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Press Release: White Mountains Reports Fourth -3-

· 02/05/2021 08:00
Debt 86.3 71.0 53.6 Other liabilities 10.0 10.2 3.4 Total Asset Management liabilities 96.3 81.2 57.0 Other Operations Debt 17.5 18.2 10.7 Accrued incentive compensation 70.1 41.9 55.1 Other liabilities 46.3 176.0 67.8 Total Other Operations liabilities 133.9 236.1 133.6 Total liabilities 1,013.5 1,074.2 838.5 Equity White Mountains's common shareholder's equity White Mountains's common shares and paid-in surplus 595.2 592.1 596.3 Retained earnings 3,311.2 2,822.1 2,672.4 Accumulated other comprehensive loss, after tax: Net unrealized losses from foreign currency translation and interest rate swap (.4) (6.5) (7.2) Total White Mountains's common shareholders' equity 3,906.0 3,407.7 3,261.5 Non-controlling interests (88.1) (98.5) (116.8) Total equity 3,817.9 3,309.2 3,144.7 Total liabilities and equity $ 4,831.4 $ 4,383.4 $ 3,983.2 WHITE MOUNTAINS INSURANCE GROUP, LTD. BOOK VALUE AND ADJUSTED BOOK VALUE PER SHARE (Unaudited) December 31, September 30, December 31, September 30, 2020 2020 2019 2019 Book value per share numerators (in millions): White Mountains's common shareholders' equity - GAAP book value per share numerator $3,906.0 $3,407.7 $3,261.5 $3,193.4 Time value of money discount on expected future payments on the BAM Surplus Notes (1) (142.5) (144.3) (151.6) (132.8) HG Global's unearned premium reserve (1) 190.0 181.0 156.7 160.4 HG Global's net deferred acquisition costs (1) (52.4) (49.5) (41.5) (42.0) Adjusted book value per share numerator $3,901.1 $3,394.9 $3,225.1 $3,179.0 Book value per share denominators (in thousands of shares): Common shares outstanding - GAAP book value per share denominator 3,102.0 3,102.0 3,185.4 3,185.4 Unearned restricted common shares (14.8) (19.3) (18.5) (21.5) Adjusted book value per share denominator 3,087.2 3,082.7 3,166.9 3,163.9 GAAP book value per share $1,259.18 $1,098.56 $1,023.91 $1,002.53 Adjusted book value per share $1,263.64 $1,101.28 $1,018.41 $1,004.76 (1) Amount reflects White Mountains's preferred share ownership in HG Global of 96.9%. December 31, September 30, December 31, September 30, 2020 2020 2019 2019 Quarter-to-date change in GAAP book value per share, including dividends: 14.6 % 7.6 % 2.1 % 1.6 % Quarter-to-date change in adjusted book value per share, including dividends: 14.7 % 7.8 % 1.4 % 1.9 % Year-to-date change in GAAP book value per share, including dividends: 23.1 % 7.4 % 14.4 % 12.0 % Year-to-date change in adjusted book value per share, including dividends: 24.2 % 8.2 % 14.8 % 13.3 % Year-to-date dividends per share $1.00 $1.00 $1.00 $1.00 December 31, September 30, December 31, September 30, 2020 2020 2019 2019 Summary of goodwill and other intangible assets (in millions): Goodwill: NSM $506.4 $511.8 (1) $381.6 $397.0 (2) Kudu 7.6 7.6 7.6 7.6 Other Operations 11.5 20.7 (1) 5.5 20.2 (2) Total goodwill 525.5 540.1 394.7 424.8 Other intangible assets: NSM 230.4 218.5 241.4 233.6 Kudu 1.6 1.7 2.0 2.0 Other Operations 24.9 16.0 16.6 .5 Total other intangible assets 256.9 236.2 260.0 236.1 Total goodwill and other intangible assets 782.4 776.3 654.7 660.9 Goodwill and other intangible assets attributed to non-controlling interests (28.1) (27.1) (23.4) (25.0) Goodwill and other intangible assets included in White Mountains's common shareholders' equity $754.3 $749.2 $631.3 $635.9 (1) The