White Mountains Insurance Group (WTM) AI Stock Analysis

• Market Cap: $4.59B
• Dividend Yield: 0.06%
• Average Volume (3M): 23.83K
• Price to Earnings (P/E): 155.6
• Beta (1Y): 0.27
• Revenue Growth: -4.09%
• EPS Growth: -94.77%
• Country: US
• Employees: 893
• Sector: Financial
• Sector Strength: 67
• Industry: Insurance - Property & Casualty
• EPS (TTM): 47.75
• Shares Outstanding: 2,573,726
• 10 Day Avg. Volume: 15,989
• 30 Day Avg. Volume: 23,827
• PEG Ratio: -0.40
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 311.70
• P/FCF Ratio: 8.39
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 10.91
• Enterprise Value/Gross Profit: 11.88
• Enterprise Value/Ebitda: 30.51
• 1Y Price Target: $1,912.00
• Price Target Upside: 9.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $1,912.00 ▲(9.24% Upside)

The overall score of 65 reflects a balance of strong financial performance and strategic corporate events against a high P/E ratio suggesting potential overvaluation. Technical analysis is neutral, with the stock trading below key moving averages. The dividend yield provides some valuation support. The strategic investments are a positive indicator of future growth potential.

White Mountains Insurance Group Business Overview & Revenue Model

Company Description

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and other financial services in the United States. The company operates through five segments: HG Global/BAM, Ark, NSM, Kudu, and Other Operations. The HG Global/BAM segment provides insurance on municipal bonds issued to finance public purposes, such as schools, utilities, and transportation facilities, as well as reinsurance protection services. The Ark segment writes a portfolio of reinsurance and insurance, including property, marine and energy, accident and health, casualty, and specialty products. The NSM segment operates as a managing general agent and program administrator for specialty property and casualty insurance to various sectors comprising specialty transportation, real estate, social services, and pet. The Kudu segment provides capital solutions to boutique asset and wealth managers for generational ownership transfers, management buyouts, acquisitions and growth finances, and legacy partner liquidity, as well as strategic assistance to investees. The Other Operations segment offers insurance solutions to travel industry through broker channel and on a direct-to-consumer basis; and manages separate accounts and pooled investment vehicles for insurance-linked securities sectors, including catastrophe bonds, collateralized reinsurance investments, and industry loss warranties of third-party clients. White Mountains Insurance Group, Ltd. was incorporated in 1980 and is headquartered in Hamilton, Bermuda.

How the Company Makes Money

White Mountains Insurance Group generates revenue through its insurance and reinsurance operations, primarily by underwriting premiums in various sectors, including property and casualty insurance. The company earns money from the premiums paid by policyholders in exchange for coverage, while managing risks and claims to ensure profitability. Additionally, White Mountains invests the premiums received in a diversified portfolio of financial instruments, generating investment income that contributes significantly to its revenue. The company also benefits from strategic partnerships and acquisitions that enhance its market position and expand its service offerings.

White Mountains Insurance Group Financial Statement Overview

Summary

White Mountains Insurance Group has demonstrated strong revenue and profitability growth, particularly in the most recent TTM period. The balance sheet is solid with manageable debt levels and strong equity, though past income variability poses a potential risk. Cash flow generation is strong and consistent, supporting the company's financial stability.

Income Statement

The company has demonstrated strong revenue growth over the years, with the TTM (Trailing-Twelve-Months) showing significant improvement in gross and net profit margins compared to previous periods. However, there have been fluctuations in EBIT and EBITDA margins, with a notable decline in EBIT in 2021. Overall, profitability has improved, but past inconsistencies pose a mild risk.

Balance Sheet

The company's debt-to-equity ratio is maintained at a reasonable level, indicating prudent leverage management. The equity ratio is strong, reflecting a solid financial structure. However, return on equity has shown variability, primarily due to fluctuating net income levels over the years. Despite this, the balance sheet remains robust.

