time time – Now Wash Your Hands http://nowwashyourhands.com/ Thu, 10 Mar 2022 05:03:54 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://nowwashyourhands.com/wp-content/uploads/2021/07/icon-4.png time time – Now Wash Your Hands http://nowwashyourhands.com/ 32 32 USW says its sales contract was made at a key shipyard in Newport News, Va. https://nowwashyourhands.com/usw-says-its-sales-contract-was-made-at-a-key-shipyard-in-newport-news-va/ Thu, 10 Mar 2022 05:03:54 +0000 https://nowwashyourhands.com/usw-says-its-sales-contract-was-made-at-a-key-shipyard-in-newport-news-va/ Just before 6 a.m. Tuesday, the president of United Steelworkers Local 8888 sent an email to members announcing the ratification of a contract to sell Newport News Shipbuilding (NNS) in Newport News, Va. NNS is Virginia’s largest industrial employer, producing aircraft carriers and nuclear submarines for the United States Navy, and is a subsidiary of […]]]>

Just before 6 a.m. Tuesday, the president of United Steelworkers Local 8888 sent an email to members announcing the ratification of a contract to sell Newport News Shipbuilding (NNS) in Newport News, Va. NNS is Virginia’s largest industrial employer, producing aircraft carriers and nuclear submarines for the United States Navy, and is a subsidiary of one of the nation’s largest defense companies, Huntington Ingalls Industries.

Barely concealing his glee, Charles Spivey titled the email “Contract Ratified!” He called the vote “landmark” and said the contract – essentially unchanged from an earlier version, which rank-and-file workers rejected last November by more than 2 to 1 – had passed this time with 3,678 votes for and 533 against. While that’s true – and there’s widespread skepticism about the accuracy of the vote tally – the USW got its deal through with the votes of barely a third of its 10,000 members in the shipyard .

A Newport News Shipbuilding worker installs a pipe hanger in the Delaware Virginia-class submarine (HII Media)

In a “highlights” document sent to members on February 3, the union fraudulently claimed that “the agreement includes no concessions or discounts and provides for financial improvements, as well as improvements in pensions and benefits and benefits. ‘other provisions’. He added: “We are convinced that this agreement represents the best way forward and strongly encourage you to ratify it.”

Spivey bragged that the five-year deal “contains over $22,000 in fresh money based on a 40-hour week.” However, this figure fails to keep up with soaring inflation, currently at 7.5%. On top of that, the contract includes health care premium increases of 5% in 2024, 2025 and 2026. In other words, it was a “victory” for everyone – shareholders, union bureaucrats and warmongering politicians. – except workers.

Highlighting the connection between big business, the USW and the Democratic Party, Congressman Bobby Scott celebrated the news of an agreement by saying, “I congratulate USW Local 8888 President Spivey, and Newport News Shipbuilding President Boykin for coming together and reaching a hard-fought deal. for the benefit of the best shipbuilders in our country. As a representative of Newport News and chair of the House Committee on Education and Labor, I was very pleased to see Steelworkers Local 8888 ratify a new collective agreement that will cover more than 10,000 Newport workers. News Shipbuilding. This agreement means that our shipbuilders will be well paid and protected at work. Newport News shipbuilding remains a vital part of the Hampton Roads economy and an integral part of our Navy and national security.

Shipyard workers who spoke with the World Socialist Website had a different assessment. A relatively new worker said, “I’ve heard a lot of people say today ‘there’s no way [the vote count was accurate] but how can we prove it? She added that the pay raises “weren’t worth anything.”

“The contract is a shameful excuse for ‘collective bargaining’ and is quite similar to the contract originally offered last year which was rejected. And somehow this poll showed overwhelming support,” another worker said sarcastically.

]]>
Can your first credit card be a travel card? https://nowwashyourhands.com/can-your-first-credit-card-be-a-travel-card/ Wed, 02 Mar 2022 13:10:25 +0000 https://nowwashyourhands.com/can-your-first-credit-card-be-a-travel-card/ MMaybe you love to travel and the idea of ​​a shiny metallic card that gives you free flights is dazzling. Maybe you are a no-nonsense student planning to study abroad and have been looking for the “best travel credit card”. Or maybe you’re new to the US and have no credit history, but want to […]]]>

MMaybe you love to travel and the idea of ​​a shiny metallic card that gives you free flights is dazzling. Maybe you are a no-nonsense student planning to study abroad and have been looking for the “best travel credit card”. Or maybe you’re new to the US and have no credit history, but want to book international flights to visit family and old friends regularly without breaking the bank.

There is only one problem. You are a bit inexperienced. You’ve never had a credit card before.

The good news is that it’s never too early to get into the travel rewards game. The bad news is that a travel credit card might not be a smart move if you’ve never had a credit card before.

Either way, there are other steps you can take to start building up your credit and cache of points for nearly free flights and hotel stays. Here’s why your first credit card probably won’t be a travel credit card.

You’ve never had a credit card before. Can you get a travel credit card?

The short answer is probably no. Most travel credit cards require applicants to have a good to excellent credit score to be approved. Without credit cards or other previous lines of credit, your score probably won’t be high enough to qualify right off the bat.

You might also be too young. According to the Cards Act 2009, card issuers are not legally allowed to open accounts for people under 21 without an adult co-signer, unless the applicant can prove they can repay their debt. (usually a source of income). They want to make sure you’ll be able to repay them for your purchases before they start rewarding you.

But just because you don’t have a credit history doesn’t mean you can’t get a credit card or start earning points and miles for travel.

How to Build Your Credit to Get a Travel Credit Card

Get cash back or a student card

OK, so your first map won’t be the most popular travel map. It’s likely to be a more pragmatic card that can still teach good credit card management habits, not to mention give you some insight into what you want in your next card. After all, you’ll need to make sure you pay your credit card bill on time, every time, and know which categories you spend the most on so you can choose the best travel credit card for yourself down the road.

We’ve compiled a list of the best credit cards for students (including a choice for international students) and for people with No credit.

Pro tip: If you opt for a cashback card, budget for those returns for your travel purchases. It’s basically getting a free flight or accommodation.

No matter what type of credit card you get, you should pay your credit card bills monthly to avoid high interest rates. According to November 2021 data from the Federal Reserve, the average APR on credit card accounts is 14.51%.

Be added as an authorized user to a travel card

Another way to build credit is to get a credit card in your name from your parents or legal guardians. When you are added as an authorized user to their account, it will help you build your credit, but your parents or guardians will ultimately be responsible for the bill.

This method requires a lot of communication to establish informal rules about spending.

  • Make sure the primary cardholder pays their credit card bills on time so you don’t hurt your booming credit score.
  • Tell them how much and when you are allowed to spend on the card. Should it only be used in an emergency? Or are you allowed to put certain expenses, like books and school supplies, on the card?
  • Do you have to pay them back?

Note that any points or miles earned on authorized users’ cards will likely be deposited into the primary cardholder’s account. Would your parents or legal guardians be willing to book flights for you with the points you helped earn?

Pay off your student loans and auto loans on time

If you are already paying any type of loan, you are already building your credit score. Student loans and auto loans are just two types of installment loans and make up about 10% of your credit score. If you pay them on time, it will show that you have a good payment history, which accounts for 35% of your credit score – the biggest chunk.

Finally, the longer you have been paying them, the longer your credit history will be. That’s another 15% of your credit score. The remaining 30% of your credit score is based on your credit usage.

Ways to earn points and miles without a credit card

Until you get your first travel credit card, you can always progress to earn points and miles to redeem for free travel.

Join loyalty programs

Join the loyalty program of the airline or hotel you use (or want to use) the most. These programs are free and there is no age requirement, so some people are even starting to earn miles for flights they take as babies if their parents enroll them.

Since you don’t have a travel credit card, you will accumulate points more slowly. Depending on how often and where you fly, it may take you more than a year to earn enough points for an award flight. But since many points and miles don’t expire quickly, it’s okay to keep them.

Participate in shopping and dining programs

Earning points by traveling or staying in hotels is not the only way to earn points in travel loyalty programs. You can actually earn bonus points by signing up for your airline or hotel’s shopping program, like United MileagePlus Shopping, and buying things online that you would normally buy. Shopping portals partner with retailers you probably already shop at, like Target or Nike.

Pro Tip: Download the Shopping Program Internet browser extension to receive notifications reminding you to activate shopping offers and earn bonus points.

You can do the same with a loyalty program’s dining program. All you have to do is link your starter debit or credit card, and every time you use it to pay at a participating local restaurant, you’ll earn bonus points on your purchase.

Start earning miles with Lyft rides

If you rideshare with Lyft, linking your Lyft account to your Travel Rewards account is a great way to earn more points. Lyft is partnering with Delta and Hilton, so passengers can choose to win either or both.

You can earn 2 Delta SkyMiles per $1 spent on airport rides and 1 mile per $1 spent on all other Lyft rides in the US. With Hilton, you can earn 3 Hilton Honors Points per $1 spent on regular Lyft rides and 2 Hilton Honors Points per $1. spent on Lyft shared rides.

Strategize to get your first travel credit card

You’re unlikely to be approved for a travel credit card if you’ve never had a credit card before, as most require users to have good to excellent credit.

Build your credit first by becoming an authorized user, opening a cashback card, and repaying loans on time. You can potentially offset travel costs by applying cash back on flights or hotels. Plus, there’s no credit requirement to join an airline or hotel loyalty program and start earning points.

Your first credit card will show you the world of spending and earning possibilities, but you’ll need to know more about yourself – and your spending habits – before embarking on a long-term relationship with a credit card. of travel.

More from NerdWallet

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

]]>
WHITE MOUNTAINS INSURANCE GROUP LTD – 10-K – Management’s Discussion and Analysis of Financial Condition and Results of Operations https://nowwashyourhands.com/white-mountains-insurance-group-ltd-10-k-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations/ Tue, 01 Mar 2022 00:34:49 +0000 https://nowwashyourhands.com/white-mountains-insurance-group-ltd-10-k-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations/ The following discussion contains "forward-looking statements". White Mountains intends statements that are not historical in nature, which are hereby identified as forward-looking statements, to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. White Mountains cannot promise that its expectations in such forward-looking statements will turn out to […]]]>
The following discussion contains "forward-looking statements". White Mountains
intends statements that are not historical in nature, which are hereby
identified as forward-looking statements, to be covered by the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. White
Mountains cannot promise that its expectations in such forward-looking
statements will turn out to be correct. White Mountains's actual results could
be materially different from and worse than its expectations. See
"FORWARD-LOOKING STATEMENTS" on page 97 for specific important factors that
could cause actual results to differ materially from those contained in
forward-looking statements.
The following discussion also includes thirteen non-GAAP financial measures: (i)
adjusted book value per share, (ii) growth in adjusted book value per share
excluding net realized and unrealized investment losses from White Mountains's
investment in MediaAlpha, (iii) BAM's gross written premiums and MSC from new
business, (iv) Ark's adjusted loss and loss adjustment expense ratio, (v) Ark's
adjusted insurance acquisition expense ratio, (vi) Ark's adjusted other
underwriting expense ratio, (vii) Ark's adjusted combined ratio, (viii) NSM's
earnings before interest, taxes, depreciation and amortization ("EBITDA"), (ix)
NSM's adjusted EBITDA, (x) Kudu's EBITDA, (xi) Kudu's adjusted EBITDA, (xii)
total consolidated portfolio returns excluding MediaAlpha and (xiii) adjusted
capital, that have been reconciled from their most comparable GAAP financial
measures on page 71. White Mountains believes these measures to be useful in
evaluating White Mountains's financial performance and condition.

RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019
Overview-Year Ended December 31, 2021 versus Year Ended December 31, 2020
White Mountains ended 2021 with book value per share of $1,176 and adjusted book
value per share of $1,190, a decrease of 6.5% and 5.7% in the year, including
dividends. Comprehensive (loss) income attributable to common shareholders was
$(273) million in 2021 compared to $716 million in 2020. The results in 2021
included $380 million of net realized and unrealized investment losses from
White Mountains's investment in MediaAlpha. Excluding net realized and
unrealized investment losses from White Mountains's investment in MediaAlpha,
adjusted book value per share increased 4.3% in 2021, including dividends,
reflecting strong results within White Mountains's operating businesses. The
results in 2020 included $746 million of net investment income and net realized
and unrealized investment gains from White Mountains's investment in MediaAlpha.
The results in 2020 also included $131 million from the release of a deferred
tax liability as a result of an internal reorganization in connection with the
MediaAlpha IPO.
At the December 31, 2021 closing price of $15.44 per share, which was down from
$39.07 at December 31, 2020, the value of White Mountains's investment in
MediaAlpha was $262 million, which was down from $802 million at December 31,
2020. Based on White Mountains's ownership of 16.9 million shares of MediaAlpha
as of December 31, 2021, each $1.00 per share increase or decrease in the stock
price of MediaAlpha will result in an approximate $5.65 per share increase or
decrease in White Mountains's book value per share and adjusted book value per
share. On March 23, 2021, MediaAlpha completed a secondary offering of 8.05
million shares at $46.00 per share ($44.62 per share net of underwriting fees).
In the secondary offering, White Mountains sold 3.6 million shares for net
proceeds of $160 million.
White Mountains capital base was, more or less, fully deployed at the end of
2020 with approximately $150 million of undeployed capital. During 2021, White
Mountains repurchased and retired 98,511 of its common shares for $108 million.
This was more than offset by (i) the $160 million of net proceeds from the
MediaAlpha secondary offering and (ii) the termination of White Mountains
commitment to provide up to $200 million of additional equity capital to Ark as
a result of Ark raising $163 million in new subordinated debt during the third
quarter. As a result, White Mountains finished 2021 with approximately $400
million of undeployed capital.
In the HG Global/BAM segment, gross written premiums and MSC collected totaled
$118 million in 2021 compared to $131 million in 2020. Total pricing was 67
basis points in 2021 compared to 76 basis points in 2020. BAM insured municipal
bonds with par value of $17.5 billion in 2021 compared to $17.3 billion in 2020.
During 2021, BAM completed an assumed reinsurance transaction to insure
municipal bonds with a par value of $806 million. During 2020, BAM completed an
assumed reinsurance transaction to insure municipal bonds with a par value of
$37 million.
In December 2021, BAM made a $34 million cash payment of principal and interest
on the BAM Surplus Notes held by HG Global. In December 2020, BAM made a $30
million cash payment of principal and interest on the BAM Surplus Notes held by
HG Global. In January 2020, BAM made a one-time $65 million cash payment of
principal and interest on the BAM Surplus Notes held by HG Global. BAM's total
claims paying resources were $1,192 million as of December 31, 2021 compared to
$987 million as of December 31, 2020. During 2021, BAM completed a reinsurance
agreement with Fidus Re that increased BAM's claims paying resources by $150
million.

                                       39
--------------------------------------------------------------------------------

On January 1, 2021, White Mountains closed the Ark Transaction. Ark's GAAP
combined ratio was 87% in 2021. Ark's adjusted combined ratio, which adds back
amounts ceded to TPC Providers, was 85% in 2021. The adjusted combined ratio in
2021 included 10 points of catastrophe losses and six points of net favorable
prior year reserve development. Ark reported gross written premiums of $1,059
million, net written premiums of $859 million and net earned premiums of $637
million in 2021. Ark reported pre-tax income of $53 million in 2021, which
reflected $25 million of transaction expenses related to the Ark Transaction. In
the January 2022 renewal season, Ark wrote gross written premiums in excess of
$500 million.
NSM reported commission and other revenues of $330 million, pre-tax loss of $28
million and adjusted EBITDA of $71 million in 2021 compared to commission and
other revenues of $285 million, pre-tax loss of $13 million and adjusted EBITDA
of $59 million in 2020. On April 12, 2021, NSM sold its Fresh Insurance motor
business, which resulted in a loss of $29 million recorded in the first quarter
of 2021. Results in 2021 include the results of J.C. Taylor from August 6, 2021,
the date of its acquisition. Results in 2021 and 2020 include the results of
Kingsbridge from April 7, 2020, the date of its acquisition.
Kudu reported total revenues of $134 million, pre-tax income of $108 million and
adjusted EBITDA of $33 million in 2021 compared to total revenues of $46
million, pre-tax income of $28 million and adjusted EBITDA of $22 million in
2020. Total revenues and pre-tax income included $22 million of realized gains
and $68 million of unrealized gains on Kudu's Participation Contracts in 2021
compared to $16 million of unrealized gains on Kudu's Participation Contracts in
2020. Kudu deployed $225 million, including transaction costs, in six asset
management firms in 2021. As of December 31, 2021, Kudu had deployed $612
million in 17 asset and wealth management firms globally, including one that was
exited. As of December 31, 2021, the asset and wealth management firms have
combined assets under management of approximately $66 billion, spanning a range
of asset classes, including real estate, real assets, wealth management, hedge
funds, private equity and alternative credit strategies.
White Mountains's pre-tax total consolidated portfolio return on invested assets
was -3.4% in 2021. This return included $380 million of net realized and
unrealized investment losses from White Mountains's investment in MediaAlpha.
Excluding MediaAlpha, the total consolidated portfolio return on invested assets
was 6.4% in 2021. Excluding MediaAlpha, investment returns in 2021 were driven
primarily by favorable other long-term investments results.
White Mountains's pre-tax total consolidated portfolio return on invested assets
was 31.9% in 2020. This return included $746 million of net investment income
and net realized and unrealized investment gains from White Mountains's
investment in MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio
return on invested assets was 4.6% in 2020. Excluding MediaAlpha, investment
returns in 2020 were impacted by White Mountains's decision to liquidate its
portfolio of common equity securities in the second half of 2020 in preparation
for funding the Ark Transaction as equity markets rallied in the fourth quarter.

Overview-Year Ended December 31, 2020 versus Year Ended December 31, 2019
White Mountains ended 2020 with book value per share of $1,259 and adjusted book
value per share of $1,264, an increase of 23.1% and 24.2% in the year, including
dividends. Comprehensive income (loss) attributable to common shareholders was
$716 million in 2020 compared to $413 million in 2019. The results in 2020
included $746 million of net investment income and net realized and unrealized
investment gains from White Mountains's investment in MediaAlpha. The results in
2020 also included $131 million from the release of a deferred tax liability as
a result of an internal reorganization in connection with the MediaAlpha IPO.
The results in 2019 included $256 million of net investment income, realized
gains and net unrealized investment gains from White Mountains's investment in
MediaAlpha, $182 million of which was from the 2019 MediaAlpha Transaction.
On October 30, 2020, MediaAlpha completed the MediaAlpha IPO. In the offering,
White Mountains sold 3.6 million shares and received total proceeds of $64
million. Following the MediaAlpha IPO, White Mountains owned 20.5 million
MediaAlpha shares. At the December 31, 2020 MediaAlpha closing price of $39.07
per share, the value of White Mountains's remaining investment in MediaAlpha was
$802 million.
On October 1, 2020, White Mountains entered into a subscription and purchase
agreement (the "Ark SPA") with Ark and certain selling shareholders
(collectively with Ark, the "Ark Sellers"). Under the terms of the Ark SPA,
White Mountains agreed to contribute $605 million of equity capital to Ark, at a
pre-money valuation of $300 million, and to purchase $41 million of shares from
the Ark Sellers. White Mountains also agreed to contribute up to an additional
$200 million of equity capital to Ark in 2021. In accordance with the Ark SPA,
in the fourth quarter of 2020 White Mountains pre-funded/placed in escrow a
total of $646 million in preparation for closing the transaction, which is
reflected on the balance sheet within the Other Operations segment as of
December 31, 2020.

                                       40
--------------------------------------------------------------------------------

On January 1, 2021, White Mountains closed the Ark Transaction in accordance
with the terms of the Ark SPA. At closing, White Mountains owned 72.0% of Ark on
a basic shares outstanding basis (63.0% after taking account of management's
equity incentives). Management's equity incentives are subject to an 8% rate of
return threshold with no catch-up. The remaining shares are owned by employees.
In the future, management rollover shareholders could earn additional shares in
Ark if and to the extent that White Mountains achieves certain multiple of
invested capital return thresholds. These additional shares are generally
eligible to vest in three equal tranches at multiple on invested capital
("MOIC") thresholds of 2.0x, 2.5x and 3.0x. If fully earned, these additional
shares would represent 13% of the shares outstanding at closing.
In the January 2021 renewal season, Ark wrote gross written premiums in excess
of $270 million.
During 2020, White Mountains deployed approximately $1.0 billion in new business
opportunities, including commitments related to the Ark Transaction, which
closed on January 1, 2021. Also during 2020, White Mountains repurchased and
retired 99,087 of its common shares for $85 million. As a result, White
Mountains's capital base was, more or less fully deployed at the end of 2020
with approximately $150 million of undeployed capital.
Gross written premiums and MSC collected in the HG Global/BAM segment totaled
$131 million in 2020 compared to $107 million in 2019. Total pricing was 76
basis points in 2020 compared to 83 basis points in 2019. BAM insured municipal
bonds with par value of $17.3 billion in 2020 compared to $12.8 billion in 2019.
During 2020, BAM completed an assumed reinsurance transaction to insure
municipal bonds with a par value of $37 million. During 2019, BAM completed an
assumed reinsurance transaction to insure municipal bonds with a par value of
$1.1 billion.
In December 2020, BAM made a $30 million cash payment of principal and interest
on the BAM Surplus Notes held by HG Global. In January 2020, BAM made a one-time
$65 million cash payment of principal and interest on the BAM Surplus Notes held
by HG Global. In December 2019, BAM made a $32 million cash payment (which
included a one-time $10 million cash payment) of principal and interest on the
BAM Surplus Notes held by HG Global. BAM's total claims paying resources were
$987 million as of December 31, 2020 compared to $938 million as of December 31,
2019.
NSM reported commission and other revenues of $285 million, pre-tax loss of $13
million and adjusted EBITDA of $59 million in 2020 compared to commission and
other revenues of $233 million, pre-tax loss of $2 million and adjusted EBITDA
of $48 million in 2019. Results in the year ended December 31, 2020 include the
results of Kingsbridge from April 7, 2020, the date of its acquisition. Results
in the years ended December 31, 2020 and 2019 include the results of Embrace, a
nationwide provider of pet health insurance for dogs and cats, from April 1,
2019, the date of its acquisition.
Kudu reported total revenues of $46 million, pre-tax income of $28 million and
adjusted EBITDA of $22 million in 2020 compared to total revenues of $21
million, pre-tax income of $11 million and adjusted EBITDA of $9 million for the
period from April 4, 2019, the date of the Kudu Transaction, through December
31, 2019. Total revenues and pre-tax income included $16 million of unrealized
gains on Kudu's Participation Contracts in 2020 compared to $6 million in the
period from April 4, 2019 to December 31, 2019. Kudu deployed $121 million,
including transaction costs, in five asset management firms in 2020. As of
December 31, 2020, Kudu had deployed a total of $386 million, including
transaction costs, in 13 asset management firms with combined assets under
management of approximately $45 billion.
White Mountains's pre-tax total return on invested assets was 31.9% in 2020.
This return included $746 million of net investment income and net realized and
unrealized investment gains from MediaAlpha. Excluding MediaAlpha, the total
return on invested assets was 4.6% in 2020. Investment returns in 2020 were
impacted by White Mountains's decision to liquidate its portfolio of common
equity securities in the second half of 2020 in preparation for funding the Ark
Transaction as equity markets rallied in the fourth quarter.
White Mountains's pre-tax total return on invested assets was 20.4% in 2019.
This return included $188 million of net investment income and net unrealized
investment gains from MediaAlpha. Excluding MediaAlpha, the total return on
invested assets was 13.0% in 2019. Investment returns in 2019 benefited from
White Mountains's decision to increase equity exposure after markets declined
sharply at the end of 2018 ahead of the strong rally in equity markets during
2019.

                                       41
--------------------------------------------------------------------------------

Adjusted book value per share

The following table presents White Mountains's adjusted book value per share, a
non-GAAP financial measure, as of December 31, 2021, 2020 and 2019 and
reconciles this non-GAAP measure to book value per share, the most comparable
GAAP measure. See "NON-GAAP FINANCIAL MEASURES" on page 71.

                                                                         

the 31st of December,

                                                             2021            2020            2019
Book value per share numerators (in millions):
White Mountains's common shareholders' equity -
 GAAP book value per share numerator                     $  3,548.1      $  3,906.0      $  3,261.5
Time-value of money discount on expected future
payments
  on the BAM Surplus Notes (1)                               (125.9)         (142.5)         (151.6)
HG Global's unearned premium reserve (1)                      214.6           190.0           156.7
HG Global's net deferred acquisition costs (1)                (60.8)          (52.4)          (41.5)
Adjusted book value per share numerator                  $  3,576.0      $  3,901.1      $  3,225.1
Book value per share denominators (in thousands of
shares):
Common shares outstanding - GAAP book value per share
denominator                                                 3,017.8         3,102.0         3,185.4
Unearned restricted common shares                             (13.7)          (14.8)          (18.5)
Adjusted book value per share denominator                   3,004.1         3,087.2         3,166.9
GAAP book value per share                                $ 1,175.73      $ 1,259.18      $ 1,023.91
Adjusted book value per share                            $ 1,190.39      $ 1,263.64      $ 1,018.41
Year-to-date dividends paid per share                    $     1.00      $  

1.00 $1.00

(1) Amounts reflect The White Mountains preferred shareholding in HG Global of
96.9%.

Good will and other intangible assets

Advertising

The following tables presents goodwill and other intangible assets that are
included in White Mountains's adjusted book value as of December 31, 2021, 2020
and 2019:

                                                                            December 31,
Millions                                                           2021         2020         2019
Goodwill:
Ark                                                             $  116.8      $     -      $     -
NSM                                                                503.2        506.4        381.6
Kudu                                                                 7.6          7.6          7.6
Other Operations                                                    17.9         11.5          5.5
Total goodwill                                                     645.5        525.5        394.7
Other intangible assets:
Ark                                                                175.7            -            -
NSM                                                                222.2        230.4        241.4
Kudu                                                                 1.3          1.6          2.0
Other Operations                                                    21.2         24.9         16.6
Total other intangible assets                                      420.4        256.9        260.0
Total goodwill and other intangible assets (1)                   1,065.9    

782.4 654.7

Total allocated goodwill and other intangible assets
not controlling

  interests                                                       (117.6)   

(28.1) (23.4)
Total goodwill and other intangible assets included in White
mountains

  common shareholders' equity                                   $  948.3    

$754.3 $631.3

(1) See Note 4 – “Good will and other intangible assets” on page F-32 for more details
other intangible assets.



                                       42
--------------------------------------------------------------------------------

Summary of consolidated results

The following table shows The White Mountains consolidated financial results by
industry for years ended December 31, 20212020 and 2019:

                                                                    Year Ended December 31,
Millions                                                        2021           2020         2019
Revenues
Financial Guarantee revenues                                 $    23.0      $   68.5      $  66.6
P&C Insurance and Reinsurance revenues                           668.5             -            -
Specialty Insurance Distribution revenues                        330.4         285.1        233.1
Asset Management revenues                                        134.0          45.7         21.2
Marketing Technology revenues                                        -             -         48.8
Other Operations revenues                                       (211.1)        781.4        523.7
Total revenues                                                   944.8       1,180.7        893.4
Expenses
Financial Guarantee expenses                                      65.4          63.8         56.6
P&C Insurance and Reinsurance expenses                           615.6             -            -
Specialty Insurance Distribution expenses                        358.5         297.7        235.2
Asset Management expenses                                         26.5          18.1         10.4
Marketing Technology expenses                                        -             -         54.9
Other Operations expenses                                        180.8         155.9        131.2
Total expenses                                                 1,246.8         535.5        488.3
Pre-tax income (loss)
Financial Guarantee pre-tax income (loss)                        (42.4)          4.7         10.0
P&C Insurance and Reinsurance pre-tax income (loss)               52.9             -            -
Specialty Insurance Distribution pre-tax income (loss)           (28.1)        (12.6)        (2.1)
Asset Management, pre-tax income (loss)                          107.5          27.6         10.8
Marketing Technology pre-tax income (loss)                           -             -         (6.1)
Other Operations pre-tax income (loss)                          (391.9)        625.5        392.5
Total pre-tax income (loss)                                     (302.0)        645.2        405.1
Income tax (expense) benefit                                     (38.6)         20.5        (29.3)
Net income (loss) from continuing operations                    (340.6)     

665.7 375.8

 Gain (loss) on sale of discontinued operations, net of
tax                                                               18.7          (2.3)          .8

Net income (loss)                                               (321.9)        663.4        376.6
Net (income) loss attributable to non-controlling
interests                                                         46.5      

45.3 37.9
Net income (loss) attributable to The White Mountains
ordinary shareholders

                                             (275.4)        708.7        414.5
Other comprehensive income (loss), net of tax                      1.9      

7.3 (1.4)

Comprehensive income (loss)                                     (273.5)        716.0        413.1
Comprehensive (income) loss attributable to
non-controlling interests                                           .2           (.5)           -
Comprehensive income (loss) attributable to White
Mountains's
  common shareholders                                        $  (273.3)     $  715.5      $ 413.1





                                       43
--------------------------------------------------------------------------------

I. Summary of operations by segment

As of December 31, 2021, White Mountains conducted its operations through five
segments: (1) HG Global/BAM, (2) Ark, (3) NSM, (4) Kudu and (5) Other
Operations. In addition, MediaAlpha was consolidated as a reportable segment
until the date of the 2019 MediaAlpha Transaction. A discussion of White
Mountains's consolidated investment operations is included after the discussion
of operations by segment. White Mountains's segment information is presented in
Note 16 - "Segment Information" on page F-68.
As a result of the Ark Transaction, White Mountains began consolidating Ark in
its financial statements as of January 1,
2021. See Note 2 - "Significant Transactions" on page F-17.
As a result of the Kudu Transaction, White Mountains began consolidating Kudu in
its financial statements in the second quarter of 2019. White Mountains's
segment disclosures for the year ended December 31, 2019 include Kudu's results
of operations for the period from April 4, 2019, the date of the Kudu
Transaction, to December 31, 2019. See Note 2 - "Significant Transactions" on
page F-17
As a result of the 2019 MediaAlpha Transaction, White Mountains no longer
consolidated MediaAlpha, and consequently it was no longer a reportable segment.
White Mountains's segment disclosures for the year ended December 31, 2019
include MediaAlpha's results of operations for the period from January 1, 2019
to February 26, 2019, the date of the 2019 MediaAlpha Transaction. See Note 2 -
"Significant Transactions" on page F-17.

HG Global/BAM

The following tables present the components of pre-tax income (loss) included in
White Mountains's HG Global/BAM segment related to the consolidation of HG
Global, which includes HG Re and its other wholly-owned subsidiaries, and BAM
for the years ended December 31, 2021, 2020 and 2019:

                                                                                     December 31, 2021
Millions                                                     HG Global            BAM            Eliminations            Total
Direct written premiums                                    $        -          $  51.2          $          -          $   51.2
Assumed written premiums                                         47.6              4.6                 (47.6)              4.6
Gross written premiums                                           47.6             55.8                 (47.6)             55.8
Ceded written premiums                                              -            (47.6)                 47.6                 -
Net written premiums                                       $     47.6          $   8.2          $          -          $   55.8

Earned insurance and reinsurance premiums                  $     22.2       

$4.7 $- $26.9

Net investment income (loss)                                      7.2             10.3                     -              17.5
Net investment income (loss) - BAM Surplus Notes                 12.0                -                 (12.0)                -
Net realized and unrealized investment gains
(losses)                                                        (13.7)            (9.2)                    -             (22.9)
Other revenues                                                     .5              1.0                     -               1.5
Total revenues                                                   28.2              6.8                 (12.0)             23.0
Insurance and reinsurance acquisition expenses                    5.7              2.6                     -               8.3

General and administrative expenses                               2.0             55.1                     -              57.1
Interest expense - BAM Surplus Notes                                -             12.0                 (12.0)                -
Total expenses                                                    7.7             69.7                 (12.0)             65.4
Pre-tax income (loss)                                      $     20.5          $ (62.9)         $          -          $  (42.4)
Supplemental information:
MSC collected (1)                                          $        -          $  62.2          $          -          $   62.2

(1) The MSCs collected are recognized directly in BAM’s equity, which is recognized in
non-controlling interest over The White Mountains balance sheet.

                                       44
--------------------------------------------------------------------------------

                                                                                      December 31, 2020
Millions                                                      HG Global            BAM            Eliminations           Total
Direct written premiums                                     $        -          $  61.5          $          -          $  61.5
Assumed written premiums                                          53.0               .2                 (53.0)              .2
Gross written premiums                                            53.0             61.7                 (53.0)            61.7
Ceded written premiums                                               -            (53.0)                 53.0                -
Net written premiums                                        $     53.0          $   8.7          $          -          $  61.7

Earned insurance and reinsurance premiums                   $     18.7      

$4.1 $- $22.8
Net investment income (loss)

                                       7.8             11.7                     -             19.5
Net investment income (loss) - BAM Surplus Notes                  18.8                -                 (18.8)               -
Net realized and unrealized investment gains (losses)             11.8             11.9                     -             23.7
Other revenues                                                      .3              2.2                     -              2.5
Total revenues                                                    57.4             29.9                 (18.8)            68.5
Insurance and reinsurance acquisition expenses                     4.7              2.3                     -              7.0

General and administrative expenses                                2.6             54.2                     -             56.8
Interest expense - BAM Surplus Notes                                 -             18.8                 (18.8)               -
Total expenses                                                     7.3             75.3                 (18.8)            63.8
Pre-tax income (loss)                                       $     50.1          $ (45.4)         $          -          $   4.7
Supplemental information:
MSC collected (1)                                           $        -          $  68.9          $          -          $  68.9

(1) The MSCs collected are recognized directly in BAM’s equity, which is recognized in
non-controlling interest over The White Mountains balance sheet.

                                                                                     December 31, 2019
Millions                                                    HG Global            BAM             Eliminations            Total
Direct written premiums                                   $        -          $  28.1    (2)    $          -          $   28.1
Assumed written premiums                                        33.6             10.6                  (33.6)             10.6
Gross written premiums                                          33.6             38.7                  (33.6)             38.7
Ceded written premiums                                             -            (33.6)   (2)            33.6                 -
Net written premiums                                      $     33.6          $   5.1           $          -          $   38.7

Earned insurance and reinsurance premiums                 $     13.1          $   3.2           $          -          $   16.3
Net investment income (loss)                                     7.5             14.1                      -              21.6
Net investment income (loss) - BAM Surplus Notes                27.4                -                  (27.4)                -
Net realized and unrealized investment losses                   11.0             16.1                      -              27.1
Other revenues                                                     -              1.6                      -               1.6
Total revenues                                                  59.0             35.0                  (27.4)             66.6
Insurance and reinsurance acquisition expenses                   3.3              2.4                      -               5.7

General and administrative expenses                              1.6             49.3                      -              50.9
Interest expense - BAM Surplus Notes                               -             27.4                  (27.4)                -
Total expenses                                                   4.9             79.1                  (27.4)             56.6
Pre-tax income (loss)                                     $     54.1          $ (44.1)          $          -          $   10.0
Supplemental information:
MSC collected (1) (2)                                     $        -          $  68.0           $          -          $   68.0


(1) MSC collected are recorded directly to BAM's equity, which is recorded as
non-controlling interest on White Mountains's balance sheet.
(2) During 2019, BAM issued policy endorsements for certain policies issued in
periods prior to the second quarter of 2018. The impact of the policy
endorsements for the year ended December 31, 2019 was a decrease to BAM's gross
written premiums of $13.4 and an increase to MSC collected of $13.4.

                                       45
--------------------------------------------------------------------------------

HG Global/BAM Results-Year Ended December 31, 2021 versus Year Ended
December 31, 2020
BAM is required to prepare its financial statements on a statutory accounting
basis for the NYDFS and does not report stand-alone GAAP financial results. BAM
is owned by its members, the municipalities that purchase BAM's insurance for
their debt issuances. BAM charges an insurance premium on each municipal bond
insurance policy it writes. A portion of the premium is MSC and the remainder is
a risk premium. In the event of a municipal bond refunding, a portion of the MSC
from original issuance can be reutilized, in effect serving as a credit against
the total insurance premium on the refunding of the municipal bond.
Gross written premiums and MSC collected in the HG Global/BAM segment totaled
$118 million and $131 million in 2021 and 2020. BAM insured $17.5 billion of
municipal bonds, $15.6 billion of which were in the primary market, in 2021
compared to $17.3 billion of municipal bonds, $15.3 billion of which were in the
primary market, in 2020. During 2021, BAM completed an assumed reinsurance
transaction to insure municipal bonds with a par value of $806 million. During
2020, BAM completed an assumed reinsurance transaction to insure municipal bonds
with a par value of $37 million. Demand remained strong for insured bonds in the
primary market, as insured penetration in the primary market was 8.1% in 2021
compared to 7.6% in 2020.
Total pricing, which reflects both gross written premiums and MSC from new
business, decreased to 67 basis points in 2021 compared to 76 basis points in
2020. See "NON-GAAP FINANCIAL MEASURES" on page 71. The decrease in total
pricing was driven primarily by a decrease in pricing and the amount of par
insured in the secondary market during 2021, partially offset by the assumed
reinsurance transaction in the first quarter of 2021. Additionally, during 2021
BAM wrote more higher credit quality business, which can pressure absolute
pricing but, at the same time, improve risk-adjusted pricing. Pricing in the
primary market decreased to 57 basis points in 2021 compared to 59 basis points
in 2020, driven primarily by a decrease in credit spreads. Pricing in the
secondary and assumed reinsurance markets, which is more transaction-specific
than pricing in the primary market, decreased to 155 basis points in 2021
compared to 197 basis points in 2020.
The following table presents the gross par value of primary and secondary market
policies issued, the gross par value of assumed reinsurance, the gross written
premiums and MSC collected and total pricing for the years ended December 31,
2021 and 2020:

                                                                        Year Ended December 31,
$ in Millions                                                           2021                 2020

Gross par value of primary market policies issued                 $    15,560.8          $ 15,279.6
Gross par value of secondary market policies issued                     1,118.9             2,022.9
Gross par value of assumed reinsurance                                    805.5                36.9
Total gross par value of market policies issued                   $    17,485.2          $ 17,339.4
Gross written premiums                                            $        55.6          $     61.7
MSC collected                                                              62.2                68.9
Total gross written premiums and MSC collected                    $       117.8          $    130.6
Present value of future installment MSC collections                           -                  .3

Adjustments to gross written premiums on existing payment
Strategies

                                                                     .2                  .4
Gross written premiums and MSC from new business (1)              $       118.0          $    131.3
Total pricing                                                               67 bps              76 bps

(1) See “NON-GAAP FINANCIAL MEASURES” on page 71.

HG Global reported pre-tax income of $21 million in 2021 compared to $50 million
in 2020. The decrease in pre-tax income was driven primarily by lower investment
returns on the HG Global investment portfolio and a decrease in interest income
on the BAM Surplus Notes. HG Global's results in 2021 included $12 million of
interest income on the BAM Surplus Notes compared to $19 million in 2020.
BAM is a mutual insurance company that is owned by its members. BAM's results
are consolidated into White Mountains's GAAP financial statements and attributed
to non-controlling interests. White Mountains reported pre-tax loss from BAM of
$63 million in 2021 compared to $45 million in 2020. The increase in the pre-tax
loss was driven primarily by lower investment returns on the BAM investment
portfolio partially offset by a decrease in interest expense on the BAM surplus
notes. BAM's results included $12 million of interest expense on the BAM Surplus
Notes and $55 million of general and administrative expenses in 2021 compared to
$19 million of interest expense on the BAM Surplus Notes and $54 million of
general and administrative expenses in 2020.

                                       46
--------------------------------------------------------------------------------

In December 2021, BAM made a $34 million cash payment of principal and interest
on the BAM Surplus Notes held by HG Global. Of this payment, $24 million was a
repayment of principal held in the Supplemental Trust and $10 million was a
payment of accrued interest held outside the Supplemental Trust.
In December 2020, BAM made a $30 million cash payment of principal and interest
on the BAM Surplus Notes held by HG Global. Of this payment, $22 million was a
repayment of principal held in the Supplemental Trust and $8 million was a
payment of accrued interest held outside the Supplemental Trust.
In January 2020, BAM made a one-time $65 million cash payment of principal and
interest on the BAM Surplus Notes held by HG Global. Of this payment,
$48 million was a repayment of principal held in the Supplemental Trust,
$1 million was a payment of accrued interest held in the Supplemental Trust and
$16 million was a payment of accrued interest held outside the Supplemental
Trust.
As of December 31, 2021, White Mountains's debt service model indicated that the
BAM Surplus Notes would be fully repaid between six and seven years prior to
final maturity, which is generally consistent with the results of the update of
the debt service model as of December 31, 2020.
Through the COVID-19 pandemic, BAM's portfolio has performed well. All
BAM-insured bond payments due
through February 15, 2022 have been made by insureds, and there are no credits
on BAM's watchlist.

HG Global/BAM Results-Year Ended December 31, 2020 versus Year Ended
December 31, 2019
Gross written premiums and MSC collected in the HG Global/BAM segment totaled
$131 million and $107 million in 2020 and 2019. BAM insured $17.3 billion of
municipal bonds, $15.3 billion of which were in the primary market, in 2020
compared to $12.8 billion of municipal bonds, $10.4 billion of which were in the
primary market, in 2019. During 2020, BAM completed assumed reinsurance
transactions to insure municipal bonds with a par value of $37 million. During
2019, BAM completed assumed reinsurance transactions to insure municipal bonds
with a par value of $1.1 billion. Demand increased for insured bonds in the
primary market as a result of the COVID-19 pandemic, as insured penetration in
the primary market was 7.6% in 2020 compared to 5.9% in 2019.
Total pricing, which reflects both gross written premiums and MSC from new
business, decreased to 76 basis points in 2020 compared to 83 basis points in
2019. See "NON-GAAP FINANCIAL MEASURES" on page 71. The mix of business impacted
2020 total pricing as BAM wrote proportionally more lower-priced primary
business and less higher-priced secondary market and assumed reinsurance
business. Additionally, during 2020 BAM wrote more higher credit quality
business, which can pressure absolute pricing but, at the same time, improve
risk-adjusted pricing. Pricing in the primary market increased to 59 basis
points in 2020 compared to 51 basis points in 2019, driven primarily by
increased demand for insurance and wider credit spreads as a result of the
COVID-19 pandemic. Pricing in the secondary and assumed reinsurance markets,
which is more transaction-specific than pricing in the primary market, decreased
to 197 basis points in 2020 compared to 219 basis points in 2019.
The following table presents the gross par value of primary and secondary market
policies issued, the gross par value of assumed reinsurance, the gross written
premiums and MSC collected and total pricing for the years ended December 31,
2020 and 2019:

                                                                        Year Ended December 31,
$ in Millions                                                          2020                  2019

Gross par value of primary market policies issued                $    15,279.6          $  10,405.1
Gross par value of secondary market policies issued                    2,022.9              1,311.8
Gross par value of assumed reinsurance                                    36.9              1,130.7
Total gross par value of market policies issued                  $    17,339.4          $  12,847.6
Gross written premiums                                           $        61.7    (2)   $      38.7
MSC collected                                                             68.9    (2)          68.0
Total gross written premiums and MSC collected                   $       130.6          $     106.7
Present value of future installment MSC collections                         .3                   .3

Adjustments to gross written premiums on existing payment
Strategies

                                                                    .4                  (.1)
Gross written premiums and MSC from new business (1)             $       131.3          $     106.9
Total pricing                                                              76 bps               83 bps


(1) See "NON-GAAP FINANCIAL MEASURES" on page 71.
(2) During 2019, BAM issued policy endorsements for certain policies issued in
periods prior to the second quarter of 2018. The impact of the policy
endorsements for the year ended December 31, 2019 was a decrease to BAM's gross
written premiums of $13.4 and an increase to MSC collected of $13.4.

