White Mountains Insurance Group, Ltd. (WTM) | Investment Case

1. Company Snapshot

1.a. Company Description

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and other financial services in the United States.The company operates through five segments: HG Global/BAM, Ark, NSM, Kudu, and Other Operations.The HG Global/BAM segment provides insurance on municipal bonds issued to finance public purposes, such as schools, utilities, and transportation facilities, as well as reinsurance protection services.

The Ark segment writes a portfolio of reinsurance and insurance, including property, marine and energy, accident and health, casualty, and specialty products.The NSM segment operates as a managing general agent and program administrator for specialty property and casualty insurance to various sectors comprising specialty transportation, real estate, social services, and pet.The Kudu segment provides capital solutions to boutique asset and wealth managers for generational ownership transfers, management buyouts, acquisitions and growth finances, and legacy partner liquidity, as well as strategic assistance to investees.

The Other Operations segment offers insurance solutions to travel industry through broker channel and on a direct-to-consumer basis; and manages separate accounts and pooled investment vehicles for insurance-linked securities sectors, including catastrophe bonds, collateralized reinsurance investments, and industry loss warranties of third-party clients.White Mountains Insurance Group, Ltd.was incorporated in 1980 and is headquartered in Hamilton, Bermuda.

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1.b. Last Insights on WTM

Recent developments have bolstered White Mountains Insurance Group's position, with the company reporting a significant 18% increase in book value per share for the fourth quarter of 2025. The successful completion of its tender offer, which reduced the number of outstanding shares, is also a notable positive. Furthermore, institutional investors such as Cooke & Bieler LP have increased their stake in the company, demonstrating confidence in its prospects.

1.c. Company Highlights

Last Price	2205.33
Change Percentage	-1.02%
Open	2221
Previous Close	2228.13
Market Cap ( Millions)	5469
Volume	5545
Year High	2246.88
Year Low	1648
M A 50	2084.39
M A 200	1892.73

FCF Yield	9.06%
Dividend Yield	0.05%
ROE	22.87%
Debt / Equity	15.43%
Net Debt / EBIDTA	46.26%
Price To Book	1.04
Price Earnings Ratio	5.1
Price To FCF	11.04
Price To sales	2.02
EV / EBITDA	4.35

2. Transcript Summary

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3. NewsRoom

The London Company Small Cap Q4 2025 Performance And Trades

Feb -17

Source: seekingalpha.com

WHITE MOUNTAINS REPORTS FOURTH QUARTER RESULTS

Feb -06

Source: prnewswire.com

White Mountains Insurance Group (NYSE:WTM) Shares Cross Above 200 Day Moving Average – Here’s Why

Feb -03

Source: defenseworld.net

Cooke & Bieler LP Has $180.28 Million Stake in White Mountains Insurance Group, Ltd. $WTM

Jan -26

Source: defenseworld.net

White Mountains Announces Final Results of Its Tender Offer

Dec -24

Source: prnewswire.com

White Mountains Announces Preliminary Results of Its Tender Offer

Dec -22

Source: prnewswire.com

White Mountains Insurance Group (NYSE:WTM) & Seibels Bruce Group (OTCMKTS:SBBG) Critical Review

Dec -17

Source: defenseworld.net

White Mountains Completes Sale of Bamboo

Dec -08

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.58%)

6. Segments

Ark

Expected Growth: 8.5%

Ark's 8.5% growth is driven by its unique investment approach, leveraging Cathie Wood's expertise in disruptive innovation. Strong performance in its flagship ARK Innovation ETF, coupled with increasing assets under management, contributes to its growth. Additionally, the company's expansion into new markets, such as fintech and genomics, further fuels its upward trajectory.

Other

Expected Growth: 4.77%

White Mountains Insurance Group's 4.77% growth is driven by increasing premiums, favorable loss reserve development, and strategic investments. The company's diversified insurance portfolio, including reinsurance and specialty insurance, contributes to its growth. Additionally, effective cost management and a strong capital position support its expansion.

