White Mountains Insurance Group, Ltd (WTM) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $33.30 million, or $ 7.30 a share in the quarter, against a net profit of $267.90 million, or $47.25 a share in the last year period.
Revenue during the quarter plunged 55.49 percent to $268.20 million from $602.60 million in the previous year period. Net premium earned for the quarter declined 5.58 percent or $16.30 million to $275.90 million.
Total expenses come down
Benefits, losses and expenses for the quarter were at $335 million, or 121.42 percent of premium earned from $356.30 million or 121.94 percent of premium earned in the last year period. Operating loss for the quarter was $66.80 million, compared with an operating income of $246.30 million in the previous year period. Net investment income was at $27.20 million for the quarter, up 49.45 percent or $9 million from year-ago period. The company has booked a loss on investments of $73.70 million in the quarter compared with a gain of $259.30 million for the previous year period.
Ray Barrette, chairman and chief executive officer, commented, "It was an OK last quarter in a successful year for White Mountains. For the year, we grew ABVPS by 14% with the Sirius, Symetra, and Tranzact sales. OneBeacon grew book value per share by 11%, maintaining discipline in competitive markets. HG Global/BAM continues to grow at improved margins, and most of our businesses at White Mountains Capital are building value at a good clip. Investment returns of 2.7% were a bit disappointing as we were under allocated to equities, post Sirius sale, in a rising stock market. We returned $900 million to shareholders, mostly through share repurchases. We still have about $1.8 billion in undeployed capital and continue to look for opportunities, well positioned to deal with a world full of unpredictable developments."
Assets, liabilities fall
Total assets decreased 36.35 percent or $3,737.90 million to $6,544.70 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,807.50 million as on Dec. 31, 2016, down 52.53 percent or $3,107.10 million from year-ago. Return on assets was negative at 0.61 percent in the quarter against a positive 2.51 percent in the last year period. Return on equity was negative at 0.89 percent in the quarter against a positive 6.13 percent in the last year period.
Investments move up
Investments stood at $5,334.80 million as on Dec. 31, 2016, up 24.90 percent or $1,063.70 million from year-ago. Meanwhile, yield on investments went up 8 basis points to 0.51 percent in the quarter. Meanwhile, reinsurance recoverables moved down 7.24 percent or $14 million over the year to $179.50 million on Dec. 31, 2016.
Total debt was at $285.90 million as on Dec. 31, 2016, down 15.31 percent or $51.70 million from year-ago. Shareholders equity stood at $3,737.20 million as on Dec. 31, 2016, down 14.44 percent or $630.80 million from year-ago. As a result, debt to equity ratio was almost stable at 0.08 percent in the quarter, when compared with the last year period.
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