                                       47
--------------------------------------------------------------------------------

HG Global reported pre-tax income of $50 million in 2020 compared to $54 million
in 2019. The decrease in pretax income was driven primarily by a decrease in
interest income on the BAM Surplus Notes partially offset by an increase in
income from insurance operations. HG Global's results in 2020 included $19
million of interest income on the BAM Surplus Notes compared to $27 million in
2019.
White Mountains reported pre-tax loss from BAM of $45 million in 2020 compared
to $44 million in 2019. The increase in the pre-tax loss was driven primarily by
lower investment returns on the BAM investment portfolio and higher general and
administrative expenses partially offset by a decrease in interest expense on
BAM surplus notes. BAM's results included $19 million of interest expense on the
BAM Surplus Notes and $54 million of general and administrative expenses in 2020
compared to $27 million of interest expense on the BAM Surplus Notes and $49
million of general and administrative expenses in 2019.
In December 2020, BAM made a $30 million cash payment of principal and interest
on the BAM Surplus Notes held by HG Global. Of this payment, $22 million was a
repayment of principal held in the Supplemental Trust and $8 million was a
payment of accrued interest held outside the Supplemental Trust.
In January 2020, HG Global and BAM agreed to amend the BAM Surplus Notes to
extend the end of the variable interest rate period from 2021 to 2024, to extend
the initial 10-year term of the FLRT to the end of 2022 and to enter into the
XOLT. See "HG Global/BAM - Reinsurance Treaties" on page F-58. In connection
with these actions, and reflecting changes in Standard & Poor's insurance rating
methodology, in January 2020, BAM made a one-time $65 million cash payment of
principal and interest on the BAM Surplus Notes held by HG Global. Of this
payment, $48 million was a repayment of principal held in the Supplemental
Trust, $1 million was a payment of accrued interest held in the Supplemental
Trust and $16 million was a payment of accrued interest held outside the
Supplemental Trust.
In December 2019, BAM made a $32 million cash payment (which included a one-time
$10 million cash payment) of principal and interest on the BAM Surplus Notes
held by HG Global. Of this payment, $24 million was a repayment of principal
held in the Supplemental Trust and $8 million was a payment of accrued interest
held outside the Supplemental Trust.
As of December 31, 2020, White Mountains's debt service model indicated that the
BAM Surplus Notes would be fully repaid between six and seven years prior to
final maturity, which is generally consistent with the results of the update of
the debt service model as of December 31, 2019.

Claims Paying Resources
BAM's claims paying resources represent the capital and other financial
resources BAM has available to pay claims and, as such, is a key indication of
BAM's financial strength.
BAM's claims paying resources were $1,192 million as of December 31, 2021
compared to $987 million as of December 31, 2020 and $938 million as of
December 31, 2019. The increase in claims paying resources was driven primarily
by the Fidus Re 2021 Agreement and increases in the statutory value of the
collateral trusts resulting from positive cash flow from operations, partially
offset by the portion of cash payments on the BAM surplus notes related to
accrued interest held outside the Supplemental Trust.
The following table presents BAM's total claims paying resources as of December
31, 2021, 2020 and 2019:

                                                                                      December 31,
Millions                               December 31, 2021     December 31, 2020            2019
Policyholders' surplus                 $         298.1             324.7            $        402.4
Contingency reserve                              101.8              86.4                      68.2
   Qualified statutory capital                   399.9             411.1                     470.6
Net unearned premiums                             49.5              45.2                      39.3
Present value of future installment
premiums and MSC                                  13.8              14.0                      13.7
HG Re Collateral Trusts at
statutory value                                  478.9             417.0                     314.0
Fidus Re collateral trust at
statutory value                                  250.0             100.0                     100.0
   Claims paying resources             $       1,192.1             987.3            $        937.6



                                       48
--------------------------------------------------------------------------------

HG Global/BAM Balance Sheets
The following table presents amounts from HG Global, which includes HG Re and
its other wholly-owned subsidiaries, and BAM that are contained within White
Mountains's consolidated balance sheet as of December 31, 2021 and 2020:

                                                             December 31, 2021
                                                                 Eliminations and
 Millions                          HG Global        BAM         Segment Adjustment        Total Segment
 Assets
 Fixed maturity investments       $   461.7      $ 472.4      $                   -      $        934.1
 Short-term investments                17.8         14.6                          -                32.4
 Total investments                    479.5        487.0                          -               966.5
 Cash                                  13.4          6.4                          -                19.8
 BAM Surplus Notes                    364.6            -                     (364.6)                  -
 Accrued interest receivable
 on BAM Surplus Notes                 157.6            -                     (157.6)                  -
 Insurance premiums receivable          4.3          6.9                       (4.3)                6.9
 Deferred acquisition costs            62.7         33.1                      (62.7)               33.1

 Other assets                           2.1         16.6                        (.2)               18.5
 Total assets                     $ 1,084.2      $ 550.0      $              (589.4)     $      1,044.8
 Liabilities
 BAM Surplus Notes (1)            $       -      $ 364.6      $              (364.6)     $            -

Accrued interest payable on

 BAM Surplus Notes (2)                    -        157.6                     (157.6)                  -

Preferred dividends payable

for The White Mountains

 subsidiaries (3)                     400.5            -                          -               400.5

Preferred dividends payable

 to non-controlling interests          14.2            -                          -                14.2
 Unearned insurance premiums          221.5         44.8                          -               266.3
 Accrued incentive
 compensation                           1.1         23.6                          -                24.7

 Other liabilities                       .5         83.4                      (67.2)               16.7
 Total liabilities                    637.8        674.0                     (589.4)              722.4
 Equity

The White Mountains common

 shareholders' equity (3)             437.5            -                          -               437.5
 Non-controlling interests              8.9       (124.0)                         -              (115.1)
 Total equity                         446.4       (124.0)                         -               322.4
 Total liabilities and equity     $ 1,084.2      $ 550.0      $             

(589.4) $1,044.8


(1)  Under GAAP, the BAM Surplus Notes are classified as debt by the issuer.
Under U.S. Statutory accounting, they are classified as policyholders' surplus.
(2)  Under GAAP, interest accrues daily on the BAM Surplus Notes. Under U.S.
Statutory accounting, interest is not accrued on the BAM Surplus Notes until it
has been approved for payment by insurance regulators.
(3)  HG Global preferred dividends payable to White Mountains's subsidiaries is
eliminated in White Mountains's consolidated financial statements. For segment
reporting, the HG Global preferred dividends payable to White Mountains's
subsidiaries included within the HG Global/BAM segment are eliminated against
the offsetting receivable included within the Other Operations segment, and
therefore are added back to White Mountains's common shareholders' equity within
the HG Global/BAM segment.

                                       49
--------------------------------------------------------------------------------

                                                             December 31, 2020
                                                                 Eliminations and
 Millions                          HG Global        BAM         Segment Adjustment        Total Segment
 Assets
 Fixed maturity investments       $   415.9      $ 443.6      $                   -      $        859.5
 Short-term investments                16.5         43.9                          -                60.4
 Total investments                    432.4        487.5                          -               919.9
 Cash                                  23.8         19.0                          -                42.8
 BAM Surplus Notes                    388.2            -                     (388.2)                  -
 Accrued interest receivable
 on BAM Surplus Notes                 155.7            -                     (155.7)                  -
 Insurance premiums receivable          4.4          6.9                       (4.4)                6.9
 Deferred acquisition costs            54.1         27.8                      (54.1)               27.8

 Other assets                           2.0         18.8                        (.4)               20.4
 Total assets                     $ 1,060.6      $ 560.0      $              (602.8)     $      1,017.8
 Liabilities
 BAM Surplus Notes (1)            $       -      $ 388.2      $              (388.2)     $            -

Accrued interest payable on

 BAM Surplus Notes (2)                    -        155.7                     (155.7)                  -

Preferred dividends payable

for The White Mountains

 subsidiaries (3)                     363.9            -                          -               363.9

Preferred dividends payable

 to non-controlling interests          12.7            -                          -                12.7
 Unearned insurance premiums          196.1         41.4                          -               237.5
 Accrued incentive
 compensation                           1.2         24.5                          -                25.7

 Other liabilities                      1.0         73.5                      (58.9)               15.6
 Total liabilities                    574.9        683.3                     (602.8)              655.4
 Equity

The White Mountains common

 shareholders' equity (3)             472.2            -                          -               472.2
 Non-controlling interests             13.5       (123.3)                         -              (109.8)
 Total equity                         485.7       (123.3)                         -               362.4
 Total liabilities and equity     $ 1,060.6      $ 560.0      $             

(602.8) $1,017.8


(1)  Under GAAP, the BAM Surplus Notes are classified as debt by the issuer.
Under U.S. Statutory accounting, they are classified as policyholders' surplus.
(2)  Under GAAP, interest accrues daily on the BAM Surplus Notes. Under U.S.
Statutory accounting, interest is not accrued on the BAM Surplus Notes until it
has been approved for payment by insurance regulators.
(3)  HG Global preferred dividends payable to White Mountains's subsidiaries is
eliminated in White Mountains's consolidated financial statements. For segment
reporting, the HG Global preferred dividends payable to White Mountains's
subsidiaries included within the HG Global/BAM segment are eliminated against
the offsetting receivable included within the Other Operations segment, and
therefore are added back to White Mountains's common shareholders' equity within
the HG Global/BAM segment.


                                       50
--------------------------------------------------------------------------------

Ark

On January 1, 2021, White Mountains completed the Ark Transaction. See Note 2 -
"Significant Transactions". Ark is a specialty property and casualty insurance
and reinsurance company that offers a wide range of niche insurance and
reinsurance products, including property, marine & energy, specialty, accident &
health and casualty. Ark underwrites select coverages through its two major
subsidiaries in the United Kingdom and Bermuda.
In the third quarter of 2021, Ark issued $163 million of floating rate unsecured
subordinated notes (the "Ark 2021 Subordinated Notes") in three separate
transactions. See Note 7 - "Debt". In connection with the issuance of the Ark
2021 Subordinated Notes, White Mountains and Ark terminated White Mountains's
commitment to provide up to $200 million of additional equity capital to Ark.
The following table presents the components of pre-tax income (loss) included in
White Mountains's Ark segment for the year-ended December 31, 2021:

Millions                                                                    Year Ended December 31, 2021
Earned insurance and reinsurance premiums                                 $                           637.3
Net investment income                                                                                   2.9
Net realized and unrealized investment gains (losses)                                                  16.5
Other revenues                                                                                         11.8
Total revenues                                                                                        668.5
Losses and LAE                                                                                        314.8
Insurance and reinsurance acquisition expenses                                                        178.0

General and administrative expenses - other underwriting                                               64.6
General and administrative expenses - all other                                                        50.9
Interest expense                                                                                        7.3
Total expenses                                                                                        615.6
Pre-tax income (loss)                                                     $                            52.9



For the years of account prior to the Ark Transaction, a significant proportion
of the Syndicates' underwriting capital was provided by TPC Providers using
whole account reinsurance contracts with Ark's corporate member. The TPC
Providers' participation in the Syndicates for the 2020 and 2019 open years of
account is 43% and 58% of the total net result of the Syndicates. For the years
of account subsequent to the Ark Transaction, Ark is no longer using TPC
Providers to provide underwriting capital for the Syndicates. Captions within
Ark's results of operations are shown net of amounts relating to the TPC
Providers share of the Syndicates' results, including investment results.



                                       51
--------------------------------------------------------------------------------

Ark Results-Year ended December 31, 2021
Ark's GAAP combined ratio was 87% in 2021. The GAAP combined ratio included 10
points of catastrophe losses, driven primarily by Hurricane Ida (five points),
Winter Storm Uri (three points) and the European floods (two points), partially
offset by three points of net favorable prior year reserve development. The net
favorable prior year reserve development was driven by positive claims
experience in several lines of business, particularly property and accident &
health.
Ark's adjusted combined ratio, which adds back amounts ceded to TPC Providers,
was 85% in 2021. The adjusted combined ratio included 10 points of catastrophe
losses, driven primarily by Hurricane Ida (four points), Winter Storm Uri (four
points) and the European floods (two points), partially offset by six points of
net favorable prior year reserve development. The net favorable prior year
reserve development was driven by positive claims experience in several lines of
business, particularly property and accident & health.
Ark reported pre-tax income of $53 million in 2021, which reflected $25 million
of transaction expenses related to the Ark Transaction.
The following table presents Ark's loss and loss adjustment expense, insurance
acquisition expense, other underwriting expense and combined ratios on both a
GAAP-basis and an adjusted basis, which adds back amounts ceded to TPC
Providers, for the year ended December 31, 2021:

                                                                       Year Ended December 31, 2021
                                                                           TPC Providers' Share
$ in Millions                                            GAAP                       (1)                    Adjusted
Insurance premiums:
Gross written premiums                             $      1,058.7          $                -          $     1,058.7
Net written premiums                               $        859.1          $             (6.5)         $       852.6
Net earned premiums                                $        637.3          $             76.3          $       713.6

Insurance expenses:
Loss and loss adjustment expenses                  $        314.8          $             39.8          $       354.6
Insurance acquisition expenses                              178.0                           -                  178.0
Other underwriting expenses                                  64.6                         9.2                   73.8
Total insurance expenses                           $        557.4          $             49.0          $       606.4

Ratios:
Loss and loss adjustment expense                             49.4  %                                            49.7  %
Insurance acquisition expense                                27.9  %                                            24.9  %
Other underwriting expense                                   10.1  %                                            10.3  %
Combined Ratio                                               87.4  %                                            84.9  %

(1) See “NON-GAAP FINANCIAL MEASURES” on page 71.


Gross Written Premiums
The following table presents Ark's gross written premiums by line of business
for the years ended December 31, 2021, 2020 and 2019, which includes periods
prior to White Mountains's ownership of Ark. White Mountains believes this is
useful in understanding the underwriting growth in the newly acquired business.
Gross written premiums increased 77% to $1,059 million in 2021 compared to 2020,
with risk adjusted rate change up approximately 8%. In 2021, in response to an
improved underwriting environment, Ark substantially increased its gross written
premiums, principally in the property, specialty and marine & energy lines of
business. Ark decreased its gross written premiums in the accident & health line
of business in response to a lack of adequate risk adjusted pricing in light of
recent market developments, including COVID-19.

                                                         Year Ended December 31,
             Millions                                2021          2020         2019
             Property                             $   438.4      $ 235.7      $ 134.4
             Specialty                                256.7        118.3        103.4
             Marine & Energy                          242.2        129.1        107.6
             Accident & Health                         67.0         90.6         86.0
             Casualty                                  54.4         24.4         40.6
               Total Gross Written Premium        $ 1,058.7      $ 598.1      $ 472.0



                                       52
--------------------------------------------------------------------------------

NSM

NSM is a full-service MGA and program administrator with delegated binding
authorities for specialty property and casualty insurance. The company places
insurance in niche sectors such as specialty transportation, real estate, social
services and pet. On behalf of its insurance carrier partners, NSM typically
manages all aspects of the placement process, including product development,
marketing, underwriting, policy issuance and claims. NSM earns commissions based
on the volume and profitability of the insurance that it places. NSM does not
take insurance risk.
The following table presents the components of GAAP net income (loss), EBITDA
and adjusted EBITDA included in White Mountains's NSM segment for the years
ended December 31, 2021, 2020 and 2019:

                                                                  Year Ended December 31,
   Millions                                                   2021           2020         2019

   Commission revenues                                     $   258.0      $ 232.5      $ 193.4
   Broker commission expense                                    80.2         75.3         64.8
   Gross profit                                                177.8        157.2        128.6
   Other revenues                                               72.4         52.6         39.7
   General and administrative expenses                         190.1        

176.9 132.2

   Change in fair value of contingent consideration              1.0        

(3.3) 2.1

   Amortization of other intangible assets                      35.2        

26.7 19.4

   Loss on assets held for sale                                 28.7            -            -
   Interest expense                                             23.3         22.1         16.7
   GAAP pre-tax income (loss)                                  (28.1)       (12.6)        (2.1)
   Income tax (expense) benefit                                  5.6          5.7           .6
   GAAP net income (loss)                                      (22.5)        (6.9)        (1.5)
   Add back:
   Interest expense                                             23.3         22.1         16.7
   Income tax expense (benefit)                                 (5.6)       

(5.7) (.6)

   General and administrative expenses - depreciation            5.4        

4.5 2.8

   Amortization of other intangible assets                      35.2        

26.7 19.4

   EBITDA (1)                                                   35.8        

40.7 36.8

Exclude:

   Change in fair value of contingent consideration              1.0        

(3.3) 2.1

   Non-cash equity-based compensation expense                    2.0          2.4            -
   Impairments of intangible assets                                -        

6.2 2.4

   Loss on assets held for sale                                 28.7            -            -
   Transaction expenses                                          4.8        

7.2 3.2

Fair value purchase accounting adjustment for

     deferred revenue                                              -            -           .9

Investments made in the development of

     new business lines                                           .8           .9           .3
   Restructuring expenses                                        5.4          4.8          2.3
   Legal settlements                                            (7.6)           -            -
   Adjusted EBITDA (1)                                     $    70.9      $  58.9      $  48.0

(1) See “NON-GAAP FINANCIAL MEASURES” on page 71.

                                       53
--------------------------------------------------------------------------------

NSM Results-Year ended December 31, 2021 versus Year ended December 31, 2020
NSM reported commission and other revenues of $330 million, pre-tax loss of $28
million and adjusted EBITDA of $71 million in 2021. NSM reported commission and
other revenues of $285 million, pre-tax loss of $13 million and adjusted EBITDA
of $59 million in 2020. NSM's pre-tax loss included interest expense of $23
million and amortization of other intangible assets of $35 million in 2021
compared to $22 million and $27 million, respectively, in 2020. NSM's pre-tax
loss in 2021 also includes a loss of $29 million related to the sale of its
Fresh Insurance motor business. Results in the year ended December 31, 2021
include the results of J.C. Taylor from August 6, 2021, the date of its
acquisition. Results in the years ended December 31, 2021 and 2020 include the
results of Kingsbridge from April 7, 2020, the date of its acquisition. In
addition to the acquisitions of J.C. Taylor and Kingsbridge, commission and
other revenues, pre-tax loss and adjusted EBITDA benefited from growth in the
pet and specialty transportation verticals, partially offset by a decline in the
real estate vertical, in 2021.
Broker commission expenses and general and administrative expenses were $80
million and $190 million in 2021 compared to $75 million and $177 million,
respectively, in 2020. The increase in NSM's broker commission expenses and
general and administrative expenses in 2021 compared to 2020 was driven
primarily by the acquisitions of J.C. Taylor and Kingsbridge and increased
technology costs and professional fees related to information systems projects.

NSM Results-Year ended December 31, 2020 versus December 31, 2019
NSM reported commission and other revenues of $285 million in 2020, pre-tax loss
of $13 million and adjusted EBITDA of $59 million in 2020. NSM reported
commission and other revenues of $233 million, pre-tax loss of $2 million and
adjusted EBITDA of $48 million in 2019. NSM's pre-tax loss included interest
expense of $22 million and amortization of other intangible assets of $27
million in 2020 compared to $17 million and $19 million, respectively, in 2019.
Results in the year ended December 31, 2020 include the results of Kingsbridge
from April 7, 2020, the date of its acquisition. Results in the years ended
December 31, 2020 and 2019 include the results of Embrace from April 1, 2019,
the date of its acquisition.
Broker commission expenses and general and administrative expenses were $75
million and $177 million in 2020 compared to $65 million and $132 million,
respectively, in 2019. The increase in NSM's broker commission expenses and
general and administrative expenses in 2020 compared to 2019 was driven
primarily by the acquisitions of Kingsbridge and Embrace. In addition, NSM's
general and administrative expenses for 2020 and 2019 included a $6 million and
$2 million impairment of intangible assets related to its U.K. vertical.

NSM Business Trends
NSM's business consists of approximately 25 active programs that are broadly
categorized into six market verticals. J.C. Taylor was added to the Specialty
Transportation vertical in the third quarter of 2021 and Kingsbridge was added
to the U.K. vertical in the second quarter of 2020.
The following table presents the controlled premium and commission and other
revenues by vertical for the years ended December 31, 2021, 2020 and 2019:

                                                                       Year Ended December 31,
                                            2021                                2020                                 2019
                               Controlled      Commission and      Controlled      Commission and       Controlled       Commission and
Millions                       Premium (1)      Other Revenue      Premium (1)      Other Revenue       Premium (1)       Other Revenue
Specialty Transportation      $     344.7      $        97.2      $     310.2      $        85.5      $       290.2      $        77.6
United Kingdom                      195.2               53.1            179.5               49.4              155.5               45.9
Pet                                 184.9               76.3            131.9               55.0               67.6               30.0
Real Estate                         153.9               34.4            189.1               44.9              157.2               34.7
Social Services                     136.7               33.9            115.5               28.9              102.7               25.9
Other                               165.8               35.5            134.5               21.4              124.5               19.0
Total                         $   1,181.2      $       330.4      $   1,060.7      $       285.1      $       897.7      $       233.1

(1) Controlled premiums are the total premiums placed by NSM during the period.

                                       54
--------------------------------------------------------------------------------

Year Ended December 31, 2021 versus Year Ended December 31, 2020
Specialty Transportation: NSM's specialty transportation controlled premium and
commission and other revenues increased 11% and 14% in 2021 compared to 2020,
driven primarily by the impact of higher commission levels and fees in the
collector car and the trucking business and the acquisition of J.C. Taylor,
partially offset by lower contingent commissions. J.C. Taylor contributed $13
million of controlled premium and $4 million of commission and other revenues
from the date of acquisition.
United Kingdom: NSM's United Kingdom controlled premium and commission and other
revenues increased 9% and 8% in 2021 compared to 2020, driven primarily by
growth in the MGA business and the Kingsbridge acquisition. Excluding
Kingsbridge, United Kingdom controlled premium increased 1% and commission and
other revenues decreased 8% in 2021 compared to 2020. Excluding Kingsbridge,
commission and other revenues decreased as a result of changes in product mix,
as the brokerage business, which has higher commission rates than the MGA
business, declined due to disruption to the travel and leisure markets resulting
from a full year impact of the COVID-19 pandemic, while the MGA business grew.
Pet: NSM's pet controlled premium and commission and other revenues increased
40% and 39% in 2021 compared to 2020, driven primarily by substantial growth in
units from continuing strong demand as a result of marketing efforts.
Real Estate: NSM's real estate controlled premium and commission and other
revenues decreased 19% and 23% in 2021 compared to 2020, driven primarily by
declines in both rates and units in the coastal condominium program, partially
offset by growth in the excess and surplus habitational program. The declines in
the coastal condominium program were driven primarily by lower insurance carrier
capacity available for the program as NSM is transitioning to a new insurance
carrier platform.
Social Services: NSM's social services controlled premium and commission and
other revenues increased 18% and 17% in 2021 compared to 2020, driven primarily
by rate increases and unit growth.
Other: NSM's other controlled premium and commission and other revenues
increased 23% and 66% in 2021 compared to 2020. The increase in controlled
premium was driven primarily by increases in the workers compensation and
staffing markets resulting from the emergence from COVID-19 lockdowns.
Commission and other revenues increased more than controlled premium driven
primarily by an increase in profit commissions and product mix shifts into
higher rate workers compensation programs.

Year ended December 31, 2020 compared to the year ended December 31, 2019

  Specialty Transportation: NSM's specialty transportation controlled premium
and commission and other revenues increased 7% and 10% in 2020 compared to 2019,
driven primarily by rate increases and unit growth in the collector car and tow
truck markets.
United Kingdom: NSM's United Kingdom controlled premium and commission and other
revenues increased 15% and 8% in 2020 compared to 2019, driven primarily by the
acquisition of Kingsbridge. Kingsbridge contributed $26 million of controlled
premium and $12 million of commission and other revenues in 2020. Excluding
Kingsbridge, United Kingdom controlled premium decreased 1% in 2020 compared to
2019, as growth in the MGA business was offset by declines in the brokerage
business caused by disruption to the travel and non-standard auto markets in the
United Kingdom resulting from the COVID-19 pandemic. Excluding Kingsbridge,
United Kingdom commission and other revenues declined 19% due to COVID-related
challenges and changes in product mix, as the brokerage business, which has
higher commission rates than the MGA business, declined while the MGA business
grew.
Pet: NSM's pet controlled premium and commission and other revenues increased
95% and 83% in 2020 compared to 2019, driven primarily by the acquisition of
Embrace in April 2019 and strong demand in 2020 as pet adoption increased
substantially as a result of the COVID-19 pandemic. The increase in commission
and other revenues was less than the increase in premium due to business mix, as
affinity business grew faster than direct market business.
Real Estate: NSM's real estate controlled premium and commission and other
revenues increased 20% and 29% in 2020 compared to 2019, driven primarily by
rate increases and strong retention rates in coverages for coastal condominium
associations combined with rate increases and unit growth in the excess and
surplus habitational program.
Social Services: NSM's social services controlled premium and commission and
other revenues both increased 12% in 2020 compared to 2019, driven primarily by
rate increases and unit growth.
Other: NSM's other controlled premium and commission and other revenues
increased 8% and 13% in 2020 compared to 2019. The increase in controlled
premium was driven primarily by rate increases. Commission and other revenues
increased as the professional liability business, which has higher commission
rates than retail, grew while the retail business declined.

                                       55
--------------------------------------------------------------------------------

Kudu

Kudu provides capital solutions for boutique asset and wealth managers for a
variety of purposes including generational ownership transfers, management
buyouts, acquisition and growth finance and legacy partner liquidity. Kudu also
provides strategic assistance to investees from time to time.
As of December 31, 2021, Kudu has deployed a total of $612 million in 17 asset
and wealth management firms globally, including one that was exited. As of
December 31, 2021, the asset and wealth management firms have combined assets
under management of approximately $66 billion, spanning a range of asset
classes, including real estate, real assets, wealth management, hedge funds,
private equity and alternative credit strategies. Kudu's capital was deployed at
an average gross cash yield at inception of 10.1%.
On March 23, 2021, Kudu replaced the Kudu Bank Facility with the Kudu Credit
Facility. Subject to maximum loan to value ("LTV") levels, the total borrowing
capacity of the Kudu Credit Facility is $300 million (which includes the current
advanced amount of $225 million). See Note 7 - "Debt".
The following table presents the components of GAAP net income, EBITDA and
adjusted EBITDA included in White Mountains's Kudu segment for the years ended
December 31, 2021 and December 31, 2020 and for the period from April 4, 2019,
the date of the Kudu Transaction, to December 31, 2019:

                                                   Year Ended December       Year Ended December          April 4, 2019 to
Millions                                                31, 2021                   31, 2020               December 31, 2019
Net investment income                              $           43.9          $            29.5          $             14.7
Net realized and unrealized investment
gains (losses)                                                 89.9                       15.9                         6.3
Other revenues                                                   .2                         .3                          .2
Total revenues                                                134.0                       45.7                        21.2
General and administrative expenses                            14.5                       11.8                        10.1
Amortization of other intangible assets                          .3                         .3                          .2
Interest expense                                               11.7                        6.0                          .1
Total expenses                                                 26.5                       18.1                        10.4
GAAP pre-tax income (loss)                         $          107.5          $            27.6          $             10.8
Income tax (expense) benefit                                  (29.5)                      (7.0)                       (2.8)
GAAP net income (loss)                                         78.0                       20.6                         8.0
Add back:
Interest expense                                               11.7                        6.0                          .1
Income tax expense (benefit)                                   29.5                        7.0                         2.8
General and administrative expenses -
depreciation                                                      -                          -                           -
Amortization of other intangible assets                          .3                         .3                          .2
EBITDA (1)                                                    119.5                       33.9                        11.1

Exclude:

Net realized and unrealized investment
(gains) losses                                                (89.9)                     (15.9)                       (6.3)
Non-cash equity-based compensation
expense                                                         1.2                         .4                         1.3
Transaction expenses                                            2.0                        3.7                         2.9
Adjusted EBITDA (1)                                $              32.8       $               22.1       $                 9.0

(1) See “NON-GAAP FINANCIAL MEASURES” on page 71.

                                       56
--------------------------------------------------------------------------------

Kudu Results-Year ended December 31, 2021 versus Year ended December 31, 2020
Kudu reported total revenues of $134 million, pre-tax income of $108 million and
adjusted EBITDA of $33 million in 2021 compared to total revenues of $46
million, pre-tax income of $28 million and adjusted EBITDA of $22 million in
2020. Total revenues and pre-tax income for 2021 included $22 million of
realized gains and $68 million of unrealized gains on Kudu's Participation
Contracts in 2021 compared to $16 million of unrealized gains on Kudu's
Participation Contracts in 2020. The increase in net unrealized and realized
investment gains on Kudu's Participation Contracts was driven primarily by asset
growth, the performance of Kudu's underlying asset management businesses and
proceeds received from a sale transaction. Total revenues, pre-tax income and
adjusted EBITDA in 2021 also included $44 million of net investment income
compared to $30 million in 2020. The increase in net investment income was
driven primarily by amounts earned from the $347 million (including $5 million
of transaction costs) in new deployments that Kudu made in 2021 and 2020.

Kudu Results-Year ended December 31, 2020 versus Year ended December 31, 2019
Kudu reported total revenues of $46 million, pre-tax income of $28 million and
adjusted EBITDA of $22 million for 2020 compared to total revenues of $21
million, pre-tax income of $11 million and adjusted EBITDA of $9 million for the
period from April 4, 2019, the date of the Kudu Transaction, to December 31,
2019. Total revenues and pre-tax income included $16 million of unrealized gains
on Kudu's Participation Contracts in 2020 compared to $6 million in the period
from April 4, 2019 to December 31, 2019. Total revenues, pre-tax income and
adjusted EBITDA in 2020 also included $30 million of net investment income
compared to $15 million in 2019. The increases in Kudu's total revenues, pre-tax
income and adjusted EBITDA in 2020 were driven primarily by net investment
income earned from the $121 million (including $3 million of transaction costs)
in new deployments that Kudu made in 2020 and 2019.

MediaAlpha

On February 26, 2019, MediaAlpha completed the 2019 MediaAlpha Transaction.
White Mountains deconsolidated MediaAlpha as a result of the 2019 MediaAlpha
Transaction and stopped reporting it as a segment. On October 30, 2020,
MediaAlpha completed the MediaAlpha IPO. Prior to the MediaAlpha IPO, White
Mountains's non-controlling equity interest in MediaAlpha was accounted for at
fair value within other long-term investments. Following the MediaAlpha IPO,
White Mountains's non-controlling equity interest in MediaAlpha is accounted for
at fair value based on the publicly traded share price of MediaAlpha's common
stock. See Summary of Investment Results on page 59.
The following table presents the components of pre-tax income (loss) included in
White Mountains's MediaAlpha segment for the period of January 1, 2019 to
February 26, 2019:

                                                                              January 1, 2019 to
Millions                                                                       February 26, 2019
Advertising and commission revenues                                        $                 48.8
Cost of sales                                                                                40.6
Gross profit                                                                                  8.2
Other revenue                                                                                   -
General and administrative expenses                                                           5.7

General and administrative expenses –

  the 2019 MediaAlpha Transaction related costs                                               6.8
Amortization of other intangible assets                                                       1.6
Interest expense                                                                               .2
Pre-tax income (loss)                                                      $                 (6.1)



MediaAlpha Results-For the Period from January 1, 2019 to February 26, 2019
MediaAlpha reported pre-tax loss of $6 million and revenues of $49 million from
January 1, 2019 to February 26, 2019, the date of the 2019 MediaAlpha
Transaction. During the period from January 1, 2019 to February 26, 2019,
revenues were driven primarily by the P&C and Health, Medicare and Life
verticals, which had revenues of $26 million and $17 million. During the period
from January 1, 2019 to February 26, 2019, MediaAlpha recognized $7 million of
costs related to the 2019 MediaAlpha Transaction in general and administrative
expenses.

                                       57
--------------------------------------------------------------------------------

Other operations

The following table shows The White Mountains the financial results of its Other
Operations segment for the fiscal years ended December 31, 20212020 and 2019:

                                                                     Year Ended December 31,
Millions                                                         2021          2020         2019

Net investment income                                         $    18.2      $  82.0      $  43.4
Net realized and unrealized investment gains (losses)              50.7     

(8.8) 219.8
Net realized and unrealized investment gains (losses)
Investment in MediaAlpha

                                         (380.3)       686.0        180.0
Realized gain from the 2019 MediaAlpha Transaction                    -            -         67.5
Commission revenues                                                 9.6          8.3          6.9
Other revenues                                                     90.7         13.9          6.1
Total revenues                                                   (211.1)       781.4        523.7

Cost of sales                                                      69.3         11.3          7.5
General and administrative expenses                               105.7        141.9        122.5
Amortization of other intangible assets                             4.3          1.3           .6
Interest expense                                                    1.5          1.4           .6
Total expenses                                                    180.8        155.9        131.2
Pre-tax income (loss)                                         $  (391.9)     $ 625.5      $ 392.5


Other operating results – Year ended December 31, 2021 compared to the year ended
December 31, 2020

  White Mountains's Other Operations segment reported pre-tax (loss) income of
$(392) million in 2021 compared to $626 million in 2020. White Mountains's Other
Operations segment reported net realized and unrealized investment (losses)
gains from its investment in MediaAlpha of $(380) million in 2021 compared to
$686 million in 2020. White Mountains's Other Operations segment reported net
realized and unrealized investment gains (losses) of $51 million in 2021
compared to $(9) million in 2020. White Mountains's Other Operations segment
reported net investment income of $18 million in 2021 compared to $82 million in
2020. Net investment income in the year ended December 31, 2020 included $55
million of net proceeds received from a dividend recapitalization at MediaAlpha.
See "Summary of Investment Results" on page 59.
The Other Operations segment reported $91 million of other revenues in 2021
compared to $14 million in 2020. The Other Operations segment reported
$69 million of cost of sales in 2021 compared to $11 million in 2020. The
increases in other revenues and cost of sales were driven primarily by an
acquisition within the Other Operations segment.
The Other Operations segment reported general and administrative expenses of
$106 million in 2021 compared to $142 million in 2020. The decrease in general
and administrative expenses was driven primarily by lower incentive compensation
costs, driven primarily by a decrease in the assumed harvest percentage on
outstanding performance shares.

Share repurchases
For the year ended December 31, 2021, White Mountains repurchased and retired
98,511 of its common shares for $108 million.

Other Operations Results-Year Ended December 31, 2020 versus Year Ended
December 31, 2019
White Mountains's Other Operations segment reported pre-tax income of $626
million in 2020 compared to $393 million in 2019. White Mountains's Other
Operations segment reported net realized and unrealized investment gains from
its investment in MediaAlpha of $686 million in 2020 compared to $180 million in
2019. White Mountains's Other Operations segment reported net realized and
unrealized investment (losses) gains of $(9) million in 2020 compared to $220
million in 2019. White Mountains's Other Operations segment reported net
investment income of $82 million in 2020, which was driven primarily by $55
million of net proceeds received in the third quarter of 2020 from a dividend
recapitalization at MediaAlpha compared to net investment income of $43 million
in 2019. See "Summary of Investment Results" on page 59. Pre-tax income for the
year ended December 31, 2019 also included $68 million of realized gains from
the 2019 MediaAlpha Transaction.
The Other Operations segment reported general and administrative expenses of
$142 million in 2020 compared to $123 million in 2019. The increase was driven
primarily by higher incentive compensation costs, driven primarily by an
increase in the assumed harvest percentage on outstanding performance shares.

                                       58
--------------------------------------------------------------------------------

Share repurchases
For the year ended December 31, 2020, White Mountains repurchased and retired
99,087 of its common shares for $85 million.

II. Summary of investment results

White Mountains's total investment results include results from all segments.
For purposes of discussing rates of return, all percentages are presented gross
of management fees and trading expenses and are calculated before any
adjustments for TPC Providers in order to produce a better comparison to
benchmark returns.

Gross investment returns and benchmark returns

Prior to the MediaAlpha IPO, White Mountains's investment in MediaAlpha was
presented within other long-term investments. Following the MediaAlpha IPO,
White Mountains presents its investment in MediaAlpha in a separate line item on
the balance sheet. Amounts for periods prior to the MediaAlpha IPO have been
reclassified to be comparable to the current period.
The following table presents the pre-tax investment returns for White
Mountains's consolidated portfolio for the years ended December 31, 2021, 2020
and 2019:

                                                               Year Ended December 31,
                                                            2021                2020         2019
Fixed income investments                                           (0.4) %       4.9  %      6.1  %
Bloomberg Barclays U.S. Intermediate Aggregate
Index                                                              (1.3) %       5.6  %      6.7  %

Common equity securities                                           11.0  %       3.6  %     29.1  %
Investment in MediaAlpha                                          (60.1) %     520.3  %     65.9  %
Other long-term investments                                        20.7  %       2.5  %      6.1  %
Total common equity securities, investment in
MediaAlpha and other long-term investments                         (7.1) %      80.0  %     36.9  %
Total common equity securities and other
long-term investments                                              19.3  %       4.9  %     20.8  %
S&P 500 Index (total return)                                       28.7  %      18.4  %     31.5  %
Total consolidated portfolio                                       (3.4) %      31.9  %     20.4  %
Total consolidated portfolio - excluding
MediaAlpha                                                          6.4  %       4.6  %     13.0  %


Investment Returns – Year End December 31, 2021 compared to the year ended The 31st of December,
2020

White Mountains's pre-tax total consolidated portfolio return on invested assets
was -3.4% in 2021. This return included $380 million of net realized and
unrealized investment losses from White Mountains's investment in MediaAlpha.
Excluding MediaAlpha, the total consolidated portfolio return on invested assets
was 6.4% in 2021. Excluding MediaAlpha, investment returns in 2021 were driven
primarily by favorable other long-term investments results. White Mountains's
pre-tax total consolidated portfolio return on invested assets was 31.9% in
2020. This return included $746 million of net investment income and net
realized and unrealized investment gains from White Mountains's investment in
MediaAlpha. Excluding MediaAlpha, the total consolidated portfolio return on
invested assets was 4.6% in 2020. Excluding MediaAlpha, investment returns in
2020 were impacted by White Mountains's decision to liquidate its portfolio of
common equity securities in the second half of 2020 in preparation for funding
the Ark Transaction as equity markets rallied in the fourth quarter.

Fixed Income Results
White Mountains's fixed income portfolio, including short-term investments, was
$2.4 billion and $1.4 billion as of December 31, 2021 and 2020, which
represented 56% and 46% of total invested assets. The increase was driven
primarily by the inclusion of Ark's invested assets as a result of the Ark
Transaction. The duration of White Mountains's fixed income portfolio, including
short-term investments, was 2.6 years and 3.2 years as of December 31, 2021 and
2020. White Mountains's fixed income portfolio includes fixed maturity
investments and short-term investments in the HG Re Collateral Trusts of $480
million and $432 million as of December 31, 2021 and 2020.
White Mountains's fixed income portfolio returned -0.4% in 2021 compared to 4.9%
in 2020, outperforming and underperforming the Bloomberg Barclays U.S.
Intermediate Aggregate Index returns of -1.3% and 5.6% for the comparable
periods. The results in 2021 were driven primarily by the short duration
positioning of White Mountains's fixed income portfolio as interest rates
increased during the period, partially offset by currency losses. The results in
2020 were driven primarily by the short duration positioning of White
Mountains's fixed income portfolio as interest rates declined significantly
during the period.

