Ark’s Q2 GWP climb to $697m as CoR remains flat at 89%

White Mountains Insurance Group has released its Q2 2024 results, revealing that gross written premiums within its Ark/WM Outrigger segment rose to $697 million, up from $606 million in the same period of 2023.

Meanwhile, Ark/WM Outrigger’s net written premiums in Q2 of 2024 were $503 million, and net earned premiums were $318 million, both increases over Q2 of 2023.

Ark/WM Outrigger’s combined ratio was 87% in Q2 of 2024, flat compared to the same period of 2023. Standalone, Ark’s combined ratio in Q2 of 2024 was 89%, also flat, which reportedly included minimal catastrophe losses compared to five points of catastrophe losses in Q2 of 2023.

According to White Mountains, Ark’s non-catastrophe losses in Q2 of 2024 included $19 million related to a political risk claim, $14 million related to tornado damage in Oklahoma and $13 million related to two satellite losses, all on a net basis.

Ark’s total Q2 2024 pre-tax income was $50 million, up from $42 million in the same period of 2023. This net income figure included net realized and unrealized investment gains of $20 million in Q2 of 2024, up from $18 million in Q2 of 2023.

Ian Beaton, CEO of Ark, commented, “We are off to a good start through the first half of 2024. Ark’s combined ratio was 89% for the second quarter and 91% year to date, both in line with prior year. Gross written premiums were up 15% over prior year in the quarter.

“Risk-adjusted rate change was flat overall. We are seeing good growth in select lines of business, including Marine & Energy and Accident & Health, and in new product classes.”

Group-wide, White Mountains announced a comprehensive loss attributable to common shareholders of $55 million in Q2,  down significantly from comprehensive income of $21 million in the previous year’s quarter.

Manning Rountree, White Mountains CEO, commented, “ABVPS was down 1% in the quarter, due primarily to our investment in MediaAlpha. Excluding MediaAlpha, ABVPS was up 2%, driven by solid results at our operating companies and good investment returns.

“Ark produced an 89% combined ratio and $697 million of gross written premiums in the quarter up 15% year-over-year.

“BAM generated $28 million of total gross written premiums and member surplus contributions in the quarter, up 7% year-over-year due to strong primary market volume. At Kudu, trailing 12 months adjusted EBITDA increased, while the value of the continuing portfolio grew 7%. Bamboo had another strong quarter, once again tripling managed premiums year-over-year and growing adjusted EBITDA.

“MediaAlpha’s share price declined 35% in the quarter, producing a $139 million loss. Excluding MediaAlpha, investment returns were good on an absolute and relative basis. Undeployed capital now stands at roughly $650 million.”

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