WHITE MOUNTAINS INSURANCE GROUP LTD – 10-Q – Management’s Discussion and Analysis of Financial and Results of Operations.

The following discussion contains "forward-looking statements." White Mountains
intends statements that are not historical in nature, which are hereby
identified as forward-looking statements, to be covered by the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. White
Mountains cannot promise that its expectations in such forward-looking
statements will turn out to be correct. White Mountains's actual results could
be materially different from and worse than its expectations. See
"FORWARD-LOOKING STATEMENTS" on page 78 for specific important factors that
could cause actual results to differ materially from those contained in
forward-looking statements.
The following discussion also includes twelve non-GAAP financial measures: (i)
adjusted book value per share, (ii) BAM's gross written premiums and member
surplus contributions ("MSC") from new business, (iii) Ark's adjusted loss and
LAE ratio, (iv) Ark's adjusted insurance acquisition expense ratio, (v) Ark's
adjusted other underwriting expense ratio, (vi) Ark's adjusted combined ratio
(vii) Kudu's earnings before interest, taxes, depreciation and amortization
("EBITDA"), (viii) Kudu's adjusted EBITDA, (ix) total consolidated portfolio
returns excluding MediaAlpha, (x) NSM's EBITDA, (xi) NSM's adjusted EBITDA and
(xii) adjusted capital, that have been reconciled from their most comparable
GAAP financial measures on page 75. White Mountains believes these measures to
be useful in evaluating White Mountains's financial performance and condition.