Kudu

Expected Growth: 8.37%

Kudu's 8.37% growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, White Mountains' strong financial position and investment in digital capabilities have enabled Kudu to capitalize on emerging opportunities, further fueling its growth.

White Mountains Outrigger Re

Expected Growth: 5.4%

White Mountains Outrigger Re's 5.4% growth is driven by increasing demand for specialty reinsurance products, expansion into new markets, and a disciplined underwriting approach. Additionally, the segment benefits from a strong capital position, allowing for strategic investments and a favorable business mix.

HG Global

Expected Growth: 4.65%

HG Global's 4.65% growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on underwriting discipline, risk management, and operational efficiency has contributed to its growth. Furthermore, White Mountains Insurance Group's strong financial position and diversified portfolio have provided a solid foundation for HG Global's expansion.

BAM

Expected Growth: 5.4%

BAM's 5.4% growth is driven by increasing demand for insurance-linked securities, expansion into new markets, and strategic acquisitions. Additionally, the company's strong underwriting discipline, diversified investment portfolio, and solid capital position contribute to its growth momentum.

7. Detailed Products

Berkshire Hathaway Reinsurance Group

Provides reinsurance products and services to the global insurance industry, including property, casualty, and specialty reinsurance

HG Global/BAM Reinsurance

Offers a range of reinsurance products, including property, casualty, and specialty reinsurance, as well as insurance-linked securities

White Mountains Advisors

Provides investment management services to insurance companies, pension funds, and other institutional investors

Esurance

Offers direct-to-consumer personal lines insurance products, including auto, home, and renters insurance

NSM Insurance Group

Offers a range of specialty insurance products, including programs for niche industries and professions

8. White Mountains Insurance Group, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for White Mountains Insurance Group, Ltd. is medium due to the presence of alternative insurance providers and financial institutions that offer similar products and services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the complexity of insurance products and the lack of price sensitivity among customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of insurance-related services and the moderate level of concentration among suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the insurance industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple established players in the insurance industry, leading to a highly competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	11.90%
Debt Cost	6.02%
Equity Weight	88.10%
Equity Cost	6.02%
WACC	6.02%
Leverage	13.51%

11. Quality Control: White Mountains Insurance Group, Ltd. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Hanover Insurance

A-Score: 6.8/10

Value: 7.2

Growth: 4.8

Quality: 6.7

Yield: 4.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

RLI

A-Score: 6.6/10

Value: 5.5

Growth: 6.9

Quality: 8.4

Yield: 8.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

Hiscox

A-Score: 6.4/10

Value: 3.7

Growth: 6.0

Quality: 7.2

Yield: 3.0

Momentum: 9.5

Volatility: 9.0

1-Year Total Return ->

Markel

A-Score: 6.4/10

Value: 6.7

Growth: 7.2

Quality: 6.8

Yield: 0.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

Loews

A-Score: 6.1/10

Value: 6.3

Growth: 6.7

Quality: 5.3

Yield: 0.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

White Mountains Insurance

A-Score: 5.0/10

Value: 2.5

Growth: 8.3

Quality: 5.8

Yield: 0.0

Momentum: 4.5

Volatility: 8.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.07%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.02%

White Mountains Insurance Group, Ltd. - BMG9618E1075

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WTM

1.c. Company Highlights

Higher Growth

Lower Yield

Stable Momentum

Earnings Miss

Less Volatile

Earnings Beats

Cheaper

Medium Volatility

Lower Growth

Expensive

Weak Momentum

Better Quality

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.58%)

6. Segments

Ark

Expected Growth: 8.5%

Other

Expected Growth: 4.77%

Kudu

Expected Growth: 8.37%

White Mountains Outrigger Re

Expected Growth: 5.4%

HG Global

Expected Growth: 4.65%

BAM

Expected Growth: 5.4%

7. Detailed Products

Berkshire Hathaway Reinsurance Group

HG Global/BAM Reinsurance

White Mountains Advisors

Esurance

NSM Insurance Group

8. White Mountains Insurance Group, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: White Mountains Insurance Group, Ltd. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2205.33$

Current Price

2205.33$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA