White Mountains Insurance Group (WTM) risk factors, FY2025 10-K

White Mountains Insurance Group's FY2025 10-K, filed Feb 27, 2026, lists 22 risk factors in 8 groups. Against the prior year's 26: 1 new, 5 dropped, 8 substantially reworded.

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Risk factors listed
228 groups
New this year
1vs 26 last year
Dropped
5since the prior 10-K
Substantially reworded
8of those kept
Section length
9k wordsItem 1A

What the changes say

  • Valuation volatility of BAM Surplus Notes created a new specific risk factor.
  • Book value exposure shifted through changes in asset valuations like MediaAlpha.
  • Reinsurance and tax compliance risks were updated to reflect current operational structures.

What changed since the prior 10-K

New

  • NewRisks Related to HG Global’s Business and Industry

    We may be subject to volatility from the valuation of the BAM Surplus Notes, which could materially adversely affect our results of operations and financial condition

    The fair value of BAM Surplus Notes, valued at $339 million at year-end 2025 using discounted cash flows, may introduce book value volatility.

Dropped

  • DroppedRisks Related to HG Global’s Business and Industry

    We may be subject to greater volatility from the BAM Surplus Notes, as the valuation of the BAM Surplus Notes under the discounted cash flow analysis subsequent to deconsolidation could be more volatile, which could materially adversely affect our results of operations and financial condition

  • DroppedRisks Related to Kudu’s Business and Industry

    Kudu’s financial performance is dependent upon its clients’ asset and performance-based fees, which are subject to a variety of economic, market and other risks

  • DroppedRisks Related to Bamboo’s Business and Industry

    Bamboo’s business is dependent on its capacity providers (both fronting and reinsurance), and a change in availability, terms or ratings could materially impact Bamboo’s results of operations and financial condition or adversely affect its ability to write business

  • DroppedRisks Related to Bamboo’s Business and Industry

    Bamboo and its fronting partners are subject to extensive regulation which may prevent Bamboo from adequately pricing or selecting risk

  • DroppedRisks Related to Taxation

    On July 11, 2023, the U.K. enacted conforming legislation adopting the Pillar Two IIR and QDMTT, which became effective for fiscal years beginning on or after December 31, 2023

Reworded

  • 69% rewrittenRisks Related to Taxation

    We may not meet the requirements of the five-year deferral from the Bermuda corporate income tax or the OECD Pillar Two Undertaxed Profits Rule, which could materially adversely affect our results of operations and financial condition

    Updated references regarding Bermuda corporate income tax deferral requirements.

  • 60% rewrittenRisks Related to Distinguished’s Business and Industry

    Distinguished primarily relies on third-party agents and brokers to distribute its products, and any deterioration in the relationships with these parties could adversely affect Distinguished’s business, which could materially adversely affect our results of operations and financial condition

    Replaced references from Bamboo to Distinguished, noting top three agent relationships accounted for 10% of managed premiums in 2025.

    Was: Bamboo primarily relies on third-party agents and brokers to distribute its products, and any deterioration in the relationships with these parties could adversely affect Bamboo’s business

  • 45% rewrittenRisks Related to Taxation

    Changes in tax laws or tax treaties could materially adversely affect our results of operations and financial condition

    Retained standard tax law and treaty risk language for US and non-US subsidiaries.

  • 41% rewrittenRisks Related to Ark/WM Outrigger’s Business and Industry

    Ark may not adequately alleviate risk through reinsurance and retrocessional arrangements, which could materially adversely affect our results of operations and financial condition

    Added that Ark may decide to increase retained risk by purchasing less reinsurance due to pricing or availability.

    Was: Ark may not successfully alleviate risk through reinsurance and retrocessional arrangements, which could materially adversely affect our results of operations and financial condition

  • 33% rewrittenRisks Related to HG Global’s Business and Industry

    If BAM does not pay some or all of the principal and interest due on the BAM Surplus Notes, it could materially adversely affect our results of operations and financial condition

    Updated BAM Surplus Notes principal balance to $277 million, accrued interest to $214 million, fair value to $339 million, and NYDFS approved payments to $35 million for 2025.

  • 33% rewrittenRisks Related to Ark/WM Outrigger’s Business and Industry

    Ark’s loss and LAE reserves may be inadequate to cover the ultimate liability for losses, which could materially adversely affect our results of operations and financial condition

    Expanded Ark loss and LAE reserve risk factors to include specific actuarial assumptions and inflation factors.

    Was: Ark/WM Outrigger’s loss and LAE reserves may be inadequate to cover the ultimate liability for losses, and as a result, our results of operations and financial condition could be adversely affected

  • 30% rewrittenRisks Related to Ark/WM Outrigger’s Business and Industry

    Unpredictable catastrophic events could materially adversely affect our results of operations and financial condition

    Removed WM Outrigger Re from catastrophe exposure descriptions, leaving only Ark.