Cash Flow

Operating cash flow has been consistently positive, with a notable increase in free cash flow in recent periods. The free cash flow to net income ratio is favorable, suggesting efficient cash generation relative to earnings. However, operating cash flow relative to net income has varied, indicating potential volatility in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	568.40M	15.80M	2.17B	1.16B	614.40M	781.40M
Gross Profit	521.90M	-45.00M	2.13B	1.06B	614.40M	770.10M
EBITDA	203.20M	377.50M	610.30M	-103.90M	-232.50M	711.20M
Net Income	27.70M	227.40M	502.00M	792.80M	-290.90M	711.20M
Balance Sheet
Total Assets	11.00B	9.93B	8.39B	7.39B	7.00B	4.83B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.22B	1.61B	1.18B	605.80M	354.10M
Total Debt	676.10M	562.50M	564.60M	575.20M	639.10M	376.40M
Total Liabilities	5.87B	4.79B	3.82B	3.45B	3.30B	1.01B
Stockholders Equity	4.51B	4.48B	4.24B	3.75B	3.55B	3.91B
Cash Flow
Free Cash Flow	534.70M	586.80M	404.10M	365.00M	38.60M	-60.60M
Operating Cash Flow	560.50M	586.80M	404.10M	365.00M	38.60M	-60.60M
Investing Cash Flow	-616.70M	-447.00M	-543.90M	115.50M	-208.30M	64.60M
Financing Cash Flow	113.50M	4.20M	7.20M	-327.40M	217.60M	49.00M

White Mountains Insurance Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1750.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTM, the sentiment is Negative. The current price of 1750.35 is below the 20-day moving average (MA) of 1788.90, below the 50-day MA of 1784.35, and below the 200-day MA of 1844.43, indicating a bearish trend. The MACD of -4.46 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 41.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WTM.

White Mountains Insurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THG	81 Outperform	$6.12B	11.27	19.23%	2.09%	4.47%	102.98%
RLI	74 Outperform	$6.17B	19.22	19.49%	3.90%	10.29%	-4.70%
SIGI	70 Outperform	$4.75B	12.77	12.19%	1.92%	12.27%	66.53%
UVE	70 Neutral	$665.77M	10.30	15.60%	3.30%	5.64%	-17.95%
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%
WTM	65 Neutral	$4.59B	155.62	0.61%	0.06%	-4.09%	-94.77%
KMPR	58 Neutral	$3.94B	11.58	12.21%	2.49%	-6.08%	―

White Mountains Insurance Group Corporate Events

White Mountains Completes $150M Investment in BroadStreet

On July 18, 2025, White Mountains Insurance Group, along with Ethos Capital and British Columbia Investment Management Corporation, completed a $150 million strategic investment in BroadStreet Partners, a leading middle-market insurance brokerage. This investment marks a significant milestone for BroadStreet, which specializes in commercial and personal property & casualty and employee benefits solutions, by supporting its growth trajectory and enhancing its market position through partnerships with independent insurance agencies.

White Mountains Secures $250M Credit Facility Agreement

On July 16, 2025, White Mountains Insurance Group, Ltd. entered into a Credit Agreement establishing a senior unsecured revolving credit facility of up to $250 million, with BofA Securities, Inc. and Barclays Bank plc as joint lead arrangers. The facility, which matures on July 16, 2028, remains undrawn with no immediate plans for utilization. The agreement includes customary conditions and covenants, such as maintaining a minimum Consolidated Net Worth and not exceeding a consolidated Debt to Cap Ratio of 32.5%.

White Mountains Acquires 51% Stake in Distinguished

On July 4, 2025, White Mountains Insurance Group entered into a Unit Purchase Agreement to acquire a 51% controlling interest in Distinguished Programs for approximately $230 million. The transaction, expected to close in the third quarter of 2025, will see White Mountains partnering with Distinguished’s existing management team and Aquiline Capital Partners, the current minority equityholder. This acquisition positions White Mountains to capitalize on growth opportunities in the specialty insurance market, enhancing its industry presence and operational capabilities.

White Mountains Highlights Strong Q1 2025 Performance

In its 2025 Annual Investor Presentation, White Mountains Insurance Group reported an 8% growth in Adjusted Book Value per Share (ABVPS) for 2024, which fell short of its target. The company highlighted strong operating results from its Ark and Bamboo businesses, although results were mixed in other areas. The presentation also noted significant capital deployments and distributions, with a total capital of $5.8 billion as of the first quarter of 2025. Ark, a specialized P&C insurance business, achieved excellent results in 2024 with a combined ratio of 83% and a 28% growth in Tangible Book Value, while maintaining strong performance in the first quarter of 2025.

White Mountains Insurance Holds 2025 Annual Meeting

White Mountains Insurance Group held its 2025 Annual General Meeting on May 22, 2025, in Bermuda, with 2,573,726 common shares eligible to vote. The meeting resulted in the election of Class I Directors, approval of executive compensation, an amended long-term incentive plan, and the appointment of PwC as the independent accounting firm for 2025.