RESULTS FOR THE LAST THREE AND 66 MONTHS JUNE 30, 2022 IT’S 2021

In short

White Mountains reported book value per share of $1,129 and adjusted book value
per share of $1,152 as of June 30, 2022. Book value per share decreased 5% and
adjusted book value per share decreased 4% in the second quarter of 2022. For
the first six months of 2022, book value decreased 4% and adjusted book value
decreased 3%, including dividends. Results were driven primarily by
mark-to-market losses in White Mountains's fixed income investment portfolio and
the decline in MediaAlpha's share price, partially offset by positive operating
results within our consolidated businesses. White Mountains reported book value
per share of $1,279 and adjusted book value per share of $1,292 as of June 30,
2021. Book value per share and adjusted book value per share both increased 4%
in the second quarter of 2021 and 2% in the first six months of 2021, including
dividends. Results in the second quarter of 2021 were driven by positive
operating results within our consolidated businesses as well as the increase in
MediaAlpha's share price.
On August 1, 2022, White Mountains closed the previously announced sale of NSM
Group for cash to an affiliate of The Carlyle Group, Inc. (the "NSM
Transaction"). The NSM Transaction valued NSM Group at an enterprise value of
$1.775 billion. Including the estimated net gain of approximately $300 per share
from the NSM Transaction, book value per share would be $1,429 and adjusted book
value per share would be $1,452 as of June 30, 2022. The estimated net gain per
share from the NSM Transaction increased by approximately $20 to $300 per share,
due primarily to: (i) positive operating results at NSM in the pre-closing
period, (ii) recording of certain compensation and other costs in connection
with the transaction in White Mountains's second quarter financial statements
and (iii) the impact of share repurchases decreasing the number of shares
outstanding. Beginning in the second quarter of 2022, NSM Group's results have
been presented as discontinued operations.
In the HG Global/BAM segment, gross written premiums and MSC collected totaled
$41 million and $63 million in the second quarter and first six months of 2022
compared to $30 million and $56 million in the second quarter and first six
months of 2021. Total pricing was 70 and 67 basis points in the second quarter
and first six months of 2022 compared to 59 and 65 basis points in the second
quarter and first six months of 2021. BAM insured municipal bonds with par value
of $5.9 billion and $9.3 billion in the second quarter and first six months of
2022 compared to $5.1 billion and $8.7 billion in the second quarter and first
six months of 2021, which included $806 million from an assumed reinsurance
transaction. BAM's total claims paying resources were $1,228 million as of
June 30, 2022 compared to $1,192 million as of December 31, 2021 and $1,165
million as of June 30, 2021. On April 29, 2022, HG Global received the proceeds
of its new $150 million, 10-year term loan credit facility. In turn, on May 2,
2022, HG Global paid a $120 million cash dividend to shareholders, of which $116
million was paid to White Mountains.
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Ark reported a GAAP combined ratio of 87% and 93% in the second quarter and
first six months of 2022 compared to 90% and 99% in the second quarter and first
six months of 2021. Ark's adjusted combined ratio, which adds back amounts
attributable to TPC providers, was 86% and 93% in the second quarter and first
six months of 2022 compared to 84% and 96% in the second quarter and first six
months of 2021. The adjusted combined ratio in the second quarter and first six
months of 2022 included 11 points and 14 points of catastrophe losses compared
to six points and 12 points in the second quarter and first six months of 2021.
Catastrophe losses for the second quarter and first six months of 2022 included
an estimate of incurred losses emanating from the ongoing conflict in Ukraine of
seven points and nine points. The adjusted combined ratio in the second quarter
and first six months of 2022 also included 12 points and seven points of
favorable prior year development compared to 10 points and five points in the
second quarter and first six months of 2021. Ark reported gross written premiums
of $404 million and $1,037 million, net written premiums of $270 million and
$814 million and net earned premiums of $217 million and $412 million in the
second quarter and first six months of 2022 compared to gross written premiums
of $328 million and $733 million, net written premiums of $262 million and $605
million and net earned premiums of $118 million and $222 million in the second
quarter and first six months of 2021. Ark reported pre-tax income (loss) of
$(21) million and $(45) million in the second quarter and first six months of
2022 compared to $18 million and $(15) million in the second quarter and first
six months of 2021. Ark's results included net realized and unrealized
investment gains (losses) of $(45) million and $(62) million in the second
quarter and first six months of 2022 compared to $9 million and $10 million in
the second quarter and first six months of 2021. Ark's pre-tax loss for the
first six months of 2021 also included $25 million of transaction expenses
related to White Mountains's transaction with Ark.
Kudu reported total revenue of $(4) million, pre-tax loss of $10 million and
adjusted EBITDA of $11 million in the second quarter of 2022 compared to total
revenue of $36 million, pre-tax income of $31 million and adjusted EBITDA of $5
million in the second quarter of 2021. Total revenues and pre-tax income in the
second quarter of 2022 included $18 million of net unrealized investment losses
on Kudu's participation contracts compared to $28 million of net unrealized
investment gains on Kudu's participation contracts in the second quarter of
2021. Kudu reported total revenue of $31 million, pre-tax income of $19 million
and adjusted EBITDA of $21 million in the first six months of 2022 compared to
total revenue of $60 million, pre-tax income of $47 million and adjusted EBITDA
of $11 million in the first six months of 2021. Total revenues and pre-tax
income in the first six months of 2022 included $5 million of net unrealized
investment gains on Kudu's participation contracts compared to $44 million of
net unrealized investment gains on Kudu's participation contracts in the first
six months of 2021.
As of June 30, 2022, the market value of White Mountains's investment in
MediaAlpha was $167 million, which was down from $280 million as of March 31,
2022. As of June 30, 2022, the closing price was $9.85 per share, which
decreased from $16.55 at March 31, 2022. Based on White Mountains's ownership of
16.9 million shares of MediaAlpha as of June 30, 2022, each $1.00 per share
increase or decrease in the stock price of MediaAlpha will result in an
approximate $5.80 per share increase or decrease in White Mountains's book value
per share and adjusted book value per share.
White Mountains's pre-tax total consolidated portfolio return on invested assets
was -4.7% in the second quarter of 2022. This return included $114 million of
unrealized investment losses from White Mountains's investment in MediaAlpha.
Excluding MediaAlpha, the total consolidated portfolio return on invested assets
was -2.1% in the second quarter of 2022.
Excluding MediaAlpha, investment returns in the second quarter of 2022 were
driven primarily by net unrealized investment losses in the fixed income
portfolio due to rising interest rates. White Mountains's pre-tax total
consolidated portfolio return on invested assets was 5.0% in the second quarter
of 2021. This return included $113 million of unrealized investment gains from
White Mountains's investment in MediaAlpha. Excluding MediaAlpha, the total
consolidated portfolio return on invested assets was 2.4% in the second quarter
of 2021. Excluding MediaAlpha, investment returns in the second quarter of 2021
were driven primarily by favorable other long-term investments results and the
impact of the flattening yield curve on White Mountains's short duration fixed
income portfolio.
White Mountains's pre-tax total consolidated portfolio return on invested assets
was -4.0% in the first six months of 2022. This return included $95 million of
unrealized investment losses from White Mountains's investment in MediaAlpha.
Excluding MediaAlpha, the total consolidated portfolio return on invested assets
was -1.9% in the first six months of 2022. Excluding MediaAlpha, investment
returns in the first six months of 2022 were driven primarily by net unrealized
investment losses in the fixed income portfolio due to rising interest rates,
partially offset by favorable other long-term investment results. White
Mountains's pre-tax total consolidated portfolio return on invested assets was
4.7% in the first six months of 2021. This return included $71 million of net
realized and unrealized investment gains from White Mountains's investment in
MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on
invested assets was 3.1% in the first six months of 2021. Excluding MediaAlpha,
investment returns in the first six months of 2021 were driven primarily by
favorable other long-term investment results.
Within the results from discontinued operations, NSM reported commission and
other revenues of $103 million, pre-tax income of $13 million and adjusted
EBITDA of $29 million in the second quarter of 2022 compared to commission and
other revenues of $84 million, pre-tax income of $1 million and adjusted EBITDA
of $19 million in the second quarter of 2021. NSM reported commission and other
revenues of $191 million, pre-tax income of $16 million and adjusted EBITDA of
$47 million in the first six months of 2022 compared to commission and other
revenues of $159 million, pre-tax loss of $32 million and adjusted EBITDA of $33
million in the first six months of 2021.

