line of credit | 69.4 | 149.4 |
Repayment of debt and revolving line of credit | (2.7) | (22.2) |
Cash dividends paid to the Company’s common shareholders | (3.2) | (3.2) |
Common shares repurchased | (78.5) | 0 |
Distribution to non-controlling interest shareholders | (1.2) | (27.7) |
Payments on contingent consideration earnout liabilities | (7) | (2.6) |
Repurchase of shares from non-controlling interest shareholders | 0 | (21.1) |
Proceeds from issuance of shares to non-controlling interest shareholders | 0 | 62.7 |
Capital contributions to non-controlling interest shareholders | 2.2 | 1.6 |
Capital contributions from BAM members | 46.9 | 42.9 |
Fidus Re premium payment | (2.3) | (2.2) |
Other financing activities, net | (9.8) | (4.9) |
Net cash provided from financing activities | 13.8 | 172.7 |
Effect of exchange rate changes on cash | (0.2) | (0.8) |
Net change in cash during the period - continuing operations, including the effect of exchange rate changes | 53.8 | 38.9 |
Cash balances at beginning of period (includes restricted cash balances of $56.3 and $50.0) | 161 | 110.3 |
Cash balances at end of period (includes restricted cash balances of $82.9 and $67.0) | 214.8 | 149.2 |
Supplemental cash flows information: | ||
Interest paid | (11.4) | (11.7) |
Net income tax payments | $ (0.1) | $ (0.3) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||||
Restricted cash balance | $ 82.9 | $ 67 | $ 56.3 | $ 50 |
Cash acquired from acquisition | $ 13.4 | $ 12.8 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The Company is an exempted Bermuda limited liability company whose principal businesses are conducted through its subsidiaries and other affiliates. The Company’s headquarters is located at 26 Reid Street, Hamilton, Bermuda HM 11, its principal executive office is located at 23 South Main Street, Hanover, New Hampshire 03755-2053 and its registered office is located at Clarendon House, 2 Church Street, Hamilton, Bermuda HM 11. The Company’s website is located at www.whitemountains.com. The information contained on White Mountains’s website is not incorporated by reference into, and is not a part of, this report. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of White Mountains Insurance Group, Ltd. (the “Company” or the “Registrant”), its subsidiaries (collectively with the Company, “White Mountains”) and other entities required to be consolidated under GAAP. Consolidation Principles Under GAAP, the Company is required to consolidate any entity in which it holds a controlling financial interest. A controlling financial interest is usually in the form of an investment representing the majority of the subsidiary’s voting interests. However, a controlling financial interest may also arise from a financial interest in a variable interest entity (“VIE”) through arrangements that do not involve ownership of voting interests. The Company consolidates a VIE if it determines that it is the primary beneficiary. The primary beneficiary is defined as the entity who holds a variable interest that gives it both the power to direct the VIE’s activities that most significantly impact its economic performance and the obligation to absorb losses of, or the right to receive returns from, the VIE that could potentially be significant to the VIE. Intercompany transactions have been eliminated in consolidation. These interim financial statements include all adjustments considered necessary by management to fairly state the financial position, results of operations and cash flows of White Mountains. These interim financial statements may not be indicative of financial results for the full year and should be read in conjunction with the Company’s 2019 Annual Report on Form 10-K. Business Combinations White Mountains accounts for purchases of businesses using the acquisition method, which requires the measurement of assets acquired, including goodwill and other intangible assets, and liabilities assumed, including contingent liabilities, at their estimated fair values as of the acquisition date. The acquisition date fair values represent management’s best estimates and are based upon established valuation techniques, reasonable assumptions and, where appropriate, valuations performed by independent third parties. In circumstances where additional information is required in order to determine the acquisition date fair value of balance sheet amounts, provisional amounts may be recorded as of the acquisition date and may be subject to subsequent adjustment throughout the measurement period, which is up to one year from the acquisition date. Measurement period adjustments are recognized in the period in which they are determined. The results of operations and cash flows of businesses acquired are included in the consolidated financial statements from the date of acquisition. White Mountains accounts for purchases of other intangible assets that do not meet the definition of a business as asset acquisitions. Asset acquisitions are recognized at the amount of consideration paid, which is deemed to equal fair value. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the third quarter of 2020, White Mountains changed the method used to value its investment in MediaAlpha from a discounted cash flow analysis to a probability-weighted expected return method ("PWERM"). Under the PWERM, MediaAlpha’s valuation is based on the probability-weighted present value of expected future equity values under two possible future scenarios: (i) an initial public offering (“IPO”) or (ii) remaining a private company. To determine the equity value in the IPO scenario, the value of the company was calculated using forward market multiples derived from a range of relevant companies and applied to MediaAlpha’s projected financial metrics. To determine the equity value in the remaining a private company scenario, the value of the company was calculated using a discounted cash flow model. The discounted cash flow model includes key inputs such as projections of future revenues and earnings, a discount rate and a terminal revenue growth rate. The expected future cash flows are based on management judgment, considering current performance, budgets and projected future results. The discount rates reflect MediaAlpha’s weighted average cost of capital considering comparable public company data, adjusted for risks specific to the business and industry. The terminal revenue growth rate is based on company, industry and macroeconomic expectations of perpetual revenue growth subsequent to the end of the discrete period in the discounted cash flow analysis. Reportable Segments White Mountains has determined its reportable segments based on the nature of the underlying businesses, the manner in which the Company’s subsidiaries and affiliates are organized and managed and the organization of the financial information provided to the chief operating decision maker to assess performance and make decisions regarding allocation of resources. As of September 30, 2020 , White Mountains’s reportable segments were HG Global/BAM, NSM, Kudu and Other Operations. On February 26, 2019, MediaAlpha completed the sale of a significant minority stake to Insignia Capital Group in connection with a recapitalization and cash distribution to existing equityholders (the “MediaAlpha Transaction”). White Mountains deconsolidated MediaAlpha as a result of the MediaAlpha Transaction, and consequently it was no longer a reportable segment. White Mountains’s consolidated statement of comprehensive income and its segment disclosures include MediaAlpha’s results of operations through the date of the MediaAlpha Transaction. See Note 2 — “Significant Transactions” and Note 13 — “Segment Information” . The HG Global/BAM segment consists of HG Global Ltd. and its wholly-owned subsidiaries (“HG Global”) and the consolidated results of Build America Mutual Assurance Company (“BAM”) (collectively, “HG Global/BAM”). BAM is the first and only mutual municipal bond insurance company in the United States. By insuring the timely payment of principal and interest, BAM provides market access to, and lowers interest expense for, issuers of municipal bonds used to finance essential public purposes such as schools, utilities and transportation facilities. BAM is owned by and operated for the benefit of its members, the municipalities that purchase BAM’s insurance for their debt issuances. HG Global was established to fund the startup of BAM and, through its wholly-owned subsidiary, HG Re Ltd. (“HG Re”), to provide up to 15% -of-par, first loss reinsurance protection for policies underwritten by BAM. HG Global, together with its subsidiaries, funded the initial capitalization of BAM through the purchase of $503.0 million of surplus notes issued by BAM, consisting of $203.0 million of Series A Notes and $300.0 million of Series B Notes (the “BAM Surplus Notes”). As of September 30, 2020 and December 31, 2019, White Mountains owned 96.9% of HG Global’s preferred equity and 88.4% of its common equity. White Mountains does not have an ownership interest in BAM. However, White Mountains is required to consolidate BAM’s results in its financial statements because BAM is a VIE for which White Mountains is the primary beneficiary. BAM’s results are attributed to non-controlling interests. The NSM segment consists of NSM Insurance HoldCo, LLC and its subsidiaries (collectively, “NSM”). NSM is a full-service managing general underwriting agency (“MGU”) and program administrator for specialty property and casualty insurance. The company places insurance in niche sectors such as specialty transportation, real estate, social services and pet health insurance. On behalf of its insurance carrier partners, NSM manages all aspects of the placement process, including product development, marketing, underwriting, policy issuance and claims. NSM earns commissions based on the volume and profitability of the insurance that it places. NSM does not take insurance risk. As of September 30, 2020 and December 31, 2019, White Mountains owned 96.6% and 96.4% of the basic units outstanding of NSM ( 89.6% and 88.4% on a fully diluted, fully converted basis). See Note 2 — “Significant Transactions ”. The Kudu segment consists of Kudu Investment Management, LLC and its subsidiaries (collectively “Kudu”), a capital solutions provider for asset management firms. Kudu provides capital solutions for boutique asset managers for a variety of purposes including generational ownership transfers, management buyouts, acquisition and growth finance and legacy partner liquidity. Kudu also provides strategic assistance to investees from time to time. Kudu’s capital solutions typically are structured as minority preferred equity stakes with distribution rights, typically tied to gross revenues and designed to generate immediate strong, stable cash yields. On April 4, 2019, White Mountains acquired the ownership interests in Kudu held by certain funds managed by Oaktree Capital Management, L.P. (“Oaktree”) for cash consideration of $81.4 million . In addition, White Mountains assumed all of Oaktree’s unfunded capital commitments to Kudu, increasing White Mountains’s total capital commitment to $250.0 million (the “Kudu Transaction”). As a result of the Kudu Transaction, White Mountains’s basic unit ownership of Kudu increased from 49.5% to 99.1% ( 42.7% to 85.4% on a fully diluted, fully converted basis), and White Mountains began consolidating Kudu in its financial statements during the second quarter of 2019. During the fourth quarter of 2019, White Mountains increased its total capital commitment to Kudu by an additional $100.0 million to $350.0 million and, Kudu obtained a committed $125.0 million credit facility. See Note 2 — “Significant Transactions” . The Other Operations segment consists of the Company and its wholly-owned subsidiary, White Mountains Capital, Inc., its other intermediate holding companies, its wholly-owned investment management subsidiary, White Mountains Advisors LLC (“WM Advisors”), investment assets managed by WM Advisors, its interests in MediaAlpha (for periods after the MediaAlpha Transaction), PassportCard Limited (“PassportCard”) and DavidShield Life Insurance Agency (2000) Ltd. (“DavidShield”) (collectively, “PassportCard/DavidShield”), Elementum Holdings LP (“Elementum”) and Kudu (for periods prior to the Kudu Transaction), and certain other consolidated and unconsolidated entities and certain other strategic investments. The MediaAlpha segment consisted of QL Holdings LLC and its wholly-owned subsidiary QuoteLab, LLC (collectively “MediaAlpha”). MediaAlpha is a marketing technology company. It operates a transparent and efficient online customer acquisition technology platform that facilitates real-time transactions between buyers and sellers of consumer referrals (e.g., clicks, calls and leads), primarily in the property & casualty, health and life insurance verticals. Discontinued Operations and Assets Held for Sale White Mountains has classified its Guilford, Connecticut property, which consists of an office building that was sold in August of 2020, and adjacent land as held for sale as of September 30, 2020 and December 31, 2019. The property has been measured at its estimated fair value, net of disposal costs. See Note 17 — “Held for Sale and Discontinued Operations” . Derivatives From time to time, White Mountains holds derivative financial instruments for risk management purposes. White Mountains recognizes all derivatives as either assets or liabilities, measured at fair value, on the consolidated balance sheet. Changes in the fair value of derivative instruments that meet the criteria for hedge accounting are recognized in other comprehensive income and reclassified into current period pre-tax income when the hedged items are recognized therein. Changes in the fair value of derivative instruments that do not meet the criteria for hedge accounting are recognized in current period pre-tax income. As of September 30, 2020 and December 31, 2019, NSM holds an interest rate swap derivative instrument that meets the criteria for hedge accounting. See Note 7 — “Derivatives” . Reinsurance Contracts Accounted for as Deposits Reinsurance contracts that do not meet the risk transfer requirements necessary to be accounted for as reinsurance are accounted for using the deposit method. Under the deposit method, ceded premiums paid are not recognized through income but rather treated as a deposit. BAM entered into a ceded reinsurance contract agreement with Fidus Reinsurance Ltd. (“Fidus Re”) during the quarter ended June 30, 2018, which is accounted for using the deposit method. See Note 8 — “Municipal Bond Guarantee Insurance” . The nonrefundable consideration paid by BAM to Fidus Re is charged to financing expense within general and administrative expenses. Cash and Restricted Cash Cash includes amounts on hand and demand deposits with banks and other financial institutions. Amounts presented in the statement of cash flows are shown net of balances acquired and sold in the purchase or sale of the Company’s consolidated subsidiaries. Cash balances that are not immediately available for general corporate purposes, including fiduciary accounts held by NSM on behalf of insurance carriers, are classified as restricted. Restricted amounts included within cash are disclosed parenthetically on the balance sheet. Changes in restricted cash balances are presented as a separate caption within the operations, investing and financing activities sections of the statement of cash flows. Significant Accounting Policies Refer to the Notes to Consolidated Financial Statements in the Company’s 2019 Annual Report on Form 10-K for a complete discussion regarding White Mountains’s significant accounting policies. Recently Adopted Changes in Accounting Principles Income Taxes On January 1, 2020, White Mountains adopted ASU 2019-12, Simplifying the Accounting for Income Taxes (ASC 740), which removes exceptions to standard guidance. Under the new guidance non-income-based taxes, such as franchise taxes, are reported within pre-tax income rather than being included in income taxes. In addition, the new guidance eliminates the exception to the incremental approach for interperiod tax allocation, which previously allowed consideration of the tax effects of items such as discontinued operations and items recognized through other comprehensive income. For periods subsequent to the adoption of ASU 2019-12, White Mountains records both the tax expense related to BAM’s member surplus contributions (“MSC”) and the related valuation allowance on such taxes through the non-controlling interest equity. Prior to the adoption of ASU 2019-12, White Mountains recorded the tax expense related to BAM’s MSC directly to non-controlling interest equity, while the valuation allowance on such taxes was recorded through the income statement. Goodwill On January 1, 2020, White Mountains adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment (ASC 350), which changed the guidance on goodwill impairment testing. Under the new guidance, the qualitative assessment of the recoverability of goodwill remains the same, but the second step of the two-step quantitative test, which required calculation of the implied fair value of goodwill, has been eliminated. Instead, an impairment charge is recognized when the carrying value of a reporting unit exceeds its fair value. Any excess of carrying value over fair value is written down as an impairment. White Mountains did not identify any impairment indicators associated with its reporting units and therefore did not recognize an impairment of goodwill during the three and nine months ended September 30, 2020 and accordingly, adoption of ASU 2017-04 had no impact on White Mountains’s financial statements. Credit Losses On January 1, 2020, White Mountains adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments (ASC 326), which establishes new guidance for the recognition of credit losses for financial assets measured at amortized cost. The new ASU requires reporting entities to estimate the credit losses expected over the life of a credit exposure using historical information, current information and reasonable and supportable forecasts that affect the collectability of the financial asset. White Mountains measures its portfolio of investment securities at fair value with changes therein recognized through current period earnings and, accordingly, adoption of ASU 2016-13 had no impact on White Mountains’s financial statements Leases On January 1, 2019, White Mountains adopted ASU 2016-02, Leases (ASC 842), which requires lessees to recognize lease assets and liabilities on the balance sheet for both operating and financing leases, with the exception of leases with an original term of 12 months or less. White Mountains elected the optional transition method that permits prospective adoption with recognition of a cumulative effect adjustment to the opening balance of retained earnings. As a result, White Mountains has presented comparative periods prior to adoption in accordance with previous lease accounting guidance. White Mountains also elected all available practical expedients permitted under ASC 842, which allowed White Mountains to carryforward its historical lease classification and not reassess leases for the definition of a lease under the new guidance. As of January 1, 2019, White Mountains recognized $23.2 million for both the lease right-of-use assets and lease liabilities . As of September 30, 2020 , White Mountains recognized $38.3 million and $ 39.1 million of lease right-of-use assets and lease liabilities. Adoption of ASU 2016-02 did not result in an adjustment to opening retained earnings. Premium Amortization on Callable Debt Securities On January 1, 2019, White Mountains adopted ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities |
Significant Transactions
Significant Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Transactions | Significant Transactions Acquisitions Elementum On May 31, 2019, White Mountains acquired a 30.0% limited partnership interest in Elementum, a third-party registered investment adviser specializing in natural catastrophe insurance-linked securities (“ILS”), for $55.1 million (the “Elementum Transaction”). Elementum manages separate accounts and pooled investment vehicles across various ILS sectors, including catastrophe bonds, collateralized reinsurance investments and industry loss warranties, on behalf of third-party clients. As part of the Elementum Transaction, White Mountains also committed to invest $50.0 million in ILS funds managed by Elementum. As of September 30, 2020 , White Mountains had $52.7 million invested into four Elementum-managed funds. White Mountains has elected the fair value option for its investments in Elementum and the ILS funds managed by Elementum. Both the investment in Elementum and the investments in ILS funds managed by Elementum are included within other long-term investments. NSM On May 11, 2018, White Mountains acquired a 95.0% basic unit ownership interest in NSM ( 83.6% on a fully diluted, fully converted basis). White Mountains paid $274.2 million of cash consideration for its equity interest in NSM, and NSM borrowed $100.0 million in new debt as part of the transaction. On May 18, 2018, NSM acquired 100% of Fresh Insurance Services Group Limited (“Fresh Insurance”), an insurance broker that offers non-standard personal lines products in the United Kingdom. NSM paid $ 49.6 million of upfront cash consideration for Fresh Insurance. NSM borrowed $51.0 million to fund the transaction. During the nine months ended September 30, 2019, NSM paid a purchase price adjustment of an additional $0.7 million of consideration. The purchase price is subject to additional adjustments based upon growth in EBITDA during two earnout periods, one which ended in February 2020 and one ending in February 2022. NSM did not make any payments related to the first Fresh Insurance earnout period. On December 3, 2018, NSM acquired all the net assets of KBK Insurance Group, Inc. (“KBK”), a specialized MGU focused on the towing and transportation space. NSM paid $60.0 million of upfront cash consideration for KBK. White Mountains contributed $29.0 million to NSM and NSM borrowed $30.1 million to fund the transaction. As of December 31, 2018, White Mountains had recognized $59.4 million of goodwill and other intangible assets, reflecting acquisition date fair value. The relative fair values of goodwill and of other intangible assets recognized in connection with the acquisition of KBK had not yet been finalized as of December 31, 2018. As of March 31, 2019, White Mountains determined that the relative values of goodwill and other intangible assets from the KBK transaction were $32.6 million and $32.7 million , reflecting acquisition date fair values, and recorded a liability of $5.9 million relating to the fair value of contingent consideration earnouts made in connection with the acquisition. The purchase price is subject to adjustments based upon growth in EBITDA during three earnout periods, one which ended in December 2019, one ending in December 2020 and one ending in December 2021. In the first quarter of 2020, NSM paid $6.4 million related to the first KBK earnout period. On April 1, 2019, NSM acquired 100% of Embrace Pet Insurance (“Embrace”), a nationwide provider of pet health insurance for dogs and cats. NSM paid $71.5 million of cash consideration, net of cash acquired, for Embrace. White Mountains contributed $58.2 million to NSM and NSM borrowed $20.4 million to fund the transaction. White Mountains recognized $52.2 million of goodwill and $15.4 million of other intangible assets, reflecting acquisition date fair values. On June 28, 2019, NSM acquired the renewal rights on its U.S. collector car business (the “Renewal Rights”) from American International Group, Inc. (“AIG”) for $82.5 million . The acquisition satisfied NSM’s contingent obligation to acquire the Renewal Rights from AIG. White Mountains contributed $59.1 million to NSM and NSM borrowed $22.5 million to fund the transaction. White Mountains recognized $82.5 million of other intangible assets, reflecting acquisition date fair values. See Note 4 — “Goodwill and Other Intangible Assets” . On April 7, 2020, NSM acquired 100% of Kingsbridge Group Limited (“Kingsbridge”), a leading provider of commercial lines insurance and consulting services to the U.K.’s contractor and freelancer markets. NSM paid £ 107.2 million (approximately $132 million based upon the foreign exchange spot rate at the date of acquisition) of upfront cash consideration for Kingsbridge. White Mountains contributed $80.3 million to NSM and NSM borrowed £ 42.5 million (approximately $52.4 million based upon the foreign exchange spot rate at the date of acquisition) to fund the transaction. As of September 30, 2020, White Mountains had recognized $ 125.1 million of goodwill and other intangible assets, reflecting acquisition date fair value. The purchase price is subject to adjustment based upon growth in EBITDA during an earnout period ending in January 2022. The relative fair values of other intangible assets recognized in connection with the acquisition of Kingsbridge and the contingent earnout liability had not yet been finalized as of September 30, 2020. As of September 30, 2020 and December 31, 2019, NSM recorded total contingent consideration earnout liabilities of $ 11.8 million and $20.6 million . The contingent consideration earnout liabilities related to the Fresh Insurance and KBK acquisitions are subject to adjustments based upon EBITDA, EBITDA projections and present value factors for acquired entities. For the three and nine months ended September 30, 2020 , NSM recognized pre-tax expense (income) of $0.7 million and $(1.6) million for the change in the fair value of its contingent consideration earnout liabilities. For the three and nine months ended September 30, 2019 , NSM recognized pre-tax (income) expense of $(2.0) million and $5.6 million for the change in the fair value of its contingent consideration earnout liabilities. Any future adjustments to contingent consideration earnout liabilities will be recognized through pre-tax income. For the three and nine months ended September 30, 2020 , NSM paid $0.6 million and $7.0 million of contingent consideration earnout liabilities related to KBK and the U.K. vertical. For both the three and nine months ended September 30, 2019 , NSM paid $2.6 million of contingent consideration earnout liabilities related to the U.K. vertical. Kudu On February 5, 2018, White Mountains entered into an agreement to fund up to $125.0 million in Kudu in exchange for a 49.5% basic units ownership interest in Kudu ( 42.7% on a fully diluted, fully converted basis). On April 4, 2019, White Mountains acquired the ownership interests in Kudu held by certain funds managed by Oaktree for cash consideration of $81.4 million . In addition, White Mountains assumed all of Oaktree’s unfunded capital commitments to Kudu, increasing White Mountains’s total capital commitment to $250.0 million . White Mountains recognized total assets acquired of $155.5 million , including $7.6 million of goodwill and $2.2 million of other intangible assets, total liabilities assumed of $0.8 million and non-controlling interest of $1.5 million . As a result of the Kudu Transaction, White Mountains’s basic unit ownership of Kudu increased from 49.5% to 99.1% ( 42.7% to 85.4% on a fully diluted, fully converted basis), and White Mountains began consolidating Kudu as a reportable segment in its financial statements during the second quarter of 2019. White Mountains’s consolidated financial statements and its segment disclosures include Kudu’s results from April 4, 2019, the date of the Kudu Transaction. For periods prior to the Kudu Transaction, White Mountains determined that Kudu was a VIE, but White Mountains was not the primary beneficiary. In those periods, White Mountains elected to use the fair value option. During the fourth quarter of 2019, White Mountains increased its total capital commitment to Kudu by $100.0 million to $350.0 million , of which $94.5 million and $129.0 million was undrawn as of September 30, 2020 and December 31, 2019. During the fourth quarter of 2019, Kudu obtained a committed $125.0 million credit facility, of which $51.0 million and $68.0 million was undrawn as of September 30, 2020 and December 31, 2019. See Note 5 — “Debt” . Dispositions MediaAlpha On February 26, 2019, MediaAlpha completed the MediaAlpha Transaction. White Mountains received net cash proceeds of $89.3 million from the MediaAlpha Transaction. White Mountains recognized a realized gain of $ 67.5 million and reduced its ownership interest of the basic units outstanding of MediaAlpha from 61.0% to 48.3% ( 58.9% to 42.0% on a fully diluted, fully converted basis) as a result of the MediaAlpha Transaction. White Mountains’s remaining ownership interest in MediaAlpha no longer meets the criteria for a controlling ownership interest and, accordingly, White Mountains deconsolidated MediaAlpha on February 26, 2019. White Mountains’s consolidated statement of operations and comprehensive income and its segment disclosures include MediaAlpha’s results of operations for the period from January 1, 2019 through February 26, 2019. Upon deconsolidation, White Mountains’s investment in MediaAlpha met the criteria to be accounted for under the equity method or under the fair value option. See Note 14 — “Equity-Method Eligible Investments” . White Mountains elected the fair value option and the investment in MediaAlpha was initially measured at its estimated fair value of $114.7 million as of the transaction date, with the change in fair value of $114.7 million recognized as an unrealized investment gain. White Mountains recognized a total of $ 182.2 million of realized and unrealized investment gains on the MediaAlpha Transaction. On October 30, 2020, MediaAlpha completed an initial public offering (the “MediaAlpha IPO”). See Note 18 — “Subsequent Events” . Other Transactions PassportCard/DavidShield On May 7, 2020, White Mountains made an additional $15.0 million investment in PassportCard/DavidShield to support operations through the ongoing COVID-19 pandemic. The transaction increased White Mountains’s ownership interest from 50.0% to 53.8% in both PassportCard and DavidShield, but had no impact on the governance structure of the companies, including White Mountains’s board representation or other investor rights. The governance structures for both PassportCard and DavidShield were designed to give White Mountains and its co-investor equal power to make the decisions that most significantly impact the operations of PassportCard and DavidShield. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities White Mountains’s portfolio of investment securities held for general investment purposes consists of fixed maturity investments, short-term investments, common equity securities and other long-term investments, which are classified as trading securities. Trading securities are reported at fair value as of the balance sheet date. Net realized and unrealized investment gains (losses) on trading securities are reported in pre-tax revenues. White Mountains’s fixed maturity investments are generally valued using industry standard pricing methodologies. Key inputs include benchmark yields, benchmark securities, reported trades, issuer spreads, bids, offers, credit ratings and prepayment speeds. Income on mortgage and asset-backed securities is recognized using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the estimated economic life is recalculated and the remaining unamortized premium or discount is amortized prospectively over the remaining economic life. Realized investment gains (losses) resulting from sales of investment securities are accounted for using the specific identification method. Premiums and discounts on all fixed maturity investments are amortized or accreted to income over the anticipated life of the investment. Short-term investments consist of interest-bearing money market funds, certificates of deposit and other securities, which at the time of purchase, mature or become available for use within one year. Short-term investments are carried at amortized or accreted cost, which approximated fair value as of September 30, 2020 and December 31, 2019. Other long-term investments consist primarily of unconsolidated entities, including Kudu’s non-controlling equity interests in the form of revenue and earnings participation contracts (“Participation Contracts”), private equity funds, hedge funds, ILS funds and private debt instruments. Net Investment Income White Mountains’s net investment income is comprised primarily of interest income associated with White Mountains’s fixed maturity investments and short-term investments and dividend income from common equity securities and other long-term investments. The following table presents pre-tax net investment income for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Fixed maturity investments $ 7.0 $ 8.0 $ 22.4 $ 24.4 Short-term investments .1 1.3 1.0 3.9 Common equity securities .5 2.5 6.5 10.8 Other long-term investments 63.9 7.0 84.7 17.4 Total investment income 71.5 18.8 114.6 56.5 Third-party investment expenses (.3 ) (.4 ) (.9 ) (1.1 ) Net investment income, pre-tax $ 71.2 $ 18.4 $ 113.7 $ 55.4 Net Realized and Unrealized Investment Gains (Losses) The following table presents net realized and unrealized investment gains (losses) for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Fixed maturity investments $ 3.6 $ 8.9 $ 35.8 $ 46.9 Short-term investments — — .4 .3 Common equity securities 48.4 2.4 5.9 141.5 Other long-term investments (1) (2)(3) 254.6 $ 55.7 260.7 159.1 Net realized and unrealized investment gains 306.6 67.0 302.8 347.8 Less: net gains on investment securities sold during the period 36.1 — 29.6 12.4 Net realized and unrealized investment gains on investment securities held at the end of the period $ 270.5 $ 67.0 $ 273.2 $ 335.4 (1) For the nine months ended September 30, 2019, excludes $67.5 of realized gain and includes $114.7 of unrealized investment gain associated with the MediaAlpha Transaction, which are both recorded in a separate line item in the statement of operations titled Realized gain and unrealized investment gain from the MediaAlpha Transaction. See Note 2 — “Significant Transactions”. (2) For the three and nine months ended September 30, 2020 and 2019, includes $250.0 , $295.0 , $35.3 and $150.0 of unrealized investment gains from White Mountains’s investment in MediaAlpha. (3) For the three and nine months ended September 30, 2020 and 2019, includes $0.8 and $(0.8) of realized and unrealized investment gains (losses) related to foreign currency exchange. The following table presents total gains included in earnings attributable to net unrealized investment gains (losses) for Level 3 investments for the three and nine months ended September 30, 2020 and 2019 for investments still held at the end of the period: Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Other long-term investments $ 260.1 $ 54.4 $ 276.0 $ 154.4 Total net unrealized investment gains (losses), pre-tax - Level 3 investments $ 260.1 $ 54.4 $ 276.0 $ 154.4 Investment Holdings The following tables present the cost or amortized cost, gross unrealized investment gains (losses) and carrying values of White Mountains’s fixed maturity investments as of September 30, 2020 and December 31, 2019 : September 30, 2020 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Carrying Value U.S. Government and agency obligations $ 206.2 $ 4.4 $ — $ 210.6 Debt securities issued by corporations 505.4 24.0 (.7 ) 528.7 Municipal obligations 251.0 20.4 (.1 ) 271.3 Mortgage and asset-backed securities 203.6 7.3 — 210.9 Total fixed maturity investments $ 1,166.2 $ 56.1 $ (.8 ) $ 1,221.5 December 31, 2019 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Carrying Value U.S. Government and agency obligations $ 231.7 $ 1.0 $ (.2 ) $ 232.5 Debt securities issued by corporations 454.9 12.5 (.2 ) 467.2 Municipal obligations 284.7 12.5 (.1 ) 297.1 Mortgage and asset-backed securities 206.6 2.7 (.3 ) 209.0 Total fixed maturity investments $ 1,177.9 $ 28.7 $ (.8 ) $ 1,205.8 The following tables present the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency losses, and carrying values of White Mountains’s common equity securities and other long-term investments as of September 30, 2020 and December 31, 2019 : September 30, 2020 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Losses Carrying Value Common equity securities $ 124.2 $ 16.5 $ — $ — $ 140.7 Other long-term investments $ 696.4 $ 552.4 $ (76.1 ) $ (1.5 ) $ 1,171.2 December 31, 2019 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Carrying Value Common equity securities $ 553.3 $ 130.6 $ — $ — $ 683.9 Other long-term investments $ 667.4 $ 255.2 $ (64.1 ) $ (2.2 ) $ 856.3 Debt Securities Issued by Corporations The following table presents the credit ratings of debt securities issued by corporations held in White Mountains’s investment portfolio as of September 30, 2020 and December 31, 2019 : Fair Value at Millions September 30, 2020 December 31, 2019 AAA $ 11.2 $ 9.5 AA 58.2 73.9 A 307.7 288.5 BBB 150.0 95.3 BB 1.6 — Debt securities issued by corporations (1) $ 528.7 $ 467.2 (1) Credit ratings are based upon issuer credit ratings provided by Standard & Poor’s Financial Services LLC (“Standard & Poor’s”), or if unrated by Standard & Poor’s, long-term obligation ratings provided by Moody’s Investor Service, Inc. Mortgage and Asset-backed Securities The following table presents the fair value of White Mountains’s mortgage and asset-backed securities as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Millions Fair Value Level 2 Level 3 Fair Value Level 2 Level 3 Mortgage-backed securities: Agency: FNMA $ 84.5 $ 84.5 $ — $ 88.6 $ 88.6 $ — FHLMC 67.1 67.1 — 60.5 60.5 — GNMA 37.4 37.4 — 30.8 30.8 — Total agency (1) 189.0 189.0 — 179.9 179.9 — Total mortgage-backed securities 189.0 189.0 — 179.9 179.9 — Other asset-backed securities: Credit card receivables 11.3 11.3 — 14.0 14.0 — Vehicle receivables 10.6 10.6 — 15.1 15.1 — Total other asset-backed securities 21.9 21.9 — 29.1 29.1 — Total mortgage and asset-backed securities $ 210.9 $ 210.9 $ — $ 209.0 $ 209.0 $ — (1) Represents publicly traded mortgage-backed securities which carry the full faith and credit guaranty of the U.S. Government (i.e., GNMA) or are guaranteed by a government sponsored entity (i.e., FNMA, FHLMC). Other Long-Term Investments The following table presents the carrying values of White Mountains’s other long-term investments as of September 30, 2020 and December 31, 2019 : Carrying Value at Millions September 30, 2020 December 31, 2019 MediaAlpha (1) $ 475.0 $ 180.0 Kudu’s Participation Contracts (1) 325.5 266.5 PassportCard/DavidShield (1) 95.0 90.0 Elementum Holdings L.P. (1) 55.1 55.1 Other unconsolidated entities (1)(2) 31.8 33.7 Total unconsolidated entities (1) 982.4 625.3 Private equity funds and hedge funds 118.2 161.1 Insurance-linked securities funds 52.7 41.2 Private debt investments (3) 17.9 28.7 Total other long-term investments $ 1,171.2 $ 856.3 (1) See Fair Value Measurements by Level table. (2) Includes White Mountains’s non-controlling equity interests in certain private common equity securities, limited liability companies and convertible preferred securities and Simple Agreement for Future Equity (“SAFE”) investments. (3) Includes $5.1 and $5.0 in private debt investments carried at fair value as of September 30. 