                                       59
--------------------------------------------------------------------------------

Common Equity Securities, Investment in MediaAlpha and Other Long-Term
Investments Results
White Mountains's portfolio of common equity securities, its investment in
MediaAlpha and other long-term investments was $1.9 billion and $1.6 billion as
of December 31, 2021 and 2020, which represented 44% and 54% of total invested
assets. See Note 3 - "Investment Securities". The change was driven primarily by
an increase in the fair value of Kudu's Participation Contracts, the inclusion
of Ark's invested assets as a result of the Ark Transaction and the addition of
international listed common equity funds and a bank loan fund at Ark, partially
offset by a decline in the fair value of White Mountains's investment in
MediaAlpha.
White Mountains's portfolio of common equity securities, its investment in
MediaAlpha and other long-term investments returned -7.1% in 2021, driven
primarily by $380 million of net realized and unrealized investment losses from
its investment in MediaAlpha. White Mountains's portfolio of common equity
securities and other long-term investments returned 19.3% in 2021. White
Mountains's portfolio of common equity securities, its investment in MediaAlpha
and other long-term investments returned 80.0% in 2020, which included $746
million of net investment income and net realized and unrealized investment
gains from its investment in MediaAlpha. White Mountains's portfolio of common
equity securities and other long-term investments returned 4.9% in 2020.
During the second half of 2020, White Mountains liquidated its portfolio of
common equity securities, including its portfolio of ETFs and international
common equity securities, in preparation for funding the Ark Transaction.
Following the Ark Transaction, White Mountains's portfolio of common equity
securities consists of international listed funds held in the Ark portfolio. As
of December 31, 2021, the fair value of White Mountains's international listed
common equity funds was $251 million.
White Mountains's portfolio of common equity securities returned 11.0% in 2021
compared to 3.6% in 2020, underperforming the S&P 500 Index returns of 28.7% and
18.4% for the comparable periods. The results for 2021 were driven primarily by
relative underperformance in White Mountains's non-U.S. common equity positions
versus the S&P 500 Index. The results for 2020 were driven primarily by White
Mountains's lack of common equity exposure during the fourth quarter equity
market rally and the relative underperformance from White Mountains's
international common equity portfolios versus the S&P 500 Index prior to the
liquidation of these positions.
Historically, White Mountains's portfolio of ETFs was designed to provide
investment results that generally corresponded to the performance of the S&P 500
Index. White Mountains's portfolio of ETFs was fully liquidated in the fourth
quarter of 2020. In 2020, White Mountains's portfolio of ETFs essentially earned
the effective index return, before expenses, over the period in which White
Mountains was invested in these funds. White Mountains also maintained
relationships with a small number of third-party registered investment advisers
(the "actively managed common equity portfolio"), who primarily invested in
non-U.S. equity securities through unit trusts. At the end of the third quarter
of 2020, White Mountains fully redeemed its actively managed common equity
portfolio. White Mountains's actively managed common equity portfolio returned
-11.0% in 2020, underperforming the S&P 500 Index return of 18.4%. The results
were driven primarily by the lack of exposure to actively managed common
equities in the fourth quarter of 2020 and relative underperformance in
international stocks versus the S&P 500 Index.
White Mountains maintains a portfolio of other long-term investments that
consists primarily of unconsolidated entities, including Kudu's Participation
Contracts, a bank loan fund, private equity funds, hedge funds, Lloyd's trust
deposits, ILS funds and private debt investments. White Mountains's portfolio of
other long-term investments was $1.4 billion and $787 million as of December 31,
2021 and 2020. The change in other long-term investments was driven primarily by
an increase in the fair value of Kudu's Participation Contracts, the inclusion
of invested assets relating to the Ark Transaction and the addition of a bank
loan fund at Ark.
White Mountains's other long-term investments portfolio returned 20.7% in 2021
compared to 2.5% in 2020. Investment returns for 2021 were driven primarily by
$134 million of net investment income and realized and unrealized investment
gains from Kudu's Participation Contracts, $51 million of net investment income
and realized and unrealized investment gains from private equity funds, and a
$25 million increase in the fair value of White Mountains's investment in
PassportCard/DavidShield. Investment returns from White Mountains's investment
in PassportCard/DavidShield were driven primarily by growth in leisure travel
premiums and commission revenues as the global economy recovered from the
COVID-19 pandemic. Investment returns for 2020 were driven primarily by $45
million of net investment income and net unrealized gains from Kudu's
Participation Contracts, partially offset by a $10 million decrease in the fair
value of White Mountains's investment in PassportCard/DavidShield, where the
global slowdown in travel activity in reaction to the COVID-19 pandemic caused a
significant decline in premiums and revenues, and unrealized investment losses
from hedge funds and private debt investments.

                                       60
--------------------------------------------------------------------------------

Investment Returns-Year Ended December 31, 2020 versus Year Ended December 31,
2019
White Mountains's pre-tax total return on invested assets was 31.9% in 2020.
This return included $746 million of net investment income and net realized and
unrealized investment gains from MediaAlpha. Excluding MediaAlpha, the total
return on invested assets was 4.6% in 2020. Investment returns in 2020 were
impacted by White Mountains's decision to liquidate its portfolio of common
equity securities in the second half of 2020 in preparation for funding the Ark
Transaction as equity markets rallied in the fourth quarter. White Mountains's
pre-tax total return on invested assets was 20.4% in 2019. This return included
$188 million of net investment income and net unrealized investment gains from
MediaAlpha. Excluding MediaAlpha, the total return on invested assets was 13.0%
in 2019. Investment returns in 2019 benefited from White Mountains's decision to
increase equity exposure after markets declined sharply at the end of 2018 ahead
of the strong rally in equity markets during 2019.

Fixed Income Results
White Mountains's fixed income portfolio, including short-term investments, was
$1.4 billion as of December 31, 2020 and 2019, which represented 46% and 48% of
total invested assets. The duration of White Mountains's fixed income portfolio,
including short-term investments, was 3.2 years and 2.8 years as of December 31,
2020 and 2019. White Mountains's fixed income portfolio included fixed maturity
investments and short-term investments in the HG Re Collateral Trusts of $432
million and $320 million as of December 31, 2020 and 2019.
White Mountains's fixed income portfolio returned 4.9% in 2020 compared to 6.1%
in 2019, underperforming the Bloomberg Barclays U.S. Intermediate Aggregate
Index returns of 5.6% and 6.7% for the comparable periods. The results for both
periods were driven primarily by the short duration positioning of White
Mountains's fixed income portfolio as interest rates declined significantly
during the periods.

Common Equity Securities, Investment in MediaAlpha and Other Long-Term
Investments Results
White Mountains's portfolio of common equity securities, its investment in
MediaAlpha and other long-term investments was $1.6 billion and $1.5 billion as
of December 31, 2020 and 2019, which represented 54% and 52% of total invested
assets. See Note 3 - "Investment Securities". The change was primarily driven by
an increase in the fair value of White Mountains's investment in MediaAlpha and
an increase in other long-term investments, partially offset by the sale of
common equity securities during the second half of 2020 in preparation for
funding the Ark Transaction.
White Mountains's portfolio of common equity securities, its investment in
MediaAlpha and other long-term investments returned 80.0% in 2020, which
included $746 million of net investment income and net realized and unrealized
investment gains from MediaAlpha. White Mountains's portfolio of common equity
securities and other long-term investments returned 4.9% in 2020. White
Mountains's portfolio of common equity securities, its investment in MediaAlpha
and other long-term investments returned 36.9% in 2019, which included $188
million of net investment income and unrealized investment gains from
MediaAlpha. White Mountains's portfolio of common equity securities and other
long-term investments returned 20.8% in 2019.
Historically, White Mountains's portfolio of common equity securities consisted
of a portfolio of ETFs and publicly-traded common equity securities actively
managed by select third-party registered investment advisers. During the second
half of 2020, White Mountains liquidated its portfolio of common equity
securities, including its portfolio of ETFs and international common equity
securities, in preparation for funding the Ark Transaction. As of December 31,
2019, White Mountains's portfolio of common equity securities was $684 million
as of December 31, 2019.
White Mountains's portfolio of common equity securities returned 3.6% in 2020
compared to 29.1% in 2019, underperforming the S&P 500 Index returns of 18.4%
and 31.5% for the comparable periods. The results for 2020 were driven primarily
by White Mountains's lack of common equity exposure during the fourth quarter
equity market rally and the relative underperformance from White Mountains's
international common equity portfolios versus the S&P 500 Index prior to the
liquidation of these positions. The results for 2019 were driven primarily by
relative underperformance in White Mountains's international common equity
portfolios versus the S&P 500 Index.
White Mountains's portfolio of ETFs was fully liquidated as of December 31, 2020
and totaled $536 million as of December 31, 2019. In 2020 and 2019, White
Mountains's portfolio of ETFs essentially earned the effective index return,
before expenses, over the period in which White Mountains was invested in these
funds. At the end of the third quarter of 2020, White Mountains fully redeemed
its actively managed common equity portfolio. White Mountains's actively managed
common equity portfolio was $147 million as of December 31, 2019. White
Mountains's actively managed common equity portfolio returned -11.0% in 2020
compared to 24.2% in 2019, underperforming the S&P 500 Index return of 18.4% and
31.5% for the comparable periods. The 2020 results were driven primarily by the
lack of exposure to actively managed common equities in the fourth quarter of
2020 and relative underperformance in international stocks versus the S&P 500
Index. The 2019 results were driven primarily by relative underperformance in
White Mountains's international common equity portfolios versus the S&P 500
Index.
White Mountains's portfolio of other long-term investments was $787 million and
$676 million as of December 31, 2020 and 2019. The change in other long-term
investments was primarily driven by an increase in the fair value of Kudu's
Participation Contracts.

                                       61
--------------------------------------------------------------------------------

White Mountains other long-term investments portfolio returned 2.5% in 2020
compared to 6.1% in 2019. Investment returns for 2020 were driven primarily by
$45 million of net investment income and net unrealized gains from Kudu's
Participation Contracts, partially offset by a $10 million decrease in the fair
value of White Mountains's investment in PassportCard/DavidShield, where the
global slowdown in travel activity in reaction to the COVID-19 pandemic caused a
significant decline in premiums and revenues and unrealized investment losses
from hedge funds and private debt investments.
Investment returns for 2019 were driven primarily by $21 million of net
investment income and net unrealized gains from Kudu's Participation Contracts
and $15 million of net investment income and realized and unrealized investment
gains from private equity funds.

Composition of the portfolio

The following table shows the composition of The White Mountains total
portfolio of operating investments in December 31, 2021 and 2020:

                                         December 31, 2021                     December 31, 2020
$ in Millions                      Carrying Value       % of Total       Carrying Value       % of Total
Fixed maturity investments       $        1,908.9           44.8  %    $        1,207.2           41.1  %
Short-term investments                      465.9           10.9                  142.8            4.9

Common equity securities                    251.1            5.9                      -              -
Investment in MediaAlpha                    261.6            6.1                  802.2           27.3
Other long-term investments               1,377.8           32.3                  786.8           26.7
Total investments                $        4,265.3          100.0  %    $        2,939.0          100.0  %



The following table presents the breakdown of White Mountains's fixed maturity
investments as of December 31, 2021 by credit class, based upon issuer credit
ratings provided by Standard & Poor's, or if unrated by Standard & Poor's,
long-term obligation ratings provided by Moody's:

                                                                  December 31, 2021
                                               Amortized                      Carrying
 $ in Millions                                   Cost         % of Total        Value        % of Total

we government and government sponsored

 entities (1)                                 $   467.7           24.7  %    $   467.4           24.5  %
 AAA/Aaa                                          135.7            7.2           136.5            7.1
 AA/Aa                                            332.6           17.5           343.4           18.0
 A/A                                              546.5           28.8           549.1           28.7
 BBB/Baa                                          404.7           21.4           403.8           21.2

 Other/not rated                                    8.3            0.4             8.7            0.5
 Total fixed maturity investments             $ 1,895.5          100.0  %   

$1,908.9 100.0%


(1)Includes mortgage-backed securities, which carry the full faith and credit
guaranty of the U.S. government (i.e., GNMA) or are guaranteed by a government
sponsored entity (i.e., FNMA, FHLMC).

The following table presents the cost or amortized cost and carrying value of
White Mountains's fixed maturity investments by contractual maturity as of
December 31, 2021. Actual maturities could differ from contractual maturities
because borrowers may have the right to call or prepay certain obligations with
or without call or prepayment penalties.

                                                                   December 31, 2021
                                                           Cost or Amortized       Carrying
 Millions                                                         Cost               Value
 Due in one year or less                                  $            136.7      $   137.3
 Due after one year through five years                                 

866.2 865.0

 Due after five years through ten years                                

365.7 371.5

 Due after ten years                                                   

113.2 122.5

Mortgage and asset-backed securities and

 collateralized loan obligations                                       

413.7 412.6

 Total fixed maturity investments                         $          

1,895.5 $1,908.9

                                       62
--------------------------------------------------------------------------------

The following table shows the composition of The White Mountains other
portfolio of long-term investments December 31, 2021 and 2020:

                                                 December 31, 2021               December 31, 2020
                                             Carrying                         Carrying
 $ in Millions                                 Value         % of Total        Value         % of Total
 Kudu Participation Contracts              $     669.5           48.6  %    $    400.6           50.9  %
 PassportCard/DavidShield                        120.0            8.7             95.0           12.1
 Elementum Holdings L.P.                          45.0            3.3             55.1            7.0
 Other unconsolidated entities                    34.4            2.5             42.4            5.4
 Total unconsolidated entities                   868.9                      

593.1

 Bank loan fund                                  163.0           11.8                -              -
 Private equity funds and hedge funds            153.8           11.2            121.2           15.4
 Lloyd's trust deposits                          113.8            8.3                -              -
 ILS funds                                        51.9            3.8             51.4            6.5
 Private debt investments                           14.1          1.0               21.1          2.7
 Other                                            12.3            0.8                -              -

Total other long-term investments $1,377.8 100.0% $786.8 100.0%



Foreign Currency Exposure

As of December 31, 2021, White Mountains had foreign currency exposure on $311
million of net assets primarily related to Ark's non-U.S. business, NSM's
U.K.-based operations, Kudu's non-U.S. Participation Contracts, and certain
other foreign consolidated and unconsolidated entities.
The following table presents the fair value of White Mountains's foreign
denominated net assets (net liabilities) by segment as of December 31, 2021:

Currency                                                                                                       Total Fair        % of Total Shareholders'
$ in Millions                   Ark                NSM               Kudu            Other Operations            Value                    Equity
CAD                         $    55.4          $       -          $  81.3          $               -          $   136.7                            3.7  %
GBP                               7.7              118.6                -                          -              126.3                            3.4
AUD                              23.3                  -             44.7                          -               68.0                            1.8
EUR                             (56.2)                 -                -                       32.3              (23.9)                           (.6)
All other                           -                  -                -                        3.6                3.6                             .1
Total                       $    30.2          $   118.6          $ 126.0          $            35.9          $   310.7                            8.4  %


                                       63
--------------------------------------------------------------------------------

III. Income taxes

The Company and its Bermuda domiciled subsidiaries are not subject to Bermuda
income tax under current Bermuda law. In the event there is a change in the
current law and taxes are imposed, the Bermuda Exempted Undertakings Tax
Protection Act of 1966 states that the Company and its Bermuda domiciled
subsidiaries would be exempt from such tax until March 31, 2035. The Company has
subsidiaries and branches that operate in various other jurisdictions around the
world that are subject to tax in the jurisdictions in which they operate. As of
December 31, 2021, the primary jurisdictions in which the Company's subsidiaries
and branches were subject to tax are Ireland, Israel, Luxembourg, the United
Kingdom and the United States.
On December 14, 2021, the OECD issued a report on the Global Anti-Base Erosion
("GloBE") rules. The GloBE rules provide for a coordinated system of taxation
intended to ensure large multinational enterprise groups pay a minimum level of
tax of 15% on the income arising in each of the jurisdictions where they
operate. It would do so by imposing a top-up tax on profits arising in a
jurisdiction whenever the effective tax rate is below the minimum rate. Expanded
guidance on the GloBE rules is forthcoming. Depending on which countries
implement legislation under the GloBE rules, the income of members of the
Company's group could be subject to higher rates of tax. While the OECD is
targeting 2023 as the year for implementation, the actual implementation will
depend on each country implementing specific legislation. The timing and impact
of these rules on the Company remain uncertain.
On January 1, 2020, White Mountains adopted ASU 2019-12, Simplifying the
Accounting for Income Taxes (ASC740) ("ASU 2019-12"). For periods subsequent to
the adoption of ASU 2019-12, White Mountains has recorded both the tax expense
related to BAM's MSC and the related valuation allowance on such taxes through
non-controlling interest equity. Prior to the adoption of ASU 2019-12, White
Mountains recorded the tax expense related to BAM's MSC directly to
non-controlling interest equity, while the valuation allowance on such taxes was
recorded through the income statement.
White Mountains reported income tax expense of $39 million in 2021 on pre-tax
loss from continuing operations of $302 million. The difference between White
Mountains's effective tax rate and the current U.S. statutory rate of 21% was
driven primarily by losses generated in jurisdictions with lower tax rates than
the United States, a full valuation allowance on net deferred tax assets in
certain U.S. operations, consisting of the WM Adams Holdings, Inc. consolidated
tax group included within the Other Operations segment and BAM, and state income
taxes. The effective rate was also different from the U.S. statutory rate of 21%
due to additional tax expense related to the revaluation of U.K. deferred tax
assets and liabilities. On June 10, 2021, the U.K. enacted an increase in its
corporate tax rate from 19% to 25% for periods after April 1, 2023. During 2021,
White Mountains increased its net U.K. deferred tax liability to reflect the
higher tax rate.
White Mountains reported income tax benefit of $21 million in 2020 on pre-tax
income from continuing operations of $645 million. The difference between White
Mountains's effective tax rate and the current U.S. federal statutory rate of
21% was driven primarily by a $131 million release of a deferred tax liability
as a result of an internal reorganization in connection with the MediaAlpha IPO
and income generated in jurisdictions with lower tax rates than the United
States. Also in 2020, $43 million of tax expense was recorded for state income
taxes, withholding taxes and the establishment of a partial valuation allowance
on deferred tax assets of various companies, entities and investments that are
included in the Other Operations segment.
White Mountains reported income tax expense of $29 million in 2019 on pre-tax
income from continuing operations of $405 million. The difference between White
Mountains's effective tax rate and the current U.S. federal statutory rate of
21% was driven primarily by income generated in jurisdictions with lower tax
rates than the United States, state income taxes and a tax benefit recorded at
BAM related to its MSC collected. The effective tax rate was also different from
the U.S statutory rate of 21% due to the release of a valuation allowance on the
net deferred tax assets of the U.S. consolidated group Guilford Holdings, Inc.
and subsidiaries, which included Kudu, White Mountains's investment in
MediaAlpha, WM Capital, WM Advisors and certain other entities and investments
that are included in the Other Operations segment. In 2019, BAM recorded a tax
benefit of $10 million associated with the valuation allowance on taxes related
to MSC collected that was included in the effective tax rate.

                                       64
--------------------------------------------------------------------------------

IV. Discontinued operations

Sirius Group
On April 18, 2016, White Mountains completed the sale of Sirius International
Insurance Group, Ltd. ("Sirius Group") to CM International Pte. Ltd. and CM
Bermuda Limited (collectively "CMI"). In connection with the sale, White
Mountains indemnified Sirius Group against the loss of certain interest
deductions claimed by Sirius Group related to periods prior to the sale of
Sirius Group to CMI that had been disputed by the Swedish Tax Agency (STA). In
late October 2018, the Swedish Administrative Court ruled against Sirius Group
on its appeal of the STA's denial of these interest deductions. As a result, in
2018 White Mountains recorded a loss of $17 million within net gain (loss) on
sale of discontinued operations reflecting the value of these interest
deductions.
In April 2021, the STA informed the Swedish Administrative Court of Appeal that
Sirius Group should prevail in its appeal and that the interest deductions
should not be disallowed. In June 2021, the Swedish Administrative Court of
Appeal ruled in Sirius Group's favor. As a result, in 2021 White Mountains
recorded a gain of $19 million in discontinued operations to reverse the accrued
liability, including foreign currency translation. See Note 21 - "Held for Sale
and Discontinued Operations" on page F-76.

CASH AND CAPITAL RESOURCES

Operating cash and short-term investments

Holding Company Level
The primary sources of cash for the Company and certain of its intermediate
holding companies are expected to be distributions from its insurance,
reinsurance and other operating subsidiaries, net investment income, proceeds
from sales, repayments and maturities of investments, capital raising activities
and, from time to time, proceeds from sales of operating subsidiaries. The
primary uses of cash are expected to be general and administrative expenses,
purchases of investments, payments to tax authorities, payments on and
repurchases/retirements of its debt obligations, dividend payments to holders of
the Company's common shares, distributions to non-controlling interest holders
of consolidated subsidiaries, contributions to operating subsidiaries and, from
time to time, purchases of operating subsidiaries and repurchases of the
Company's common shares.

Operating Subsidiary Level
The primary sources of cash for White Mountains's insurance, reinsurance and
other operating subsidiaries are expected to be premium and fee collections,
commissions, net investment income, proceeds from sales, repayments and
maturities of investments, contributions from holding companies and capital
raising activities. The primary uses of cash are expected to be claim payments,
policy acquisition costs, general and administrative expenses, broker commission
expenses, cost of sales, purchases of investments, payments to tax authorities,
payments on and repurchases/retirements of its debt obligations, distributions
made to holding companies, distributions to non-controlling interest holders
and, from time to time, purchases of operating subsidiaries.
Both internal and external forces influence White Mountains's financial
condition, results of operations and cash flows. Premium and fee collections,
investment returns, claim payments and cost of sales may be impacted by changing
rates of inflation and other economic conditions. Some time may lapse between
the occurrence of an insured loss, the reporting of the loss to White
Mountains's insurance and reinsurance operating subsidiaries and the settlement
of the liability for that loss. The exact timing of the payment of losses and
benefits cannot be predicted with certainty. White Mountains's insurance and
reinsurance operating subsidiaries maintain portfolios of invested assets with
varying maturities and a substantial amount of cash and short-term investments
to provide adequate liquidity for the payment of claims.
Management believes that White Mountains's cash balances, cash flows from
operations and routine sales and maturities of investments are adequate to meet
expected cash requirements for the foreseeable future on both a holding company
and insurance, reinsurance and other operating subsidiary level.

                                       65
--------------------------------------------------------------------------------

Dividend capacity

Here is a description of the dividend capacity of The White Mountains
reinsurance and other operating subsidiaries:

HG Global/BAM
As of December 31, 2021, HG Global had $619 million face value of preferred
shares outstanding, of which White Mountains owned 96.9%. Holders of the HG
Global preferred shares receive cumulative dividends at a fixed annual rate of
6.0% on a quarterly basis, when and if declared by HG Global. During 2021, HG
Global declared and paid a $22 million preferred dividend, of which $21 million
was paid to White Mountains. As of December 31, 2021, HG Global had accrued $415
million of dividends payable to holders of its preferred shares, of which $401
million was payable to White Mountains and eliminated in consolidation. As of
December 31, 2021, HG Global and its subsidiaries had $3 million of cash outside
of HG Re.
HG Re is a Special Purpose Insurer subject to regulation and supervision by the
BMA but does not require regulatory approval to pay dividends. However, HG Re's
dividend capacity is limited to amounts held outside of the Collateral Trusts
pursuant to the FLRT with BAM. As of December 31, 2021, HG Re had $760 million
of statutory capital and surplus and $852 million of assets held in the
Collateral Trusts pursuant to the FLRT with BAM.
On a monthly basis, BAM deposits cash equal to ceded premiums, net of ceding
commissions, due to HG Re under the FLRT directly into the Regulation 114
Trust.  The Regulation 114 Trust target balance is equal to gross ceded unearned
premiums and unpaid ceded loss and LAE, if any.  If, at the end of any quarter,
the Regulation 114 Trust balance is below the target balance, funds will be
withdrawn from the Supplemental Trust and deposited into the Regulation 114
Trust in an amount equal to the shortfall.  If, at the end of any quarter, the
Regulation 114 Trust balance is above 102% of the target balance, funds will be
withdrawn from the Regulation 114 Trust and deposited into the Supplemental
Trust.
The Supplemental Trust Target Balance is $603 million, less the amount of cash
and securities in the Regulation 114 Trust in excess of its target balance. 

Yes,

at the end of each quarter, the Additional trust the balance exceeds the
Additional trust target balance, this excess can be distributed to HG Re.

the

distribution will be made first as an assignment of accrued interest on the BAM
Surplus Notes and second in cash and/or fixed income securities.  As the BAM
Surplus Notes are repaid over time, the BAM Surplus Notes will be replaced in
the Supplemental Trust by cash and fixed income securities.
As of December 31, 2021, the Collateral Trusts held assets of $852 million,
which included $481 million of cash and investments, $365 million of BAM Surplus
Notes and $6 million of interest receivable on the BAM Surplus Notes.
As of December 31, 2021, HG Re had $9 million of cash and investments and $117
million of accrued interest on the BAM Surplus Notes held outside the Collateral
Trusts.
Through 2024, the interest rate on the BAM Surplus Notes is a variable rate
equal to the one-year U.S. Treasury rate plus 300 basis points, set annually.
During 2022, the interest rate on the BAM Surplus Notes will be 3.2%. Beginning
in 2025, the interest rate will be fixed at the higher of the then current
variable rate or 8.0%. BAM is required to seek regulatory approval to pay
interest and principal on the BAM Surplus Notes only to the extent that its
remaining qualified statutory capital and other capital resources continue to
support its outstanding obligations, its business plan and its "AA/stable"
rating from Standard & Poor's. No payment of principal or interest on the BAM
Surplus Notes may be made without the approval of the NYDFS.
In December 2021, BAM made a $34 million cash payment of principal and interest
on the BAM Surplus Notes held by HG Global. Of this payment, $24 million was a
repayment of principal held in the Supplemental Trust and $10 million was a
payment of accrued interest held outside the Supplemental Trust.

Ark

During any 12-month period, GAIL, a class 4 licensed Bermuda insurer, has the
ability to (i) make capital distributions based on 15% of its total statutory
capital per the previous year's statutory financial statements, or (ii) make
dividend payments based on 25% of its total statutory capital and surplus per
the previous year's statutory financial statements, without prior approval of
Bermuda regulatory authorities. Accordingly, White Mountains expects GAIL will
have the ability to make capital distributions of $114 million during 2022,
which is equal to 15% of its December 31, 2021 statutory capital of $758
million, subject to meeting all appropriate liquidity and solvency requirements
and the filing of its December 31, 2021 statutory financial statements. During
2021, GAIL did not pay a dividend to its immediate parent.
As of December 31, 2021, Ark and its intermediate holding companies had $4
million of net unrestricted cash, short-term investments and fixed maturity
investments outside of its regulated and unregulated insurance and reinsurance
operating subsidiaries. During 2021, Ark did not pay any dividends to its
immediate parent.


                                       66
--------------------------------------------------------------------------------

NSM

During 2021, NSM distributed $8 million to unitholders, substantially all of
which was paid to White Mountains. As of December 31, 2021, NSM had $22 million
of net unrestricted cash and short-term investments.

Kudu

During 2021, Kudu distributed $19 million to unitholders, substantially all of
which was paid to White Mountains. As of December 31, 2021, Kudu had $17 million
of net unrestricted cash and short-term investments.
Other Operations
During 2021, White Mountains paid a $3 million common share dividend. As of
December 31, 2021, the Company and its intermediate holding companies had
$454 million of net unrestricted cash, short-term investments and fixed maturity
investments, $262 million of MediaAlpha common stock, and $171 million of
private equity funds and ILS funds.

Funding

The following table summarizes The White Mountains capital structure at
December 31, 2021 and 2020:

                                                                         December 31,
 $ in Millions                                                       2021            2020

 Ark 2007 Subordinated Notes (1)                                 $    30.0  

$-

 Ark 2021 Subordinated Notes (1)(2)                                  155.9               -
 NSM Bank Facility (1)(2)                                            271.2           271.3
 Other NSM debt (1)                                                     .9             1.3
 Kudu Credit Facility (1)(2)                                         218.2               -

 Kudu Bank Facility (1)(2)                                               -            86.3
 Other Operations debt (1)(2)                                         16.8            17.5
 Total debt                                                          693.0           376.4
 Non-controlling interests - excluding BAM                           280.6  

35.2

 Total White Mountains's common shareholders' equity               3,548.1  

3,906.0

 Total capital                                                     4,521.7  

4,317.6

Time value discount on expected future payments on the BAM

 Surplus Notes (3)                                                  (125.9) 

(142.5)

 HG Global's unearned premium reserve (3)                            214.6  

190.0

 HG Global's net deferred acquisition costs (3)                      (60.8) 

(52.4)

 Total adjusted capital                                          $ 4,549.6  

$4,312.7

 Total debt to total adjusted capital                                 15.2  

% 8.7%


(1)See Note 7 - "Debt" for details of debt arrangements.
(2) Net of unamortized issuance costs
(3) Amount reflects White Mountains's preferred share ownership in HG Global of
96.9%.

Management believes that White Mountains has the flexibility and capacity to
obtain funds externally through debt or equity financing on both a short-term
and long-term basis. However, White Mountains can provide no assurance that, if
needed, it would be able to obtain additional debt or equity financing on
satisfactory terms, if at all.
It is possible that, in the future, one or more of the rating agencies may lower
White Mountains's existing ratings. If one or more of its ratings were lowered,
White Mountains could incur higher borrowing costs on future borrowings and its
ability to access the capital markets could be impacted.

Compliance with commitments
From December 31, 2021, White Mountains was compliant in all materials
complies with all the covenants of all its debt instruments.

                                       67
--------------------------------------------------------------------------------

Contractual obligations and commitments

The following table shows The White Mountains important contractual obligations
and commitments from December 31, 2021:

                                            Due in Less         Due in Two to         Due in Four           Due After
Millions                                   Than One Year         Three Years         to Five Years          Five Years            Total
Loss and LAE reserves (1)                  $     326.7          $     365.7          $     122.0          $      80.3          $   894.7
Debt                                               5.7                 14.5                221.6                470.4              712.2
Interest on debt                                  42.8                 78.8                 65.9                158.7              346.2
Long-term incentive compensation                  25.9                 31.6                    -                    -               57.5
Contingent consideration (2)                      38.2                    -                    -                    -               38.2
Operating leases (3)                              10.9                 18.4                 11.1                 11.9               52.3
Total contractual obligations and
commitments                                $     450.2          $     509.0 

$420.6 $721.3 $2,101.1


(1) Represents expected future cash outflows resulting from loss and LAE
payments. The amounts presented are gross of reinsurance recoverables on unpaid
losses of $428.9 as of December 31, 2021.
(2) The contingent consideration liabilities are primarily related to White
Mountains's acquisition of Ark and NSM's previous acquisitions of KBK and its
other U.K.-based operations. See Note 2 - "Significant Transactions" on page
F-17.
(3) Amounts include BAM's operating lease amounts of $2.2, $4.0, $2.4 and $0
that are due in less than one year, two to three years, four to five years, and
due after five years, which are attributed to non-controlling interests.

The long-term incentive compensation balances included in the table above
include amounts payable for performance shares. Exact amounts to be paid for
performance shares cannot be predicted with certainty, as the ultimate amounts
of these liabilities are based on the future performance of White Mountains and
the market price of the Company's common shares at the time the payments are
made.
The estimated payments reflected in the table are based on current accrual
factors (including performance relative to targets and common share price) and
assume that all outstanding balances were 100% vested as of December 31, 2021.
There are no provisions within White Mountains's operating leasing agreements
that would trigger acceleration of future lease payments.
White Mountains does not finance its operations through the securitization of
its trade receivables, through special purpose entities or through synthetic
leases. Further, White Mountains has not entered into any material arrangements
requiring it to guarantee payment of third-party debt or lease payments or to
fund losses of an unconsolidated special purpose entity.
White Mountains also has future binding commitments to fund certain other
long-term investments. These commitments, which totaled approximately $44
million as of December 31, 2021, do not have fixed funding dates and, are
therefore, excluded from the table above.

Share buyback programs

White Mountains's board of directors has authorized the Company to repurchase
its common shares from time to time, subject to market conditions. The
repurchase authorizations do not have a stated expiration date. As of December
31, 2021, White Mountains may repurchase an additional 451,224 shares under
these board authorizations. In addition, from time to time White Mountains has
also repurchased its common shares through tender offers that were separately
approved by its board of directors.
The following table presents common shares repurchased by the Company as well as
the average price per share as a percent of December 31, 2021 adjusted book
value per share and market value per share.

                                                                                  Average Price Per       Average Price Per
                                                                                    Share as % of           Share as % of
                                                             Average              December 31, 2021       December 31, 2021
                            Shares            Cost            Price                 Adjusted Book            Market Value
     Year Ended          Repurchased       (Millions)       Per Share              Value Per Share            Per Share

December 31, 2021         98,511          $     107.5      $ 1,091.29                    92%                     108%

December 31, 2020         99,087          $      85.1      $   858.81                    72%                     85%
                                                                                 .
December 31, 2019          5,679          $       4.9      $   857.69                    72%                     85%



                                       68
--------------------------------------------------------------------------------

Cash flow

Detailed information about The White Mountains cash flow in 2021, 2020
and 2019 follows:

Cash flow from operations for the years ended 2021, 2020 and 2019

Net cash flows provided from (used for) operations was $39 million, $(61)
million and $(121) million for the years ended December 31, 2021, 2020 and 2019.
Cash provided from operations was higher in 2021 compared to 2020, driven
primarily by the cash inflow from Ark's operations, partially offset by the
deployments in Kudu's participation contracts and Ark's transaction expenses.
Cash used for operations was lower in 2020 compared to 2019, driven primarily by
$55 million of net investment income received in 2020 from a dividend
recapitalization at MediaAlpha. White Mountains does not believe these trends
will have a meaningful impact on its future liquidity or its ability to meet its
future cash requirements. As of December 31, 2021, the Company and its
intermediate holding companies had $454 million of net unrestricted cash,
short-term investments and fixed maturity investments, $262 million of
MediaAlpha common stock, and $171 million of private equity funds and ILS funds.

Cash flow from investing and financing activities for the year ended December
31, 2021

Financing and Other Capital Activities
During 2021, the Company declared and paid a $3 million cash dividend to its
common shareholders.
During 2021, White Mountains repurchased and retired 98,511 of its common shares
for $108 million, 7,218 of which were repurchased under employee benefit plans
for statutory withholding tax payments.
During 2021, BAM received $62 million in MSC.
During 2021, BAM repaid $24 million of principal and paid $10 million of accrued
interest on the BAM Surplus Notes.
During 2021, Ark issued $163 million face value floating rate unsecured
subordinated notes at par in three transactions for proceeds of $158 million,
net of debt issuance costs, and repaid €12 million ($14 million based upon the
foreign exchange spot rate at the date of repayment) of the outstanding
principal balance on the subordinated note to Dekania Europe CDO II plc ("Ark
2007 Notes Tranche 2").
During 2021, NSM repaid $3 million in term loans, borrowed $35 million in
revolving loans to fund the acquisition of J.C. Taylor and repaid $32 million in
revolving loans under the Ares Capital Corporation secured credit facility (the
"NSM Bank Facility").
During 2021, Kudu borrowed $3 million in term loans under the Kudu Bank
Facility.
On March 23, 2021, Kudu entered into the Kudu Credit Facility with an initial
draw of $102 million, of which $92 million was used to repay the outstanding
principal balance on its term loans under the Kudu Bank Facility. During 2021,
Kudu borrowed an additional $130 million and repaid $7 million in term loans
under the Kudu Credit Facility.
During 2021, White Mountains's Other Operations segment borrowed $3 million and
repaid $8 million under its three secured credit facilities.

Acquisitions and Dispositions
On January 1, 2021 White Mountains completed the Ark Transaction, which included
contributing $605 million of equity capital to Ark, at a pre-money valuation of
$300 million, and purchasing $41 million of shares from certain selling
shareholders. In the fourth quarter of 2020, White Mountains prefunded/placed in
escrow a total of $646 million in preparation for closing the Ark Transaction.
On March 23, 2021, MediaAlpha completed a secondary offering of 8.05 million
shares. In the secondary offering, White Mountains sold 3.6 million shares at
$46.00 per share ($44.62 per share net of underwriting fees) for net proceeds of
$160 million.
On August 6, 2021, NSM acquired 100% of J.C. Taylor for $50 million of upfront
cash consideration.


                                       69
--------------------------------------------------------------------------------

Cash flow from investing and financing activities for the year ended December
31, 2020

Financing and Other Capital Activities
During 2020, the Company declared and paid a $3 million cash dividend to its
common shareholders.
During 2020, White Mountains repurchased and retired 99,087 of its common shares
for $85 million, 5,899 of which were repurchased under employee benefit plans
for statutory withholding tax payments.
During 2020, BAM received $69 million in MSC.
During 2020, BAM repaid $70 million of principal and paid $25 million of accrued
interest on the BAM Surplus Notes.
During 2020, HG Global declared and paid $23 million of preferred dividends, of
which $22 million was paid to White Mountains.
During 2020, NSM borrowed £43 million ($52 million based upon the foreign
exchange spot rate at the date of acquisition) of term loans under the NSM Bank
Facility to fund the acquisition of Kingsbridge. Additionally, during 2020 NSM
repaid $2 million of term loans under the NSM Bank Facility.
During 2020, Kudu borrowed $32 million in term loans under the Kudu Bank
Facility.
During 2020, White Mountains's Other Operations segment made no borrowings and
repaid $2 million in term loans under its credit facilities.

Acquisitions and Dispositions
On April 7, 2020, NSM acquired 100% of Kingsbridge for £107 million ($132
million based upon the foreign exchange spot rate at the date of acquisition).
On May 7, 2020, White Mountains made an additional $15 million investment in
PassportCard/DavidShield.
On October 30, 2020, MediaAlpha completed its initial public offering. In the
offering, White Mountains sold 3,609,894 shares and received total proceeds of
$64 million. White Mountains also received $55 million of net proceeds related
to a dividend recapitalization at MediaAlpha, which was recorded as net
investment income.
In the fourth quarter of 2020, White Mountains pre-funded/placed in escrow a
total of $646 million in preparation for closing the Ark Transaction.

Cash flow from investing and financing activities for the year ended December
31, 2019

Financing and Other Capital Activities
During 2019, the Company declared and paid a $3 million cash dividend to its
common shareholders.
During 2019, White Mountains repurchased and retired 5,679 of its common shares
for $5 million, all of which were repurchased under employee benefit plans for
statutory withholding tax payments.
During 2019, BAM received $55 million in MSC.
During 2019, BAM repaid $24 million of principal and paid $8 million of accrued
interest on the BAM Surplus Notes.
During 2019, NSM borrowed $43 million of term loans under the NSM Bank Facility,
which included $20 million and $23 million to fund the acquisitions of Embrace
and the Renewal Rights from AIG, and $7 million of revolving credit loans.
Additionally, during 2019 NSM repaid $2 million of term loans and $7 million of
revolving credit loans under the NSM Bank Facility.
During 2019, Kudu borrowed $57 million in term loans under the Kudu Bank
Facility and distributed $54 million to unitholders, of which $53 million was
paid to White Mountains. As of December 31, 2019, Kudu had not made any payment
of principal on the Kudu Bank Facility.

Acquisitions and Dispositions
On February 26, 2019, White Mountains received net cash proceeds of $89 million
from the 2019 MediaAlpha Transaction.
On April 1, 2019, NSM acquired 100% of Embrace for $72 million, net of cash
acquired.
On April 4, 2019, White Mountains completed the Kudu Transaction for $81
million. In addition, White Mountains assumed all of Oaktree's unfunded capital
commitments to Kudu, increasing White Mountains's total capital commitment to
$250 million. During the fourth quarter of 2019, White Mountains increased its
total capital commitment to Kudu by an additional $100 million to $350 million.
Also during the fourth quarter of 2019, Kudu obtained a committed $124 million
credit facility.
On May 31, 2019, White Mountains completed the Elementum Transaction for $55
million. As part of the Elementum Transaction, White Mountains also committed to
invest $50 million in ILS funds managed by Elementum.
On June 28, 2019, NSM acquired the Renewal Rights from AIG for $83 million.

                                       70
--------------------------------------------------------------------------------

TRANSACTIONS WITH RELATED PARTIES

White Mountains has no related party transactions to report to the
December 31, 2021.

NON-GAAP FINANCIAL MEASURES

This report includes thirteen non-GAAP financial measures that have been
reconciled to their most comparable GAAP financial measures.

Adjusted book value per share
Adjusted book value per share is a non-GAAP financial measure which is derived
by adjusting (i) the GAAP book value per share numerator and (ii) the common
shares outstanding denominator, as described below.
The GAAP book value per share numerator is adjusted (i) to include a discount
for the time value of money arising from the modeled timing of cash payments of
principal and interest on the BAM Surplus Notes and (ii) to add back the
unearned premium reserve, net of deferred acquisition costs, at HG Global.
Under GAAP, White Mountains is required to carry the BAM Surplus Notes,
including accrued interest, at nominal value with no consideration for time
value of money. Based on a debt service model that forecasts operating results
for BAM through maturity of the BAM Surplus Notes, the present value of the BAM
Surplus Notes, including accrued interest and using an 8.0% discount rate, was
estimated to be $130 million, $147 million and $157 million less than the
nominal GAAP carrying values as of December 31, 2021, 2020 and 2019,
respectively.
The value of HG Global's unearned premium reserve, net of deferred acquisition
costs, was $159 million, $142 million and $119 million as of December 31, 2021,
2020 and 2019, respectively.
White Mountains believes these adjustments are useful to management and
investors in analyzing the intrinsic value of HG Global, including the value of
the BAM Surplus Notes and the value of the in-force business at HG Re, HG
Global's reinsurance subsidiary.
The denominator used in the calculation of adjusted book value per share equals
the number of common shares outstanding adjusted to exclude unearned restricted
common shares, the compensation cost of which, at the date of calculation, has
yet to be amortized. Restricted common shares are earned on a straight-line
basis over their vesting periods. The reconciliation of GAAP book value per
share to adjusted book value per share is included on page 42.

Growth in adjusted book value per share excluding MediaAlpha
The growth in adjusted book value per share excluding net realized and
unrealized investment losses from White Mountains's investment in MediaAlpha on
page 42 is a non-GAAP financial measure. White Mountains believes this measure
to be useful to management and investors by showing the underlying performance
of White Mountains in 2021 without regard to the impact of changes in
MediaAlpha's share price. A reconciliation from GAAP to the reported percentages
is as follows:

                                                                                      Year Ended
                                                                                   December 31, 2021
Growth in GAAP book value per share                                                     (6.5)%

Adjustments to book value per share (see reconciliation page 42)

              0.8%

Eliminate net realized and unrealized investment losses

   White Mountains's investment in MediaAlpha                                            10.0%

Growth in adjusted book value per share excluding net realized and

   unrealized investment losses from White Mountains's investment
   in MediaAlpha                                                                         4.3%



BAM's gross written premiums and MSC from new business
BAM's gross written premiums and MSC from new business is a non-GAAP financial
measure, which is derived by adjusting gross written premiums and MSC collected
(i) to include the present value of future installment MSC not yet collected and
(ii) to exclude the impact of gross written premium adjustments related to
policies closed in prior periods. White Mountains believes these adjustments are
useful to management and investors in evaluating the volume and pricing of new
business closed during the period. The reconciliation from GAAP gross written
premiums to gross written premiums and MSC from new business is included on page
46.

                                       71
--------------------------------------------------------------------------------

Ark's adjusted loss and loss adjustment expense, adjusted insurance acquisition
expense, adjusted other underwriting expense and adjusted combined ratios
Ark's adjusted loss and loss adjustment expense ratio, adjusted insurance
acquisition expense ratio, adjusted other underwriting expense ratio and
adjusted combined ratio are non-GAAP financial measures, which are derived by
adjusting the GAAP ratios to add back the impact of whole-account quota-share
reinsurance arrangements related to TPC Providers for the Syndicates. The impact
of these reinsurance arrangements relates to years of account prior to the Ark
Transaction. White Mountains believes these adjustments are useful to management
and investors in evaluating Ark's results on a fully aligned basis (i.e., 100%
of the Syndicates' results). The reconciliation from the GAAP ratios to the
adjusted ratios is included on page 52.

