White Mountains Book Value Reverses After MediaAlpha Drop

The Tip Desk · November 8, 2026 · 3 min read

Book value per share ended September at $2,243 after a 1% third-quarter decline, as MediaAlpha's share price fell 24% and higher rates marked down fixed-income holdings.

White Mountains Insurance Group, Ltd. (WTM) reported book value per share of $2,243 as of September 30, 2026, reversing a 4% second-quarter rise to $2,258. Chief executive Liam Caffrey said higher interest rates and a lower share price at MediaAlpha produced unrealized investment losses that offset an otherwise solid quarter for operating results.

Comprehensive income attributable to common shareholders was a $(39) million loss in the third quarter, compared with $199 million in the second quarter. Results included $(69) million of net realized and unrealized investment losses, versus $151 million of gains in the prior quarter.

MediaAlpha’s share price fell to $9.57 from $12.57 as of June 30, producing $54 million of unrealized losses on White Mountains’s remaining position and reducing the carrying value to $171 million from $225 million. The company owned 17.9 million shares, a 29% basic interest. On November 4 it agreed to sell 5.5 million shares for $13.90, leaving 12.4 million shares and a 21% interest. At that level, each $1.00 move in MediaAlpha’s price equates to about $5.00 in White Mountains book value per share.

Other Operations reported a $(33) million pre-tax loss, largely driven by the MediaAlpha decline. Excluding MediaAlpha, net realized and unrealized investment gains were $25 million. Total consolidated portfolio return excluding MediaAlpha was flat at 0% in the third quarter, after a 2.8% gain excluding MediaAlpha in the second quarter. Caffrey said the consolidated portfolio excluding MediaAlpha was flat overall, with fixed income weighing down the result.

Ark’s combined ratio improved to 75% in the third quarter from 84% in the second quarter, including two points of catastrophe losses related to the war in Iran and four points of net favorable prior-year development. Ark recorded estimated losses of $10 million net of reinsurance and reinstatement premiums related to the war in the quarter. Gross written premiums were $386 million. The company said the year-over-year increase was driven primarily 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 property writings. Pre-tax income was $64 million, including $(40) million of net realized and unrealized investment losses. Ark book value rose 4% to $1,673 million and tangible book value rose 5% to $1,825 million.

Kudu reported total revenues of $(5) million and a pre-tax loss of $15 million. Adjusted EBITDA was $18 million. Trailing-12-months return on equity fell to 8% as of September 30 from 15% as of June 30, primarily due to lower unrealized investment gains. Trailing-12-months adjusted EBITDA grew to $69 million, which Kudu chief executive Rob Jakacki said was aided by two new acquisitions this year.

HG Global generated a record $19 million of gross written premiums, up 21% from $16 million a year earlier. Pre-tax income swung to a $(28) million loss from $22 million of income a year earlier as higher interest rates produced $29 million of unrealized investment losses. The fair value of BAM surplus notes declined to $336 million from $353 million as of June 30.

Distinguished reported managed premiums of $159 million and ScaleCo adjusted EBITDA of $5 million in the third quarter. On a trailing-12-months basis, managed premiums grew 5% quarter-over-quarter to a record $625 million and ScaleCo adjusted EBITDA grew 5% to $30 million.

WTM Partners reported total revenues of $107 million and adjusted EBITDA of $9 million, versus $54 million and $2 million a year earlier, driven primarily by organic growth at Enterprise Solutions and the second-quarter acquisitions of Basesix and Hawkeye Electric.

Share repurchases in the third quarter were minimal after $191 million of buybacks in the second quarter. Undeployed capital remained at roughly $0.8 billion.