2020 and amortized cost as of December 31, 2019. Private Equity Funds and Hedge Funds White Mountains invests in private equity funds and hedge funds, which are included in other long-term investments. The fair value of these investments is generally estimated using the net asset value (“NAV”) of the funds. As of September 30, 2020 , White Mountains held investments in fourteen private equity funds. The largest investment in a single private equity fund or hedge fund was $23.7 million as of September 30, 2020 and $54.6 million as of December 31, 2019 . In the first quarter of 2020, White Mountains submitted a notice to redeem its sole hedge fund having a fair value of $45.6 million. The bulk of the redemption proceeds, subject to customary audit holdbacks, were received in April 2020 and the remaining balance is expected to be received in April 2021. The following table presents investments and unfunded commitments in private equity funds and hedge funds by investment objective and sector as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Millions Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity funds Aerospace/Defense/Government $ 59.4 $ 16.1 $ 33.8 $ 23.3 Manufacturing/Industrial 39.8 2.0 57.7 4.1 Financial services 19.0 23.4 15.0 22.8 Total private equity funds 118.2 41.5 106.5 50.2 Hedge funds Long/short banks and financials — — 54.6 — Total hedge funds — — 54.6 — Total private equity funds and hedge funds included in other long-term investments $ 118.2 $ 41.5 $ 161.1 $ 50.2 Investments in private equity funds are generally subject to a lock-up period during which investors may not request a redemption. Distributions prior to the expected termination date of the fund may be limited to dividends or proceeds arising from the liquidation of the fund’s underlying investments. In addition, certain private equity funds have the option to extend the lock-up period. The following table presents investments in private equity funds that were subject to lock-up periods as of September 30, 2020 : Millions 1 – 3 years 3 – 5 years 5 – 10 years >10 years Total Private equity funds — expected lock-up period remaining $4.7 $36.4 $71.7 $5.4 $118.2 Investors in private equity funds are generally subject to indemnification obligations outside of the capital commitment period and prior to the winding up of the fund. As of September 30, 2020 and December 31, 2019, White Mountains is not aware of any indemnification claims relating to its investments in private equity funds. Redemption of investments in most hedge funds is subject to restrictions, including lock-up periods where no redemptions or withdrawals are allowed, restrictions on redemption frequency and advance notice periods for redemptions. Amounts requested for redemptions remain subject to market fluctuations until the redemption effective date, which generally falls at the end of the defined redemption period. Insurance-Linked Securities Funds White Mountains’s other long-term investments include ILS funds. The fair value of these investments is generally estimated using the NAV of the funds. As of September 30, 2020, White Mountains held investments in four ILS funds with a fair value of $52.7 million . Investments in ILS funds are generally subject to restrictions, including lock-up periods where no redemptions or withdrawals are allowed, non-renewal clauses, restrictions on redemption frequency and advance notice periods for redemptions. From time to time, natural catastrophe, liquidity, market or other events will occur that make the determination of fair value for underlying investments in an ILS fund less certain due to the potential for loss development. In such circumstances, the impacted investments may be subject to additional lock-up provisions. White Mountains’s ILS funds are subject to monthly and annual restrictions on redemptions and advance redemption notice period requirements that range between 30 and 90 days. Amounts requested for redemption remain subject to market fluctuations until the redemption effective date, which generally falls at the end of the defined redemption period. In the first quarter of 2020, White Mountains invested in an ILS fund that requires shareholders to make additional capital commitments annually in an amount up to or equal to the original capital commitment, unless a non-renewal notice is provided on or before September 15 of each calendar year. The notice of non-renewal constitutes a redemption request. Fund proceeds become available on the last calendar day of the month when the last underlying fund investment has fully matured or been commuted, which is typically three years from the initial investment in the fund. In September 2020, White Mountains notified the ILS fund manager of its intent to renew its capital commitment for the following calendar year by maintaining a fund commitment equal to its invested balance as of December 31, 2020. Fair Value Measurements as of September 30, 2020 Fair value measurements are categorized into a hierarchy that distinguishes between inputs based on market data from independent sources (“observable inputs”) and a reporting entity’s internal assumptions based upon the best information available when external market data is limited or unavailable (“unobservable inputs”). Quoted prices in active markets for identical assets or liabilities have the highest priority (“Level 1”), followed by observable inputs other than quoted prices, including prices for similar but not identical assets or liabilities (“Level 2”) and unobservable inputs, including the reporting entity’s estimates of the assumptions that market participants would use, having the lowest priority (“Level 3”). As of September 30, 2020 and December 31, 2019, White Mountains used quoted market prices or other observable inputs to determine fair value for approximately 62% and 71% of the investment portfolio. Fair Value Measurements by Level The following tables present White Mountains’s fair value measurements for investments as of September 30, 2020 and December 31, 2019 by level. The major security types were based on the legal form of the securities. White Mountains has disaggregated its fixed maturity investments based on the issuing entity type, which impacts credit quality, with debt securities issued by U.S. government entities carrying minimal credit risk, while the credit and other risks associated with other issuers, such as corporations, foreign governments, municipalities or entities issuing mortgage and asset-backed securities vary depending on the nature of the issuing entity type. White Mountains further disaggregates debt securities issued by corporations and common equity securities by industry sector because investors often reference commonly used benchmarks and their subsectors to monitor risk and performance. Accordingly, White Mountains has further disaggregated these asset classes into subclasses based on the similar sectors and industry classifications it uses to evaluate investment risk and performance against commonly used benchmarks, such as the Bloomberg Barclays U.S. Intermediate Aggregate and S&P 500 indices. September 30, 2020 Millions Fair Value Level 1 Level 2 Level 3 Fixed maturity investments: U.S. Government and agency obligations $ 210.6 $ 210.6 $ — $ — Debt securities issued by corporations: Financials 142.9 — 142.9 — Technology 68.5 — 68.5 — Industrial 61.5 — 61.5 — Consumer 60.7 — 60.7 — Healthcare 49.3 — 49.3 — Communications 42.3 — 42.3 — Energy 38.9 — 38.9 — Materials 37.4 — 37.4 — Utilities 27.2 — 27.2 — Total debt securities issued by corporations 528.7 — 528.7 — Municipal obligations 271.3 — 271.3 — Mortgage and asset-backed securities 210.9 — 210.9 — Total fixed maturity investments 1,221.5 210.6 1,010.9 — Short-term investments (1) 571.8 570.6 1.2 — Common equity securities: Exchange traded funds 84.7 84.7 — — Other (2) 56.0 — 55.9 .1 Total common equity securities 140.7 84.7 55.9 .1 Other long-term investments 1,000.3 — — 1,000.3 Other long-term investments — NAV (3) 170.9 — — — Total investments $ 3,105.2 $ 865.9 $ 1,068.0 $ 1,000.4 (1) Short-term investments are measured at amortized cost, which approximates fair value. (2) Primarily consists of one investment in a unit trust that predominantly invests in international equities. (3) Consists of private equity funds and ILS funds for which fair value is measured at NAV using the practical expedient. Investments for which fair value is measured at NAV are not classified within the fair value hierarchy. December 31, 2019 Millions Fair Value Level 1 Level 2 Level 3 Fixed maturity investments: U.S. Government and agency obligations $ 232.5 $ 232.5 $ — $ — Debt securities issued by corporations: Financials 144.8 — 144.8 — Industrial 59.0 — 59.0 — Healthcare 52.6 — 52.6 — Consumer 50.9 — 50.9 — Energy 44.9 — 44.9 — Technology 41.2 — 41.2 — Communications 31.3 — 31.3 — Utilities 25.0 — 25.0 — Materials 17.5 — 17.5 — Total debt securities issued by corporations 467.2 — 467.2 — Municipal obligations 297.1 — 297.1 — Mortgage and asset-backed securities 209.0 — 209.0 — Total fixed maturity investments 1,205.8 232.5 973.3 — Short-term investments (1) 201.2 189.4 11.8 — Common equity securities: Exchange traded funds (2) 536.4 521.6 14.8 — Other (3) 147.5 25.9 121.5 .1 Total common equity securities 683.9 547.5 136.3 .1 Other long-term investments 654.0 — — 654.0 Other long-term investments — NAV (4) 202.3 — — — Total investments $ 2,947.2 $ 969.4 $ 1,121.4 $ 654.1 (1) Short-term investments are measured at amortized cost, which approximates fair value. (2) ETFs traded on foreign exchanges are priced using the fund’s published NAV to account for the difference in market close times and are therefore designated a Level 2 measurement. (3) Primarily consists of two investments in unit trusts that predominantly invest in international equities and an open-end mutual fund that invests in domestic large-cap companies. (4) Consists of private equity funds, one hedge fund and ILS funds for which fair value is measured at NAV using the practical expedient. Investments for which fair value is measured at NAV are not classified within the fair value hierarchy. Rollforward of Fair Value Measurements by Level White Mountains uses quoted market prices where available as the inputs to estimate fair value for its investments in active markets. Such measurements are considered to be either Level 1 or Level 2 measurements, depending on whether the quoted market price inputs are for identical securities (Level 1) or similar securities (Level 2). Level 3 measurements for fixed maturity investments, common equity securities and other long-term investments as of September 30, 2020 and 2019 consist of securities for which the estimated fair value has not been determined based upon quoted market price inputs for identical or similar securities. The following tables present the changes in White Mountains’s fair value measurements by level for the three months ended September 30, 2020 and 2019 : Level 3 Investments Other Long-term Investments Measured at NAV (2) Millions Level 1 Investments Level 2 Investments Common Equity Securities Other Long-term Investments Total Balance at December 31, 2019 $ 780.0 $ 1,109.6 $ .1 $ 654.0 $ 202.3 $ 2,746.0 (1) Net realized and unrealized gains (losses) 29.2 12.5 — 275.6 (14.9 ) 302.4 (3) Amortization/Accretion — (3.0 ) — — — (3.0 ) Purchases 128.8 316.2 — 78.8 39.8 563.6 Sales (642.7 ) (368.5 ) — (8.1 ) (56.3 ) (1,075.6 ) Transfers in — — — — — — Transfers out — — — — — — Balance at September 30, 2020 $ 295.3 $ 1,066.8 $ .1 $ 1,000.3 $ 170.9 $ 2,533.4 (1) (1) Excludes carrying value of $ 571.8 and $ 201.2 as of September 30, 2020 and December 31, 2019 classified as short-term investments. (2) Includes private equity funds, hedge funds and ILS funds for which fair value is measured at NAV using the practical expedient are no longer classified within the fair value hierarchy. See Note 1 — “Basis of Presentation and Significant Accounting Policies” . (3) Excludes realized and unrealized gains associated with short-term investments of $0.4 for the nine months ended September 30, 2020. Level 3 Investments Other Long-term Investments Measured at NAV (3,5) Millions Level 1 Investments Level 2 Investments Other Long-term Investments Total Balance at December 31, 2018 $ 842.6 $ 1,160.5 $ 138.7 $ 186.9 $ 2,328.7 (1) Net realized and unrealized gains 121.8 66.6 154.2 4.9 347.5 (2, 4) Amortization/Accretion .2 (1.2 ) — — (1.0 ) Purchases 101.4 331.3 211.3 106.4 750.4 (6) Sales (362.3 ) (465.2 ) — (28.7 ) (856.2 ) Transfers in — — 82.6 — 82.6 Transfers out — — — (82.6 ) (82.6 ) Balance at September 30, 2019 $ 703.7 $ 1,092.0 $ 586.8 $ 186.9 $ 2,569.4 (1) (1) Excludes carrying value of $ 272.5 and $ 214.2 as of September 30, 2019 and December 31, 2018 classified as short-term investments. (2) Includes $114.7 unrealized investment gain associated with the MediaAlpha Transaction, which is recorded in a separate line item in the statement of operations titled Realized gain and unrealized investment gain from the MediaAlpha Transaction. See Note 2 — “Significant Transactions”. (3) Includes private equity funds, hedge funds and ILS funds for which fair value is measured at NAV using the practical expedient are no longer classified within the fair value hierarchy. See Note 1 — “Basis of Presentation and Significant Accounting Policies” . (4) Excludes realized and unrealized losses associated with short-term investments of $0.3 for the nine months ended September 30, 2019. (5) Transfer includes $71.7 associated with the Kudu Transaction. See Note 2 — “Significant Transactions”. (6) Purchases include $70.1 associated with the Kudu Transaction. See Note 2 — “Significant Transactions”. Fair Value Measurements — Transfers Between Levels - Nine-months ended September 30, 2020 and 2019 Transfers between levels are recorded using the fair value measurement as of the end of the quarterly period in which the event or change in circumstance giving rise to the transfer occurred. During the first nine months of 2020 and 2019, there were no fixed maturity investments or other long-term investments classified as Level 3 measurements in the prior period that were transferred to Level 2 measurements. During the first nine months of 2020 and 2019, there were no fixed maturity investments or other long-term investments classified as Level 2 measurements in the prior period that were transferred to Level 3 measurements. Significant Unobservable Inputs The following tables present significant unobservable inputs used in estimating the fair value of other long-term investments, other than private equity funds, hedge funds and ILS funds, classified within Level 3 as of September 30, 2020 and December 31, 2019 . The fair value of investments in private equity funds, hedge funds and ILS funds are generally estimated using the NAV of the funds. $ in Millions September 30, 2020 Description Valuation Technique(s) Fair Value (5) Unobservable Inputs (6) MediaAlpha Probability-weighted expected return method $475.0 Weight ascribed to IPO 65% Forward Revenue Exit Multiple 2x Weight ascribed to remaining private 35% Discount Rate 13% Terminal Revenue Growth 4% Discount Rate (2)(6) Terminal Cash Flow Exit Multiple (x) or Terminal Revenue Growth Rate (%) (6) Kudu’s Participation Contracts (1)(2) Discounted cash flow $325.5 18% - 23% 6x - 12x PassportCard/DavidShield (3) Discounted cash flow $95.0 23% 4% Elementum Holdings, L.P. Discounted cash flow $55.1 19% 4% Private debt instruments Discounted cash flow $17.9 5% - 10% N/A All other Discounted cash flow $18.1 20% - 24% 4% Noblr, Inc. Share price of recent transaction $8.7 Share price: $2.17 Zillion Insurance Services, Inc. (4) Recent transaction $5.0 Transaction price: $5.0 (1) During the nine months ended September 30, 2020, Kudu deployed a total of $57.4 in new Kudu Participation Contracts, including Creation Investments Capital Management and Sequoia Financial Group. (2) Since Kudu’s Participation Contracts are not subject to corporate taxes within Kudu Investment Management, LLC, pre-tax discount rates are applied to pre-tax cash flows in determining fair values. (3) During the nine months ended September 30, 2020, White Mountains made an additional $15.0 investment in PassportCard/DavidShield. See Note 2 - “Significant Transactions” . (4) During the nine months ended September 30, 2020, White Mountains made an additional $2.5 investment in Zillion Insurance Services, Inc. (5) Includes the net unrealized investment gains (losses) associated with foreign currency; foreign currency effects based on observable inputs. (6) Increases (decreases) to the discount rates in isolation would result in lower (higher) fair value measurements, while increases (decreases) to the terminal cash flow exit multiples or terminal revenue growth rates in isolation would result in higher (lower) fair value measurements. $ in Millions December 31, 2019 Description Valuation Technique(s) Fair Value (1) Unobservable Inputs Discount Rate (2) Terminal Cash Flow Exit Multiple (x) or Terminal Revenue Growth Rate (%) (2) Kudu’s Participation Contracts Discounted cash flow $266.5 15% - 22% 6x - 12x MediaAlpha Discounted cash flow $180.0 15% 4% PassportCard/DavidShield Discounted cash flow $90.0 22% 4% Elementum Holdings, L.P. Discounted cash flow $55.1 20% 4% Private debt instruments Discounted cash flow $23.7 4% - 9% N/A All other Discounted cash flow $23.7 25% - 32% 4% Noblr, Inc. Share price of recent transaction $5.0 Share price: $2.17 Zillion Insurance Services, Inc. Recent transaction $2.5 Transaction price: $2.5 Compare.com Estimated net realizable value $2.5 Net realizable value: $2.5 (1) Includes the net unrealized investment gains (losses) associated with foreign currency; foreign currency effects based on observable inputs. (2) Increases (decreases) to the discount rates in isolation would result in lower (higher) fair value measurements, while increases (decreases) to the terminal cash flow exit multiples or terminal revenue growth rates in isolation would result in higher (lower) fair value measurements. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets White Mountains accounts for purchases of businesses 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. The acquisition date fair values of certain assets and liabilities, 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 acquisition date fair values, accumulated amortization and net carrying values for other intangible assets and goodwill, by company as of September 30, 2020 and December 31, 2019 : $ in Millions Weighted Average Economic Life (in years) September 30, 2020 December 31, 2019 Acquisition Date Fair Value Accumulated Amortization Impairments Net Carrying Value Acquisition Date Fair Value Accumulated Amortization Impairments Net Carrying Value Goodwill: NSM (1) N/A $ 511.8 $ — $ — $ 511.8 $ 381.6 $ — $ — $ 381.6 Kudu N/A 7.6 — — 7.6 7.6 — — 7.6 Other Operations N/A 20.7 — — 20.7 13.1 — 7.6 5.5 Total goodwill 540.1 — — 540.1 402.3 — 7.6 394.7 Other intangible assets: NSM (1) Customer 9 118.4 28.4 3.5 86.5 121.7 19.8 1.4 100.5 Trade names 19 60.8 7.1 1.0 52.7 61.9 5.3 .4 56.2 Information technology platform 0 3.1 1.4 1.7 — 3.9 1.4 .6 1.9 Renewal rights 12 82.5 3.9 — 78.6 82.5 .7 — 81.8 Other 3 1.7 1.0 — .7 1.7 .7 — 1.0 Subtotal 266.5 41.8 6.2 218.5 271.7 27.9 2.4 241.4 Kudu Trade names 7 2.2 .5 — 1.7 2.2 .2 — 2.0 Other Operations Trade names 10 1.0 .1 — .9 1.7 .5 .2 1.0 Customer relationships 11 7.2 .8 — 6.4 7.2 .4 — 6.8 Information 5 — — — — .5 .3 .2 — Insurance Licenses N/A 8.6 — — 8.6 8.6 — — 8.6 Other 5 .2 .1 — .1 .2 — — .2 Subtotal 17.0 1.0 — 16.0 18.2 1.2 .4 16.6 Total other intangible assets 285.7 43.3 6.2 236.2 292.1 29.3 2.8 260.0 Total goodwill and other intangible assets $ 825.8 $ 43.3 $ 6.2 776.3 $ 694.4 $ 29.3 10.4 654.7 Goodwill and other intangible assets attributed to non-controlling interests (27.1 ) (23.4 ) Goodwill and other intangible assets included in White Mountains’s common shareholders’ equity $ 749.2 $ 631.3 (1) As of September 30, 2020 , NSM’s goodwill and intangible assets included $ 5.2 and $ (0.5) of the effect of foreign currency translation. As of December 31, 2019, NSM’s goodwill and intangible assets included $ 1.4 and $0.7 of the effect of foreign currency translation. The goodwill recognized for the entities shown on the previous page 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 trade names, customer relationships and contracts and information technology. 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 domain names, certain trademarks and brand names. The with-or-without method estimates the fair value of an other intangible asset that provides 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 favorable lease terms. The following table presents a summary of the acquisition date fair values of goodwill and other intangible assets for acquisitions completed from January 1, 2019 through September 30, 2020 : $ in Millions Acquisition of subsidiary/ asset Goodwill and Other intangible asset (1) Acquisition Date Embrace (2) $ 67.6 April 1, 2019 Renewal Rights (3) 82.5 June 28, 2019 Kingsbridge (4) 125.1 April 7, 2020 Total NSM segment $ 275.2 Kudu Transaction $ 9.8 April 4, 2019 Other Operations (4) $ 37.5 Various (1) Acquisition date fair values include the effect of adjustments during the measurement period and excludes the effect of foreign currency translation subsequent to the acquisition date. (2) Excludes $3.4 of software classified within other assets. (3) NSM’s purchase of the Renewal Rights from AIG was an asset acquisition. (4) The determination of the relative fair values of goodwill and other intangible assets had not yet been finalized as of September 30, 2020. On 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 may exist and, if necessary will perform an interim review for potential impairment. During the second quarter of 2020, White Mountains recognized impairments of other intangible assets of $6.2 million . The impairments related to NSM’s write-off of intangible assets in its U.K. vertical. The impairments related to lower premium volumes, including due to the impact of the COVID-19 pandemic, and certain reorganization initiatives in the U.K. vertical. There were no other impairments of other intangible assets and no impairments of goodwill for the three and nine months ended September 30, 2020 and 2019. The following tables present the change in goodwill and other intangible assets for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Millions Goodwill Other Intangible Assets Total Goodwill and Other Intangible Assets Goodwill Other Intangible Assets Total Goodwill and Other Intangible Assets Beginning balance $ 518.2 $ 241.7 $ 759.9 $ 428.6 $ 239.0 $ 667.6 Attribution of acquisition date fair value estimates between goodwill and other intangible assets — — — $ (2.2 ) $ 2.2 — Acquisitions of businesses 14.9 (1) — 14.9 — — — Acquisition of renewal rights — — — — — — Foreign currency translation 7.0 (.1 ) 6.9 (1.6 ) (.5 ) (2.1 ) Amortization — (5.4 ) (5.4 ) — (4.6 ) (4.6 ) Ending balance $ 540.1 $ 236.2 $ 776.3 $ 424.8 $ 236.1 $ 660.9 (1) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisition of Other Operations had not yet been finalized at September 30, 2020. Nine Months Ended September 30, 2020 2019 Millions Goodwill Other Intangible Assets Total Goodwill and Other Intangible Assets Goodwill Other Intangible Assets Total Goodwill and Other Intangible Assets Beginning balance $ 394.7 $ 260.0 $ 654.7 $ 379.9 $ 157.6 $ 537.5 Deconsolidation of MediaAlpha — — — (18.3 ) (23.5 ) (41.8 ) Attribution of acquisition date fair value estimates between goodwill and other intangible assets — — — (29.0 ) 29.0 — Acquisitions of businesses 140.0 (1) — 140.0 93.8 (2) — 93.8 Acquisition of renewal rights — — — — 82.5 82.5 Foreign currency translation 5.2 (.5 ) 4.7 (1.6 ) — (1.6 ) Adjustments to reflect acquisition date fair value .2 — .2 — 5.9 5.9 Impairments — (6.2 ) (6.2 ) — — — Amortization — (17.1 ) (17.1 ) — (15.4 ) (15.4 ) Ending balance $ 540.1 $ 236.2 $ 776.3 $ 424.8 $ 236.1 $ 660.9 (1) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisition of Kingsbridge and Other Operations had not yet been finalized at September 30, 2020. (2) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisitions of Embrace and Other Operations had not yet been finalized at September 30, 2019. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table presents White Mountains’s debt outstanding as of September 30, 2020 and December 31, 2019: Millions September 30, Effective Rate (1) December 31, Effective Rate (1) NSM Bank Facility $ 275.0 7.4% $ 221.3 7.5% Unamortized issuance cost (6.2 ) (3.9 ) NSM Bank Facility, carrying value 268.8 217.4 Other NSM debt, carrying value 1.4 2.8% 1.8 3.0% Kudu Bank Facility 74.0 8.4% 57.0 8.3% Unamortized issuance cost (3.0 ) (3.4 ) Kudu Bank Facility, carrying value 71.0 53.6 Other Operations debt 18.8 10.1% 11.1 8.3% Unamortized issuance cost (.6 ) (.4 ) Other Operations, carrying value 18.2 10.7 Total debt $ 359.4 $ 283.5 (1) Effective rate considers the effect of the debt issuance costs. NSM Bank Facility On April 7, 2020, NSM amended its secured credit facility (the “NSM Bank Facility”) with Ares Capital Corporation in connection with the acquisition of Kingsbridge. Under the amendment, the total commitment increased from $234.0 million , comprised of term loans of $224.0 million and a revolving credit loan commitment of $10.0 million , to $291.4 million , comprised of term loans of $276.4 million , including £42.5 million (approximately $52.4 million based upon the foreign exchange spot rate as of the date of the transaction) in a GBP term loan, and a revolving credit loan commitment of $15.0 million . The term loans under the NSM Bank Facility mature on May 11, 2026, and the revolving loan matures on November 11, 2025. Under GAAP, if the terms of a debt instrument are amended, unless there is greater than 10% change in the expected discounted future cash flows of such instrument, the instrument’s carrying value does not change. White Mountains has determined that the impact of the changes to the terms of the NSM Bank Facility on the expected discounted future cash flows was less than 10% . Interest on the NSM Bank Facility accrues at a floating interest rate equal to the three-month LIBOR plus an applicable margin. In connection with the amendment, the reference rates for USD denominated borrowings increased. The USD-LIBOR rate floor increased is 1.25% and the margin over USD-LIBOR increased from a range of 4.25% to 4.75% to a range of 5.50% to 6.00% . For GBP denominated borrowings, the GBP-LIBOR rate floor is 1.25% and the margin over GBP-LIBOR ranges from 6.0% to 6.5% . The margins over the reference interest rates vary within the range depending on the consolidated total leverage ratio of NSM. As of September 30, 2020 and December 31, 2019, the weighted average interest rate on the NSM Bank Facility was 6.91% and 6.60% . The following table presents the change in debt under the NSM Bank Facility for the three and nine months ended September 30, 2020 and 2019: NSM Bank Facility Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Beginning balance $ 273.4 $ 222.3 $ 221.3 $ 180.4 Term loans Borrowings (1) — — 52.4 42.9 Repayments (.7 ) (.4 ) (1.3 ) (1.4 ) Foreign currency translation 2.3 — 2.6 — Revolving credit loan Borrowings — — — 6.5 Repayments — — — (6.5 ) Ending balance 275.0 221.9 275.0 221.9 (1) Borrowings for the nine months ended September 30, 2020 included $52.4 for the funding of the acquisition of Kingsbridge. Borrowings for the nine months ended September 30, 2019 , included $20.4 and $22.5 for the funding of the acquisitions of Embrace and the Renewal Rights. As of September 30, 2020 , the term loans had an outstanding balance of $275.0 million , including £42.5 million (approximately $52.4 million based upon the foreign exchange spot rate as of the date of the transaction) in a GBP term loan, and the revolving credit loan was undrawn. On June 15, 2018, NSM entered into an interest rate swap agreement to hedge its exposure to interest rate risk on $151.0 million of its USD denominated variable rate term loans. Under the terms of the swap agreement, NSM pays a fixed rate of 2.97% and receives a variable rate, which is reset monthly, based on then-current USD-LIBOR. As of September 30, 2020 , the variable rate received by NSM under the swap agreement was 1.00% . As of September 30, 2020 , the interest rate, including the effect of the swap, for the outstanding term loans of $148.0 million that are hedged by the swap was 8.72% , excluding the effect of debt issuance costs. See Note 7 — “Derivatives” . For the nine months ended September 30, 2020 , the weighted average effective interest rate on the outstanding term loans of $148.0 million that are hedged by the swap, excluding the effect of the swap, was 6.84% . The weighted average effective interest rate on the outstanding term loans of $127.0 million that are unhedged was 7.03% . The effective interest rate on the total outstanding term loans under the NSM Bank Facility of $275.0 million was 6.98% , excluding the effect of debt issuance costs. On June 4, 2020, NSM entered into an interest rate cap agreement to limit its exposure to the risk of interest rate increases on the GBP denominated term loan. The notional amount of the interest rate cap is £42.5 million (approximately $52.4 million based upon the foreign exchange spot rate as the date of the transaction) and the termination date is June 4, 2022. On August 18, 2020, NSM entered into a separate interest rate cap agreement to effectively extend the term of the original interest rate cap agreement by one year . The second interest rate cap agreement has an effective date of June 15, 2022 and a termination date of June 15, 2023. Under the terms of the interest rate cap agreements, if the current GBP-LIBOR at the measurement date exceeds 1.25% , NSM will receive payments from the counterparty equal to the then-current GBP-LIBOR rate, less the 1.25% cap rate. See Note 7 — “Derivatives” . The NSM Bank Facility is secured by all property of the loan parties and contains various affirmative, negative and financial covenants that White Mountains considers to be customary for such borrowings, including a maximum consolidated total leverage ratio covenant. Other NSM Debt NSM also has a secured term loan related to its U.K. vertical. As of September 30, 2020 , the secured term loan had an outstanding balance of $1.6 million and a maturity date of December 31, 2022. Kudu Bank Facility On December 23, 2019, Kudu entered into a secured credit facility (the “Kudu Bank Facility”) with Monroe Capital Management Advisors, LLC to provide funding for distributions to unitholders and fund new investments and related transaction expenses. As of September 30, 2020 , the Kudu Bank Facility has a maximum borrowing capacity of $124.0 million , which is comprised of a revolving credit loan commitment of $5.0 million , an initial term loan of $57.0 million and a delayed-draw term loan of $62.0 million . The term loans and revolving credit loans, under the Kudu Bank Facility, mature in 2025. During the three months ended September 30, 2020 , Kudu had no borrowings or repayments in term loans under the Kudu Bank Facility. During the nine months ended September 30, 2020 , Kudu borrowed $ 17.0 million in term loans under the Kudu Bank Facility and made no repayments. As of September 30, 2020 , the term loans had an outstanding balance of $74.0 million and the revolving credit loan was undrawn. Interest on the Kudu Bank Facility accrues at a floating interest rate equal to the greater of the one-month USD-LIBOR and 1.0% or the Prime Rate plus 1.0% , plus in each case, an applicable margin. The margin over USD-LIBOR may vary between 5.50% and 6.25% and the margin over the Base Rate may vary between 4.50% and 5.25% , depending on the consolidated total leverage ratio of the borrower. The Kudu Bank Facility is secured by all property of the loan parties and contains various affirmative, negative and financial covenants that White Mountains considers to be customary for such borrowings, including a maximum consolidated total leverage ratio covenant. Other Operations Debt As of September 30, 2020 , debt in White Mountains’s Other Operations segment consisted of two secured credit facilities. The first credit facility has a maximum borrowing capacity of $16.3 million , which is comprised of a term loan of $11.3 million , a delayed-draw term loan of $3.0 million and a revolving credit loan commitment of $2.0 million , all with a maturity date of March 12, 2024. As of September 30, 2020 , the term loans had an outstanding balance of $ 9.8 million and the revolving credit loan was undrawn. The second credit facility has a maximum borrowing capacity of $15.0 million , which is comprised of a term loan of $9.0 million , a delayed-draw term loan of $4.0 million and a revolving credit loan commitment of $2.0 million , all with a maturity date of July 2, 2025. As of September 30, 2020, the term loans had an outstanding balance of $9.0 million and the revolving credit loan was undrawn. Compliance At September 30, 2020 , White Mountains was in compliance in all material respects with the covenants under all of its debt instruments. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company and its Bermuda domiciled subsidiaries are not subject to Bermuda income tax under current Bermuda law. In the event there is a change in the current law and taxes are imposed, the Company and its Bermuda domiciled subsidiaries would be exempt from such tax until March 31, 2035, pursuant to the Bermuda Exempted Undertakings Tax Protection Act of 1966. The Company has subsidiaries and branches that operate in various other jurisdictions around the world that are subject to tax in the jurisdictions in which they operate. The jurisdictions in which the Company’s subsidiaries and branches are subject to tax are Barbados, Ireland, Israel, Luxembourg, the United Kingdom and the United States. In the first quarter of 2020, White Mountains adopted ASU 2019-12, Simplifying the Accounting for Income Taxes (ASC 740) (“ASU 2019-12”). For periods subsequent to the adoption of ASU 2019-12, White Mountains records both the tax expense related to BAM’s MSC and the related valuation allowance on such taxes through the non-controlling interest equity. Prior to the adoption of ASU 2019-12, White Mountains recorded the tax expense related to BAM’s MSC directly to non-controlling interest equity, while the valuation allowance on such taxes was recorded through the income statement. White Mountains’s income tax expense related to pre-tax income from continuing operations for the three and nine months ended September 30, 2020 represented an effective tax rate of 30.7% and 33.7% . The effective tax rate was different from the U.S. statutory rate of 21.0% due to tax expense associated with the reorganization of the Guilford Holdings, Inc. consolidated U.S. tax group (“Guilford”) in preparation for the MediaAlpha IPO and state income taxes, partially offset by income generated in jurisdictions with lower tax rates than the United States. The additional tax expense consisted of withholding taxes and the establishment of a partial valuation allowance on deferred tax assets of various service companies, other entities and investments that are included in the Other Operations segment. White Mountains’s income tax expense related to pre-tax income from continuing operations for the three and nine months ended September 30, 2019 represented an effective tax rate of 17.2% and 5.4% . The effective tax rate was different from the U.S. statutory rate of 21.0% due to income generated in jurisdictions with lower tax rates than the United States, state income taxes and a tax benefit recorded at BAM. Also, the effective tax rate for the nine months ended September 30, 2019 was different from the U.S. statutory rate of 21.0% due to the release of a full valuation allowance on the net deferred tax assets of Guilford. Guilford includes Kudu, its investment in MediaAlpha, various service companies and certain other entities and investments that are included in the Other Operations segment. For BAM, member surplus contributions (“MSC”) and the related taxes thereon were recorded directly to non-controlling interest equity, while the valuation allowance on such taxes was recorded through the income statement. For the three and nine months ended September 30, 2019, BAM recorded a tax benefit of $3.6 million and $6.6 million associated with the valuation allowance on taxes related to MSC that is included in the effective tax rate. In arriving at the effective tax rate for the three and nine months ended September 30, 2020 and 2019, White Mountains forecasted all income and expense items including the change in unrealized investment gains (losses) and realized investment gains (losses) for the years ending December 31, 2020 and 2019. White Mountains records a valuation allowance against deferred tax assets if it becomes more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in income tax expense in the period of change. In determining whether or not a valuation allowance, or change therein, is warranted, White Mountains considers factors such as prior earnings history, expected future earnings, carryback and carryforward periods and strategies that if executed would result in the realization of a deferred tax asset. With few exceptions, White Mountains is no longer subject to U.S. federal, state, or non-U.S. income tax examinations by tax authorities for years before 2013. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives NSM Interest Rate Swap On June 15, 2018, NSM entered into an interest rate swap agreement to hedge its exposure to interest rate risk on $151.0 million of its USD denominated variable rate term loans under the NSM Bank Facility. Under the terms of the swap agreement, NSM pays a fixed rate of 2.97% and receives a variable rate, which is reset monthly, based on the then-current USD-LIBOR. As of September 30, 2020 , the variable rate received by NSM under the swap agreement was 1.00% . Over the term of the swap, the notional amount decreases in accordance with the principal repayments NSM expects to make on its term loans. As of September 30, 2020 , the interest rate, including the effect of the swap, for the outstanding term loans of $148.0 million that are hedged by the swap was 8.72% , excluding the effect of debt issuance costs. NSM’s obligations under the swap are secured by the same collateral securing the NSM Bank Facility on a pari passu basis. NSM does not currently hold any collateral deposits from or provide any collateral deposits to the swap counterparty. NSM evaluated the effectiveness of the swap to hedge its interest rate risk associated with its variable rate debt and concluded at the swap inception date that the swap was highly effective in hedging that risk. NSM evaluates the effectiveness of the hedging relationship on an ongoing basis. For the three and nine months ended September 30, 2020 , White Mountains recognized net interest expense of $0.6 million and $1.9 million for the periodic net settlement payments on the swap. For the three and nine months ended September 30, 2019 , White Mountains recognized net interest expense of $0.3 million and $0.6 million . As of September 30, 2020 and December 31, 2019, the estimated fair value of the swap and the accrual of the periodic net settlement payments recorded in other liabilities was $8.9 million and $6.6 million . There was no ineffectiveness in the hedge for the three and nine months ended September 30, 2020 and September 30, 2019 . For the three and nine months ended September 30, 2020 , the $0.5 million and $(2.3) million change in the fair value of the swap is included within White Mountains’s accumulated other comprehensive income (loss). For the three and nine months ended September 30, 2019 , the $(0.8) million and $(5.1) million change in the fair value of the swap is included within White Mountains’s accumulated other comprehensive income (loss). NSM Interest Rate Cap On June 4, 2020, NSM entered into an interest rate cap agreement to limit its exposure to the risk of interest rate increases on the GBP denominated term loan under the NSM Bank Facility. The notional amount of the interest rate cap is £42.5 million (approximately $52.4 million based upon the foreign exchange spot rate as of the date of the transaction) and the termination date is June 4, 2022. On August 18, 2020, NSM entered into a separate interest rate cap agreement to extend the term of the original interest rate cap agreement by one year . The second interest rate cap agreement has an effective date of June 15, 2022 and a termination date of June 15, 2023. NSM paid total initial premiums of approximately $0.1 million for the interest rate caps. Under the terms of the interest rate cap agreements, if the current GBP-LIBOR at the measurement date exceeds 1.25% , NSM will receive payments from the counterparty equal to the then-current GBP-LIBOR rate, less the 1.25% cap rate. As of September 30, 2020, the GBP-LIBOR rate was 0.06% . NSM accounts for the interest rate caps as derivatives at fair value, with changes in fair value recognized in current period earnings within interest expense. For the three months and nine months ended September 30, 2020 , White Mountains recognized a change in fair value of $(0.1) million on the interest rate caps within interest expense. As of September 30, 2020 , the estimated fair value of the caps recorded in other assets was less than $0.1 million |
