White Mountains Posts $39 Million Q3 Loss on Investment Reversal

White Mountains Insurance (WTM ) Group reported third-quarter results on November 5, 2026, posting a $39 million comprehensive loss attributable to common shareholders as investment results reversed from a year earlier. Book value per share was $2,243 at September 30, 2026, down 1% for the quarter but up 3% for the first nine months of 2026, including dividends.

The result reversed $114 million of comprehensive income in the third quarter of 2025. Results included $69 million of net realized and unrealized investment losses, compared with $76 million of gains a year earlier. “Higher interest rates and a lower share price at MediaAlpha drove unrealized investment losses, which offset an otherwise solid quarter for operating results,” Chief Executive Liam Caffrey said.

The results separately included $54 million of unrealized losses on MediaAlpha. Its share price fell 24% during the quarter, from $12.57 at June 30, 2026 to $9.57 at September 30, while the carrying value of White Mountains’ investment declined to $171 million from $225 million. The consolidated investment portfolio returned negative 0.6%; excluding MediaAlpha’s investment income and gains or losses, it was flat. The short-duration fixed-income portfolio returned negative 0.7%, showing that the pressure extended beyond the single equity holding.

Ark’s Underwriting Improves as Investment Results Weaken

Ark’s combined ratio improved to 75% from 76% a year earlier, and gross written premiums increased to $386 million from $366 million. Pre-tax income nevertheless fell to $64 million from $97 million as its investment result swung to a $40 million loss from an $18 million gain. Catastrophe losses added two points to the combined ratio, primarily reflecting the war in Iran, for which Ark recorded $10 million of estimated losses net of reinsurance and reinstatement premiums.

Ark’s tangible book value, a non-GAAP measure excluding goodwill and other intangible assets, the related deferred tax liability and contingent consideration, reached $1.825 billion. That represented growth of 5% for the quarter and 12% for the first nine months, including dividends. The quarterly premium increase reflected a change in the recognition timing of certain delegated-authority business and growth in specialty and accident and health lines, partly offset by lower property writings amid softening market conditions. The timing change did not affect earned-premium recognition. Ark does not expect its losses from Hurricane Isaias, which made U.S. landfall in October 2026, to be significant.

Investment Losses Offset Growth Elsewhere

Kudu displayed a similar divide between operating and investment performance. Its adjusted EBITDA, which adds back interest, taxes, depreciation and amortization and excludes investment gains and losses, equity-based compensation and transaction expenses, rose to $18 million from $15 million. Kudu nevertheless swung to a $15 million pre-tax loss from $44 million of income as its investment result moved to a $26 million loss from a $36 million gain. Its trailing-12-month return on equity fell to 8% from 15% at June 30, primarily because of lower unrealized investment gains.

HG Global’s gross written premiums rose 21% year over year to $19 million, but it posted a $28 million pre-tax loss after $29 million of investment losses driven by higher interest rates. WTM Partners provided a different result: revenue increased to $107 million from $54 million, and pre-tax income reached $1 million after a $1 million loss a year earlier. Organic growth at Enterprise Solutions and the second-quarter acquisitions of Basesix and Hawkeye Electric drove the increases. Distinguished’s trailing-12-month managed premiums also grew 5% quarter over quarter, reaching $625 million.

MediaAlpha Stake Reduction

Alongside the results, White Mountains disclosed an agreement on November 4, 2026 to sell 5.5 million MediaAlpha (MAX ) shares for $13.90 each. After the sale, it will own 12.4 million shares, representing a 21% ownership interest based on shares outstanding at October 26, compared with 17.9 million shares and a 29% basic interest at September 30. At the post-sale ownership level, White Mountains estimates that each $1 change in MediaAlpha’s share price will change its book value per share by approximately $5.

Capital deployment included $217 million of share repurchases during the first nine months of 2026, although third-quarter repurchases were minimal. Undeployed capital remained roughly $0.8 billion.

The quarter separates operating progress from valuation pressure across the group. The planned MediaAlpha reduction would lessen exposure to one volatile holding, but the investment losses at Ark, Kudu and HG Global show that interest-rate sensitivity extends across several businesses.