NSM's EBITDA and NSM's adjusted EBITDA
NSM's EBITDA and adjusted EBITDA are non-GAAP financial measures. EBITDA is a
non-GAAP financial measure that excludes interest expense on debt, income tax
(expense) benefit, depreciation and amortization of other intangible assets from
GAAP net income (loss). Adjusted EBITDA is a non-GAAP financial measure that
excludes certain other items in GAAP net income (loss) in addition to those
excluded from EBITDA. The adjustments relate to (i) change in fair value of
contingent consideration liabilities, (ii) non-cash equity-based compensation
expense, (iii) impairments of intangible assets, (iv) loss on assets held for
sale, (v) transaction expenses, (vi) fair value purchase accounting adjustment
for deferred revenue, (vii) investments made in the development of new business
lines, (viii) restructuring expenses and (ix) legal settlements. A description
of each follows:
•Change in fair value of contingent consideration liabilities - Contingent
consideration liabilities are amounts payable to the sellers of businesses
purchased by NSM that are contingent on the earnings of such businesses in
periods subsequent to their acquisition. Under GAAP, contingent consideration
liabilities are initially recorded at fair value as part of purchase accounting,
with the periodic change in the fair value of these liabilities recorded as
income or an expense.
•Non-cash equity-based compensation expense - Represents non-cash expenses
related to NSM's management compensation emanating from the grants of equity
units.
•Impairments of intangible assets - Represents expense related to NSM's
write-off of intangible assets. For the periods presented, the impairments
related primarily to NSM's write-off of intangible assets in its U.K. vertical.
The impairments related to lower premium volumes, including due to the impact of
the COVID-19 pandemic, and certain reorganization initiatives in the U.K.
vertical.
• Loss on assets held for sale - Represents the loss on net assets held for sale
related to the Fresh Insurance motor business.
•Transaction expenses - Represents costs directly related to NSM's mergers and
acquisitions activity, such as transaction-related compensation, banking,
accounting and external lawyer fees, which are not capitalized and are expensed
under GAAP.
•Fair value purchase accounting adjustment for deferred revenue - Represents the
amount of deferred revenue that had already been collected but subsequently
written down in connection with establishing the fair value of deferred revenue
as part of NSM's purchase accounting for Embrace.
•Investments made in the development of new business lines - Represents the net
loss related to the start-up of newly established lines of business, which NSM
views as investments.
•Restructuring expenses - Represents expenses associated with eliminating
redundant work force and facilities that often arise as a result of NSM's
post-acquisition integration strategies. For the periods presented, this
adjustment relates primarily to NSM's expenses incurred in certain
reorganization initiatives in the U.K. vertical.
•Legal settlements - Represents amounts recognized from legal settlements.
White Mountains believes that these non-GAAP financial measures are useful to
management and investors in evaluating NSM's performance. See page 53 for the
reconciliation of NSM's GAAP net income (loss) to EBITDA and adjusted EBITDA.


                                       72
--------------------------------------------------------------------------------

Kudu's EBITDA and Kudu's adjusted EBITDA
Kudu's EBITDA and adjusted EBITDA are non-GAAP financial measures. EBITDA is a
non-GAAP financial measure that excludes interest expense on debt, income tax
(expense) benefit, depreciation and amortization of other intangible assets from
GAAP net income (loss). Adjusted EBITDA is a non-GAAP financial measure that
excludes certain other items in GAAP net income (loss) in addition to those
excluded from EBITDA. The adjustments relate to (i) net realized and unrealized
investment gains (losses) on Kudu's Participation Contracts, (ii) non-cash
equity-based compensation expense and (iii) transaction expenses. A description
of each adjustment follows:
•Net realized and unrealized investment gains (losses) - Represents net
unrealized investment gains and losses on Kudu's Participation Contracts, which
are recorded at fair value under GAAP, and realized investment gains and losses
on Kudu's Participation Contracts sold during the period.
•Non-cash equity-based compensation expense - Represents non-cash expenses
related to Kudu's management compensation that are settled with equity units in
Kudu.
•Transaction expenses - Represents costs directly related to Kudu's mergers and
acquisitions activity, such as external lawyer, banker, consulting and placement
agent fees, which are not capitalized and are expensed under GAAP.
White Mountains believes that these non-GAAP financial measures are useful to
management and investors in evaluating Kudu's performance. The reconciliation of
Kudu's GAAP net income (loss) to EBITDA and adjusted EBITDA is included on page
56.

Total consolidated portfolio returns excluding MediaAlpha
Total consolidated portfolio return excluding MediaAlpha is a non-GAAP financial
measure that removes the net investment income and net realized and unrealized
investment gains (losses) from White Mountains's investment in MediaAlpha. White
Mountains believes this measure to be useful to management and investors by
showing the underlying performance of White Mountains's investment portfolio
without regard to MediaAlpha. The following tables present reconciliations from
GAAP to the reported percentages:

                                                For the Year Ended December 31, 2021                                  For the Year Months Ended December 31, 2020
                                                                                 Returns - Excluding                                                     Returns - Excluding
                                  GAAP Returns          Remove MediaAlpha            MediaAlpha             GAAP Returns        Remove MediaAlpha            MediaAlpha
Total consolidated
portfolio
  returns                                (3.4) %                    9.8  %                    6.4  %              31.9  %                 (27.3) %                    4.6  %



Adjusted capital
Total capital at White Mountains is comprised of White Mountains's common
shareholders' equity, debt and non-controlling interests other than
non-controlling interests attributable to BAM. Total adjusted capital is a
non-GAAP financial measure, which is derived by adjusting total capital (i) to
include a discount for the time value of money arising from the expected timing
of cash payments of principal and interest on the BAM Surplus Notes and (ii) to
add back the unearned premium reserve, net of deferred acquisition costs, at HG
Global. The reconciliation of total capital to total adjusted capital is
included on page 67.

CRITICAL ACCOUNTING ESTIMATES

Management's Discussion and Analysis of Financial Condition and Results of
Operations discuss the Company's consolidated financial statements, which have
been prepared in accordance with GAAP. The financial statements presented herein
include all adjustments considered necessary by management to fairly present the
financial condition, results of operations and cash flows of White Mountains.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities as of the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Certain
of these estimates are considered critical in that they involve a higher degree
of judgment and are subject to a significant degree of variability. On an
ongoing basis, management evaluates its estimates and bases its estimates on
historical experience and on various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources.

                                       73
--------------------------------------------------------------------------------

1. Fair value measurements

General

White Mountains records certain assets and liabilities at fair value in its
consolidated financial statements, with changes therein recognized in current
period earnings. In addition, White Mountains discloses estimated fair value for
certain liabilities measured at historical or amortized cost. Fair value is
defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants (an exit
price) at a particular measurement date. Fair value measurements are categorized
into a hierarchy that distinguishes between inputs based on market data from
independent sources (observable inputs) and a reporting entity's internal
assumptions based upon the best information available when external market data
is limited or unavailable (unobservable inputs). Quoted prices in active markets
for identical assets have the highest priority ("Level 1"), followed by
observable inputs other than quoted prices including prices for similar but not
identical assets or liabilities ("Level 2"), and unobservable inputs, including
the reporting entity's estimates of the assumptions that market participants
would use, having the lowest priority ("Level 3").
Assets and liabilities carried at fair value include substantially all of the
investment portfolio, and derivative instruments, both exchange-traded and over
the counter instruments. Valuation of assets and liabilities measured at fair
value require management to make estimates and apply judgment to matters that
may carry a significant degree of uncertainty. In determining its estimates of
fair value, White Mountains uses a variety of valuation approaches and inputs.
Whenever possible, White Mountains estimates fair value using valuation methods
that maximize the use of quoted market prices or other observable inputs. Where
appropriate, assets and liabilities measured at fair value have been adjusted
for the effect of counterparty credit risk.

Invested assets

White Mountains uses outside pricing services and brokers to assist in
determining fair values. The outside pricing services White Mountains uses have
indicated that they will only provide prices where observable inputs are
available. As of December 31, 2021, approximately 68% of the investment
portfolio recorded at fair value was priced based upon quoted market prices or
other observable inputs.

Level 1 Measurements
Investments valued using Level 1 inputs include White Mountains's fixed maturity
investments, primarily investments in U.S. Treasuries and short-term
investments, which include U.S. Treasury Bills, common equity securities, and
its investment in MediaAlpha following the MediaAlpha IPO. For investments in
active markets, White Mountains uses the quoted market prices provided by
outside pricing services to determine fair value.

Level 2 Measurements
Investments valued using Level 2 inputs include fixed maturity investments which
have been disaggregated into classes, including debt securities issued by
corporations, municipal obligations, mortgage and asset-backed securities and
collateralized loan obligations. Investments valued using Level 2 inputs also
include certain common equity listed funds traded on foreign exchanges, which
White Mountains values using the fund manager's published NAV to account for the
difference in market close times.
In circumstances where quoted market prices are unavailable or are not
considered reasonable, White Mountains estimates the fair value using industry
standard pricing methodologies and observable inputs such as benchmark yields,
reported trades, broker-dealer quotes, issuer spreads, benchmark securities,
bids, offers, credit ratings, prepayment speeds, reference data including
research publications and other relevant inputs. Given that many fixed maturity
investments do not trade on a daily basis, the outside pricing services evaluate
a wide range of fixed maturity investments by regularly drawing parallels from
recent trades and quotes of comparable securities with similar features. The
characteristics used to identify comparable fixed maturity investments vary by
asset type and take into account market convention.

                                       74
--------------------------------------------------------------------------------

White Mountains's process to assess the reasonableness of the market prices
obtained from the outside pricing sources covers substantially all of its fixed
maturity investments and includes, but is not limited to, the evaluation of
pricing methodologies and a review of the pricing services' quality control
procedures on at least an annual basis, a comparison of its invested asset
prices obtained from alternate independent pricing vendors on at least a
semi-annual basis, monthly analytical reviews of certain prices and a review of
the underlying assumptions utilized by the pricing services for select
measurements on an ad hoc basis throughout the year. White Mountains also
performs back-testing of selected investment sales activity to determine whether
there are any significant differences between the market price used to value the
security prior to sale and the actual sale price of the security on an ad hoc
basis throughout the year. Prices provided by the pricing services that vary by
more than $0.5 million and 5% from the expected price based on these assessment
procedures are considered outliers, as are prices that have not changed from
period to period and prices that have trended unusually compared to market
conditions. In circumstances where the results of White Mountains's review
process does not appear to support the market price provided by the pricing
services, White Mountains challenges the vendor provided price. If White
Mountains cannot gain satisfactory evidence to support the challenged price,
White Mountains will rely upon its own internal pricing methodologies to
estimate the fair value of the security in question.
The valuation process described above is generally applicable to all of White
Mountains's fixed maturity investments. The techniques and inputs specific to
asset classes within White Mountains's fixed maturity investments for Level 2
securities that use observable inputs are as follows:

Debt Securities Issued by Corporations:
The fair value of debt securities issued by corporations is determined from a
pricing evaluation technique that uses information from market sources and
integrates relative credit information, observed market movements, and sector
news. Key inputs include benchmark yields, reported trades, broker-dealer
quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers,
and reference data including sector, coupon, credit quality ratings, duration,
credit enhancements, early redemption features and market research publications.

Municipal Obligations:
The fair value of municipal obligations is determined from a pricing evaluation
technique that uses information from market makers, brokers-dealers, buy-side
firms, and analysts along with general market information. Key inputs include
benchmark yields, reported trades, issuer financial statements, material event
notices and new issue data, as well as broker-dealer quotes, issuer spreads,
two-sided markets, benchmark securities, bids, offers, and reference data
including type, coupon, credit quality ratings, duration, credit enhancements,
geographic location and market research publications.

Mortgage and Asset-Backed Securities and Collateralized Loan Obligations:
The fair value of mortgage and asset-backed securities and collateralized loan
obligations is determined from a pricing evaluation technique that uses
information from market sources and leveraging similar securities. Key inputs
include benchmark yields, reported trades, underlying tranche cash flow data,
collateral performance, plus new issue data, as well as broker-dealer quotes,
issuer spreads, two-sided markets, benchmark securities, bids, offers, and
reference data including issuer, vintage, loan type, collateral attributes,
prepayment speeds, default rates, recovery rates, cash flow stress testing,
credit quality ratings and market research publications.


                                       75
--------------------------------------------------------------------------------

Level 3 Measurements
Fair value estimates for investments that trade infrequently and have few or no
quoted market prices or other observable inputs are classified as Level 3
measurements. Investments valued using Level 3 fair value estimates are based
upon unobservable inputs and include investments in certain fixed maturity
investments, common equity securities and other long-term investments where
quoted market prices or other observable inputs are unavailable or are not
considered reliable or reasonable.
Level 3 valuations are generated from techniques that use assumptions not
observable in the market. These unobservable inputs reflect White Mountains's
assumptions of what market participants would use in valuing the investment. In
certain circumstances, investment securities may start out as Level 3 when they
are originally issued, but as observable inputs become available in the market,
they may be reclassified to Level 2. Transfers of securities between levels are
based on investments held as of the beginning of the period.

Other Long-Term Investments
As of December 31, 2021, White Mountains owned a portfolio of other long-term
investments valued at $1.4 billion, that consisted primarily of unconsolidated
entities, including Kudu's Participation Contracts, a bank loan fund, private
equity funds, a hedge fund, Lloyd's trust deposits, ILS funds and private debt
investments. As of December 31, 2021, $891 million of White Mountains's other
long-term investments consisting primarily of unconsolidated entities, including
Kudu's Participation Contracts and private debt investments, were classified as
Level 3 investments in the GAAP fair value hierarchy, were not actively traded
in public markets, and did not have readily observable market prices. The
determination of the fair value of these securities involves significant
management judgment and the use of valuation models and assumptions that are
inherently subjective and uncertain. See Item 1A. Risk Factors, "Our investment
portfolio includes securities that do not have readily observable market prices.
We use valuation methodologies that are inherently subjective and uncertain to
value these securities. The values of securities established using these
methodologies may never be realized, which could materially adversely affect our
results of operations and financial condition." on page 27. As of December 31,
2021, $483 million of White Mountains's other long-term investments, consisting
of a bank loan fund, private equity funds, a hedge fund, Lloyd's trust deposits,
and ILS funds, were valued at fair value using NAV as a practical expedient.
Investments for which fair value is measured at NAV using the practical
expedient are not classified within the fair value hierarchy.
White Mountains may use a variety of valuation techniques to determine fair
value depending on the nature of the investment, including a discounted cash
flow analysis, market multiple approach, cost approach and/or liquidation
analysis. On an ongoing basis, White Mountains also considers qualitative
changes in facts and circumstances, which may impact the valuation of its
unconsolidated entities, including economic and market changes in relevant
industries, changes to the entity's capital structure, business strategy and key
personnel, and any recent transactions relating to the unconsolidated entity. On
a quarterly basis, White Mountains evaluates the most recent qualitative and
quantitative information of the business and completes a fair valuation analysis
for all Level 3 other long-term investments. Periodically, and at least on an
annual basis, White Mountains uses a third-party valuation firm to complete an
independent valuation analysis of significant unconsolidated entities.
As of December 31, 2021, White Mountains's most significant other long-term
investments that are valued using Level 3 measurements include Kudu's
Participation Contracts and PassportCard/DavidShield.


                                       76
--------------------------------------------------------------------------------

Valuation of Kudu participation contracts

Kudu's Participation Contracts comprise non-controlling equity interests in the
form of revenue and earnings participation contracts. As of December 31, 2021,
the combined fair value of Kudu's Participation Contracts was $670 million. On a
quarterly basis, White Mountains values each of Kudu's Participation Contracts
using discounted cash flow models. As of December 31, 2021, one of Kudu's
Participation Contracts with a total fair value of $79 million was valued using
a probability weighted expected return method, which was based on a discounted
cash flow analysis and the expected value to be received in a pending sale
transaction.

The discounted cash flow models include key inputs such as projections of future
revenues and earnings of Kudu's clients, a discount rate and a terminal cash
flow exit multiple. The expected future cash flows are based on management
judgment, considering current performance, budgets and projected future results.
The discount rates reflect the weighted average cost of capital, considering
comparable public company data, adjusted for risks specific to the business and
industry. The terminal exit multiple is generally based on expectations of
annual cash flow to Kudu from each of its clients in the terminal year of the
cash flow model. In determining fair value, White Mountains considers factors
such as performance of underlying products and vehicles, expected client growth
rates, new fund launches, fee rates by products, capacity constraints, operating
cash flow of underlying manager and other qualitative factors, including the
assessment of key personnel. The inputs to each discounted cash flow analysis
vary depending on the nature of each client. As of December 31, 2021, White
Mountains concluded that pre-tax discount rates in the range of 18% to 23%, and
terminal cash flow exit multiples in the range of 7 to 13 times were appropriate
for the valuations of Kudu's Participation Contracts.

With a discounted cash flow analysis, small changes to inputs in a valuation
model may result in significant changes to fair value. The following table
presents the estimated effect on the fair value of Kudu's Participation
Contracts as of December 31, 2021, resulting from increases and decreases to the
discount rates and terminal cash flow exit multiples used in the discounted cash
flow analysis:

             Millions                                          Discount Rate(1)
             Terminal Exit Multiple          -2%        -1%       18% - 23%        +1%        +2%

                         +2                $ 782      $ 741      $      705      $ 670      $ 638
                         +1                $ 758      $ 720      $      685      $ 652      $ 621
                     7x to 13x             $ 739      $ 703      $      670      $ 638      $ 609
                         -1                $ 712      $ 677      $      646      $ 616      $ 588
                         -2                $ 689      $ 657      $      628      $ 600      $ 574

(1) As Kudu Participation Agreements are not subject to corporation tax
in Kudu Investment Management, LLCpre-tax discount rates are applied
pre-tax cash flows in determining fair values.

Valuation of PassportCard/DavidShield

On a quarterly basis, White Mountains values its investment in
PassportCard/DavidShield using a discounted cash flow model. The discounted cash
flow valuation model includes key inputs such as projections of future revenues
and earnings, a discount rate and a terminal revenue growth rate. The expected
future cash flows are based on management judgment, considering current
performance, budgets and projected future results. The discount rate reflects
the weighted average cost of capital, considering comparable public company
data, adjusted for risks specific to the business and industry. The terminal
revenue growth rate is based on company, industry and macroeconomic expectations
of perpetual revenue growth subsequent to the end of the discrete period in the
discounted cash flow analysis.

When making its fair value selection, which is within a range of reasonable
values derived from the discounted cash flow model, White Mountains considers
all available information, including any relevant market multiples and multiples
implied by recent transactions, facts and circumstances specific to
PassportCard/DavidShield's businesses and industries, and any infrequent or
unusual results for the period.

White Mountains concluded that an after-tax discount rate of 23% and a terminal
revenue growth rate of 4% was appropriate for the valuation of its investment in
PassportCard/DavidShield as of December 31, 2021. Utilizing these assumptions,
White Mountains determined that the fair value of its investment in
PassportCard/DavidShield was $120 million as of December 31, 2021.
Premiums and commission revenues from leisure travel insurance placed by
PassportCard declined dramatically in the year ended December 31, 2020 due to
the COVID-19 pandemic. This decline was modestly offset by increased premiums
and commission revenues from international private medical insurance placed by
DavidShield. During the third quarter of 2020, PassportCard/DavidShield
curtailed its global expansion efforts in response to the impact of the COVID-19
pandemic.

                                       77
--------------------------------------------------------------------------------

Sustained progress with COVID-19 vaccinations in Israel and abroad led to the
Israeli airport reopening in March 2021. The reopening resulted in steadily
improving leisure travel and the placement of leisure travel insurance by
PassportCard. PassportCard's premiums and commission revenues continued to
recover significantly. In the fourth quarter of 2021, PassportCard's written
premium exceeded pre-pandemic premium levels. Premiums and commission revenues
from international private medical insurance placed by DavidShield continued to
grow in 2021.
With a discounted cash flow analysis, small changes to inputs in a valuation
model may result in significant changes to fair value. The following table
presents the estimated effect on the fair value of White Mountains's investment
in PassportCard/DavidShield as of December 31, 2021, resulting from changes in
key inputs to the discounted cash flow analysis, including the discount rate and
terminal revenue growth rate:

            Millions                                               Discount Rate
            Terminal Revenue Growth Rate          21%        22%        23%        24%        25%
                          4.5%                  $ 142      $ 131      $ 122      $ 113      $ 106
                          4.0%                  $ 139      $ 129      $ 120      $ 111      $ 104
                          3.5%                  $ 136      $ 126      $ 117      $ 110      $ 102



Other Long-term Investments - NAV
White Mountains's portfolio of other long-term investments includes investments
in a bank loan fund, private equity funds, hedge funds, Lloyd's trust deposits
and ILS funds, which are valued at fair value using NAV as a practical
expedient. White Mountains employs a number of procedures to assess the
reasonableness of the fair value measurements for other long-term investments
measured at NAV, including obtaining and reviewing periodic and audited annual
financial statements as well as periodically discussing each fund's pricing with
the fund manager. However, since the fund managers do not provide sufficient
information to evaluate the pricing methods and inputs for each underlying
investment, White Mountains considers the valuation inputs to be unobservable.
The fair value of White Mountains's other long-term investments measured at NAV
are generally determined using the fund manager's NAV. In the event that White
Mountains believes the fair value differs from the NAV reported by the fund
manager due to illiquidity or other factors, White Mountains will adjust the
reported NAV to more appropriately represent the fair value of its investment.

Sensitivity Analysis on Other Long-term Investments - NAV
The underlying investments of White Mountains's bank loan fund consist primarily
of U.S. dollar-denominated, non-investment grade, floating-rate senior secured
loans and may consist of other financial instruments, such as secured and
unsecured corporate debt, credit default swaps, reverse repurchase agreements,
and synthetic indices. These investments are subject to credit spread risk and
interest rate risk, and may be affected by the creditworthiness of the issuer,
prepayment options, relative values of alternative investments, the liquidity of
the instrument and various other market factors.
The underlying investments of White Mountains's private equity funds typically
consist of private securities whose exit strategies often depend on equity
market conditions. These investments are based on quoted market prices or
management's estimates of fair value, which could cause the amount realized upon
sale to differ from current reported fair values. The fluctuations in fair value
may result from a variety of risks, such as changes in the economic
characteristics, the relative price of alternative investments, supply and
demand, and other equity market factors.
The underlying investments of White Mountains's multi-investor ILS funds consist
primarily of catastrophe bonds, collateralized reinsurance investments and
industry loss warranties. In addition to catastrophe event risk, the underlying
investments are also subject to a variety of other risks including modeling,
liquidity, market, collateral credit quality, counterparty financial strength,
interest rate and currency risks.
See Note 3 - "Investment Securities" on page F-21 for tables that summarize the
changes in White Mountains's fair value measurements by level for the years
ended December 31, 2021 and 2020 and for amount of total gains (losses) included
in earnings attributable to net unrealized investment gains (losses) for Level 3
investments for years ended December 31, 2021, 2020 and 2019.

                                       78
--------------------------------------------------------------------------------

2. Valuation of excess tickets

BAM Excess Tickets

As of December 31, 2021, White Mountains owned $365 million of BAM Surplus Notes
and has accrued $158 million in interest due thereon. In December 2021, BAM made
a $34 million cash payment of principal and interest on the BAM Surplus Notes
held by HG Global. In December 2020, BAM made a $30 million cash payment of
principal and interest on the BAM Surplus Notes held by HG Global. In January
2020, BAM made a one-time $65 million cash payment of principal and interest on
the BAM Surplus Notes held by HG Global. During 2019, BAM made a $32 million
cash payment (which included a one-time $10 million cash payment) of principal
and interest on the BAM Surplus Notes.
Because BAM is consolidated in White Mountains's financial statements, the BAM
Surplus Notes and accrued interest are classified as intercompany notes, carried
at face value and eliminated in consolidation. However, the BAM Surplus Notes
and accrued interest are carried as assets at HG Global, of which White
Mountains owns 96.9% of the preferred equity, while the BAM Surplus Notes are
carried as liabilities at BAM, which White Mountains has no ownership interest
in and is completely attributed to non-controlling interests.
Any write-down of the carried amount of the BAM Surplus Notes and/or the accrued
interest thereon could adversely impact White Mountains's results of operations
and financial condition. See Item 1A., Risk Factors, "If BAM does not pay some
or all of the principal and interest due on the BAM Surplus Notes, it could
materially adversely affect our results of operations and financial condition."
on page 28.
Periodically, White Mountains's management reviews the recoverability of amounts
recorded from the BAM Surplus Notes. As of December 31, 2021, White Mountains
believes such notes and interest thereon to be fully recoverable. White
Mountains's review is based on a debt service model that forecasts operating
results for BAM, and related payments on the BAM Surplus Notes, through maturity
of the BAM Surplus Notes in 2042. The model depends on assumptions regarding
future trends for the issuance of municipal bonds, interest rates, credit
spreads, insured market penetration, competitive activity in the market for
municipal bond insurance and other factors affecting the demand for and price of
BAM's municipal bond insurance.
As of December 31, 2021, White Mountains debt service model indicated that the
BAM Surplus Notes would be fully repaid between six and seven years prior to
final maturity, which is generally consistent with the results of the update of
the debt service model as of December 31, 2020. The debt service model assumes
both par insured and total pricing gradually increase from 2022 to 2025, and
flatten thereafter. Assumptions regarding future trends for these factors are a
matter of significant judgment, and whether actual results will follow the model
is subject to a number of risks and uncertainties.
In January 2020, White Mountains updated its debt service model to reflect (i)
the cash payments of principal and interest on the BAM Surplus Notes made in
December 2019 and January 2020, (ii) the amendments made to the terms of the BAM
Surplus Notes in January 2020, including an extension of the variable interest
rate period, and (iii) in light of the current interest rate environment, a more
conservative forecast of future operating results for BAM. The changes to the
debt service model resulted in a $20 million increase to the time value of money
discount on the BAM Surplus Notes as reflected in adjusted book value per share
as of December 31, 2019.
BAM is required to seek regulatory approval to pay interest and principal on the
BAM Surplus Notes to the extent that its remaining qualified statutory capital
and other capital resources continue to support its outstanding obligations, its
business plan and its "AA/stable" rating from Standard & Poor's. No payment of
principal or interest on the BAM Surplus Notes may be made without the approval
of the NYDFS.
Interest payments on the BAM Surplus Notes are due quarterly but are subject to
deferral, without penalty or default and without compounding, for payment in the
future. Payments made to the BAM Surplus Notes are applied pro rata between
outstanding principal and interest. Deferred interest is due on the stated
maturity date in 2042.

3. Loss and LAE Reserves

General
Ark establishes loss and LAE reserves that are estimates of amounts needed to
pay claims and related expenses in the future for insured events that have
already occurred. The process of estimating loss and LAE reserves involves a
considerable degree of judgment by management and, as of any given date, is
inherently uncertain. See Note 5 - "Losses and Loss Adjustment Expense Reserves"
on page F-35 for a description of Ark's loss and LAE reserves and actuarial
methods.
Ark performs an actuarial review of its recorded loss and LAE reserves each
quarter, using several generally accepted actuarial methods to evaluate its loss
reserves, each of which has its own strengths and weaknesses. Management places
more or less reliance on a particular method based on the facts and
circumstances at the time the reserve estimates are made.

                                       79
--------------------------------------------------------------------------------

As part of Ark's quarterly actuarial review, Ark compares the previous quarter's
projections of incurred, paid and case reserve activity, including amounts
incurred but not reported, to actual amounts experienced in the quarter.
Differences between previous estimates and actual experience are evaluated to
determine whether a given actuarial method for estimating loss and LAE reserves
should be relied upon to a greater or lesser extent than it had been in the
past. While some variance is expected each quarter due to the inherent
uncertainty in estimating loss and LAE reserves, persistent or large variances
would indicate that prior assumptions and/or reliance on certain actuarial
methods may need to be revised going forward.
Upon completion of each quarterly review, Ark selects indicated loss and LAE
reserve levels based on the results of the relevant actuarial methods, which are
the primary consideration in determining management's best estimate of required
loss and LAE reserves. However, in making its best estimate, management also
considers other qualitative factors that may lead to a difference between held
reserves and actuarially indicated reserve levels. Typically, these qualitative
factors are considered when management and Ark's actuaries conclude that there
is insufficient historical incurred and paid loss information or that there is
particular uncertainty about whether trends included in the historical incurred
and paid loss information are likely to repeat in the future. Such qualitative
factors include, among others, recent entry into new markets or new products,
improvements in the claims department that are expected to lessen future
ultimate loss costs, legal and regulatory developments, or other uncertainties
that may arise.
The process of establishing loss and LAE reserves, including amounts incurred
but not reported, is complex and imprecise as it must consider many variables
that are subject to the outcome of future events. As a result, informed
subjective estimates and judgments as to Ark's ultimate exposure to losses are
an integral component of the loss and LAE reserving process. Ark categorizes and
tracks insurance and reinsurance reserves by "reserving class of business" for
each underwriting office, London and Bermuda, and then aggregates the reserving
classes by line of business, which are summarized herein as property and
accident & health, marine & energy, specialty, casualty - active and casualty -
runoff.
Ark regularly reviews the appropriateness of its loss and LAE reserves at the
reserving class of business level, considering a variety of trends that impact
the ultimate settlement of claims for the subsets of claims in each particular
reserving class. Losses and LAE are categorized by the year in which the policy
is underwritten (the year of account, or underwriting year) for purposes of
Ark's claims management and estimation of the ultimate loss and LAE reserves.
For purposes of Ark's reporting under GAAP, losses and LAE are categorized by
the accident year.

Impact of Third-Party Capital
For the years of account prior to the Ark Transaction, a significant proportion
of the Syndicates' underwriting capital was provided by TPC Providers using
whole account reinsurance contracts with Ark's corporate member. The TPC
Providers' participation in the Syndicates for the 2020 and 2019 open years of
account is 42.8% and 58.3% of the total net result of the Syndicates. For the
years of account subsequent to the Ark Transaction, Ark is no longer using TPC
Providers to provide underwriting capital for the Syndicates.
A Reinsurance to Close ("RITC") agreement is generally put in place after the
third year of operations for a year of account such that the outstanding loss
and LAE reserves, including future development thereon, are reinsured into the
next year of account. As a result, and in combination with the changing
participation provided by TPC Providers, Ark's participation on the outstanding
loss and LAE reserves reinsured into the next year of account may change,
perhaps significantly. For example, during 2021, an RITC was executed such that
the outstanding loss and LAE reserves for claims arising out of the 2018 year of
account, for which the TPC Providers' participation in the total net results of
the Syndicates was 57.6%, were reinsured into the 2019 year of account, for
which the TPC Providers' participation in the total net results of the
Syndicates is 58.3%.

Loss and LAE Reserves by Line of Business
The following table summarizes Ark's loss and LAE reserves, net of reinsurance
recoverables on unpaid losses, as of December 31, 2021:

                                                                           December 31, 2021
Millions                                                       Case              IBNR              Total
Property and Accident & Health                              $   81.1          $   93.9          $  175.0
Marine & Energy                                                 23.4              75.9              99.3
Specialty                                                       13.4              71.8              85.2
Casualty - Active                                               11.9              25.5              37.4
Casualty - Runoff                                               42.4              26.0              68.4
Other                                                             .2        .       .3                .5
Total loss and LAE reserves, net of reinsurance
recoverables (1)                                            $  172.4        

$293.4 $465.8

(1) Provisions for claims and LAE, net of reinsurance, are net of the amounts
attributable to TPC suppliers of $276.8including $141.5 case reserves and
$135.3 IBNR reservations.

                                       80
--------------------------------------------------------------------------------

For loss and LAE reserves as of December 31, 2021, Ark considers that the impact
of the various reserving factors, as described in Note 5 - "Losses and Loss
Adjustment Expense Reserves" on page F-35, on future paid losses would be
similar to the impact of those factors on historical paid losses.
The major causes of material uncertainty (i.e., reserving factors) generally
will vary for each line of business, as well as for each separately analyzed
reserving class of business within the line of business. Also, reserving factors
can have offsetting or compounding effects on estimated loss and LAE reserves.
In most cases, it is not possible to discretely measure the effect of a single
reserving factor and construct a meaningful sensitivity expectation. Actual
results will likely vary from expectations for each of these assumptions,
resulting in an ultimate claim liability that is different from that being
estimated currently.
Additional causes of material uncertainty exist in most product lines and may
impact the types of claims that could occur within a particular line of business
or reserving class of business. Examples where reserving factors, within a line
of business or reserving class of business, are subject to change include
changing types of insured (e.g., type of insured vehicle, size of account,
industry insured, jurisdiction), changing underwriting standards, or changing
policy provisions (e.g., deductibles, policy limits, endorsements).

Loss of the arch and EAS development

See Note 5 – “Loss reserves and loss adjustment expenses” on page F-35 for
prior year losses and LAE development discussions for the year ended The 31st of December,
2021
.

Range of Reserves
The following table shows the recorded loss and LAE reserves and the high and
low ends of Ark's range of reasonable loss and LAE reserve estimates, net of
reinsurance recoverables on unpaid losses, as of December 31, 2021. See Note 5 -
"Losses and Loss Adjustment Expense Reserves" on page F-35 for a description of
Ark's loss and LAE reserves and actuarial methods.

                                                                                 December 31, 2021
Millions                                                          Low                  Recorded               High
Total loss and LAE reserves, net of reinsurance                 $388.8                  $465.8               $505.6

recoverable (1)

(1) The provisions for recorded claims and LAE and the upper and lower limits of the range of
Estimates of LAE losses and reserves, net of reinsurance recoverables on defaults
losses, are net of amounts attributable to TPC suppliers of $276.8.

The recorded reserves represent management's best estimate of unpaid loss and
LAE reserves. Management's best estimate of reserves is in the upper portion of
the actuarial range of estimates in response to potential volatility in the
actuarial indications and estimates for large claims. Ark uses the results of
several different generally accepted actuarial methods to develop its best
estimate of ultimate loss and LAE reserves. While it has not determined the
statistical probability of actual ultimate paid losses falling within the range,
Ark believes that it is reasonably likely that actual ultimate paid losses will
fall within the ranges noted above.
Although Ark believes its loss and LAE reserves are reasonably stated, ultimate
losses may deviate, perhaps materially, from the recorded reserve amounts and
could be above the high end of the range of actuarial projections. This is
because ranges are developed based on known events as of the valuation date,
whereas the ultimate disposition of losses is subject to the outcome of events
and circumstances that may be unknown as of the valuation date.


                                       81
--------------------------------------------------------------------------------

Sensitivity Analysis
Below is a discussion of possible variations from current estimates of loss and
LAE reserves due to changes in certain key assumptions. Each of the impacts
described below is estimated individually, without consideration for any
correlation among key assumptions. Further, there is uncertainty around other
assumptions not explicitly quantified in the discussion below. Therefore, it
would be inappropriate to take each of the amounts described below and add them
together in an attempt to estimate volatility for Ark's reserves in total. It is
important to note that the volatilities and variations discussed below are not
meant to be worst-case scenarios or an all-inclusive list, and therefore it is
possible that future volatilities and variations may be more than amounts
discussed below.

•Sustained elevated levels of inflation: Elevated levels of inflation have been
observed during 2021, and recent economic forecasts suggest this trend will
continue at least in the short term. This has been particularly observed in the
casualty lines of business with key social inflation drivers being court awards,
changes in technology, and the legal environment. For example, a hypothetical
increase in inflation rates by 4% per annum would increase the recorded loss and
LAE reserves, net of reinsurance recoverables on unpaid losses, for the casualty
lines of business by approximately $7 million, or approximately 7% of the
recorded casualty loss and LAE reserves of $106 million. The property line of
business has also been impacted by elevated levels of inflation in relation to
many elements of construction costs. While the impact on construction costs
could be viewed as a short-term measure, there is uncertainty over how long it
will take for the current elevated level of costs to reduce back to historic
norms given COVID-19 disruption and worldwide supply chain issues.

•Catastrophe losses: The years 2017 through 2021 have been active for major loss
events, including natural catastrophes. As time has passed, the emerging claims
information for major loss events has been better than expected. As of December
31, 2021, Ark has recorded $64 million of loss and LAE reserves, net of
reinsurance recoverables on unpaid losses, for major loss events, of which $26
million is held as IBNR reserves. Some, but perhaps not all, of the IBNR
reserves may be needed to handle adverse reporting from clients.

•Ark new business: In January 2021, in response to an improved underwriting
environment, Ark converted GAIL into a Class 4 Bermuda-based insurance and
reinsurance company and began to underwrite third-party business. GAIL now
underwrites a range of third-party business including property, marine & energy,
specialty and casualty lines from Bermuda. GAIL's initial expected loss ratios
selected for reserving purposes were based on market benchmarks, supplemented
based on discussions with underwriters, policy details, views at time of pricing
the risk and emerging experience during 2021. As actual losses develop, Ark will
revise its initial expectations with its actual experience. However, it could be
a few years before Ark has sufficient internal data to rely on and possibly
longer for the longer-tailed lines of business, such as casualty. In 2021, GAIL
reported gross written premiums of $363 million. A 10% error in Ark's initial
loss ratio estimates could result in approximately $36 million of adverse
variance in loss and LAE reserves.

                                       82
--------------------------------------------------------------------------------

Loss and LAE Reserve Summary
The following table summarizes the loss and LAE reserve activity of Ark's
insurance and reinsurance subsidiaries for the year ended December 31, 2021:

                                                                                            Year Ended
Millions                                                                                 December 31, 2021
Gross beginning balance                                                                $            696.0
Less: beginning reinsurance recoverable on unpaid losses (1)                                       (433.4)
Net loss and LAE reserves                                                                           262.6

Losses and LAE incurred relating to:
Current year losses gross of amounts attributable to TPC Providers                                  397.5
  Less: Current year losses attributable to TPC Providers                                           (61.2)
   Net current year losses                                                                          336.3

  Prior year losses gross of amounts attributable to TPC Providers                                  (42.9)
  Less: Prior year losses attributable to TPC Providers                                              21.4
   Net prior year losses                                                                            (21.5)
Net incurred losses and LAE                                                                         314.8

Loss and LAE paid relating to:
Current year losses gross of amounts attributable to TPC Providers                                  (56.2)
Less: Current year losses attributable to TPC Providers                                              12.3
Net current year losses                                                                             (43.9)

Prior year losses gross of amounts attributable to TPC Providers                                   (132.0)
Less: Prior year losses attributable to TPC Providers                                                70.4
  Net prior year losses                                                                             (61.6)
Net paid losses and LAE                                                                            (105.5)

Change in TPC Providers' participation (2)                                                           (2.2)
Foreign currency translation and other adjustments to loss and LAE
reserves                                                                                             (3.9)

Net ending balance                                                                                  465.8
Plus: ending reinsurance recoverable on unpaid losses (1)                                           428.9
Gross ending balance                                                                   $            894.7


(1) The beginning reinsurance recoverable on unpaid losses and ending
reinsurance recoverable on unpaid losses includes amounts attributable to TPC
Providers of $319.2 and $276.8.
(2) Amount represents a decrease in net loss and LAE reserves due to a change in
the TPC Providers' participation during 2021, related to the RITC for the 2018
year of account.

During the year ended December 31, 2021, Ark experienced $22 million of net
favorable loss reserve development. Ark's net favorable loss reserve development
was driven primarily by the property and accident & health ($9 million),
casualty - ongoing ($4 million), specialty ($3 million) and casualty - runoff
($3 million) reserving lines of business. The favorable loss reserve development
in the property and accident & health reserving line of business was driven
primarily by positive claims experience within the 2018 and 2019 accident years.

                                       83
--------------------------------------------------------------------------------

The following table summarizes unpaid losses and LAE reserves, net of
reinsurance recoveries on unpaid losses, for each of Ark’s major reserves
sectors of activity from December 31, 2021:

                                                                                         As of
Millions                                                                           December 31, 2021
Property and Accident & Health                                                   $            175.0
Marine & Energy                                                                                99.3
Specialty                                                                                      85.2
Casualty - Active                                                                              37.4
Casualty - Runoff                                                                              68.4
Other                                                                                              0.5

Provisions for unpaid losses and LAE, net of unpaid reinsurance receivables
losses

                                                                                        465.8

Plus: Reinsurance receivables on unsettled claims (1)
Property and Accident & Health

                  145.2
Marine & Energy                                                                                70.2
Specialty                                                                                      68.9
Casualty - Active                                                                              41.4
Casualty - Runoff                                                                             103.2
  Total Reinsurance recoverables on unpaid losses (1)                                         428.9
Total unpaid loss and LAE reserves                                               $            894.7


(1) Amounts to be recovered from reinsurance on unpaid claims include amounts attributable
to TPC suppliers of $276.8.

The following ten tables include two tables each for the property and accident &
health, marine & energy, specialty, casualty-active and casualty-runoff
reserving lines of business. The first table for each reserving line of business
is presented net of reinsurance, which includes the impact of whole-account
quota-share reinsurance arrangements related to TPC Providers. Through the
annual RITC process, Ark's participation on outstanding loss and LAE reserves on
prior years of account can fluctuate. Depending on the change in the TPC
Providers' participation from one year of account to the next, the impact could
be significant and is reflected in the tables on an accident year basis. The
second table for each reserving line of business excludes the impact of amounts
attributable to TPC Providers. White Mountains believes this information is
useful to management and investors in evaluating Ark's loss and LAE reserves on
a fully aligned basis (i.e., 100% of the Syndicates' results), by excluding the
impact of changing levels of TPC Providers' participation from one year of
account to the next. The following table summarizes the participation of Ark's
TPC Providers by year of account:

                   2012   2013    2014     2015     2016     2017     2018     2019     2020    2021
TPC Providers'
  Participation     -  %   -  %  66.2  %  70.0  %  59.6  %  60.0  %  57.6  %  58.3  %  42.8  %   -  %



Each of the ten tables includes three sections.
The top section of the table presents, for each of the previous 10 accident
years (1) cumulative total undiscounted incurred loss and LAE as of each of the
previous 10 year-end evaluations, (2) total IBNR plus expected development on
reported claims as of December 31, 2021, and (3) the cumulative number of
reported claims as of December 31, 2021.
The middle section of the table presents cumulative paid loss and LAE for each
of the previous 10 accident years as of each of the previous 10 year-end
evaluations. Also included in this section is a calculation of the loss and LAE
reserves as of December 31, 2021 which is then included in the reconciliation to
the consolidated balance sheet presented above. The total unpaid loss and LAE
reserves as of December 31, 2021 is calculated as the cumulative incurred loss
and LAE from the top section less the cumulative paid loss and LAE from the
middle section, plus any outstanding liabilities from accident years prior to
2012.
The bottom section of the table is supplementary information about the average
historical claims duration as of December 31, 2021. It shows the weighted
average annual percentage payout of incurred loss and LAE by accident year as of
each age. For example, the first column is calculated as the incremental paid
loss and LAE in the first calendar year for each given accident year (e.g.
calendar year 2020 for accident year 2020, calendar year 2021 for accident year
2021) divided by the cumulative incurred loss and LAE as of December 31, 2021
for that accident year. The resulting ratios are weighted together using
cumulative incurred loss and LAE as of December 31, 2021.