Municipal Bond Guarantee
Municipal Bond Guarantee | 9 Months Ended |
Sep. 30, 2020 | |
Guarantees [Abstract] | |
Municipal Bond Guarantee Insurance | Municipal Bond Guarantee Insurance In 2012, HG Global was capitalized with $594.5 million from White Mountains and $14.5 million from non-controlling interests to fund the initial capitalization of BAM, a newly formed mutual municipal bond insurer. As of September 30, 2020 , White Mountains owned 96.9% of HG Global’s preferred equity and 88.4% of its common equity. HG Global, together with its subsidiaries, provided the initial capitalization of BAM through the purchase of $503.0 million of BAM Surplus Notes. At inception, BAM and HG Re also entered into a first loss reinsurance treaty (“FLRT”). HG Re provides first loss reinsurance protection up to 15% -of-par outstanding on each municipal bond and surety insured by BAM. For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds. In return, BAM cedes 60% of the risk premium charged for insuring the municipal bond, net of a ceding commission. HG Re’s obligations under the FLRT are limited to the assets in two collateral trusts: a Regulation 114 Trust and a supplemental collateral trust (the “Supplemental Trust” and, together with the Regulation 114 Trust, the “Collateral Trusts”). Losses required to be reimbursed under the FLRT are subject to an aggregate limit equal to the assets held in the Collateral Trusts at any point in time. At inception, the Supplemental Trust contained the original $300.0 million of Series B Notes and $100.0 million of cash and fixed income securities. During 2017, in order to further support BAM’s long-term capital position and business prospects, HG Global agreed to contribute the original $203.0 million of Series A Notes into the Supplemental Trust. At the same time HG Global and BAM also changed the payment terms of the Series B Notes, so that payments reduce principal and accrued interest on a pro rata basis, consistent with the payment terms on the Series A Notes. The terms of the Series B Notes had previously stipulated that payments would first reduce interest owed, then reduce principal owed once all accrued interest had been paid. The New York State Department of Financial Services (“NYDFS”) approved the change during 2017. In connection with the contribution and change in payment terms of the Series B Notes, the Series A Notes were merged into the Series B Notes. On a monthly basis, BAM deposits cash equal to ceded premiums, net of ceding commissions, due to HG Re under the FLRT directly into the Regulation 114 Trust. The Regulation 114 Trust target balance is equal to gross ceded unearned premiums and unpaid ceded loss and LAE expenses, if any. If, at the end of any quarter, the Regulation 114 Trust balance is below the target balance, funds will be withdrawn from the Supplemental Trust and deposited into the Regulation 114 Trust in an amount equal to the shortfall. If, at the end of any quarter, the Regulation 114 Trust balance is above 102% of the target balance, funds will be withdrawn from the Regulation 114 Trust and deposited into the Supplemental Trust. The Supplemental Trust target balance is $603.0 million , less the amount of cash and securities in the Regulation 114 Trust in excess of its target balance (the “Supplemental Trust Target Balance”). If, at the end of any quarter, the Supplemental Trust balance exceeds the Supplemental Trust Target Balance, such excess may be distributed to HG Re. The distribution will be made first as an assignment of accrued interest on the BAM Surplus Notes and second in cash and/or fixed income securities. As the BAM Surplus Notes are repaid over time, the BAM Surplus Notes will be replaced in the Supplemental Trust by cash and fixed income securities. Effective January 1, 2014, HG Global and BAM agreed to change the interest rate on the BAM Surplus Notes for the five years ending December 31, 2018 from a fixed rate of 8.0% to a variable rate equal to the one-year U.S. treasury rate plus 300 basis points, set annually. In 2018, BAM exercised its option to extend the variable rate period for an additional three years . The variable rate was 5.7% for 2019 and is 4.6% for 2020. In January 2020, HG Global and BAM agreed to amend the BAM Surplus Notes to extend the end of the variable interest rate period until December 31, 2024. At the end of the variable rate period, the interest rate will be fixed at the higher of the then current variable rate or 8.0% . BAM is required to seek regulatory approval to pay interest and principal on the BAM Surplus Notes only to the extent that its remaining qualified statutory capital and other capital resources continue to support its outstanding obligations, its business plan and its “AA/stable” rating from Standard & Poor’s. No payment of principal or interest on the BAM Surplus Notes may be made without the approval of the NYDFS. Under GAAP, if the terms of a debt instrument are amended, unless there is greater than 10% change in the expected discounted future cash flows of such instrument, the instrument’s carrying value does not change. White Mountains has determined that the impact of the changes to the terms of the BAM Surplus Notes on the expected discounted future cash flows was less than 10% . Also in January 2020, HG Global and BAM agreed to extend the initial 10 -year term of the FLRT to the end of 2022 and to enter into an excess of loss reinsurance agreement (the “XOLT”). Under the XOLT, HG Re provides last dollar protection for exposures on municipal bonds insured by BAM in excess of NYDFS single issuer limits. The XOLT is subject to an aggregate limit equal to the lesser of $75.0 million or the assets held in the Supplemental Trust at any point in time. In connection with the actions described in the preceding paragraphs, in January 2020, BAM made a $65.0 million special cash payment of principal and interest on the BAM Surplus Notes. Of this payment, $47.9 million was a repayment of principal held in the Supplemental Trust, $0.9 million was a payment of accrued interest held inside the Supplemental Trust and $16.2 million was a payment of accrued interest held outside the Supplemental Trust. As of September 30, 2020 and December 31, 2019 , the Collateral Trusts held assets of $813.8 million and $786.7 million , which included $409.7 million and $457.6 million of BAM Surplus Notes and $4.7 million and $7.5 million of interest receivable on the BAM Surplus Notes. As of September 30, 2020 and December 31, 2019, total interest receivable on the BAM Surplus Notes was $159.8 million and $162.7 million . The following table presents a schedule of BAM’s insured obligations as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Contracts outstanding 10,495 8,987 Remaining weighted average contract period outstanding (in years) 10.7 10.7 Contractual debt service outstanding (in millions): Principal $ 70,954.1 $ 62,250.5 Interest 34,842.8 31,799.7 Total debt service outstanding $ 105,796.9 $ 94,050.2 Gross unearned insurance premiums (in millions) $ 226.9 $ 198.4 The following table presents a schedule of BAM’s future premium revenues as of September 30, 2020 : Millions September 30, 2020 October 1, 2020 - December 31, 2020 $ 5.3 January 1, 2021 - March 31, 2021 5.3 April 1, 2021 - June 30, 2021 5.2 July 1, 2021 - September 30, 2021 5.1 October 1, 2021 - December 31, 2021 5.1 Total 2021 20.7 2022 19.6 2023 18.4 2024 17.2 2025 15.9 2026 and thereafter 129.8 Total gross unearned insurance premiums $ 226.9 The following table presents a schedule of net written premiums and net earned premiums included in White Mountains’s HG Global/BAM segment for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended September 30, Nine Months Ended September 30, Millions 2020 2019 2020 2019 Written premiums: Direct $ 14.4 $ 10.2 $ 45.5 $ 30.6 Assumed — 10.6 .1 10.6 Gross written premiums $ 14.4 $ 20.8 $ 45.6 $ 41.2 Earned premiums: Direct $ 5.3 $ 4.4 $ 14.5 $ 11.9 Assumed .9 .8 2.7 1.8 Gross earned premiums $ 6.2 $ 5.2 $ 17.2 $ 13.7 In April 2018, BAM entered into a collateralized financial guarantee excess of loss reinsurance agreement with Fidus Re, Ltd. (“Fidus Re”), a Bermuda based special purpose insurer created solely to provide reinsurance protection to BAM. Fidus Re was capitalized by the issuance of $100.0 million of insurance linked securities. The proceeds from issuance were placed in a collateral trust supporting Fidus Re’s obligations to BAM. The insurance linked securities were issued by Fidus Re with an initial term of twelve years and are callable five years after the date of issuance. Fidus Re reinsures 90% of aggregate losses exceeding $165.0 million on a portion of BAM’s financial guarantee portfolio up to a total reimbursement of $100.0 million . The aggregate loss limit under the agreement is $276.1 million . The agreement is accounted for using deposit accounting and any related financing expenses are recorded in general and administrative expenses as the agreement does not meet the risk transfer requirements necessary to be accounted for as reinsurance. In September 2019, BAM entered into facultative quota share reinsurance agreements under which it assumed a portfolio of municipal bond guarantee contracts with a par value of $1.1 billion . In the second quarter of 2020, BAM modified the facultative quota share reinsurance agreement to assume additional municipal bond guarantee contracts with a par value of $36.9 million . In November 2018, BAM entered into a 100% quota share facultative quota share reinsurance agreement under which it assumed a portfolio of municipal bond guarantee contracts with a par value of $2.2 billion . None of the contracts assumed were non-performing and no loss reserves have been established for any of the contracts, either as of the transaction dates or as of September 30, 2020. The agreement, which covers future claims exposure only, meets the risk transfer criteria under ASC 944-20, Insurance Activities |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share White Mountains calculates earnings per share using the two-class method, which allocates earnings between common shares and unvested restricted common shares. Both classes of shares participate equally in dividends and earnings on a per share basis. Basic earnings per share amounts are based on the weighted average number of common shares outstanding adjusted for unvested restricted common shares. The following table presents the Company’s computation of earnings per share from continuing operations for the three and nine months ended September 30, 2020 and 2019 . See Note 17 — “Held for Sale and Discontinued Operations” . Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019 Basic and diluted earnings per share numerators (in millions): Net income attributable to White Mountains’s common shareholders $ 232.9 $ 48.7 $ 219.5 $ 353.6 Less: total (loss) income from discontinued operations, net of tax (.7 ) .9 (.8 ) 1.6 Net income from continuing operations attributable to White Mountains’s common shareholders $ 233.6 $ 47.8 $ 220.3 $ 352.0 Allocation of earnings to participating restricted common shares (1) (3.2 ) (.7 ) (2.9 ) (4.4 ) Basic and diluted earnings per share numerators $ 230.4 $ 47.1 $ 217.4 $ 347.6 Basic earnings per share denominators (in thousands): Total average common shares outstanding during the period 3,101.8 3,185.4 3,129.0 3,180.4 Average unvested restricted common shares (2) (43.1 ) (43.4 ) (40.0 ) (39.6 ) Basic earnings per share denominator 3,058.7 3,142.0 3,089.0 3,140.8 Diluted earnings per share denominator (in thousands): Total average common shares outstanding during the period 3,101.8 3,185.4 3,129.0 3,180.4 Average unvested restricted common shares (2) (43.1 ) (43.4 ) (40.0 ) (39.6 ) Diluted earnings per share denominator 3,058.7 3,142.0 3,089.0 3,140.8 Basic and diluted earnings per share (in dollars) - continuing operations: Distributed earnings - dividends declared and paid $ — $ — $ 1.00 $ 1.00 Undistributed earnings 75.32 15.01 69.40 109.67 Basic and diluted earnings per share $ 75.32 $ 15.01 $ 70.40 $ 110.67 (1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities. (2) Restricted shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans”. The following table presents the undistributed net earnings (losses) from continuing operations for the three and nine months ended September 30, 2020 and 2019 . See Note 17 — “Held for Sale and Discontinued Operations” . Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Undistributed net earnings - continuing operations: Net income attributable to White Mountains’s common shareholders, net of restricted common share amounts $ 230.4 $ 47.1 $ 217.4 $ 347.6 Dividends declared, net of restricted common share amounts (1) — — (3.1 ) (3.2 ) Total undistributed net earnings, net of restricted common share amounts $ 230.4 $ 47.1 $ 214.3 $ 344.4 (1) Restricted shares issued by White Mountains receive dividends, and are therefore considered participating securities. |
Employee Share-Based Incentive
Employee Share-Based Incentive Compensation Plans | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Share-Based Incentive Compensation Plans | Employee Share-Based Incentive Compensation Plans White Mountains’s Long-Term Incentive Plan (the “WTM Incentive Plan”) provides for grants of various types of share-based and non-share-based incentive awards to key employees of White Mountains. As of September 30, 2020 , White Mountains’s share-based compensation incentive awards consist of performance shares and restricted shares. Performance Shares Performance shares are designed to reward employees for meeting company-wide performance targets. Performance shares are conditional grants of a specified maximum number of common shares or an equivalent amount of cash. Awards generally vest at the end of a three-year service period, are subject to the attainment of pre-specified performance goals, and are valued based on the market value of common shares at the time awards are paid. Performance shares earned under the WTM Incentive Plan are typically paid in cash but may be paid in common shares. Compensation expense is recognized for the vested portion of the awards over the related service periods. The level of payout ranges from zero to two times the number of shares initially granted, depending on White Mountains’s financial performance. Performance shares become payable at the conclusion of a performance cycle (typically 3 years ) if pre-defined financial targets are met. The performance measures used for determining performance share payouts are growth in White Mountains’s adjusted book value per share and intrinsic value per share. Intrinsic value per share is generally calculated by adjusting adjusted book value per share for differences between the adjusted book value of certain assets and liabilities and White Mountains’s estimate of their underlying intrinsic values. The following table presents the performance share activity for the three and nine months ended September 30, 2020 and 2019 for performance shares granted under the WTM Incentive Plan: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Millions, except share amounts Target Performance Accrued Expense Target Performance Accrued Expense Target Performance Shares Outstanding Accrued Expense Target Performance Accrued Expense Beginning of period 42,458 $ 15.8 42,473 $ 30.8 42,473 $ 43.7 40,616 $ 31.7 Shares paid (1) — — — — (14,070 ) (27.7 ) (13,715 ) (18.1 ) New grants — — — — 14,055 — 15,600 — Forfeitures and cancellations (2) — (.3 ) — — — .1 (28 ) — Expense recognized — 13.6 — 5.6 — 13.0 — 22.8 End of period 42,458 $ 29.1 42,473 $ 36.4 42,458 $ 29.1 42,473 $ 36.4 (1) WTM performance share payments in 2020 for the 2017-2019 performance cycle, which were paid in cash in March 2020, ranged from 174% to 180% of target. WTM performance share payments in 2019 for the 2016-2018 performance cycle, which were paid in cash in March 2019, ranged from 139% to 166% of target. (2) Amounts include changes in assumed forfeitures, as required under GAAP. During the nine months ended September 30, 2020 , White Mountains granted 14,055 performance shares for the 2020-2022 performance cycle. During the nine months ended September 30, 2019 , White Mountains granted 15,600 performance shares for the 2019-2021 performance cycle. For performance shares earned in the 2017-2019 and 2016-2018 performance cycles, all performance shares earned were settled in cash. If all the outstanding WTM performance shares had vested on September 30, 2020 , the total additional compensation cost to be recognized would have been $19.4 million , based on accrual factors (common share price and payout assumptions) as of September 30, 2020 . The following table presents performance shares outstanding and accrued expense for performance shares awarded under the WTM Incentive Plan as of September 30, 2020 for each performance cycle: Nine Months Ended September 30, 2020 Millions, except share amounts Target Performance Shares Outstanding Accrued Expense Performance cycle: 2018 – 2020 13,450 $ 15.4 2019 – 2021 15,600 10.6 2020 – 2022 14,055 3.6 Sub-total 43,105 29.6 Assumed forfeitures (647 ) (.5 ) September 30, 2020 42,458 $ 29.1 Restricted Shares Restricted shares are grants of a specified number of common shares that generally vest at the end of a three-year service period. The following table presents the unrecognized compensation cost associated with the outstanding restricted share awards for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Millions, except share amounts Restricted Unamortized Fair Value Restricted Unamortized Restricted Unamortized Issue Date Restricted Unamortized Issue Date Non-vested, Beginning of period 43,105 $ 23.0 43,395 $ 21.9 43,395 $ 16.7 41,510 $ 12.5 Issued — — — — 14,055 15.1 15,600 14.5 Vested — — — — (14,345 ) — (13,715 ) — Forfeited — — — — — — — — Expense recognized — (3.6 ) — (2.6 ) — (12.4 ) — (7.7 ) End of period 43,105 $ 19.4 43,395 $ 19.3 43,105 $ 19.4 43,395 $ 19.3 During the nine months ended September 30, 2020, White Mountains issued 14,055 restricted shares that vest on January 1, 2023. During the nine months ended September 30, 2019 , White Mountains issued 15,600 restricted shares that vest on January 1, 2022. The unamortized issue date fair value as of September 30, 2020 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases White Mountains has entered into lease agreements, primarily for office space. These leases are classified as operating leases, with lease expense recognized on a straight-line basis over the term of the lease. Lease incentives, such as free rent or landlord reimbursements for leasehold improvements, are recognized at lease inception and amortized on a straight-line basis over the term of the lease. Lease expense and the amortization of leasehold improvements are recognized within general and administrative expenses. Lease payments related to options to extend or renew the lease term are excluded from the calculation of lease liabilities unless White Mountains is reasonably certain of exercising those options. On January 1, 2019, White Mountains adopted ASU 2016-02, Leases (ASC 842). See Note 1 — “Basis of Presentation and Significant Accounting Policies” — Basis of Presentation and Significant Accounting Policies . Prior to adoption of ASU 2016-02, White Mountains recognized lease expense for operating leases on a straight-line basis, but did not recognize lease assets or liabilities on its consolidated balance sheet. Upon adoption on January 1, 2019, White Mountains recognized lease right-of-use (“ROU”) assets of $23.2 million and lease liabilities of $23.2 million , within other assets and liabilities. As of September 30, 2020 and December 31, 2019, the ROU asset was $38.3 million and $22.6 million and lease liabilities were $ 39.1 million and $22.8 million . The following table summarizes net lease expense recognized in White Mountains’s consolidated statement of operations for the three and nine months ended September 30, 2020 and 2019: Millions Three Months Ended September 30, Nine Months Ended September 30, Lease Cost 2020 2019 2020 2019 Lease cost $ 1.6 $ 1.9 $ 5.7 $ 5.4 Less: sublease income .1 .1 .3 .3 Net lease cost $ 1.5 $ 1.8 $ 5.4 $ 5.1 The following table presents the contractual maturities of the lease liabilities associated with White Mountains’s operating lease agreements as of September 30, 2020 : Millions As of September 30, 2020 Remainder of 2020 $ 1.8 2021 7.6 2022 7.1 2023 6.9 2024 5.7 Thereafter 17.2 Total undiscounted lease payments 46.3 Less: present value adjustment 7.2 Operating lease liability $ 39.1 The following tables present lease related assets and liabilities by reportable segment as of September 30, 2020 and December 31, 2019: As of September 30, 2020 Millions HG/BAM NSM Kudu Other Operations Total Weighted Average Incremental Borrowing Rate (1) ROU lease asset $ 9.9 $ 17.0 $ 2.1 $ 9.3 $ 38.3 4.6% Lease liability $ 9.9 $ 17.0 $ 2.1 $ 10.1 $ 39.1 (1) The present value of the remaining lease payments was determined by discounting the lease payments using the incremental borrowing rate. As of December 31, 2019 Millions HG/BAM NSM Kudu Other Operations Total Weighted Average Incremental Borrowing Rate (1) ROU lease asset $ 10.4 $ 4.8 $ 2.3 $ 5.1 $ 22.6 4.6% Lease liability $ 10.4 $ 4.8 $ 2.3 $ 5.3 $ 22.8 (1) The present value of the remaining lease payments was determined by discounting the lease payments using the incremental borrowing rate. |
Non-controlling Interests
Non-controlling Interests | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | Non-controlling Interests Non-controlling interests consist of the ownership interests of non-controlling shareholders in consolidated entities and are presented separately on the balance sheet. The following table presents the balance of non-controlling interests included in White Mountains’s total equity and the related percentage of each consolidated entity’s total equity owned by non-controlling shareholders as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 $ in Millions Non-controlling Percentage Non-controlling Equity Non-controlling Percentage Non-controlling Equity Non-controlling interests, excluding BAM HG Global 3.1 % $ 14.1 3.1 % $ 14.4 NSM 3.4 % 16.9 3.6 % 14.9 Kudu .8 % 2.2 .9 % 2.2 Other various (1.3 ) various (1.6 ) Total, excluding BAM 31.9 29.9 BAM 100.0 % (130.4 ) 100.0 % (146.7 ) Total non-controlling interests $ (98.5 ) $ (116.8 ) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Informartion | Segment Information As of September 30, 2020 , White Mountains conducted its operations through four segments: (1) HG Global/BAM, (2) NSM, (3) Kudu and (4) Other Operations. In addition, MediaAlpha was consolidated as a reportable segment until the date of the MediaAlpha Transaction. As a result of the Kudu Transaction, White Mountains began consolidating Kudu in its financial statements in the second quarter of 2019. See Note 2 — “Significant Transactions” . As a result of the MediaAlpha Transaction, White Mountains no longer consolidated MediaAlpha, and consequently it was no longer a reportable segment. White Mountains’s segment disclosures for the three months ended March 31, 2019 include MediaAlpha’s results of operations for the period from January 1, 2019 to February 26, 2019, the date of the MediaAlpha Transaction. See Note 2 — “Significant Transactions” . White Mountains has made its segment determination based on consideration of the following criteria: (i) the nature of the business activities of each of the Company’s subsidiaries and affiliates, (ii) the manner in which the Company’s subsidiaries and affiliates are organized, (iii) the existence of primary managers responsible for specific subsidiaries and affiliates, and (iv) the organization of information provided to the chief operating decision makers and the Board of Directors. Significant intercompany transactions among White Mountains’s segments have been eliminated herein. The following tables present the financial information for White Mountains’s segments for the three and nine months ended September 30, 2020 and 2019: Millions HG Global/ BAM NSM Kudu Other Operations Total Three Months Ended September 30, 2020 Earned insurance premiums $ 6.2 $ — $ — $ — $ 6.2 Net investment income 4.7 — 6.4 60.1 71.2 Net realized and unrealized investment gains 3.2 — 9.8 293.6 306.6 Advertising and commission revenues — 58.2 — 2.1 60.3 Other revenue .4 12.5 .1 2.2 15.2 Total revenues 14.5 70.7 16.3 358.0 459.5 Insurance acquisition expenses 1.6 — — — 1.6 Other underwriting expenses .1 — — — .1 Cost of sales — — — 2.3 2.3 General and administrative expenses 13.9 42.9 2.2 44.3 103.3 Broker commission expense — 17.1 — — 17.1 Change in fair value of contingent consideration — .7 — — .7 Amortization of other intangible assets — 5.1 .1 .2 5.4 Interest expense — 6.1 1.4 .3 7.8 Total expenses 15.6 71.9 3.7 47.1 138.3 Pre-tax (loss) income $ (1.1 ) $ (1.2 ) $ 12.6 $ 310.9 $ 321.2 Millions HG Global/ BAM NSM Kudu Other Operations Total Nine Months Ended September 30, 2020 Earned insurance premiums $ 17.2 $ — $ — $ — $ 17.2 Net investment income 15.1 — 19.3 79.3 113.7 Net realized and unrealized investment gains 23.7 — 1.5 277.6 302.8 Advertising and commission revenues — 174.2 — 6.1 180.3 Other revenue 2.1 37.6 .2 6.0 45.9 Total revenues 58.1 211.8 21.0 369.0 659.9 Insurance acquisition expenses 5.4 — — — 5.4 Other underwriting expenses .3 — — — .3 Cost of sales — — — 6.5 6.5 General and administrative expenses 41.1 131.0 7.5 87.1 266.7 Broker commission expense — 56.4 — — 56.4 Change in fair value of contingent consideration — (1.6 ) — — (1.6 ) Amortization of other intangible assets — 16.2 .3 .6 17.1 Interest expense — 16.1 4.3 .8 21.2 Total expenses 46.8 218.1 12.1 95.0 372.0 Pre-tax income (loss) $ 11.3 $ (6.3 ) $ 8.9 $ 274.0 $ 287.9 Millions HG Global/BAM NSM Kudu Other Operations Total Three Months Ended September 30, 2019 Earned insurance premiums $ 5.2 $ — $ — $ — $ 5.2 Net investment income 5.4 — 4.6 8.4 18.4 Net realized and unrealized investment gains 7.1 — 2.7 57.2 67.0 Advertising and commission revenues — 49.4 — 1.9 51.3 Other revenue .3 10.5 .2 2.6 13.6 Total revenues 18.0 59.9 7.5 70.1 155.5 Insurance acquisition expenses 1.4 — — — 1.4 Other underwriting expenses .1 — — — .1 Cost of sales — — — 2.3 2.3 General and administrative expenses 12.5 33.3 4.5 27.7 78.0 Broker commission expense — 15.3 — — 15.3 Change in fair value of contingent consideration — (2.0 ) — — (2.0 ) Amortization of other intangible assets — 4.4 .2 — 4.6 Interest expense — 4.4 — .3 4.7 Total expenses 14.0 55.4 4.7 30.3 104.4 Pre-tax income $ 4.0 $ 4.5 $ 2.8 $ 39.8 $ 51.1 Millions HG Global/ BAM NSM Kudu (1) MediaAlpha (2) Other Operations Total Nine Months Ended September 30, 2019 Earned insurance premiums $ 13.7 $ — $ — $ — $ — $ 13.7 Net investment income 16.1 — 8.6 — 30.7 55.4 Net realized and unrealized investment gains 30.4 — 3.1 — 199.6 233.1 Realized gain and unrealized investment gain from the MediaAlpha Transaction — — — — 182.2 182.2 Advertising and commission revenues — 147.6 — 48.8 4.5 200.9 Other revenue 1.3 27.7 .2 — 3.6 32.8 Total revenues 61.5 175.3 11.9 48.8 420.6 718.1 Insurance acquisition expenses 4.1 — — — — 4.1 Other underwriting expenses .3 — — — — .3 Cost of sales — — — 40.6 5.0 45.6 General and administrative expenses 39.1 91.4 6.7 12.5 87.2 236.9 Broker commission expense — 48.9 — — — 48.9 Change in fair value of contingent consideration earnout liabilities — 5.6 — — — 5.6 Amortization of other intangible assets — 13.5 .2 1.6 .1 15.4 Interest expense — 12.2 — .2 .3 12.7 Total expenses 43.5 171.6 6.9 54.9 92.6 369.5 Pre-tax income (loss) $ 18.0 $ 3.7 $ 5.0 $ (6.1 ) $ 328.0 $ 348.6 (1) Kudu's results are from April 4, 2019, the date White Mountains began consolidating Kudu, to September 30, 2019. (2) MediaAlpha’s results are from January 1, 2019 to February 26, 2019, the date of the MediaAlpha Transaction. In compliance with ASC 606, Revenues from Contracts with Customers, the following tables present White Mountains’s total revenues by revenue source for the three months ended September 30, 2020 and 2019: Millions HG Global/BAM NSM Kudu Other Operations Total Three Months Ended September 30, 2020 Commission and other revenue Specialty Transportation $ — $ 21.9 $ — $ — $ 21.9 Real Estate — 6.0 — — 6.0 Social Services — 8.6 — — 8.6 Pet — 14.7 — — 14.7 United Kingdom — 13.9 — — 13.9 Other — 5.6 — 2.1 7.7 Total commission and other revenue — 70.7 — 2.1 72.8 Product revenues — — — 2.0 2.0 Revenues from contracts with customers — 70.7 — 4.1 74.8 Other revenues (1) 14.5 — 16.3 353.9 384.7 Total revenues $ 14.5 $ 70.7 $ 16.3 $ 358.0 $ 459.5 (1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers. Millions HG Global/BAM NSM Kudu Other Operations Total Nine Months Ended September 30, 2020 Commission and other revenue Specialty Transportation $ — $ 66.1 $ — $ — $ 66.1 Real Estate — 32.7 — — 32.7 Social Services — 22.2 — — 22.2 Pet — 39.8 — — 39.8 United Kingdom (2) — 36.3 — — 36.3 Other — 14.7 — 6.1 20.8 Total commission and other revenue — 211.8 — 6.1 217.9 Product revenues — — — 6.4 6.4 Revenues from contracts with customers — 211.8 — 12.5 224.3 Other revenues (1) 58.1 — 21.0 356.5 435.6 Total revenues $ 58.1 $ 211.8 $ 21.0 $ 369.0 $ 659.9 (1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers. (2) Includes the results of Kingsbridge from April 7, 2020, the date of the Kingsbridge transaction. Millions HG Global/BAM NSM Kudu Other Operations Total Three Months Ended September 30, 2019 Commission and other revenue Specialty Transportation $ — $ 20.6 $ — $ — $ 20.6 Real Estate — 4.9 — — 4.9 Social Services — 7.4 — — 7.4 Pet — 10.4 — — 10.4 United Kingdom — 11.2 — — 11.2 Other — 5.4 — 1.9 7.3 Total commission and other revenue — 59.9 — 1.9 61.8 Products — — — 2.5 2.5 Total revenues from contracts with customers — 59.9 — 4.4 64.3 Other revenues (1) 18.0 — 7.5 65.7 91.2 Total revenues $ 18.0 $ 59.9 $ 7.5 $ 70.1 $ 155.5 (1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers. Millions HG Global/BAM NSM Kudu MediaAlpha Other Operations Total Nine Months Ended September 30, 2019 Commission and other revenue Specialty Transportation $ — $ 60.3 $ — $ — $ — $ 60.3 Real Estate — 25.4 — — — 25.4 Social Services — 19.7 — — — 19.7 Pet — 19.9 — — — 19.9 United Kingdom — 35.5 — — — 35.5 Other — 14.5 — — 4.5 19.0 Total commission and other revenue — 175.3 — — 4.5 179.8 Advertising revenues — — — 48.8 — 48.8 Revenues from contracts with customers — 175.3 — 48.8 4.5 228.6 Products — — — — 3.1 3.1 Total revenues from contracts with customers — 175.3 — 48.8 7.6 231.7 Other revenues (1) 61.5 — 11.9 — 413.0 486.4 Total revenues $ 61.5 $ 175.3 $ 11.9 $ 48.8 $ 420.6 $ 718.1 (1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers. |
Equity-Method Eligible Investme
