White Mountains Insurance Group, Ltd.

White Mountains Insurance Group, Ltd.

WTMยทNYSE

$2.03K

-1.8%
Financial ServicesInsurance - Property & Casualty

White 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.

At a Glance

Live Snapshot
Market Cap$5.04B
EPS430.1400
P/E Ratio4.73
Earnings Date08/06/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 4.7).

Valuation inputs: P/E 4.7, earnings yield +21.1%, momentum -1.8%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +20.4%, ROIC +15.1%).

Profitability stack: net margin +40.9%, ROE +20.4%, ROIC +15.1%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +49.2%, momentum -1.8%, net margin +40.9%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

wtm

White Mountains Insurance Group, Ltd. Market vs Earnings Trajectory

WTM ยท NYSE

Loading price and EPS data...

White Mountains Insurance Group, Ltd.

White Mountains Insurance Group, Ltd. Fair Value Envelope

WTM ยท NYSE

Our analysis suggests that WTM has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $2034.55, this represents a potential HIDDEN relative to our calculated worth for White Mountains Insurance Group, Ltd..

Intrinsic Value
Current Price: $2034.55
3Y+55.0%
5Y+89.0%
10Y+423.0%
3Y+134.0%
5Y+202.0%
10Y+1617.0%
3Y+40.0%
5Y+56.0%
10Y+175.0%
3Y-102.0%
5Y-44.0%
10Y-95.0%
3Y-102.0%
5Y-44.0%
10Y-95.0%
3Y+67.0%
5Y+155.0%
10Y+89.0%
White Mountains Insurance Group, Ltd.

White Mountains Insurance Group, Ltd. Profit Bridge

WTM ยท NYSE
Revenue2.71B
Cost of Goods Sold (1.25B)
Gross Profit1.45B
Operating Expenses (125.70M)
Operating Income1.33B
Interest Expense (58.80M)
Other Income/Expense0.00
Pretax Income1.33B
Income Tax (126.90M)
Net Income1.11B
Net Income
1.11B

Profitability Analysis

Gross Margin

53.7%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

49.1%

Outstanding operational efficiency. The company generates substantial profit from core operations.

Net Profit Margin

40.9%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

9.6%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.

53.72%
Gross Profit Margin
18%
3Y+68.0%
5Y-41.0%
10Y-41.0%
49.08%
Operating Profit Margin
265%
3Y-480.0%
5Y-33.0%
10Y-153.0%
40.87%
Net Profit Margin
318%
3Y-40.0%
5Y-48.0%
10Y-84.0%
20.39%
Return on Equity
297%
3Y-4.0%
5Y+12.0%
10Y+82.0%
8.99%
Return on Assets
287%
3Y-16.0%
5Y-39.0%
10Y+46.0%
15.06%
Return on Invested Capital
65%
3Y-585.0%
5Y-98.0%
10Y-152.0%
WTM

White Mountains Insurance Group, Ltd. Cash Conversion Engine

WTM ยท NYSE
Net Income1.11B
Depreciation & Amortization0.00
Stock-Based Compensation20.30M
Change in Working Capital248.40M
Others-1.38B
Capital Expenditures0.00
Free Cash Flow-7.20M

Cash Flow Quality Analysis

FCF Conversion Rate

-0.7%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

FCF Growth Trend

-101.2%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

+$248.40M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.

wtm

White Mountains Insurance Group, Ltd. Funding & Solvency Profile

WTM ยท NYSE
Cash & Cash Equivalents135.90M
Net Receivables1.36B
Inventory0.00
Other Current Assets-4.09B
Total Current Assets97 M
Property, Plant & Equipment0.00
Goodwill & Intangible Assets1.01B
Long-Term Investments5.95B
Other Non-Current Assets-6.67B
Total Non-Current Assets-719200000
Total Assets
7.13B

Financial Health Analysis

Debt-to-Equity Ratio

4.40x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

97 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

1% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

wtm

White Mountains Insurance Group, Ltd. Street Expectations Map

WTM ยท NYSE

No Target Data

No analyst price targets available for wtm.

wtm

White Mountains Insurance Group, Ltd. Insider Positioning

WTM ยท NYSE

During the last 12 months, insiders have sold $10.25M worth of WTM shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

5.0K

10.25M

Net Activity

-10.3M

-$10.25M

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
CRT

Campbell Reid Tarlton

Director

5.0K sharesโ€ข1 transactions

$10.25M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $10.25M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

1 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.04%
Dividend Yield
3Y-42.0%
5Y-54.0%
10Y-
ย 

wtm Dividend History

WTM
10Y CAGR +10%
Latest $1
Annual $2
5 year growth trend
Last Period: +0%