                                       84
--------------------------------------------------------------------------------

Property and Accident & Health
$ in Millions
                                                   Incurred Loss and LAE, Net of Reinsurance
                                                        For the Years Ended December 31,                                                   As of December 31, 2021
                                                                                                                                    Total IBNR plus
                                                                                                                                       expected
  Accident                                                                                                                          development on   Cumulative number of
    Year             2012      2013      2014      2015      2016      2017
     2018      2019      2020             2021          reported claims   

reported complaints

    2012           $ 84.1    $ 68.4    $ 65.1    $ 65.7    $ 60.2    $ 60.0    $ 60.4    $ 60.2    $ 60.2          $  60.0          $          -                     2,710
    2013                       74.6      66.9      66.6      62.1      61.6      61.7      61.6      61.6             61.6                    .4                     2,586
    2014                                 34.8      31.3      29.4      28.6      28.6      28.5      28.5             28.5                     -                     2,963
    2015                                           19.8      17.4      16.2      16.0      15.9      15.9             15.9                    .4                     2,884
    2016                                                     21.7      16.9      17.9      18.0      17.9             18.0                   (.3)                    3,478
    2017                                                               22.6      29.9      37.4      36.7             36.0                   3.6                     4,610
    2018                                                                         37.5      44.2      46.3             44.5                   1.5                     4,270
    2019                                                                                   30.4      27.8             23.4                   2.1                     4,073
    2020                                                                                             62.9             61.5                  15.2                     4,532
    2021                                                                                                             162.1                  70.8                     2,860
                                                                                                       Total       $ 511.5


Property and Accident & Health
Millions
                                                 Cumulative Paid Loss and LAE, Net of Reinsurance
                                                         For the Years Ended December 31,
Accident Year         2012      2013      2014      2015      2016      2017      2018      2019      2020             2021
    2012            $ 14.2    $ 45.0    $ 53.6    $ 57.3    $ 58.2    $ 58.6    $ 58.7    $ 59.3    $ 59.4          $  59.5
    2013                        15.8      40.3      60.0      61.1      61.1      61.3      61.3      61.3             61.2
    2014                                  13.9      25.4      27.6      28.0      28.1      28.2      28.4             28.3
    2015                                             7.0      12.4      13.7      14.9      14.8      15.1             15.3
    2016                                                       8.6      13.4      16.8      17.1      17.2             17.5
    2017                                                                17.0      26.3      32.1      33.3             30.2
    2018                                                                          15.8      32.8      40.7             40.7
    2019                                                                                     6.9      17.1             19.1
    2020                                                                                              11.4             34.5
    2021                                                                                                               30.8
                                                                                                        Total         337.1
                                                  All outstanding liabilities before 2012, net of reinsurance            .6
                                                                    Loss 

and LAE reserves, net of reinsurance $175.0

Property and Accident & Health

                                                 Average Annual Percentage 

Payment of incurred losses and LAE by age, net of reinsurance

   Years                1                       2                   3                   4                5            6            7            8           9          10
                      31.5%                   33.4%               19.2%                5.7%             1.2%         1.4%         0.8%         0.3%         -%        0.1%



                                       85
--------------------------------------------------------------------------------

Property and Accident & Health
$ in Millions
                                       Incurred Loss and LAE, Gross of 

Amounts attributable to OTT suppliers

                                                          For the Years Ended December 31,                                                    As of December 31, 2021
                                                                                                                                       Total IBNR plus
                                                                                                                                          expected
                                                                                                                                       development on  

Cumulative number of
Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020

             2021          reported 

claims reported claims

    2012            $   84.1    $ 68.4    $ 65.1    $ 65.7    $ 65.9    $ 66.0    $ 65.7    $ 65.5    $ 65.2          $  64.8          $          -                     2,710
    2013                          74.6      66.9      66.6      66.3      65.0      64.8      64.5      64.5             64.5                    .9                     2,586
    2014                                    55.6      53.4      53.3      51.2      50.8      50.6      50.6             50.6                    .1                     2,963
    2015                                              54.7      51.8      48.7      46.2      46.0      45.8             45.8                    .9                     2,884
    2016                                                        60.6      48.5      50.0      50.3      50.0             50.1                   (.7)                    3,478
    2017                                                                  57.6      75.1      93.8      91.4             89.8                   8.6                     4,610
    2018                                                                            89.8     105.7     110.4            106.4                   3.5                     4,270
    2019                                                                                      72.5      66.2             55.8                   5.5                     4,073
    2020                                                                                               125.1            122.1                  29.1                     4,532
    2021                                                                                                                191.2                  83.1                     2,860
                                                                                                          Total       $ 841.1


Property and Accident & Health
Millions
                                    Cumulative Paid Loss and LAE, Gross of 

Amounts attributable to OTT suppliers

                                                          For the Years Ended December 31,
Accident Year           2012       2013      2014      2015      2016      2017      2018      2019      2020             2021
    2012            $    14.2    $ 45.0    $ 53.6    $ 57.3    $ 60.1    $ 61.4    $ 61.7    $ 63.2    $ 63.3          $  63.5
    2013                           15.8      40.3      60.0      63.3      63.2      63.9      63.7      63.7             63.6
    2014                                     19.1      41.3      48.0      49.2      49.4      49.9      50.2             50.1
    2015                                               19.0      36.3      40.4      43.3      43.2      43.8             44.3
    2016                                                         24.7      38.9      47.3      48.2      48.4             49.1
    2017                                                                   43.1      66.2      80.6      83.5             75.9
    2018                                                                             38.0      78.5      97.1             97.1
    2019                                                                                       16.5      40.7             45.3
    2020                                                                                                 24.5             69.2
    2021                                                                                                                  39.0
                                                                                                           Total         597.1
                         All outstanding liabilities before 2012, gross of amounts attributable to TPC Providers           1.5
                                           Loss and LAE reserves, gross of 

amounts attributable to TPC suppliers $245.5

Property and Accident & Health

                                  Average Annual Percentage Payout of Incurred Losses and LAE by Age, Gross of Amounts Attributable to TPC Providers
   Years             1                  2                    3                    4              5            6            7            8             9            10
                   32.0%              33.6%                17.5%                5.0%            0.5%         1.8%         1.9%         0.5%         (0.1)%        0.1%



                                       86
--------------------------------------------------------------------------------
Marine & Energy
$ in Millions
                                                    Incurred Loss and LAE, Net of Reinsurance
                                                         For the Years Ended December 31,                                                   As of December 31, 2021
                                                                                                                                     Total IBNR plus
                                                                                                                                        expected
                                                                                                                                     development on   Cumulative number of
Accident Year         2012      2013      2014      2015      2016      2017      2018      2019      2020             2021          reported claims    reported claims
    2012            $ 64.7    $ 55.1    $ 46.0    $ 42.8    $ 33.6    $ 32.8    $ 32.6    $ 32.0    $ 32.0          $  32.1          $         .1               2,428
    2013                        64.9      50.8      41.9      31.6      31.0      29.9      29.7      29.6             29.9                   (.2)              2,641
    2014                                  41.3      27.2      17.4      16.2      14.7      14.3      14.4             14.4                    .5               2,581
    2015                                            25.3      15.4      13.6      12.7      12.0      12.0             12.2                    .2               3,390
    2016                                                      22.3      18.1      16.0      15.1      14.9             15.1                    .7               4,117
    2017                                                                23.9      18.6      16.9      16.4             16.5                   1.1               4,470
    2018                                                                          24.5      18.9      16.7             17.0                    .5               3,487
    2019                                                                                    19.3      17.3             17.2                    .6               2,562
    2020                                                                                              24.4             21.7                   2.9               1,668
    2021                                                                                                               83.7                  69.9               1,091
                                                                                                        Total       $ 259.8


Marine & Energy
Millions
                                          Cumulative Paid Loss and LAE, Net of Reinsurance
                                                  For the Years Ended December 31,
  Accident Year       2012     2013     2014     2015     2016     2017     2018     2019     2020        2021
      2012           $ 8.1   $ 24.0   $ 27.4   $ 30.2   $ 30.6   $ 31.3   $ 31.7   $ 31.4   $ 31.3      $ 31.0
      2013                      7.9     22.6     28.1     29.1     29.7     29.9     29.9     29.7        29.9
      2014                               6.0     12.4     13.5     14.4     14.5     13.7     14.0        13.8
      2015                                        4.0      8.0      9.8     11.3     10.7     10.8        11.2
      2016                                                 5.6     10.1     12.8     13.3     13.4        14.0
      2017                                                          5.2     11.3     13.1     14.4        14.4
      2018                                                                   2.7     12.9     14.5        15.2
      2019                                                                            3.4     10.9        12.9
      2020                                                                                     3.2        12.9
      2021                                                                                                 6.4
                                                                                               Total     161.7
                                         All outstanding liabilities before 2012, net of reinsurance       1.2
                                                           Loss and LAE

provisions net of reinsurance $99.3

Marine & Energy

                                                     Average Annual 

Payout as a percentage of incurred losses and LAE by age, net of reinsurance

  Years                1                       2                   3                   4                5             6             7             8              9            10
                     19.8%                   37.7%               20.2%               5.7%             4.3%          7.2%          0.4%          0.1%          (0.4)%         0.2%


                                       87
--------------------------------------------------------------------------------

Marine & Energy
$ in Millions
                                       Incurred Loss and LAE, Gross of 

Amounts attributable to OTT suppliers

                                                          For the Years Ended December 31,                                                    As of December 31, 2021
                                                                                                                                       Total IBNR plus
                                                                                                                                          expected
                                                                                                                                       development on  

Cumulative number of
Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020

             2021          reported 

claims reported claims

    2012            $   64.7    $ 55.1    $ 46.0    $ 42.8    $ 40.4    $ 38.8    $ 37.0    $ 35.6    $ 35.4          $  35.6          $         .3               2,428
    2013                          64.9      50.8      41.9      38.4      37.2      33.5      33.0      32.8             33.4                   (.5)              2,641
    2014                                    59.8      40.3      32.5      30.0      24.8      23.9      23.8             24.1                   1.3               2,581
    2015                                              60.4      46.1      41.8      36.2      34.4      34.4             34.9                    .5               3,390
    2016                                                        63.1      52.0      43.5      41.3      40.7             41.2                   1.6               4,117
    2017                                                                  62.6      46.5      42.4      40.8             41.0                   2.5               4,470
    2018                                                                            59.3      46.0      40.6             41.3                   1.1               3,487
    2019                                                                                      46.4      41.2             41.0                   1.4               2,562
    2020                                                                                                47.4             42.6                   5.6               1,668
    2021                                                                                                                 95.0                  77.5               1,091
                                                                                                          Total       $ 430.1



Marine & Energy
Millions
                                        Cumulative Paid Loss and LAE, Gross

amounts attributable to TPC suppliers

                                                              For the Years Ended December 31,
  Accident Year            2012       2013      2014      2015      2016      2017      2018      2019      2020             2021
      2012              $    8.1    $ 24.0    $ 27.4    $ 30.2    $ 31.4    $ 33.7    $ 34.8    $ 34.0    $ 33.6          $  33.1
      2013                             7.9      22.6      28.1      31.1      32.8      33.3      33.5      32.9             33.3
      2014                                       8.0      17.9      21.2      24.0      24.2      22.3      22.9             22.5
      2015                                                10.2      23.1      29.2      32.9      31.3      31.4             32.4
      2016                                                          16.7      29.1      35.7      36.8      37.2             38.6
      2017                                                                    13.3      28.5      32.9      36.0             36.0
      2018                                                                               6.7      31.5      35.5             37.2
      2019                                                                                         8.1      25.9             30.7
      2020                                                                                                   6.9             26.5
      2021                                                                                                                    7.8
                                                                                                              Total         298.1
                            All outstanding liabilities before 2012, gross of amounts attributable to TPC Providers           3.2
                                              Loss and LAE reserves, gross 

amounts attributable to TPC suppliers $135.2

Marine & Energy

                                    Average Annual Percentage Payout of Incurred Losses and LAE by Age, Gross of Amounts Attributable to TPC Providers
  Years             1                      2                       3                    4              5            6            7            8             9            10
                  20.7%                  37.9%                   18.0%                6.3%            3.7%         6.5%         1.1%         0.3%         (0.2)%        0.4%


                                       88
--------------------------------------------------------------------------------
Specialty
$ in Millions
                                                       Incurred Loss and LAE, Net of Reinsurance
                                                            For the Years Ended December 31,                                                   As of December 31, 2021
                                                                                                                                        Total IBNR plus
                                                                                                                                           expected
                                                                                                                                        development on   Cumulative number of
 Accident Year           2012      2013      2014      2015      2016      2017      2018      2019      2020             2021          reported 

claims reported claims

      2012             $ 43.1    $ 36.1    $ 31.8    $ 30.8    $ 26.7    $ 25.8    $ 26.3    $ 26.6    $ 26.8          $  26.8          $        2.1                       887
      2013                         48.6      34.9      25.6      17.5      16.9      17.1      16.9      17.3             17.3                   1.3                     1,122
      2014                                   51.1      51.1      41.9      41.3      41.5      42.9      43.5             43.5                   (.3)                    1,409
      2015                                             21.3      13.0      10.4      10.1      10.6      10.7             10.8                   1.7                     1,876
      2016                                                       15.9      11.7       8.7       9.2       9.0              9.3                  (1.3)                    1,941
      2017                                                                 16.0      11.9      10.9      10.5             10.6                   1.5                     2,179
      2018                                                                           12.1      13.9      14.8             13.7                   2.4                     2,090
      2019                                                                                     16.6      14.6             13.5                   2.8                     2,315
      2020                                                                                               20.7             19.7                   6.2                     1,925
      2021                                                                                                                67.3                  57.4                     1,341
                                                                                                           Total       $ 232.5


Specialty
Millions
                                           Cumulative Paid Loss and LAE, Net of Reinsurance
                                                   For the Years Ended December 31,

Accident Year 2012 2013 2014 2015 2016 2017

2018 2019 2020 2021

      2012           $ 16.3   $ 25.2   $ 22.2   $ 22.6   $ 23.2   $ 23.3  
$ 24.2   $ 24.4   $ 24.4      $ 24.5
      2013                      17.1     13.6     15.2     15.8     15.8     16.0     16.0     16.0        16.0
      2014                               26.8     39.7     40.4     40.8     41.5     42.8     43.6        43.5
      2015                                         4.1      7.2      7.8      8.2      8.2      8.3         8.3
      2016                                                  3.2      8.0      9.2     10.0     10.4        10.5
      2017                                                           3.3      6.8      8.4      8.5         8.5
      2018                                                                    2.9      8.1      9.8        10.3
      2019                                                                             4.9      7.1         7.6
      2020                                                                                      5.4        10.9
      2021                                                                                                  5.2
                                                                                                Total     145.3
                                          All outstanding liabilities

before 2012, net of reinsurance (2.0)

                                                            Loss and LAE 

provisions net of reinsurance $85.2

Speciality

                               Average Annual Percentage Payout of Incurred 

Claims and LAE by age, less reinsurance

  Years         1          2           3            4            5            6            7            8             9            10
              34.0%      33.8%        7.3%         0.5%         4.6%         4.4%         4.6%         3.1%         (3.5)%       (1.0)%


                                       89
--------------------------------------------------------------------------------

Speciality

$ in millions

                                       Incurred Loss and LAE, Gross of 

Amounts attributable to OTT suppliers

                                                          For the Years Ended December 31,                                                    As of December 31, 2021
                                                                                                                                       Total IBNR plus
                                                                                                                                          expected
                                                                                                                                       development on  

Cumulative number of
Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020

             2021          reported 

claims reported claims

    2012            $   43.1    $ 36.1    $ 31.8    $ 30.8    $ 34.6    $ 33.2    $ 32.3    $ 33.1    $ 33.2          $  33.2          $        5.1                       887
    2013                          48.6      34.9      25.6      21.8      20.7      20.2      19.7      20.6             20.5                   3.1                     1,122
    2014                                    66.1      65.8      56.7      55.4      55.4      59.0      60.3             60.2                   (.7)                    1,409
    2015                                              47.3      40.4      32.8      29.8      31.1      31.1             31.5                   4.0                     1,876
    2016                                                        46.4      34.1      26.3      27.5      27.3             27.9                  (3.1)                    1,941
    2017                                                                  42.5      30.1      27.6      26.4             26.6                   3.7                     2,179
    2018                                                                            29.5      33.7      35.3             33.1                   5.6                     2,090
    2019                                                                                      39.7      34.8             32.3                   6.7                     2,315
    2020                                                                                                43.5             42.2                  11.9                     1,925
    2021                                                                                                                 81.7                  69.3                     1,341
                                                                                                          Total       $ 389.2



Specialty
Millions
                                        Cumulative Paid Loss and LAE, Gross

amounts attributable to TPC suppliers

                                                              For the Years Ended December 31,
  Accident Year             2012       2013      2014      2015      2016      2017      2018      2019      2020             2021
      2012              $    16.3    $ 25.2    $ 22.2    $ 22.6    $ 24.4    $ 24.8    $ 27.0    $ 27.5    $ 27.6          $  27.8
      2013                             17.1      13.6      15.2      16.8      17.0      17.5      17.5      17.5             17.4
      2014                                       31.2      50.1      52.4      53.7      55.3      58.6      60.4             60.4
      2015                                                 12.3      22.1      24.2      25.1      25.3      25.4             25.4
      2016                                                           10.1      24.7      27.6      29.5      30.6             30.7
      2017                                                                      8.7      17.3      21.3      21.7             21.7
      2018                                                                                7.0      19.8      23.8             24.8
      2019                                                                                         11.8      16.9             18.0
      2020                                                                                                   12.4             25.0
      2021                                                                                                                     6.1
                                                                                                               Total         257.3
                             All outstanding liabilities before 2012, gross

amounts attributable to TPC Service Providers (4.7)

                                               Loss and LAE reserves, gross 

amounts attributable to TPC suppliers $127.2

Speciality

                  Average Annual Percentage Payout of Incurred Losses and 

LAE by age, gross of amounts attributable to CPT providers

  Years         1           2           3            4            5            6            7            8             9            10
              32.5%       33.7%        7.8%         1.7%         4.5%         4.9%         4.5%         3.2%         (4.4)%       (2.4)%


                                       90
--------------------------------------------------------------------------------
Casualty - Active
$ in Millions
                                                    Incurred Loss and LAE, Net of Reinsurance
                                                         For the Years Ended December 31,                                                  As of December 31, 2021
                                                                                                                                    Total IBNR plus
                                                                                                                                       expected
                                                                                                                                    development on  

Cumulative number of
Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020

            2021          reported claims  

reported complaints

     2012            $ 22.6    $ 21.1    $ 17.7    $ 16.2    $ 10.1    $ 9.9    $ 11.0    $ 11.0    $ 11.3          $ 11.1          $         .8               1,016
     2013                        23.2      18.8      15.0       8.3      8.1       8.9       8.8       9.0             8.9                   1.3               1,134
     2014                                  17.1      13.8       7.5      7.0       8.0       7.8       7.8             7.7                   1.2               1,359
     2015                                            12.3       7.7      6.0       7.0       6.5       6.4             6.2                    .6               1,247
     2016                                                       5.7      5.0       6.3       6.6       7.0             6.9                    .1               1,483
     2017                                                                7.4       7.8       7.2       6.2             5.9                    .7               1,489
     2018                                                                          8.7       9.0       7.3             7.1                    .9                 961
     2019                                                                                    8.0       7.4             6.3                   1.7                 742
     2020                                                                                              7.6             6.2                   3.9                 420
     2021                                                                                                             15.9                  14.2                 452
                                                                                                        Total       $ 82.2


Casualty - Active
Millions
                                     Cumulative Paid Loss and LAE, Net of Reinsurance
                                             For the Years Ended December 31,
 Accident Year       2012    2013    2014    2015    2016    2017    2018    2019    2020        2021
      2012          $ 1.3   $ 3.3   $ 4.8   $ 6.4   $ 7.4   $ 8.0   $ 8.5   $ 9.1   $ 8.9      $  9.1
      2013                    1.5     3.6     5.3     5.7     6.3     6.7     7.0     7.0         7.2
      2014                            1.3     3.5     4.2     4.7     5.2     5.5     5.9         6.0
      2015                                    1.8     2.4     3.2     4.4     4.7     4.9         5.1
      2016                                             .2     1.0     2.3     4.0     4.6         5.3
      2017                                                     .8     1.7     2.8     3.4         4.2
      2018                                                             .3     1.4     3.5         4.3
      2019                                                                     .3     1.4         2.3
      2020                                                                             .5         1.0
      2021                                                                                         .5
                                                                                      Total      45.0
                                All outstanding liabilities before 2012, 

net of reinsurance .2

                                                  Loss and LAE reserves, 

net of reinsurance $37.4

Victim – Active

                                  Average Annual Percentage Payout of 

Incurred losses and LAE by age, net of reinsurance

   Years          1            2            3             4            5             6            7            8            9           10
                9.1%         14.7%        18.5%         14.2%         9.6%         10.7%         3.9%         3.1%         1.0%        3.1%


                                       91
--------------------------------------------------------------------------------

Casualty - Active
$ in Millions
                                       Incurred Loss and LAE, Gross of 

Amounts attributable to OTT suppliers

                                                          For the Years Ended December 31,                                                    As of December 31, 2021
                                                                                                                                       Total IBNR plus
                                                                                                                                          expected
                                                                                                                                       development on  

Cumulative number of
Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020

             2021          reported 

claims reported claims

    2012            $   22.6    $ 21.1    $ 17.7    $ 16.2    $ 17.3    $ 17.6    $ 18.6    $ 18.7    $ 19.2          $  19.0          $        1.9               1,016
    2013                          23.2      18.8      15.0      14.2      14.5      15.0      14.7      14.9             14.7                   3.2               1,134
    2014                                    20.6      17.6      15.6      15.1      15.8      15.3      15.0             14.7                   2.9               1,359
    2015                                              19.7      20.2      15.8      15.7      14.5      14.0             13.7                   1.4               1,247
    2016                                                        16.3      15.0      16.3      17.0      17.5             17.5                    .2               1,483
    2017                                                                  20.4      20.1      18.5      15.6             15.1                   1.6               1,489
    2018                                                                            21.2      22.0      17.3             17.0                   2.1                 961
    2019                                                                                      19.5      17.5             15.1                   4.2                 742
    2020                                                                                                16.6             13.5                   8.3                 420
    2021                                                                                                                 22.1                  19.0                 452
                                                                                                          Total       $ 162.4



Casualty - Active
Millions
                                  Cumulative Paid Loss and LAE, Gross of

Amounts attributable to OTT suppliers

                                                        For the Years Ended December 31,
  Accident
    Year              2012       2013      2014      2015      2016      2017      2018      2019      2020            2021
    2012           $    1.3    $  3.3    $  4.8    $  6.4    $  9.3    $ 11.4    $ 12.7    $ 14.1    $ 13.6          $ 14.2
    2013                          1.5       3.6       5.3       6.6       8.5       9.5      10.2      10.3            10.8
    2014                                    1.3       3.6       5.9       7.6       8.7       9.5      10.5            10.7
    2015                                              2.0       3.6       6.3       9.2      10.0      10.5            11.1
    2016                                                         .7       3.2       6.4      10.6      11.9            13.7
    2017                                                                  2.6       4.8       7.5       9.1            10.9
    2018                                                                             .8       3.5       8.5            10.3
    2019                                                                                       .8       3.3             5.5
    2020                                                                                                1.1             2.4
    2021                                                                                                                1.0
                                                                                                         Total         90.6
                       All outstanding liabilities before 2012, gross of amounts attributable to TPC Providers           .8
                                         Loss and LAE reserves, gross of 

amounts attributable to OTT suppliers $72.6

Victim – Active

                     Average Annual Percentage Payout of Incurred Losses 

and LAE by age, gross of amounts attributable to CPT providers

   Years          1            2             3             4             5             6            7            8            9           10
                7.4%         12.5%         16.9%         13.5%         10.2%         12.1%         5.6%         4.1%         1.9%        5.4%


                                       92
--------------------------------------------------------------------------------
Casualty - Runoff
$ in Millions
                                                      Incurred Loss and LAE, Net of Reinsurance
                                                          For the Years Ended December 31,                                                   As of December 31, 2021
                                                                                                                                      Total IBNR plus
                                                                                                                                         expected
                                                                                                                                      development on   Cumulative number of

Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020

            2021          reported claims 

reported complaints

     2012             $ 44.3    $ 44.6    $ 37.8    $ 34.4    $ 22.3    $ 21.7    $ 22.3    $ 22.8    $ 22.7          $ 23.1          $        (.2)              1,430
     2013                         65.7      75.8      70.1      49.2      47.0      49.8      49.8      49.8            49.9                   3.1               1,810
     2014                                   46.9      67.5      46.8      46.0      55.9      55.6      56.0            55.0                   1.9               1,932
     2015                                             26.9      23.9      26.4      35.7      33.0      33.2            32.0                   1.4               2,009
     2016                                                       19.1      25.3      38.8      35.4      35.3            34.1                   3.8               2,141
     2017                                                                 17.4      27.2      26.7      28.0            26.7                   2.5               1,597
     2018                                                                           13.5      18.2      20.2            20.0                   2.9               1,265
     2019                                                                                     10.8      14.3            15.4                   3.7                 961
     2020                                                                                                4.2             6.0                   3.6                 552
     2021                                                                                                                1.7                    .4                 260
                                                                                                          Total        263.9


Casualty - Runoff
$ in millions
                                        Cumulative Paid Loss and LAE, Net of Reinsurance
                                                For the Years Ended December 31,
 Accident Year      2012     2013     2014     2015     2016     2017     2018     2019     2020        2021
     2012          $ 3.5   $ 10.4   $ 13.6   $ 16.5   $ 17.8   $ 19.3   $ 20.5   $ 20.8   $ 21.2      $ 21.8
     2013                     7.2     19.5     35.9     41.0     42.7     44.3     45.0     45.6        46.0
     2014                              6.5     23.2     29.1     36.5     43.1     47.0     48.7        49.5
     2015                                       4.3      7.9     14.0     20.3     23.9     26.5        28.2
     2016                                                3.8      9.7     16.8     21.8     24.5        26.8
     2017                                                         3.1      9.1     14.2     18.3        21.1
     2018                                                                  3.3      7.2     12.2        14.3
     2019                                                                           3.2      5.6         7.4
     2020                                                                                     .8         1.3
     2021                                                                                                 .5
                                                                                             Total     216.9
                                       All outstanding liabilities before 2012, net of reinsurance      21.4
                                                         Loss and LAE reserves, net of reinsurance    $ 68.4


Casualty - Runoff
                                 Average Annual Percentage Payout of 

Incurred losses and LAE by age, net of reinsurance

   Years          1            2            3             4            5            6            7            8            9           10
                9.4%         15.3%        17.0%         15.9%         9.7%         8.1%         7.0%         3.6%         2.5%        1.7%


                                       93
--------------------------------------------------------------------------------

Casualty - Runoff
$ in Millions
                                       Incurred Loss and LAE, Gross of 

Amounts attributable to OTT suppliers

                                                         For the Years Ended December 31,                                                    As of December 31, 2021
                                                                                                                                      Total IBNR plus
                                                                                                                                         expected
                                                                                                                                      development on  

Cumulative number of
Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020

            2021          reported claims 

reported complaints

    2012            $   44.3    $ 44.6    $ 37.8    $ 34.4    $ 33.8    $ 

$33.2 $32.7 $34.0 $33.6 $34.4 $(0.4)

            1,430
    2013                          65.7      75.8      70.1      75.3      70.9      74.3      74.4      73.8            74.0                   7.5               1,810
    2014                                    63.5      94.4      97.1     101.0     117.4     117.0     116.7           114.4                   4.5               1,932
    2015                                              59.2      68.7      80.3      92.7      86.4      85.5            82.9                   3.4               2,009
    2016                                                        56.4      75.6     101.9      94.0      91.9            89.4                   9.2               2,141
    2017                                                                  45.6      68.9      68.0      69.3            66.4                   6.0               1,597
    2018                                                                            33.1      44.6      48.3            48.1                   7.0               1,265
    2019                                                                                      26.0      34.1            37.0                   8.8                 961
    2020                                                                                                 8.8            12.4                   7.1                 552
    2021                                                                                                                 3.6                    .5                 260
                                                                                                          Total        562.6



Casualty - Runoff
Millions
                                        Cumulative Paid Loss and LAE, Gross 

amounts attributable to TPC suppliers

                                                              For the Years Ended December 31,
  Accident Year            2012       2013      2014      2015      2016      2017      2018      2019      2020             2021
      2012              $    3.5    $ 10.4    $ 13.6    $ 16.5    $ 20.3    $ 25.3    $ 28.4    $ 29.0    $ 30.0          $  31.4
      2013                             7.2      19.5      35.9      50.8      56.7      60.6      62.3      63.9             64.7
      2014                                       7.4      27.4      44.8      69.3      85.8      95.4      99.4            101.3
      2015                                                 7.5      18.7      38.9      54.6      63.5      69.7             73.7
      2016                                                          11.6      30.1      47.5      60.1      66.5             71.9
      2017                                                                     9.2      24.0      36.7      46.4             53.1
      2018                                                                               8.3      17.8      29.5             34.6
      2019                                                                                         7.9      13.5             17.8
      2020                                                                                                   1.8              3.0
      2021                                                                                                                    1.2
                                                                                                              Total         452.7
                            All outstanding liabilities before 2012, gross

amounts attributable to TPC Service Providers 51.7

                                              Loss and LAE reserves, gross 

amounts attributable to TPC suppliers $161.6

Victim – runoff

                    Average Annual Percentage Payout of Incurred Losses and 

LAE by age, gross of amounts attributable to CPT providers

   Years          1            2             3             4            5            6            7            8            9           10
                8.7%         13.5%         15.9%         15.7%         9.6%         7.7%         6.2%         5.1%         4.8%        3.0%






                                       94
--------------------------------------------------------------------------------

The following table provides a reconciliation from the first grouping of tables
above presented net of reinsurance and the second table grouping above presented
gross of amounts attributable to TPC Service Providers:

December 31, 2021

Cumulative incurred loss and LAE

                                                                                         Amounts               Gross of Amounts
                                                                                   Attributable to TPC       Attributable to TPC
Millions                                                 Net of Reinsurance             Providers                 Providers
Property and Accident & Health                          $       511.5              $          329.6          $           841.1
Marine & Energy                                                 259.8                         170.3                      430.1
Specialty                                                       232.5                         156.7                      389.2
Casualty - Active                                                82.2                          80.2                      162.4
Casualty - Runoff                                               263.9                         298.7                      562.6
Total                                                   $     1,349.9              $        1,035.5          $         2,385.4



                                                                                    December 31, 2021
                                                                               Cumulative Paid Loss and LAE
                                                                                                                Gross of Amounts
                                                                                   Amounts Attributable       Attributable to TPC
Millions                                                 Net of Reinsurance          to TPC Providers              Providers
Property and Accident & Health                          $       337.1              $           260.0          $           597.1
Marine & Energy                                                 161.7                          136.4                      298.1
Specialty                                                       145.3                          112.0                      257.3
Casualty - Active                                                45.0                           45.6                       90.6
Casualty - Runoff                                               216.9                          235.8                      452.7
Total                                                   $       906.0              $           789.8          $         1,695.8



                                                                                   December 31, 2021
                                                                                 Loss and LAE Reserves
                                                                                                            Gross of Amounts
                                                             Net of            Amounts Attributable        Attributable to TPC
Millions                                                  Reinsurance            to TPC Providers               Providers
Property and Accident & Health                          $       175.0          $            70.5          $            245.5
Marine & Energy                                                  99.3                       35.9                       135.2
Specialty                                                        85.2                       42.0                       127.2
Casualty - Active                                                37.4                       35.2                        72.6
Casualty - Runoff                                                68.4                       93.2                       161.6
Total                                                   $       465.3          $           276.8          $            742.1



                                       95
--------------------------------------------------------------------------------

4. Good will and other intangible assets

As of December 31, 2021, goodwill and other intangible assets recognized in
connection with business and asset acquisitions totaled $1,066 million, of which
$948 million was attributable to White Mountains's common shareholders. Goodwill
and other intangible assets are recorded at their acquisition date fair values.
The determination of the acquisition date fair values of goodwill and other
intangible assets involves significant management judgment, the use of valuation
models and assumptions that are inherently subjective. Goodwill and
indefinite-lived intangible assets are not amortized but rather reviewed for
potential impairment on an annual basis, or whenever indications of potential
impairment exist. In the absence of any indications of potential impairment, the
evaluation of goodwill and indefinite-lived intangible assets is performed no
later than the interim period in which the anniversary of the acquisition date
falls. Finite-lived intangible assets, which are amortized over their estimated
economic lives, are reviewed for impairment only when events occur or there are
changes in circumstances indicating that their carrying value may exceed fair
value. Impairment exists when the carrying value of goodwill or other intangible
assets exceeds fair value.
White Mountains's annual review first assesses whether qualitative factors
indicate that the carrying value of goodwill or other intangible assets may be
impaired. If White Mountains determines based on this qualitative review that it
is more likely than not that an impairment may exist, then White Mountains
performs a quantitative analysis to compare the fair value of a reporting unit
with its carrying value. If the carrying value exceeds the estimated fair value,
then an impairment charge is recognized through current period pre-tax income
(loss). Both the annual qualitative assessment of potential impairment as well
as the quantitative comparison of carrying value to estimated fair value involve
management judgment, the use of discounted cash flow models, market comparisons
and other valuation techniques and assumptions, including customer retention
rates and revenue growth rates, that are inherently subjective.
Most of White Mountains's total goodwill and other intangible assets of $1,066
million relates to the acquisition of Ark and NSM and NSM's subsequent
acquisitions of KBK, Embrace, the Renewal Rights from AIG, Kingsbridge and J.C.
Taylor. As of December 31, 2021, goodwill and other intangible assets related to
Ark and NSM were $293 million and $725 million. During 2021, White Mountains
performed its periodic reviews for potential impairment, including a
quantitative review of the goodwill associated with NSM. During 2021, White
Mountains did not recognize any impairments of goodwill and other intangible
assets. During 2021, White Mountains recognized a loss on assets held for sale
of $29 million that was primarily related to the goodwill associated with the
Fresh Insurance motor business. During 2020, White Mountains recognized
impairments of other intangible assets of $6 million related to Fresh Insurance.
The impairments related to lower premium volumes, including due to the impact of
the COVID-19 pandemic, and certain reorganization initiatives at Fresh
Insurance. During 2020, White Mountains did not recognize any goodwill
impairments.
See Item 1A. Risk Factors, "If we are required to write down goodwill and other
intangible assets, it could materially adversely affect our results of
operations and financial condition." on page 26.

                                       96
--------------------------------------------------------------------------------

FORWARD-LOOKING STATEMENTS

This report may contain "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of historical facts,
included or referenced in this report which address activities, events or
developments which White Mountains expects or anticipates will or may occur in
the future are forward-looking statements. The words "could", "will", "believe",
"intend", "expect", "anticipate", "project", "estimate", "predict" and similar
expressions are also intended to identify forward-looking statements. These
forward-looking statements include, among others, statements with respect to
White Mountains's:

•change in book value or adjusted book value per share or return on equity;
•business strategy;
•financial and operating targets or plans;
•incurred loss and loss adjustment expenses and the adequacy of its loss and
loss adjustment expense reserves and related reinsurance;
•projections of revenues, income (or loss), earnings (or loss) per share,
EBITDA, adjusted EBITDA, dividends, market share or other financial forecasts of
White Mountains or its businesses;
•expansion and growth of its business and operations; and
•future capital expenditures.

These statements are based on certain assumptions and analyses made by White
Mountains in light of its experience and perception of historical trends,
current conditions and expected future developments, as well as other factors
believed to be appropriate in the circumstances. However, whether actual results
and developments will conform to its expectations and predictions is subject to
risks and uncertainties that could cause actual results to differ materially
from expectations, including:

•the risks associated with Item 1A of this Report on Form 10-K;
•claims arising from catastrophic events, such as hurricanes, earthquakes,
floods, fires, terrorist attacks or severe winter weather;
•recorded loss reserves subsequently proving to have been inadequate;
•the market value of White Mountains's investment in MediaAlpha;
•the trends and uncertainties from the COVID-19 pandemic, including judicial
interpretations on the extent of insurance coverage provided by insurers for
COVID-19 pandemic related claims;
•business opportunities (or lack thereof) that may be presented to it and
pursued;
•actions taken by rating agencies, such as financial strength or credit ratings
downgrades or placing ratings on negative watch;
•the continued availability of capital and financing;
•deterioration of general economic, market or business conditions, including due
to outbreaks of contagious disease (including the COVID-19 pandemic) and
corresponding mitigation efforts;
•competitive forces, including the conduct of other insurers;
•changes in domestic or foreign laws or regulations, or their interpretation,
applicable to White Mountains, its competitors or its customers; and
•other factors, most of which are beyond White Mountains's control.

Consequently, all of the forward-looking statements made in this report are
qualified by these cautionary statements, and there can be no assurance that the
actual results or developments anticipated by White Mountains will be realized
or, even if substantially realized, that they will have the expected
consequences to, or effects on, White Mountains or its business or operations.
White Mountains assumes no obligation to publicly update any such
forward-looking statements, whether as a result of new information, future
events or otherwise.


                                       97

————————————————– ——————————

]]>
ELEVATE CREDIT, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-K) https://nowwashyourhands.com/elevate-credit-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-k/ Fri, 25 Feb 2022 18:34:05 +0000 https://nowwashyourhands.com/elevate-credit-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-k/ The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help the reader understand our business, our results of operations and our financial condition. The MD&A is provided as a supplement to, and should be read in conjunction with our consolidated financial statements and the related notes and […]]]>
The following Management's Discussion and Analysis of Financial Condition and
Results of Operations ("MD&A") is intended to help the reader understand our
business, our results of operations and our financial condition. The MD&A is
provided as a supplement to, and should be read in conjunction with our
consolidated financial statements and the related notes and other financial
information included elsewhere in this Annual Report on Form 10-K.

Some of the information contained in this discussion and analysis, including
information with respect to our plans and strategy for our business, includes
forward-looking statements that involve risks and uncertainties. You should
review the "Risk Factors" and "Note About Forward-Looking Statements" sections
of this Annual Report on Form 10-K for a discussion of important factors that
could cause actual results to differ materially from the results described in or
implied by the forward-looking statements contained in the following discussion
and analysis. We generally refer to loans, customers and other information and
data associated with each of our brands (Rise, Elastic and Today Card) as
Elevate's loans, customers, information and data, irrespective of whether
Elevate directly originates the credit to the customer or whether such credit is
originated by a third party.

OVERVIEW

We provide online credit solutions to consumers in the US who are not
well-served by traditional bank products and who are looking for better options
than payday loans, title loans, pawn and storefront installment loans. Non-prime
consumers now represent a larger market than prime consumers but are risky to
underwrite and serve with traditional approaches. We're succeeding at it - and
doing it responsibly - with best-in-class advanced technology and proprietary
risk analytics honed by serving more than 2.7 million customers with $9.8
billion in credit. Our current online credit products, Rise, Elastic and Today
Card, reflect our mission to provide customers with access to competitively
priced credit and services while helping them build a brighter financial future
with credit building and financial wellness features. We call this mission "Good
Today, Better Tomorrow."

Prior to June 29, 2020, we provided services in the United Kingdom ("UK")
through our wholly-owned subsidiary, Elevate Credit International Limited
("ECIL") under the brand name 'Sunny.' During the year ended December 31, 2018,
ECIL began to receive an increased number of customer complaints initiated by
claims management companies ("CMCs") related to the affordability assessment of
certain loans. The CMCs' campaign against the high cost lending industry
increased significantly during the third and fourth quarters of 2018 and
continued through 2019 and into the first half of 2020, resulting in a
significant increase in affordability claims against all companies in the
industry over this period. The Financial Conduct Authority ("FCA"), a regulator
in the UK financial services industry, began regulating the CMCs in April 2019
in order to ensure that the methods used by the CMCs are in the best interests
of the consumer and the industry. Separately, the FCA asked all industry
participants to review their lending practices to ensure that such companies are
using an appropriate affordability and creditworthiness analysis. However, there
continued to be a lack of clarity within the regulatory environment in the UK.
This lack of clarity, coupled with the ongoing impact of the Coronavirus Disease
2019 ("COVID-19") on the UK market for Sunny, led the ECIL board of directors to
place ECIL into administration under the UK Insolvency Act 1986 and appoint
insolvency practitioners from KPMG LLP to take control and management of the UK
business. As a result, we have deconsolidated ECIL and are presenting its
results as discontinued operations.

We earn revenues on the Rise installment loans, on the Rise and Elastic lines of
credit and on the Today Card credit card product. Our revenue primarily consists
of finance charges and line of credit fees. Finance charges are driven by our
average loan balances outstanding and by the average annual percentage rate
("APR") associated with those outstanding loan balances. We calculate our
average loan balances by taking a simple daily average of the ending loan
balances outstanding for each period. Line of credit fees are recognized when
they are assessed and recorded to revenue over the life of the loan. We present
certain key metrics and other information on a "combined" basis to reflect
information related to loans originated by us and by our bank partners that
license our brands, Republic Bank, FinWise Bank and Capital Community Bank
("CCB"), as well as loans originated by third-party lenders pursuant to CSO
programs, which loans originated through CSO programs are not recorded on our
balance sheets in accordance with US GAAP. See "-Key Financial and Operating
Metrics" and "-Non-GAAP Financial Measures."

We use our working capital and our credit facility with Victory Park Management,
LLC ("VPC" and the "VPC Facility") to fund the loans we directly make to our
Rise customers. The VPC Facility has a maximum total borrowing amount available
of $200 million at December 31, 2021. See "-Liquidity and Capital Resources-Debt
facilities."
                                       44
--------------------------------------------------------------------------------


We also license our Rise installment loan brand to two banks. FinWise Bank
originates Rise installment loans in 17 states. This bank initially provides all
of the funding, retains 4% of the balances of all of the loans originated and
sells the remaining 96% loan participation in those Rise installment loans to a
third-party SPV, EF SPV, Ltd. ("EF SPV"). These loan participation purchases are
funded through a separate financing facility (the "EF SPV Facility"), and
through cash flows from operations generated by EF SPV. The EF SPV Facility has
a maximum total borrowing amount available of $250 million. We do not own EF
SPV, but we have a credit default protection agreement with EF SPV whereby we
provide credit protection to the investors in EF SPV against Rise loan losses in
return for a credit premium. Elevate is required to consolidate EF SPV as a
variable interest entity ("VIE") under US GAAP and the consolidated financial
statements include revenue, losses and loans receivable related to the 96% of
the Rise installment loans originated by FinWise Bank and sold to EF SPV.