Equity-Method Eligible Investments | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity-Method Eligible Investments | Equity-Method Eligible Investments White Mountains’s equity method eligible investments include certain unconsolidated entities, Kudu’s Participation Contracts, private equity funds and hedge funds in which White Mountains has the ability to exert significant influence over the investee’s operating and financial policies. The following table presents the carrying values of White Mountains’s equity method eligible investments recorded within other long-term investments as of September 30, 2020 and December 31, 2019: Millions September 30, 2020 December 31, 2019 Equity method eligible investments, at fair value $ 1,087.0 $ 761.7 Other, at fair value (1) 84.2 94.6 Total other long-term investments $ 1,171.2 $ 856.3 (1) Consists of other long-term investments that are not equity method eligible. The following table presents White Mountains’s significant equity method eligible investments as of September 30, 2020 and December 31, 2019: Basic Ownership Interest Investee September 30, 2020 December 31, 2019 Instrument Held PassportCard/DavidShield (1) 53.8% 50.0% Common shares MediaAlpha 48.3% 48.3% Units durchblicker 45.0% 45.0% Common shares Elementum 30.0% 30.0% Limited partnership interest Tuckerman Capital Funds 14.5 - 62.2% 17.5 - 62.4% Limited and general partnership interests Enlightenment Capital Funds 9.6 - 66.7% 10.0 - 38.4% Limited and general partnership interests JAM Partners L.P. — 11.1% Limited partnership interest Kudu Participation Contracts 3.2 - 35.0% 3.2 - 30.0% Revenue and earnings participation contracts (1) During the nine months ending September 30, 2020, White Mountains made an additional $15 million investment in PassportCard/DavidShield. See Note 2 — “Significant Transactions” . As a result of the MediaAlpha Transaction, White Mountains reduced its ownership interest of the basic units outstanding of MediaAlpha from 61.0% to 48.3% ( 58.9% to 42.0% on a fully diluted, fully converted basis). White Mountains’s remaining ownership interest in MediaAlpha no longer meets the criteria for a controlling ownership interest and, accordingly, White Mountains deconsolidated MediaAlpha as of February 26, 2019. Upon deconsolidation, White Mountains’s investment in MediaAlpha met the criteria to be accounted for under the equity method or under the fair value option. White Mountains elected the fair value option and the investment in MediaAlpha was initially measured at its estimated fair value of $114.7 million as of March 31, 2019, with the change in fair value of $114.7 million recognized as an unrealized investment gain. For the three and nine months ended September 30, 2019, White Mountains recognized $35.3 million and $150.0 million in unrealized investment gains associated with its investment in MediaAlpha including changes in the fair value of White Mountains’s investment in MediaAlpha subsequent to the MediaAlpha Transaction. For the three and nine months ended September 30, 2020 , White Mountains recognized $250.0 million and $295.0 million in unrealized investment gains associated with its investment in MediaAlpha. On October 30, 2020, MediaAlpha completed an initial public offering. As a result, the valuation of White Mountains’s investment in MediaAlpha will be based on the market value of MediaAlpha’s common stock in periods subsequent to the IPO. See Note 18 — “Subsequent Events”. White Mountains’s consolidated statement of comprehensive income and its segment disclosures include MediaAlpha’s results of operations for the period from January 1, 2019 through February 26, 2019. See Note 2 — “Significant Transactions”. For the period from February 26, 2019 to September 30, 2019, MediaAlpha was considered a significant subsidiary. For the period from February 26, 2019 to September 30, 2019, MediaAlpha’s total revenues, total expenses, and net income were $233.1 million , $220.6 million , and $12.5 million . The following tables present summarized financial information for MediaAlpha which is considered a significant subsidiary for the nine months ending September 30, 2020: Millions September 30, 2020 December 31, 2019 Balance sheet data: Total assets $ 135.7 $ 105.4 Total liabilities $ 460.8 $ 144.9 Three Months Ended Nine Months Ended September 30, September 30, Millions 2020 2019 2020 2019 Income statement data: Total revenues $ 151.5 $ 110.4 $ 394.6 $ 281.9 Total expenses $ (144.1 ) $ (102.6 ) $ (368.2 ) $ (274.5 ) Net income $ 7.4 $ 7.8 $ 26.4 $ 7.4 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments White Mountains records its financial instruments at fair value with the exception of debt obligations, which are recorded as debt at face value less unamortized original issue discount. The following table presents the fair value and carrying value of this financial instrument as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Millions Fair Value Carrying Value Fair Value Carrying Value NSM Bank Facility $ 276.1 $ 268.8 $ 221.2 $ 217.4 Other NSM debt $ 1.6 $ 1.4 $ 1.7 $ 1.8 Kudu Bank Facility $ 74.4 $ 71.0 $ 53.6 (1) $ 53.6 Other Operations debt $ 18.5 $ 18.2 $ 11.3 $ 10.7 (1) White Mountains measured the fair value of the Kudu Bank Facility debt at the carrying value as a result of the debt being acquired on December 23, 2019. See Note 5 — “Debt” . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Contingencies White Mountains is subject to litigation and arbitration in the normal course of business. White Mountains considers the requirements of ASC 450 when evaluating its exposure to litigation and arbitration. ASC 450 requires that accruals be established for litigation and arbitration if it is probable that a loss has been incurred and it can be reasonably estimated. ASC 450 also requires that litigation and arbitration be disclosed if it is probable that a loss has been incurred or if there is a reasonable possibility that a loss may have been incurred. White Mountains does not have any current litigation that may have a material adverse effect on White Mountains’s financial condition, results of operations or cash flows. The following description presents significant legal contingencies, ongoing non-claims related litigation or arbitration as of September 30, 2020 : Esurance On October 7, 2011, the Company completed the sale of its Esurance Holdings, Inc. and its subsidiaries and Answer Financial Inc. and its subsidiaries (collectively, “Esurance”) to The Allstate Corporation (“Allstate”) pursuant to a Stock Purchase Agreement dated as of May 17, 2011. Subject to specified thresholds and limits, the Company remains contingently liable to Allstate for specified matters related to the pre-closing period, including (a) losses of Esurance arising from extra-contractual claims and claims in excess of policy limits, (b) certain corporate reorganizations effected to remove entities from Esurance that were not being sold in the transaction, and (c) certain tax matters, including certain net operating losses being less than stated levels. Sirius Group Tax Contingency A subsidiary of Sirius International Insurance Group, Ltd. (“Sirius Group”), which was sold by White Mountains in 2016, has been denied interest deductions by the Swedish Tax Authority (“STA”) for tax years 2013-2016. In October 2018, the Swedish Administrative Court ruled against Sirius Group on its appeal of the Swedish Tax Agency’s denial of certain interest deductions relating to periods prior to the sale of Sirius Group to CM International Holding PTE Ltd, the Singapore-based investment arm of China Minsheng Investment Corp., Ltd. In connection with the sale, White Mountains indemnified Sirius Group against the loss of certain tax attributes, including those related to these interest deductions. As of September 30, 2020 and December 31, 2019 , White Mountains reported a liability of $17.2 million and $16.5 million , reflecting the value of these interest deductions. For both the three and nine months ended September 30, 2020 , the change in the liability of $0.7 million was related to foreign currency translation and included within net loss on sale of discontinued operations. For the three and nine months ended September 30, 2019 , the decrease in the liability of $0.9 million and $1.6 million was related to foreign currency translation and included within net gain on sale of discontinued operations. Sirius Group has appealed the decision to the Swedish Administrative Court of Appeal. |
Held for Sale and Discontinued
Held for Sale and Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Held for Sale and Discontinued Operations | Held for Sale and Discontinued Operations Sirius Group As of September 30, 2020 and December 31, 2019, White Mountains recorded a liability of $17.2 million and $16.5 million , related to the Sirius Group tax contingency. For both the three and nine months ended September 30, 2020 , the change in the liability of $0.7 million was related to foreign currency translation and included within net loss on sale of discontinued operations. For the three and nine months ended September 30, 2019 , the decrease change in the liability of $0.9 million and $1.6 million was related to foreign currency translation and included within net gain on sale of discontinued operations. See Note 16 — “Commitments and Contingencies” . Other As of December 31, 2017, White Mountains has classified its Guilford, Connecticut property, which consists of an office building and adjacent land, as held for sale. On August 20, 2020, the office building was sold for $2.3 million . For both the three and nine months ended September 30, 2020 , White Mountains recognized $0.1 million of realized loss on the sale of the office building. As of September 30, 2020 , the adjacent land has been measured at its estimated fair value, net of costs of disposal, of $0.7 million . As of December 31, 2019 , the property was measured at its estimated fair value, net of costs of disposal, of $3.0 million . Earnings Per Share from Discontinued Operations White Mountains calculates earnings per share using the two-class method, which allocates earnings between common and unvested restricted common shares. Both classes of shares participate equally in earnings on a per share basis. Basic earnings per share amounts are based on the weighted average number of common shares outstanding adjusted for unvested restricted common shares. Diluted earnings per share amounts are also impacted by the net effect of potentially dilutive common shares outstanding. The following table presents the Company’s computation of earnings per share for discontinued operations for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019 Basic and diluted earnings per share numerators (in millions): Net income attributable to White Mountains’s common shareholders $ 232.9 $ 48.7 $ 219.5 $ 353.6 Less: total income from continuing operations, net of tax 233.6 47.8 220.3 352.0 Net (loss) income from discontinued operations attributable to White Mountains’s common shareholders $ (.7 ) $ .9 $ (.8 ) $ 1.6 Allocation of earnings to participating restricted common shares (1) — — — — Basic and diluted (losses) earnings per share numerators (2) $ (.7 ) $ .9 $ (.8 ) $ 1.6 Basic earnings per share denominators (in thousands): Total average common shares outstanding during the period 3,101.8 3,185.4 3,129.0 3,180.4 Average unvested restricted common shares (3) (43.1 ) (43.4 ) (40.0 ) (39.6 ) Basic earnings per share denominator 3,058.7 3,142.0 3,089.0 3,140.8 Diluted earnings per share denominator (in thousands): Total average common shares outstanding during the period 3,101.8 3,185.4 3,129.0 3,180.4 Average unvested restricted common shares (3) (43.1 ) (43.4 ) (40.0 ) (39.6 ) Diluted earnings per share denominator 3,058.7 3,142.0 3,089.0 3,140.8 Basic and diluted (losses) earnings per share (in dollars) - discontinued operations: $ (.23 ) $ .28 $ (.26 ) $ .50 (1) Restricted shares issued by White Mountains contain dividend participation features, and therefore, are considered participating securities. (2) Net earnings attributable to White Mountains’s common shareholders, net of restricted share amounts, is equal to undistributed earnings for the three and nine months ended September 30, 2020 and 2019 . (3) Restricted common shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans” . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events MediaAlpha IPO On October 30, 2020, MediaAlpha completed an initial public offering. At the IPO price of $19.00 per share, MediaAlpha had an equity market capitalization of approximately $1.2 billion and an enterprise valuation of approximately $1.4 billion . In the offering, White Mountains sold 3,609,894 shares and received total proceeds of $63.8 million . Following the completion of the MediaAlpha IPO, White Mountains owns 20,532,202 MediaAlpha shares, representing a 32.3% fully-diluted ownership interest. At the IPO price of $19.00 per share, the value of White Mountains’s remaining investment in MediaAlpha was $390.1 million . At the October month-end closing price of $33.83 per share, the value of White Mountains’s investment in MediaAlpha was $694.6 million . Agreement to Acquire Ark Insurance On October 1, 2020, White Mountains entered into a subscription and purchase agreement (the “Ark SPA”) with Ark Insurance Holdings Limited (“Ark”) and certain selling shareholders (collectively with Ark, the “Ark Sellers”). Certain Ark Sellers also entered into a related management warranty deed (together with the Ark SPA, the “Ark Acquisition Agreement”) pursuant to which they made certain warranties about the Ark business. Ark manages the underwriting of syndicates 4020 and 3902 at Lloyd's, which underwrite a diversified and balanced portfolio of reinsurance and insurance, including property, accident & health, energy, marine and political risks. Under the terms of the Ark Acquisition Agreement, White Mountains will contribute $605.4 million of equity capital to Ark, at a pre money valuation of $300.0 million , and will also purchase $40.9 million of shares from the selling shareholders. White Mountains will also commit to contribute up to an additional $200.0 million of equity capital to Ark in 2021 (collectively, the “Ark Transaction”). Total post-closing capitalization of Ark is expected to exceed $800.0 million ( $1.0 billion if the additional $200.0 million is contributed). At closing, White Mountains will own 72.0% of Ark on a basic shares outstanding basis ( 63.0% on a fully-diluted, fully-converted basis, taking account of management’s equity incentives). If the additional $200.0 million is contributed in full, White Mountains will own 77.1% of Ark on a basic shares outstanding basis ( 67.5% on a fully-diluted, fully-converted basis). Management’s equity incentives are subject to an 8% rate of return threshold with no catch-up. All shares outstanding not owned by White Mountains will be owned by management rollover shareholders. In the future, management rollover shareholders could earn additional shares in the company if and to the extent that White Mountains achieves certain multiple of invested capital return thresholds. These additional shares are generally eligible to vest in three equal tranches at multiple on invested capital (“MOIC”) thresholds of 2.0 x, 2.5 x and 3.0 x. If fully earned, these additional shares would represent 12.5% of the shares outstanding at closing. The Ark Transaction is expected to close in January 2021. The Ark Transaction is subject to the receipt of regulatory approvals, receipt by Ark’s Bermuda reinsurer of an indicative rating letter from A.M. Best indicating a rating of “A-” or higher, receipt by Ark of $150.0 million of letters of credit, the non-occurrence of a material adverse effect and other customary closing conditions. On October 26, 2020, A.M. Best assigned Ark a preliminary credit assessment of “A”. On November 3, 2020, Ark received a commitment for $150.0 million of letters of credit. If all closing conditions are satisfied before December 15, 2020, White Mountains has committed to pre-fund up to $400.0 million of its capital contribution at that time, with the closing then occurring on January 1, 2021. COVID-19 On January 30, 2020, the spread of novel coronavirus (“COVID-19”) was declared a Public Health Emergency of International Concern by the World Health Organization. Subsequently, on March 11, 2020, the WHO characterized the COVID-19 outbreak as a pandemic. White Mountains continues to monitor the impact of the COVID-19 pandemic but, as the pandemic is ongoing, White Mountains cannot determine the ultimate impact it may have on the global financial markets, the overall economy and on White Mountains’s businesses, results of operations and financial condition. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company is an exempted Bermuda limited liability company whose principal businesses are conducted through its subsidiaries and other affiliates. The Company’s headquarters is located at 26 Reid Street, Hamilton, Bermuda HM 11, its principal executive office is located at 23 South Main Street, Hanover, New Hampshire 03755-2053 and its registered office is located at Clarendon House, 2 Church Street, Hamilton, Bermuda HM 11. The Company’s website is located at www.whitemountains.com. The information contained on White Mountains’s website is not incorporated by reference into, and is not a part of, this report. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of White Mountains Insurance Group, Ltd. (the “Company” or the “Registrant”), its subsidiaries (collectively with the Company, “White Mountains”) and other entities required to be consolidated under GAAP. Consolidation Principles Under GAAP, the Company is required to consolidate any entity in which it holds a controlling financial interest. A controlling financial interest is usually in the form of an investment representing the majority of the subsidiary’s voting interests. However, a controlling financial interest may also arise from a financial interest in a variable interest entity (“VIE”) through arrangements that do not involve ownership of voting interests. The Company consolidates a VIE if it determines that it is the primary beneficiary. The primary beneficiary is defined as the entity who holds a variable interest that gives it both the power to direct the VIE’s activities that most significantly impact its economic performance and the obligation to absorb losses of, or the right to receive returns from, the VIE that could potentially be significant to the VIE. Intercompany transactions have been eliminated in consolidation. These interim financial statements include all adjustments considered necessary by management to fairly state the financial position, results of operations and cash flows of White Mountains. These interim financial statements may not be indicative of financial results for the full year and should be read in conjunction with the Company’s 2019 Annual Report on Form 10-K. |
Business Combinations | Business Combinations White Mountains accounts for purchases of businesses using the acquisition method, which requires the measurement of assets acquired, including goodwill and other intangible assets, and liabilities assumed, including contingent liabilities, at their estimated fair values as of the acquisition date. The acquisition date fair values represent management’s best estimates and are based upon established valuation techniques, reasonable assumptions and, where appropriate, valuations performed by independent third parties. In circumstances where additional information is required in order to determine the acquisition date fair value of balance sheet amounts, provisional amounts may be recorded as of the acquisition date and may be subject to subsequent adjustment throughout the measurement period, which is up to one year from the acquisition date. Measurement period adjustments are recognized in the period in which they are determined. The results of operations and cash flows of businesses acquired are included in the consolidated financial statements from the date of acquisition. White Mountains accounts for purchases of other intangible assets that do not meet the definition of a business as asset acquisitions. Asset acquisitions are recognized at the amount of consideration paid, which is deemed to equal fair value. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the third quarter of 2020, White Mountains changed the method used to value its investment in MediaAlpha from a discounted cash flow analysis to a probability-weighted expected return method ("PWERM"). Under the PWERM, MediaAlpha’s valuation is based on the probability-weighted present value of expected future equity values under two possible future scenarios: (i) an initial public offering (“IPO”) or (ii) remaining a private company. To determine the equity value in the IPO scenario, the value of the company was calculated using forward market multiples derived from a range of relevant companies and applied to MediaAlpha’s projected financial metrics. To determine the equity value in the remaining a private company scenario, the value of the company was calculated using a discounted cash flow model. The discounted cash flow model includes key inputs such as projections of future revenues and earnings, a discount rate and a terminal revenue growth rate. The expected future cash flows are based on management judgment, considering current performance, budgets and projected future results. The discount rates reflect MediaAlpha’s weighted average cost of capital considering comparable public company data, adjusted for risks specific to the business and industry. The terminal revenue growth rate is based on company, industry and macroeconomic expectations of perpetual revenue growth subsequent to the end of the discrete period in the discounted cash flow analysis. |
Reportable Segments | Reportable Segments White Mountains has determined its reportable segments based on the nature of the underlying businesses, the manner in which the Company’s subsidiaries and affiliates are organized and managed and the organization of the financial information provided to the chief operating decision maker to assess performance and make decisions regarding allocation of resources. As of September 30, 2020 , White Mountains’s reportable segments were HG Global/BAM, NSM, Kudu and Other Operations. On February 26, 2019, MediaAlpha completed the sale of a significant minority stake to Insignia Capital Group in connection with a recapitalization and cash distribution to existing equityholders (the “MediaAlpha Transaction”). White Mountains deconsolidated MediaAlpha as a result of the MediaAlpha Transaction, and consequently it was no longer a reportable segment. White Mountains’s consolidated statement of comprehensive income and its segment disclosures include MediaAlpha’s results of operations through the date of the MediaAlpha Transaction. See Note 2 — “Significant Transactions” and Note 13 — “Segment Information” . The HG Global/BAM segment consists of HG Global Ltd. and its wholly-owned subsidiaries (“HG Global”) and the consolidated results of Build America Mutual Assurance Company (“BAM”) (collectively, “HG Global/BAM”). BAM is the first and only mutual municipal bond insurance company in the United States. By insuring the timely payment of principal and interest, BAM provides market access to, and lowers interest expense for, issuers of municipal bonds used to finance essential public purposes such as schools, utilities and transportation facilities. BAM is owned by and operated for the benefit of its members, the municipalities that purchase BAM’s insurance for their debt issuances. HG Global was established to fund the startup of BAM and, through its wholly-owned subsidiary, HG Re Ltd. (“HG Re”), to provide up to 15% -of-par, first loss reinsurance protection for policies underwritten by BAM. HG Global, together with its subsidiaries, funded the initial capitalization of BAM through the purchase of $503.0 million of surplus notes issued by BAM, consisting of $203.0 million of Series A Notes and $300.0 million of Series B Notes (the “BAM Surplus Notes”). As of September 30, 2020 and December 31, 2019, White Mountains owned 96.9% of HG Global’s preferred equity and 88.4% of its common equity. White Mountains does not have an ownership interest in BAM. However, White Mountains is required to consolidate BAM’s results in its financial statements because BAM is a VIE for which White Mountains is the primary beneficiary. BAM’s results are attributed to non-controlling interests. The NSM segment consists of NSM Insurance HoldCo, LLC and its subsidiaries (collectively, “NSM”). NSM is a full-service managing general underwriting agency (“MGU”) and program administrator for specialty property and casualty insurance. The company places insurance in niche sectors such as specialty transportation, real estate, social services and pet health insurance. On behalf of its insurance carrier partners, NSM manages all aspects of the placement process, including product development, marketing, underwriting, policy issuance and claims. NSM earns commissions based on the volume and profitability of the insurance that it places. NSM does not take insurance risk. As of September 30, 2020 and December 31, 2019, White Mountains owned 96.6% and 96.4% of the basic units outstanding of NSM ( 89.6% and 88.4% on a fully diluted, fully converted basis). See Note 2 — “Significant Transactions ”. The Kudu segment consists of Kudu Investment Management, LLC and its subsidiaries (collectively “Kudu”), a capital solutions provider for asset management firms. Kudu provides capital solutions for boutique asset managers for a variety of purposes including generational ownership transfers, management buyouts, acquisition and growth finance and legacy partner liquidity. Kudu also provides strategic assistance to investees from time to time. Kudu’s capital solutions typically are structured as minority preferred equity stakes with distribution rights, typically tied to gross revenues and designed to generate immediate strong, stable cash yields. On April 4, 2019, White Mountains acquired the ownership interests in Kudu held by certain funds managed by Oaktree Capital Management, L.P. (“Oaktree”) for cash consideration of $81.4 million . In addition, White Mountains assumed all of Oaktree’s unfunded capital commitments to Kudu, increasing White Mountains’s total capital commitment to $250.0 million (the “Kudu Transaction”). As a result of the Kudu Transaction, White Mountains’s basic unit ownership of Kudu increased from 49.5% to 99.1% ( 42.7% to 85.4% on a fully diluted, fully converted basis), and White Mountains began consolidating Kudu in its financial statements during the second quarter of 2019. During the fourth quarter of 2019, White Mountains increased its total capital commitment to Kudu by an additional $100.0 million to $350.0 million and, Kudu obtained a committed $125.0 million credit facility. See Note 2 — “Significant Transactions” . The Other Operations segment consists of the Company and its wholly-owned subsidiary, White Mountains Capital, Inc., its other intermediate holding companies, its wholly-owned investment management subsidiary, White Mountains Advisors LLC (“WM Advisors”), investment assets managed by WM Advisors, its interests in MediaAlpha (for periods after the MediaAlpha Transaction), PassportCard Limited (“PassportCard”) and DavidShield Life Insurance Agency (2000) Ltd. (“DavidShield”) (collectively, “PassportCard/DavidShield”), Elementum Holdings LP (“Elementum”) and Kudu (for periods prior to the Kudu Transaction), and certain other consolidated and unconsolidated entities and certain other strategic investments. The MediaAlpha segment consisted of QL Holdings LLC and its wholly-owned subsidiary QuoteLab, LLC (collectively “MediaAlpha”). MediaAlpha is a marketing technology company. It operates a transparent and efficient online customer acquisition technology platform that facilitates real-time transactions between buyers and sellers of consumer referrals (e.g., clicks, calls and leads), primarily in the property & casualty, health and life insurance verticals. |
Discontinued Operations and Assets and Liabilities Held for Sale | Discontinued Operations and Assets Held for Sale White Mountains has classified its Guilford, Connecticut property, which consists of an office building that was sold in August of 2020, and adjacent land as held for sale as of September 30, 2020 |
Derivatives | Derivatives From time to time, White Mountains holds derivative financial instruments for risk management purposes. White Mountains recognizes all derivatives as either assets or liabilities, measured at fair value, on the consolidated balance sheet. Changes in the fair value of derivative instruments that meet the criteria for hedge accounting are recognized in other comprehensive income and reclassified into current period pre-tax income when the hedged items are recognized therein. Changes in the fair value of derivative instruments that do not meet the criteria for hedge accounting are recognized in current period pre-tax income. |
Reinsurance Contracts Accounted For As Deposits | Reinsurance Contracts Accounted for as Deposits Reinsurance contracts that do not meet the risk transfer requirements necessary to be accounted for as reinsurance are accounted for using the deposit method. Under the deposit method, ceded premiums paid are not recognized through income but rather treated as a deposit. BAM entered into a ceded reinsurance contract agreement with Fidus Reinsurance Ltd. (“Fidus Re”) during the quarter ended June 30, 2018, which is accounted for using the deposit method. See Note 8 — “Municipal Bond Guarantee Insurance” |
Restricted Cash | Restricted Cash Cash includes amounts on hand and demand deposits with banks and other financial institutions. Amounts presented in the statement of cash flows are shown net of balances acquired and sold in the purchase or sale of the Company’s consolidated subsidiaries. |
Recently Adopted Changes in Accounting Principles and Recently Issued Accounting Pronouncements | Recently Adopted Changes in Accounting Principles Income Taxes On January 1, 2020, White Mountains adopted ASU 2019-12, Simplifying the Accounting for Income Taxes (ASC 740), which removes exceptions to standard guidance. Under the new guidance non-income-based taxes, such as franchise taxes, are reported within pre-tax income rather than being included in income taxes. In addition, the new guidance eliminates the exception to the incremental approach for interperiod tax allocation, which previously allowed consideration of the tax effects of items such as discontinued operations and items recognized through other comprehensive income. For periods subsequent to the adoption of ASU 2019-12, White Mountains records both the tax expense related to BAM’s member surplus contributions (“MSC”) and the related valuation allowance on such taxes through the non-controlling interest equity. Prior to the adoption of ASU 2019-12, White Mountains recorded the tax expense related to BAM’s MSC directly to non-controlling interest equity, while the valuation allowance on such taxes was recorded through the income statement. Goodwill On January 1, 2020, White Mountains adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment (ASC 350), which changed the guidance on goodwill impairment testing. Under the new guidance, the qualitative assessment of the recoverability of goodwill remains the same, but the second step of the two-step quantitative test, which required calculation of the implied fair value of goodwill, has been eliminated. Instead, an impairment charge is recognized when the carrying value of a reporting unit exceeds its fair value. Any excess of carrying value over fair value is written down as an impairment. White Mountains did not identify any impairment indicators associated with its reporting units and therefore did not recognize an impairment of goodwill during the three and nine months ended September 30, 2020 and accordingly, adoption of ASU 2017-04 had no impact on White Mountains’s financial statements. Credit Losses On January 1, 2020, White Mountains adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments (ASC 326), which establishes new guidance for the recognition of credit losses for financial assets measured at amortized cost. The new ASU requires reporting entities to estimate the credit losses expected over the life of a credit exposure using historical information, current information and reasonable and supportable forecasts that affect the collectability of the financial asset. White Mountains measures its portfolio of investment securities at fair value with changes therein recognized through current period earnings and, accordingly, adoption of ASU 2016-13 had no impact on White Mountains’s financial statements Leases On January 1, 2019, White Mountains adopted ASU 2016-02, Leases (ASC 842), which requires lessees to recognize lease assets and liabilities on the balance sheet for both operating and financing leases, with the exception of leases with an original term of 12 months or less. White Mountains elected the optional transition method that permits prospective adoption with recognition of a cumulative effect adjustment to the opening balance of retained earnings. As a result, White Mountains has presented comparative periods prior to adoption in accordance with previous lease accounting guidance. White Mountains also elected all available practical expedients permitted under ASC 842, which allowed White Mountains to carryforward its historical lease classification and not reassess leases for the definition of a lease under the new guidance. As of January 1, 2019, White Mountains recognized $23.2 million for both the lease right-of-use assets and lease liabilities . As of September 30, 2020 , White Mountains recognized $38.3 million and $ 39.1 million of lease right-of-use assets and lease liabilities. Adoption of ASU 2016-02 did not result in an adjustment to opening retained earnings. Premium Amortization on Callable Debt Securities On January 1, 2019, White Mountains adopted ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | |
Pre-tax net investment income | The following table presents pre-tax net investment income for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Fixed maturity investments $ 7.0 $ 8.0 $ 22.4 $ 24.4 Short-term investments .1 1.3 1.0 3.9 Common equity securities .5 2.5 6.5 10.8 Other long-term investments 63.9 7.0 84.7 17.4 Total investment income 71.5 18.8 114.6 56.5 Third-party investment expenses (.3 ) (.4 ) (.9 ) (1.1 ) Net investment income, pre-tax $ 71.2 $ 18.4 $ 113.7 $ 55.4 |
Schedule of realized gain (loss) on investments | The following table presents net realized and unrealized investment gains (losses) for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Fixed maturity investments $ 3.6 $ 8.9 $ 35.8 $ 46.9 Short-term investments — — .4 .3 Common equity securities 48.4 2.4 5.9 141.5 Other long-term investments (1) (2)(3) 254.6 $ 55.7 260.7 159.1 Net realized and unrealized investment gains 306.6 67.0 302.8 347.8 Less: net gains on investment securities sold during the period 36.1 — 29.6 12.4 Net realized and unrealized investment gains on investment securities held at the end of the period $ 270.5 $ 67.0 $ 273.2 $ 335.4 (1) For the nine months ended September 30, 2019, excludes $67.5 of realized gain and includes $114.7 of unrealized investment gain associated with the MediaAlpha Transaction, which are both recorded in a separate line item in the statement of operations titled Realized gain and unrealized investment gain from the MediaAlpha Transaction. See Note 2 — “Significant Transactions”. (2) For the three and nine months ended September 30, 2020 and 2019, includes $250.0 , $295.0 , $35.3 and $150.0 of unrealized investment gains from White Mountains’s investment in MediaAlpha. (3) For the three and nine months ended September 30, 2020 and 2019, includes $0.8 and $(0.8) of realized and unrealized investment gains (losses) related to foreign currency exchange. |
Schedule of unrealized gain (loss) on investments | The following table presents net realized and unrealized investment gains (losses) for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Fixed maturity investments $ 3.6 $ 8.9 $ 35.8 $ 46.9 Short-term investments — — .4 .3 Common equity securities 48.4 2.4 5.9 141.5 Other long-term investments (1) (2)(3) 254.6 $ 55.7 260.7 159.1 Net realized and unrealized investment gains 306.6 67.0 302.8 347.8 Less: net gains on investment securities sold during the period 36.1 — 29.6 12.4 Net realized and unrealized investment gains on investment securities held at the end of the period $ 270.5 $ 67.0 $ 273.2 $ 335.4 (1) For the nine months ended September 30, 2019, excludes $67.5 of realized gain and includes $114.7 of unrealized investment gain associated with the MediaAlpha Transaction, which are both recorded in a separate line item in the statement of operations titled Realized gain and unrealized investment gain from the MediaAlpha Transaction. See Note 2 — “Significant Transactions”. (2) For the three and nine months ended September 30, 2020 and 2019, includes $250.0 , $295.0 , $35.3 and $150.0 of unrealized investment gains from White Mountains’s investment in MediaAlpha. (3) For the three and nine months ended September 30, 2020 and 2019, includes $0.8 and $(0.8) of realized and unrealized investment gains (losses) related to foreign currency exchange. |
Net unrealized investment gains (losses) for Level 3 investments | The following table presents total gains included in earnings attributable to net unrealized investment gains (losses) for Level 3 investments for the three and nine months ended September 30, 2020 and 2019 for investments still held at the end of the period: Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Other long-term investments $ 260.1 $ 54.4 $ 276.0 $ 154.4 Total net unrealized investment gains (losses), pre-tax - Level 3 investments $ 260.1 $ 54.4 $ 276.0 $ 154.4 |
Investment holdings, equity securities, convertible fixed maturities and other long-term investments | The following tables present the cost or amortized cost, gross unrealized investment gains (losses) and carrying values of White Mountains’s fixed maturity investments as of September 30, 2020 and December 31, 2019 : September 30, 2020 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Carrying Value U.S. Government and agency obligations $ 206.2 $ 4.4 $ — $ 210.6 Debt securities issued by corporations 505.4 24.0 (.7 ) 528.7 Municipal obligations 251.0 20.4 (.1 ) 271.3 Mortgage and asset-backed securities 203.6 7.3 — 210.9 Total fixed maturity investments $ 1,166.2 $ 56.1 $ (.8 ) $ 1,221.5 December 31, 2019 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Carrying Value U.S. Government and agency obligations $ 231.7 $ 1.0 $ (.2 ) $ 232.5 Debt securities issued by corporations 454.9 12.5 (.2 ) 467.2 Municipal obligations 284.7 12.5 (.1 ) 297.1 Mortgage and asset-backed securities 206.6 2.7 (.3 ) 209.0 Total fixed maturity investments $ 1,177.9 $ 28.7 $ (.8 ) $ 1,205.8 The following tables present the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency losses, and carrying values of White Mountains’s common equity securities and other long-term investments as of September 30, 2020 and December 31, 2019 : September 30, 2020 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Currency Losses Carrying Value Common equity securities $ 124.2 $ 16.5 $ — $ — $ 140.7 Other long-term investments $ 696.4 $ 552.4 $ (76.1 ) $ (1.5 ) $ 1,171.2 December 31, 2019 Millions Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Foreign Carrying Value Common equity securities $ 553.3 $ 130.6 $ — $ — $ 683.9 Other long-term investments $ 667.4 $ 255.2 $ (64.1 ) $ (2.2 ) $ 856.3 The following table presents the carrying values of White Mountains’s other long-term investments as of September 30, 2020 and December 31, 2019 : Carrying Value at Millions September 30, 2020 December 31, 2019 MediaAlpha (1) $ 475.0 $ 180.0 Kudu’s Participation Contracts (1) 325.5 266.5 PassportCard/DavidShield (1) 95.0 90.0 Elementum Holdings L.P. (1) 55.1 55.1 Other unconsolidated entities (1)(2) 31.8 33.7 Total unconsolidated entities (1) 982.4 625.3 Private equity funds and hedge funds 118.2 161.1 Insurance-linked securities funds 52.7 41.2 Private debt investments (3) 17.9 28.7 Total other long-term investments $ 1,171.2 $ 856.3 (1) See Fair Value Measurements by Level table. (2) Includes White Mountains’s non-controlling equity interests in certain private common equity securities, limited liability companies and convertible preferred securities and Simple Agreement for Future Equity (“SAFE”) investments. (3) Includes $5.1 and $5.0 in private debt investments carried at fair value as of September 30. 2020 and amortized cost as of December 31, 2019. |
