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what it is
White Mountains sells insurance, reinsurance, and insurance services, then reinvests the cash it collects.
how it gets paid
Last year White Mountains Insurance Group made $3.7B in revenue. Property & casualty insurance was the main engine at $1.48B, or 40% of sales.
why it's growing
Revenue grew 66.8% last year. In one reported quarter (same window as the ~$2.1B revenue (q) block below), EPS printed on the order of $105.18—that is not a full-year EPS figure; the score-strip 4.9× trailing P/E uses TTM earnings, not a single quarter in isolation.
what just happened
A single quarter can print around $2B+ of revenue while full-year revenue is ~$3.7B—huge vs. prior year percentages often reflect acquisitions, reinsurance timing, or segment reclassification. Tie each dollar to the same line in the 10-Q/10-K.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
5/100 earnings predictability — expect surprises
4.9x trailing p/e — the market's not buying it — or you found a deal
0.1% dividend yield — cash in your pocket every quarter
5.2% return on capital — nothing to write home about
xvary composite: 70/100 — average
What they do
White Mountains sells insurance, reinsurance, and insurance services, then reinvests the cash it collects.
The filing-defined margin line shown here (~76.8%) is unusually wide versus typical P&C retail—insurance/reinsurance accounting mixes underwriting, fees, and investments, so do not compare it to a grocery chain’s gross margin. You get 893 employees across insurance, reinsurance, and services, so switching costs for operating partners can still be real.
How they make money
$3.7B
annual revenue · their business grew +66.8% last year
Property & casualty insurance
$1.48B
Reinsurance
$1.04B
Insurance services and distribution
$0.59B
Specialty underwriting
$0.37B
Investments and other
$0.22B
The products that matter
majority-owned insurance platform
Bamboo
~$2.2B · about 60% of the mix shown here
At roughly $2.2B, Bamboo is the biggest operating piece on the page and the clearest place for new capital to either compound or disappoint.
capital deployment test
municipal bond insurance
HG Global / BAM
~$0.9B · about 25% of the mix
This roughly $0.9B bucket looks steadier than the rest, which matters when overall earnings predictability is only 5/100.
steadier cash flow
p&c insurance and reinsurance
Other Operations
~$0.6B · about 15% of the mix
Roughly $0.6B of smaller operations gives White Mountains breadth, but it also makes the story harder for you to underwrite from the outside.
harder to model
Key numbers
4.9x
trailing p/e
You pay $4.90 for $1 of trailing profit. That is cheap for a company with a 76.8% margin and a 0.1% yield.
76.8%
operating margin
Holding-company and insurance/reinsurance reporting can produce very wide “margin” lines that are not comparable to a normal industrial P&L—treat 76.8% as a filing-defined number, not a naive retail gross-margin analogy.
$3.7B
annual revenue
This is the size of the machine. Bigger revenue means more insurance float and more room for bad quarters to get absorbed.
$562M
long-term debt
Debt is not the problem here, but $562M is still real money. It is 9% of capital, so the balance sheet is not frictionless.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $562M (9% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for WTM right now.
source: institutional data · return history unavailable
What just happened
beat estimates
One reported quarter moved about $2.1B (q) through the top line, up ~147% vs. prior year on that print—while full-year revenue in this snapshot stays ~$3.7B. Do not annualize one big quarter or mix it with FY tables.
EPS reached $105.18 in the same window the feed used for that quarter, up sharply vs. prior year—insurance/reinsurance and deal timing make both revenue and EPS volatile; tie each figure to the identical column in the 10-Q/10-K.
$2.1B
revenue (q)
$105.18
eps (same q)
~+147%
rev vs. prior year (that q)
revenue jump
The ~$2.1B quarter and ~147% vs. prior year are the loud proof something large moved through the book that period—then reconcile straight to ~$3.7B FY so you are not modeling off the wrong denominator.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the Liam Caffrey CEO handoff failing to lift returns on capital.
high
capital allocation stays ordinary
A 5.2% return on capital is not enough to make this a great compounder. If the new CEO cannot push that number higher, the stock stays a low-multiple asset story instead of becoming a re-rating story.
the bull case needs better returns, not just stable assets
med
book value loses its floor effect
The stock sits at $2098.78 versus $2188 in book value per share. That discount looks comforting until book value drops. If asset values weaken or underwriting disappoints, your valuation cushion shrinks fast.
a small discount to book is only helpful if book value is stable or rising
med
the numbers are noisy by design
Earnings predictability is 5/100 and the current revenue estimate is $3B versus $3.7B last year. This business can look cheap on one set of figures and less attractive on the next.
low predictability means your thesis has to survive ugly quarters
low
ownership is concentrated in institutions
95.8% of shares are held by institutions. That sounds reassuring until it is not. If a few large holders decide the new strategy is not working, a $5B stock can feel less liquid than you expect.
sentiment can move faster than fundamentals in tightly held names
At $2098.78 versus $2188 in book value, you are not overpaying for the assets. You are paying for the chance that 5.2% return on capital goes higher from here.
source: institutional data · regulatory filings · risk analysis
Pay attention to
returns
Return on capital above 5.2%
This is the cleanest scoreboard. If returns on capital do not move up from 5.2%, the new chapter looks a lot like the old one.
management
Liam Caffrey's first major capital decision
A deal, divestiture, or large investment after the january 1, 2026 handoff will tell you how aggressive this regime plans to be.
book value
Book value per share versus the stock price
$2188 in book value against a $2098.78 stock price is the valuation anchor. If that gap closes because book value rises, that is good. If it closes because book value falls, not so much.
volatility
Another big swing in revenue or earnings
The current revenue estimate is $3B versus $3.7B last year, and earnings predictability is 5/100. You should expect irregular quarters until the portfolio mix settles down.
Analyst rankings
earnings predictability
5 / 100
Very low predictability. In human-speak, analysts do not expect a smooth earnings line here.
risk rank
2
Risk rank 2 means safer than most stocks. The balance sheet is not the scary part.
price stability
85 / 100
Price stability of 85/100 means this usually trades like a grown-up stock, even when the underlying numbers are lumpy.
source: institutional data
Institutional activity
institutional ownership data for WTM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2099
current price
n/a
target midpoint · n/a from current
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