Beginning in the third quarter of 2020, we also license our Rise installment
loan brand to an additional bank, CCB, which originates Rise installment loans
in three different states than FinWise Bank. Similar to the relationship with
FinWise Bank, CCB initially provides all of the funding, retains 5% of the
balances of all of the loans originated and sells the remaining 95% loan
participation in those Rise installment loans to a third-party SPV, EC SPV, Ltd.
("EC SPV"). These loan participation purchases are funded through a separate
financing facility (the "EC SPV Facility"), and through cash flows from
operations generated by EC SPV. The EC SPV Facility has a maximum total
borrowing amount available of $100 million. We do not own EC SPV, but we have a
credit default protection agreement with EC SPV whereby we provide credit
protection to the investors in EC SPV against Rise loan losses in return for a
credit premium. Elevate is required to consolidate EC SPV as a VIE under US GAAP
and the consolidated financial statements include revenue, losses and loans
receivable related to the 95% of the Rise installment loans originated by CCB
and sold to EC SPV.

The Elastic line of credit product is originated by a third-party lender,
Republic Bank, which initially provides all of the funding for that product.
Republic Bank retains 10% of the balances of all loans originated and sells a
90% loan participation in the Elastic lines of credit. An SPV structure was
implemented such that the loan participations are sold by Republic Bank to
Elastic SPV, Ltd. ("Elastic SPV") and Elastic SPV receives its funding from VPC
in a separate financing facility (the "ESPV Facility"), which was finalized on
July 13, 2015. We do not own Elastic SPV but we have a credit default protection
agreement with Elastic SPV whereby we provide credit protection to the investors
in Elastic SPV against Elastic loan losses in return for a credit premium. Per
the terms of this agreement, under US GAAP, we are the primary beneficiary of
Elastic SPV and are required to consolidate the financial results of Elastic SPV
as a VIE in our consolidated financial results. The ESPV Facility has a maximum
total borrowing amount of $350 million as of December 31, 2021.

Today Card is a credit card product designed to meet the spending needs of
non-prime consumers by offering a prime customer experience. Today Card is
originated by CCB under the licensed MasterCard brand, and a 95% participation
interest in the credit card receivable is sold to us. These credit card
receivable purchases are funded through a separate financing facility (the "TSPV
Facility"), and through cash flows from operations generated by the Today Card
portfolio. The TSPV Facility has a maximum commitment amount of $50 million,
which may be increased up to $100 million. As the lowest APR product in our
portfolio, Today Card allows us to serve a broader spectrum of non-prime
Americans. The Today Card experienced significant growth in its portfolio size
despite the pandemic due to the success of our direct mail campaigns, the
primary marketing channel for acquiring new Today Card customers. We are
following a specific growth plan to grow the product while monitoring customer
responses and credit quality. Customer response to the Today Card is very
strong, as we continue to see extremely high response rates, high customer
engagement, and positive customer satisfaction scores.

Our management evaluates our financial performance and our future strategic objectives using key indicators based primarily on the following three themes:


•Revenue growth.   Key metrics related to revenue growth that we monitor by
product include the ending and average combined loan balances outstanding, the
effective APR of our product loan portfolios, the total dollar value of loans
originated, the number of new customer loans made, the ending number of customer
loans outstanding and the related customer acquisition costs ("CAC") associated
with each new customer loan made. We include CAC as a key metric when analyzing
revenue growth (rather than as a key metric within margin expansion).

•Stable credit quality.   Since the time they were managing our legacy US
products, our management team has maintained stable credit quality across the
loan portfolio they were managing. Additionally, in the periods covered in this
Management's Discussion and Analysis of Financial Condition and Results of
Operations, we have maintained our strong credit quality. The credit quality
metrics we monitor include net charge-offs as a percentage of revenues, the
combined loan loss reserve as a percentage of outstanding combined loans, total
provision for loan losses as a percentage of revenues and the percentage of past
due combined loans receivable - principal.
                                       45
--------------------------------------------------------------------------------


•Margin expansion.   We aim to manage our business to achieve a long-term
operating margin of 20%. In periods of significant loan portfolio growth, our
margins may become compressed due to the upfront costs associated with marketing
and credit provisioning expense associated with this growth. As we continue to
rebuild and scale our portfolio from the impacts of COVID-19, we anticipate that
our direct marketing costs primarily associated with new customer acquisitions
will be approximately 10% of revenues and our operating expenses will decline to
20% of revenues. While our operating margins may exceed 20% in certain years,
such as in 2020 when we incurred lower levels of direct marketing expense and
materially lower credit losses due to a lack of customer demand for loans
resulting from the effects of COVID-19, we do not expect our operating margin to
increase beyond that level over the long-term, as we intend to pass on any
improvements over our targeted margins to our customers in the form of lower
APRs. We believe this is a critical component of our responsible lending
platform and over time will also help us continue to attract new customers and
retain existing customers.

Impact of COVID-19

The COVID-19 pandemic and related restrictive measures taken by governments,
businesses and individuals caused unprecedented uncertainty, volatility and
disruption in financial markets and in governmental, commercial and consumer
activity in the United States, including the markets that we serve. As the
restrictive measures have been eased in certain geographic locations, the U.S.
economy has begun to recover, and with the availability and distribution of
COVID-19 vaccines, we anticipate continued improvements in commercial and
consumer activity and the U.S. economy. While positive signs exist, we recognize
that certain of our customers are experiencing varying degrees of financial
distress, which may continue, especially if new COVID-19 variant infections
increase and new economic restrictions are mandated.

In 2020, we experienced a significant decline in the loan portfolio due to a
lack of customer demand for loans resulting from the effects of COVID-19 and
related government stimulus programs. These impacts resulted in a lower level of
direct marketing expense and materially lower credit losses during 2020 and
continuing into early 2021. Beginning in the second quarter of 2021, we
experienced a return of demand for the loan products that we, and the bank
originators we support, offer, resulting in significant growth in the loan
portfolio from that point. This significant loan portfolio growth is resulting
in compressed margins in 2021 due to the upfront costs associated with marketing
and credit provisioning expense related to growing and "rebuilding" the loan
portfolio from the impacts of COVID-19. We continue to target loan portfolio
originations within our target CACs of $250-$300 and credit quality metrics of
45-55% of revenue which, when combined with our expectation of continuing
customer loan demand for our portfolio products, we believe will allow us to
return to our historical performance levels prior to COVID-19 after initially
resulting in earnings compression.

Both we and the bank originators are closely monitoring the key credit quality
indicators such as payment defaults, continued payment deferrals, and line of
credit utilization. While we initially anticipated that the COVID-19 pandemic
would have a negative impact on our credit quality, instead the monetary
stimulus programs provided by the US government to our customer base have
generally allowed customers to continue making payments on their loans. At the
beginning of the pandemic, we expected an increase in net charge-offs as
compared to prior periods but experienced historically low net charge-offs as a
percentage of revenue in the second half of 2020 and early 2021. With the
increased volume of new customer loans expected to be originated as we grow our
loan portfolio back to our pre-pandemic size and the ending of government
assistance, we expect an initial increase in net charge-offs in excess of our
targeted range with a return of net charge-offs to our targeted range of 45-55%
of revenue as the portfolio becomes more seasoned with a balance of new and
returning customers. Further, we believe that the allowance for loan losses is
adequate to absorb the losses inherent in the portfolio as of December 31, 2021.

We have implemented a hybrid remote environment where employees may choose to
work primarily from the office or from home and gather collectively in the
office on a limited basis. We have sought to ensure our employees feel secure in
their jobs, have flexibility in their work location and have the resources they
need to stay safe and healthy. As a 100% online lending solutions provider, our
technology and underwriting platform has continued to serve our customers and
the bank originators that we support without any material interruption in
services.

COVID-19 has had a significant adverse impact on our business, and while
uncertainty still exists, we believe we are well-positioned to operate
effectively through the present economic environment and expect continued loan
portfolio growth and strong credit quality into the next year. We will continue
assessing our minimum cash and liquidity requirement, monitoring our debt
covenant compliance and implementing measures to ensure that our cash and
liquidity position is maintained through the current economic cycle.

KEY FINANCIAL AND OPERATIONAL INDICATORS


As discussed above, we regularly monitor a number of metrics in order to measure
our current performance and project our future performance. These metrics aid us
in developing and refining our growth strategies and in making strategic
decisions.
                                       46
--------------------------------------------------------------------------------


Certain of our metrics are non-GAAP financial measures. We believe that such
metrics are useful in period-to-period comparisons of our core business.
However, non-GAAP financial measures are not an alternative to any measure of
financial performance calculated and presented in accordance with US GAAP. See
"-Non-GAAP Financial Measures" for a reconciliation of our non-GAAP measures to
US GAAP.

Revenues

                                                                           

As of and for the years ended the 31st of DecemberRevenues (in thousands of dollars, unless otherwise indicated)

                             2021                  2020                 2019
Revenues                                                                     $      416,637           $  465,346          $   638,873
Period-over-period revenue decrease                                                     (10)  %              (27) %                (4) %
Ending combined loans receivable - principal(1)                                     558,759              399,822              607,149
Average combined loans receivable - principal(1)(2)                                 432,836              453,983              561,334
Total combined loans originated - principal                                         940,510              628,660            1,102,766
Average customer loan balance (in dollars)(3)                                         1,992                1,861                2,011
Number of new customer loans                                                        168,339               68,245              159,725
Ending number of combined loans outstanding                                         280,506              214,848              301,959
Customer acquisition costs (in dollars)                                      $          247           $      297          $       241
Effective APR of combined loan portfolio                                                 95   %              102  %               113  %


_________

(1)Combined loans receivable is defined as loans owned by us and consolidated
VIEs plus loans originated and owned by third-party lenders pursuant to our CSO
programs. See "-Non-GAAP Financial Measures" for more information and for a
reconciliation of Combined loans receivable to Loans receivable, net, the most
directly comparable financial measure calculated in accordance with US GAAP.
(2)Average combined loans receivable - principal is calculated using an average
of daily Combined loans receivable - principal balances.
(3)Average customer loan balance is an average of all three products and is
calculated for each product by dividing the ending Combined loans receivable -
principal by the number of loans outstanding at period end.

Revenues. Our revenue is made up of Rise finance fees, Rise CSO fees (which are fees we receive from customers who obtain a loan through the CSO program for credit services, including loan guarantee, which we provide), revenue earned on the Elastic line of credit, and finance charges and fee revenue from the Today Card credit card product. See ”Components of Our Results of Operations – Revenues”.


Ending and average combined loans receivable - principal.   We calculate the
average combined loans receivable - principal by taking a simple daily average
of the ending combined loans receivable - principal for each period. Key metrics
that drive the ending and average combined loans receivable - principal include
the amount of loans originated in a period and the average customer loan
balance. All loan balance metrics include only the 90% participation in the
related Elastic line of credit advances (we exclude the 10% held by Republic
Bank), the 96% participation in FinWise Bank originated Rise installment loans
and the 95% participation in CCB originated Rise installment loans and the 95%
participation in the CCB originated Today Card credit card receivables, but
include the full loan balances on CSO loans, which are not presented on our
Consolidated Balance Sheets.

Total combined loans originated - principal.   The amount of loans originated in
a period is driven primarily by loans to new customers as well as new loans to
prior customers, including refinancing of existing loans to customers in good
standing.

Average customer loan balance and effective APR of combined loan portfolio.
The average loan amount and its related APR are based on the product and the
underlying credit quality of the customer. Generally, better credit quality
customers are offered higher loan amounts at lower APRs. Additionally, new
customers have more potential risk of loss than prior or existing customers due
to lack of payment history and the potential for fraud. As a result, newer
customers typically will have lower loan amounts and higher APRs to compensate
for that additional risk of loss. The effective APR is calculated based on the
actual amount of finance charges generated from a customer loan divided by the
average outstanding balance for the loan and can be lower than the stated APR on
the loan due to waived finance charges and other reasons. For example, a Rise
customer may receive a $2,000 installment loan with a term of 24 months and a
stated rate of 130%. In this example, the customer's monthly installment loan
payment would be $236.72. As the customer can prepay the loan balance at any
time with no additional fees or early payment penalty, the customer pays the
loan in full in month eight. The customer's loan earns interest of $1,657.39
over the eight-month period and has an average outstanding balance of $1,912.37.
The effective APR for this loan is 130% over the eight-month period calculated
as follows:

($1,657.39 interest earned / $1,912.37 average outstanding balance) x 12 months per year = 130%

8 months

                                       47
--------------------------------------------------------------------------------


In addition, as an example for Elastic, if a customer makes a $2,500 draw on the
customer's line of credit and this draw required bi-weekly minimum payments of
5% (equivalent to 20 bi-weekly payments), and if all minimum payments are made,
the draw would earn finance charges of $1,125. The effective APR for the line of
credit in this example is 107% over the payment period and is calculated as
follows:

($1,125.00 fees earned / $1,369.05 average unpaid balance) x 26 fortnight periods per year = 107%

20 payments


The actual total revenue we realize on a loan portfolio is also impacted by the
amount of prepayments and charged-off customer loans in the portfolio. For a
single loan, on average, we typically expect to realize approximately 60% of the
revenues that we would otherwise realize if the loan were to fully amortize at
the stated APR. From the Rise example above, if we waived $350 of interest for
this customer, the effective APR for this loan would decrease to 103%. From the
Elastic example above, if we waived $125 of fees for this customer, the
effective APR for this loan would decrease to 95%.

Number of new customer loans.   We define a new customer loan as the first loan
or advance made to a customer for each of our products (so a customer receiving
a Rise installment loan and then at a later date taking their first cash advance
on an Elastic line of credit would be counted twice). The number of new customer
loans is subject to seasonal fluctuations. New customer acquisition is typically
slowest during the first six months of each calendar year, primarily in the
first quarter, compared to the latter half of the year, as our existing and
prospective customers usually receive tax refunds during this period and, thus,
have less of a need for loans from us. Further, many customers will use their
tax refunds to prepay all or a portion of their loan balance during this period,
so our overall loan portfolio typically decreases during the first quarter of
the calendar year. Overall loan portfolio growth and the number of new customer
loans tends to accelerate during the summer months (typically June and July), at
the beginning of the school year (typically late August to early September) and
during the winter holidays (typically late November to early December).

Customer acquisition costs.   A key expense metric we monitor related to loan
growth is our CAC. This metric is the amount of direct marketing costs incurred
during a period divided by the number of new customer loans originated during
that same period. New loans to former customers are not included in our
calculation of CAC (except to the extent they receive a loan through a different
product) as we believe we incur no material direct marketing costs to make
additional loans to a prior customer through the same product.

The following tables summarize the evolution of customer loans by product for the years ended December 31, 20212020 and 2019.

                                                              Year Ended December 31, 2021
                                              Rise                  Elastic                 Today
                                          (Installment             (Lines of
                                             Loans)                 Credit)             (Credit Card)                          Total
Beginning number of combined
loans outstanding                              103,940               100,105                  10,803                           214,848
New customer loans originated                  103,426                37,937                  26,976                           168,339
Former customer loans originated                64,896                   525                       -                            65,421
Attrition                                     (137,848)              (27,939)                 (2,315)                         (168,102)
Ending number of combined loans
outstanding                                    134,414               110,628                  35,464                           280,506
Customer acquisition cost               $          287          $        272          $           57                      $        247
Average customer loan balance           $        2,310          $      1,805          $        1,370                      $      1,992


                                                              Year Ended December 31, 2020
                                              Rise                  Elastic                 Today
                                          (Installment             (Lines of
                                             Loans)                 Credit)             (Credit Card)                          Total
Beginning number of combined
loans outstanding                              152,435               146,317                   3,207                           301,959
New customer loans originated                   46,857                13,302                   8,086                            68,245
Former customer loans originated                56,427                   348                       -                            56,775
Attrition                                     (151,779)              (59,862)                   (490)                         (212,131)
Ending number of combined loans
outstanding                                    103,940               100,105                  10,803                           214,848
Customer acquisition cost               $          324          $        351          $           52                      $        297
Average customer loan balance           $        2,197          $      1,572          $        1,306                      $      1,861


                                       48
--------------------------------------------------------------------------------

                                                              Year Ended December 31, 2019
                                              Rise                  Elastic                 Today
                                          (Installment             (Lines of
                                             Loans)                 Credit)             (Credit Card)                          Total
Beginning number of combined
loans outstanding                              142,758               165,950                     447                           309,155
New customer loans originated                  108,813                47,677                   3,235                           159,725
Former customer loans originated                80,624                    62                       -                            80,686
Attrition                                     (179,760)              (67,372)                   (475)                         (247,607)
Ending number of combined loans
outstanding                                    152,435               146,317                   3,207                           301,959
Customer acquisition cost               $          248          $        240          $           23                      $        241
Average customer loan balance           $        2,297          $      1,727          $        1,368                      $      2,011


Recent trends.   Our revenues for the year ended December 31, 2021 totaled
$416.6 million, a decrease of 10% versus the prior year period. Our revenues for
the year ended December 31, 2020 totaled $465.3 million, a decrease of 27%
versus the prior year period. Both the Rise and Elastic products experienced a
year-over-year decline in revenues of 12% and 11%, respectively, which were
attributable to reductions in year-to-date average loan balances due to the
economic crisis created by the COVID-19 pandemic beginning in March 2020, which
resulted in substantial government assistance to our potential customers that
lowered demand for our products, and a lower Rise effective APR. This decline in
revenue was partially offset by a year-over-year increase in revenues for the
Today Card product, which more than tripled its average principal balance
outstanding year-over year. We believe Today Card balances have increased
despite the impact of COVID-19 due to the nature of the product (credit card
versus installment loan or lines of credit), the lower APR of the product
(effective APR of 31% for the year ended December 31, 2021, compared to Rise at
103% and Elastic at 94%) as customers receiving stimulus payments would be more
apt to pay down more expensive forms of credit, and the added convenience of
having a credit card for online purchases of day-to-day items such as groceries
or clothing (whereas the primary usage of a Rise installment loan or Elastic
line of credit is for emergency financial needs such as a medical deductible or
automobile repair).

We are currently experiencing an increase in new and former customers as demand
for the loan products provided by us and the bank originators began to return
during the second quarter of 2021. This is in contrast to 2020 and early 2021
when the portfolio of loan products experienced significantly decreased loan
demand for both new and former customers due to COVID-19, including the effects
of monetary stimulus provided by the US government reducing demand for loan
products. All three of our products experienced an increase in principal loan
balances in 2021 compared to a year ago. Rise and Elastic principal balances at
December 31, 2021 totaled $310.5 million and $199.7 million, respectively, up
$82.2 million and $42.3 million, respectively, from a year ago. Today Card
principal loan balances at December 31, 2021 totaled $48.6 million, up $34.5
million from a year ago.

Our CAC was lower in the year ended December 31, 2021 at $247 as compared to the
prior year at $297, with the prior year not reflective of our historical CAC due
to the significant reduction in new loan originations due to the COVID-19
pandemic. Our 2021 loan volume is being sourced from all our marketing channels
including direct mail, strategic partners and digital. We've seen a marked
improvement in loan volume from our strategic partners channel where we have
improved our technology and risk capabilities to interface with the strategic
partners via our application programming interface (APIs) that we developed
within our new technology platform, Blueprint™. Blueprint™ will allow us to more
efficiently acquire new customers within our targeted CAC range. We believe our
CAC in future quarters will continue to remain within or below our target range
of $250 to $300 as we continue to optimize the efficiency of our marketing
channels and continue to grow the Today Card which successfully generated new
customers at a sub-$100 CAC.
                                       49
--------------------------------------------------------------------------------

Credit quality


                                                                      As of and for the years ended December 31,
Credit quality metrics (dollars in thousands)                        2021                  2020                2019
Net charge-offs(1)                                            $      163,705           $  189,823          $  330,317
Additional provision for loan losses(1)                               22,125              (32,913)             (4,655)
Provision for loan losses                                     $      185,830           $  156,910             325,662

Combined loans receivable past due – principal as a percentage of combined loans receivable – principal(2)

                    10   %                6  %               10  %
Net charge-offs as a percentage of revenues(1)                            39   %               41  %               52  %

Total allowance for loan losses as a percentage of revenue

                                                                  45   %               34  %               51  %
Combined loan loss reserve(3)                                 $       71,204           $   49,079          $   81,992
Combined loan loss reserve as a percentage of combined
loans receivable(3)                                                       12   %               12  %               13  %


_________

(1)Net charge-offs and additional provision for loan losses are not financial
measures prepared in accordance with US GAAP. Net charge-offs include the amount
of principal and accrued interest on loans that are more than 60 days past due
(Rise and Elastic) or 120 days past due (Today Card), or sooner if we receive
notice that the loan will not be collected, such as a bankruptcy notice or
identified fraud, offset by any recoveries. Additional provision for loan losses
is the amount of provision for loan losses needed for a particular period to
adjust the combined loan loss reserve to the appropriate level in accordance
with our underlying loan loss reserve methodology. See "-Non-GAAP Financial
Measures" for more information and for a reconciliation to Provision for loan
losses, the most directly comparable financial measure calculated in accordance
with US GAAP.
(2)Combined loans receivable is defined as loans owned by us and consolidated
VIEs plus loans originated and owned by third-party lenders pursuant to our CSO
programs. See "-Non-GAAP Financial Measures" for more information and for a
reconciliation of Combined loans receivable to Loans receivable, net, the most
directly comparable financial measure calculated in accordance with US GAAP.
(3)Combined loan loss reserve is defined as the loan loss reserve for loans
originated and owned by us plus the loan loss reserve for loans owned by
third-party lenders and guaranteed by us. See "-Non-GAAP Financial Measures" for
more information and for a reconciliation of Combined loan loss reserve to
Allowance for loan losses, the most directly comparable financial measure
calculated in accordance with US GAAP.

Net principal charge-offs as a
percentage of average combined loans              First                                               Third
receivable - principal (1)(2)(3)                 Quarter               Second Quarter                Quarter               Fourth Quarter
2021                                               6%                        5%                        6%                        10%
2020                                               11%                       10%                       4%                        5%
2019                                               13%                       10%                       10%                       12%


(1)Net principal charge-offs is comprised of gross principal charge-offs less
recoveries.
(2)Average combined loans receivable - principal is calculated using an average
of daily Combined loans receivable - principal balances during each quarter.
(3)Combined loans receivable is defined as loans owned by us and consolidated
VIEs plus loans originated and owned by third-party lenders pursuant to our CSO
programs. See "-Non-GAAP Financial Measures" for more information and for a
reconciliation of Combined loans receivable to Loans receivable, net, the most
directly comparable financial measure calculated in accordance with US GAAP.

The above chart depicts the historically low charge-off metrics from the third
quarter of 2020 through the third quarter of 2021, due to COVID-19 pandemic
impacts such as a lack of new customer demand, our implementation of payment
assistance tools, and government stimulus payments received by our customers.
Net principal charge-offs as a percentage of average combined loans
receivable-principal for the fourth quarter of 2021 has returned to the levels
consistent with 2019 due to the volume of new customers being originated as we
rebuild the portfolio from the impacts of the COVID-19 pandemic and return to a
more normalized credit profile.

In reviewing the credit quality of our loan portfolio, we break out our total
provision for loan losses that is presented on our statements of operations
under US GAAP into two separate items-net charge-offs and additional provision
for loan losses. Net charge-offs are indicative of the credit quality of our
underlying portfolio, while additional provision for loan losses is subject to
more fluctuation based on loan portfolio growth, recent credit quality trends
and the effect of normal seasonality on our business. The additional provision
for loan losses is the amount needed to adjust the combined loan loss reserve to
the appropriate amount at the end of each month based on our loan loss reserve
methodology.

                                       50
--------------------------------------------------------------------------------


Net charge-offs.  Net charge-offs comprise gross charge-offs offset by
recoveries on prior charge-offs. Gross charge-offs include the amount of
principal and accrued interest on loans that are more than 60 days past due
(Rise and Elastic) or 120 days (Today Card), or sooner if we receive notice that
the loan will not be collected, such as a bankruptcy notice or identified fraud.
Any payments received on loans that have been charged off are recorded as
recoveries and reduce the total amount of gross charge-offs. Recoveries are
typically less than 10% of the amount charged off, and thus, we do not view
recoveries as a key credit quality metric.

Net charge-offs as a percentage of revenues can vary based on several factors,
such as whether or not we experience significant growth or lower the APR of our
products. Additionally, although a more seasoned portfolio will typically result
in lower net charge-offs as a percentage of revenues, we do not intend to drive
down this ratio significantly below our historical ratios and would instead seek
to offer our existing products to a broader new customer base to drive
additional revenues.

Net charge-offs as a percentage of average combined loans receivable-principal
allow us to determine credit quality and evaluate loss experience trends across
our loan portfolio.

Additional provision for loan losses.   Additional provision for loan losses is
the amount of provision for loan losses needed for a particular period to adjust
the combined loan loss reserve to the appropriate level in accordance with our
underlying loan loss reserve methodology.

Additional provision for loan losses relates to an increase in inherent losses
in the loan portfolio as determined by our loan loss reserve methodology. This
increase could be due to a combination of factors such as an increase in the
size of the loan portfolio or a worsening of credit quality or increase in past
due loans. It is also possible for the additional provision for loan losses for
a period to be a negative amount, which would reduce the amount of the combined
loan loss reserve needed (due to a decrease in the loan portfolio or improvement
in credit quality). The amount of additional provision for loan losses is
seasonal in nature, mirroring the seasonality of our new customer acquisition
and overall loan portfolio growth, as discussed above. The combined loan loss
reserve typically decreases during the first quarter or first half of the
calendar year due to a decrease in the loan portfolio from year end. Then, as
the rate of growth for the loan portfolio starts to increase during the second
half of the year, additional provision for loan losses is typically needed to
increase the reserve for future losses associated with the loan growth. Because
of this, our provision for loan losses can vary significantly throughout the
year without a significant change in the credit quality of our portfolio.

The following provides an example of the application of our loan loss reserve
methodology and the break-out of the provision for loan losses between the
portion associated with replenishing the reserve due to net charge-offs and the
amount related to the additional provision for loan losses. If the beginning
combined loan loss reserve were $25 million, and we incurred $10 million of net
charge-offs during the period and the ending combined loan loss reserve needed
to be $30 million according to our loan loss reserve methodology, our total
provision for loan losses would be $15 million, comprising $10 million in net
charge-offs (provision needed to replenish the combined loan loss reserve) plus
$5 million of additional provision related to an increase in future inherent
losses in the loan portfolio identified by our loan loss reserve methodology.

Example (dollars in thousands)
Beginning combined loan loss reserve                         $ 25,000
Less: Net charge-offs                                         (10,000)
Provision for loan losses:
Provision for net charge-offs                    10,000
Additional provision for loan losses              5,000
Total provision for loan losses                                15,000
Ending combined loan loss reserve balance                    $ 30,000



                                       51
--------------------------------------------------------------------------------


Loan loss reserve methodology.  Our loan loss reserve methodology is calculated
separately for each product and, in the case of Rise loans originated under the
state lending model (including CSO program loans), is calculated separately
based on the state in which each customer resides to account for varying state
license requirements that affect the amount of the loan offered, repayment terms
and other factors. For each product, loss factors are calculated based on the
delinquency status of customer loan balances: current, 1 to 30 days past due, 31
to 60 days past due or 61-120 past due (for Today Card only). These loss factors
for loans in each delinquency status are based on average historical loss rates
by product (or state) associated with each of these three delinquency
categories. Hence, another key credit quality metric we monitor is the
percentage of past due combined loans receivable - principal, as an increase in
past due loans will cause an increase in our combined loan loss reserve and
related additional provision for loan losses to increase the reserve. For
customers that are not past due, we further stratify these loans into loss rates
by payment number, as a new customer that is about to make a first loan payment
has a significantly higher risk of loss than a customer who has successfully
made ten payments on an existing loan with us. Based on this methodology, during
the past three years we have seen our combined loan loss reserve as a percentage
of combined loans receivable fluctuate between approximately 10% and 14%
depending on the overall mix of new, former and past due customer loans.

Recent trends.   Total loan loss provision for the year ended December 31, 2021
was 45% of revenues, which was within our targeted range of 45% to 55%, compared
to 34% in the prior year period. For the year ended December 31, 2021, net
charge-offs as a percentage of revenues totaled 39%, compared to 41% in the
prior year period. The increase in total loan loss provision as a percentage of
revenues in 2021 was due to the increase in new loan originations beginning in
the second quarter of 2021 and the loan loss provisioning associated with a
growing portfolio. We would expect to have higher charge-offs as a percent of
revenue, as compared to our targeted range, in the first quarter of 2022 due to
the heavier mix of new customer loans in the second half of 2021, which have a
higher loss profile. We expect to return within our targeted range beginning in
the second quarter as the portfolio seasons with a mix of new and returning
customers. While we initially anticipated that the COVID-19 pandemic would have
a negative impact on our credit quality, instead the large quantity of monetary
stimulus provided by the US government to our customer base has generally
allowed customers to continue making payments on their loans, which resulted in
a decrease in net charge-offs as a percentage of revenue compared to last year.
We continue to monitor the portfolio during the economic recovery resulting from
COVID-19 and will adjust our underwriting and credit policies to mitigate any
potential negative impacts as needed. As loan demand continues to return to
pre-pandemic levels and the loan portfolio grows, we expect our total loan loss
provision as a percentage of revenues to be within our targeted range of
approximately 45% to 55% of revenue.

The combined loan loss reserve as a percentage of combined loans receivable
totaled 12%, 12% and 13% as of December 31, 2021, 2020 and 2019, respectively.
The relatively steady loan loss reserve percentage reflects the stable credit
performance of the portfolio, and we would expect the loan loss reserve to
stabilize in the 12-13% range as we manage the portfolio to ensure a consistent
mix of new and returning customers within the portfolio and return the portfolio
to a normalized credit profile. Past due loan balances at December 31, 2021 were
10% of total combined loans receivable - principal, up from 6% from a year ago,
due to the number of new customers originated beginning in the second quarter of
2021, and is consistent with our historical past due percentages prior to the
pandemic. We, and the bank originators we support, are no longer offering
specific COVID-19 payment deferral programs, but continue to offer other payment
flexibility programs if certain qualifications are met. We are continuing to see
that most customers are meeting their scheduled payments once they exit the
payment deferral program. We anticipate the combined loan loss reserve as a
percentage of combined loans receivable, as well as our past due loan balances
as a percentage of total combined loans receivable-principal, will maintain at
their historic norms as we continue to grow our loan portfolio with a consistent
mix of new and returning customers.
                                       52
--------------------------------------------------------------------------------


We also look at Rise and Elastic principal loan charge-offs (including both
credit and fraud losses) by loan vintage as a percentage of combined loans
originated-principal. As the below table shows, our cumulative principal loan
charge-offs for Rise and Elastic through December 31, 2021 for each annual
vintage since the 2013 vintage are generally under 30% and continue to generally
trend at or slightly below our 20% to 25% long-term targeted range. During 2019,
we implemented new fraud tools that have helped lower fraud losses for the 2019
vintage and rolled out our next generation of credit models during the second
quarter of 2019 and continued refining the models during the third and fourth
quarters of 2019. Our payment deferral programs have also assisted in reducing
losses in our 2019 and 2020 vintages coupled with a lower volume of new loan
originations in our 2020 vintage. The 2019 and 2020 vintages are both performing
better than the 2017 and 2018 vintages. While still early, we would expect the
2021 vintage to be at or near 2018 levels or slightly lower given the increased
volume of new customer loans originated this year and a return of net
charge-offs to our targeted range of 45-55% of revenue. It is also possible that
the cumulative loss rates on all vintages will increase and may exceed our
recent historical cumulative loss experience due to the economic impact of a
prolonged crisis resulting from the COVID-19 pandemic.
[[Image Removed: elvt-20211231_g5.jpg]]
(1) The 2020 and 2021 vintages are not yet fully mature from a loss perspective.
(2) UK included in the 2013 to 2017 vintages only.

                                       53
--------------------------------------------------------------------------------


We also look at Today Card principal loan charge-offs (including both credit and
fraud losses) by account vintage as a percentage of account principal
originations. As the below table shows, our cumulative principal credit card
charge-offs through December 31, 2021 for the 2020 account vintage is under 7%.
While our 2021 account vintage is currently performing better than 2020, we
expect the 2021 account vintage to have losses at or higher than the 2020
account vintage based on the volume of new customers originated in the second
half of 2021. The Today Card requires accounts to be charged off that are more
than 120 days past due which results in a longer maturity period for the
cumulative loss curve related to this portfolio. Our 2018 and 2019 vintages are
considered to be test vintages and were comprised of limited originations volume
and not reflective of our current underwriting standards.

[[Image Removed: elvt-20211231_g6.jpg]]

                                       54
--------------------------------------------------------------------------------

Margins

                                                    Twelve Months Ended December 31,
Margin metrics (dollars in thousands)             2021             2020            2019

Revenues                                     $   416,637       $ 465,346       $ 638,873
Net charge-offs(1)                              (163,705)       (189,823)       (330,317)

Additional provision for loan losses(1) (22,125) 32,913

       4,655
Direct marketing costs                           (41,546)        (20,282)        (38,548)
Other cost of sales                              (13,951)         (8,124)        (10,083)
Gross profit                                     175,310         280,030         264,580
Operating expenses                              (155,980)       (159,819)       (163,011)
Operating income                             $    19,330       $ 120,211       $ 101,569
As a percentage of revenues:
Net charge-offs                                       39  %           41  %           52  %
Additional provision for loan losses                   6              (7)             (1)
Direct marketing costs                                10               4               6
Other cost of sales                                    3               2               2
Gross margin                                          42              60              41
Operating expenses                                    37              34              26
Operating margin                                       5  %           26  %           16  %


_________

(1) Non-GAAP measure. See “Non-GAAP Financial Measures – Net Write-offs and Additional Allowance for Loan Losses”.


Gross margin is calculated as revenues minus cost of sales, or gross profit,
expressed as a percentage of revenues, and operating margin is calculated as
operating income expressed as a percentage of revenues. Due to the negative
impact of COVID-19 on our loan balances and revenue, we are monitoring our
profit margins closely. Long-term, we intend to continue to manage the business
to a targeted 20% operating margin.

Recent operating margin trends.   For the year ended December 31, 2021, our
operating margin was 5%, which was a decrease from 26% in the prior year period,
as well as a decrease from 16% in 2019. The margin decreases experienced in 2021
were primarily driven by the upfront costs associated with credit provisioning
and direct marketing expense associated with the increased new and former
customer loan origination volume as we grow and rebuild our loan portfolio from
the impacts of COVID-19. The margins achieved in 2020 were not reflective of our
historical performance as we experienced a significant decline in the loan
portfolio due to a lack of customer demand resulting from the effects of
COVID-19 and related government stimulus programs. These impacts resulted in a
lower level of direct marketing expense and materially lower credit losses
during 2020, leading to an increased gross margin.

Our operating expense metrics have been negatively impacted by the COVID-19
pandemic and its impact on loan balances and revenue. We began to see
improvements in our operating expense metric in the third and fourth quarter of
2021 due to the growth in the portfolio and associated increase in revenue
during those periods as we continued to manage and maintain a relatively
consistent operating expense between the two quarters. In the short term, with
the growth in the loan portfolio experienced in 2021, we expect our expense
metrics to continue to improve and move toward our target range as we focus on
growth to increase our new and former customer loan volume and continue to scale
the overall loan portfolio. In the long term, as we grow the loan portfolio
while actively managing our operating expenses, we expect to see our operating
expense metrics return to approximately 20-25% of revenue. However, management
will continue to look for opportunities to reduce our expenses to help offset
the increased loan origination and direct marketing expenses.
                                       55
--------------------------------------------------------------------------------

NON-GAAP FINANCIAL MEASURES


We believe that the inclusion of the following non-GAAP financial measures in
this Annual Report on Form 10-K can provide a useful measure for
period-to-period comparisons of our core business, provide transparency and
useful information to investors and others in understanding and evaluating our
operating results, and enable investors to better compare our operating
performance with the operating performance of our competitors. Management uses
these non-GAAP financial measures frequently in its decision-making because they
provide supplemental information that facilitates internal comparisons to the
historical operating performance of prior periods and give an additional
indication of our core operating performance. However, non-GAAP financial
measures are not a measure calculated in accordance with US generally accepted
accounting principles, or US GAAP, and should not be considered an alternative
to any measures of financial performance calculated and presented in accordance
with US GAAP. Other companies may calculate these non-GAAP financial measures
differently than we do.

Adjusted Earnings (Loss)

Adjusted earnings (loss) represents our net earnings (loss) from continuing operations, adjusted to exclude:

• Uncertain tax position

• Possible losses related to legal issues

• Cumulative tax effect of adjustments

Adjusted diluted earnings (loss) per share is adjusted earnings (loss) divided by the diluted weighted average number of shares outstanding.


The following table presents a reconciliation of net income (loss) from
continuing operations and diluted earnings (loss) per share to Adjusted earnings
(loss) and Adjusted diluted earnings (loss) per share, which excludes the impact
of the contingent losses and uncertain tax position for each of the periods
indicated:

                                                                   Twelve Months Ended December 31,
(Dollars in thousands except per share amounts)              2021                 2020                2019
Net income (loss) from continuing operations           $     (33,598)         $   36,202          $   26,196
Impact of uncertain tax position                               1,264                   -                   -
Impact of contingent losses related to legal
matters                                                       22,751              24,079                   -
Cumulative tax effect of adjustments                          (4,007)             (5,577)                  -
Adjusted earnings (loss)                               $     (13,590)       

$54,704 $26,196


Diluted earnings (loss) per share - continuing
operations                                             $       (0.98)         $     0.87          $     0.59
Impact of uncertain tax position                                0.04                   -                   -
Impact of contingent losses related to legal
matters                                                         0.66                0.58                   -
Cumulative tax effect of adjustments                           (0.12)              (0.14)                  -
Adjusted diluted earnings (loss) per share             $       (0.40)       

$1.31 $0.59

Adjusted EBITDA and Adjusted EBITDA margin

Adjusted EBITDA represents our net income (loss) from continuing operations, adjusted to exclude:

• Net interest expense primarily associated with notes payable under credit facilities used to fund loan portfolios;

•Remuneration in shares;

• Depreciation of fixed assets and intangible assets;

• Gains and losses from disposals or potential losses related to legal issues included in non-operating loss; and

•Income taxes.

Adjusted EBITDA margin is Adjusted EBITDA divided by revenue.


Management believes that Adjusted EBITDA and Adjusted EBITDA margin are useful
supplemental measures to assist management and investors in analyzing the
operating performance of the business and provide greater transparency into the
results of operations of our core business.
                                       56
--------------------------------------------------------------------------------


Adjusted EBITDA and Adjusted EBITDA margin should not be considered as
alternatives to net income from continuing operations or any other performance
measure derived in accordance with US GAAP. Our use of Adjusted EBITDA and
Adjusted EBITDA margin has limitations as an analytical tool, and you should not
consider it in isolation or as a substitute for analysis of our results as
reported under US GAAP. Some of these limitations are:

•Although depreciation and amortization are non-cash charges, the assets being
depreciated and amortized may have to be replaced in the future, and Adjusted
EBITDA does not reflect expected cash capital expenditure requirements for such
replacements or for new capital assets;

•Adjusted EBITDA does not reflect changes or cash requirements for our working capital requirements; and


•Adjusted EBITDA does not reflect interest associated with notes payable used
for funding the loan portfolios, for other corporate purposes or tax payments
that may represent a reduction in cash available to us.

The following table presents a reconciliation of net income (loss) from
continuing operations to Adjusted EBITDA and Adjusted EBITDA margin for each of
the periods indicated:

                                                          Twelve Months Ended December 31,
(Dollars in thousands)                                  2021             2020            2019
Net income (loss) from continuing operations       $   (33,598)      $  36,202       $  26,196
Adjustments:
Net interest expense                                    38,479          49,020          62,533
Share-based compensation                                 6,640           8,110           9,875

Depreciation and amortization                           18,470          18,133          15,879
Non-operating loss                                      22,232          24,079             681
Income tax expense (benefit)                            (7,783)         10,910          12,159
Adjusted EBITDA                                    $    44,440       $ 146,454       $ 127,323

Adjusted EBITDA margin                                      11  %           31  %           20  %


Free cash flow

Free cash flow (“FCF”) represents our net cash provided by continuing operating activities, adjusted to include:

• Net write-offs – capital loans combined; and

• Capital expenditures.

The following table provides a reconciliation of net cash provided by continuing operating activities to FCF for each of the periods indicated:


                                                                          Twelve Months Ended December 31,
(Dollars in thousands)                                              2021                   2020                2019
Net cash provided by continuing operating
activities(1)                                                $    156,159              $  210,063          $  333,316

Adjustments:

Net charge-offs - combined principal loans                       (123,073)               (144,697)           (258,250)
Capital expenditures                                              (17,281)                (16,069)            (17,745)
FCF                                                          $     15,805              $   49,297          $   57,321


 _________

(1) Net cash from continuing operating activities includes net charges – combined finance costs.

Net write-offs and additional provision for loan losses


We break out our total provision for loan losses into two separate items-first,
the amount related to net charge-offs, and second, the additional provision for
loan losses needed to adjust the combined loan loss reserve to the appropriate
amount at the end of each month based on our loan loss provision methodology. We
believe this presentation provides more detail related to the components of our
total provision for loan losses when analyzing the gross margin of our business.
                                       57
--------------------------------------------------------------------------------


Net charge-offs.  Net charge-offs comprise gross charge-offs offset by
recoveries on prior charge-offs. Gross charge-offs include the amount of
principal and accrued interest on loans that are more than 60 days past due
(Rise and Elastic) or 120 days (Today Card), or sooner if we receive notice that
the loan will not be collected, such as a bankruptcy notice or identified fraud.
Any payments received on loans that have been charged off are recorded as
recoveries and reduce total gross charge-offs.

Additional provision for loan losses.   Additional provision for loan losses is
the amount of provision for loan losses needed for a particular period to adjust
the combined loan loss reserve to the appropriate level in accordance with our
underlying loan loss reserve methodology.

                                                  Twelve Months Ended December 31,
(Dollars in thousands)                           2021               2020           2019

Net charge-offs                           $    163,705           $ 189,823      $ 330,317
Additional provision for loan losses            22,125             (32,913)        (4,655)
Provision for loan losses                 $    185,830           $ 156,910      $ 325,662


Combined loan information

The Elastic line of credit product is originated by a third-party lender,
Republic Bank, which initially provides all of the funding for that product.
Republic Bank retains 10% of the balances of all of the loans originated and
sells a 90% loan participation in the Elastic lines of credit to a third-party
SPV, Elastic SPV, Ltd. Elevate is required to consolidate Elastic SPV, Ltd. as a
VIE under US GAAP and the consolidated financial statements include revenue,
losses and loans receivable related to the 90% of Elastic lines of credit
originated by Republic Bank and sold to Elastic SPV.