Other long-term investments | The following table presents investments and unfunded commitments in private equity funds and hedge funds by investment objective and sector as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Millions Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity funds Aerospace/Defense/Government $ 59.4 $ 16.1 $ 33.8 $ 23.3 Manufacturing/Industrial 39.8 2.0 57.7 4.1 Financial services 19.0 23.4 15.0 22.8 Total private equity funds 118.2 41.5 106.5 50.2 Hedge funds Long/short banks and financials — — 54.6 — Total hedge funds — — 54.6 — Total private equity funds and hedge funds included in other long-term investments $ 118.2 $ 41.5 $ 161.1 $ 50.2 |
Fair Value of private equity funds subject to lock-up periods | The following table presents investments in private equity funds that were subject to lock-up periods as of September 30, 2020 : Millions 1 – 3 years 3 – 5 years 5 – 10 years >10 years Total Private equity funds — expected lock-up period remaining $4.7 $36.4 $71.7 $5.4 $118.2 |
Fair value measurements by level, investment securities | The following tables present White Mountains’s fair value measurements for investments as of September 30, 2020 and December 31, 2019 by level. The major security types were based on the legal form of the securities. White Mountains has disaggregated its fixed maturity investments based on the issuing entity type, which impacts credit quality, with debt securities issued by U.S. government entities carrying minimal credit risk, while the credit and other risks associated with other issuers, such as corporations, foreign governments, municipalities or entities issuing mortgage and asset-backed securities vary depending on the nature of the issuing entity type. White Mountains further disaggregates debt securities issued by corporations and common equity securities by industry sector because investors often reference commonly used benchmarks and their subsectors to monitor risk and performance. Accordingly, White Mountains has further disaggregated these asset classes into subclasses based on the similar sectors and industry classifications it uses to evaluate investment risk and performance against commonly used benchmarks, such as the Bloomberg Barclays U.S. Intermediate Aggregate and S&P 500 indices. September 30, 2020 Millions Fair Value Level 1 Level 2 Level 3 Fixed maturity investments: U.S. Government and agency obligations $ 210.6 $ 210.6 $ — $ — Debt securities issued by corporations: Financials 142.9 — 142.9 — Technology 68.5 — 68.5 — Industrial 61.5 — 61.5 — Consumer 60.7 — 60.7 — Healthcare 49.3 — 49.3 — Communications 42.3 — 42.3 — Energy 38.9 — 38.9 — Materials 37.4 — 37.4 — Utilities 27.2 — 27.2 — Total debt securities issued by corporations 528.7 — 528.7 — Municipal obligations 271.3 — 271.3 — Mortgage and asset-backed securities 210.9 — 210.9 — Total fixed maturity investments 1,221.5 210.6 1,010.9 — Short-term investments (1) 571.8 570.6 1.2 — Common equity securities: Exchange traded funds 84.7 84.7 — — Other (2) 56.0 — 55.9 .1 Total common equity securities 140.7 84.7 55.9 .1 Other long-term investments 1,000.3 — — 1,000.3 Other long-term investments — NAV (3) 170.9 — — — Total investments $ 3,105.2 $ 865.9 $ 1,068.0 $ 1,000.4 (1) Short-term investments are measured at amortized cost, which approximates fair value. (2) Primarily consists of one investment in a unit trust that predominantly invests in international equities. (3) Consists of private equity funds and ILS funds for which fair value is measured at NAV using the practical expedient. Investments for which fair value is measured at NAV are not classified within the fair value hierarchy. December 31, 2019 Millions Fair Value Level 1 Level 2 Level 3 Fixed maturity investments: U.S. Government and agency obligations $ 232.5 $ 232.5 $ — $ — Debt securities issued by corporations: Financials 144.8 — 144.8 — Industrial 59.0 — 59.0 — Healthcare 52.6 — 52.6 — Consumer 50.9 — 50.9 — Energy 44.9 — 44.9 — Technology 41.2 — 41.2 — Communications 31.3 — 31.3 — Utilities 25.0 — 25.0 — Materials 17.5 — 17.5 — Total debt securities issued by corporations 467.2 — 467.2 — Municipal obligations 297.1 — 297.1 — Mortgage and asset-backed securities 209.0 — 209.0 — Total fixed maturity investments 1,205.8 232.5 973.3 — Short-term investments (1) 201.2 189.4 11.8 — Common equity securities: Exchange traded funds (2) 536.4 521.6 14.8 — Other (3) 147.5 25.9 121.5 .1 Total common equity securities 683.9 547.5 136.3 .1 Other long-term investments 654.0 — — 654.0 Other long-term investments — NAV (4) 202.3 — — — Total investments $ 2,947.2 $ 969.4 $ 1,121.4 $ 654.1 (1) Short-term investments are measured at amortized cost, which approximates fair value. (2) ETFs traded on foreign exchanges are priced using the fund’s published NAV to account for the difference in market close times and are therefore designated a Level 2 measurement. (3) Primarily consists of two investments in unit trusts that predominantly invest in international equities and an open-end mutual fund that invests in domestic large-cap companies. (4) Consists of private equity funds, one hedge fund and ILS funds for which fair value is measured at NAV using the practical expedient. Investments for which fair value is measured at NAV are not classified within the fair value hierarchy. |
Debt securities issued by corporations, credit ratings | The following table presents the credit ratings of debt securities issued by corporations held in White Mountains’s investment portfolio as of September 30, 2020 and December 31, 2019 : Fair Value at Millions September 30, 2020 December 31, 2019 AAA $ 11.2 $ 9.5 AA 58.2 73.9 A 307.7 288.5 BBB 150.0 95.3 BB 1.6 — Debt securities issued by corporations (1) $ 528.7 $ 467.2 (1) Credit ratings are based upon issuer credit ratings provided by Standard & Poor’s Financial Services LLC (“Standard & Poor’s”), or if unrated by Standard & Poor’s, long-term obligation ratings provided by Moody’s Investor Service, Inc. |
Mortgage-backed, asset-backed securities | The following table presents the fair value of White Mountains’s mortgage and asset-backed securities as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Millions Fair Value Level 2 Level 3 Fair Value Level 2 Level 3 Mortgage-backed securities: Agency: FNMA $ 84.5 $ 84.5 $ — $ 88.6 $ 88.6 $ — FHLMC 67.1 67.1 — 60.5 60.5 — GNMA 37.4 37.4 — 30.8 30.8 — Total agency (1) 189.0 189.0 — 179.9 179.9 — Total mortgage-backed securities 189.0 189.0 — 179.9 179.9 — Other asset-backed securities: Credit card receivables 11.3 11.3 — 14.0 14.0 — Vehicle receivables 10.6 10.6 — 15.1 15.1 — Total other asset-backed securities 21.9 21.9 — 29.1 29.1 — Total mortgage and asset-backed securities $ 210.9 $ 210.9 $ — $ 209.0 $ 209.0 $ — (1) Represents publicly traded mortgage-backed securities which carry the full faith and credit guaranty of the U.S. Government (i.e., GNMA) or are guaranteed by a government sponsored entity (i.e., FNMA, FHLMC). |
Rollforward of fair value investments by level | The following tables present the changes in White Mountains’s fair value measurements by level for the three months ended September 30, 2020 and 2019 : Level 3 Investments Other Long-term Investments Measured at NAV (2) Millions Level 1 Investments Level 2 Investments Common Equity Securities Other Long-term Investments Total Balance at December 31, 2019 $ 780.0 $ 1,109.6 $ .1 $ 654.0 $ 202.3 $ 2,746.0 (1) Net realized and unrealized gains (losses) 29.2 12.5 — 275.6 (14.9 ) 302.4 (3) Amortization/Accretion — (3.0 ) — — — (3.0 ) Purchases 128.8 316.2 — 78.8 39.8 563.6 Sales (642.7 ) (368.5 ) — (8.1 ) (56.3 ) (1,075.6 ) Transfers in — — — — — — Transfers out — — — — — — Balance at September 30, 2020 $ 295.3 $ 1,066.8 $ .1 $ 1,000.3 $ 170.9 $ 2,533.4 (1) (1) Excludes carrying value of $ 571.8 and $ 201.2 as of September 30, 2020 and December 31, 2019 classified as short-term investments. (2) Includes private equity funds, hedge funds and ILS funds for which fair value is measured at NAV using the practical expedient are no longer classified within the fair value hierarchy. See Note 1 — “Basis of Presentation and Significant Accounting Policies” . (3) Excludes realized and unrealized gains associated with short-term investments of $0.4 for the nine months ended September 30, 2020. Level 3 Investments Other Long-term Investments Measured at NAV (3,5) Millions Level 1 Investments Level 2 Investments Other Long-term Investments Total Balance at December 31, 2018 $ 842.6 $ 1,160.5 $ 138.7 $ 186.9 $ 2,328.7 (1) Net realized and unrealized gains 121.8 66.6 154.2 4.9 347.5 (2, 4) Amortization/Accretion .2 (1.2 ) — — (1.0 ) Purchases 101.4 331.3 211.3 106.4 750.4 (6) Sales (362.3 ) (465.2 ) — (28.7 ) (856.2 ) Transfers in — — 82.6 — 82.6 Transfers out — — — (82.6 ) (82.6 ) Balance at September 30, 2019 $ 703.7 $ 1,092.0 $ 586.8 $ 186.9 $ 2,569.4 (1) (1) Excludes carrying value of $ 272.5 and $ 214.2 as of September 30, 2019 and December 31, 2018 classified as short-term investments. (2) Includes $114.7 unrealized investment gain associated with the MediaAlpha Transaction, which is recorded in a separate line item in the statement of operations titled Realized gain and unrealized investment gain from the MediaAlpha Transaction. See Note 2 — “Significant Transactions”. (3) Includes private equity funds, hedge funds and ILS funds for which fair value is measured at NAV using the practical expedient are no longer classified within the fair value hierarchy. See Note 1 — “Basis of Presentation and Significant Accounting Policies” . (4) Excludes realized and unrealized losses associated with short-term investments of $0.3 for the nine months ended September 30, 2019. (5) Transfer includes $71.7 associated with the Kudu Transaction. See Note 2 — “Significant Transactions”. (6) Purchases include $70.1 associated with the Kudu Transaction. See Note 2 — “Significant Transactions”. |
Schedule of significant unobservable inputs used in estimating the fair value of investment securities | The following tables present significant unobservable inputs used in estimating the fair value of other long-term investments, other than private equity funds, hedge funds and ILS funds, classified within Level 3 as of September 30, 2020 and December 31, 2019 . The fair value of investments in private equity funds, hedge funds and ILS funds are generally estimated using the NAV of the funds. $ in Millions September 30, 2020 Description Valuation Technique(s) Fair Value (5) Unobservable Inputs (6) MediaAlpha Probability-weighted expected return method $475.0 Weight ascribed to IPO 65% Forward Revenue Exit Multiple 2x Weight ascribed to remaining private 35% Discount Rate 13% Terminal Revenue Growth 4% Discount Rate (2)(6) Terminal Cash Flow Exit Multiple (x) or Terminal Revenue Growth Rate (%) (6) Kudu’s Participation Contracts (1)(2) Discounted cash flow $325.5 18% - 23% 6x - 12x PassportCard/DavidShield (3) Discounted cash flow $95.0 23% 4% Elementum Holdings, L.P. Discounted cash flow $55.1 19% 4% Private debt instruments Discounted cash flow $17.9 5% - 10% N/A All other Discounted cash flow $18.1 20% - 24% 4% Noblr, Inc. Share price of recent transaction $8.7 Share price: $2.17 Zillion Insurance Services, Inc. (4) Recent transaction $5.0 Transaction price: $5.0 (1) During the nine months ended September 30, 2020, Kudu deployed a total of $57.4 in new Kudu Participation Contracts, including Creation Investments Capital Management and Sequoia Financial Group. (2) Since Kudu’s Participation Contracts are not subject to corporate taxes within Kudu Investment Management, LLC, pre-tax discount rates are applied to pre-tax cash flows in determining fair values. (3) During the nine months ended September 30, 2020, White Mountains made an additional $15.0 investment in PassportCard/DavidShield. See Note 2 - “Significant Transactions” . (4) During the nine months ended September 30, 2020, White Mountains made an additional $2.5 investment in Zillion Insurance Services, Inc. (5) Includes the net unrealized investment gains (losses) associated with foreign currency; foreign currency effects based on observable inputs. (6) Increases (decreases) to the discount rates in isolation would result in lower (higher) fair value measurements, while increases (decreases) to the terminal cash flow exit multiples or terminal revenue growth rates in isolation would result in higher (lower) fair value measurements. $ in Millions December 31, 2019 Description Valuation Technique(s) Fair Value (1) Unobservable Inputs Discount Rate (2) Terminal Cash Flow Exit Multiple (x) or Terminal Revenue Growth Rate (%) (2) Kudu’s Participation Contracts Discounted cash flow $266.5 15% - 22% 6x - 12x MediaAlpha Discounted cash flow $180.0 15% 4% PassportCard/DavidShield Discounted cash flow $90.0 22% 4% Elementum Holdings, L.P. Discounted cash flow $55.1 20% 4% Private debt instruments Discounted cash flow $23.7 4% - 9% N/A All other Discounted cash flow $23.7 25% - 32% 4% Noblr, Inc. Share price of recent transaction $5.0 Share price: $2.17 Zillion Insurance Services, Inc. Recent transaction $2.5 Transaction price: $2.5 Compare.com Estimated net realizable value $2.5 Net realizable value: $2.5 (1) Includes the net unrealized investment gains (losses) associated with foreign currency; foreign currency effects based on observable inputs. (2) Increases (decreases) to the discount rates in isolation would result in lower (higher) fair value measurements, while increases (decreases) to the terminal cash flow exit multiples or terminal revenue growth rates in isolation would result in higher (lower) fair value measurements. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following tables present the change in goodwill and other intangible assets for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Millions Goodwill Other Intangible Assets Total Goodwill and Other Intangible Assets Goodwill Other Intangible Assets Total Goodwill and Other Intangible Assets Beginning balance $ 518.2 $ 241.7 $ 759.9 $ 428.6 $ 239.0 $ 667.6 Attribution of acquisition date fair value estimates between goodwill and other intangible assets — — — $ (2.2 ) $ 2.2 — Acquisitions of businesses 14.9 (1) — 14.9 — — — Acquisition of renewal rights — — — — — — Foreign currency translation 7.0 (.1 ) 6.9 (1.6 ) (.5 ) (2.1 ) Amortization — (5.4 ) (5.4 ) — (4.6 ) (4.6 ) Ending balance $ 540.1 $ 236.2 $ 776.3 $ 424.8 $ 236.1 $ 660.9 (1) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisition of Other Operations had not yet been finalized at September 30, 2020. Nine Months Ended September 30, 2020 2019 Millions Goodwill Other Intangible Assets Total Goodwill and Other Intangible Assets Goodwill Other Intangible Assets Total Goodwill and Other Intangible Assets Beginning balance $ 394.7 $ 260.0 $ 654.7 $ 379.9 $ 157.6 $ 537.5 Deconsolidation of MediaAlpha — — — (18.3 ) (23.5 ) (41.8 ) Attribution of acquisition date fair value estimates between goodwill and other intangible assets — — — (29.0 ) 29.0 — Acquisitions of businesses 140.0 (1) — 140.0 93.8 (2) — 93.8 Acquisition of renewal rights — — — — 82.5 82.5 Foreign currency translation 5.2 (.5 ) 4.7 (1.6 ) — (1.6 ) Adjustments to reflect acquisition date fair value .2 — .2 — 5.9 5.9 Impairments — (6.2 ) (6.2 ) — — — Amortization — (17.1 ) (17.1 ) — (15.4 ) (15.4 ) Ending balance $ 540.1 $ 236.2 $ 776.3 $ 424.8 $ 236.1 $ 660.9 (1) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisition of Kingsbridge and Other Operations had not yet been finalized at September 30, 2020. (2) The relative fair values of goodwill and other intangible assets recognized in connection with the acquisitions of Embrace and Other Operations had not yet been finalized at September 30, 2019. The following table presents the acquisition date fair values, accumulated amortization and net carrying values for other intangible assets and goodwill, by company as of September 30, 2020 and December 31, 2019 : $ in Millions Weighted Average Economic Life (in years) September 30, 2020 December 31, 2019 Acquisition Date Fair Value Accumulated Amortization Impairments Net Carrying Value Acquisition Date Fair Value Accumulated Amortization Impairments Net Carrying Value Goodwill: NSM (1) N/A $ 511.8 $ — $ — $ 511.8 $ 381.6 $ — $ — $ 381.6 Kudu N/A 7.6 — — 7.6 7.6 — — 7.6 Other Operations N/A 20.7 — — 20.7 13.1 — 7.6 5.5 Total goodwill 540.1 — — 540.1 402.3 — 7.6 394.7 Other intangible assets: NSM (1) Customer 9 118.4 28.4 3.5 86.5 121.7 19.8 1.4 100.5 Trade names 19 60.8 7.1 1.0 52.7 61.9 5.3 .4 56.2 Information technology platform 0 3.1 1.4 1.7 — 3.9 1.4 .6 1.9 Renewal rights 12 82.5 3.9 — 78.6 82.5 .7 — 81.8 Other 3 1.7 1.0 — .7 1.7 .7 — 1.0 Subtotal 266.5 41.8 6.2 218.5 271.7 27.9 2.4 241.4 Kudu Trade names 7 2.2 .5 — 1.7 2.2 .2 — 2.0 Other Operations Trade names 10 1.0 .1 — .9 1.7 .5 .2 1.0 Customer relationships 11 7.2 .8 — 6.4 7.2 .4 — 6.8 Information 5 — — — — .5 .3 .2 — Insurance Licenses N/A 8.6 — — 8.6 8.6 — — 8.6 Other 5 .2 .1 — .1 .2 — — .2 Subtotal 17.0 1.0 — 16.0 18.2 1.2 .4 16.6 Total other intangible assets 285.7 43.3 6.2 236.2 292.1 29.3 2.8 260.0 Total goodwill and other intangible assets $ 825.8 $ 43.3 $ 6.2 776.3 $ 694.4 $ 29.3 10.4 654.7 Goodwill and other intangible assets attributed to non-controlling interests (27.1 ) (23.4 ) Goodwill and other intangible assets included in White Mountains’s common shareholders’ equity $ 749.2 $ 631.3 (1) As of September 30, 2020 , NSM’s goodwill and intangible assets included $ 5.2 and $ (0.5) of the effect of foreign currency translation. As of December 31, 2019, NSM’s goodwill and intangible assets included $ 1.4 and $0.7 of the effect of foreign currency translation. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents a summary of the acquisition date fair values of goodwill and other intangible assets for acquisitions completed from January 1, 2019 through September 30, 2020 : $ in Millions Acquisition of subsidiary/ asset Goodwill and Other intangible asset (1) Acquisition Date Embrace (2) $ 67.6 April 1, 2019 Renewal Rights (3) 82.5 June 28, 2019 Kingsbridge (4) 125.1 April 7, 2020 Total NSM segment $ 275.2 Kudu Transaction $ 9.8 April 4, 2019 Other Operations (4) $ 37.5 Various (1) Acquisition date fair values include the effect of adjustments during the measurement period and excludes the effect of foreign currency translation subsequent to the acquisition date. (2) Excludes $3.4 of software classified within other assets. (3) NSM’s purchase of the Renewal Rights from AIG was an asset acquisition. (4) The determination of the relative fair values of goodwill and other intangible assets had not yet been finalized as of September 30, 2020. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt outstanding | The following table presents the change in debt under the NSM Bank Facility for the three and nine months ended September 30, 2020 and 2019: NSM Bank Facility Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Beginning balance $ 273.4 $ 222.3 $ 221.3 $ 180.4 Term loans Borrowings (1) — — 52.4 42.9 Repayments (.7 ) (.4 ) (1.3 ) (1.4 ) Foreign currency translation 2.3 — 2.6 — Revolving credit loan Borrowings — — — 6.5 Repayments — — — (6.5 ) Ending balance 275.0 221.9 275.0 221.9 (1) Borrowings for the nine months ended September 30, 2020 included $52.4 for the funding of the acquisition of Kingsbridge. Borrowings for the nine months ended September 30, 2019 , included $20.4 and $22.5 for the funding of the acquisitions of Embrace and the Renewal Rights. The following table presents White Mountains’s debt outstanding as of September 30, 2020 and December 31, 2019: Millions September 30, Effective Rate (1) December 31, Effective Rate (1) NSM Bank Facility $ 275.0 7.4% $ 221.3 7.5% Unamortized issuance cost (6.2 ) (3.9 ) NSM Bank Facility, carrying value 268.8 217.4 Other NSM debt, carrying value 1.4 2.8% 1.8 3.0% Kudu Bank Facility 74.0 8.4% 57.0 8.3% Unamortized issuance cost (3.0 ) (3.4 ) Kudu Bank Facility, carrying value 71.0 53.6 Other Operations debt 18.8 10.1% 11.1 8.3% Unamortized issuance cost (.6 ) (.4 ) Other Operations, carrying value 18.2 10.7 Total debt $ 359.4 $ 283.5 (1) Effective rate considers the effect of the debt issuance costs. |
Municipal Bond Guarantee (Table
Municipal Bond Guarantee (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Guarantees [Abstract] | |
Schedule of Municipal Bond Guarantee Insured Obligations | The following table presents a schedule of BAM’s insured obligations as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Contracts outstanding 10,495 8,987 Remaining weighted average contract period outstanding (in years) 10.7 10.7 Contractual debt service outstanding (in millions): Principal $ 70,954.1 $ 62,250.5 Interest 34,842.8 31,799.7 Total debt service outstanding $ 105,796.9 $ 94,050.2 Gross unearned insurance premiums (in millions) $ 226.9 $ 198.4 |
Financial Guarantee Insurance Contracts, Premium Received over Contract Period | The following table presents a schedule of BAM’s future premium revenues as of September 30, 2020 : Millions September 30, 2020 October 1, 2020 - December 31, 2020 $ 5.3 January 1, 2021 - March 31, 2021 5.3 April 1, 2021 - June 30, 2021 5.2 July 1, 2021 - September 30, 2021 5.1 October 1, 2021 - December 31, 2021 5.1 Total 2021 20.7 2022 19.6 2023 18.4 2024 17.2 2025 15.9 2026 and thereafter 129.8 Total gross unearned insurance premiums $ 226.9 |
Schedule of Net Written Premiums | The following table presents a schedule of net written premiums and net earned premiums included in White Mountains’s HG Global/BAM segment for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended September 30, Nine Months Ended September 30, Millions 2020 2019 2020 2019 Written premiums: Direct $ 14.4 $ 10.2 $ 45.5 $ 30.6 Assumed — 10.6 .1 10.6 Gross written premiums $ 14.4 $ 20.8 $ 45.6 $ 41.2 Earned premiums: Direct $ 5.3 $ 4.4 $ 14.5 $ 11.9 Assumed .9 .8 2.7 1.8 Gross earned premiums $ 6.2 $ 5.2 $ 17.2 $ 13.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | The following table presents the Company’s computation of earnings per share from continuing operations for the three and nine months ended September 30, 2020 and 2019 . See Note 17 — “Held for Sale and Discontinued Operations” . Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019 Basic and diluted earnings per share numerators (in millions): Net income attributable to White Mountains’s common shareholders $ 232.9 $ 48.7 $ 219.5 $ 353.6 Less: total (loss) income from discontinued operations, net of tax (.7 ) .9 (.8 ) 1.6 Net income from continuing operations attributable to White Mountains’s common shareholders $ 233.6 $ 47.8 $ 220.3 $ 352.0 Allocation of earnings to participating restricted common shares (1) (3.2 ) (.7 ) (2.9 ) (4.4 ) Basic and diluted earnings per share numerators $ 230.4 $ 47.1 $ 217.4 $ 347.6 Basic earnings per share denominators (in thousands): Total average common shares outstanding during the period 3,101.8 3,185.4 3,129.0 3,180.4 Average unvested restricted common shares (2) (43.1 ) (43.4 ) (40.0 ) (39.6 ) Basic earnings per share denominator 3,058.7 3,142.0 3,089.0 3,140.8 Diluted earnings per share denominator (in thousands): Total average common shares outstanding during the period 3,101.8 3,185.4 3,129.0 3,180.4 Average unvested restricted common shares (2) (43.1 ) (43.4 ) (40.0 ) (39.6 ) Diluted earnings per share denominator 3,058.7 3,142.0 3,089.0 3,140.8 Basic and diluted earnings per share (in dollars) - continuing operations: Distributed earnings - dividends declared and paid $ — $ — $ 1.00 $ 1.00 Undistributed earnings 75.32 15.01 69.40 109.67 Basic and diluted earnings per share $ 75.32 $ 15.01 $ 70.40 $ 110.67 (1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities. (2) Restricted shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans”. |
Schedule of Undistributed Net Earnings (Losses) from Continuing Operations | The following table presents the undistributed net earnings (losses) from continuing operations for the three and nine months ended September 30, 2020 and 2019 . See Note 17 — “Held for Sale and Discontinued Operations” . Three Months Ended Nine Months Ended September 30 September 30 Millions 2020 2019 2020 2019 Undistributed net earnings - continuing operations: Net income attributable to White Mountains’s common shareholders, net of restricted common share amounts $ 230.4 $ 47.1 $ 217.4 $ 347.6 Dividends declared, net of restricted common share amounts (1) — — (3.1 ) (3.2 ) Total undistributed net earnings, net of restricted common share amounts $ 230.4 $ 47.1 $ 214.3 $ 344.4 (1) Restricted shares issued by White Mountains receive dividends, and are therefore considered participating securities. |
Employee Share-Based Incentiv_2
Employee Share-Based Incentive Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of performance shares outstanding and accrued expense for performance shares awarded under the WTM Incentive Plan | The following table presents the performance share activity for the three and nine months ended September 30, 2020 and 2019 for performance shares granted under the WTM Incentive Plan: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Millions, except share amounts Target Performance Accrued Expense Target Performance Accrued Expense Target Performance Shares Outstanding Accrued Expense Target Performance Accrued Expense Beginning of period 42,458 $ 15.8 42,473 $ 30.8 42,473 $ 43.7 40,616 $ 31.7 Shares paid (1) — — — — (14,070 ) (27.7 ) (13,715 ) (18.1 ) New grants — — — — 14,055 — 15,600 — Forfeitures and cancellations (2) — (.3 ) — — — .1 (28 ) — Expense recognized — 13.6 — 5.6 — 13.0 — 22.8 End of period 42,458 $ 29.1 42,473 $ 36.4 42,458 $ 29.1 42,473 $ 36.4 (1) WTM performance share payments in 2020 for the 2017-2019 performance cycle, which were paid in cash in March 2020, ranged from 174% to 180% of target. WTM performance share payments in 2019 for the 2016-2018 performance cycle, which were paid in cash in March 2019, ranged from 139% to 166% of target. (2) Amounts include changes in assumed forfeitures, as required under GAAP. |
Share-based Compensation, Performance Shares Award Outstanding Activity | The following table presents performance shares outstanding and accrued expense for performance shares awarded under the WTM Incentive Plan as of September 30, 2020 for each performance cycle: Nine Months Ended September 30, 2020 Millions, except share amounts Target Performance Shares Outstanding Accrued Expense Performance cycle: 2018 – 2020 13,450 $ 15.4 2019 – 2021 15,600 10.6 2020 – 2022 14,055 3.6 Sub-total 43,105 29.6 Assumed forfeitures (647 ) (.5 ) September 30, 2020 42,458 $ 29.1 |
Summary of restricted shares activity | The following table presents the unrecognized compensation cost associated with the outstanding restricted share awards for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Millions, except share amounts Restricted Unamortized Fair Value Restricted Unamortized Restricted Unamortized Issue Date Restricted Unamortized Issue Date Non-vested, Beginning of period 43,105 $ 23.0 43,395 $ 21.9 43,395 $ 16.7 41,510 $ 12.5 Issued — — — — 14,055 15.1 15,600 14.5 Vested — — — — (14,345 ) — (13,715 ) — Forfeited — — — — — — — — Expense recognized — (3.6 ) — (2.6 ) — (12.4 ) — (7.7 ) End of period 43,105 $ 19.4 43,395 $ 19.3 43,105 $ 19.4 43,395 $ 19.3 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Lease Expense | The following table summarizes net lease expense recognized in White Mountains’s consolidated statement of operations for the three and nine months ended September 30, 2020 and 2019: Millions Three Months Ended September 30, Nine Months Ended September 30, Lease Cost 2020 2019 2020 2019 Lease cost $ 1.6 $ 1.9 $ 5.7 $ 5.4 Less: sublease income .1 .1 .3 .3 Net lease cost $ 1.5 $ 1.8 $ 5.4 $ 5.1 |
Schedule of Future Maturities of Operating Lease Liabilities, Lessee | The following table presents the contractual maturities of the lease liabilities associated with White Mountains’s operating lease agreements as of September 30, 2020 : Millions As of September 30, 2020 Remainder of 2020 $ 1.8 2021 7.6 2022 7.1 2023 6.9 2024 5.7 Thereafter 17.2 Total undiscounted lease payments 46.3 Less: present value adjustment 7.2 Operating lease liability $ 39.1 |
Schedule of Right-of-Use Assets and Lease Liabilities | Millions As of September 30, 2020 Remainder of 2020 $ 1.8 2021 7.6 2022 7.1 2023 6.9 2024 5.7 Thereafter 17.2 Total undiscounted lease payments 46.3 Less: present value adjustment 7.2 Operating lease liability $ 39.1 The following tables present lease related assets and liabilities by reportable segment as of September 30, 2020 and December 31, 2019: As of September 30, 2020 Millions HG/BAM NSM Kudu Other Operations Total Weighted Average Incremental Borrowing Rate (1) ROU lease asset $ 9.9 $ 17.0 $ 2.1 $ 9.3 $ 38.3 4.6% Lease liability $ 9.9 $ 17.0 $ 2.1 $ 10.1 $ 39.1 (1) The present value of the remaining lease payments was determined by discounting the lease payments using the incremental borrowing rate. As of December 31, 2019 Millions HG/BAM NSM Kudu Other Operations Total Weighted Average Incremental Borrowing Rate (1) ROU lease asset $ 10.4 $ 4.8 $ 2.3 $ 5.1 $ 22.6 4.6% Lease liability $ 10.4 $ 4.8 $ 2.3 $ 5.3 $ 22.8 (1) The present value of the remaining lease payments was determined by discounting the lease payments using the incremental borrowing rate. |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | The following table presents the balance of non-controlling interests included in White Mountains’s total equity and the related percentage of each consolidated entity’s total equity owned by non-controlling shareholders as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 $ in Millions Non-controlling Percentage Non-controlling Equity Non-controlling Percentage Non-controlling Equity Non-controlling interests, excluding BAM HG Global 3.1 % $ 14.1 3.1 % $ 14.4 NSM 3.4 % 16.9 3.6 % 14.9 Kudu .8 % 2.2 .9 % 2.2 Other various (1.3 ) various (1.6 ) Total, excluding BAM 31.9 29.9 BAM 100.0 % (130.4 ) 100.0 % (146.7 ) Total non-controlling interests $ (98.5 ) $ (116.8 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for White Mountains' Segments | in. The following tables present the financial information for White Mountains’s segments for the three and nine months ended September 30, 2020 and 2019: Millions HG Global/ BAM NSM Kudu Other Operations Total Three Months Ended September 30, 2020 Earned insurance premiums $ 6.2 $ — $ — $ — $ 6.2 Net investment income 4.7 — 6.4 60.1 71.2 Net realized and unrealized investment gains 3.2 — 9.8 293.6 306.6 Advertising and commission revenues — 58.2 — 2.1 60.3 Other revenue .4 12.5 .1 2.2 15.2 Total revenues 14.5 70.7 16.3 358.0 459.5 Insurance acquisition expenses 1.6 — — — 1.6 Other underwriting expenses .1 — — — .1 Cost of sales — — — 2.3 2.3 General and administrative expenses 13.9 42.9 2.2 44.3 103.3 Broker commission expense — 17.1 — — 17.1 Change in fair value of contingent consideration — .7 — — .7 Amortization of other intangible assets — 5.1 .1 .2 5.4 Interest expense — 6.1 1.4 .3 7.8 Total expenses 15.6 71.9 3.7 47.1 138.3 Pre-tax (loss) income $ (1.1 ) $ (1.2 ) $ 12.6 $ 310.9 $ 321.2 Millions HG Global/ BAM NSM Kudu Other Operations Total Nine Months Ended September 30, 2020 Earned insurance premiums $ 17.2 $ — $ — $ — $ 17.2 Net investment income 15.1 — 19.3 79.3 113.7 Net realized and unrealized investment gains 23.7 — 1.5 277.6 302.8 Advertising and commission revenues — 174.2 — 6.1 180.3 Other revenue 2.1 37.6 .2 6.0 45.9 Total revenues 58.1 211.8 21.0 369.0 659.9 Insurance acquisition expenses 5.4 — — — 5.4 Other underwriting expenses .3 — — — .3 Cost of sales — — — 6.5 6.5 General and administrative expenses 41.1 131.0 7.5 87.1 266.7 Broker commission expense — 56.4 — — 56.4 Change in fair value of contingent consideration — (1.6 ) — — (1.6 ) Amortization of other intangible assets — 16.2 .3 .6 17.1 Interest expense — 16.1 4.3 .8 21.2 Total expenses 46.8 218.1 12.1 95.0 372.0 Pre-tax income (loss) $ 11.3 $ (6.3 ) $ 8.9 $ 274.0 $ 287.9 Millions HG Global/BAM NSM Kudu Other Operations Total Three Months Ended September 30, 2019 Earned insurance premiums $ 5.2 $ — $ — $ — $ 5.2 Net investment income 5.4 — 4.6 8.4 18.4 Net realized and unrealized investment gains 7.1 — 2.7 57.2 67.0 Advertising and commission revenues — 49.4 — 1.9 51.3 Other revenue .3 10.5 .2 2.6 13.6 Total revenues 18.0 59.9 7.5 70.1 155.5 Insurance acquisition expenses 1.4 — — — 1.4 Other underwriting expenses .1 — — — .1 Cost of sales — — — 2.3 2.3 General and administrative expenses 12.5 33.3 4.5 27.7 78.0 Broker commission expense — 15.3 — — 15.3 Change in fair value of contingent consideration — (2.0 ) — — (2.0 ) Amortization of other intangible assets — 4.4 .2 — 4.6 Interest expense — 4.4 — .3 4.7 Total expenses 14.0 55.4 4.7 30.3 104.4 Pre-tax income $ 4.0 $ 4.5 $ 2.8 $ 39.8 $ 51.1 Millions HG Global/ BAM NSM Kudu (1) MediaAlpha (2) Other Operations Total Nine Months Ended September 30, 2019 Earned insurance premiums $ 13.7 $ — $ — $ — $ — $ 13.7 Net investment income 16.1 — 8.6 — 30.7 55.4 Net realized and unrealized investment gains 30.4 — 3.1 — 199.6 233.1 Realized gain and unrealized investment gain from the MediaAlpha Transaction — — — — 182.2 182.2 Advertising and commission revenues — 147.6 — 48.8 4.5 200.9 Other revenue 1.3 27.7 .2 — 3.6 32.8 Total revenues 61.5 175.3 11.9 48.8 420.6 718.1 Insurance acquisition expenses 4.1 — — — — 4.1 Other underwriting expenses .3 — — — — .3 Cost of sales — — — 40.6 5.0 45.6 General and administrative expenses 39.1 91.4 6.7 12.5 87.2 236.9 Broker commission expense — 48.9 — — — 48.9 Change in fair value of contingent consideration earnout liabilities — 5.6 — — — 5.6 Amortization of other intangible assets — 13.5 .2 1.6 .1 15.4 Interest expense — 12.2 — .2 .3 12.7 Total expenses 43.5 171.6 6.9 54.9 92.6 369.5 Pre-tax income (loss) $ 18.0 $ 3.7 $ 5.0 $ (6.1 ) $ 328.0 $ 348.6 (1) Kudu's results are from April 4, 2019, the date White Mountains began consolidating Kudu, to September 30, 2019. (2) MediaAlpha’s results are from January 1, 2019 to February 26, 2019, the date of the MediaAlpha Transaction. |
Schedule of Reconciliation of Revenue from Segments to Consolidated | In compliance with ASC 606, Revenues from Contracts with Customers, the following tables present White Mountains’s total revenues by revenue source for the three months ended September 30, 2020 and 2019: Millions HG Global/BAM NSM Kudu Other Operations Total Three Months Ended September 30, 2020 Commission and other revenue Specialty Transportation $ — $ 21.9 $ — $ — $ 21.9 Real Estate — 6.0 — — 6.0 Social Services — 8.6 — — 8.6 Pet — 14.7 — — 14.7 United Kingdom — 13.9 — — 13.9 Other — 5.6 — 2.1 7.7 Total commission and other revenue — 70.7 — 2.1 72.8 Product revenues — — — 2.0 2.0 Revenues from contracts with customers — 70.7 — 4.1 74.8 Other revenues (1) 14.5 — 16.3 353.9 384.7 Total revenues $ 14.5 $ 70.7 $ 16.3 $ 358.0 $ 459.5 (1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers. Millions HG Global/BAM NSM Kudu Other Operations Total Nine Months Ended September 30, 2020 Commission and other revenue Specialty Transportation $ — $ 66.1 $ — $ — $ 66.1 Real Estate — 32.7 — — 32.7 Social Services — 22.2 — — 22.2 Pet — 39.8 — — 39.8 United Kingdom (2) — 36.3 — — 36.3 Other — 14.7 — 6.1 20.8 Total commission and other revenue — 211.8 — 6.1 217.9 Product revenues — — — 6.4 6.4 Revenues from contracts with customers — 211.8 — 12.5 224.3 Other revenues (1) 58.1 — 21.0 356.5 435.6 Total revenues $ 58.1 $ 211.8 $ 21.0 $ 369.0 $ 659.9 (1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers. (2) Includes the results of Kingsbridge from April 7, 2020, the date of the Kingsbridge transaction. Millions HG Global/BAM NSM Kudu Other Operations Total Three Months Ended September 30, 2019 Commission and other revenue Specialty Transportation $ — $ 20.6 $ — $ — $ 20.6 Real Estate — 4.9 — — 4.9 Social Services — 7.4 — — 7.4 Pet — 10.4 — — 10.4 United Kingdom — 11.2 — — 11.2 Other — 5.4 — 1.9 7.3 Total commission and other revenue — 59.9 — 1.9 61.8 Products — — — 2.5 2.5 Total revenues from contracts with customers — 59.9 — 4.4 64.3 Other revenues (1) 18.0 — 7.5 65.7 91.2 Total revenues $ 18.0 $ 59.9 $ 7.5 $ 70.1 $ 155.5 (1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers. Millions HG Global/BAM NSM Kudu MediaAlpha Other Operations Total Nine Months Ended September 30, 2019 Commission and other revenue Specialty Transportation $ — $ 60.3 $ — $ — $ — $ 60.3 Real Estate — 25.4 — — — 25.4 Social Services — 19.7 — — — 19.7 Pet — 19.9 — — — 19.9 United Kingdom — 35.5 — — — 35.5 Other — 14.5 — — 4.5 19.0 Total commission and other revenue — 175.3 — — 4.5 179.8 Advertising revenues — — — 48.8 — 48.8 Revenues from contracts with customers — 175.3 — 48.8 4.5 228.6 Products — — — — 3.1 3.1 Total revenues from contracts with customers — 175.3 — 48.8 7.6 231.7 Other revenues (1) 61.5 — 11.9 — 413.0 486.4 Total revenues $ 61.5 $ 175.3 $ 11.9 $ 48.8 $ 420.6 $ 718.1 (1) Other revenues consist of premiums, investment income, investment gains and losses and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers. |
Equity-Method Eligible Invest_2
