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White Mountains Insurance Group (WTM)
NYSE:WTM
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White Mountains Insurance Group (WTM) AI Stock Analysis

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WTM

White Mountains Insurance Group

(NYSE:WTM)

Rating:69Neutral
Price Target:
$1,981.00
â–²(8.52% Upside)
White Mountains Insurance Group's strong financial performance and strategic corporate events are key strengths, driving the overall score. However, technical indicators suggest limited momentum, and valuation metrics indicate moderate attractiveness, slightly tempering the overall outlook.

White Mountains Insurance Group (WTM) vs. SPDR S&P 500 ETF (SPY)

White Mountains Insurance Group Business Overview & Revenue Model

Company DescriptionWhite 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 MoneyWhite Mountains Insurance Group generates revenue primarily through its insurance and reinsurance operations. The company earns premium income from underwriting insurance policies, which are designed to cover various risks for individuals and businesses. Additionally, WTM generates investment income from its portfolio of invested assets, which includes equities, fixed income securities, and alternative investments. Key revenue streams also include gains from the sale of investments and fees associated with managing its investment portfolio. Strategic partnerships with other insurance companies and reinsurers further enhance its access to markets and risk-sharing opportunities, contributing to its overall profitability.

White Mountains Insurance Group Financial Statement Overview

Summary
White Mountains Insurance Group demonstrates strong revenue growth and profitability in the TTM period, supported by a stable balance sheet with low leverage. However, historical volatility in profitability and recent declines in cash flow growth present potential risks.
Income Statement
75
Positive
White Mountains Insurance Group shows strong revenue growth in the TTM period with a 51.69% increase, indicating robust business expansion. The gross profit margin of 68.37% and net profit margin of 23.35% reflect solid profitability. However, the company experienced fluctuations in profitability in previous years, with negative margins in 2021. Overall, the current trajectory is positive, but historical volatility suggests potential risks.
Balance Sheet
70
Positive
The company's balance sheet is stable with a low debt-to-equity ratio of 0.15, indicating prudent financial leverage. The return on equity (ROE) of 4.41% in the TTM period is modest, suggesting room for improvement in generating returns for shareholders. The equity ratio of 68.49% reflects a strong equity base, providing financial stability. While the current position is solid, historical ROE fluctuations highlight potential challenges in maintaining consistent returns.
Cash Flow
65
Positive
The cash flow analysis reveals a decline in free cash flow growth by 11.95% in the TTM period, which could impact future liquidity. The operating cash flow to net income ratio is not available, indicating potential concerns in cash generation relative to earnings. However, the free cash flow to net income ratio of 1.0 suggests adequate cash flow coverage. Overall, while cash flow management appears stable, the recent decline in growth warrants attention.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue862.20M15.80M2.17B1.16B614.40M781.40M
Gross Profit589.50M-45.00M2.13B1.06B614.40M770.10M
EBITDA418.20M377.50M610.30M-103.90M-232.50M711.20M
Net Income201.30M230.40M502.00M792.80M-290.90M711.20M
Balance Sheet
Total Assets6.78B9.93B8.39B7.39B7.00B4.83B
Cash, Cash Equivalents and Short-Term Investments162.70M1.22B1.61B1.18B605.80M354.10M
Total Debt694.60M562.50M564.60M575.20M639.10M376.40M
Total Liabilities5.24B4.79B3.82B3.45B3.30B1.01B
Stockholders Equity4.64B4.48B4.24B3.75B3.55B3.91B
Cash Flow
Free Cash Flow470.80M586.80M404.10M365.00M38.60M-60.60M
Operating Cash Flow470.80M586.80M404.10M365.00M38.60M-60.60M
Investing Cash Flow-509.30M-447.00M-543.90M115.50M-208.30M64.60M
Financing Cash Flow121.10M4.20M7.20M-327.40M217.60M49.00M

White Mountains Insurance Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1825.39
Price Trends
50DMA
1795.29
Positive
100DMA
1784.61
Positive
200DMA
1843.89
Negative
Market Momentum
MACD
13.24
Negative
RSI
52.57
Neutral
STOCH
70.04
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 1825.39 is above the 20-day moving average (MA) of 1808.18, above the 50-day MA of 1795.29, and below the 200-day MA of 1843.89, indicating a neutral trend. The MACD of 13.24 indicates Negative momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 70.04 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 Risk Analysis

White Mountains Insurance Group disclosed 19 risk factors in its most recent earnings report. White Mountains Insurance Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

White Mountains Insurance Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$6.19B11.4019.23%2.03%4.47%102.98%
76
Outperform
$6.20B19.3119.49%3.87%10.29%-4.70%
75
Outperform
$4.74B12.7512.19%1.95%12.27%66.53%
72
Outperform
$684.18M10.5815.60%3.17%5.64%-17.95%
69
Neutral
$4.73B22.814.47%0.05%8.08%-57.76%
68
Neutral
$17.89B12.0310.28%3.73%9.80%1.66%
58
Neutral
$3.34B10.0212.21%2.38%2.75%572.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WTM
White Mountains Insurance Group
1,825.39
8.87
0.49%
RLI
RLI
67.59
-6.95
-9.32%
SIGI
Selective Insurance Group
78.13
-11.01
-12.35%
THG
Hanover Insurance
173.42
32.62
23.17%
KMPR
Kemper
53.37
-8.17
-13.28%
UVE
Universal Insurance Holdings
24.30
3.75
18.25%

White Mountains Insurance Group Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
White Mountains Completes $150M Investment in BroadStreet
Positive
Jul 18, 2025

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.

Private Placements and Financing
White Mountains Secures $250M Credit Facility Agreement
Neutral
Jul 16, 2025

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%.

M&A TransactionsBusiness Operations and Strategy
White Mountains Acquires 51% Stake in Distinguished
Positive
Jul 7, 2025

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.

Business Operations and StrategyFinancial Disclosures
White Mountains Highlights Strong Q1 2025 Performance
Neutral
Jun 6, 2025

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.

Executive/Board ChangesShareholder Meetings
White Mountains Insurance Holds 2025 Annual Meeting
Neutral
May 22, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025