Beginning in the fourth quarter of 2018, we started licensing our Rise
installment loan brand to a third-party lender, FinWise Bank, which originates
Rise installment loans in 17 states. FinWise Bank retains 4% of the balances of
all the loans originated and sells a 96% participation to a third-party SPV, EF
SPV, Ltd. We do not own EF SPV, but we are required to consolidate EF SPV as a
VIE under US GAAP and the consolidated financial statements include revenue,
losses and loans receivable related to the 96% of Rise installment loans
originated by FinWise Bank and sold to EF SPV.

Beginning in 2018, we started licensing the Today Card brand and our
underwriting services and platform to launch a credit card product originated by
CCB, which initially provides all of the funding for that product. CCB retains
5% of the credit card receivable balance of all the receivables originated and
sells a 95% participation in the Today Card lines of credit to us. The Today
Card program was expanded in 2020.

Beginning in the third quarter of 2020, we also license our Rise installment
loan brand to an additional bank, CCB, which originates Rise installment loans
in three different states than FinWise Bank. Similar to the relationship with
FinWise Bank, CCB retains 5% of the balances of all of the loans originated and
sells the remaining 95% loan participation in those Rise installment loans to EC
SPV. We do not own EC SPV, but we are required to consolidate EC SPV as a VIE
under US GAAP and the consolidated financial statements include revenue, losses
and loans receivable related to the 95% of the Rise installment loans originated
by CCB and sold to EC SPV.

The information presented in the tables below on a combined basis are non-GAAP
measures based on a combined portfolio of loans, which includes the total amount
of outstanding loans receivable that we own and that are on our balance sheets
plus outstanding loans receivable originated and owned by third parties that we
guarantee pursuant to CSO programs in which we participate. There were no new
loan originations in 2021 under our CSO programs, but we continued to have
obligations as the CSO until the wind-down of this portfolio was completed in
the third quarter of 2021. See "-Basis of Presentation and Critical Accounting
Policies-Allowance and liability for estimated losses on consumer loans."

We believe these non-GAAP measures provide investors with important information
needed to evaluate the magnitude of potential loan losses and the opportunity
for revenue performance of the combined loan portfolio on an aggregate basis. We
also believe that the comparison of the combined amounts from period to period
is more meaningful than comparing only the amounts reflected on our balance
sheets since both revenues and cost of sales as reflected in our financial
statements are impacted by the aggregate amount of loans we own and those CSO
loans we guaranteed.

Our use of total combined loans and fees receivable has limitations as an
analytical tool, and you should not consider it in isolation or as a substitute
for analysis of our results as reported under US GAAP. Some of these limitations
are:

• Rise CSO loans were originated and held by a third party lender; and

• The Rise CSO loans were funded by a third party lender and were not part of the VPC Facility.

                                       58
--------------------------------------------------------------------------------

At each of the period ends indicated, the following table presents a reconciliation of:

• Loans receivable, net, held by the company (which reconciles our consolidated balance sheets included elsewhere in this Annual Report on Form 10-K);


•Loans receivable, net, guaranteed by the Company (as disclosed in Note 3 of our
consolidated financial statements included elsewhere in this Annual Report on
Form 10-K);

•Loans receivable combined (which we use as a non-GAAP measure); and

•Combined loan loss reserve (which we use as a non-GAAP measure).

                                       59
--------------------------------------------------------------------------------


                                                                           2019                                                 2020                                                                               2021
(Dollars in thousands)                                                 
December 31           March 31           June 30            September 30           December 31           March 31           June 30            September 30           December 31

Company Owned Loans:
Loans receivable - principal, current,
company owned                                                         $    

530 463 $486,396 $387,939 $346,380

$372,320 $331,251 $372,068 $466,140

          $    501,552
Loans receivable - principal, past due,
company owned                                                               58,489             53,923             18,917                 21,354                25,563             21,678             27,231                 46,730                57,207
Loans receivable - principal, total,
company owned                                                              588,952            540,319            406,856                367,734               397,883            352,929            399,299                512,870               558,759
Loans receivable - finance charges,
company owned                                                               33,033             31,621             25,606                 24,117                25,348             21,393             19,157                 22,960                23,602
Loans receivable - company owned                                           621,985            571,940            432,462                391,851               423,231            374,322            418,456                535,830               582,361
Allowance for loan losses on loans
receivable, company owned                                                  (79,912)           (76,188)           (59,438)               (49,909)              (48,399)           (39,037)           (40,314)               (56,209)              (71,204)
Loans receivable, net, company owned                                  $    

542,073 $495,752 $373,024 $341,942

$374,832 $335,285 $378,142 $479,621

          $    511,157
Third-Party Loans Guaranteed by the
Company:
Loans receivable - principal, current,
guaranteed by company                                                 $     

17,474 $12,606 $6,755 $9,129

  $      1,795          $     145          $      17          $           -          $          -
Loans receivable - principal, past due,
guaranteed by company                                                          723                564                117                    314                   144                 15                  4                      -                     -
Loans receivable - principal, total,
guaranteed by company(1)                                                    18,197             13,170              6,872                  9,443                 1,939                160                 21                      -                     -
Loans receivable - finance charges,
guaranteed by company(2)                                                     1,395              1,150                550                    679                   299                 22                  4                      -                     -
Loans receivable - guaranteed by
company                                                                     19,592             14,320              7,422                 10,122                 2,238                182                 25                      -                     -
Liability for losses on loans
receivable, guaranteed by company                                           (2,080)            (1,571)            (1,156)                (1,421)                 (680)              (122)                (7)                     -                     -
Loans receivable, net, guaranteed by
company(3)                                                            $     

17,512 $12,749 $6,266 $8,701

  $      1,558          $      60          $      18          $           -          $          -
Combined Loans Receivable(3):
Combined loans receivable - principal,
current                                                               $    

547,937 $499,002 $394,694 $355,509

$374,115 $331,396 $372,085 $466,140

          $    501,552
Combined loans receivable - principal,
past due                                                                    59,212             54,487             19,034                 21,668                25,707             21,693             27,235                 46,730                57,207
Combined loans receivable - principal                                      607,149            553,489            413,728                377,177               399,822            353,089            399,320                512,870               558,759
Combined loans receivable - finance
charges                                                                     34,428             32,771             26,156                 24,796                25,647             21,415             19,161                 22,960                23,602
Combined loans receivable                                             $    

641,577 $586,260 $439,884 $401,973

  $    425,469          $ 374,504          $ 418,481          $     535,830          $    582,361


                                       60
--------------------------------------------------------------------------------

                                                                              2019                                                 2020                                                                               2021
(Dollars in thousands)                                                     December 31           March 31           June 30            September 30           December 31           March 31           June 30            September 30           December 31

Combined Loan Loss Reserve(3):
Allowance for loan losses on loans
receivable, company owned                                                $  

(79,912) ($76,188) ($59,438) ($49,909)

     $    (48,399)         $ (39,037)         $ (40,314)         $     (56,209)         $    (71,204)
Liability for losses on loans receivable,
guaranteed by company                                                          (2,080)            (1,571)            (1,156)                (1,421)                 (680)              (122)                (7)                     -                     -
Combined loan loss reserve                                               $  

(81,992) ($77,759) ($60,594) ($51,330)

     $    (49,079)         $ (39,159)         $ (40,321)         $     (56,209)         $    (71,204)
Combined loans receivable - principal,
past due(3)                                                              $  

59,212 $54,487 $19,034 $21,668

$25,707 $21,693 $27,235 $46,730 $57,207
Combined loans receivable – principal(3)

                                      607,149            553,489            413,728                377,177               399,822            353,089            399,320                512,870               558,759

Percentage past due                                                            10%                 10%                 5%                   6%                    6%                   6%                 7%                   9%                    10%

Combined loan loss reserve as a percentage
of combined loans receivable(3)(4)                                             13%                 13%                14%                  13%                    12%                 10%                10%                  11%                    12%
Allowance for loan losses as a percentage
of loans receivable - company owned                                            13%                 13%                14%                  13%                    11%                 10%                10%                  11%                    12%


_________

(1)Represents loans originated by third-party lenders through the CSO programs,
which are not included in our financial statements.
(2)Represents finance charges earned by third-party lenders through the CSO
programs, which are not included in our consolidated financial statements. The
wind-down of the CSO program was completed in the third quarter of 2021.
(3)Non-GAAP measure.
(4)Combined loan loss reserve as a percentage of combined loans receivable is
determined using period-end balances.



                                       61
--------------------------------------------------------------------------------

COMPONENTS OF OUR OPERATING RESULTS

Revenue


Our revenues are composed of Rise finance charges and CSO fees (inclusive of
finance charges attributable to the participation in Rise installment loans
originated by FinWise Bank and CCB), cash advance fees attributable to the
participation in Elastic lines of credit that we consolidate, finance charges
and fee revenues related to the Today Card credit card product (inclusive of
finance charges attributable to the participations in the credit card
receivables originated by CCB), and marketing and licensing fees received from
third-party lenders related to the Rise, Rise CSO, Elastic, and Today Card
products. See "-Overview" above for further information on the structure of
Elastic.

Cost of sales

Allowance for loan losses. Loan loss provision consists of amounts charged against income during the period related to net write-offs and additional loan loss provision necessary to adjust the loan loss reserve to the appropriate amount at the end of each month. based on our loan loss methodology.


Direct marketing costs.   Direct marketing costs consist of online marketing
costs such as sponsored search and advertising on social networking sites, and
other marketing costs such as purchased television and radio advertising and
direct mail print advertising. In addition, direct marketing cost includes
affiliate costs paid to marketers in exchange for referrals of potential
customers. All direct marketing costs are expensed as incurred.

Other cost of sales. Other costs of sales include data verification costs associated with signing up prospective customers and Automated Clearing House (“ACH”) transaction costs associated with funding and making loan payments to customers.

Operating Expenses


Operating expenses consist of compensation and benefits, professional services,
selling and marketing, occupancy and equipment, depreciation and amortization as
well as other miscellaneous expenses.

Compensation and benefits.   Salaries and personnel-related costs, including
benefits, bonuses and share-based compensation expense, comprise a majority of
our operating expenses and these costs are driven by our number of employees.

Professional services.   These operating expenses include costs associated with
legal, accounting and auditing, recruiting and outsourced customer support and
collections.

Selling and marketing.   Selling and marketing costs include costs associated
with the use of agencies that perform creative services and monitor and measure
the performance of the various marketing channels. Selling and marketing costs
also include the production costs associated with media advertisements that are
expensed as incurred over the licensing or production period. These expenses do
not include direct marketing costs incurred to acquire customers, which
comprises CAC.

Occupancy and equipment. Occupancy and equipment includes rental charges for our leased facilities, as well as telephony and web hosting charges.


Depreciation and amortization.   We capitalize all acquisitions of property and
equipment of $500 or greater as well as certain software development costs.
Costs incurred in the preliminary stages of software development are expensed.
Costs incurred thereafter, including external direct costs of materials and
services as well as payroll and payroll-related costs, are capitalized.
Post-development costs are expensed. Depreciation is computed using the
straight-line method over the estimated useful lives of the depreciable assets.

Other expense

Net interest expense.  Net interest expense primarily includes the interest
expense associated with the VPC Facility that funds the Rise installment loans,
the ESPV Facility related to the Elastic lines of credit and related Elastic SPV
entity, the EF SPV and EC SPV Facilities that fund Rise installment loans
originated by FinWise Bank and CCB, respectively, and the TSPV facility used to
fund credit card receivable purchases. Interest expense also includes any
amortization of deferred debt issuance cost and prepayment penalties incurred
associated with the debt facilities.
                                       62
--------------------------------------------------------------------------------

RESULTS OF OPERATIONS


This section of this Form 10-K generally discusses 2021 and 2020 items and
year-to-year comparisons between 2021 and 2020. Discussions of 2019 items and
year-to-year comparisons between 2020 and 2019 that are not included in this
Form 10-K can be found in "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in Part II, Item 7 of the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2020.

The following table sets forth our consolidated statements of operations data
for each of the periods indicated. Effective June 29, 2020, ECIL was placed into
administration in the UK, and we deconsolidated ECIL and present it as
discontinued operations for all periods presented.

                                                                           Years ended December 31,
Consolidated statements of operations data (dollars in
thousands)                                                       2021                2020                2019

Revenues                                                     $  416,637          $  465,346          $  638,873
Cost of sales:
Provision for loan losses                                       185,830             156,910             325,662
Direct marketing costs                                           41,546              20,282              38,548
Other cost of sales                                              13,951               8,124              10,083
Total cost of sales                                             241,327             185,316             374,293
Gross profit                                                    175,310             280,030             264,580
Operating expenses:
Compensation and benefits                                        76,408              84,103              89,417
Professional services                                            32,499              31,634              31,834
Selling and marketing                                             3,252               3,450               4,773
Occupancy and equipment                                          21,735              18,840              15,989
Depreciation and amortization                                    18,470              18,133              15,879
Other                                                             3,616               3,659               5,119
Total operating expenses                                        155,980             159,819             163,011
Operating income                                                 19,330             120,211             101,569
Other expense:
Net interest expense                                            (38,479)            (49,020)            (62,533)

Non-operating loss                                              (22,232)            (24,079)               (681)
Total other expense                                             (60,711)            (73,099)            (63,214)
Income (loss) from continuing operations before taxes           (41,381)             47,112              38,355
Income tax expense (benefit)                                     (7,783)             10,910              12,159
Net income (loss) from continuing operations                    (33,598)             36,202              26,196
Net income (loss) from discontinued operations                        -             (15,610)              5,987
Net income (loss)                                            $  (33,598)         $   20,592          $   32,183


                                       63
--------------------------------------------------------------------------------


                                                                                Years ended December 31,
As a percentage of revenues                                        2021                    2020                   2019

Cost of sales:
Provision for loan losses                                               45  %                   34  %                  51  %
Direct marketing costs                                                  10                       4                      6
Other cost of sales                                                      3                       2                      2
Total cost of sales                                                     58                      40                     59
Gross profit                                                            42                      60                     41
Operating expenses:
Compensation and benefits                                               18                      18                     14
Professional services                                                    8                       7                      5
Selling and marketing                                                    1                       1                      1
Occupancy and equipment                                                  5                       4                      3
Depreciation and amortization                                            4                       4                      2
Other                                                                    1                       1                      1
Total operating expenses                                                37                      34                     26
Operating income                                                         5                      26                     16
Other expense:
Net interest expense                                                    (9)                    (11)                   (10)

Non-operating loss                                                      (5)                     (5)                     -
Total other expense                                                    (15)                    (16)                   (10)
Income (loss) from continuing operations before taxes                  (10)                     10                      6
Income tax expense (benefit)                                            (2)                      2                      2
Net income (loss) from continuing operations                            (8)                      8                      4
Net income (loss) from discontinued operations                           -                      (3)                     1
Net income (loss)                                                       (8  %)                   4  %                   5  %

Comparison of years ended December 31, 2021 and 2020

Revenues

                                                                         Years ended December 31,
                                                           2021                                               2020                                        Period-to-period change
                                                                   Percentage of                                   Percentage of
(Dollars in thousands)                      Amount                    revenues                 Amount                 revenues                       Amount                     Percentage

Finance charges                       $    412,547                              99  %       $ 464,083                          100  %       $              (51,536)                      (11) %
Other                                        4,090                               1              1,263                            -                           2,827                       224
Revenues                              $    416,637                             100  %       $ 465,346                          100  %       $              (48,709)                      (10) %


Revenues decreased by $48.7 million, or 10%, from $465.3 million for the year
ended December 31, 2020 to $416.6 million for the year ended December 31, 2021.
The decrease in revenue is primarily attributable to a lower average combined
loans receivable-principal balance coupled with lower effective APRs earned on
the loan portfolio.
                                       64
--------------------------------------------------------------------------------


The tables below break out this change in revenue (including CSO fees and cash
advance fees) by product:

                                                                   Year Ended December 31, 2021
                                                 Rise(1)
                                              (Installment               Elastic                  Today
(Dollars in thousands)                           Loans)             (Lines of Credit)         (Credit Cards)                        Total

Average combined loans receivable -
principal(2)                                 $    247,650          $        160,142          $      25,044                      $   432,836
Effective APR                                         103  %                     94  %                  31  %                            95  %
Finance charges                              $    253,895          $        150,961          $       7,691                      $   412,547
Other                                                 711                       664                  2,715                            4,090
Total revenue                                $    254,606          $        151,625          $      10,406                      $   416,637

                                                                   Year

Ended December 31, 2020

                                                 Rise(1)
                                              (Installment               Elastic                  Today
(Dollars in thousands)                           Loans)             (Lines of Credit)         (Credit Cards)                        Total

Average combined loans receivable -
principal(2)                                 $    263,162          $        182,796          $       8,025                      $   453,983
Effective APR                                         110  %                     94  %                  30  %                           102  %
Finance charges                              $    290,555          $        171,086          $       2,442                      $   464,083
Other                                                 200                       233                    830                            1,263
Total revenue                                $    290,755          $        171,319          $       3,272                      $   465,346


 _________
(1)Includes loans originated by third-party lenders through the CSO programs,
which are not included in our consolidated financial statements..
(2)Average combined loans receivable - principal is calculated using daily
Combined loans receivable - principal balances. Not a financial measure prepared
in accordance with US GAAP. See reconciliation table accompanying this release
for a reconciliation of non-GAAP financial measures to the most directly
comparable financial measure calculated in accordance with US GAAP.

Our average combined loans receivable principal decreased $21 million for the
year ended December 31, 2021 as compared to 2020. This decrease in average
balance is primarily due to lower combined loans receivable-principal balances
in the Rise and Elastic portfolios in the first half of 2021 which were impacted
by the COVID-19 pandemic and substantial government assistance to our customers
prior to the growth which commenced in late second quarter 2021. The decrease in
average balances accounted for approximately $32 million of the reduction in
revenue for the period. Our average APR declined from 102% for the year ended
December 31, 2020 to 95% for the year ended December 31, 2021. This reduction in
the effective APR is due to both the lower effective interest rates earned on
loans in a deferral status under the payment flexibility tools that were
implemented in response to the COVID-19 pandemic and the growth of Today Card
relative to the total loan portfolio, which has the lowest APR. The lower
effective APR accounted for approximately $20 million of the reduction in
revenue for the period. We expect the overall effective APR of the loan
portfolio to remain flat going forward.

Cost of sales

                                                                      Years ended December 31,                                                       Period-to-period
                                                         2021                                              2020                                           change
                                                                 Percentage of                                  Percentage of
(Dollars in thousands)                    Amount                   revenues                 Amount                revenues                    Amount                 Percentage

Cost of sales:
Provision for loan losses           $    185,830                             45  %       $ 156,910                          34  %       $        28,920                       18  %
Direct marketing costs                    41,546                             10             20,282                           4                   21,264                      105
Other cost of sales                       13,951                              3              8,124                           2                    5,827                       72
Total cost of sales                 $    241,327                             58  %       $ 185,316                          40  %       $        56,011                       30  %


Allowance for loan losses. The provision for loan losses increased by $28.9 millioni.e. 18%, of $156.9 million for the year ended December 31, 2020 for
$185.8 million for the year ended December 31, 2021.

                                       65
--------------------------------------------------------------------------------

The tables below detail these changes by loan product:

                                                                       Year Ended December 31, 2021
                                                      Rise
                                                  (Installment               Elastic                  Today
(Dollars in thousands)                               Loans)             (Lines of Credit)         (Credit Cards)                        Total

Combined loan loss reserve(1):
Beginning balance                                $     33,968          $         13,201          $       1,910                      $   49,079
Net charge-offs                                      (121,325)                  (38,240)                (4,140)                       (163,705)
Provision for loan losses                             135,576                    41,737                  8,517                         185,830
Ending balance                                   $     48,219          $         16,698          $       6,287                      $   71,204
Combined loans receivable(1)(2)                  $    324,290          $        207,853          $      50,218                      $  582,361
Combined loan loss reserve as a percentage
of ending combined loans receivable                        15  %                      8  %                  13  %                           12  %
Net charge-offs as a percentage of
revenues                                                   48  %                     25  %                  40  %                           39  %
Provision for loan losses as a percentage
of revenues                                                53  %                     28  %                  82  %                           45  %



                                                                   Year Ended December 31, 2020
                                                  Rise
                                              (Installment               Elastic                  Today
(Dollars in thousands)                           Loans)             (Lines of Credit)         (Credit Cards)                        Total

Combined loan loss reserve(1):
Beginning balance                            $     52,099          $         28,852          $       1,041                      $   81,992
Net charge-offs                                  (126,236)                  (61,639)                (1,948)                       (189,823)
Provision for loan losses                         108,105                    45,988                  2,817                         156,910
Ending balance                               $     33,968          $         13,201          $       1,910                      $   49,079
Combined loans receivable(1)(2)              $    247,797          $        163,154          $      14,518                      $  425,469
Combined loan loss reserve as a
percentage of ending combined loans
receivable                                             14  %                      8  %                  13  %                           12  %
Net charge-offs as a percentage of
revenues                                               43  %                     36  %                  60  %                           41  %
Provision for loan losses as a
percentage of revenues                                 37  %                     27  %                  86  %                           34  %


 _________

(1)Not a financial measure prepared in accordance with US GAAP. See "-Non-GAAP
Financial Measures" for more information and for a reconciliation to the most
directly comparable financial measure calculated in accordance with US GAAP.
(2)Includes loans originated by third-party lenders through the CSO programs,
which are not included in our financial statements.

Total loan loss provision for the year ended December 31, 2021 was 45% of
revenues, which was within our targeted range of 45% to 55%, and higher than 34%
for the year ended December 31, 2020. For the year ended December 31, 2021, net
charge-offs as a percentage of revenues was 39%, a decrease from 41% for the
comparable period in 2020. The increase in total loan loss provision as a
percentage of revenues in 2021 compared to last year was due to the increase in
new loan originations beginning in the second quarter of 2021 and charge-offs
and loan loss provisioning associated with a growing portfolio. While we
initially anticipated that the COVID-19 pandemic would have a negative impact on
our credit quality, instead the large quantity of monetary stimulus provided by
the US government to our customer base has generally allowed customers to
continue making payments on their loans, which resulted in a decrease in net
charge-offs as a percentage of revenue compared to last year. We continue to
monitor the portfolio during the economic recovery resulting from COVID-19 and
will adjust our underwriting and credit policies to mitigate any potential
negative impacts as needed. As loan demand continues to return to pre-pandemic
levels and the loan portfolio grows, we expect our total loan loss provision as
a percentage of revenues to be within our targeted range of approximately 45% to
55% of revenue.
                                       66
--------------------------------------------------------------------------------


The combined loan loss reserve as a percentage of combined loans receivable
totaled 12% as of both December 31, 2021 and December 31, 2020. The loan loss
reserve percentage is flat at December 31, 2021, reflecting the stable credit
performance of the portfolio, and we would expect the loan loss reserve to
stabilize in the 12-13% range as we manage the portfolio to ensure a consistent
mix of new and returning customers within the portfolio and return the portfolio
to a normalized credit profile. Past due loan balances at December 31, 2021 were
10% of total combined loans receivable - principal, up significantly from 6%
from a year ago, due to the number of new customers originated beginning in the
second quarter of 2021, but is consistent with our historical past due
percentages prior to the pandemic.

Direct marketing costs.   Direct marketing costs increased by approximately
$21.3 million, or 105%, from $20.3 million for the year ended December 31, 2020
to $41.5 million for the year ended December 31, 2021. We had limited marketing
activities and new loan origination volume in 2020 in response to the COVID-19
pandemic. We have seen a return to more normalized new customer acquisition in
all the three loan products in 2021 as the economy continues to recover from the
COVID-19 pandemic and demand for the loan products returns. For the year ended
December 31, 2021, the number of new customers acquired increased to 168,339
compared to 68,245 during the year ended December 31, 2020. We anticipate our
direct marketing costs will continue to increase as we focus on growing our loan
portfolio. Our CAC for the year ended December 31, 2021 was lower than the year
ended December 31, 2020 at $247 as compared to $297, with 2020 not reflective of
our historical CAC due to the significant reduction in new loan originations due
to the COVID-19 pandemic. We believe our CAC in future quarters will continue to
remain within or below our target range of $250 to $300 as we continue to
optimize the efficiency of our marketing channels and continue to grow the Today
Card which successfully generated new customers at a sub-$100 CAC.

Other cost of sales.   Other cost of sales increased by approximately $5.8
million, or 72%, from $8.1 million for the year ended December 31, 2020 to $14.0
million for the year ended December 31, 2021 due to increased data verification
costs resulting from increased loan origination volume.

Operating expenses

                                                                        Years ended December 31,                                                       Period-to-period
                                                           2021                                              2020                                           change
                                                                   Percentage of                                  Percentage of
(Dollars in thousands)                      Amount                   revenues                 Amount                revenues                    Amount                 Percentage

Operating expenses:
Compensation and benefits             $     76,408                             18  %       $  84,103                          18  %       $        (7,695)                      (9) %
Professional services                       32,499                              8             31,634                           7                      865                        3
Selling and marketing                        3,252                              1              3,450                           1                     (198)                      (6)
Occupancy and equipment                     21,735                              5             18,840                           4                    2,895                       15
Depreciation and amortization               18,470                              4             18,133                           4                      337                        2
Other                                        3,616                              1              3,659                           1                      (43)                      (1)
Total operating expenses              $    155,980                             37  %       $ 159,819                          34  %       $        (3,839)                      (2) %


Compensation and benefits.   Compensation and benefits decreased by $7.7
million, or 9%, from $84.1 million for the year ended December 31, 2020 to $76.4
million for the year ended December 31, 2021 primarily due to the reduction in
staff related to an operating expense reduction plan we implemented in the
second and third quarters of 2020 in response to the pandemic.

Professional services.   Professional services increased by $0.9 million, or 3%,
from $31.6 million for the year ended December 31, 2020 to $32.5 million for the
year ended December 31, 2021 due to increased legal expenses, partially offset
by decreased board of directors' stock compensation expense.

Selling and marketing.   Selling and marketing decreased by $0.2 million, or 6%,
from $3.5 million for the year ended December 31, 2020 to $3.3 million for the
year ended December 31, 2021 primarily due to decreased marketing agency fees.

Occupancy and equipment.   Occupancy and equipment increased by $2.9 million, or
15%, from $18.8 million for the year ended December 31, 2020 to $21.7 million
for the year ended December 31, 2021 primarily due to increased web hosting,
partially offset by licenses and rentals expense.

Depreciation and amortization. Depreciation increased by approximately $0.3 millionor 2%, of $18.1 million for the year ended
December 31, 2020 for $18.5 million for the year ended December 31, 2021
primarily due to the acceleration of a board member’s non-competition covenant
$0.5 million with a slight decrease in the depreciation charge between the two years.

                                       67
--------------------------------------------------------------------------------

 Net interest expense

                                                                       Years ended December 31,                                                       Period-to-period
                                                          2021                                              2020                                           change
                                                                   Percentage of                                 Percentage of
(Dollars in thousands)                     Amount                    revenues                Amount                revenues                    Amount                 Percentage

Net interest expense                $     38,479                                9  %       $ 49,020                          11  %       $       (10,541)                     (22) %


Net interest expense decreased $10.5 million, or 22%, during the year ended
December 31, 2021 versus the year ended December 31, 2020. Our average balance
of notes payable outstanding under the debt facilities for the year ended
December 31, 2021 decreased $74.7 million from $467.7 million for the year ended
December 31, 2020 to $393.0 million for the year ended December 31, 2021 due to
debt paydowns, including the maturity of one of our term notes, partially offset
by new draws to fund loan portfolio growth. This reduction resulted in a
decrease in interest expense of approximately $7.3 million. In addition, our
average effective cost of funds on our notes payable outstanding decreased from
10.5% for the year ended December 31, 2020 to 9.8% for the year ended
December 31, 2021, resulting in a decrease in interest expense of approximately
$3.2 million. At December 31, 2021, our effective cost of funds on new
borrowings on our VPC facilities is currently 8%, which is expected to reduce
our overall effective costs of funds as we continue to borrow on our debt
facilities in the future.

The following table shows the effective cost of funds of each debt facility for
the period:

                                                       Years ended December 31,
(Dollars in thousands)                                   2021              2020

VPC Facility
Average facility balance during the period         $     79,718        $ 157,484
Net interest expense                                      7,958           17,089

Effective cost of funds                                    10.0   %         10.9  %

ESPV Facility
Average facility balance during the period         $    167,442        $ 206,533
Net interest expense                                     16,925           21,489
Effective cost of funds                                    10.1   %         10.4  %

EF SPV Facility
Average facility balance during the period         $    100,265        $  99,012
Net interest expense                                      9,285            9,938
Effective cost of funds                                     9.3   %         10.0  %

EC SPV Facility
Average facility balance during the period         $     39,148        $   4,658
Net interest expense                                      3,814              504
Effective cost of funds                                     9.7   %         10.8  %

TSPV Facility
Average facility balance during the period(1)      $     28,963        $       -
Net interest expense                                        488                -
Effective cost of funds                                     7.6   %            -  %

(1) Average balance of the facility from inception to October 12, 2021 for December 31, 2021.

                                       68
--------------------------------------------------------------------------------


In July 2020, we entered into a new facility, the EC SPV Facility. As of
December 31, 2021, we have drawn $55.5 million on the EC SPV facility. In
October 2021, we entered into a new facility, the TSPV facility, and have drawn
$37 million as of December 31, 2021. Per the terms of the February 2019
amendments and the July 31, 2020 EC SPV agreement, we qualified for a 25 bps
rate reduction on the VPC, ESPV, EF SPV, and EC SPV facilities effective January
1, 2021. We have evaluated the interest rates for our debt and believe they
represent market rates based on our size, industry, operations and recent
amendments. As a result, the carrying value for the debt approximates the fair
value. See "-Liquidity and Capital Resources-Debt facilities" for more
information.

Non-operating loss

                                                                          Years ended December 31,                                                       Period-to-period
                                                             2021                                              2020                                           change
                                                                      Percentage of                                 Percentage of
(Dollars in thousands)                        Amount                    revenues                Amount                revenues                    Amount                 Percentage

Non-operating loss                     $     22,232                                5  %       $ 24,079                           5  %       $        (1,847)                      (8) %


During the year ended December 31, 2021, we accrued $22.8 million in contingent
losses related to legal matters related to our spin-off from our predecessor
company in 2014 and a regulatory litigation matter, partially offset by a $0.5
million recovery related to an indemnification for a former executive of the
Company. During the year ended December 31, 2020, we recognized $24.1 million in
non-operating expenses related to an estimated $17 million contingent loss
associated with a legal matter related to our spin-off from our predecessor
company in 2014 and a separate $7 million indemnification accrual related to a
legal matter for a former executive of the Company.

Income tax expense (benefit)

                                                                       Years ended December 31,                                                       Period-to-period
                                                          2021                                              2020                                           change
                                                                   Percentage of                                 Percentage of
(Dollars in thousands)                     Amount                    revenues                Amount                revenues                    Amount                 Percentage

Income tax expense (benefit)        $     (7,783)                              (2) %       $ 10,910                           2  %       $       (18,693)                    (171) %


Our income tax expense decreased $18.7 million, or 171%, from $10.9 million for
the year ended December 31, 2020 to a income tax benefit of $7.8 million for the
year ended December 31, 2021. We recognized an uncertain tax position of
$1.3 million in income tax expense due to a recent change in tax regulation in
the state of Texas that impacted our previously recognized research and
development state tax credits. Our effective tax rates for continuing operations
for the years ended December 31, 2021 and 2020 were 19% and 23%, respectively.
Our effective tax rates are different from the standard corporate federal income
tax rate of 21% primarily due to the uncertain tax position, of which
$1.2 million would impact our effective tax rate if realized, permanent
non-deductible items, and corporate state tax obligations in the states where we
have lending activities. Our US cash effective tax rate was approximately 0.3%
for 2021.

Net loss from discontinued operations


Our loss from discontinued operations on our UK entity (ECIL) for the year ended
December 31, 2020 consists of an investment loss of $28.0 million, operating
losses of $5.1 million, and a goodwill impairment loss of $9.3 million,
partially offset by an income tax benefit of $28.4 million.

Net income (loss)

                                                                       Years ended December 31,                                                       Period-to-period
                                                          2021                                              2020                                           change
                                                                   Percentage of                                 Percentage of
(Dollars in thousands)                     Amount                    revenues                Amount                revenues                    Amount                 Percentage

Net income (loss)                   $     (33,598)                             (8) %       $ 20,592                           4  %       $       (54,190)                     263  %


                                       69
--------------------------------------------------------------------------------


Our net income (loss) decreased $54.2 million, or 263%, from net income of $20.6
million for the year ended December 31, 2020 to a net loss of $33.6 million for
the year ended December 31, 2021 primarily due to the earnings compression
experienced due to loan portfolio growth (upfront costs associated with credit
provision and direct marketing expense) during the second half of 2021, as well
as non-operating losses related to litigation accruals.

CASH AND CAPITAL RESOURCES


As previously discussed, we are closely monitoring the impacts of the COVID-19
pandemic across our business, including the resulting uncertainties around
customer demand, credit performance of the loan portfolio, our levels of
liquidity and our ongoing compliance with debt covenants. We had cash and cash
equivalents available of $85 million at December 31, 2021, compared to cash and
cash equivalents available of $198 million at December 31, 2020, a decrease of
$113 million, primarily due to increased loan origination and participation
purchases. Our principal debt payment obligation of $18 million was paid off in
January 2021 prior to its maturity in February 2021, and there are no additional
required principal payments on our outstanding debt until January 2024.
Throughout the first half of 2021, we made additional net paydowns on the debt
facilities of approximately $70 million. As we are experiencing increased demand
for the loan products, resulting in increased origination volume, we are drawing
down on our available debt facilities to fund the loan portfolio growth. In the
second half of 2021, we made draws on the debt facilities of approximately $154
million. In January 2022, we entered into a sub-debt facility with Pine Hill
Finance LLC of $20 million to supplement our working capital.

While the ultimate impact of COVID-19 on our business, financial condition,
liquidity and results of operations is dependent on future developments which
are highly uncertain, we believe that our actions taken to date, future cash
provided by operating activities, availability under our debt facilities with
VPC and PCAM, and possibly the capital markets, as well as certain potential
measures within our control that could be put in place to maintain a sound
financial position and liquidity will provide adequate resources to fund our
operating and financing needs.

We are continuing to assess our minimum cash and liquidity requirements and
implementing measures to ensure that our cash and liquidity position is
maintained through the current economic cycle created by the COVID-19 pandemic.
We believe that our existing cash balances, together with the available
borrowing capacity under the debt facilities, will be sufficient to meet our
anticipated cash operating expense and capital expenditure requirements through
at least the next year. We principally rely on our working capital and our
credit facilities with VPC and PCAM to fund the loans we make to our customers.
At December 31, 2021, we have contractual obligations for our operating leases
and long-term debt totaling $4 million in 2022, and an additional $475 million
in total due in the next three years. We also are committed, among other things,
to pay $41 million in 2022 as a result of the Think Finance and District of
Columbia litigation settlements, as described further in   Note 14 -
Commitments, Contingencies and Guarantees   and   Note 19 - Subsequent Events  .
If our loan growth exceeds our expectations or other unexpected liquidity needs
arise, our available cash balances may be insufficient to satisfy our liquidity
requirements, and we may seek additional equity or debt financing. This
additional capital may not be available on reasonable terms, or at all.

Share buyback program


At December 31, 2021, we had an outstanding stock repurchase plan authorized by
our Board of Directors providing for the repurchase of up to $80 million of our
common stock through July 31, 2024, inclusive of two $25 million increases to
the plan authorized by the Board of Directors in January and October 2021. The
Board of Directors further authorized a $10 million increase to the annual
fiscal limit of repurchases in October 2021. During the year ended December 31,
2020, we repurchased $19.8 million of common stock. We repurchased 7,337,277
common shares at a total cost of $27.5 million during the year ended December
31, 2021. In January 2022, we repurchased an additional 47,981 of common shares
at a total cost of $148 thousand. Separately from the repurchase plan, have
repurchased approximately 925 thousand shares of common stock during the first
quarter of 2022 pursuant to the Think Finance litigation settlement agreement
executed in February 2022.

The amended stock repurchase program provides that up to a maximum aggregate
amount of $35 million shares may be repurchased in any given fiscal year.
Repurchases will be made in accordance with applicable securities laws from
time-to-time in the open market and/or in privately negotiated transactions at
our discretion, subject to market conditions and other factors. The share
repurchase program does not require the purchase of any minimum number of shares
and may be implemented, modified, suspended or discontinued in whole or in part
at any time without further notice. Any repurchased shares will be available for
use in connection with equity plans and for other corporate purposes.
                                       70
--------------------------------------------------------------------------------

Cash and cash equivalents, restricted cash, loans (net of allowance for loan losses) and cash flow

The following table summarizes our cash and cash equivalents, restricted cash, loans receivable, net amount and cash flows for the periods indicated:


                                                                   As of and for the years ended December 31,
(Dollars in thousands)                                          2021                 2020                  2019

Cash and cash equivalents                                  $     84,978          $  197,983                  71,215
Restricted cash                                                   5,874               3,135                   2,235
Loans receivable, net                                           511,157             374,832                 542,073
Cash provided by (used in):
Operating activities - continuing operations                    156,159             210,063                 333,316
Investing activities - continuing operations                   (304,638)             25,640                (307,842)
Financing activities - continuing operations                     38,213            (108,035)                 (2,907)


Our cash and cash equivalents at December 31, 2021 were held primarily for
working capital purposes. We may, from time to time, use excess cash and cash
equivalents to fund our lending activities, paydown debt or repurchase stock. We
do not enter into investments for trading or speculative purposes. Our policy is
to invest any cash in excess of our immediate working capital requirements in
investments designed to preserve the principal balance and provide liquidity.
Accordingly, our excess cash is invested primarily in demand deposit accounts
that are currently providing only a minimal return.

Net cash flow generated by operating activities


We generated $156.2 million in cash from our operating activities-continuing
operations for the year ended December 31, 2021 primarily from revenues derived
from our loan portfolio. This was down $53.9 million from the $210.1 million of
cash provided by operating activities-continuing operations during the year
ended December 31, 2020 due to a decrease in revenues resulting from a smaller
average loan portfolio and lower effective APR as compared to the prior year.
For the year ended December 31, 2020, net cash provided by operating activities
was down $123.33 million from the year ended December 31, 2019 due to a decrease
in revenues.

Net cash provided by (used in) investing activities


For the years ended December 31, 2021, 2020 and 2019, cash provided by (used in)
investing activities-continuing operations was $(304.6) million, $25.6 million
and $(307.8) million, respectively. The decrease for the year ended December 31,
2021 was primarily due to an increase in net loans issued to customers and a
growing loan portfolio compared to prior year. For the year ended December 31,
2020 net cash provided by investing activities increased from the year ended
December 31, 2019 primarily due to a decrease in net loans originated to
customers related to the COVID-19 pandemic.

The following table summarizes cash provided by (used in) investing activities – continuing operations for the periods indicated:


                                                                          For the years ended December 31,
(Dollars in thousands)                                              2021                   2020                2019

Cash provided by (used in) investing activities -
continuing operations
Net loans originated to consumers, less repayments           $    (283,019)            $   45,537          $ (284,236)
Participation premium paid                                          (5,588)                (3,828)             (5,861)
Purchases of property and equipment                                (17,281)               (16,069)            (17,745)
Proceeds from sale of intangible assets                              1,250                      -                   -
                                                             $    (304,638)            $   25,640          $ (307,842)


                                       71
--------------------------------------------------------------------------------

Net cash provided by (used in) financing activities


Cash flows from financing activities-continuing operations primarily include
cash received from issuing notes payable, payments on notes payable, and
activity related to stock awards. For the years ended December 31, 2021, 2020
and 2019, cash provided by (used in) financing activities-continuing operations
was $38.2 million, $(108.0) million and $(2.9) million, respectively. The
following table summarizes cash provided by (used in) financing
activities-continuing operations for the periods indicated:

                                                                        For the years ended December 31,
(Dollars in thousands)                                            2021                   2020                2019

Cash provided by (used in) financing activities -
continuing operations
Proceeds from issuance of Notes payable, net               $    178,694              $   31,247          $   61,407
Payments on Notes payable                                      (112,550)               (119,000)            (60,000)
Debt prepayment penalties paid                                        -                       -                (850)

Common stock repurchased                                        (27,536)                (19,819)             (3,344)
Proceeds from issuance of stock, net                                888                     701               1,271

Taxes paid related to net share settlement                 $     (1,283)             $   (1,164)         $   (1,391)
                                                           $     38,213              $ (108,035)         $   (2,907)


The increase in cash provided by (used in) financing activities-continuing
operations for the year ended December 31, 2021 versus the comparable period of
2020 was primarily due to increased draws on our debt facilities during the year
ended December 31, 2021, which were partially offset by payments on the
facilities early in 2021. For the year ended December 31, 2020, net cash used in
financing activities increased compared to the prior year primarily due to
increased payments made on notes payable and increased repurchases of common
stock, which commenced in the third quarter of 2019.

Free movement of capital


In addition to the above, we also review FCF when analyzing our cash flows from
operations. We calculate free cash flow as cash flows from operating
activities-continuing operations, adjusted for the principal loan net
charge-offs and capital expenditures incurred during the period. While this is a
non-GAAP measure, we believe it provides a useful presentation of cash flows
derived from our core continuing operating activities.

                                                                                   For the years ended December 31,
(Dollars in thousands)                                                       2021                   2020                2019

Net cash provided by continuing operating activities                  $    156,159              $  210,063          $  333,316

Adjustments:

Net charge-offs - combined principal loans                                (123,073)               (144,697)           (258,250)
Capital expenditures                                                       (17,281)                (16,069)            (17,745)
FCF                                                                   $     15,805              $   49,297          $   57,321

Our FCF was $15.8 million for the year ended December 31, 2021 compared to $49.3 million for the previous year. The decrease in our FCF is the result of lower cash provided by continuing operations and a slight increase in capital expenditures, partially offset by lower net write-offs – principal loans combined during the year ended December 31, 2021.