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Adjusted Book Value Per Share

The following table provides Pictures of the White Mountains book value per share is
reconciles adjusted book value per share, a non-GAAP measure as of
June 30, 2022, March 31, 2022, December 31, 2021and June 30, 2021. You see
NON-GAAP FINANCIAL STATEMENTS on page 75.

                                                                                                    December 31,
                                                    June 30, 2022           March 31, 2022              2021              June 30, 2021
Book value per share numerators (in
millions):
White Mountains's common shareholders'
equity -
 GAAP book value per share numerator              $      3,323.3          $ 

3,542.1 $3,548.1 $3,978.2

Time value of money discount on expected
future
  payments on the BAM Surplus Notes (1)                   (115.9)                  (120.9)              (125.9)                 (132.8)
HG Global's unearned premium reserve (1)                   221.6                    215.8                214.6                   201.5
HG Global's net deferred acquisition costs
(1)                                                        (62.6)                   (60.6)               (60.8)                  (56.3)
Adjusted book value per share numerator           $      3,366.4          $ 

3,576.4 $3,576.0 $3,990.6
Book value per share (in thousands of shares):
Common stock is outstanding – GAAP book value

  per share denominator                                  2,942.9                  2,994.2              3,017.8                 3,109.2
Unearned restricted common shares                          (20.9)                   (24.2)               (13.7)                  (20.6)

Adjusted book value per share denominator                2,922.0                  2,970.0              3,004.1                 3,088.6
GAAP book value per share                         $     1,129.27          $ 

1,183.00 $1,175.73 $1,279.49
Adjusted book value per share

                     $     1,152.12          $ 

1,204.17 $1,190.39 $1,292.03
Annual dividends are paid per share

             $         1.00          $ 

1.00 $1.00 $1.00

(1) Amount of money Pictures of the White Mountains Preferred ownership at HG Global of
96.9%.

