White Mountains Increases Book Value in 2ndQ

Bermuda-based White Mountains Insurance Group Ltd. ended the second quarter of 2002 with a fully converted tangible book value per share of $236, a $14 increase from March 31, 2002, and a $10 increase from Dec. 31, 2001. The company said the increase resulted from investment gains and improving underwriting results for all insurance and reinsurance segments.

White Mountains also announced the date of its rescheduled 2002 Annual Investor Meeting. The meeting will be held on Aug. 14 at the Waldorf Astoria Hotel in New York City.

White Mountains reported comprehensive net income of $756 million for the six months ended June 30, versus a $141 million comprehensive net loss for the comparable 2001 period. Comprehensive net income includes after tax operating income of $60 million at its insurance subsidiaries and $108 million of net after tax investment gains, primarily unrealized gains on fixed income securities, offset by $79 million of holding company losses, primarily after tax interest expense other financing charges, and amortization of purchase accounting adjustments. Comprehensive net income also includes $667 million of net deferred credits that were primarily recognized during the first quarter in connection with adoption of new accounting standards.

White Mountains subsidiaries include One Beacon, Folksamerica, Montpelier Re and White Mountains Underwriting Ltd.