White Mountains Insurance Group, Ltd. (WTM) AI Stock Analysis

White Mountains Insurance Group, Ltd. operates as a diversified financial services provider through its various subsidiaries in the United States. Established in 1980 and headquartered in Hamilton, Bermuda, the company divides its operations into five distinct segments: HG Global/BAM, Ark, NSM, Kudu, and Other Operations. The HG Global/BAM segment provides municipal bond insurance and reinsurance protection services for public infrastructure projects. The Ark segment conducts reinsurance and insurance operations covering property, marine and energy, casualty, accident and health, and specialty lines. NSM serves as a managing general agent and program administrator. Kudu provides capital solutions to boutique asset and wealth managers, while Other Operations offers travel insurance solutions and manages insurance-linked securities.

Revenue grew from $614.4M in FY2021 to $2.71B in FY2025, representing a 5-year revenue CAGR of 24.8%. The company experienced significant margin expansion over this period, rebounding from a net loss of -$275.4M and an operating margin of -44.5% in FY2021 to net income of $792.8M in FY2022, $509.2M in FY2023, and $230.4M in FY2024. In FY2025, operating margin reached 49.1% and net income surged to $1.11B, generating diluted EPS of $468.38. Over the trailing twelve months ending June 30, 2026, revenue totaled $2.98B with an operating margin of 36.4%. For the latest quarter, quarterly revenue increased 22.5% year-over-year, accompanied by quarterly earnings growth of 68.8%.

As of June 30, 2026, White Mountains reported $1.79B in cash and short-term investments alongside total debt of $932.5M, resulting in net cash of $858.3M. Total assets were $13.77B and shareholders' equity reached $5.39B, yielding a debt-to-equity ratio of 0.17. For FY2025, operating cash flow and free cash flow both stood at -$7.2M. Capital allocation in FY2025 included $202.6M directed toward share buybacks and $2.6M paid out in dividends, contributing to a 5-year share count reduction of 20.2%.

At the closing price of $2160.31, White Mountains carries a market cap of $5.16B and an enterprise value of $4.64B. The stock trades at a trailing P/E of 4.9x and a price-to-sales ratio of 1.7x, both sitting below the median of its US-listed Financial Services peers of 12.1x and 3.2x, respectively. Its forward P/E of 13.9x stands above the peer median of 10.8x, alongside a price-to-book ratio of 0.9x and a PEG ratio of 0.81. Over the past year, the stock returned 17.0%, compared to a 16.8% gain for the S&P 500 (SPY), while its 5-year return of 96.8% exceeded the S&P 500 return of 83.0%.

White Mountains pays an annual dividend of $1.00 per share, which represents a dividend yield of 0.05% and a payout ratio of 0.3%. The company has paid consecutive dividends for 32 years, though its 5-year annualized dividend growth stands at 0.0%. Its most recent ex-dividend date occurred on March 16, 2026.

Analyst coverage provides a mean price target of $360.00, which sits 83.3% below the last close of $2160.31. White Mountains has beaten consensus EPS estimates in each of the trailing 4 quarters. The company's next earnings report is scheduled for November 5, 2026.

This page is an AI-written research summary of White Mountains Insurance Group, Ltd. (WTM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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