Good and Other Intangibles

The following table presents a summary of goodwill and other intangible assets
that are included in White Mountains's book value as of June 30, 2022, March 31,
2022, December 31, 2021, and June 30, 2021:

                                                                                                          December 31,
Millions                                             June 30, 2022          March 31, 2022                    2021               June 30, 2021
Goodwill:
Ark                                                $        116.8          $        116.8                $      116.8          $        116.8

Kudu                                                          7.6                     7.6                         7.6                     7.6
Other Operations (1)                                         77.4                    17.9                        17.9                    27.1
Total goodwill                                              201.8                   142.3                       142.3                   151.5
Other intangible assets:
Ark                                                         175.7                   175.7                       175.7                   175.7

Kudu                                                          1.1                     1.3                         1.3                     1.5
Other Operations (1)                                         19.4                    20.2                        21.2                    23.9
Total other intangible assets                               196.2                   197.2                       198.2                   201.1
Total goodwill and other intangible assets
(2)                                                         398.0                   339.5                       340.5                   352.6
Goodwill and other intangible assets
attributed to
   non-controlling interests                               (103.4)                  (91.8)                      (91.8)                  (92.4)
Goodwill and other intangible assets
included in

Pictures of the White Mountains common shareholders

  equity                                           $        294.6          $        247.7                $      248.7          $        260.2


(1) The relative fair values of goodwill and other intangible assets recognized
in connection with recent acquisitions within Other Operations had not yet been
finalized at June 30, 2022 and 2021.

(2) See Note 4 – “Good and Other Intangibles” to learn more about the positives
and other intangibles.



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Summary of Consolidated Results

The following table provides Pictures of the White Mountains consolidated financial results
for it lasted three and six months June 30, 2022 and 2021:

                                                        Three Months Ended            Six Months Ended
                                                             June 30,                     June 30,
Millions                                                2022           2021           2022          2021
Revenues

Financial Guarantee revenues                        $     (13.2)     $  17.4      $    (44.5)     $ 10.7
P&C Insurance and Reinsurance revenues                    182.2        130.5           357.9       239.6

Asset Management revenues                                  (3.8)        36.2            31.1        60.3

Other Operations revenues                                 (88.5)       158.3            (7.4)      135.2
Total revenues                                             76.7        342.4           337.1       445.8
Expenses
Financial Guarantee expenses                               25.6         15.5            44.9        33.8
P&C Insurance and Reinsurance expenses                    203.6        112.7           402.4       254.3

Asset Management expenses                                   6.4          4.8            12.0        13.2

Other Operations expenses                                  73.7         48.0           125.2        88.5
Total expenses                                            309.3        181.0           584.5       389.8
Pre-tax income (loss)
Financial Guarantee pre-tax income (loss)                 (38.8)         1.9           (89.4)      (23.1)
P&C Insurance and Reinsurance pre-tax income
(loss)                                                    (21.4)        17.8           (44.5)      (14.7)

Asset Management pre-tax income (loss)                    (10.2)        31.4            19.1        47.1

Other Operations pre-tax income (loss)                   (162.2)       110.3          (132.6)       46.7
Total pre-tax income (loss) from continuing
operations                                               (232.6)       161.4          (247.4)       56.0
Income tax (expense) benefit                               16.0        (30.0)           18.7       (23.6)
Net income (loss) from continuing operations             (216.6)       131.4          (228.7)       32.4
Gain (loss) on sale of Sirius Group, net of tax               -            -               -        18.7

Total income (losses) from The NSM group he stopped

  operations, net of tax                                    6.4          1.1            10.1       (29.1)
Net income (loss)                                        (210.2)       132.5          (218.6)       22.0
Net (income) loss attributable to
non-controlling interests                                  41.0          6.0            82.8        41.2
Net income (loss) attributable to White
Mountains's
  common shareholders                                    (169.2)       138.5          (135.8)       63.2
Other comprehensive income (loss), net of tax              (1.1)          .5            (1.5)         .2

All other income (losses) from The NSM group

  discontinued operations, net of tax                      (4.0)          .5            (5.9)        2.6
Comprehensive income (loss)                              (174.3)       139.5          (143.2)       66.0
Other comprehensive (income) loss attributable
to
  non-controlling interests                                  .5          (.1)             .7         (.2)
Comprehensive income (loss) attributable to
White
  Mountains's common shareholders                   $    (173.8)     $ 139.4      $   (142.5)     $ 65.8






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I. Summary of Functions and Sections

As of June 30, 2022, White Mountains conducted its operations through four
segments: (1) HG Global/BAM, (2) Ark, (3) Kudu and (4) Other Operations. A
discussion of White Mountains's consolidated investment operations is included
after the discussion of operations by segment. White Mountains's segment
information is presented in Note 15 - "Segment Information" to the Consolidated
Financial Statements.
As a result of the NSM Transaction, the results of operations for NSM Group have
been classified as discontinued operations and are presented separately, net of
related income taxes, in the statement of comprehensive income. Prior year
amounts have been reclassified to conform to the current period's presentation.
See Note 19 - "Held for Sale and Discontinued Operations."

