White Mountains earns higher H1 income from Ark’s Outrigger Re sidecar

For the first-half of 2024, White Mountains has reported that its investment into the Outrigger Re collateralized reinsurance sidecar, that supports its re/insurer subsidiary Ark, generated the company higher pre-tax income, at $18 million.

White Mountains own financial commitment to the Outrigger Re reinsurance sidecar was reduced for 2024, which meant that premiums written under its cell or segregated account of the broader sidecar (named WM Outrigger) are also down a little this year.

Minimal catastrophe losses continue to be experienced by the Outrigger Re sidecar in 2024 so far, with White Mountains reporting that, “WM Outrigger Re’s combined ratio was 27% and 30% in the second quarter and first six months of 2024 compared to 25% and 24% in the second quarter and first six months of 2023.”

Gross and net written premiums of $39 million and $73 million are reported for the second-quarter and first-half of 2024, compared to $58 million and $102 million in the prior year.

The company said, “Gross and net written premiums decreased due to White Mountains’s lower capital commitment to WM Outrigger Re in 2024.”

For the WM Outrigger segment, net earned premiums of $8 million and $18 million are reported for Q2 and H1 2024, compared to $10 million and $15 million in the previous year.

So, for the first-half, while written premiums declined, earned have continued to rise for White Mountains share in the Outrigger Re reinsurance sidecar vehicle.

As a result, White Mountains reported that, “WM Outrigger Re reported pre-tax income of $8 million and $18 million in the second quarter and first six months of 2024 compared to $10 million and $16 million in the second quarter and first six months of 2023.”

So pre-tax income has been driven by the earning through of premiums from the sidecar, driving a valuable contribution to White Mountains overall results.

For Ark, the insurance and reinsurance company supported by the sidecar capital, CEO Ian Beaton said, “We are off to a good start through the first half of 2024.  Ark’s combined ratio was 89% for the second quarter and 91% year to date, both in line with prior year.  Gross written premiums were up 15% over prior year in the quarter.  Risk adjusted rate change was flat overall.  We are seeing good growth in select lines of business, including Marine & Energy and Accident & Health, and in new product classes.”

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