relative fair values of goodwill and of other intangible assets recognized in connection with the acquisitions of Kingsbridge and in Other Operations had not yet been finalized at September 30, 2020. (2) The relative fair values of goodwill and of other intangible assets recognized in connection with the acquisitions of Embrace and in Other Operations had not yet been finalized at September 30, 2019. WHITE MOUNTAINS INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (millions) (Unaudited) Three Months Twelve Months Ended December Ended December 31, 31, 2020 2019 2020 2019 Revenues: Financial Guarantee (HG Global/BAM) Earned insurance premiums $5.6 $2.6 $22.8 $16.3 Net investment income 4.4 5.5 19.5 21.6 Net realized and unrealized investment (losses) gains -- (3.3) 23.7 27.1 Other revenues .4 .3 2.5 1.6 Total Financial Guarantee revenues 10.4 5.1 68.5 66.6 Specialty Insurance Distribution (NSM) Commission revenues 58.3 45.8 232.5 193.4 Other revenues 15.0 12.0 52.6 39.7 Total Specialty Insurance Distribution revenues 73.3 57.8 285.1 233.1 Asset Management (Kudu) Net investment income 10.2 6.1 29.5 14.7 Net realized and unrealized investment gains 14.4 3.2 15.9 6.3 Other revenues .1 -- .3 .2 Total Asset Management revenues 24.7 9.3 45.7 21.2 (1) Marketing Technology (MediaAlpha) Advertising and commission revenues -- -- -- 48.8 Total Marketing Technology revenues -- -- -- 48.8 (2) Other Operations Net investment income 2.7 12.7 82.0 43.4 Net realized and unrealized investment gains (losses) 8.6 55.5 (8.8) 219.8 Net realized and unrealized investment gains from investment in MediaAlpha 391.0 30.0 686.0 180.0 Realized gain from the MediaAlpha transaction with Insignia -- -- -- 67.5 Advertising and commission revenues 2.2 2.4 8.3 6.9 Other revenues 7.9 2.5 13.9 6.1 Total Other Operations revenues 412.4 103.1 781.4 523.7 Total revenues $520.8 $175.3 $1,180.7 $893.4 (1) Kudu's results are from April 4, 2019, the date White Mountains began consolidating Kudu, to December 31, 2019. (2) MediaAlpha's results are from January 1, 2019 to February 26, 2019, the date of the MediaAlpha transaction with Insignia. WHITE MOUNTAINS INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (millions) (Unaudited) Three Months Twelve Months Ended December Ended December 31, 31, 2020 2019 2020 2019 Expenses: Financial Guarantee (HG Global/BAM) Insurance acquisition expenses $1.6 $ 1.6 $7.0 $5.7 Other underwriting expenses .1 .1 .4 .4 General and administrative expenses 15.3 11.4 56.4 50.5 Total Financial Guarantee expenses 17.0 13.1 63.8 56.6 Specialty Insurance Distribution (NSM) General and administrative expenses 45.9 40.8 176.9 132.2 Broker commission expenses 18.9 15.9 75.3 64.8 Change in fair value of contingent consideration earnout liabilities (1.7) (3.5) (3.3) 2.1 Amortization of other intangible assets 10.5 5.9 26.7 19.4 Interest expense 6.0 4.5 22.1 16.7 Total Specialty Insurance Distribution expenses 79.6 63.6 297.7 235.2 Asset Management (Kudu) General and administrative expenses 4.3 3.4 11.8 10.1 Amortization of other intangible assets -- -- .3 .2 Interest expense 1.7 .1 6.0 .1 Total Asset Management expenses 6.0 3.5 18.1 10.4 (1) Marketing Technology (MediaAlpha) Cost of sales -- -- -- 40.6 General and administrative expenses -- -- -- 12.5 Amortization of other intangible assets -- -- -- 1.6

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February 05, 2021 08:00 ET (13:00 GMT)