HG Global/BAM

HG Global/BAM consists of the consolidated results of HG Global, HG Re and BAM.
BAM is the first and only mutual municipal bond insurance company in the United
States. By insuring the timely payment of principal and interest, BAM provides
market access to, and lowers interest expense for, issuers of municipal bonds
used to finance essential public purpose projects, such as schools, utilities
and transportation facilities. BAM is owned by and operated for the benefit of
its members, the municipalities that purchase BAM's insurance for their debt
issuances. HG Global was established to fund the startup of BAM and, through HG
Re, to provide up to 15%-of-par, first loss reinsurance protection for policies
underwritten by BAM.
The following tables present the components of pre-tax income (loss) included in
White Mountains's HG Global/BAM segment related to the consolidation of HG
Global, which includes HG Re and its other wholly-owned subsidiaries, and BAM
for the three and six months ended June 30, 2022 and 2021:

                                                                             Three Months Ended June 30, 2022
Millions                                                    HG Global            BAM            Eliminations            Total
Direct written premiums                                    $       -          $  17.1          $          -          $   17.1
Assumed written premiums                                        14.7                -                 (14.7)                -
Gross written premiums                                          14.7             17.1                 (14.7)             17.1
Ceded written premiums                                             -            (14.7)                 14.7                 -
Net written premiums                                       $    14.7          $   2.4          $          -          $   17.1

Earned insurance premiums                                  $     8.7          $   1.8          $          -          $   10.5
Net investment income                                            2.2              2.6                     -               4.8
Net investment income - BAM Surplus Notes                        3.0                -                  (3.0)                -
Net realized and unrealized investment gains
(losses)                                                       (14.7)           (15.4)                    -             (30.1)
Other revenues                                                    .1              1.5                     -               1.6
Total revenues                                                  (0.7)            (9.5)                 (3.0)            (13.2)
Insurance acquisition expenses                                   3.4              1.4                     -               4.8

General and administrative expenses                               .8             16.6                     -              17.4
Interest expense - HG Global Senior Notes                        3.4                -                     -               3.4
Interest expense - BAM Surplus Notes                               -              3.0                  (3.0)                -
Total expenses                                                   7.6             21.0                  (3.0)             25.6
Pre-tax income (loss)                                      $    (8.3)         $ (30.5)         $          -          $  (38.8)
Supplemental information:
   MSC collected (1)                                       $       -          $  24.0          $          -          $   24.0

(1) The accumulated MSC is recorded directly to BAM’s equity, which is recorded as
uncontrollable interest in Pictures of the White Mountains balance sheet.

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                                                                              Three Months Ended June 30, 2021
Millions                                                     HG Global            BAM            Eliminations            Total
Direct written premiums                                    $        -          $  13.8          $          -          $   13.8
Assumed written premiums                                         11.8                -                 (11.8)                -
Gross written premiums                                           11.8             13.8                 (11.8)             13.8
Ceded written premiums                                              -            (11.8)                 11.8                 -
Net written premiums                                       $     11.8          $   2.0          $          -          $   13.8

Earned insurance premiums                                  $      5.3          $   1.2          $          -          $    6.5
Net investment income                                             1.7              2.6                     -               4.3
Net investment income - BAM Surplus Notes                         3.0                -                  (3.0)                -
Net realized and unrealized investment gains                      2.4              3.9                     -               6.3
Other revenues                                                     .1               .2                     -                .3
Total revenues                                                   12.5              7.9                  (3.0)             17.4
Insurance acquisition expenses                                    1.3               .3                     -               1.6

General and administrative expenses                                .5             13.4                     -              13.9
Interest expense - BAM Surplus Notes                                -              3.0                  (3.0)                -
Total expenses                                                    1.8             16.7                  (3.0)             15.5
Pre-tax income (loss)                                      $     10.7          $  (8.8)         $          -          $    1.9
Supplemental information:
   MSC collected (1)                                       $        -          $  16.3          $          -          $   16.3

(1) The accumulated MSC is recorded directly to BAM’s equity, which is recorded as
uncontrollable interest in Pictures of the White Mountains balance sheet.