  • 25% rewrittenRisks Related to Investments

    We may be subject to volatility from our investment in MediaAlpha, which could materially adversely affect our results of operations and financial condition

    Updated MediaAlpha investment valuation figures to $231 million based on a closing share price of $12.95 at year-end 2025.

All 22 risk factors

Headings as the filing states them, in filing order.

Risks Related to White Mountains

  1. 01We have successfully created shareholder value through acquisitions and dispositions. We may not be able to continue to create shareholder value through such transactions in the future, which could materially adversely affect our results of operations and financial condition
  2. 02As of December 31, 2025, we had total goodwill and other intangible assets of $1,020 million on our consolidated balance sheet, of which $578 million relates to Distinguished and $293 million relates to Ark

Risks Related to Ark/WM Outrigger’s Business and Industry

  1. 03Unpredictable catastrophic events could materially adversely affect our results of operations and financial condition30% rewritten
  2. 04Ark and its subsidiaries benefit from favorable financial strength ratings from A.M. Best, Standard & Poor’s and others, the deterioration of which could materially adversely affect its ability to conduct business and, consequently, could materially adversely affect our results of operations and financial condition
  3. 05Ark may not adequately alleviate risk through reinsurance and retrocessional arrangements, which could materially adversely affect our results of operations and financial condition41% rewritten
  4. 06The property and casualty insurance and reinsurance industries are highly competitive and cyclical, and Ark may not be able to compete effectively in the future, which could materially adversely affect our results of operations and financial condition
  5. 07Ark’s loss and LAE reserves may be inadequate to cover the ultimate liability for losses, which could materially adversely affect our results of operations and financial condition33% rewritten

Risks Related to HG Global’s Business and Industry

  1. 08HG Re is only licensed to provide reinsurance to BAM. If BAM does not maintain its favorable financial strength rating from Standard & Poor’s, it could materially adversely affect HG Re’s business and, consequently, could materially adversely affect our results of operations and financial condition
  2. 09Certain sectors of the municipal bond insurance industry are highly competitive, and BAM may not be able to compete effectively in the future, which could materially adversely affect HG Re’s business and, consequently, could materially adversely affect our results of operations and financial condition
  3. 10We are exposed to losses from municipal bond insurance written by BAM through our reinsurance treaties between HG Re and BAM, which could materially adversely affect our results of operations and financial condition
  4. 11If BAM does not pay some or all of the principal and interest due on the BAM Surplus Notes, it could materially adversely affect our results of operations and financial condition33% rewritten
  5. 12We may be subject to volatility from the valuation of the BAM Surplus Notes, which could materially adversely affect our results of operations and financial conditionNew

Risks Related to Distinguished’s Business and Industry

  1. 13Distinguished primarily relies on third-party agents and brokers to distribute its products, and any deterioration in the relationships with these parties could adversely affect Distinguished’s business, which could materially adversely affect our results of operations and financial condition60% rewritten

Risks Related to Investments

  1. 14We may be subject to volatility from our investment in MediaAlpha, which could materially adversely affect our results of operations and financial condition25% rewritten

Risks Related to Taxation

  1. 15We may not meet the requirements of the five-year deferral from the Bermuda corporate income tax or the OECD Pillar Two Undertaxed Profits Rule, which could materially adversely affect our results of operations and financial condition69% rewritten
  2. 16Changes in tax laws or tax treaties could materially adversely affect our results of operations and financial condition45% rewritten

Risks Related to Laws and Regulation

  1. 17Regulation may have a material adverse effect on our operations and financial condition
  2. 18Bermuda law differs from the laws in effect in the United States and may afford less protection to shareholders
  3. 19We could be materially adversely affected if our controls designed to ensure compliance with guidelines, policies, and legal and regulatory standards are not effective
  4. 20We may be unable to adequately maintain our systems and safeguard the security of our data, which could adversely impact our ability to operate our business and cause reputational harm and, consequently, could materially adversely affect our results of operations and financial condition
  5. 21We may suffer losses from unfavorable outcomes from litigation and other legal proceedings, which could materially adversely affect our results of operations and financial condition
  6. 22We depend on our key personnel to manage our business effectively, and they may be difficult to replace, which could materially adversely affect our results of operations and financial condition

Other White Mountains Insurance Group 10-Ks

  • FY2024 10-K risk factors
    26 risks

    White Mountains faces substantial catastrophe exposure in property and casualty underwriting through Ark and WM Outrigger Re.

    Filed Feb 28, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.