White Mountains Insurance Group, Ltd

News below

https://finance.yahoo.com/news/white-mountains-commence-self…

(MT Newswires) – White Mountains Insurance Group (WTM) said Monday that it has initiated a “modified Dutch auction” self-tender offer to buy up to $500 million of its common shares at a price range of $1,250 to $1,400 per share in cash.
The tender offer will expire at midnight ET at the end of the day on Sept. 20, unless extended.
If the tender offer is fully subscribed at the maximum purchase price of $1,400 per share, the company could buy 357,142 shares, reflecting about 12.3% of shares outstanding. At the minimum purchase price of $1,250 per share, the company could buy 400,000 shares, representing about 13.8% of the shares outstanding.

Are they moving before the possible new tax on buybacks or they believe the price is cheap?

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Are they moving before the possible new tax on buybacks or they believe the price is cheap?

More likely the latter. They’ve done it before, buying 12.5% of outstanding shares in 2017-Q4 at $875.
Likely a combination of thinking it’s good capital allocation, and having the spare capital at the same time.

They haven’t had an obviously great stretch lately.
Book per share up about inflation + 2.25%/year in the last 4.25 years.
Certainly not perfect metric, but still somewhat valid for them. Ventures isn’t very big.

Jim

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