                                                                                 Six Months Ended June 30, 2022
Millions                                                       HG Global               BAM            Eliminations            Total
Direct written premiums                                    $        -               $  26.5          $          -          $   26.5
Assumed written premiums                                         22.8                     -                 (22.8)                -
Gross written premiums                                           22.8                  26.5                 (22.8)             26.5
Ceded written premiums                                              -                 (22.8)                 22.8                 -
Net written premiums                                       $     22.8               $   3.7          $          -          $   26.5

Earned insurance premiums                                  $     15.6               $   3.3          $          -          $   18.9
Net investment income                                             4.3                   5.1                     -               9.4
Net investment income - BAM Surplus Notes                         5.9                     -                  (5.9)                -
Net realized and unrealized investment gains
(losses)                                                        (38.2)                (37.0)                    -             (75.2)
Other revenues                                                     .2                   2.2                     -               2.4
Total revenues                                                  (12.2)                (26.4)                 (5.9)            (44.5)
Insurance acquisition expenses                                    6.0                   1.8                     -               7.8

General and administrative expenses                               1.5                  32.2                     -              33.7
Interest expense - HG Global Senior Notes                         3.4                     -                     -               3.4
Interest expense - BAM Surplus Notes                                -                   5.9                  (5.9)                -
Total expenses                                                   10.9                  39.9                  (5.9)             44.9
Pre-tax income (loss)                                      $    (23.1)              $ (66.3)         $          -          $  (89.4)
Supplemental information:
   MSC collected (1)                                       $        -               $  36.3          $          -          $   36.3

(1) The accumulated MSC is recorded directly to BAM’s equity, which is recorded as
uncontrollable interest in Pictures of the White Mountains balance sheet.

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                                                                              Six Months Ended June 30, 2021
Millions                                                    HG Global            BAM            Eliminations            Total
Direct written premiums                                    $       -          $  21.8          $          -          $   21.8
Assumed written premiums                                        22.5              4.5                 (22.5)              4.5
Gross written premiums                                          22.5             26.3                 (22.5)             26.3
Ceded written premiums                                             -            (22.5)                 22.5                 -
Net written premiums                                       $    22.5          $   3.8          $          -          $   26.3

Earned insurance premiums                                  $    10.6          $   2.3          $          -          $   12.9
Net investment income                                            3.5              5.3                     -               8.8
Net investment income - BAM Surplus Notes                        6.0                -                  (6.0)                -
Net realized and unrealized investment losses                   (7.5)            (4.1)                    -             (11.6)
Other revenues                                                    .2               .4                     -                .6
Total revenues                                                  12.8              3.9                  (6.0)             10.7
Insurance acquisition expenses                                   2.8               .7                     -               3.5

General and administrative expenses                              1.1             29.2                     -              30.3
Interest expense - BAM Surplus Notes                               -              6.0                  (6.0)                -
Total expenses                                                   3.9             35.9                  (6.0)             33.8
Pre-tax income (loss)                                      $     8.9          $ (32.0)         $          -          $  (23.1)
Supplemental information:
   MSC collected (1)                                       $       -             30.1          $          -          $   30.1

(1) MSC is written directly to BAM’s equity, which is written as
uncontrollable interest in Pictures of the White Mountains balance sheet.


