WHITE MOUNTAINS NINE-MONTH INCOME FALLS 96%

Bermuda-domiciled reinsurer White Mountains Insurance Group saw net income for the first nine months of the year plummet 96% to $13.6m on declines in both underwriting and investment results. The group's earned premiums for the period fell 9.4% to $2.46bn, while claims costs rose 4.2% to $1.68bn. In its investment portfolio, net investment income dropped 15.5% to $172.8m, while net realized and unrealized investment gains decreased by 76% to $86.3m. Pre-tax income at US primary insurance unit OneBeacon fell 72% to $105.8m on earned premiums of $1.20bn, down 18%. The unit's combined ratio rose to 102% to 95%, which the group attributed to large loss activity and catastrophe losses during the early part of the year. White Mountains Re saw pre-tax income fall 77% to $64.1m on earned premiums of $638.2m, down 2%. The reinsurance unit posted a combined ratio of 102%, 20 points higher than in 2009 owing to a jump in catastrophe losses to $176m from $45m. Cat losses included $130m from the Chilean earthquake, $10m from European floods and $7m from European windstorm Xynthia. For Q3, the White Mountains group saw net income drop by 68% to $50.7m on lower premiums and investment returns.