White Mountains Insurance Group (WTM) AI Stock Analysis

• Market Cap: $4.42B
• Dividend Yield: 0.06%
• Average Volume (3M): 31.30K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.25
• Revenue Growth: 8.08%
• EPS Growth: -57.76%
• Country: US
• Employees: 893
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 47.75
• Shares Outstanding: 2,575,161
• 10 Day Avg. Volume: 36,176
• 30 Day Avg. Volume: 31,304
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 6.91
• Enterprise Value/Gross Profit: 10.10
• Enterprise Value/Ebitda: 14.24
• 1Y Price Target: $2,011.00
• Price Target Upside: 16.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $2,011.00 ▲(16.72% Upside)

White Mountains Insurance Group's overall stock score reflects strong financial performance and positive corporate events, which are the most significant factors. While technical analysis presents mixed signals, the company's strategic acquisitions and leadership transition are expected to bolster its market position. Valuation is reasonable, providing a balanced outlook for investors.

White Mountains Insurance Group Business Overview & Revenue Model

Company Description

White Mountains Insurance Group (WTM) is a diversified insurance and reinsurance holding company based in Hamilton, Bermuda. The company operates through various subsidiaries and engages in a range of sectors including property and casualty insurance, reinsurance, and investment management. WTM focuses on providing innovative insurance solutions and managing risks for its clients, leveraging its expertise in underwriting and capital management to ensure stability and growth in its operations.

How the Company Makes Money

White 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	862.20M	15.80M	2.17B	1.16B	614.40M	781.40M
Gross Profit	589.50M	-45.00M	2.13B	1.06B	614.40M	770.10M
EBITDA	418.20M	377.50M	610.30M	-103.90M	-232.50M	711.20M
Net Income	201.30M	230.40M	502.00M	792.80M	-290.90M	711.20M
Balance Sheet
Total Assets	6.78B	9.93B	8.39B	7.39B	7.00B	4.83B
Cash, Cash Equivalents and Short-Term Investments	162.70M	1.22B	1.61B	1.18B	605.80M	354.10M
Total Debt	694.60M	562.50M	564.60M	575.20M	639.10M	376.40M
Total Liabilities	5.24B	4.79B	3.82B	3.45B	3.30B	1.01B
Stockholders Equity	4.64B	4.48B	4.24B	3.75B	3.55B	3.91B
Cash Flow
Free Cash Flow	470.80M	586.80M	404.10M	365.00M	38.60M	-60.60M
Operating Cash Flow	470.80M	586.80M	404.10M	365.00M	38.60M	-60.60M
Investing Cash Flow	-509.30M	-447.00M	-543.90M	115.50M	-208.30M	64.60M
Financing Cash Flow	121.10M	4.20M	7.20M	-327.40M	217.60M	49.00M

White Mountains Insurance Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1722.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1722.98 is below the 20-day moving average (MA) of 1796.27, below the 50-day MA of 1794.48, and below the 200-day MA of 1833.40, indicating a bearish trend. The MACD of -19.94 indicates Positive momentum. The RSI at 39.14 is Neutral, neither overbought nor oversold. The STOCH value of 12.32 is Positive, 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	79 Outperform	6.26B	11.50	17.27%	2.06%	4.47%	102.98%
RLI	76 Outperform	6.01B	18.67	22.72%	4.00%	10.29%	-4.70%
SIGI	75 Outperform	4.71B	12.59	11.39%	1.96%	12.27%	66.53%
UVE	72 Outperform	716.46M	10.80	15.79%	3.04%	5.64%	-17.95%
WTM	69 Neutral	$4.42B	21.31	4.47%	0.06%	8.08%	-57.76%
KMPR	58 Neutral	3.30B	9.90	0.00%	2.41%	2.75%	572.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

White Mountains Insurance Group Corporate Events

White Mountains Acquires Controlling Stake in Distinguished

On September 2, 2025, White Mountains Insurance Group completed the acquisition of a 50% stake in AQ Phoenix Parent, L.P, known as Distinguished Programs, for $224 million in cash. This acquisition increases White Mountains’ ownership to a 51% controlling interest, potentially strengthening its market position and influence in the insurance sector.

White Mountains Insurance Announces CEO Transition Plan

On December 31, 2025, Manning Rountree will retire as CEO of White Mountains Insurance Group, transitioning to a Senior Advisor role until January 1, 2028. Liam Caffrey, currently President and CFO, will succeed him as CEO on January 1, 2026, with Michael Papamichael and Giles Harrison taking over as CFO and President, respectively. This leadership transition is seen as a strategic move to continue the company’s strong performance and shareholder value creation.

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.