White Mountains Insurance Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Book value per share was $2,243 as of September 30, 2026, a decrease of 1% for the quarter and an increase of 3% for the first nine months of 2026, including dividends.
• Comprehensive income (loss) attributable to common shareholders was $(39) million for the third quarter of 2026, compared to $114 million in the same period in 2025.
• Comprehensive income (loss) attributable to common shareholders was $134 million for the first nine months of 2026, compared to $272 million in the same period in 2025.
• Consolidated pre-tax income was $(23.2) million for the third quarter of 2026, compared to $178.8 million in the third quarter of 2025.
• Consolidated pre-tax income was $207.3 million for the first nine months of 2026, compared to $427.7 million in the first nine months of 2025.
• Net income (loss) attributable to White Mountains's common shareholders was $(39.0) million for the third quarter of 2026, compared to $113.8 million in the third quarter of 2025.
• Net income (loss) attributable to White Mountains's common shareholders was $133.3 million for the first nine months of 2026, compared to $270.6 million in the first nine months of 2025.
• Basic and diluted earnings (loss) per share was $(17.71) for the third quarter of 2026, compared to $44.18 in the third quarter of 2025.
• Basic and diluted earnings per share was $50.62 for the first nine months of 2026, compared to $105.18 in the first nine months of 2025.
• Total consolidated portfolio return was -0.6% in the third quarter of 2026 (excluding MediaAlpha, the return was flat), compared to 2.1% in the third quarter of 2025.
• Total consolidated portfolio return was 3.0% for the first nine months of 2026 (excluding MediaAlpha, the return was 3.9%), compared to 6.6% in the first nine months of 2025.
• Undeployed capital remained at roughly $0.8 billion.
• General and administrative expenses for Other Operations were $28 million for the third quarter of 2026, compared to $66 million in the third quarter of 2025.

Guidance and Future Outlook:

• No specific forward guidance or future growth targets were provided in the press release.
• Management noted that the fair value of Kudu's portfolio was down 2% in the quarter due to interest rate spikes, but underlying portfolio fundamentals remain sound.
• Management indicated that the pipeline of new opportunities for Distinguished remains robust.
• WTM Partners is working an active pipeline of new platform and tuck-in opportunities.

Business Segments and Product Lines:

• Ark: Reported a combined ratio of 75% for the third quarter of 2026 (83% for the first nine months), compared to 76% (84%) in the prior year period. Gross written premiums were $386 million for the quarter (up from $366 million) and $2,254 million for the first nine months (down from $2,289 million). Pre-tax income was $64 million for the quarter and $149 million for the first nine months. Book value was $1,673 million (up 4% in the quarter, 8% YTD), and tangible book value was $1,825 million (up 5% in the quarter, 12% YTD).
• Kudu: Reported total revenues of $(5) million for the third quarter of 2026 (down from $54 million) and $127 million for the first nine months (down from $139 million). Pre-tax loss was $15 million for the quarter and pre-tax income was $93 million for the first nine months. Adjusted EBITDA was $18 million for the quarter (up from $15 million) and $50 million for the first nine months (up from $47 million). Trailing 12 months return on equity was 8% as of September 30, 2026, down from 15% as of June 30, 2026.
• HG Global: Reported gross written premiums of $19 million for the third quarter of 2026 (up 21% from $16 million) and $39 million for the first nine months (down from $42 million). Pre-tax loss was $(28) million for the quarter and $(7) million for the first nine months. The fair value of BAM surplus notes decreased to $336 million as of September 30, 2026.
• Distinguished: Reported managed premiums of $159 million for the third quarter of 2026 and $480 million for the first nine months. ScaleCo adjusted EBITDA was $5 million for the quarter and $22 million for the first nine months. On a trailing 12-month basis, managed premiums grew 5% quarter-over-quarter to $625 million, and ScaleCo adjusted EBITDA grew 5% to $30 million.
• WTM Partners: Reported total revenues of $107 million for the third quarter of 2026 (up from $54 million) and $243 million for the first nine months (up from $97 million). Adjusted EBITDA was $9 million for the quarter and $19 million for the first nine months. Growth was driven by organic growth at Enterprise Solutions and acquisitions of Basesix and Hawkeye Electric.
• MediaAlpha: White Mountains owned 17.9 million shares (29% interest) as of September 30, 2026. The share price was $9.57, down 24% from $12.57 in the quarter. White Mountains agreed to sell 5.5 million shares on November 4, 2026, for $13.90 per share, reducing ownership to 12.4 million shares (21% interest).

Market and Competitive Landscape:

• Ark's gross written premiums growth in the third quarter was driven by a change in the timing of recognition of certain delegated authority business and growth in specialty and accident & health lines, partially offset by reduced writings in property due to softening market conditions.
• HG Global's gross pricing was 208 basis points for the third quarter of 2026, compared to 187 basis points in the prior year period.
• Distinguished enjoyed strong growth in environmental and surety programs, partially offset by continued headwinds in the umbrella program.

Risks and Challenges:

• Higher interest rates drove unrealized investment losses at MediaAlpha, Kudu, and HG Global, negatively impacting book value returns and fair value of portfolios.
• Ark recorded estimated losses of $10 million in the third quarter and $52 million for the first nine months related to the war in Iran, primarily through specialty and marine & energy lines.
• Hurricane Isaias made U.S. landfall in October 2026; Ark does not expect significant losses related to the storm.
• MediaAlpha's share price decline produced $54 million of mark-to-market losses for White Mountains's remaining position in the third quarter.
• Kudu's trailing 12 months return on equity declined to 8% primarily due to lower unrealized investment gains driven by higher interest rates on discount rates.

Management Commentary and Tone:

• CEO Liam Caffrey described the quarter as "solid" for operating results despite investment losses, noting Ark's strong growth in tangible book value and Distinguished's solid performance.

• Ark CEO Ian Beaton stated, "We have enjoyed good results for the first three quarters of 2026," noting the combined ratio improvement and growth in specialty classes offsetting property headwinds.

• Kudu CEO Rob Jakacki commented that while the portfolio fair value declined due to interest rates, "underlying portfolio fundamentals remain sound."

• HG Global President Kevin Pearson noted that while interest rates caused unrealized losses, "the underlying fundamentals of these assets remain unchanged."

• Distinguished President Jason Rotman highlighted that managed premiums and ScaleCo adjusted EBITDA reached new highs on a trailing 12-month basis.

• WTM Partners CEO John Daly reported solid growth and progress on integration initiatives, with recent acquisitions performing ahead of expectations.

Other Key Points:

• White Mountains repurchased and retired 103,827 common shares in the first nine months of 2026 for $217 million at an average share price of $2,088.39.
• Share repurchases in the third quarter of 2026 were minimal.
• WM Outrigger Re did not participate in the 2026 renewal of Outrigger Re Ltd. in the fourth quarter of 2025, and its results are not material to consolidated financial statements.
• The carrying value of the investment in MediaAlpha was $171 million as of September 30, 2026, down from $225 million as of June 30, 2026.
• At the reduced 21% ownership level, each $1.00 per share change in MediaAlpha's share price will result in an approximate $5.00 per share change in White Mountains's book value per share.
• Net realized and unrealized investment gains (losses) from the investment in MediaAlpha were $(54) million for the third quarter and $(60) million for the first nine months of 2026, compared to $8 million and $2 million in the prior year periods.