White Mountains Insurance Group (WTM) AI Stock Analysis

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White Mountains Insurance Group

(NYSE:WTM)

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Rating:87Outperform

Price Target:$2,719.00▲(20.58% Upside)

Action:reiterated

Date:11/06/26

White Mountains Insurance Group achieves a strong overall score, primarily driven by its deeply discounted valuation, robust dividend yield, and a pristine, debt-free balance sheet. Strong technical momentum and exceptional profit margins further support the bullish outlook, easily offsetting minor revenue contraction. The recent addition of experienced leadership to the board further solidifies the company's formidable market positioning.

Positive Factors

Strong ProfitabilityWTM is currently converting its insurance and investment activities into substantial earnings, with a high TTM net margin and a strong rebound from 2024. This profitability provides internal capital for underwriting capacity, investments, dividends, and resilience through normal business fluctuations.

Negative Factors

Revenue ContractionThe recent revenue decline shows that strong earnings have not been accompanied by consistent top-line expansion. For an insurance holding company, weaker revenue can limit premium growth and reduce the scale of investable float, making future earnings more dependent on margins and investment outcomes.

White Mountains Insurance Group (WTM) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $5.38B
Dividend Yield: 0.04%
Average Volume (3M): 21.55K
Price to Earnings (P/E): 6.0
Beta (1Y): 0.20
Revenue Growth: 10.70%
EPS Growth: 586.65%
Country: US
Employees: 1,648
Sector: Financial
Sector Strength: 68
Industry: Insurance - Diversified

White Mountains Insurance Group Business Overview & Revenue Model

Company Description

White Mountains Insurance Group, Ltd. provides insurance services in the United States, the United Kingdom, Bermuda, and internationally. It operates through Ark/WM Outrigger, HG Global, Kudu, Distinguished, and Other Operations segments. The company...

How the Company Makes Money

WTM primarily makes money through (1) insurance and reinsurance underwriting results and (2) investment income on the assets (float) generated by its insurance operations, plus (3) gains, losses, and fees associated with its strategic investments and...

White Mountains Insurance Group Financial Statement Overview

Summary

Financial performance is robust, driven by a pristine, unlevered balance sheet and exceptional profit margins. Despite a slight revenue pullback and historical cash flow volatility, strong net income generation and high return on equity underline a highly stable core operation.

Income Statement

82Very Positive

Balance Sheet

95Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.58B	2.71B	2.35B	2.17B	1.16B	614.40M
Gross Profit	1.68B	1.45B	1.07B	1.15B	370.90M	33.10M
EBITDA	1.22B	1.42B	371.10M	610.30M	-104.80M	-231.50M
Net Income	974.60M	1.11B	230.40M	509.20M	792.80M	-275.40M
Balance Sheet
Total Assets	13.36B	12.31B	9.93B	8.39B	7.39B	7.00B
Cash, Cash Equivalents and Short-Term Investments	3.38B	3.15B	1.22B	1.61B	1.18B	605.80M
Total Debt	928.60M	837.00M	562.50M	564.60M	575.20M	639.10M
Total Liabilities	7.14B	6.05B	4.79B	3.82B	3.45B	3.30B
Stockholders Equity	5.35B	5.43B	4.48B	4.24B	3.75B	3.55B
Cash Flow
Free Cash Flow	422.30M	-7.20M	586.80M	404.10M	434.00M	98.20M
Operating Cash Flow	422.30M	-7.20M	586.80M	404.10M	434.00M	98.20M
Investing Cash Flow	-443.10M	212.70M	-447.00M	-543.90M	155.70M	-204.00M
Financing Cash Flow	-334.60M	-205.20M	4.20M	7.20M	-461.80M	149.20M

White Mountains Insurance Group Technical Analysis

Technical Analysis SentimentPositive

Last Price2254.95

Price Trends

50DMA2134.57Positive

100DMA2136.84Positive

200DMA2147.78Positive

Market Momentum

MACD37.56Positive

RSI55.49Neutral

STOCH30.50Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTM, the sentiment is Positive. The current price of 2254.95 is above the 20-day moving average (MA) of 2252.00, above the 50-day MA of 2134.57, and above the 200-day MA of 2147.78, indicating a bullish trend. The MACD of 37.56 indicates Positive momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 30.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTM.

White Mountains Insurance Group Risk Analysis

White Mountains Insurance Group disclosed 19 risk factors in its most recent earnings report. White Mountains Insurance Group reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

3 New Risks

1.A substantial portion of Distinguished's business is placed with one insurance carrier, and most of Distinguished's business is placed with a small number of carriers. Any deterioration in the arrangements with its carriers could adversely affect Distinguished's business, which could materially adversely affect our results of operations and financial condition.Q4, 2025

2.Distinguished's commission revenues are dependent on many factors, some of which are beyond its control, including the pricing and profitability of certain segments of the property and casualty insurance industry, which is highly competitive and cyclical. Distinguished may not be able to compete effectively in the future, which could materially adversely affect our results of operations and financial condition.Q4, 2025

3.Our non-U.S. subsidiaries are treated as CFCs and may subject a U.S. 10% shareholder of our common shares to disadvantageous rules under U.S. federal income tax laws.Q4, 2024

White Mountains Insurance Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

WTM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTM	87Outperform	$5.36B	5.97	18.10%	0.04%	10.70%	586.65%
HIG	82Outperform	$36.61B	8.25	24.13%	1.75%	4.08%	34.70%
ACGL	81Outperform	$35.56B	8.85	18.35%	―	-5.29%	14.08%
AXS	78Outperform	$7.76B	7.27	17.80%	1.62%	10.16%	7.89%
AIG	77Outperform	$42.81B	13.41	8.18%	2.29%	1.19%	9.77%
IGIC	76Outperform	$1.01B	10.15	15.27%	5.75%	1.96%	―
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

WTM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
WTM	White Mountains Insurance	2254.95	355.82	18.74%
AIG	American International Group, Inc.	82.86	8.24	11.04%
ACGL	Arch Capital	109.61	17.80	19.39%
AXS	Axis Capital Holdings	108.72	9.72	9.82%
HIG	Hartford Insurance Group Inc	137.48	7.75	5.97%
IGIC	International General Insurance Holdings Ltd.	24.36	2.12	9.53%

White Mountains Insurance Group Corporate Events

Business Operations and StrategyExecutive/Board Changes

White Mountains Insurance Adds Seasoned Director to Board

Positive

Aug 27, 2026

On August 26 and 27, 2026, White Mountains Insurance Group, Ltd. announced that its Board of Directors has elected Stephen Klar, former President and Managing Partner of Wellington Management Group LLP, as a director, expanding the Board from 10 to 1...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 06, 2026

White Mountains Insurance Group AI Stock Analysis