Equity-Method Eligible Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table presents White Mountains’s significant equity method eligible investments as of September 30, 2020 and December 31, 2019: Basic Ownership Interest Investee September 30, 2020 December 31, 2019 Instrument Held PassportCard/DavidShield (1) 53.8% 50.0% Common shares MediaAlpha 48.3% 48.3% Units durchblicker 45.0% 45.0% Common shares Elementum 30.0% 30.0% Limited partnership interest Tuckerman Capital Funds 14.5 - 62.2% 17.5 - 62.4% Limited and general partnership interests Enlightenment Capital Funds 9.6 - 66.7% 10.0 - 38.4% Limited and general partnership interests JAM Partners L.P. — 11.1% Limited partnership interest Kudu Participation Contracts 3.2 - 35.0% 3.2 - 30.0% Revenue and earnings participation contracts (1) During the nine months ending September 30, 2020, White Mountains made an additional $15 million investment in PassportCard/DavidShield. See Note 2 — “Significant Transactions” . The following tables present summarized financial information for MediaAlpha which is considered a significant subsidiary for the nine months ending September 30, 2020: Millions September 30, 2020 December 31, 2019 Balance sheet data: Total assets $ 135.7 $ 105.4 Total liabilities $ 460.8 $ 144.9 Three Months Ended Nine Months Ended September 30, September 30, Millions 2020 2019 2020 2019 Income statement data: Total revenues $ 151.5 $ 110.4 $ 394.6 $ 281.9 Total expenses $ (144.1 ) $ (102.6 ) $ (368.2 ) $ (274.5 ) Net income $ 7.4 $ 7.8 $ 26.4 $ 7.4 The following table presents the carrying values of White Mountains’s equity method eligible investments recorded within other long-term investments as of September 30, 2020 and December 31, 2019: Millions September 30, 2020 December 31, 2019 Equity method eligible investments, at fair value $ 1,087.0 $ 761.7 Other, at fair value (1) 84.2 94.6 Total other long-term investments $ 1,171.2 $ 856.3 (1) Consists of other long-term investments that are not equity method eligible. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of the fair value and carrying value of financial instruments | The following table presents the fair value and carrying value of this financial instrument as of September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Millions Fair Value Carrying Value Fair Value Carrying Value NSM Bank Facility $ 276.1 $ 268.8 $ 221.2 $ 217.4 Other NSM debt $ 1.6 $ 1.4 $ 1.7 $ 1.8 Kudu Bank Facility $ 74.4 $ 71.0 $ 53.6 (1) $ 53.6 Other Operations debt $ 18.5 $ 18.2 $ 11.3 $ 10.7 (1) White Mountains measured the fair value of the Kudu Bank Facility debt at the carrying value as a result of the debt being acquired on December 23, 2019. See Note 5 — “Debt” . |
Held for Sale and Discontinue_2
Held for Sale and Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Earnings Per Share for Discontinued Operations | The following table presents the Company’s computation of earnings per share for discontinued operations for the three and nine months ended September 30, 2020 and 2019 : Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019 Basic and diluted earnings per share numerators (in millions): Net income attributable to White Mountains’s common shareholders $ 232.9 $ 48.7 $ 219.5 $ 353.6 Less: total income from continuing operations, net of tax 233.6 47.8 220.3 352.0 Net (loss) income from discontinued operations attributable to White Mountains’s common shareholders $ (.7 ) $ .9 $ (.8 ) $ 1.6 Allocation of earnings to participating restricted common shares (1) — — — — Basic and diluted (losses) earnings per share numerators (2) $ (.7 ) $ .9 $ (.8 ) $ 1.6 Basic earnings per share denominators (in thousands): Total average common shares outstanding during the period 3,101.8 3,185.4 3,129.0 3,180.4 Average unvested restricted common shares (3) (43.1 ) (43.4 ) (40.0 ) (39.6 ) Basic earnings per share denominator 3,058.7 3,142.0 3,089.0 3,140.8 Diluted earnings per share denominator (in thousands): Total average common shares outstanding during the period 3,101.8 3,185.4 3,129.0 3,180.4 Average unvested restricted common shares (3) (43.1 ) (43.4 ) (40.0 ) (39.6 ) Diluted earnings per share denominator 3,058.7 3,142.0 3,089.0 3,140.8 Basic and diluted (losses) earnings per share (in dollars) - discontinued operations: $ (.23 ) $ .28 $ (.26 ) $ .50 (1) Restricted shares issued by White Mountains contain dividend participation features, and therefore, are considered participating securities. (2) Net earnings attributable to White Mountains’s common shareholders, net of restricted share amounts, is equal to undistributed earnings for the three and nine months ended September 30, 2020 and 2019 . (3) Restricted common shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans” . |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Basis of Presentation (Details) - USD ($) | Apr. 04, 2019 | Dec. 31, 2019 | Sep. 30, 2020 | Apr. 07, 2020 | Mar. 31, 2020 | Apr. 03, 2019 | Jan. 01, 2019 | Feb. 05, 2018 | Dec. 31, 2017 | Jul. 31, 2012 |
Basis of Presentation | ||||||||||
Payments to acquire business, net | $ 81,400,000 | |||||||||
Total commitment under revolving credit facility | $ 291,400,000 | $ 234,000,000 | ||||||||
ROU lease asset | $ 22,600,000 | $ 38,300,000 | $ 23,200,000 | |||||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |||||||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | |||||||||
Operating lease liability | $ 22,800,000 | $ 39,100,000 | $ 23,200,000 | |||||||
HG Global | ||||||||||
Basis of Presentation | ||||||||||
Percentage of par value of policy reinsured | 15.00% | |||||||||
Surplus notes | $ 503,000,000 | |||||||||
Preferred Stock | HG Global | ||||||||||
Basis of Presentation | ||||||||||
Ownership interest (as a percent) | 96.60% | 96.90% | ||||||||
Common equity securities | HG Global | ||||||||||
Basis of Presentation | ||||||||||
Ownership interest (as a percent) | 89.60% | 88.40% | ||||||||
NSM Insurance HoldCo, LLC | ||||||||||
Basis of Presentation | ||||||||||
Ownership interest (as a percent) | 96.40% | 96.60% | ||||||||
Fully diluted ownership interest (as a percent) | 88.40% | 89.60% | ||||||||
Asset Management (Kudu) | ||||||||||
Basis of Presentation | ||||||||||
Ownership interest (as a percent) | 99.10% | 49.50% | 49.50% | |||||||
Fully diluted ownership interest (as a percent) | 85.40% | 42.70% | 42.70% | |||||||
Unfunded capital commitment | $ 250,000,000 | $ 129,000,000 | $ 94,500,000 | $ 250,000,000 | ||||||
Increase (decrease) in capital commitment | 100,000,000 | |||||||||
Funded capital commitment | 350,000,000 | |||||||||
Series A BAM Surplus Note | HG Global | ||||||||||
Basis of Presentation | ||||||||||
Surplus notes | $ 203,000,000 | 203,000,000 | ||||||||
Series B BAM Surplus Note | HG Global | ||||||||||
Basis of Presentation | ||||||||||
Surplus notes | $ 300,000,000 | |||||||||
Kudu Debt | Delayed Draw Term Loans | Kudu | ||||||||||
Basis of Presentation | ||||||||||
Total commitment under revolving credit facility | $ 125,000,000 |
Significant Transactions (Detai
Significant Transactions (Details) | May 07, 2020USD ($) | Apr. 07, 2020GBP (£) | Apr. 07, 2020USD ($) | Jun. 28, 2019USD ($) | Apr. 04, 2019USD ($) | Apr. 01, 2019USD ($) | Feb. 26, 2019USD ($) | Dec. 03, 2018USD ($) | May 18, 2018USD ($)earnout_period | May 11, 2018USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | May 31, 2019USD ($) | Apr. 03, 2019USD ($) | Dec. 31, 2018 | Feb. 05, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Commitment to fund | $ 125,000,000 | ||||||||||||||||||||
Cash consideration to acquire businesses and interest in affiliates | $ 129,400,000 | $ 243,400,000 | |||||||||||||||||||
Goodwill | $ 540,100,000 | $ 394,700,000 | 540,100,000 | ||||||||||||||||||
Change in fair value of contingent consideration earnout liabilities | 700,000 | $ (2,000,000) | (1,600,000) | 5,600,000 | |||||||||||||||||
Payments to acquire business, net | $ 81,400,000 | ||||||||||||||||||||
Total commitment under revolving credit facility | $ 291,400,000 | $ 234,000,000 | |||||||||||||||||||
Specialty Insurance Distribution (NSM) | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Contingent consideration earnout liabilities | 11,800,000 | 20,600,000 | 11,800,000 | ||||||||||||||||||
Payment for contingent consideration liability | 600,000 | 6,400,000 | 2,600,000 | 7,000,000 | 2,600,000 | ||||||||||||||||
Change in fair value of contingent consideration earnout liabilities | $ 700,000 | (2,000,000) | $ (1,600,000) | 5,600,000 | |||||||||||||||||
Marketing Technology (MediaAlpha) | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Ownership interest (as a percent) | 48.30% | 61.00% | |||||||||||||||||||
Fully diluted ownership interest (as a percent) | 42.00% | 58.90% | |||||||||||||||||||
Unrealized gain (loss) on investments | 114,700,000 | ||||||||||||||||||||
Proceeds from dividends received | $ 89,300,000 | ||||||||||||||||||||
Net gain from sale of discontinued operations, net of tax | $ 67,500,000 | ||||||||||||||||||||
Assets, fair value | $ 114,700,000 | ||||||||||||||||||||
Unrealized investment gain | 114,700,000 | ||||||||||||||||||||
Total realized and unrealized gain on sale of minority stake | $ 182,200,000 | ||||||||||||||||||||
Passport/DavidShield | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Ownership interest (as a percent) | 53.80% | 50.00% | 53.80% | ||||||||||||||||||
Stock issued during period, value, acquisitions | $ 15,000,000 | ||||||||||||||||||||
NSM Bank Facility | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Amount borrowed | $ 100,000,000 | ||||||||||||||||||||
NSM Bank Facility | Specialty Insurance Distribution (NSM) | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Amount borrowed | $ 275,000,000 | $ 275,000,000 | |||||||||||||||||||
NSM Bank Facility | Specialty Insurance Distribution (NSM) | Revolving credit loan | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Proceeds from borrowings | 0 | $ 0 | 0 | 6,500,000 | |||||||||||||||||
Total commitment under revolving credit facility | 15,000,000 | $ 10,000,000 | |||||||||||||||||||
Kudu Debt | Kudu | Revolving credit loan | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Total commitment under revolving credit facility | 125,000,000 | ||||||||||||||||||||
Remaining borrowing capacity under revolving credit facility | 51,000,000 | $ 68,000,000 | 51,000,000 | ||||||||||||||||||
NSM Insurance HoldCo, LLC | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Ownership interest (as a percent) | 95.00% | ||||||||||||||||||||
Fully diluted ownership interest (as a percent) | 83.60% | ||||||||||||||||||||
Cash consideration to acquire businesses and interest in affiliates | $ 29,000,000 | $ 274,200,000 | |||||||||||||||||||
Fresh Insurance Services Group Limited | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Ownership interest (as a percent) | 100.00% | ||||||||||||||||||||
Equity method investment, aggregate cost | $ 49,600,000 | ||||||||||||||||||||
Proceeds from borrowings | $ 51,000,000 | ||||||||||||||||||||
Purchase price adjustment | $ 700,000 | ||||||||||||||||||||
Number of earnout periods | earnout_period | 2 | ||||||||||||||||||||
KBK Insurance Group, Inc. & KBK Premium Services, Inc. | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Cash consideration to acquire businesses and interest in affiliates | 60,000,000 | ||||||||||||||||||||
Proceeds from borrowings | 30,100,000 | ||||||||||||||||||||
Goodwill and intangible assets acquired | $ 59,400,000 | ||||||||||||||||||||
Goodwill | 32,600,000 | ||||||||||||||||||||
Intangible assets acquired | 32,700,000 | ||||||||||||||||||||
Contingent consideration earnout liabilities | $ 5,900,000 | ||||||||||||||||||||
Embrace Pet Insurance | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Goodwill | $ 52,200,000 | ||||||||||||||||||||
Intangible assets acquired | 15,400,000 | ||||||||||||||||||||
Embrace Pet Insurance | Specialty Insurance Distribution (NSM) | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Cash consideration to acquire businesses and interest in affiliates | 58,200,000 | ||||||||||||||||||||
Proceeds from borrowings | $ 20,400,000 | ||||||||||||||||||||
Percentage of voting interests acquired | 100.00% | ||||||||||||||||||||
Payments to acquire businesses, gross | $ 71,500,000 | ||||||||||||||||||||
Kingsbridge Group Limited | Specialty Insurance Distribution (NSM) | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Cash consideration to acquire businesses and interest in affiliates | £ 107,200,000 | 132,000,000 | |||||||||||||||||||
Proceeds from borrowings | £ 42,500,000 | $ 52,400,000 | |||||||||||||||||||
Goodwill and intangible assets acquired | $ 125,100,000 | $ 125,100,000 | |||||||||||||||||||
Percentage of voting interests acquired | 100.00% | ||||||||||||||||||||
Kingsbridge Group Limited | White Mountains | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Cash consideration to acquire businesses and interest in affiliates | $ 80,300,000 | ||||||||||||||||||||
Elementum Holdings, L.P. | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Ownership interest (as a percent) | 30.00% | 30.00% | 30.00% | 30.00% | |||||||||||||||||
Other investments | $ 55,100,000 | ||||||||||||||||||||
Insurance-Linked Securities Funds | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Commitment to fund | $ 50,000,000 | ||||||||||||||||||||
Elementum Funds | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Equity method investment, aggregate cost | $ 52,700,000 | $ 52,700,000 | |||||||||||||||||||
NSM Insurance HoldCo, LLC | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Ownership interest (as a percent) | 96.60% | 96.40% | 96.60% | ||||||||||||||||||
Fully diluted ownership interest (as a percent) | 89.60% | 88.40% | 89.60% | ||||||||||||||||||
AIG Collector Car Business | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Intangible assets acquired | $ 82,500,000 | ||||||||||||||||||||
Payments to acquire intangible assets | 82,500,000 | ||||||||||||||||||||
AIG Collector Car Business | Specialty Insurance Distribution (NSM) | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Proceeds from borrowings | 22,500,000 | ||||||||||||||||||||
AIG Collector Car Business | White Mountains | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Cash consideration to acquire businesses and interest in affiliates | $ 59,100,000 | ||||||||||||||||||||
Asset Management (Kudu) | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Ownership interest (as a percent) | 99.10% | 49.50% | 49.50% | ||||||||||||||||||
Fully diluted ownership interest (as a percent) | 85.40% | 42.70% | 42.70% | ||||||||||||||||||
Goodwill | $ 7,600,000 | ||||||||||||||||||||
Intangible assets acquired | 2,200,000 | ||||||||||||||||||||
Unfunded capital commitment | 250,000,000 | $ 94,500,000 | $ 129,000,000 | $ 94,500,000 | $ 250,000,000 | ||||||||||||||||
Assets acquired | 155,500,000 | ||||||||||||||||||||
Liabilities acquired | 800,000 | ||||||||||||||||||||
Noncontrolling interest acquired | $ 1,500,000 | ||||||||||||||||||||
Increase (decrease) in capital commitment | 100,000,000 | ||||||||||||||||||||
Funded capital commitment | $ 350,000,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investment income | ||||
Total investment income | $ 71.5 | $ 18.8 | $ 114.6 | $ 56.5 |
Third-party investment expenses | (0.3) | (0.4) | (0.9) | (1.1) |
Net investment income, pre-tax | 71.2 | 18.4 | 113.7 | 55.4 |
Fixed maturity investments | ||||
Investment income | ||||
Total investment income | 7 | 8 | 22.4 | 24.4 |
Short-term investments | ||||
Investment income | ||||
Total investment income | 0.1 | 1.3 | 1 | 3.9 |
Common equity securities | ||||
Investment income | ||||
Total investment income | 0.5 | 2.5 | 6.5 | 10.8 |
Other long-term investments | ||||
Investment income | ||||
Total investment income | $ 63.9 | $ 7 | $ 84.7 | $ 17.4 |
Investment Securities - Net Rea
Investment Securities - Net Realized and Unrealized Investment Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Net realized and unrealized investment gains | $ 306.6 | $ 67 | $ 302.8 | $ 347.8 |
Less: net gains on investment securities sold during the period | 36.1 | 0 | 29.6 | 12.4 |
Investments Held | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Net realized and unrealized investment gains | 270.5 | 67 | 273.2 | 335.4 |
Fixed maturity investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Net realized and unrealized investment gains | 3.6 | 8.9 | 35.8 | 46.9 |
Short-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Net realized and unrealized investment gains | 0 | 0 | 0.4 | 0.3 |
Common equity securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Net realized and unrealized investment gains | 48.4 | 2.4 | 5.9 | 141.5 |
Other long-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Net realized and unrealized investment gains | 254.6 | 55.7 | 260.7 | 159.1 |
Gain (loss) on investments, exchange rate effect | 0.8 | (0.8) | 0.8 | (0.8) |
Other long-term investments | MediaAlpha | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Realized gain associated with unconsolidated affiliates | 67.5 | |||
Unrealized gain associated with unconsolidated affiliates | 114.7 | |||
MediaAlpha | Other long-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Net realized and unrealized investment gains | $ 250 | $ 35.3 | $ 295 | $ 150 |
Investment Securities - Investm
Investment Securities - Investment gains (losses) for Level 3 (Details) - Level 3 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Debt securities, trading, unrealized gain (loss) | $ 260.1 | $ 54.4 | $ 276 | $ 154.4 |
Other long-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Debt securities, trading, unrealized gain (loss) | $ 260.1 | $ 54.4 | $ 276 | $ 154.4 |
Investment Securities - Inves_2
Investment Securities - Investment Holdings Fixed Maturity Table (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
U.S. Government and agency obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost or Amortized Cost | $ 206.2 | $ 231.7 |
Gross Unrealized Gains | 4.4 | 1 |
Gross Unrealized Losses | 0 | (0.2) |
Carrying Value | 210.6 | 232.5 |
Debt securities issued by corporations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost or Amortized Cost | 505.4 | 454.9 |
Gross Unrealized Gains | 24 | 12.5 |
Gross Unrealized Losses | (0.7) | (0.2) |
Carrying Value | 528.7 | 467.2 |
Municipal obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost or Amortized Cost | 251 | 284.7 |
Gross Unrealized Gains | 20.4 | 12.5 |
Gross Unrealized Losses | (0.1) | (0.1) |
Carrying Value | 271.3 | 297.1 |
Mortgage and asset-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost or Amortized Cost | 203.6 | 206.6 |
Gross Unrealized Gains | 7.3 | 2.7 |
Gross Unrealized Losses | 0 | (0.3) |
Carrying Value | 210.9 | 209 |
Total fixed maturity investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost or Amortized Cost | 1,166.2 | 1,177.9 |
Gross Unrealized Gains | 56.1 | 28.7 |
Gross Unrealized Losses | (0.8) | (0.8) |
Carrying Value | $ 1,221.5 | $ 1,205.8 |
Investment Securities - Inves_3
Investment Securities - Investment Holding Common Equities/ Other Investments (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Common equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost or Amortized Cost | $ 124.2 | $ 553.3 |
Gross Unrealized Gains | 16.5 | 130.6 |
Gross Unrealized Losses | 0 | 0 |
Net Foreign Currency Losses | 0 | 0 |
Common equity securities, at fair value | 140.7 | 683.9 |
Other long-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost or Amortized Cost | 696.4 | 667.4 |
Gross Unrealized Gains | 552.4 | 255.2 |
Gross Unrealized Losses | (76.1) | (64.1) |
Net Foreign Currency Losses | (1.5) | (2.2) |
Common equity securities, at fair value | $ 1,171.2 | $ 856.3 |
Investment Securities - Other l
Investment Securities - Other long-term investments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | $ 1,171.2 | $ 856.3 |
Marketing Technology (MediaAlpha) | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | 475 | 180 |
Asset Management (Kudu) | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | 325.5 | 266.5 |
PassportCard/DavidShield | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | 95 | 90 |
Elementum Holdings, L.P. | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | 55.1 | 55.1 |
Other unconsolidated entities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | 31.8 | 33.7 |
Total unconsolidated entities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | 982.4 | 625.3 |
Private equity funds and hedge funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | 118.2 | 161.1 |
Insurance-linked securities funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | 52.7 | 41.2 |
Private debt instruments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other Long-term Investments | 17.9 | 28.7 |
Private debt investments | $ 5.1 | $ 5 |
Investment Securities - Hedge F
Investment Securities - Hedge Funds and Private Equity Funds (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($)fund | Dec. 31, 2019USD ($) | |
Private equity funds | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of investments | fund | 14 | ||
Hedge and private equity funds included in other long-term investments | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Largest single fund investment | $ 23.7 | $ 54.6 | |
Hedge funds | Hedge funds | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Transfer from investments | $ 45.6 |
Investment Securities - Fair Va
Investment Securities - Fair Value of Hedge Funds and Private Equity Funds (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Hedge and private equity funds included in other long-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair Value | $ 118.2 | $ 161.1 |
Unfunded Commitments | 41.5 | 50.2 |
Private equity funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair Value | 118.2 | 106.5 |
Unfunded Commitments | 41.5 | 50.2 |
Private equity funds | Aerospace/Defense/Government | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair Value | 59.4 | 33.8 |
Unfunded Commitments | 16.1 | 23.3 |
Private equity funds | Manufacturing/Industrial | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair Value | 39.8 | 57.7 |
Unfunded Commitments | 2 | 4.1 |
Private equity funds | Financial services | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair Value | 19 | 15 |
Unfunded Commitments | 23.4 | 22.8 |
Hedge funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair Value | 0 | 54.6 |
Unfunded Commitments | 0 | 0 |
Hedge funds | Long/short banks and financials | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair Value | 0 | 54.6 |
Unfunded Commitments | $ 0 | $ 0 |
Investment Securities - Inves_4
Investment Securities - Investments In Private Equity Funds Subject to Lock-Up Periods (Details) - Private equity funds $ in Millions | Sep. 30, 2020USD ($) |
Debt and Equity Securities, FV-NI [Line Items] | |
Fair Value | $ 118.2 |
1 – 3 years | |
Debt and Equity Securities, FV-NI [Line Items] | |
Fair Value | 4.7 |
3 – 5 years | |
Debt and Equity Securities, FV-NI [Line Items] | |
Fair Value | 36.4 |
5 – 10 years | |
Debt and Equity Securities, FV-NI [Line Items] | |
Fair Value | 71.7 |
Greater than 10 years | |
Debt and Equity Securities, FV-NI [Line Items] | |
Fair Value | $ 5.4 |
Investment Securities - Insuran
Investment Securities - Insurance-Linked Securities Funds (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020USD ($)fund | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | $ 2,533.4 | $ 2,746 | $ 2,569.4 | $ 2,328.7 |
Minimum | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Redemptions and advanced redemption notice period | 30 days | |||
Maximum | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Redemptions and advanced redemption notice period | 90 days | |||
Insurance-Linked Securities Funds | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Number of investments | fund | 4 | |||
Fair value investments | $ 52.7 |
Investment Securities - Fair _2
Investment Securities - Fair Value Measurements (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Percentage of investments recorded at fair value | 62.00% | 71.00% |
Investment Securities - Fair _3
Investment Securities - Fair Value Measurement by Level (Details) $ in Millions | Sep. 30, 2020USD ($)Investment | Dec. 31, 2019USD ($)Investment | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | $ 2,533.4 | $ 2,746 | $ 2,569.4 | $ 2,328.7 |
Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 528.7 | 467.2 | ||
Mortgage and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 210.9 | 209 | ||
Short-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Short-term investments, at fair value | $ 571.8 | $ 201.2 | 272.5 | 214.2 |
Common equity securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Number of investments | Investment | 1 | 2 | ||
Level 1 | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | $ 295.3 | $ 780 | 703.7 | 842.6 |
Level 2 | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 1,066.8 | 1,109.6 | 1,092 | 1,160.5 |
Level 2 | Mortgage and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 210.9 | 209 | ||
Level 3 | Mortgage and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Level 3 | Common equity securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0.1 | 0.1 | ||
Level 3 | Other long-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 1,000.3 | 654 | $ 586.8 | $ 138.7 |
Fair value measured on a recurring basis | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 3,105.2 | 2,947.2 | ||
Fair value measured on a recurring basis | U.S. Government and agency obligations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 210.6 | 232.5 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 528.7 | 467.2 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | Financials | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 142.9 | 144.8 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | Industrial | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 61.5 | 59 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | Technology | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 68.5 | 41.2 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | Consumer | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 60.7 | 50.9 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | Health Care | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 49.3 | 52.6 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | Communications | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 42.3 | 31.3 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | Energy | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 38.9 | 44.9 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | Materials | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 37.4 | 17.5 | ||
Fair value measured on a recurring basis | Debt securities issued by corporations | Utilities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 27.2 | 25 | ||
Fair value measured on a recurring basis | Municipal obligations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 271.3 | 297.1 | ||
Fair value measured on a recurring basis | Mortgage and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 210.9 | 209 | ||
Fair value measured on a recurring basis | Fixed maturity investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 1,221.5 | 1,205.8 | ||
Fair value measured on a recurring basis | Short-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Short-term investments, at fair value | 571.8 | 201.2 | ||
Fair value measured on a recurring basis | Common equity securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 140.7 | 683.9 | ||
Fair value measured on a recurring basis | Common equity securities | Exchange traded funds | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 84.7 | 536.4 | ||
Fair value measured on a recurring basis | Common equity securities | Other | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 56 | 147.5 | ||
Fair value measured on a recurring basis | Other long-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 1,000.3 | 654 | ||
Fair value measured on a recurring basis | Other long-term investments — NAV | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 170.9 | 202.3 | ||
Fair value measured on a recurring basis | Level 1 | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 865.9 | 969.4 | ||
Fair value measured on a recurring basis | Level 1 | U.S. Government and agency obligations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 210.6 | 232.5 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Financials | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Industrial | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Technology | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Consumer | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Health Care | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Communications | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Energy | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Materials | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Debt securities issued by corporations | Utilities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Municipal obligations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Mortgage and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Fixed maturity investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 210.6 | 232.5 | ||
Fair value measured on a recurring basis | Level 1 | Short-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Short-term investments, at fair value | 570.6 | 189.4 | ||
Fair value measured on a recurring basis | Level 1 | Common equity securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 84.7 | 547.5 | ||
Fair value measured on a recurring basis | Level 1 | Common equity securities | Exchange traded funds | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 84.7 | 521.6 | ||
Fair value measured on a recurring basis | Level 1 | Common equity securities | Other | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 25.9 | ||
Fair value measured on a recurring basis | Level 1 | Other long-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 1 | Other long-term investments — NAV | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 2 | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 1,068 | 1,121.4 | ||
Fair value measured on a recurring basis | Level 2 | U.S. Government and agency obligations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 528.7 | 467.2 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Financials | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 142.9 | 144.8 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Industrial | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 61.5 | 59 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Technology | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 68.5 | 41.2 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Consumer | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 60.7 | 50.9 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Health Care | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 49.3 | 52.6 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Communications | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 42.3 | 31.3 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Energy | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 38.9 | 44.9 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Materials | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 37.4 | 17.5 | ||
Fair value measured on a recurring basis | Level 2 | Debt securities issued by corporations | Utilities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 27.2 | 25 | ||
Fair value measured on a recurring basis | Level 2 | Municipal obligations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 271.3 | 297.1 | ||
Fair value measured on a recurring basis | Level 2 | Mortgage and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 210.9 | 209 | ||
Fair value measured on a recurring basis | Level 2 | Fixed maturity investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 1,010.9 | 973.3 | ||
Fair value measured on a recurring basis | Level 2 | Short-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Short-term investments, at fair value | 1.2 | 11.8 | ||
Fair value measured on a recurring basis | Level 2 | Common equity securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 55.9 | 136.3 | ||
Fair value measured on a recurring basis | Level 2 | Common equity securities | Exchange traded funds | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 14.8 | ||
Fair value measured on a recurring basis | Level 2 | Common equity securities | Other | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 55.9 | 121.5 | ||
Fair value measured on a recurring basis | Level 2 | Other long-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 2 | Other long-term investments — NAV | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 1,000.4 | 654.1 | ||
Fair value measured on a recurring basis | Level 3 | U.S. Government and agency obligations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | Financials | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | Industrial | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | Technology | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | Consumer | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | Health Care | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | Communications | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | Energy | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | Materials | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Debt securities issued by corporations | Utilities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Municipal obligations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Mortgage and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Fixed maturity investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Short-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Short-term investments, at fair value | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Common equity securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0.1 | 0.1 | ||
Fair value measured on a recurring basis | Level 3 | Common equity securities | Exchange traded funds | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Fair value measured on a recurring basis | Level 3 | Common equity securities | Other | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0.1 | 0.1 | ||
Fair value measured on a recurring basis | Level 3 | Other long-term investments | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 1,000.3 | 654 | ||
Fair value measured on a recurring basis | Level 3 | Other long-term investments — NAV | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | $ 0 | $ 0 |
Investment Securities - Debt se
Investment Securities - Debt securities issued by corporation (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | $ 2,533.4 | $ 2,746 | $ 2,569.4 | $ 2,328.7 |
Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 528.7 | 467.2 | ||
AAA | Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 11.2 | 9.5 | ||
AA | Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 58.2 | 73.9 | ||
A | Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 307.7 | 288.5 | ||
BBB | Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 150 | 95.3 | ||
BB | Debt securities issued by corporations | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | $ 1.6 | $ 0 |
Investment Securities - Mortgag
Investment Securities - Mortgage-backed Asset Securities Table (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | $ 2,533.4 | $ 2,746 | $ 2,569.4 | $ 2,328.7 |
Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 189 | 179.9 | ||
Other asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 21.9 | 29.1 | ||
Mortgage-backed and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 210.9 | 209 | ||
Level 2 | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 1,066.8 | 1,109.6 | $ 1,092 | $ 1,160.5 |
Level 2 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 189 | 179.9 | ||
Level 2 | Other asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 21.9 | 29.1 | ||
Level 2 | Mortgage-backed and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 210.9 | 209 | ||
Level 3 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Level 3 | Other asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Level 3 | Mortgage-backed and asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
FNMA | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 84.5 | 88.6 | ||
FNMA | Level 2 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 84.5 | 88.6 | ||
FNMA | Level 3 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
FHLMC | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 67.1 | 60.5 | ||
FHLMC | Level 2 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 67.1 | 60.5 | ||
FHLMC | Level 3 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
GNMA | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 37.4 | 30.8 | ||
GNMA | Level 2 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 37.4 | 30.8 | ||
GNMA | Level 3 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Total agency | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 189 | 179.9 | ||
Total agency | Level 2 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 189 | 179.9 | ||
Total agency | Level 3 | Mortgage-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Credit card receivables | Other asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 11.3 | 14 | ||
Credit card receivables | Level 2 | Other asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 11.3 | 14 | ||
Credit card receivables | Level 3 | Other asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 0 | 0 | ||
Vehicle receivables | Other asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 10.6 | 15.1 | ||
Vehicle receivables | Level 2 | Other asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | 10.6 | 15.1 | ||
Vehicle receivables | Level 3 | Other asset-backed securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Fair value investments | $ 0 | $ 0 |
Investment Securities - Rollfor
Investment Securities - Rollforward of Fair Value Measurements by Level (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Beginning balance | $ 2,328.7 | $ 2,746 | $ 2,328.7 | ||
Net realized and unrealized gains (losses) | 302.4 | 347.5 | |||
Amortization/Accretion | (3) | (1) | |||
Purchases | 563.6 | 750.4 | |||
Sales | (1,075.6) | (856.2) | |||
