White Mountains Insurance Group (WTM) AI Stock Analysis

• Market Cap: $5.08B
• Dividend Yield: 0.05%
• Average Volume (3M): 19.77K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.19
• Revenue Growth: -4.24%
• EPS Growth: -78.10%
• Country: US
• Employees: 893
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 44.18
• Shares Outstanding: 2,479,677
• 10 Day Avg. Volume: 22,997
• 30 Day Avg. Volume: 19,775
• PEG Ratio: -0.39
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 8.39
• Enterprise Value/Market Cap: -0.06
• Enterprise Value/Revenue: -0.12
• Enterprise Value/Gross Profit: -0.26
• Enterprise Value/Ebitda: -0.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $2,245.00 ▲(10.64% Upside)

White Mountains Insurance Group's overall stock score is driven by a solid financial foundation and favorable technical indicators. The strategic sale of a majority stake in Bamboo is a significant positive corporate event, enhancing financial flexibility. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score.

Positive Factors

Strategic Sale of Bamboo Stake

The sale enhances financial flexibility, providing significant cash proceeds and a gain to book value, supporting future growth initiatives.

Strong Cash Flow Management

Robust cash flow performance supports financial health, enabling strategic investments and operational resilience.

Low Leverage

Low leverage enhances financial stability, reducing risk and providing flexibility for strategic initiatives.

Negative Factors

Negative Revenue Growth

Declining revenue growth can impact long-term profitability and market competitiveness, necessitating strategic adjustments.

Low Return on Equity

Low ROE suggests limited profitability relative to shareholder equity, potentially affecting investor confidence and capital efficiency.

Decline in Revenue Growth Rate

A declining revenue growth rate may hinder the company's ability to expand and compete effectively in the market.

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 multiple channels, primarily by collecting premiums from policyholders in its insurance operations. The company earns underwriting income by assessing and assuming risks associated with the policies it issues. In addition to premiums, WTM also generates income from its investment portfolio, which includes a diversified range of assets such as stocks, bonds, and alternative investments. The performance of these investments contributes significantly to its overall profitability. Furthermore, WTM's strategic partnerships and reinsurance arrangements enhance its earning potential by allowing it to share risks and expand its market reach. Overall, the combination of underwriting income and investment returns constitutes the main revenue streams for White Mountains Insurance Group.

White Mountains Insurance Group Financial Statement Overview

Summary

White Mountains Insurance Group demonstrates a solid financial foundation with strong cash flow management and a stable balance sheet. While recent revenue growth has been negative, the company maintains healthy profit margins and low leverage, suggesting resilience. Continued focus on revenue growth and profitability improvements could enhance overall financial performance.

Income Statement

White Mountains Insurance Group's income statement shows mixed performance. The TTM data indicates a decline in revenue growth rate by 3.47%, which is concerning. However, the company maintains a healthy gross profit margin of 60.44% and a modest net profit margin of 3.06%. The EBIT and EBITDA margins are also reasonable at 19.87% and 17.24%, respectively. Despite the recent revenue decline, the company has shown strong profitability in previous years, suggesting potential for recovery.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.16, indicating conservative leverage. The return on equity is low at 0.65%, which suggests limited profitability relative to shareholder equity. However, the equity ratio is strong, with stockholders' equity comprising a significant portion of total assets, indicating financial stability.

Cash Flow

The cash flow statement shows positive trends, with a free cash flow growth rate of 19.10% in the TTM period. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is consistently at 1.0, demonstrating effective cash management. Overall, cash flow performance is robust, supporting the company's financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.49B	2.35B	2.17B	1.16B	614.40M	895.60M
Gross Profit	1.11B	1.07B	1.15B	370.90M	33.10M	813.30M
EBITDA	381.10M	371.10M	610.30M	-104.80M	-231.50M	677.40M
Net Income	140.20M	230.40M	509.20M	792.80M	-275.40M	708.70M
Balance Sheet
Total Assets	12.35B	9.93B	8.39B	7.39B	7.00B	4.83B
Cash, Cash Equivalents and Short-Term Investments	1.42B	1.22B	1.61B	1.18B	605.80M	354.00M
Total Debt	765.80M	562.50M	564.60M	575.20M	639.10M	376.40M
Total Liabilities	6.63B	4.79B	3.82B	3.45B	3.30B	1.01B
Stockholders Equity	4.77B	4.48B	4.24B	3.75B	3.55B	3.91B
Cash Flow
Free Cash Flow	560.70M	586.80M	404.10M	326.30M	98.20M	-12.80M
Operating Cash Flow	560.70M	586.80M	404.10M	326.30M	98.20M	-12.80M
Investing Cash Flow	-615.10M	-447.00M	-543.90M	108.40M	-204.00M	65.50M
Financing Cash Flow	182.60M	4.20M	7.20M	-327.40M	149.20M	-21.80M

White Mountains Insurance Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2029.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2029.06 is below the 20-day moving average (MA) of 2062.43, above the 50-day MA of 2001.47, and above the 200-day MA of 1848.94, indicating a neutral trend. The MACD of 14.96 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 41.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTM.

White Mountains Insurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGI	77 Outperform	$5.10B	13.01	12.22%	1.85%	10.98%	74.87%
WTM	73 Outperform	$5.08B	37.26	2.95%	0.05%	-4.24%	-78.10%
HGTY	69 Neutral	$4.47B	45.43	16.42%	―	17.47%	54.19%
MCY	69 Neutral	$4.97B	11.30	21.47%	1.34%	6.18%	-21.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LMND	57 Neutral	$5.95B	-36.41	-31.34%	―	30.53%	21.82%
KMPR	52 Neutral	$2.33B	10.38	9.03%	3.15%	4.51%	-8.29%

White Mountains Insurance Group Corporate Events

White Mountains renews Ark reinsurance sidecar for 2026

White Mountains Insurance Group’s subsidiary Ark Insurance Holdings Limited renewed its reinsurance sidecar, Outrigger Re Ltd., for business incepting during calendar year 2026 on terms similar to those in effect for 2025. Outrigger entered into a quota share with Ark to provide collateralized reinsurance protection on a portion of Ark Bermuda’s global property catastrophe portfolio, deploying $70 million of investor capital for the 2026 underwriting year, all sourced from third-party investors. The sidecar’s reduced size versus prior years reflects Ark’s increased reliance on traditional quota share reinsurance in 2026, signaling a shift in its capital and risk management mix while still maintaining access to alternative capital from external investors.

The most recent analyst rating on (WTM) stock is a Buy with a $2245.00 price target. To see the full list of analyst forecasts on White Mountains Insurance Group stock, see the WTM Stock Forecast page.

White Mountains Sells Stake in Bamboo Group

On December 5, 2025, White Mountains Insurance Group completed the sale of a controlling financial interest in WM Pierce Holdings, Inc., including Bamboo Ide8 Insurance Services, to affiliates of CVC Capital Partners. The transaction involved selling approximately 77.3% of its equity interest in the Bamboo Group for $848 million, while retaining an indirect equity interest valued at $250 million. This strategic move allows White Mountains to maintain a 15% equity stake in Bamboo, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (WTM) stock is a Buy with a $2279.00 price target. To see the full list of analyst forecasts on White Mountains Insurance Group stock, see the WTM Stock Forecast page.