White Mountains Insurance Group's Q2 Performance Underwhelms Amid Industry Headwinds.

The London Company's Q2 2025 investor letter highlights White Mountains Insurance Group's (WTM) decline due to industry headwinds. Despite a double-digit gain in US stocks, WTM fell 0.6% (-0.8% net) vs. the Russell 2500 Index's 8.6% increase. The company's performance was attributed to sector allocation, while stock selection detracted. The letter remains confident in WTM's ability to deliver outsized growth in book value per share over time.

The London Company's second quarter 2025 investor letter provides a detailed analysis of the performance of White Mountains Insurance Group, Ltd. (WTM) and its place within the broader market landscape. Despite a double-digit gain in U.S. stocks during the quarter, WTM experienced a 0.6% decline, falling short of the Russell 2500 Index's 8.6% increase [1].

The London Company attributes WTM's underperformance to industry-specific headwinds rather than broader market trends. The company's sector allocation played a significant role in its performance, while stock selection detracted from the overall portfolio's gains. The London Company remains confident in WTM's ability to deliver outsized growth in book value per share over time, highlighting the company's potential for future growth [2].

White Mountains Insurance Group, Ltd. (WTM) is an insurance and financial services provider headquartered in Hamilton, Bermuda. The company's stock has shown resilience, with a one-month return of -0.34% and a 3.45% gain over the last 52 weeks. On July 28, 2025, WTM's stock closed at $1,789.56 per share, with a market capitalization of $4.606 billion [1].

The London Company's assessment of WTM's potential is tempered by the belief that certain AI stocks offer greater upside potential and carry less downside risk. However, the company acknowledges the potential of WTM as an investment, particularly for those interested in the financial services sector [2].

References:
[1] https://finance.yahoo.com/news/white-mountains-insurance-group-ltd-153207199.html
[2] https://uk.finance.yahoo.com/news/white-mountains-insurance-group-ltd-153207199.html