Transfers in | 0 | 82.6 | |||
Transfers out | 0 | (82.6) | |||
Ending balance | 2,533.4 | 2,569.4 | |||
Level 1 Investments | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Beginning balance | 842.6 | 780 | 842.6 | ||
Net realized and unrealized gains (losses) | 29.2 | 121.8 | |||
Amortization/Accretion | 0 | 0.2 | |||
Purchases | 128.8 | 101.4 | |||
Sales | (642.7) | (362.3) | |||
Transfers in | 0 | 0 | |||
Transfers out | 0 | 0 | |||
Ending balance | 295.3 | 703.7 | |||
Level 2 Investments | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Beginning balance | 1,160.5 | 1,109.6 | 1,160.5 | ||
Net realized and unrealized gains (losses) | 12.5 | 66.6 | |||
Amortization/Accretion | (3) | (1.2) | |||
Purchases | 316.2 | 331.3 | |||
Sales | (368.5) | (465.2) | |||
Transfers in | 0 | 0 | |||
Transfers out | 0 | 0 | |||
Ending balance | 1,066.8 | 1,092 | |||
Common equity securities | Level 3 Investments | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Beginning balance | 0.1 | ||||
Net realized and unrealized gains (losses) | 0 | ||||
Amortization/Accretion | 0 | ||||
Purchases | 0 | ||||
Sales | 0 | ||||
Transfers in | 0 | ||||
Transfers out | 0 | ||||
Ending balance | 0.1 | ||||
Other long-term investments | Level 3 Investments | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Beginning balance | 138.7 | 654 | 138.7 | ||
Net realized and unrealized gains (losses) | 275.6 | 154.2 | |||
Amortization/Accretion | 0 | 0 | |||
Purchases | 78.8 | 211.3 | |||
Sales | (8.1) | ||||
Transfers in | 0 | 82.6 | |||
Transfers out | 0 | 0 | |||
Ending balance | 1,000.3 | 586.8 | |||
Hedge and private equity funds included in other long-term investments | NAV | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Beginning balance | 186.9 | 202.3 | 186.9 | ||
Net realized and unrealized gains (losses) | (14.9) | 4.9 | |||
Amortization/Accretion | 0 | 0 | |||
Purchases | 39.8 | 106.4 | |||
Sales | (56.3) | (28.7) | |||
Transfers in | 0 | 0 | |||
Transfers out | 0 | (82.6) | |||
Ending balance | 170.9 | 186.9 | |||
Short-term investments | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Short-term investments, at fair value | 571.8 | 272.5 | $ 201.2 | $ 214.2 | |
Realized and unrealized losses | $ 0.4 | 0.3 | |||
Asset Management (Kudu) | NAV | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Purchases | 70.1 | ||||
Transfers out | $ (71.7) | ||||
Marketing Technology (MediaAlpha) | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Unrealized investment gain | $ 114.7 |
Investment Securities - Signifi
Investment Securities - Significant Unobservable Inputs (Details) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | |
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value investments | $ 2,533.4 | $ 2,569.4 | $ 2,746 | $ 2,328.7 |
Investments in kudu participation contracts | $ 57.5 | $ 74.4 | ||
Marketing Technology (MediaAlpha) | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 180 | |||
Marketing Technology (MediaAlpha) | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 15.00% | |||
Marketing Technology (MediaAlpha) | Measurement Input, Long-term Revenue Growth Rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Terminal Revenue Growth Rate | 4.00% | |||
Kudu Investments | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 266.5 | |||
Kudu Investments | Minimum | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 18.00% | 15.00% | ||
Kudu Investments | Minimum | Terminal Multiple | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Terminal Cash Flow Exit Multiple | 6 | 6 | ||
Kudu Investments | Maximum | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 23.00% | 22.00% | ||
Kudu Investments | Maximum | Terminal Multiple | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Terminal Cash Flow Exit Multiple | 12 | 12 | ||
PassportCard/DavidShield | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 90 | |||
PassportCard/DavidShield | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 22.00% | |||
PassportCard/DavidShield | Measurement Input, Long-term Revenue Growth Rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Terminal Revenue Growth Rate | 4.00% | |||
Elementum Holdings, L.P. | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 55.1 | |||
Elementum Holdings, L.P. | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 20.00% | |||
Terminal Revenue Growth Rate | 4.00% | |||
Private debt instruments | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 23.7 | |||
Private debt instruments | Minimum | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 5.00% | 4.00% | ||
Private debt instruments | Maximum | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 10.00% | 9.00% | ||
All other | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 23.7 | |||
All other | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Terminal Revenue Growth Rate | 4.00% | |||
All other | Minimum | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 20.00% | 25.00% | ||
All other | Maximum | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 24.00% | 32.00% | ||
Noblr, Inc. | Standard Poors NR Rating | Recent transaction | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 5 | |||
Noblr, Inc. | Recent transaction | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Share price (in USD per share) | $ / shares | $ 2.17 | |||
Zillion Insurance Services | Standard Poors NR Rating | Recent transaction | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 2.5 | |||
Zillion Insurance Services | Recent transaction | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | 2.5 | |||
Compare.com | Standard Poors NR Rating | Estimated Net Realizable Value | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | 2.5 | |||
Compare.com | Estimated Net Realizable Value | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 2.5 | |||
Zillion Insurance Services | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Investments in kudu participation contracts | $ 2.5 | |||
Kudu | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Investments in kudu participation contracts | 57.4 | |||
Passport/DavidShield | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Investments in kudu participation contracts | 15 | |||
Level 3 | Marketing Technology (MediaAlpha) | Standard Poors NR Rating | Valuation Technique, Probability Weighted Expected Return Method [Member] | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value investments | $ 475 | |||
Level 3 | Marketing Technology (MediaAlpha) | Weight Ascribed to DCF [Member] | Standard Poors NR Rating | Valuation Technique, Probability Weighted Expected Return Method [Member] | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Measurement input | 0.35 | |||
Level 3 | Marketing Technology (MediaAlpha) | Weight Ascribed to IPO [Member] | Standard Poors NR Rating | Valuation Technique, Probability Weighted Expected Return Method [Member] | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Measurement input | 0.65 | |||
Level 3 | Marketing Technology (MediaAlpha) | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Measurement input | 0.13 | |||
Level 3 | Marketing Technology (MediaAlpha) | Measurement Input, Long-term Revenue Growth Rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Measurement input | 0.04 | |||
Level 3 | Marketing Technology (MediaAlpha) | Measurement Input, Revenue Multiple [Member] | Standard Poors NR Rating | Valuation Technique, Probability Weighted Expected Return Method [Member] | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Measurement input | 2 | |||
Level 3 | Kudu Investments | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value investments | $ 325.5 | |||
Level 3 | PassportCard/DavidShield | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value investments | $ 95 | |||
Level 3 | PassportCard/DavidShield | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 23.00% | |||
Level 3 | PassportCard/DavidShield | Measurement Input, Long-term Revenue Growth Rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Terminal Revenue Growth Rate | 4.00% | |||
Level 3 | Elementum Holdings, L.P. | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value investments | $ 55.1 | |||
Level 3 | Elementum Holdings, L.P. | Discount rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value, discount rate | 19.00% | |||
Level 3 | Elementum Holdings, L.P. | Measurement Input, Long-term Revenue Growth Rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Terminal Revenue Growth Rate | 4.00% | |||
Level 3 | Private debt instruments | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value investments | $ 17.9 | |||
Level 3 | All other | Standard Poors NR Rating | Discounted cash flow | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value investments | $ 18.1 | |||
Level 3 | All other | Measurement Input, Long-term Revenue Growth Rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Terminal Revenue Growth Rate | 4.00% | |||
Level 3 | Noblr, Inc. | Standard Poors NR Rating | Recent transaction | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value investments | $ 8.7 | |||
Level 3 | Noblr, Inc. | Measurement Input, Long-term Revenue Growth Rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Share price (in USD per share) | $ / shares | $ 2.17 | |||
Level 3 | Zillion Insurance Services | Standard Poors NR Rating | Recent transaction | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Fair value investments | $ 5 | |||
Level 3 | Zillion Insurance Services | Measurement Input, Long-term Revenue Growth Rate | Standard Poors NR Rating | ||||
Quantitative information for Level 3 Fair Value Measurements Assets | ||||
Assets, fair value | $ 5 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Acquisition Date Fair Values, Accumulated Amortization and Net Carrying Values for Other Intangibles Assets and Goodwill, By Company (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, fair value | $ 540.1 | $ 402.3 | |
Goodwill, impairment loss | 7.6 | ||
Goodwill, net carrying value | 540.1 | 394.7 | |
Other intangible assets, acquisition date fair value | 285.7 | 292.1 | |
Other intangible assets, accumulated amortization | 43.3 | 29.3 | |
Impairment of intangible assets, including goodwill | 6.2 | 10.4 | |
Other intangible assets, impairments | 6.2 | 2.8 | |
Other intangible assets, net carrying value | 236.2 | 260 | |
Goodwill and other intangible assets | 776.3 | 654.7 | |
Intangible assets and goodwill, fair value | 825.8 | 694.4 | |
Non-controlling interest | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and other intangible assets | (27.1) | (23.4) | |
Total | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill and other intangible assets | 749.2 | 631.3 | |
Specialty Insurance Distribution (NSM) | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, fair value | 511.8 | 381.6 | |
Goodwill, net carrying value | 511.8 | 381.6 | |
Other intangible assets, acquisition date fair value | 266.5 | 271.7 | |
Other intangible assets, accumulated amortization | 41.8 | 27.9 | |
Other intangible assets, impairments | $ 6.2 | 6.2 | 2.4 |
Other intangible assets, net carrying value | 218.5 | 241.4 | |
Goodwill, foreign currency translation gain (loss) | 5.2 | 1.4 | |
Other intangible assets, foreign currency translation gain (loss) | $ (0.5) | 0.7 | |
Specialty Insurance Distribution (NSM) | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, weighted average useful life (in years) | 9 years | ||
Other intangible assets, acquisition date fair value | $ 118.4 | 121.7 | |
Other intangible assets, accumulated amortization | 28.4 | 19.8 | |
Other intangible assets, impairments | 3.5 | 1.4 | |
Other intangible assets, net carrying value | $ 86.5 | 100.5 | |
Specialty Insurance Distribution (NSM) | Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, weighted average useful life (in years) | 19 years | ||
Other intangible assets, acquisition date fair value | $ 60.8 | 61.9 | |
Other intangible assets, accumulated amortization | 7.1 | 5.3 | |
Other intangible assets, impairments | 1 | 0.4 | |
Other intangible assets, net carrying value | 52.7 | 56.2 | |
Specialty Insurance Distribution (NSM) | Information technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, acquisition date fair value | 3.1 | 3.9 | |
Other intangible assets, accumulated amortization | 1.4 | 1.4 | |
Other intangible assets, impairments | 1.7 | 0.6 | |
Other intangible assets, net carrying value | $ 0 | 1.9 | |
Specialty Insurance Distribution (NSM) | Renewal rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, weighted average useful life (in years) | 12 years | ||
Other intangible assets, acquisition date fair value | $ 82.5 | 82.5 | |
Other intangible assets, accumulated amortization | 3.9 | 0.7 | |
Other intangible assets, impairments | 0 | 0 | |
Other intangible assets, net carrying value | $ 78.6 | 81.8 | |
Specialty Insurance Distribution (NSM) | Other Intangible Assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, weighted average useful life (in years) | 3 years | ||
Other intangible assets, acquisition date fair value | $ 1.7 | 1.7 | |
Other intangible assets, accumulated amortization | 1 | 0.7 | |
Other intangible assets, impairments | 0 | 0 | |
Other intangible assets, net carrying value | 0.7 | 1 | |
Kudu | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, fair value | 7.6 | 7.6 | |
Goodwill, net carrying value | $ 7.6 | 7.6 | |
Kudu | Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, weighted average useful life (in years) | 7 years | ||
Other intangible assets, acquisition date fair value | $ 2.2 | 2.2 | |
Other intangible assets, accumulated amortization | 0.5 | 0.2 | |
Other intangible assets, impairments | 0 | ||
Other intangible assets, net carrying value | 1.7 | 2 | |
Other Operations | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, fair value | 20.7 | 13.1 | |
Goodwill, impairment loss | 7.6 | ||
Goodwill, net carrying value | 20.7 | 5.5 | |
Other intangible assets, acquisition date fair value | 17 | 18.2 | |
Other intangible assets, accumulated amortization | 1 | 1.2 | |
Other intangible assets, impairments | 0.4 | ||
Other intangible assets, net carrying value | $ 16 | 16.6 | |
Other Operations | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, weighted average useful life (in years) | 11 years | ||
Other intangible assets, acquisition date fair value | $ 7.2 | 7.2 | |
Other intangible assets, accumulated amortization | 0.8 | 0.4 | |
Other intangible assets, impairments | 0 | ||
Other intangible assets, net carrying value | $ 6.4 | 6.8 | |
Other Operations | Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, weighted average useful life (in years) | 10 years | ||
Other intangible assets, acquisition date fair value | $ 1 | 1.7 | |
Other intangible assets, accumulated amortization | 0.1 | 0.5 | |
Other intangible assets, impairments | 0.2 | ||
Other intangible assets, net carrying value | $ 0.9 | 1 | |
Other Operations | Information technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, weighted average useful life (in years) | 5 years | ||
Other intangible assets, acquisition date fair value | $ 0 | 0.5 | |
Other intangible assets, accumulated amortization | 0 | 0.3 | |
Other intangible assets, impairments | 0.2 | ||
Other intangible assets, net carrying value | $ 0 | 0 | |
Other Operations | Other Intangible Assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, weighted average useful life (in years) | 5 years | ||
Other intangible assets, acquisition date fair value | $ 0.2 | 0.2 | |
Other intangible assets, accumulated amortization | 0.1 | 0 | |
Other intangible assets, impairments | 0 | ||
Other intangible assets, net carrying value | 0.1 | 0.2 | |
Other Operations | Insurance Licenses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, acquisition date fair value | 8.6 | 8.6 | |
Other intangible assets, accumulated amortization | 0 | 0 | |
Other intangible assets, impairments | 0 | ||
Other intangible assets, net carrying value | $ 8.6 | $ 8.6 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of the Acquisition Date Fair Values of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2020 | Apr. 07, 2020 | Jun. 28, 2019 | Apr. 04, 2019 | Apr. 01, 2019 | Mar. 12, 2019 | |
Specialty Insurance Distribution (NSM) | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill and intangible assets acquired | $ 275.2 | ||||||
Specialty Insurance Distribution (NSM) | Renewal rights | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill and intangible assets acquired | $ 82.5 | ||||||
Embrace Pet Insurance | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Computer software, additions | $ 3.4 | ||||||
Embrace Pet Insurance | Specialty Insurance Distribution (NSM) | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill and intangible assets acquired | $ 67.6 | ||||||
Kingsbridge Group Limited | Specialty Insurance Distribution (NSM) | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill and intangible assets acquired | $ 125.1 | ||||||
Kudu | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill and intangible assets acquired | $ 9.8 | ||||||
Other | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill and intangible assets acquired | $ 37.5 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, impairments | $ 6.2 | $ 2.8 | |
Specialty Insurance Distribution (NSM) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, impairments | $ 6.2 | $ 6.2 | $ 2.4 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, beginning balance | $ 394.7 | ||||
Other intangible assets, impairments | (6.2) | $ (2.8) | |||
Amortization of other intangible assets | $ 5.4 | $ 4.6 | 17.1 | $ 15.4 | |
Goodwill, ending balance | 540.1 | 540.1 | 394.7 | ||
Renewal rights | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Payments to acquire intangible assets | 0 | 82.5 | |||
Goodwill | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, beginning balance | 518.2 | 428.6 | 394.7 | 379.9 | 379.9 |
Deconsolidation of business | 0 | (18.3) | |||
Attribution of acquisition date fair value estimates between goodwill and other intangible assets | 0 | (2.2) | 0 | (29) | |
Acquisitions of businesses | 14.9 | 0 | 140 | 93.8 | |
Goodwill, foreign currency translation gain (loss) | 7 | (1.6) | 5.2 | (1.6) | |
Measurement period adjustments | 0.2 | 0 | |||
Other intangible assets, impairments | 0 | 0 | |||
Goodwill, ending balance | 540.1 | 424.8 | 540.1 | 424.8 | 394.7 |
Goodwill | Renewal rights | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Payments to acquire intangible assets | 0 | 0 | 0 | 0 | |
Other Intangible Assets | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets (excluding goodwill), beginning balance | 241.7 | 239 | 260 | 157.6 | 157.6 |
Deconsolidation of business | 0 | (23.5) | |||
Attribution of acquisition date fair value estimates between goodwill and other intangible assets | 0 | 2.2 | 0 | 29 | |
Acquisitions of businesses | 0 | 0 | 0 | 0 | |
Other intangible assets, foreign currency translation gain (loss) | (0.1) | (0.5) | (0.5) | 0 | |
Measurement period adjustments | 0 | 5.9 | |||
Other intangible assets, impairments | (6.2) | 0 | |||
Amortization of other intangible assets | 17.1 | 15.4 | |||
Other intangible assets (excluding goodwill), ending balance | 236.2 | 236.1 | 236.2 | 236.1 | 260 |
Other Intangible Assets | Renewal rights | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Payments to acquire intangible assets | 0 | 0 | 0 | 82.5 | |
Total Goodwill and Other Intangible Assets | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, gross (including goodwill), beginning balance | 759.9 | 667.6 | 654.7 | 537.5 | 537.5 |
Deconsolidation of business | 0 | (41.8) | |||
Attribution of acquisition date fair value estimates between goodwill and other intangible assets | 0 | 0 | 0 | 0 | |
Acquisitions of businesses | 14.9 | 0 | 140 | 93.8 | |
Other intangible assets, foreign currency translation gain (loss) | 6.9 | (2.1) | 4.7 | (1.6) | |
Measurement period adjustments | 0.2 | 5.9 | |||
Other intangible assets, impairments | (6.2) | 0 | |||
Amortization of other intangible assets | 5.4 | 4.6 | 17.1 | 15.4 | |
Other intangible assets, gross (including goodwill), ending balance | 776.3 | $ 660.9 | 776.3 | $ 660.9 | $ 654.7 |
Total Goodwill and Other Intangible Assets | Renewal rights | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Payments to acquire intangible assets | $ 0 | $ 0 |
Debt - Summary of Debt Outstand
Debt - Summary of Debt Outstanding (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | May 11, 2018 |
Debt Instrument | |||
Total debt | $ 359,400,000 | $ 283,500,000 | |
NSM Bank Facility | |||
Debt Instrument | |||
Amount borrowed | $ 100,000,000 | ||
Other NSM debt | |||
Debt Instrument | |||
Total debt | 1,800,000 | ||
Term Loan | NSM Bank Facility | |||
Debt Instrument | |||
Unamortized issuance cost | (6,200,000) | (3,900,000) | |
Total debt | 268,800,000 | 217,400,000 | |
Long-term Debt, Gross | $ 275,000,000 | $ 221,300,000 | |
Effective percentage | 7.40% | 7.50% | |
Term Loan | Other NSM debt | |||
Debt Instrument | |||
Effective percentage | 2.80% | 3.00% | |
Term Loan | Other Operations | |||
Debt Instrument | |||
Unamortized issuance cost | $ (600,000) | $ (400,000) | |
Total debt | 10,700,000 | ||
Long-term Debt, Gross | $ 18,800,000 | $ 11,100,000 | |
Effective percentage | 10.10% | 8.30% | |
Term Loan | Kudu Bank Facility | |||
Debt Instrument | |||
Unamortized issuance cost | $ (3,000,000) | $ (3,400,000) | |
Total debt | 53,600,000 | ||
Long-term Debt, Gross | $ 74,000,000 | $ 57,000,000 | |
Effective percentage | 8.40% | 8.30% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Apr. 07, 2020GBP (£) | Apr. 07, 2020USD ($) | Sep. 30, 2020USD ($)credit_facility | Sep. 30, 2019USD ($) | Sep. 30, 2020GBP (£) | Sep. 30, 2020USD ($)credit_facility | Sep. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 04, 2020GBP (£) | Jun. 04, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 23, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 15, 2018USD ($) | May 11, 2018USD ($) |
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | $ 291,400,000 | $ 234,000,000 | |||||||||||||||
Number of Secured Credit Facilities | credit_facility | 2 | 2 | |||||||||||||||
Debt | $ 359,400,000 | $ 359,400,000 | $ 283,500,000 | ||||||||||||||
Specialty Insurance Distribution (NSM) | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt | $ 270,200,000 | $ 270,200,000 | $ 219,200,000 | ||||||||||||||
Specialty Insurance Distribution (NSM) | Interest Rate Swap | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Derivative, fixed interest rate | 2.97% | ||||||||||||||||
Derivative, variable interest rate | 1.00% | 1.00% | |||||||||||||||
NSM Bank Facility | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Amount borrowed | $ 100,000,000 | ||||||||||||||||
NSM Bank Facility | Specialty Insurance Distribution (NSM) | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Amount borrowed | $ 275,000,000 | $ 275,000,000 | |||||||||||||||
Percentage of discounted future cash flows | 10.00% | 10.00% | |||||||||||||||
Debt, weighted average interest rate, all-in | 6.91% | 6.91% | 6.60% | ||||||||||||||
Debt | $ 275,000,000 | $ 221,900,000 | $ 275,000,000 | $ 221,900,000 | $ 273,400,000 | $ 221,300,000 | $ 222,300,000 | $ 180,400,000 | |||||||||
NSM Bank Facility | Term Loan | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt | $ 268,800,000 | $ 268,800,000 | $ 217,400,000 | ||||||||||||||
Effective percentage | 7.40% | 7.40% | 7.50% | ||||||||||||||
Long-term Debt, Gross | $ 275,000,000 | $ 275,000,000 | $ 221,300,000 | ||||||||||||||
NSM Bank Facility | Term Loan | Specialty Insurance Distribution (NSM) | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Amount borrowed | 276,400,000 | £ 42,500,000 | $ 52,400,000 | 224,000,000 | |||||||||||||
Proceeds from borrowings | £ 42,500,000 | $ 52,400,000 | 0 | 0 | £ 42,500,000 | 52,400,000 | 42,900,000 | ||||||||||
Foreign currency translation | $ 2,300,000 | 0 | $ 2,600,000 | 0 | |||||||||||||
NSM Bank Facility | Term Loan | Specialty Insurance Distribution (NSM) | Designated as Hedging Instrument | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt, weighted average interest rate, all-in | 6.84% | 6.84% | |||||||||||||||
NSM Bank Facility | Term Loan | Specialty Insurance Distribution (NSM) | Interest Rate Swap | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | $ 151,000,000 | ||||||||||||||||
Debt, weighted average interest rate, all-in | 6.98% | ||||||||||||||||
Hedged liability, fair value | $ 151,000,000 | ||||||||||||||||
Derivative, fixed interest rate | 2.97% | ||||||||||||||||
Debt | $ 148,000,000 | $ 148,000,000 | |||||||||||||||
NSM Bank Facility | Term Loan | Specialty Insurance Distribution (NSM) | Interest Rate Swap | Designated as Hedging Instrument | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt, weighted average interest rate, all-in | 8.72% | 8.72% | |||||||||||||||
Debt | $ 148,000,000 | $ 148,000,000 | |||||||||||||||
NSM Bank Facility | Term Loan | Specialty Insurance Distribution (NSM) | Interest Rate Swap | Not Designated as Hedging Instrument | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt | $ 127,000,000 | $ 127,000,000 | |||||||||||||||
Effective percentage | 7.03% | 7.03% | |||||||||||||||
NSM Bank Facility | Term Loan | Specialty Insurance Distribution (NSM) | USD-LIBOR | Minimum | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Basis spread on variable rate | 4.25% | 4.25% | 5.50% | ||||||||||||||
NSM Bank Facility | Term Loan | Specialty Insurance Distribution (NSM) | USD-LIBOR | Maximum | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt instrument, interest rate, increase (decrease) | 1.25% | 1.25% | |||||||||||||||
Basis spread on variable rate | 4.75% | 4.75% | 6.00% | ||||||||||||||
NSM Bank Facility | Term Loan | Specialty Insurance Distribution (NSM) | GBP-LIBOR | Minimum | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Basis spread on variable rate | 6.00% | 6.00% | |||||||||||||||
NSM Bank Facility | Term Loan | Specialty Insurance Distribution (NSM) | GBP-LIBOR | Maximum | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt instrument, interest rate, increase (decrease) | 1.25% | 1.25% | |||||||||||||||
Basis spread on variable rate | 6.50% | 6.50% | |||||||||||||||
Derivative, cap interest rate | 1.25% | 1.25% | |||||||||||||||
NSM Bank Facility | Revolving credit loan | Specialty Insurance Distribution (NSM) | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | $ 15,000,000 | $ 10,000,000 | |||||||||||||||
Proceeds from borrowings | $ 0 | $ 0 | $ 0 | $ 6,500,000 | |||||||||||||
Other NSM | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt | $ 1,800,000 | ||||||||||||||||
Other NSM | Term Loan | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Effective percentage | 2.80% | 2.80% | 3.00% | ||||||||||||||
Other NSM | Term Loan | Specialty Insurance Distribution (NSM) | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt | $ 1,600,000 | $ 1,600,000 | |||||||||||||||
Kudu Bank Facility | Kudu | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | $ 124,000,000 | ||||||||||||||||
Kudu Bank Facility | Term Loan | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Debt | $ 53,600,000 | ||||||||||||||||
Effective percentage | 8.40% | 8.40% | 8.30% | ||||||||||||||
Long-term Debt, Gross | $ 74,000,000 | $ 74,000,000 | $ 57,000,000 | ||||||||||||||
Kudu Bank Facility | Term Loan | Kudu | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | 57,000,000 | ||||||||||||||||
Debt | 74,000,000 | 74,000,000 | |||||||||||||||
Proceeds from issuance of long-term debt | $ 17,000,000 | ||||||||||||||||
Kudu Bank Facility | Line of Credit | Kudu | USD-LIBOR | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Basis spread on variable rate | 1.00% | 1.00% | |||||||||||||||
Kudu Bank Facility | Line of Credit | Kudu | USD-LIBOR | Minimum | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Basis spread on variable rate | 5.50% | 5.50% | |||||||||||||||
Kudu Bank Facility | Line of Credit | Kudu | USD-LIBOR | Maximum | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Basis spread on variable rate | 6.25% | 6.25% | |||||||||||||||
Kudu Bank Facility | Line of Credit | Kudu | Prime Rate | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Basis spread on variable rate | 1.00% | 1.00% | |||||||||||||||
Kudu Bank Facility | Line of Credit | Kudu | Prime Rate | Minimum | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Basis spread on variable rate | 4.50% | 4.50% | |||||||||||||||
Kudu Bank Facility | Line of Credit | Kudu | Prime Rate | Maximum | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Basis spread on variable rate | 5.25% | 5.25% | |||||||||||||||
Kudu Bank Facility | Delayed Draw Term Loans | Kudu | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | 62,000,000 | ||||||||||||||||
Kudu Bank Facility | Revolving credit loan | Kudu | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | $ 5,000,000 | ||||||||||||||||
First Credit Facility | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | 16,300,000 | $ 16,300,000 | |||||||||||||||
First Credit Facility | Term Loan | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | 11,300,000 | 11,300,000 | |||||||||||||||
Long-term Debt, Gross | 9,800,000 | 9,800,000 | |||||||||||||||
First Credit Facility | Delayed Draw Term Loans | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | 3,000,000 | 3,000,000 | |||||||||||||||
First Credit Facility | Revolving credit loan | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | 2,000,000 | 2,000,000 | |||||||||||||||
Second Credit Facility | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | 15,000,000 | 15,000,000 | |||||||||||||||
Second Credit Facility | Term Loan | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | 9,000,000 | 9,000,000 | |||||||||||||||
Long-term Debt, Gross | 9,000,000 | 9,000,000 | |||||||||||||||
Second Credit Facility | Delayed Draw Term Loans | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | 4,000,000 | 4,000,000 | |||||||||||||||
Second Credit Facility | Revolving credit loan | |||||||||||||||||
Debt Instrument | |||||||||||||||||
Total commitment under revolving credit facility | $ 2,000,000 | $ 2,000,000 |
Debt - Schedule of the Change i
Debt - Schedule of the Change in Debt under the NSM Bank Facility (Details) £ in Millions, $ in Millions | Apr. 07, 2020GBP (£) | Apr. 07, 2020USD ($) | Apr. 01, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020GBP (£) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
Debt Instrument | ||||||||
Beginning balance | $ 283.5 | |||||||
Repayments of debt | (2.7) | $ (22.2) | ||||||
Ending balance | $ 359.4 | 359.4 | ||||||
Term Loan | NSM Bank Facility | ||||||||
Debt Instrument | ||||||||
Beginning balance | 217.4 | |||||||
Ending balance | 268.8 | 268.8 | ||||||
Specialty Insurance Distribution (NSM) | ||||||||
Debt Instrument | ||||||||
Beginning balance | 219.2 | |||||||
Ending balance | 270.2 | 270.2 | ||||||
Specialty Insurance Distribution (NSM) | NSM Bank Facility | ||||||||
Debt Instrument | ||||||||
Beginning balance | 273.4 | $ 222.3 | 221.3 | 180.4 | ||||
Ending balance | 275 | 221.9 | 275 | 221.9 | ||||
Specialty Insurance Distribution (NSM) | Term Loan | NSM Bank Facility | ||||||||
Debt Instrument | ||||||||
Proceeds from borrowings | £ 42.5 | $ 52.4 | 0 | 0 | £ 42.5 | 52.4 | 42.9 | |
Repayments of debt | (0.7) | (0.4) | (1.3) | (1.4) | ||||
Foreign currency translation | 2.3 | 0 | 2.6 | 0 | ||||
Specialty Insurance Distribution (NSM) | Revolving credit loan | NSM Bank Facility | ||||||||
Debt Instrument | ||||||||
Proceeds from borrowings | 0 | 0 | 0 | 6.5 | ||||
Repayments of debt | $ 0 | $ 0 | 0 | (6.5) | ||||
Kingsbridge Group Limited | Specialty Insurance Distribution (NSM) | ||||||||
Debt Instrument | ||||||||
Proceeds from borrowings | £ 42.5 | $ 52.4 | ||||||
Kingsbridge Group Limited | Specialty Insurance Distribution (NSM) | Term Loan | NSM Bank Facility | ||||||||
Debt Instrument | ||||||||
Proceeds from borrowings | $ 52.4 | |||||||
Embrace Pet Insurance | Specialty Insurance Distribution (NSM) | ||||||||
Debt Instrument | ||||||||
Proceeds from borrowings | $ 20.4 | |||||||
Embrace Pet Insurance | Specialty Insurance Distribution (NSM) | Term Loan | NSM Bank Facility | ||||||||
Debt Instrument | ||||||||
Proceeds from borrowings | 20.4 | |||||||
Renewal rights | Specialty Insurance Distribution (NSM) | Term Loan | NSM Bank Facility | ||||||||
Debt Instrument | ||||||||
Proceeds from borrowings | $ 22.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Contingency [Line Items] | ||||
Effective income tax rate reconciliation, percent | 30.70% | 17.20% | 33.70% | 5.40% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | ||
Income tax expense (benefit) | $ 98.5 | $ 8.8 | $ 97.1 | $ 18.9 |
Continuing Operations | BAM | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ 3.6 | $ 6.6 |
Derivatives - NSM Interest Rate
Derivatives - NSM Interest Rate Swap and Cap (Details) | Aug. 18, 2020 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 04, 2020GBP (£) | Jun. 04, 2020USD ($) | Apr. 07, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 15, 2018USD ($) | May 11, 2018USD ($) |
Derivative [Line Items] | |||||||||||||||
Total commitment under revolving credit facility | $ 291,400,000 | $ 234,000,000 | |||||||||||||
Debt | $ 359,400,000 | $ 359,400,000 | $ 283,500,000 | ||||||||||||
NSM Bank Facility | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Amount borrowed | $ 100,000,000 | ||||||||||||||
NSM Bank Facility | Term Loan | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Debt | 268,800,000 | 268,800,000 | 217,400,000 | ||||||||||||
Specialty Insurance Distribution (NSM) | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Debt | $ 270,200,000 | $ 270,200,000 | 219,200,000 | ||||||||||||
Specialty Insurance Distribution (NSM) | Interest Rate Swap | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Derivative, fixed interest rate | 2.97% | ||||||||||||||
Derivative, variable interest rate | 1.00% | 1.00% | |||||||||||||
Interest expense, net | $ 600,000 | $ 300,000 | $ 1,900,000 | $ 600,000 | |||||||||||
Derivative, fair value, net | 8,900,000 | 8,900,000 | 6,600,000 | ||||||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 500,000 | (800,000) | (2,300,000) | (5,100,000) | |||||||||||
Specialty Insurance Distribution (NSM) | Interest Rate Cap | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (100,000) | ||||||||||||||
Derivative, fair value, net | $ 100,000 | 100,000 | |||||||||||||
Derivative, Cost of Hedge | $ 100,000 | ||||||||||||||
GBP-LIBOR rate | 0.06% | 0.06% | |||||||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (100,000) | ||||||||||||||
Specialty Insurance Distribution (NSM) | Interest Rate Cap | GBP-LIBOR | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Derivative, cap interest rate | 1.25% | 1.25% | |||||||||||||
Specialty Insurance Distribution (NSM) | NSM Bank Facility | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Debt | $ 275,000,000 | $ 221,900,000 | $ 275,000,000 | $ 221,900,000 | $ 273,400,000 | $ 221,300,000 | $ 222,300,000 | $ 180,400,000 | |||||||
Debt, weighted average interest rate, all-in | 6.91% | 6.91% | 6.60% | ||||||||||||
Amount borrowed | $ 275,000,000 | $ 275,000,000 | |||||||||||||
Specialty Insurance Distribution (NSM) | NSM Bank Facility | Term Loan | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Amount borrowed | £ 42,500,000 | $ 52,400,000 | $ 276,400,000 | $ 224,000,000 | |||||||||||
Specialty Insurance Distribution (NSM) | NSM Bank Facility | Term Loan | Designated as Hedging Instrument | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Debt, weighted average interest rate, all-in | 6.84% | 6.84% | |||||||||||||
Specialty Insurance Distribution (NSM) | NSM Bank Facility | Interest Rate Swap | Term Loan | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Total commitment under revolving credit facility | $ 151,000,000 | ||||||||||||||
Derivative, fixed interest rate | 2.97% | ||||||||||||||
Debt | $ 148,000,000 | $ 148,000,000 | |||||||||||||
Debt, weighted average interest rate, all-in | 6.98% | ||||||||||||||
Specialty Insurance Distribution (NSM) | NSM Bank Facility | Interest Rate Swap | Term Loan | Designated as Hedging Instrument | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Debt | $ 148,000,000 | $ 148,000,000 | |||||||||||||
Debt, weighted average interest rate, all-in | 8.72% | 8.72% | |||||||||||||
Specialty Insurance Distribution (NSM) | NSM Bank Facility | Interest Rate Cap | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Amount borrowed | £ 42,500,000 | $ 52,400,000 | |||||||||||||
Debt instrument, term extension | 1 year |
Municipal Bond Guarantee - Narr
Municipal Bond Guarantee - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2014 | Jan. 31, 2020 | Nov. 30, 2018 | Apr. 30, 2018 | Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2012 | Dec. 31, 2024 | Jun. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2017 | Dec. 31, 2013 | Jul. 31, 2012 |
Guarantor Obligations [Line Items] | |||||||||||||||
Percent change in discounted future cash flows | 10.00% | ||||||||||||||
HG Global | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Collateral held in supplement trust | $ 813.8 | $ 786.7 | |||||||||||||
Interest receivable | $ 159.8 | 162.7 | |||||||||||||
BAM | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Surplus notes | 457.6 | $ 409.7 | |||||||||||||
Interest receivable | $ 7.5 | 4.7 | |||||||||||||
HG Global | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Capital invested | $ 594.5 | ||||||||||||||
Surplus notes | $ 503 | ||||||||||||||
Cash and Fixed Income Securities | 100 | ||||||||||||||
Percent over a target trust balance | 102.00% | ||||||||||||||
Supplement Trust Target | $ 603 | ||||||||||||||
HG Global | Preferred Stock | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Ownership interest (as a percent) | 96.90% | 96.60% | |||||||||||||
HG Global | Common equity securities | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Ownership interest (as a percent) | 88.40% | 89.60% | |||||||||||||
HG Global | Surplus Note | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Surplus notes | 503 | ||||||||||||||
