White Mountains Insurance's Q3 book value per share falls 1%

Overview

• Insurance holding firm's Q3 book value per share fell 1% from prior quarter

• Company posted net loss attributable to shareholders, reversing year-ago profit

• Unrealized investment losses from MediaAlpha and higher rates weighed on quarterly results

Outlook

• Company says Ark has ongoing exposure to the war in Iran in specialty and marine lines

• Company does not expect significant losses from Hurricane Isaias

• Company notes continued headwinds in the property insurance market

Result Drivers

• INVESTMENT LOSSES - Higher interest rates and a decline in MediaAlpha's share price led to unrealized investment losses, offsetting operating gains

• ARK PERFORMANCE - Ark's underwriting results and premium growth contributed positively to tangible book value

• KUDU PORTFOLIO IMPACT - Higher interest rates reduced the fair value of Kudu's portfolio, lowering return on equity

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for White Mountains Insurance Group, Ltd. is $342.95, about 85.6% below its November 4 closing price of $2,376.30

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Nov 2 - Greenlight Capital Re Q3 net income returns to profit as premiums slip

• Nov 4 - Palomar Q3 net income beat estimates as premiums rise 28%

• Nov 4 - Allstate Q3 net income falls due to higher catastrophe losses, absence of prior-year sale gain

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)