HG Global/BAM Results-Three Months Ended June 30, 2022 versus Three Months Ended
June 30, 2021
BAM is required to prepare its financial statements on a statutory accounting
basis for the NYDFS and does not report stand-alone GAAP financial results. BAM
charges an insurance premium on each municipal bond insurance policy it writes.
A portion of the premium is MSC and the remainder is a risk premium. In the
event of a municipal bond refunding, a portion of the MSC from original issuance
can be reutilized, in effect serving as a credit against the total insurance
premium on the refunding of the municipal bond.
Gross written premiums and MSC collected in the HG Global/BAM segment totaled
$41 million in the second quarter of 2022 compared to $30 million in the second
quarter of 2021. BAM insured $5.9 billion of municipal bonds, $4.1 billion of
which were in the primary market, in the second quarter of 2022 compared to $5.1
billion of municipal bonds, $4.8 billion of which were in the primary market, in
the second quarter of 2021. Demand remained strong for insured bonds in the
primary market, as insured penetration in the primary market was 9.1% in the
second quarter of 2022 compared to 9.0% in the second quarter of 2021.
Total pricing, which reflects both gross written premiums and MSC from new
business, increased to 70 basis points in the second quarter of 2022 compared to
59 basis points in the second quarter of 2021. See "NON-GAAP FINANCIAL MEASURES"
on page 75. The increase in total pricing was driven primarily by increased
secondary market activity in the second quarter of 2022 compared to the second
quarter of 2021. Pricing in the primary market decreased to 49 basis points in
the second quarter of 2022 compared to 51 basis points in the second quarter of
2021. Pricing in the combined secondary and assumed reinsurance markets, which
is more transaction specific than pricing in the primary market, decreased to
121 basis points in the second quarter of 2022 compared to 175 basis points in
the second quarter of 2021.
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The following table presents the gross par value of primary and secondary market
policies issued, the gross par value of assumed reinsurance, the gross written
premiums and MSC collected and total pricing for the three months ended June 30,
2022 and 2021:

                                                                       Three Months Ended June 30,
$ in Millions                                                           2022                   2021

Gross par value of primary market policies issued                 $      4,123.7          $   4,815.5
Gross par value of secondary market policies issued                      1,743.8                312.1
Gross par value of assumed reinsurance                                         -                    -
Total gross par value of market policies issued                   $      5,867.5          $   5,127.6
Gross written premiums                                            $         17.1          $      13.7
MSC collected                                                               24.0                 16.3
Total gross written premiums and MSC collected                    $         41.1          $      30.0
Present value of future installment MSC collections                            -                    -

Premium changes listed on existing units
process

                                                                       -                   .1
Gross written premiums and MSC from new business (1)              $         41.1          $      30.1
Total pricing                                                                70 bps               59 bps

(1) See “NON-GAAP FINANCIAL STATEMENTS” on page 75.


HG Global reported pre-tax income (loss) of $(8) million in the second quarter
of 2022 compared to $11 million in the second quarter of 2021. The change in
pre-tax income (loss) was driven primarily by net unrealized investment losses
on the HG Global fixed income portfolio, as interest rates increased in the
second quarter of 2022. Results in the second quarter of 2022 and 2021 both
included $3.0 million of interest income on the BAM Surplus Notes.
On April 29, 2022, HG Global received the proceeds of its new $150 million,
10-year term loan credit facility. In turn, on May 2, 2022, HG Global paid a
$120 million cash dividend to shareholders, of which $116 million was paid to
White Mountains.
BAM is a mutual insurance company that is owned by its members. BAM's results
are consolidated into White Mountains's GAAP financial statements and attributed
to non-controlling interests. White Mountains reported $31 million of GAAP
pre-tax loss from BAM in the second quarter of 2022 compared to $9 million in
the second quarter of 2021. The change in pre-tax loss was driven primarily by
net unrealized investment losses on the BAM fixed income portfolio, as interest
rates increased in the second quarter of 2022. Results in the second quarter of
2022 include $3 million of interest expense on the BAM Surplus Notes and $16
million of general and administrative expenses, compared to $3 million of
interest expense and $13 million of general and administrative expenses in the
second quarter of 2021.
All BAM-insured bond payments due through August 1, 2022 have been made by
insureds, and there are no credits on BAM's watchlist.

