Fitch Affirms White Mountains Insurance Group's IDR at 'BBB+'

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed the 'BBB+' Issuer Default Rating (IDR) of White Mountains Insurance Group, Ltd. (White Mountains).

KEY RATING DRIVERS

Fitch's affirmation of White Mountains' IDR follows the closing of the sale of Sirius International Insurance Group, Ltd. (Sirius) to CM International Holding PTE Ltd, the Singapore-based investment arm of CMI for approximately $2.6 billion. White Mountains also recorded a $658 million gain when Symetra Financial Corporation was sold to Sumitomo Life Insurance Company of Feb. 1, 2016.

Fitch's rationale for the affirmation of White Mountains's rating reflects the company's low financial and operating leverage, opportunistic business approach, platform of property/casualty specialty insurance, and favorable financial flexibility.

The sale of these investments has given White Mountains considerable levels of cash. Fitch believes this cash will be used to evaluate potential acquisitions, share buy backs, or increased dividends. Sirius was the single largest holding of White Mountains as measured by equity.

Fitch will evaluate White Mountains' rating as any material changes to the company takes place.

RATING SENSITIVITIES

Key rating triggers that could lead to a downgrade are:

--Credit weakening at any majority owned subsidiary;

--Material investments into lower credit profile industries;

--Financial leverage above 30%.

Key rating triggers that could lead to an upgrade include:

--Improvement in overall credit profile of operating investment companies.

Additional information is available on www.fitchratings.com

Applicable Criteria

Insurance Rating Methodology (pub. 16 Sep 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=871172

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002750

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002750

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160418006157/en/

Fitch Ratings
Primary Analyst
Gerald B. Glombicki, CPA
Director
+1-312-606-2354
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Brian C. Schneider, CPA, CPCU, ARe
Senior Director
+1-312-606-2321
or
Committee Chairperson
Donald F. Thorpe, CFA, CPA
Senior Director
+1-312-606-2353
or
Media Relations:
Hannah James, +1 646-582-4947
[email protected]

Source: Fitch Ratings

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