The Bermuda-based White Mountains Insurance Group (which includes OneBeacon, White Mountains Re and Esurance) announced that its “adjusted comprehensive net income for the fourth quarter of 2007 was $127 million compared to $357 million in the fourth quarter of last year. Adjusted comprehensive net income for 2007 was $481 million compared to $734 million in 2006. Net income for the quarter was $101 million compared to $299 million. Net income for 2007 was $407 million compared to $673 million.
“These results reflect favorable weather conditions and strong investment results in all periods,” the bulletin added. “2006 results benefited from an after-tax gain of $171 million on the sale of 27.6 percent of OneBeacon through an initial public offering and other after-tax gains of $83 million on the purchase of Mutual Service Casualty Insurance Company, the sale of Sirius America, the sale of OneBeacon’s Agri business and settlements of U.S. Federal and state income tax audits.”
White Mountains also noted that as of the end of 2007 its fully diluted tangible book value per share was $444, an increase of 2.5 percent for the quarter and 11.4 percent for the year, including dividends. Fully diluted tangible book value per share at December 31, 2007 was reduced by $2 from the impact of share repurchases during the fourth quarter.
Ray Barrette, Chairman and CEO commented: “We had a good year. We avoided the sub-prime mess and continued to generate solid returns in our investment portfolio. OneBeacon and White Mountains Re had good underwriting results. Esurance had strong premium growth but higher than expected claim costs. We remain confident that it is a superior business. Our balance sheet and capital position are strong. We are leaving no stone unturned in our search to add value in these volatile markets.”
The full earnings release and a break down of the results of the Group’s main operations may be obtained on its web site at: www.whitemountains.com.
Source: White Mountains
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