In the normal course of business, Ark may seek to limit losses that may arise from catastrophes or other events by reinsuring certain risks with third-party reinsurers. Ark remains liable for risks reinsured in the event that the reinsurer does not honor its obligations under reinsurance contracts.

The following table summarizes the effects of reinsurance on written and earned premiums and loss and LAE for the Ark/WM Outrigger segment for the three months ended March 31, 2025 and 2024:


Millions	Three Months Ended March 31,
		2025		2024
Written premiums:
Direct		$	416.8	$	285.0
Assumed		690.8		587.1
Gross written premiums		1,107.6		872.1
Ceded (1)		(379.9)		(274.1)
Net written premiums		$	727.7	$	598.0
Earned premiums:
Direct		$	246.3	$	194.4
Assumed		214.1		192.4
Gross earned premiums		460.4		386.8
Ceded (2)		(102.4)		(84.0)
Net earned premiums		$	358.0	$	302.8
Loss and LAE:
Gross		$	323.2	$	253.3
Ceded (3)		(89.7)		(73.3)
Net loss and LAE		$	233.5	$	180.0

(1) The three months ended March 31, 2025 and 2024 exclude $37.5 and $34.3 ceded by Ark to WM Outrigger Re, which eliminate in White Mountains’s consolidated financial statements.

(2) The three months ended March 31, 2025 and 2024 exclude $12.0 and $10.3, ceded by Ark to WM Outrigger Re, which eliminate in White Mountains’s consolidated financial statements.

(3) The three months ended March 31, 2025 and 2024 exclude $20.2 and $0.7, ceded by Ark to WM Outrigger Re, which eliminate in White Mountains’s consolidated financial statements.

The following table presents the Ark/WM Outrigger segment’s reinsurance recoverables as of March 31, 2025 and December 31, 2024:


Millions	March 31, 2025		December 31, 2024
Reinsurance recoverables on unpaid losses (1)	$	480.6	$	434.4
Reinsurance recoverables on paid losses (2)	65.4		57.5
Ceded unearned premiums (3)	374.4		97.1
Reinsurance recoverables	$	920.4	$	589.0

(1) The reinsurance recoverables on unpaid losses exclude $38.6 and $31.8 ceded by Ark to WM Outrigger Re as of March 31, 2025 and December 31, 2024, which eliminate in White Mountains’s consolidated financial statements.

(2) The reinsurance recoverables on paid losses exclude $1.7 and $3.1 ceded by Ark to WM Outrigger Re as of March 31, 2025 and December 31, 2024, which eliminate in White Mountains’s consolidated financial statements.

(3) The ceded unearned premiums exclude $29.8 and $4.3 ceded by Ark to WM Outrigger Re as of March 31, 2025 and December 31, 2024, which eliminate in White Mountains’s consolidated financial statements.

As reinsurance contracts do not relieve Ark of its obligation to its policyholders, Ark seeks to reduce the credit risk associated with reinsurance balances by avoiding over-reliance on specific reinsurers through the application of concentration limits and thresholds. Ark is selective with its reinsurers, placing reinsurance with only those reinsurers having a strong financial condition. Ark monitors the financial strength of its reinsurers on an ongoing basis.

The following table presents the Ark/WM Outrigger segment’s gross and net reinsurance recoverables by the reinsurers’ A.M. Best Company, Inc (“A.M. Best”) ratings as of March 31, 2025:


$ in Millions	As of March 31, 2025
A.M. Best Rating (1)	Gross		Collateral		Net		% of Total
A+ or better	$	336.9	$	—	$	336.9	73.9	%
A- to A	110.2		—		110.2		24.2
B++ or lower and not rated (2)	98.9		90.2		8.7		1.9
Total	$	546.0	$	90.2	$	455.8	100.0	%

(1) A.M. Best financial strength ratings as detailed above are: “A+ or better” (Superior) “A- to A” (Excellent), “B++” (Good).