White Mountains Insurance Group (WTM) investor relations material

Strategic Overview and Capital Deployment

• Maintains focus on compounding per share value over long periods, adhering to core operating principles and disciplined capital management.

• 2025 saw 25% book value per share growth, driven by the Bamboo sale and strong operating results across Ark, Kudu, and HG Global.

• Over $430 million deployed in new investments in 2025, including Distinguished Programs, BroadStreet Partners, and White Mountains Partners; $200+ million returned to shareholders.

• Playbook of redeploying capital and accretive buybacks continues, with $1.1 billion undeployed capital positioned for future opportunities; post-Bamboo, $0.8 billion remains undeployed.

• The current environment is challenging, with softening insurance markets and high private multiples, prompting a patient, relationship-driven investment approach.

Operating Company Performance and Outlook

• Ark delivered an 83% combined ratio and 28% tangible book value growth in 2025, with gross written premiums up 16% year-over-year; future growth expected to moderate.

• Kudu reached capital self-sufficiency, posted a 13% GAAP ROE and $70 million in annualized adjusted EBITDA, focusing on private capital and specialized managers.

• HG Global/BAM had record premiums and strong underwriting, with improved debt terms and book value returns up 100 bps; market outlook remains robust.

• Distinguished Programs managed $568 million in premiums (up 6% YOY), expanding via new program launches and acquihires, focusing on talent and carrier alignment.

• Bamboo achieved 58% premium growth and doubled EBITDA, expanding into Texas and launching new products and AI-driven platforms.

• BroadStreet Partners generated $2.5 billion in revenue, maintained mid-single digit organic growth, completed 69 acquisitions, and focused on partner alignment.

• PassportCard/DavidShield leveraged AI and embedded insurance, aiming for record results in 2026 despite geopolitical headwinds; core premiums reached $262 million (up 24% YOY).

• White Mountains Partners deployed $200 million to date, targeting essential services and specialty consumer sectors, with a growing pipeline.

• MediaAlpha reported $1.1 billion in revenue (up 29% YOY) and $114 million in adjusted EBITDA, though share price lagged sector benchmarks.

Investment Portfolio and Market Trends

• Total capitalization at $7 billion, with $5.4 billion in common equity and no parent-level financial leverage; consolidated debt-to-capital ratio is 12%.

• Investment portfolio valued at $5.8 billion, split between policyholder and shareholder funds, with a conservative, short-duration fixed income focus and higher equity exposure than peers.

• 2025 investment returns were solid but trailed benchmarks due to shorter duration and underperformance in market neutral and private equity strategies; total portfolio return was 6.6% annualized since 2023, outperforming conventional benchmarks.

• AI adoption is accelerating across businesses, with expectations for enhanced productivity and competitive differentiation, especially in distribution and underwriting.

• Structural changes in insurance distribution are expected, but privileged relationships and expertise remain key; AI will drive a resorting rather than full disintermediation.