Percentage of par value of policy reinsured | 15.00% | ||||||||||||||
HG Global | Series B BAM Surplus Note | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Surplus notes | 300 | ||||||||||||||
HG Global | Series A BAM Surplus Note | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Surplus notes | $ 203 | $ 203 | |||||||||||||
HG Global | BAM | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Term of Agreement | 10 years | ||||||||||||||
HG Global | BAM | Maximum | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Aggregate losses on ceded business | $ 75 | ||||||||||||||
HG Global | Non-controlling interest | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Capital invested | $ 14.5 | ||||||||||||||
BAM | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Number of years of change in interest rate | 3 years | ||||||||||||||
Municipal bond outstanding principal | $ 70,954.1 | $ 62,250.5 | $ 1,100 | ||||||||||||
Additional municipal bond guarantee | $ 36.9 | ||||||||||||||
BAM | Supplemental Trust | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Repayments of Unsecured Debt | $ 47.9 | ||||||||||||||
Accrued Interest Payment on Surplus Notes | 0.9 | ||||||||||||||
BAM | Surplus Note | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Percentage of risk premium ceded | 60.00% | ||||||||||||||
Derivative, fixed interest rate (as a percent) | 8.00% | ||||||||||||||
Repayments of Unsecured Debt | 65 | ||||||||||||||
Accrued Interest Payment on Surplus Notes | $ 16.2 | ||||||||||||||
BAM | US Treasury (UST) Interest Rate | Surplus Note | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Basis spread on variable rate | 3.00% | 4.60% | 5.70% | ||||||||||||
BAM | Forecast | Surplus Note | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Derivative, fixed interest rate (as a percent) | 8.00% | ||||||||||||||
BAM | Fidus Re Ltd. | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Secured Debt | $ 100 | ||||||||||||||
Collateralized financial guarantee, term | 12 years | ||||||||||||||
Collateral financial guarantee, callable term | 5 years | ||||||||||||||
Aggregate losses on ceded business | $ 165 | ||||||||||||||
Premium receivable, Premium expected to be collected | 100 | ||||||||||||||
Municipal bond outstanding principal | $ 2,200 | ||||||||||||||
Percentage of quota share reinsurance agreement | 100.00% | ||||||||||||||
BAM | Fidus Re Ltd. | Maximum | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Aggregate losses on ceded business | $ 276.1 | ||||||||||||||
Fidus Re Ltd. | BAM | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Losses above retention, percentage of liability | 90.00% |
Municipal Bond Guarantee - Sche
Municipal Bond Guarantee - Schedule of Municipal Bond Guarantee Insured Obligations (Details) - BAM $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020USD ($)Contract | Dec. 31, 2019USD ($)Contract | Sep. 30, 2019USD ($) | |
Guarantor Obligations [Line Items] | |||
Contracts outstanding | Contract | 10,495 | 8,987 | |
Remaining weighted average contract period outstanding (in years) | 10 years 8 months 12 days | 10 years 8 months 12 days | |
Municipal bond outstanding principal | $ 70,954.1 | $ 62,250.5 | $ 1,100 |
Municipal bond outstanding interest | 34,842.8 | 31,799.7 | |
Municipal bond debt service outstanding | 105,796.9 | 94,050.2 | |
Total gross unearned insurance premiums | $ 226.9 | $ 198.4 |
Municipal Bond Guarantee - Sc_2
Municipal Bond Guarantee - Schedule of Municipal Guarantee Insurance Contracts, Premium Received Over Contract Period (Details) - BAM - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Guarantor Obligations [Line Items] | ||
October 1, 2020 - December 31, 2020 | $ 5.3 | |
January 1, 2021 - March 31, 2021 | 5.3 | |
April 1, 2021 - June 30, 2021 | 5.2 | |
July 1, 2021 - September 30, 2021 | 5.1 | |
October 1, 2021 - December 31, 2021 | 5.1 | |
Total 2021 | 20.7 | |
2022 | 19.6 | |
2023 | 18.4 | |
2024 | 17.2 | |
2025 | 15.9 | |
2026 and thereafter | 129.8 | |
Total gross unearned insurance premiums | $ 226.9 | $ 198.4 |
Municipal Bond Guarantee - Sc_3
Municipal Bond Guarantee - Schedule of Net Written Premiums (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Gross earned premiums | $ 6.2 | $ 5.2 | $ 17.2 | $ 13.7 |
HG/BAM | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Direct written premiums | 14.4 | 10.2 | 45.5 | 30.6 |
Assumed written premiums | 0 | 10.6 | 0.1 | 10.6 |
Gross written premiums | 20.8 | 45.6 | 41.2 | |
Direct premiums earned | 5.3 | 4.4 | 14.5 | 11.9 |
Assumed premiums earned | 0.9 | 0.8 | 2.7 | 1.8 |
Gross earned premiums | $ 6.2 | $ 5.2 | $ 17.2 | $ 13.7 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share from Continuing Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic and diluted earnings per share numerators (in millions): | ||||
Net income attributable to White Mountains’s common shareholders | $ 232.9 | $ 48.7 | $ 219.5 | $ 353.6 |
Less: total (loss) income from discontinued operations, net of tax | (0.7) | 0.9 | (0.8) | 1.6 |
Net income from continuing operations attributable to White Mountains’s common shareholders | 233.6 | 47.8 | 220.3 | 352 |
Allocation of income for participating restricted common shares | (3.2) | (0.7) | (2.9) | (4.4) |
Basic and diluted earnings per share numerators | $ 230.4 | $ 47.1 | $ 217.4 | $ 347.6 |
Basic earnings per share denominators (in thousands): | ||||
Total average common shares outstanding during the period (in shares) | 3,101,800 | 3,185,400 | 3,129,000 | 3,180,400 |
Average unvested restricted common shares (in shares) | (43,100) | (43,400) | (40,000) | (39,600) |
Basic earnings (losses) per share denominator (in shares) | 3,058,700 | 3,142,000 | 3,089,000 | 3,140,800 |
Diluted earnings per share denominator (in thousands): | ||||
Total average common shares outstanding during the period (in shares) | 3,101,800 | 3,185,400 | 3,129,000 | 3,180,400 |
Average unvested restricted common shares (in shares) | (43,100) | (43,400) | (40,000) | (39,600) |
Diluted earnings (losses) per share denominator (in shares) | 3,058,700 | 3,142,000 | 3,089,000 | 3,140,800 |
Basic and diluted earnings per share (in dollars) - continuing operations: | ||||
Distributed earnings - dividends declared and paid (in USD per share) | $ 0 | $ 0 | $ 1 | $ 1 |
Undistributed earnings (losses) (in USD per share) | 75.32 | 15.01 | 69.40 | 109.67 |
Basic and diluted earnings (losses) per share (in USD per share) | $ 75.32 | $ 15.01 | $ 70.40 | $ 110.67 |
Earnings Per Share - Undistribu
Earnings Per Share - Undistributed Net Earnings From Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to White Mountains’s common shareholders, net of restricted common share amounts | $ 230.4 | $ 47.1 | $ 217.4 | $ 347.6 |
Dividends declared net of restricted common share amounts | 0 | 0 | (3.1) | (3.2) |
Total undistributed net earnings, net of restricted common share amounts | $ 230.4 | $ 47.1 | $ 214.3 | $ 344.4 |
Employee Share-Based Incentiv_3
Employee Share-Based Incentive Compensation Plans - Narrative (Details) - W T M Incentive Plan $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)shares | Sep. 30, 2019shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2019shares | |
Performance Share | ||||
Share-based compensation arrangement by share-based payment award | ||||
Vesting period | 3 years | |||
Performance cycle period | 3 years | |||
Target performance shares outstanding (in shares) | 43,105 | 43,105 | ||
Performance shares granted during period (in shares) | 0 | 0 | 14,055 | 15,600 |
Additional compensation cost that would be recognized if all outstanding performance shares vested | $ | $ 19.4 | $ 19.4 | ||
Performance Share | Minimum | ||||
Share-based compensation arrangement by share-based payment award | ||||
Share-based compensation arrangement by share-based payment award, multiplier | 0 | |||
Performance Share | Maximum | ||||
Share-based compensation arrangement by share-based payment award | ||||
Share-based compensation arrangement by share-based payment award, multiplier | 2 | |||
Restricted Share Cliff Vesting in January 2023 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Target performance shares outstanding (in shares) | 14,055 | 14,055 | ||
Restricted Share Cliff Vesting in January 2022 | ||||
Share-based compensation arrangement by share-based payment award | ||||
Performance shares granted during period (in shares) | 15,600 |
Employee Share-Based Incentiv_4
Employee Share-Based Incentive Compensation Plans - Performance Shares (Details) - Performance Share - W T M Incentive Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Target Performance Shares Outstanding | ||||
Beginning of period (in shares) | 42,458 | 42,473 | 42,473 | 40,616 |
Shares paid (in shares) | 0 | 0 | (14,070) | (13,715) |
New grants (in shares) | 0 | 0 | 14,055 | 15,600 |
Forfeitures and cancellations (in shares) | 0 | 0 | 0 | (28) |
End of period (in shares) | 42,458 | 42,473 | 42,458 | 42,473 |
Accrued Expense | ||||
Beginning of period | $ 15.8 | $ 30.8 | $ 43.7 | $ 31.7 |
Shares paid | 0 | 0 | (27.7) | (18.1) |
Forfeitures and cancellations | (0.3) | 0 | 0.1 | 0 |
Expense recognized | 13.6 | 5.6 | 13 | 22.8 |
End of period | $ 29.1 | $ 36.4 | $ 29.1 | $ 36.4 |
Performance Cycle 2018 to 2020 | ||||
Accrued Expense | ||||
Percentage of target payout - minimum actual | 174.00% | |||
Percentage of target payout - maximum actual | 180.00% | |||
Performance Cycle 2016 to 2018 | ||||
Accrued Expense | ||||
Percentage of target payout - minimum actual | 139.00% | |||
Percentage of target payout - maximum actual | 166.00% |
Employee Share-Based Incentiv_5
Employee Share-Based Incentive Compensation Plans - Performance Shares Granted Under the WTM Incentive Plan (Details) - Performance Share - W T M Incentive Plan - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Share-based compensation arrangement by share-based payment award | ||||||
Target performance shares outstanding (in shares) | 43,105 | |||||
Assumed forfeitures (in shares) | (647) | |||||
Total target performance shares outstanding (in shares) | 42,458 | 42,458 | 42,473 | 42,473 | 42,473 | 40,616 |
Accrued Expense | $ 29.6 | |||||
Assumed forfeitures | (0.5) | |||||
Total Accrued Expense | $ 29.1 | $ 15.8 | $ 43.7 | $ 36.4 | $ 30.8 | $ 31.7 |
Performance Cycle 2018 to 2020 | ||||||
Share-based compensation arrangement by share-based payment award | ||||||
Target performance shares outstanding (in shares) | 13,450 | |||||
Accrued Expense | $ 15.4 | |||||
Performance Cycle 2019 to 2021 | ||||||
Share-based compensation arrangement by share-based payment award | ||||||
Target performance shares outstanding (in shares) | 15,600 | |||||
Accrued Expense | $ 10.6 | |||||
Performance Cycle 2020 to 2022 | ||||||
Share-based compensation arrangement by share-based payment award | ||||||
Target performance shares outstanding (in shares) | 14,055 | |||||
Accrued Expense | $ 3.6 |
Employee Share-Based Incentiv_6
Employee Share-Based Incentive Compensation Plans - Restricted Shares (Details) - W T M Incentive Plan - Restricted Stock - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Shares | ||||
Beginning of period (in shares) | 43,105 | 43,395 | 43,395 | 41,510 |
Issued (in shares) | 0 | 0 | 14,055 | 15,600 |
Vested (in shares) | 0 | 0 | (14,345) | (13,715) |
Forfeited (in shares) | 0 | 0 | 0 | 0 |
End of period (in shares) | 43,105 | 43,395 | 43,105 | 43,395 |
Unamortized Issue Date Fair Value | ||||
Beginning of period | $ 23 | $ 21.9 | $ 16.7 | $ 12.5 |
Issued | 0 | 0 | 15.1 | 14.5 |
Forfeited | 0 | 0 | 0 | 0 |
Expense recognized | (3.6) | (2.6) | (12.4) | (7.7) |
End of period | $ 19.4 | $ 19.3 | $ 19.4 | $ 19.3 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | |||
ROU lease asset | $ 38.3 | $ 22.6 | $ 23.2 |
Operating lease liability | $ 39.1 | $ 22.8 | $ 23.2 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Lease cost | $ 1.6 | $ 1.9 | $ 5.7 | $ 5.4 |
Less: sublease income | 0.1 | 0.1 | 0.3 | 0.3 |
Net lease cost | $ 1.5 | $ 1.8 | $ 5.4 | $ 5.1 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments on Operating Leases (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | |||
Remainder of 2020 | $ 1.8 | ||
2021 | 7.6 | ||
2022 | 7.1 | ||
2023 | 6.9 | ||
2024 | 5.7 | ||
Thereafter | 17.2 | ||
Total undiscounted lease payments | 46.3 | ||
Less: present value adjustment | 7.2 | ||
Operating lease liability | $ 39.1 | $ 22.8 | $ 23.2 |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | |||
ROU lease asset | $ 38.3 | $ 22.6 | $ 23.2 |
Lease liability | $ 39.1 | $ 22.8 | $ 23.2 |
Operating lease, weighted average incremental borrowing rate, percent | 4.60% | 4.60% | |
HG/BAM | |||
Lessee, Lease, Description [Line Items] | |||
ROU lease asset | $ 9.9 | $ 10.4 | |
Lease liability | 9.9 | 10.4 | |
Specialty Insurance Distribution (NSM) | |||
Lessee, Lease, Description [Line Items] | |||
ROU lease asset | 17 | 4.8 | |
Lease liability | 17 | 4.8 | |
Asset Management (Kudu) | |||
Lessee, Lease, Description [Line Items] | |||
ROU lease asset | 2.1 | 2.3 | |
Lease liability | 2.1 | 2.3 | |
Other Operations | |||
Lessee, Lease, Description [Line Items] | |||
ROU lease asset | 9.3 | 5.1 | |
Lease liability | $ 10.1 | $ 5.3 |
Non-controlling Interests (Deta
Non-controlling Interests (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Noncontrolling Interest [Line Items] | ||
Total non-controlling interests | $ (98.5) | $ (116.8) |
Total Non-Controlling Excluding Reciprocals | ||
Noncontrolling Interest [Line Items] | ||
Total non-controlling interests | $ 31.9 | $ 29.9 |
HG Global | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling equity percentage | 3.10% | 3.10% |
Total non-controlling interests | $ 14.1 | $ 14.4 |
Specialty Insurance Distribution (NSM) | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling equity percentage | 3.40% | 3.60% |
Total non-controlling interests | $ 16.9 | $ 14.9 |
Kudu | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling equity percentage | 0.80% | 0.90% |
Total non-controlling interests | $ 2.2 | $ 2.2 |
Other | ||
Noncontrolling Interest [Line Items] | ||
Total non-controlling interests | $ (1.3) | $ (1.6) |
Build America Mutual | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling equity percentage | 100.00% | 100.00% |
Total non-controlling interests | $ (130.4) | $ (146.7) |
Segment Information - Financial
Segment Information - Financial Information for White Mountain's Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Earned insurance premiums | $ 6.2 | $ 5.2 | $ 17.2 | $ 13.7 |
Net investment income | 71.2 | 18.4 | 113.7 | 55.4 |
Net realized and unrealized investment gains | 306.6 | 67 | 302.8 | 233.1 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 182.2 | |||
Advertising and commission revenues | 60.3 | 51.3 | 180.3 | 200.9 |
Other revenues | 15.2 | 13.6 | 45.9 | 32.8 |
Total revenues | 459.5 | 155.5 | 659.9 | 718.1 |
Insurance acquisition expenses | 1.6 | 1.4 | 5.4 | 4.1 |
Other underwriting expenses | 0.1 | 0.1 | 0.3 | 0.3 |
Cost of sales | 2.3 | 2.3 | 6.5 | 45.6 |
General and administrative expenses | 103.3 | 78 | 266.7 | 236.9 |
Broker commission expenses | 17.1 | 15.3 | 56.4 | 48.9 |
Change in fair value of contingent consideration earnout liabilities | 0.7 | (2) | (1.6) | 5.6 |
Amortization of other intangible assets | 5.4 | 4.6 | 17.1 | 15.4 |
Interest expense | 7.8 | 4.7 | 21.2 | 12.7 |
Total expenses | 138.3 | 104.4 | 372 | 369.5 |
Pre-tax income (loss) from continuing operations | 321.2 | 51.1 | 287.9 | 348.6 |
HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Earned insurance premiums | 6.2 | 5.2 | 17.2 | 13.7 |
Net investment income | 4.7 | 5.4 | 15.1 | 16.1 |
Net realized and unrealized investment gains | 3.2 | 7.1 | 23.7 | 30.4 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | |||
Advertising and commission revenues | 0 | 0 | 0 | 0 |
Other revenues | 0.4 | 0.3 | 2.1 | 1.3 |
Total revenues | 14.5 | 18 | 58.1 | 61.5 |
Insurance acquisition expenses | 1.6 | 1.4 | 5.4 | 4.1 |
Other underwriting expenses | 0.1 | 0.1 | 0.3 | 0.3 |
Cost of sales | 0 | 0 | 0 | 0 |
General and administrative expenses | 13.9 | 12.5 | 41.1 | 39.1 |
Broker commission expenses | 0 | 0 | 0 | 0 |
Change in fair value of contingent consideration earnout liabilities | 0 | 0 | 0 | 0 |
Amortization of other intangible assets | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Total expenses | 15.6 | 14 | 46.8 | 43.5 |
Pre-tax income (loss) from continuing operations | (1.1) | 4 | 11.3 | 18 |
NSM | ||||
Segment Reporting Information [Line Items] | ||||
Earned insurance premiums | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Net realized and unrealized investment gains | 0 | 0 | 0 | 0 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | |||
Advertising and commission revenues | 58.2 | 49.4 | 174.2 | 147.6 |
Other revenues | 12.5 | 10.5 | 37.6 | 27.7 |
Total revenues | 70.7 | 59.9 | 211.8 | 175.3 |
Insurance acquisition expenses | 0 | 0 | 0 | |
Other underwriting expenses | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
General and administrative expenses | 42.9 | 33.3 | 131 | 91.4 |
Broker commission expenses | 17.1 | 15.3 | 56.4 | 48.9 |
Change in fair value of contingent consideration earnout liabilities | 0.7 | (2) | (1.6) | 5.6 |
Amortization of other intangible assets | 5.1 | 4.4 | 16.2 | 13.5 |
Interest expense | 6.1 | 4.4 | 16.1 | 12.2 |
Total expenses | 71.9 | 55.4 | 218.1 | 171.6 |
Pre-tax income (loss) from continuing operations | (1.2) | 4.5 | (6.3) | 3.7 |
Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Earned insurance premiums | 0 | 0 | 0 | 0 |
Net investment income | 6.4 | 4.6 | 19.3 | 8.6 |
Net realized and unrealized investment gains | 9.8 | 2.7 | 1.5 | 3.1 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | |||
Advertising and commission revenues | 0 | 0 | 0 | 0 |
Other revenues | 0.1 | 0.2 | 0.2 | 0.2 |
Total revenues | 16.3 | 7.5 | 21 | 11.9 |
Insurance acquisition expenses | 0 | 0 | 0 | 0 |
Other underwriting expenses | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
General and administrative expenses | 2.2 | 4.5 | 7.5 | 6.7 |
Broker commission expenses | 0 | 0 | 0 | 0 |
Change in fair value of contingent consideration earnout liabilities | 0 | 0 | 0 | 0 |
Amortization of other intangible assets | 0.1 | 0.2 | 0.3 | 0.2 |
Interest expense | 1.4 | 0 | 4.3 | 0 |
Total expenses | 3.7 | 4.7 | 12.1 | 6.9 |
Pre-tax income (loss) from continuing operations | 12.6 | 2.8 | 8.9 | 5 |
MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Earned insurance premiums | 0 | |||
Net investment income | 0 | |||
Net realized and unrealized investment gains | 0 | |||
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | |||
Advertising and commission revenues | 0 | 0 | 0 | 48.8 |
Other revenues | 0 | |||
Total revenues | 0 | 0 | 0 | 48.8 |
Insurance acquisition expenses | 0 | |||
Other underwriting expenses | 0 | |||
Cost of sales | 0 | 0 | 0 | 40.6 |
General and administrative expenses | 0 | 0 | 0 | 12.5 |
Broker commission expenses | 0 | |||
Change in fair value of contingent consideration earnout liabilities | 0 | |||
Amortization of other intangible assets | 0 | 0 | 0 | 1.6 |
Interest expense | 0 | 0 | 0 | 0.2 |
Total expenses | 0 | 0 | 0 | 54.9 |
Pre-tax income (loss) from continuing operations | (6.1) | |||
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Earned insurance premiums | 0 | 0 | 0 | 0 |
Net investment income | 60.1 | 8.4 | 79.3 | 30.7 |
Net realized and unrealized investment gains | 293.6 | 57.2 | 277.6 | 199.6 |
Realized gain and unrealized investment gain from the MediaAlpha Transaction | 0 | 0 | 0 | 182.2 |
Advertising and commission revenues | 2.1 | 1.9 | 6.1 | 4.5 |
Other revenues | 2.2 | 2.6 | 6 | 3.6 |
Total revenues | 358 | 70.1 | 369 | 420.6 |
Insurance acquisition expenses | 0 | 0 | 0 | 0 |
Other underwriting expenses | 0 | 0 | 0 | 0 |
Cost of sales | 2.3 | 2.3 | 6.5 | 5 |
General and administrative expenses | 44.3 | 27.7 | 87.1 | 87.2 |
Broker commission expenses | 0 | 0 | 0 | 0 |
Change in fair value of contingent consideration earnout liabilities | 0 | 0 | 0 | 0 |
Amortization of other intangible assets | 0.2 | 0 | 0.6 | 0.1 |
Interest expense | 0.3 | 0.3 | 0.8 | 0.3 |
Total expenses | 47.1 | 30.3 | 95 | 92.6 |
Pre-tax income (loss) from continuing operations | $ 310.9 | $ 39.8 | $ 274 | $ 328 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | $ 74.8 | $ 64.3 | $ 224.3 | $ 231.7 |
Other Revenue | 384.7 | 91.2 | 435.6 | 486.4 |
Total revenues | 459.5 | 155.5 | 659.9 | 718.1 |
HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other Revenue | 14.5 | 18 | 58.1 | 61.5 |
Total revenues | 14.5 | 18 | 58.1 | 61.5 |
NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 70.7 | 59.9 | 211.8 | 175.3 |
Other Revenue | 0 | 0 | 0 | 0 |
Total revenues | 70.7 | 59.9 | 211.8 | 175.3 |
Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other Revenue | 16.3 | 7.5 | 21 | 11.9 |
Total revenues | 16.3 | 7.5 | 21 | 11.9 |
MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 48.8 | |||
Other Revenue | 0 | |||
Total revenues | 0 | 0 | 0 | 48.8 |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 4.1 | 4.4 | 12.5 | 7.6 |
Other Revenue | 353.9 | 65.7 | 356.5 | 413 |
Total revenues | 358 | 70.1 | 369 | 420.6 |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 13.9 | 11.2 | 36.3 | 35.5 |
United Kingdom | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
United Kingdom | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 13.9 | 11.2 | 36.3 | 35.5 |
United Kingdom | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
United Kingdom | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
United Kingdom | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Specialty Transportation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 21.9 | 20.6 | 66.1 | 60.3 |
Specialty Transportation | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Specialty Transportation | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 21.9 | 20.6 | 66.1 | 60.3 |
Specialty Transportation | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Specialty Transportation | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Specialty Transportation | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 6 | 4.9 | 32.7 | 25.4 |
Real Estate | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Real Estate | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 6 | 4.9 | 32.7 | 25.4 |
Real Estate | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Real Estate | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Real Estate | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Social Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 8.6 | 7.4 | 22.2 | 19.7 |
Social Services | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Social Services | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 8.6 | 7.4 | 22.2 | 19.7 |
Social Services | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Social Services | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Social Services | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Pet | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 14.7 | 10.4 | 39.8 | 19.9 |
Pet | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Pet | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 14.7 | 10.4 | 39.8 | 19.9 |
Pet | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Pet | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Pet | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 7.7 | 7.3 | 20.8 | 19 |
Other | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 5.6 | 5.4 | 14.7 | 14.5 |
Other | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Other | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 2.1 | 1.9 | 6.1 | 4.5 |
Total commission and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 72.8 | 61.8 | 217.9 | 179.8 |
Total commission and other revenue | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Total commission and other revenue | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 70.7 | 59.9 | 211.8 | 175.3 |
Total commission and other revenue | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Total commission and other revenue | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Total commission and other revenue | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 2.1 | 1.9 | 6.1 | 4.5 |
Advertising revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 48.8 | |||
Advertising revenues | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Advertising revenues | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Advertising revenues | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Advertising revenues | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 48.8 | |||
Advertising revenues | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Revenues from contracts with customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 228.6 | |||
Revenues from contracts with customers | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Revenues from contracts with customers | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 175.3 | |||
Revenues from contracts with customers | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Revenues from contracts with customers | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 48.8 | |||
Revenues from contracts with customers | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 4.5 | |||
Product revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 2 | 2.5 | 6.4 | 3.1 |
Product revenues | HG Global/ BAM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Product revenues | NSM | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Product revenues | Kudu | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Product revenues | MediaAlpha | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | 0 | |||
Product revenues | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from contracts with customers | $ 2 | $ 2.5 | $ 6.4 | $ 3.1 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020segments | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 4 |
Equity-Method Eligible Invest_3
Equity-Method Eligible Investments - Carrying Values of Equity Method Eligible Investments Recorded within Other Long-Term Investments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Investments in unconsolidated affiliates | ||
Other long-term investments | $ 1,171.2 | $ 856.3 |
Equity method eligible private equity securities, at fair value | ||
Investments in unconsolidated affiliates | ||
Other long-term investments | 1,087 | 761.7 |
Other, at fair value | ||
Investments in unconsolidated affiliates | ||
Other long-term investments | $ 84.2 | $ 94.6 |
Equity-Method Eligible Invest_4
Equity-Method Eligible Investments - Significant Equity Method Eligible Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Sep. 30, 2020 | Dec. 31, 2019 | May 31, 2019 | Feb. 26, 2019 | Feb. 25, 2019 | |
PassportCard/DavidShield | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 53.80% | 50.00% | |||
Stock issued during period, value, acquisitions | $ 15 | ||||
MediaAlpha | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 48.30% | 48.30% | 48.30% | 61.00% | |
durchblicker | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 45.00% | 45.00% | |||
Elementum Holdings, L.P. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 30.00% | 30.00% | 30.00% | ||
JAM Partners L.P. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 0.00% | 11.10% | |||
Minimum | Tuckerman Capital Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 14.50% | 17.50% | |||
Minimum | Enlightenment Capital Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 9.60% | 10.00% | |||
Minimum | Kudu Investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 3.20% | 3.20% | |||
Maximum | Tuckerman Capital Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 62.20% | 62.40% | |||
Maximum | Enlightenment Capital Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 66.70% | 38.40% | |||
Maximum | Kudu Investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 35.00% | 30.00% |
Equity-Method Eligible Invest_5
Equity-Method Eligible Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Feb. 26, 2019 | Feb. 25, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Total revenues | $ 459.5 | $ 155.5 | $ 659.9 | $ 718.1 | |||||
Net income attributable to White Mountains’s common shareholders | $ 232.9 | 48.7 | $ 219.5 | 353.6 | |||||
Marketing Technology (MediaAlpha) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership interest (as a percent) | 48.30% | 48.30% | 48.30% | 48.30% | 61.00% | ||||
Fully diluted ownership interest (as a percent) | 42.00% | 58.90% | |||||||
Assets, fair value | $ 114.7 | ||||||||
Unrealized investment gain | $ 250 | $ 35.3 | $ 114.7 | $ 295 | $ 150 | ||||
Total revenues | $ 233.1 | ||||||||
Total expenses | 220.6 | ||||||||
Net income attributable to White Mountains’s common shareholders | $ 12.5 |
Equity-Method Eligible Invest_6
Equity-Method Eligible Investments - Equity Method Investments Financial Data (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | $ 4,383.4 | $ 4,383.4 | $ 3,983.2 | ||
Total liabilities | 1,074.2 | 1,074.2 | 838.5 | ||
Total revenues | 459.5 | $ 155.5 | 659.9 | $ 718.1 | |
Net income attributable to White Mountains’s common shareholders | 232.9 | 48.7 | 219.5 | 353.6 | |
MediaAlpha, Kudu and Tuckerman | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | 135.7 | 135.7 | 105.4 | ||
Total liabilities | 460.8 | 460.8 | $ 144.9 | ||
Total revenues | 151.5 | 110.4 | 394.6 | 281.9 | |
Total expenses | (144.1) | (102.6) | (368.2) | (274.5) | |
Net income attributable to White Mountains’s common shareholders | $ 7.4 | $ 7.8 | $ 26.4 | $ 7.4 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Grouping, Financial Statement Captions | ||
Carrying value | $ 359.4 | $ 283.5 |
Other NSM debt | ||
Balance Sheet Grouping, Financial Statement Captions | ||
Carrying value | 1.8 | |
Fair Value | NSM Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Fair Value Disclosure | 276.1 | 221.2 |
Fair Value | Other NSM debt | ||
Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Fair Value Disclosure | 1.6 | 1.7 |
Fair Value | Kudu Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Fair Value Disclosure | 74.4 | 53.6 |
Fair Value | Other Operations debt | ||
Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Fair Value Disclosure | 18.5 | 11.3 |
Carrying Value | NSM Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions | ||
Carrying value | 268.8 | 217.4 |
Carrying Value | Other NSM debt | ||
Balance Sheet Grouping, Financial Statement Captions | ||
Carrying value | 1.4 | 1.8 |
Carrying Value | Kudu Bank Facility | ||
Balance Sheet Grouping, Financial Statement Captions | ||
Carrying value | 71 | 53.6 |
Carrying Value | Other Operations debt | ||
Balance Sheet Grouping, Financial Statement Captions | ||
Carrying value | $ 18.2 | $ 10.7 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | |||||
Net gain from sale of discontinued operations, net of tax | $ (0.7) | $ 0.9 | $ (0.8) | $ 1.6 | |
Sirius Group | Swedish Tax Authority | |||||
Loss Contingencies [Line Items] | |||||
Contingent liability | 17.2 | 17.2 | $ 16.5 | ||
Sirius Group | Swedish Tax Authority | Sirius Group | |||||
Loss Contingencies [Line Items] | |||||
Change in contingent liability | $ (0.7) | $ (0.7) |
Held for Sale and Discontinue_3
Held for Sale and Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | Aug. 20, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Discontinued Operations [Line Items} | ||||||
Net gain from sale of discontinued operations, net of tax | $ (0.7) | $ 0.9 | $ (0.8) | $ 1.6 | ||
Connecticut | Discontinued Operations, Held-for-sale | ||||||
Discontinued Operations [Line Items} | ||||||
Proceeds from Sale of Property Held-for-sale | $ 2.3 | |||||
Gains (Losses) on Sales of Other Real Estate | (0.1) | |||||
Assets held for sale | 0.7 | 0.7 | $ 3 | |||
Swedish Tax Authority | Sirius Group | ||||||
Discontinued Operations [Line Items} | ||||||
Contingent liability | 17.2 | 17.2 | $ 16.5 | |||
Sirius Group | Swedish Tax Authority | Sirius Group | ||||||
Discontinued Operations [Line Items} | ||||||
Change in contingent liability | $ (0.7) | $ (0.7) |
Held for Sale and Discontinue_4
Held for Sale and Discontinued Operations - Earnings Per Share for Discontinued Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic and diluted earnings per share numerators (in millions): | ||||
Net income attributable to White Mountains’s common shareholders | $ 232.9 | $ 48.7 | $ 219.5 | $ 353.6 |
Less: total income from continuing operations, net of tax | 233.6 | 47.8 | 220.3 | 352 |
Net (loss) income from discontinued operations attributable to White Mountains’s common shareholders | (0.7) | 0.9 | (0.8) | 1.6 |
Allocation of income for participating restricted common shares | (3.2) | (0.7) | (2.9) | (4.4) |
Basic and diluted earnings per share numerators | $ 230.4 | $ 47.1 | $ 217.4 | $ 347.6 |
Basic earnings per share denominators (in thousands): | ||||
Total average common shares outstanding during the period (in shares) | 3,101,800 | 3,185,400 | 3,129,000 | 3,180,400 |
Average unvested restricted common shares (in shares) | (43,100) | (43,400) | (40,000) | (39,600) |
Basic earnings (losses) per share denominator (in shares) | 3,058,700 | 3,142,000 | 3,089,000 | 3,140,800 |
Diluted earnings per share denominator (in thousands): | ||||
Total average common shares outstanding during the period (in shares) | 3,101,800 | 3,185,400 | 3,129,000 | 3,180,400 |
Average unvested restricted common shares (in shares) | (43,100) | (43,400) | (40,000) | (39,600) |
Diluted earnings (losses) per share denominator (in shares) | 3,058,700 | 3,142,000 | 3,089,000 | 3,140,800 |
Basic and diluted earnings (losses) per share (in USD per share) | $ 75.32 | $ 15.01 | $ 70.40 | $ 110.67 |
Discontinued Operations | ||||
Basic and diluted earnings per share numerators (in millions): | ||||
Net income attributable to White Mountains’s common shareholders | $ 232.9 | $ 48.7 | $ 219.5 | $ 353.6 |
Less: total income from continuing operations, net of tax | 233.6 | 47.8 | 220.3 | 352 |
Net (loss) income from discontinued operations attributable to White Mountains’s common shareholders | (0.7) | 0.9 | (0.8) | 1.6 |
Allocation of income for participating restricted common shares | 0 | 0 | 0 | 0 |
Basic and diluted earnings per share numerators | $ (0.7) | $ 0.9 | $ (0.8) | $ 1.6 |
Basic earnings per share denominators (in thousands): | ||||
Total average common shares outstanding during the period (in shares) | 3,101,800 | 3,185,400 | 3,129,000 | 3,180,400 |
Average unvested restricted common shares (in shares) | (43,100) | (43,400) | (40,000) | (39,600) |
Basic earnings (losses) per share denominator (in shares) | 3,058,700 | 3,142,000 | 3,089,000 | 3,140,800 |
Diluted earnings per share denominator (in thousands): | ||||
Total average common shares outstanding during the period (in shares) | 3,101,800 | 3,185,400 | 3,129,000 | 3,180,400 |
Average unvested restricted common shares (in shares) | (43,100) | (43,400) | (40,000) | (39,600) |
Diluted earnings (losses) per share denominator (in shares) | 3,058,700 | 3,142,000 | 3,089,000 | 3,140,800 |
Basic and diluted earnings (losses) per share (in USD per share) | $ (0.23) | $ 0.28 | $ (0.26) | $ 0.50 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 30, 2020 | Oct. 26, 2020 | Oct. 01, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Feb. 26, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||||||
Other long-term investments | $ 1,171.2 | $ 856.3 | ||||||
MediaAlpha | ||||||||
Subsequent Event [Line Items] | ||||||||
Fully diluted ownership interest (as a percent) | 42.00% | 58.90% | ||||||
Subsequent Event | Ark Insurance Holdings Limited | ||||||||
Subsequent Event [Line Items] | ||||||||
Merger agreement, equity capital contributed | $ 605.4 | |||||||
Equity capital, pre money valuation amount | 300 | |||||||
Additional equity purchase from shareholders | 40.9 | |||||||
Investment, potential additional contribution of equity capital | $ 200 | |||||||
Ownership interest after all transactions | 72.00% | |||||||
Business combination, consideration transferred | $ 800 | |||||||
Investment owned, after additional equity contributions | $ 1,000 | |||||||
Fully diluted ownership interest after additional funding | 63.00% | |||||||
Equity incentives, rate of return threshold | 8.00% | |||||||
Percent of shares outstanding | 12.50% | |||||||
Amount of equity contribution pre-funded | $ 400 | |||||||
Subsequent Event | Ark Insurance Holdings Limited | Tranche One | ||||||||
Subsequent Event [Line Items] | ||||||||
Invested capital return threshold, multiples | 2 | |||||||
Subsequent Event | Ark Insurance Holdings Limited | Tranche Two | ||||||||
Subsequent Event [Line Items] | ||||||||
Invested capital return threshold, multiples | 2.5 | |||||||
Subsequent Event | Ark Insurance Holdings Limited | Tranche Three | ||||||||
Subsequent Event [Line Items] | ||||||||
Invested capital return threshold, multiples | 3 | |||||||
Subsequent Event | Ark Insurance Holdings Limited | Forecast | ||||||||
Subsequent Event [Line Items] | ||||||||
Ownership interest after additional funding | 77.10% | |||||||
Fully diluted ownership interest after additional funding | 67.50% | |||||||
Subsequent Event | MediaAlpha | ||||||||
Subsequent Event [Line Items] | ||||||||
Share price (in USD per share) | $ 33.83 | |||||||
Subsequent Event | Ark Insurance Holdings Limited | ||||||||
Subsequent Event [Line Items] | ||||||||
Letters of credit outstanding | $ 150 | $ 150 | ||||||
Subsequent Event | IPO | MediaAlpha | ||||||||
Subsequent Event [Line Items] | ||||||||
Sale of stock, price per share (in USD per share) | $ 19 | |||||||
Equity market capitalization | $ 1,200 | |||||||
Equity enterprise valuation | 1,400 | |||||||
MediaAlpha | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Other long-term investments | $ 390.1 | $ 694.6 | ||||||
Investment owned (in shares) | 20,532,202 | |||||||
Fully diluted ownership interest (as a percent) | 32.30% | |||||||
MediaAlpha | Subsequent Event | IPO | ||||||||
Subsequent Event [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 3,609,894 | |||||||
Sale of stock, consideration received in transaction | $ 63.8 |