Highlights

  • White Mountains shows 454.77% EPS growth, 5.02 P/E and -1.29 PEG.
  • Second quarter basic EPS was $80.58, against $47.75 a year earlier.
  • White Mountains repurchased 91,194 common shares for $191 million in the second quarter.
  • Book value per share was $2,257.60 at June 30, 2026, against $1,803.57 a year earlier.

One-year earnings growth of 454.77%, paired with a trailing twelve-month P/E of 5.02 and an expected-basis PEG of -1.29, puts White Mountains Insurance Group (NYSE:WTM) among undervalued growth stocks, with shares trading at USD 2,219.72 on October 28, 2026, up 0.34%. In its latest disclosures, the Bermuda-incorporated insurance and investment holding company completed the Basesix acquisition on April 1, refinanced HG Global's senior debt on May 14, and reported second quarter 2026 net income attributable to common shareholders of $199.5 million in its quarterly report filed in early August.

White Mountains Insurance Group, Ltd. is an exempted Bermuda limited liability company with its headquarters in Hamilton, Bermuda and its principal executive office in Hanover, New Hampshire. Its reportable segments are Ark/WM Outrigger, a specialty property and casualty insurer and reinsurer; Kudu, which provides capital solutions to asset and wealth managers; HG Global, a first-loss reinsurer for Build America Mutual Assurance Company; Distinguished, a managing general agent; and WTM Partners, which acquires electrical contracting and systems businesses.

Growth: Second Quarter Earnings, Revenues and Segment Results

Net income attributable to White Mountains common shareholders was $199.5 million in the second quarter against $122.9 million a year earlier, and $172.3 million for the first six months against $156.8 million. Basic and diluted earnings per share were $80.58 against $47.75 in the quarter, and $67.36 against $60.99 for six months. Total revenues were $844.6 million against $689.2 million.

Net realized and unrealized investment gains were $151 million in the quarter against $87 million, including $58 million of unrealized gains on its MediaAlpha investment against $31 million.

Ark/WM Outrigger reported a combined ratio of 84% against 84% and pre-tax income of $80 million against $98 million. Kudu reported pre-tax income of $57 million against $11 million. WTM Partners reported revenues of $93 million against $43 million.

Valuation: P/E of 5.02, PEG of -1.29 and Book Value Per Share

The P/E ratio of 5.02 is measured on trailing twelve-month earnings, and the PEG ratio of -1.29 on expected growth. Book value per share was $2,257.60 at June 30, 2026, against $2,187.97 at December 31, 2025 and $1,803.57 at June 30, 2025. The company reported book value per share increases of 4% in the second quarter and 3% in the first six months, including dividends. Its total consolidated portfolio return on invested assets was 3.5% in the second quarter.

Capital Returns, Debt and Liquidity

White Mountains repurchased and retired 91,194 common shares for $191 million in the second quarter at an average price of $2,092.72, or 93% of its June 30, 2026 book value per share. For the first six months it repurchased 103,816 shares for $217 million. The board authorizations had no expiration date, with 170,007 shares available at June 30, 2026. The company declared and paid a dividend of $1.00 per common share in the six months.

Total debt was $932.5 million against $837.0 million at December 31, 2025, and the ratio of total debt to total capital was 13.0% against 11.8%. On May 14, 2026 HG Global issued $200 million of fixed rate secured senior notes due 2036 and received net proceeds of $197 million. The $250 million WTM Credit Facility, maturing July 16, 2028, was undrawn.

Disclosed Risks and Outlook

Net cash used for operations was $25 million in the first six months against net cash provided of $137 million. Distinguished reported a pre-tax loss of $11 million in the quarter. Ark's combined ratio included three points of catastrophe losses in the quarter, primarily from the war in Iran, and the company recorded estimated losses of $17 million for the quarter and $42 million for six months related to the war. Ark's gross written premiums were $778 million against $815 million, which the company attributed primarily to softening market conditions in property lines. HG Global's total gross pricing was 135 basis points against 206 basis points and its pre-tax income was $10 million against $17 million.

The company said ratings of its subsidiaries may be lowered, which could raise borrowing costs, and that it can give no assurance of obtaining additional financing on satisfactory terms. It reported no current non-claims litigation that may have a material adverse effect. The quarterly report contains no earnings guidance. Ark renewed Outrigger Re Ltd. for the 2026 underwriting year with $70 million of unaffiliated third-party capital, and White Mountains received a $77 million distribution from WM Outrigger Re on July 23.