HG Global/BAM Results-Six Months Ended June 30, 2022 versus Six Months Ended
June 30, 2021
Gross written premiums and MSC collected in the HG Global/BAM segment totaled
$63 million in the first six months of 2022, compared to $56 million in the
first six months of 2021. BAM insured $9.3 billion of municipal bonds, $6.9
billion of which were in the primary market, in the first six months of 2022,
compared to $8.7 billion of municipal bonds, $7.4 billion of which were in the
primary market, in the first six months of 2021. In the first quarter of 2021,
BAM completed an assumed reinsurance transaction to reinsure municipal bonds
with a par value of $806 million.
Total pricing, which reflects both gross written premiums and MSC from new
business, increased to 67 basis points in the first six months of 2022, compared
to 65 basis points in the first six months of 2021. See "NON-GAAP FINANCIAL
MEASURES" on page 75. The increase in total pricing was driven primarily by
increased secondary market activity in the first six months of 2022 compared to
the first six months of 2021. Pricing in the primary market decreased to 47
basis points in the first six months of 2022, compared to 54 basis points in the
first six months of 2021. Pricing in the secondary and assumed reinsurance
markets, which is more transaction specific than pricing in the primary market,
decreased to 124 basis points in the first six months of 2022, compared to 131
basis points in the first six months of 2021.
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The following table presents the gross par value of primary and secondary market
policies issued, the gross par value of assumed reinsurance, the gross written
premiums and MSC collected and total pricing for the six months ended June 30,
2022 and 2021:

                                                                        Six Months Ended June 30,
$ in Millions                                                           2022                   2021

Gross par value of primary market policies issued                 $      6,878.8          $   7,357.5
Gross par value of secondary market policies issued                      2,442.9                489.2
Gross par value of assumed reinsurance                                         -                805.5
Total gross par value of market policies issued                   $      9,321.7          $   8,652.2
Gross written premiums                                                      26.5                 26.2
MSC collected                                                               36.3                 30.1
Total gross written premiums and MSC collected                    $         62.8          $      56.3
Present value of future installment MSC collections                            -                    -

Premium changes listed on existing units
process

                                                                       -                   .1
Gross written premiums and MSC from new business                  $         62.8          $      56.4
Total pricing                                                                67 bps               65 bps



HG Global reported pre-tax income (loss) of $(23) million in the first six
months of 2022 compared to $9 million in the first six months of 2021. The
change in pre-tax income (loss) was driven primarily by net unrealized
investment losses on the HG Global fixed income portfolio, as interest rates
increased in the first six months of 2022. Results in the first six months of
2022 and 2021 both include $6 million of interest income on the BAM Surplus
Notes.
White Mountains reported $66 million of GAAP pre-tax loss from BAM in the first
six months of 2022 compared to $32 million in the first six months of 2021. The
increase in pre-tax loss was driven primarily by net unrealized investment
losses on the BAM fixed income portfolio, as interest rates increased in the
first six months of 2022. Results in the first six months of 2022 include $6
million of interest expense on the BAM Surplus Notes and $32 million of general
and administrative expenses, compared to $6 million of interest expense and $29
million of general and administrative expenses in the first six months of 2021.

Claims Paying Resources
BAM's claims paying resources represent the capital and other financial
resources BAM has available to pay claims and, as such, is a key indication of
BAM's financial strength.
BAM's claims paying resources were $1,228 million as of June 30, 2022 compared
to $1,192 million as of December 31, 2021 and $1,165 million as of June 30,
2021. The increase in claims paying resources as of June 30, 2022 compared to
December 31, 2021 was driven primarily by increases in the statutory value of
the collateral trusts resulting from deposits of ceded premiums and an increase
in BAM's qualified statutory capital resulting from business operations for the
six months ended June 30, 2022.
The following table presents BAM's total claims paying resources as of June 30,
2022, December 31, 2021 and June 30, 2021:

Millions                                   June 30, 2022      December 31, 2021      June 30, 2021
Policyholders' surplus                    $        303.4      $          298.1      $        323.1
Contingency reserve                                109.8                 101.8                97.4
   Qualified statutory capital                     413.2                 399.9               420.5
Net unearned premiums                               51.1                  49.5                47.4
Present value of future installment
premiums and MSC                                    13.9                  13.8                13.8
HG Re Collateral trusts at statutory
value                                              499.4                 478.9               433.0
Fidus Re Collateral trust at statutory
value                                              250.0                 250.0               250.0
   Claims paying resources                $      1,227.6      $        1,192.1      $      1,164.7



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