COMMITMENTS AND CONTRACTUAL OBLIGATIONS

Borrowing facilities


We have debt facilities to support the loans we make directly to our customers
and the loan and credit card participations we, or our consolidated VIEs
purchase from the third-party banks that license our brands. Each of these
facilities have certain covenants for the Company overall, as well as certain
covenants for the underlying product portfolios. All of our assets are pledged
as collateral to secure one or more of the debt facilities. Previously, we had a
debt facility, the 4th Tranche Term note, used to fund working capital. This
facility was paid in full in early 2021.

See Note 7 – Notes payable, net in the Notes to the consolidated financial statements included in this report for more information.

                                       72
--------------------------------------------------------------------------------


The outstanding balances of the debt facilities as of December 31, 2021 and 2020
are as follows:

(Dollars in thousands)                                                  2021                2020

American term note bearing interest at the base rate + 7.0% (2021) or + 7.25% (2020)

                                                   $   

84,600 $104,500


4th Tranche Term Note bearing interest at the base rate + 13%                -              18,050

ESPV Term Note bearing interest at the base rate + 7.0% (2021) or + 7.25% (2020)

                                               192,100             199,500

EF SPV Term Note bearing interest at base rate +7.0% (2021) or +7.25% (2020)

                                               137,800              93,500

EC SPV Term Note bearing interest at the base rate + 7.0% (2021) or + 7.25% (2020)

                                                55,500              25,000
TSPV Term Note bearing interest at the base rate + 3.60%                37,000                   -
Total                                                               $  507,000          $  440,550

The following table presents the future maturities of the debt, at December 31, 2021:


Year (dollars in thousands)    December 31, 2021
2022                                           -
2023                                           -
2024                                     470,000
2025                                      37,000
Thereafter                                     -
Total                         $          507,000


Other Commitments

We are a party to other contractual obligations involving commitments to make
payments to third parties. These obligations may impact our short-term or
long-term liquidity and capital resource needs. Our primary contractual
obligations include our operating leases, loss contingencies for legal matters
(including amounts payable pursuant to the Think Finance and District of
Columbia litigation settlements), and various compensation and benefit plans.
See   No    te 9 -     Leases  ,   Note 10 - Share-based Compensation   and

Note 14 – Commitments, contingencies and guarantees included in this report for more information on our leases, loss contingencies and compensation plans, respectively.

OFF-BALANCE SHEET ARRANGEMENTS


We previously provided services in connection with installment loans originated
by independent third-party lenders ("CSO lenders") whereby we acted as a credit
service organization/credit access business on behalf of consumers in accordance
with applicable state laws through our "CSO program." The CSO program included
arranging loans with CSO lenders, assisting in the loan application,
documentation and servicing processes. Under the CSO program, we guaranteed the
repayment of a customer's loan to the CSO lenders as part of the credit services
we provided to the customer. As of September 30, 2021, the CSO program has
completed its wind-down and we no longer have a guarantee under this program.

Prior to ECIL entering administration and being classified a discontinued
operation by us on June 29, 2020, the VPC Facility included the UK Term Note.
Upon deconsolidation of ECIL, this note was removed from our Consolidated
Balance Sheets and is presented within Liabilities from discontinued operations
in all prior periods presented. Under the terms of the VPC Facility, we had
provided a guarantee to VPC for the repayment of the debt of any subsidiary,
which included the outstanding debt of ECIL. ECIL completed payment of the UK
Term Note in the third quarter of 2020 and any guarantee obligation associated
with the UK Term Note was released with the repayment.

RECENT REGULATORY DEVELOPMENTS


Federal Regulations: The Consumer Financial Protection Bureau ("CFPB") amended
Regulation F, 12 CFR part 1006, which implements the Fair Debt Collection
Practices Act (FDCPA), to prescribe Federal rules governing certain activities
of debt collectors. The final rule, among other things, clarifies the
information that a debt collector must provide to a consumer at the outset of
debt collection communications and provides a model notice containing such
information, prohibits debt collectors from bringing or threatening to bring a
legal action against a consumer to collect a time-barred debt, and requires debt
collectors to take certain actions before furnishing information about a
consumer's debt to a consumer reporting agency. The rule became effective on
November 30, 2021.
                                       73
--------------------------------------------------------------------------------


On March 31, 2021, the Federal Reserve Board, the CFPB, the Federal Deposit
Insurance Corporation ("FDIC"), the National Credit Union Administration
("NCUA") and the Office of the Comptroller of the Currency ("OCC") announced the
request for information ("RFI") to gain input from financial institutions, trade
associations, consumer groups, and other stakeholders on the growing use of
Artificial Intelligence ("AI") by financial institutions. The request seeks
comments regarding the use of AI, including machine learning, by financial
institutions; appropriate governance, risk management and controls over AI; as
well as challenges in developing, adopting and managing AI. The comment period
was extended from May 30, 2021 to July 1, 2021 and is now closed.

On July 13, 2021, the Federal Reserve, Office of the Comptroller of the
Currency, and the FDIC issued proposed guidance on managing risks associated
with third-party relationships, including relationships with fintech entities
and bank/fintech sponsorship arrangements. The guidance sets forth expectations
for managing risk throughout the life cycle of such arrangements, including
planning, due diligence and contract negotiation, oversight and accountability,
ongoing monitoring, and termination. We will continue to monitor this guidance
as it potentially becomes final.

On August 31, 2021, the U.S. District Court for the Western District of Texas
issued an order in Community Financial Services Association of America, LTD. v.
Consumer Financial Protection Bureau, granting the Bureau's motion for summary
judgment and staying the date for complying with the CFPB's Rulemaking on
Payday, Vehicle Title, and High-Cost Installment Loans for 286 days until June
13, 2022. On October 1, 2021, the trade groups appealed the Texas federal
district court's final judgment and argued that the compliance date should be
286 days after their appeal to the Fifth Circuit is resolved. On October 14,
2021, the Fifth Circuit Court of Appeals agreed to an extension of the
compliance date until after resolution of the appeal. Regardless of outcome of
the appeal, it is anticipated that the rule will increase costs and create
challenges in the Company's collection activities.

State Privacy Laws: The California Consumer Privacy Act went into effect Jan. 1,
2020, and enforcement by California's Office of the Attorney General began July
1, 2020. The California Privacy Rights Act ballot initiative passed in November
2020, with the majority of its provisions becoming operative Jan. 1, 2023.
Virginia passed the Consumer Data Protection Act which establishes a framework
for controlling and processing personal data in the Commonwealth. The bill
applies to all persons that conduct business in the Commonwealth and either (i)
control or process personal data of at least 100,000 consumers or (ii) derive
over 50 percent of gross revenue from the sale of personal data and control or
process personal data of at least 25,000 consumers. The bill outlines
responsibilities and privacy protection standards for data controllers and
processors and has a delayed effective date of January 1, 2023. On July 7, 2021,
Colorado Governor Jared Polis signed the Colorado Privacy Act into law that will
go into effect on July 1, 2023. Once effective, covered entities will be
required to provide Colorado residents with various privacy rights, including
the right to access, correct, and delete their personal data and to opt out of
the sale of their personal data. Covered entities also will need to provide
privacy policy disclosures and create data protection assessments for certain
types of processing activities. Ongoing implementation of and changes to
state-enacted privacy laws will increase the Company's costs and could create
challenges in the relevant markets. Many states have also introduced similar
legislation to govern privacy.

BASIS OF PRESENTATION AND CRITICAL ACCOUNTING PRINCIPLES

Revenue recognition


We recognize consumer loan fees as revenues for each of the loan products we
offer. Revenues on the Consolidated Statements of Operations include: finance
charges, lines of credit fees, fees for services provided through CSO programs
("CSO fees"), and interest, as well as any other fees or charges permitted by
applicable laws and pursuant to the agreement with the borrower. Other revenues
also include marketing and licensing fees received from the originating lender
related to the Elastic product and Rise bank-originated loans and from CSO fees
related to the Rise product. Revenues related to these fees are recognized when
the service is performed.

We accrue finance charges on installment loans on a constant yield basis over
their terms. We accrue and defer fixed charges such as CSO fees and lines of
credit fees when they are assessed and recognize them to earnings as they are
earned over the life of the loan. We accrue interest on credit cards based on
the amount of the credit card balance outstanding and their contractual interest
rate. Annual credit card membership fees are amortized to revenue over the card
membership period. Other credit card fees, such as late payment fees and
returned payment fees, are accrued when assessed. We do not accrue finance
charges and other fees on installment loans or lines of credit for which payment
is greater than 60 days past due. Credit card interest charges are recognized
based on the contractual provisions of the underlying arrangements and are not
accrued for which payment is greater than 90 days past due. Installment loans
and lines of credit are considered past due if a grace period has not been
requested and a scheduled payment is not paid on its due date. Credit cards have
a grace period of 25 days and are considered delinquent after the grace period.
Payments received on past due loans are applied against the loan and accrued
interest balance to bring the loan current. Payments are generally first applied
to accrued fees and interest, and then to the principal loan balance.
                                       74
--------------------------------------------------------------------------------


The spread of COVID-19 since March 2020 has created a global public health
crisis that has resulted in unprecedented disruption to businesses and
economies. In response to the pandemic's effects and in accordance with federal
and state guidelines, we expanded our payment flexibility programs for our
customers, including payment deferrals. This program allows for a deferral of
payments for an initial period of 30-60 days, and generally up to a maximum of
180 days on a cumulative basis. The customer will return to their normal payment
schedule after the end of the deferral period with the extension of their
maturity date equivalent to the deferral period, which is generally not to
exceed an additional 180 days. Per FASB guidance, the finance charges will
continue to accrue at a lower effective interest rate over the expected term of
the loan considering the deferral period provided (not to exceed an amount
greater than the amount at which the borrower could settle the loan) or placed
on non-accrual status. The COVID-19 payment flexibility programs were no longer
offered effective July 1, 2021, eliminating any new payment deferrals up to 180
days. We and the bank originators continue to offer certain payment flexibility
programs if certain qualifications are met.

Our business is affected by seasonality, which can cause significant changes in
portfolio size and profit margins from quarter to quarter. Although this
seasonality does not impact our policies for revenue recognition, it does
generally impact our results of operations by potentially causing an increase in
its profit margins in the first quarter of the year and decreased margins in the
second through fourth quarters.

Provision and Liability for Estimated Losses on Consumer Loans


We have adopted Financial Accounting Standards Board ("FASB") guidance for
disclosures about the credit quality of financing receivables and the allowance
for loan losses ("allowance"). We maintain an allowance for loan losses for
loans and interest receivable for loans not classified as TDRs at a level
estimated to be adequate to absorb credit losses inherent in the outstanding
loans receivable. We primarily utilize historical loss rates by product,
stratified by delinquency ranges, to determine the allowance, but we also
consider recent collection and delinquency trends, as well as macro-economic
conditions that may affect portfolio losses. Additionally, due to the
uncertainty of economic conditions and cash flow resources of our customers, the
estimate of the allowance for loan losses is subject to change in the near-term
and could significantly impact the consolidated financial statements. If a loan
is deemed to be uncollectible before it is fully reserved, it is charged-off at
that time. For loans classified as TDRs, impairment is typically measured based
on the present value of the expected future cash flows discounted at the
original effective interest rate. We have elected to adopt the Current Expected
Credit Losses ("CECL") model as of January 1, 2022, which requires a broader
range of reasonable and supportable information to inform credit loss estimates.
See "- Recently Issued Accounting Pronouncements And JOBS Act Election" for more
information.

We classify loans as either current or past due. An installment loan or line of
credit customer in good standing may request a 16-day grace period when or
before a payment becomes due and, if granted, the loan is considered current
during the grace period. Credit card customers have a 25-day grace period for
each payment. Installment loans and lines of credit are considered past due if a
grace period has not been requested and a scheduled payment is not paid on its
due date. Credit cards are considered past due if the grace period has passed
and the scheduled payment has not been made. Increases in the allowance are
created by recording a Provision for loan losses in the Consolidated Statements
of Operations. Installment loans and lines of credit are charged off, which
reduces the allowance, when they are over 60 days past due or earlier if deemed
uncollectible. Credit cards are charged off, which reduces the allowance, when
they are over 120 days past due or earlier if deemed uncollectible. Recoveries
on losses previously charged to the allowance are credited to the allowance when
collected.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the
net tangible and identifiable intangible assets acquired in each business
combination. In accordance with Accounting Standards Codification ("ASC")
350-20-35, Goodwill-Subsequent Measurement, we perform a quantitative approach
method impairment review of goodwill and intangible assets with an indefinite
life annually at October 1 and between annual tests if an event occurs or
circumstances change that would more likely than not reduce the fair value of a
reporting unit below its carrying amount.

Prior to the adoption of ASU No. 2017-04, Intangibles-Goodwill and Other (Topic
350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"), our
impairment evaluation of goodwill was already based on comparing the fair value
of our reporting units to their carrying value. The adoption of ASU 2017-04 as
of January 1, 2020 had no impact on our evaluation procedures. The fair value of
the reporting units is determined based on a weighted average of the income and
market approaches. The income approach establishes fair value based on estimated
future cash flows of the reporting units, discounted by an estimated
weighted-average cost of capital developed using the capital asset pricing
model, which reflects the overall level of inherent risk of the reporting units.
The income approach uses our projections of financial performance for a six to
nine-year period and includes assumptions about future revenues growth rates,
operating margins and terminal values. The market approach establishes fair
value by applying cash flow multiples to the reporting units' operating
performance. The multiples are derived from other publicly traded companies that
are similar but not identical from an operational and economic standpoint.
                                       75
--------------------------------------------------------------------------------

Internal use software development costs

We capitalize certain costs related to software developed for internal use, primarily associated with the continuous development and improvement of our technology platform. Costs incurred in the preliminary and post-development stages are expensed. These costs are amortized on a straight-line basis over the estimated useful life of the related asset, generally three years.

Income taxes


Income taxes are accounted for under the asset and liability method. Deferred
tax assets and liabilities are recognized for the future tax consequences and
benefits attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases and
operating loss and tax credit carryforwards. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the enactment date.
Valuation allowances are established when necessary to reduce deferred tax
assets to the amounts that are more likely than not to be realized.

Relative to uncertain tax positions, we accrue for losses we believe are
probable and can be reasonably estimated. The amount recognized is subject to
estimate and management judgment with respect to the likely outcome of each
uncertain tax position. The amount that is ultimately sustained for an
individual uncertain tax position or for all uncertain tax positions in the
aggregate could differ from the amount recognized. If the amounts recorded are
not realized or if penalties and interest are incurred, we have elected to
record all amounts within income tax expense.

At December 31, 2021, we recorded a gross liability for an uncertain tax
position of $1.3 million. No liability was recorded at December 31, 2020. Tax
periods from fiscal years 2014 to 2020 remain open and subject to examination
for US federal and state tax purposes. As we had no operations nor had filed US
federal tax returns prior to May 1, 2014, there are no other US federal or state
tax years subject to examination.

Share-based compensation


In accordance with applicable accounting standards, all share-based payments,
consisting of stock options, and restricted stock units ("RSUs") issued to
employees are measured based on the grant-date fair value of the awards and
recognized as compensation expense on a straight-line basis over the period
during which the recipient is required to perform services in exchange for the
award (the requisite service period). We also offer an employee stock purchase
plan ("ESPP"). The determination of fair value of share-based payment awards and
ESPP purchase rights on the date of grant using option-pricing models is
affected by our stock price as well as assumptions regarding a number of highly
complex and subjective variables. These variables include, but are not limited
to, the expected stock price volatility over the term of the awards, actual and
projected employee stock option exercise activity, risk-free interest rate,
expected dividends and expected term. We use the Black-Scholes-Merton Option
Pricing Model to estimate the grant-date fair value of stock options. We also
use an equity valuation model to estimate the grant-date fair value of RSUs.
Additionally, the recognition of share-based compensation expense requires an
estimation of the number of awards that will ultimately vest and the number of
awards that will ultimately be forfeited.

RECENTLY RELEASED ACCOUNTING STATEMENTS AND JOBS ACT ELECTION


Under the Jumpstart Our Business Startups Act (the "JOBS Act"), we meet the
definition of an emerging growth company. We have irrevocably elected to opt out
of the extended transition period for complying with new or revised accounting
standards pursuant to Section 107(b) of the JOBS Act.

Recently Adopted Accounting Standards


See   Note 1 - Summary of Significant Accounting Policies   in the Notes to the
Consolidated Financial Statements included in this report for a discussion of
recent accounting pronouncements.


                                       76

————————————————– ——————————

© Edgar Online, source Previews

]]>
How to succeed in your first rental property investment https://nowwashyourhands.com/how-to-succeed-in-your-first-rental-property-investment/ Tue, 22 Feb 2022 14:10:23 +0000 https://nowwashyourhands.com/how-to-succeed-in-your-first-rental-property-investment/ Source: fitsmallbusiness.com Investing in rental properties – especially single-family and multi-family residential rental properties – is a surefire way to build wealth. However, some investors are more successful than others. Why is it? And how can a novice investor increase his chances of hitting the mark the first time? We’ll cover everything you need to […]]]>
Source: fitsmallbusiness.com

Investing in rental properties – especially single-family and multi-family residential rental properties – is a surefire way to build wealth. However, some investors are more successful than others.

Why is it? And how can a novice investor increase his chances of hitting the mark the first time? We’ll cover everything you need to know here.

Why do rental real estate investments fail?

When you invest in a rental property, you either make money or lose it. If you research the reasons, there are really only a few ways this investment can go wrong.

  • You bought the wrong property. If you buy the wrong one, it doesn’t matter what you do. You will never earn the profit you need to make it a worthwhile investment. It all depends on the acquisition of suitable real estate.
  • You mismanage the property. Success does not transpire at the closing table. You need to manage your holdings in a way that ensures they remain profitable for years to come. This includes both how you manage the physical property and building healthy relationships with your tenants.

Obviously, many facets will fall under either of these categories, but those two are basically all there is to it. If you want to succeedyou just need to buy the right property and manage it well.

Six Ways to Guarantee Your Success

Source: mcgrawhillprofessionalbusinessblog.com

Asking you to buy the right property and manage it well isn’t a very helpful article, so let’s break that down and look at some of the specific ways you can guarantee success.

1. Know what you want

It is crucial that you know precisely what you want from a property before you start looking for one to buy – certainly before you make any offers. Keep in mind your short-term goals and your long-term vision.

Is your goal to earn a few hundred dollars in monthly passive income? Or are you hoping to build a full portfolio of properties?

Are you only interested in investing locally? Or are you ready to invest anywhere on the numbers?

Do you prefer single-family properties or multi-family properties? Or could you be open to anything?

By defining your objectives and expectations from the outset, you will benefit from a targeted real estate search.

2. Run conservative numbers

Source: medium.com

Real estate investing is above all a numbers game. If they’re working on paper, it’s usually a pretty big investment; if they don’t then you should look elsewhere.

The question is, how do you manage the numbers so you rarely (if ever) go wrong? The answer to this question is in two parts: first, you need the right equations; second, you need accurate inputs.

To be more precise, you should use conservative numbers. There are too many relevant equations to list them all in this article – such as net operating income, cap rates, cash flow and cash yield – but you just need to recognize that this part of the process will take time.

Most of your time as an investor will be spent To make calculations. If you make a habit of taking shortcuts here, you’ll pay for it later.

To run the numbers conservatively, always round expenses and round income. For example, if it looks like maintenance will cost you $237 per month, use $300 in your calculations. If you think you can get $1,775 rent, bet $1,700.

In addition to all this, always plan at least one month of vacation per year.

3. Remove emotions from the equation

There is little room for emotion in real estate. If you’re buying a house to live in, of course, you can let your feelings play a part.

But a rental property is a pure business opportunity. Numbers work or they don’t. If you find excuses to twist the numbers, it’s a sign that you’re about to make a mistake. Keep it black and white.

4. Create your own team

Source: noradarealestate.com

Much of your success as a real estate investor will depend on the people you surround yourself with. If you can build a solid team of talented and trustworthy colleagues, you should be as successful in this industry as you want.

You should have a few specific people on your team. The first is an experienced real estate agent who can help you find deals (especially off-market) and do the math.

The second is a professional property manager like GreenResidential.com to handle all day-to-day management tasks (including tenant screening, rent collection, repairs and maintenance, accounting, etc.). The third is a good real estate attorney and/or CPA. This person will help you maximize your protection and cash flow for a better return on investment.

5. Be a meticulous examiner

Even the most conservative numbers can drop if you have bad tenants who don’t pay and/or treat your property poorly. The key to finding good tenants is to be a meticulous screener.

Sometimes a thorough screening may seem unnecessary and intrusive, but you have to do it. Perform background checks, verify income, speak with previous owners, speak with their employer – do whatever you can!

Spending a few extra hours scouting ahead of time can save you thousands of dollars in the future.

6. Save and reinvest profits

Source: Invest Better.co

As soon as the first rent check is deposited in your bank account, you will probably feel the temptation to start improving your own lifestyle. You’ll think, “I did it!”

But don’t go crazy just yet. The most successful real estate investors are those who use the money they earn strategically.

First, you need to plan at least three months of expenses for each property. If it costs you $1,500 a month to pay the mortgage, insurance, taxes, and utilities, you should put at least $4,500 in a dedicated checking account.

Once you have this emergency fund in place, we recommend spending every extra penny on a down payment on a second property. Repeat this process with the second property, and it will lead to compound income. At that point, it might only be a few months before you can buy your third property, and so on.

Add all

Ultimately, success in rental property investing is all about choosing the right properties and managing them well. If you do this regularly, it will only take a few years before you have your own mini real estate empire.

And all it takes is five, 10, or 15 properties to start building massive wealth. Good luck!

]]>
Eagles coach’s link to Christian Kirk could spark surprise addition https://nowwashyourhands.com/eagles-coachs-link-to-christian-kirk-could-spark-surprise-addition/ Mon, 21 Feb 2022 15:32:00 +0000 https://nowwashyourhands.com/eagles-coachs-link-to-christian-kirk-could-spark-surprise-addition/ It’s gotten to the point where it’s impossible to avoid channeling your inner tipster. Philadelphia Eagles fans, radio personalities, and members of the print and television press are constantly racking their brains about what might happen next. We type mock drafts, or run them in our own head, sometimes when we’re supposed to be working […]]]>

It’s gotten to the point where it’s impossible to avoid channeling your inner tipster. Philadelphia Eagles fans, radio personalities, and members of the print and television press are constantly racking their brains about what might happen next.

We type mock drafts, or run them in our own head, sometimes when we’re supposed to be working or doing something else. We recruit fantasy football players based on what we think they could do. Then we beat our chests and we brag when someone has a fantastic statistical performance… you know, because we were smarter than everyone else and we saw it coming when no one else did. did. Then there are fictional drafts and March Madness parentheses.

You see where this leads, don’t you? Again, we just can’t help ourselves. Most of the time, we are not sure of anything. It’s really cool when you guess and you’re right. This brings us to Christian Kirk.

A connection between Christian Kirk and an Eagles aide could spark a conversation…maybe.

We mentioned fictional drafts earlier. As the remaining days of February roll by and we enter March, you will undoubtedly see quite a bit of it. Before reaching the end of April and the annual selection meeting, however, the NFL Scouting Combine and the upcoming period of free agency are on the agenda. Do you know what that means.

Yes, we’re throwing away our tipster caps and making more of those educated guesses. What do we think Howie Roseman will do with three first-round picks? What happens in free agency? Will the Eagles focus more on adding to their offensive arsenal or will they add pieces to their defense?

The truth is, no one has the answer, not even the Eagles themselves, but here’s what we do know. Relationships matter.

Teams and coaches like to have guys they know. That’s why you always see the birds cutting guys and bringing them back. This is why Greg Ward has been freed and redeemed more times than we can remember. That’s why Nick Sirianni hired Jonathan Gannon.

It’s also why we’re putting Christian Kirk’s name on the list of impending free agents the Eagles could face. For those who don’t know, Philadelphia wide receivers coach Aaron Moorehead played the same role during his College Station days and knew Kirk well as he was one of the Texas A&M Aggies’ best players in the time.

During their time together (2015-2017), Kirk won the SEC Freshman of the Year award (2015), and he earned two First Team All-SEC nods (2016, 2017) en route to becoming No. Arizona Cardinals tour. draft of the selection in 2018.

So far, despite making it to the Pro Football Writer’s of America All-Rookie Team in 2018, Kirk’s career hasn’t produced the fireworks he might have liked. In four seasons, he had 236 receptions for 2,902 yards and 17 touchdowns.

From an Eagles fan’s perspective, most would like to see the Birds run against one of the most sought after wide receivers in the free agency pool, Davante Adams or Chris Godwin for example. You have to consider the fact that the Green Bay Packers could franchise Adams if a deal can’t be reached. As for Godwin, there’s no guarantee the Tampa Bay Buccaneers will let him go, and if they do, he’ll cost a pretty penny.

Philadelphia has some decisions to make, but bargain shopping might be a route they’re taking. This brings us back to Kirk. With a major need at wide receiver, this could be one of those moves that makes sense in terms of strategy and finances.

We are far from having to have that though. Again, we’ll cover the reconnaissance combine first, but keep this one in mind. The relationship is there. The need is there. The question is, however, are either side interested?

]]>
There are far worse things than being a three-point receiver. https://nowwashyourhands.com/there-are-far-worse-things-than-being-a-three-point-receiver/ Mon, 07 Feb 2022 03:02:58 +0000 https://nowwashyourhands.com/there-are-far-worse-things-than-being-a-three-point-receiver/ I admit it. I was also an envious post-teen, one of those academics who every time I saw their high school classmates get their first salaries, buy their first cars, and indulge in whims that wouldn’t be out of my reach until much later. , I wondered what I had done wrong. The worker at […]]]>

I admit it. I was also an envious post-teen, one of those academics who every time I saw their high school classmates get their first salaries, buy their first cars, and indulge in whims that wouldn’t be out of my reach until much later. , I wondered what I had done wrong. The worker at BMW, that stereotype of the time, was me enemy unspeakable. “You’ll see in a few years,” my mother would say, but she couldn’t see anything.

Until the years pass and I see it. There is no envy more stupid than that of the privileged, although he cannot see beyond his own navel, sheltered in the myth of meritocracy. But if I studied a lot, but if I had made an effort to get good grades and study what I wanted, but if I deserve it and they don’t. Those were the pre-Crisis years, when climbing scaffolding was truly believed to be a shortcut to abundance. But the friends of my high school friends were like that: adults, without studies but with a car, when I was a mindundi that I didn’t have no more bus card.

The tragedy of the college student is that he is where he does not belong

Through the years of crisis, I finally felt understood. Journalists started (we started) to publish profiles of young talents with three degrees, two masters and a course abroad who could not find work or were forced to accept “unskilled” jobs (pardon the ‘expression). We identified with them because it was actually us. The tragedy of these stories was not that they were unfairly paid jobs, but jobs that did not correspond to them, that were reserved for others. To the poor.

These articles have always attracted attention, because they touched a very sensitive point in the Spanish collective imagination. of the betrayal of expectations middle class. In some cases, the disappointment was financial: with the price that the masters cost us!

What appeared much less in the media were the workers who had remained in the streets, all those friends towards whom he felt a desire that turned into relief at not being in their place, perhaps because the Spanish bourgeoisie (i.e. all but the Kings) did not identify with them. As my teenage idiot thought, they hadn’t made it, they didn’t deserve it. the problem was his.

The myth of two thousand years. (EFE/Rolex Del Pena)

This week circulated on social networks the umpteenth installment of this series which told the story of a young 23-year-old biotechnology student who had to work as a storekeeper and considers that she will only be able to become independent at the age of 30. . The accounts keep coming out. The fine print of these kinds of stories that usually don’t have a sequel is that it’s possible that in a few years that person won’t be doing so badly, or at least, not as bad as others.

The author of the article titled “deceived generation” to that of the young woman, and I’m starting to think that the “cheated generation” must be the longest generation in history, because it’s mine, those born in the 80s, and the yours, that of people born in the late 1990s. The story of generational deception is already too long, perhaps because it is based on a misconception: that injustice does not lie in the fact that there are bad jobs, but in the fact that these bad jobs are not filled by the working class.

Academic Suspicion

Societies oscillate between illusions and disillusions, and today we distrust the university as much as our parents (and grandparents) trusted it, because value what you don’t have more than what you take for granted. The university has been for several generations the main gateway not only to social advancement, but above all to cultural, professional and social possibilities until recently reserved for a few. The main bet of millions of families, who saw with excitement how their children could go where they couldn’t.

Disappointment led us to a modification of the almost nihilistic totality

For this reason, the stereotype of the “three pass restocking” has become so deeply embedded in the Spanish imagination, as a symbol that something had gone wrong. The so-called meritocratic pact that paved the way for the post-Transition era, which ensured that the university guaranteed us a privileged place in society, had been broken. The logic was as follows: an immigrant or a person without studies, if they earn badly as storekeepers, they are in their place, the company functions perfectly. If this happens to a university student, the social order has been corrupted. It’s not about dignity, it’s about whether you belong or not.

Eyes were not turned towards the labor market, nor towards companies, what are they going to do if they can hire doctors at the price of the Smic, but towards the university. Why did you betray us? This disappointment has gradually led to an unwarranted mistrust, which is accompanied by an amendment of the totality until it almost falls into an immobilizing nihilism. It was well summed up recently in a TVE program by the sociologist and political scientist Joan Navarro: “Before the main inheritance that a father could give to his children was a university education, today university education has much less worth that your father can pay you the rent of a house”.

Suspicion before betrayal. (EFE / Fernando Villar)

Ato career it’s not worth anything” It’s a phrase we’ve grown tired of hearing, and I suppose it delights companies that have to sell master’s degrees at increasingly unaffordable prices, so much so that the middle and working classes take mortgages to simply aspire to get a job. Even setting aside the fact that the university should be much more than an employment agency that “guarantees” a job, it is lie. According to him SEPEthe number of long-term unemployed without studies is more than double that of university graduates (48.97% against 23.36%).

Let no one be fooled by the headlines that claim that the unemployment rate for vocational training graduates is lower than that for university students: this alone it’s among the young, among other things because they enter the labor market earlier. For now, as INE data shows (thanks to colleague Martha’s Law to find the data), university students suffer from long-term unemployment which represents nearly half that of FPs (3.1 against 6.2%).

Thinking that not everything matters benefits those who are already starting from privileged positions

There is something very dangerous in the ease with which we accept that the university is useless, how we lend ourselves to devaluing it by repeating subjects, by defending that it is not serious to do this or that thing because meritocracy doesn’t work and, therefore, there’s nothing what can we do It’s an elitist trap because it takes away from the majority of people the main tool they had to improve their conditions, no only economically, but also socially and culturally. I eat well He said Lucas Gortazar, “children of the lower classes are compensated to go to university, it is very clear. To say that studying is useless is fake and classic“.

This is the danger of completely mistrusting meritocracy through exceptional narratives. To think that not everything is of exactly the same importance only benefits those who are already starting from privileged positions, because it discourages others from looking for alternatives. For decades, children from the lower classes entered Spanish universities like never before, leading to the greatest educational and social improvement in the history of our country. Finally, those who didn’t have to be there because their place was another took up positions that were reserved for a few.

Opinion

I met a friend from Complu the other day. Maybe we complained together fifteen years ago that soon we could be nothing but low-paid hoarders, but ultimately we weren’t. He told me the same thing he had been seeing for a long time. That after all this time we university students had managed to open a breach for ourselves, but those of us who had not, they had trouble. The bourgeois myth of the sock boy with three careers disappointed by the university makes us forget the sad reality of the worker who spends decades chained to humiliations until one fine day he finds himself with nothing.

]]>
State lawmakers propose another housing justice package https://nowwashyourhands.com/state-lawmakers-propose-another-housing-justice-package/ Wed, 02 Feb 2022 01:11:00 +0000 https://nowwashyourhands.com/state-lawmakers-propose-another-housing-justice-package/ State lawmakers, housing advocates and tenants called on the General Assembly on Tuesday to pass a package of tenant protection bills. Most bills in a similar package last year failed. A bill passed last year created a program to ensure the presence of lawyers for tenants facing eviction, called “access to a lawyer”. The problem? […]]]>

State lawmakers, housing advocates and tenants called on the General Assembly on Tuesday to pass a package of tenant protection bills. Most bills in a similar package last year failed.

A bill passed last year created a program to ensure the presence of lawyers for tenants facing eviction, called “access to a lawyer”.

The problem? A separate bill that would have funded this program failed.

The funding bill is one of five key bills in this year’s housing justice package.

Cristina Carranza, a tenant in Prince George’s County, told a virtual press conference that the money for lawyers would help her keep her place and that of her children. Carranza received an eviction notice during the pandemic.

“I’ve never been behind on my rent,” Carranza said through a translator. “During the pandemic, I lost my job. But for the rental office and management, it didn’t matter.

Lisa Sarro, general counsel for Arundel Community Development Services (ACDS), said the Anne Arundel County Lawyer Access Program has proven “helpful time and time again.”

“We’re hoping we’ll get some state funding for this program because it’s hard for counties to afford it on their own,” Sarro said.

Sen. Shelly Hettleman, a Democrat from Baltimore County, is sponsoring two of this year’s housing program bills, one of which would require landlords to show proof of a valid rental license if they wish to make expedited deportation procedures.

“We want to make sure landlords meet their obligations in terms of providing safe and secure housing, and shouldn’t be able to use a workaround to be able to evict people if they don’t follow the law on their end,” says Hettleman.

Hettleman’s other bill would empower Maryland courts to stay evictions for tenants awaiting emergency rental assistance.

Sarro said ACDS has helped prevent evictions for more than 1,600 households since March 2021, using $20 million in emergency housing assistance funds. But that money doesn’t always come out as quickly as tenants need it.

“It’s really hard work getting that money out. And we’re not the only struggling county,” Sarro said.

Of the. Jheanelle Wilkins, a Democrat from Montgomery County, is sponsoring a bill that would require landlords to provide “just cause” if they decide to deny a tenant a lease renewal.

Tenant advocates have argued that such legislation would close a loophole that landlords have used to evict tenants who are in arrears with rent.

“It’s absolutely critical that we ensure tenant protections are passed this year,” Wilkins said.

Another bill would give tenants access to housing assistance programs, legal representation and other resources on the day of a trial.

Zafar Shah of the Public Justice Center pointed out that without tenant protection, those primarily hurt will be people of color.

“We have already heard in this legislative session that there has been no tsunami of evictions, that there is no crisis and that federal rent relief, in and of itself, is the Only solution. So why bother with legislative solutions? Shah said. “And I think the answer to that narrative is to look at who is being left behind in this economic recovery.”

According to a US Census Household Pulse Survey, in January, 131,813 tenants in Maryland believe they are very likely or somewhat likely to be evicted in the next two months. The majority of these tenants are Latino or black and live with children.

]]>
Philippine Metals Closes Second Round of Oversized Subscription Receipt Funding https://nowwashyourhands.com/philippine-metals-closes-second-round-of-oversized-subscription-receipt-funding/ Thu, 30 Dec 2021 21:57:09 +0000 https://nowwashyourhands.com/philippine-metals-closes-second-round-of-oversized-subscription-receipt-funding/ Enter Wall Street with Street Insider Premium. Claim your 1-week free trial here. Vancouver, British Columbia – (Newsfile Corp. – December 30, 2021) – Philippine Metals Inc. (TSXV: PHI) (“PMI“or the”Society“) announces that, following its press releases dated November 29, 2021 and December 10, 2021, the Company has completed the second and final tranche (the”Second […]]]>



Enter Wall Street with Street Insider Premium. Claim your 1-week free trial here.


Vancouver, British Columbia – (Newsfile Corp. – December 30, 2021) – Philippine Metals Inc. (TSXV: PHI) (“PMI“or the”Society“) announces that, following its press releases dated November 29, 2021 and December 10, 2021, the Company has completed the second and final tranche (the”Second installment“) of its financing by subscription receipt (the”PMI financing“) 2,000,000 Subscription Receipts (the”Subscription receipts“) to $ 0.50 per subscription receipt for total gross proceeds of $ 1,000,000. Due to increased demand, the Company has increased the PMI funding to $ 2,590,396.50.

The first tranche of the PMI financing of 3,180,793 subscription receipts for total gross proceeds of $ 1,590,396.50 was closed on December 8, 2021 (see the Company’s press release dated December 10, 2021).

The PMI Financing is carried out within the framework of the reverse takeover transaction previously announced by the Company (the “Transaction“) with ReVolve Renewable Power Limited (“Turn“) (see Company press release dated June 24, 2021). Each Subscription Receipt, provided that the terms of release from escrow in the Subscription Receipt Agreement (as defined below) (“Escrow Release Conditions“) are satisfied, will automatically be converted to a unit (a”Unity“), each Unit comprising one post-Consolidation ordinary share (as defined below) of the Company and one common share subscription warrant of the Company (a”To guarantee“). Each warrant will give its holder the right to purchase one additional common share of the Company after the Combination (a”Warrant share“) at a price of $ 0.75 per warrant share for a period of eighteen (18) months following the automatic conversion of the subscription receipts. Prior to the completion of the transaction, the Company intends to consolidate its common shares on the basis of four ordinary consolidation shares for one post-consolidation ordinary share of the Company (the “Consolidation“).

The gross proceeds of the PMI Financing (the “Escrowed funds“) are held in escrow pursuant to a Subscription Receipt Agreement dated December 8, 2021 between PMI and Computershare Trust Company of Canada, as Subscription Receipt Agent and Escrow Agent for escrow funds (the “Subscription receipt agreement“). Upon satisfaction or waiver of the escrow release conditions, the escrow funds together with any interest earned thereon will be released to the resulting issuer (and to the discoverers with respect to finder’s fees, as defined below) in accordance with the terms If the escrow release conditions are not met or canceled, or if the proposed transaction is not completed, the Subscription Receipts will be canceled without further action and the funds in escrow. as well as the interest earned thereon will be repaid to the subscribers on a pro rata basis, any shortfall being paid by PMI.

The second tranche was made on the basis of a non-middleman private placement and finder’s fees will be paid in association with the second tranche of $ 68,200 (the “”Research costs“) and a total of 140,000 non-transferable compensation options (the”Compensation options“), each of which may be exercised by its holder to acquire one unit at a price of $ 0.50 per unit for a period of eighteen (18) months from the date of issue. conversion of Subscription Receipts.

The net proceeds of the PMI Financing will be used to further develop existing projects and undertake the acquisition of new projects from the resulting issuer (the “Resulting emitter“), being the Company, after having given effect to the Transaction, as well as for the general working capital of the resulting Issuer. All the securities issued within the framework of the PMI Financing carry or will carry a holding period expiring on the date which is four months and one day from the date of issue thereof in accordance with applicable Canadian securities laws.

Trading in PMI shares is currently suspended and will remain so until the Trade is completed.

ON BEHALF OF THE BOARD

“Craig T. Lindsay”

Chief executive officer

For more information, please contact:

Craig lindsay
Phone. : (604) 218-0550
Email: craig@agcap.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking information

This press release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by words such as “will”, “may”, “should”, “anticipate”, “expect” and similar expressions. All statements other than statements of historical fact included in this press release, including, without limitation, statements regarding the transaction, securities issued or may be issued pursuant to PMI financing, consolidation, satisfaction of conditions of release from escrow, payment of Fees, use of the net proceeds of the PMI Financing, restrictions on the resale of securities issued under the PMI Financing or any changes contemplated for the Company, are forward-looking statements which involve risks. and uncertainties. There can be no assurance that such statements will prove to be accurate and that actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include, without limitation, the risks detailed from time to time in documents filed by the Company with securities regulations.

The reader is cautioned that the assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those expected, due to many known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company. Accordingly, the Company cannot guarantee that a forward-looking statement will materialize and the reader is cautioned not to place undue reliance on forward-looking information. This information, although considered reasonable by management at the time of its preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company will not publicly update or revise the included forward-looking statements except as expressly required by Canadian securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/108762


]]>
Sachem Capital Corp. assesses the registered public offer of https://nowwashyourhands.com/sachem-capital-corp-assesses-the-registered-public-offer-of/ Tue, 14 Dec 2021 23:33:48 +0000 https://nowwashyourhands.com/sachem-capital-corp-assesses-the-registered-public-offer-of/ BRANFORD, Connecticut, December 14, 2021 (GLOBE NEWSWIRE) – Sachem Capital Corp. (NYSE American: SACH) announces the price of a registered public offering of $ 45.0 million in aggregate principal of 6.0% of unsecured and unsubordinated notes due 2026 (“Notes”). The net proceeds of the offering to Sachem Capital Corp. is expected to be approximately $ […]]]>


BRANFORD, Connecticut, December 14, 2021 (GLOBE NEWSWIRE) – Sachem Capital Corp. (NYSE American: SACH) announces the price of a registered public offering of $ 45.0 million in aggregate principal of 6.0% of unsecured and unsubordinated notes due 2026 (“Notes”). The net proceeds of the offering to Sachem Capital Corp. is expected to be approximately $ 43.3 million after payment of sales rebates and sales commissions and the estimated offering fees payable by Sachem Capital Corp.

The offer is scheduled to close on December 20, 2021, subject to customary closing conditions. Sachem Capital Corp. has granted the Underwriters a 30-day option to purchase up to an additional $ 6.75 million in aggregate principal amount of Notes to cover over-allotments, if any.

Notes will be classified pari passu with all unsecured and unsubordinated debt of the company, whether currently outstanding or issued in the future. The Notes are expected to be listed on the NYSE American under the ticker symbol “SCCD” and begin trading on or about December 22, 2021.

The Notes will mature on December 30, 2026 and may be redeemed, in whole or in part, at any time or from time to time, at the option of the Company, effective December 20, 2023. Interest on the Notes will accrue at at the annual rate of 6.0% and will be payable quarterly, in arrears, on March 30, June 30, September 30 and December 30 during which the notes are in circulation, starting on March 30, 2022.

The Notes have a private credit rating of BBB + from Egan-Jones Ratings Company, an independent and unaffiliated rating agency. Egan-Jones is a Nationally Recognized Statistical Rating Organization (NRSRO) and is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP). Egan-Jones is also certified by the European Securities and Markets Authority (ESMA). A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC, InspereX LLC and William Blair & Company, LLC are acting as co-book managers for the offering. Colliers Securities LLC acts as co-manager of the offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of this offering or any other security and there will be no sale of the Notes or any other security referred to in this press release. press release in any state or jurisdiction in which such offering, solicitation or sale would be illegal before registration or qualification under the securities laws of that state or jurisdiction.

A registration statement relating to, among other things, the Notes has been filed and has been declared effective by the Securities and Exchange Commission. The offer is being made only by means of a related prospectus supplement and an attached base prospectus forming part of the actual registration statement, copies of which may be obtained, where available, from: Ladenburg Thalmann & Co. Inc. upon written request to Syndicate Department,, 640 5th Avenue, 4th Floor, New York, NY 10019 (phone number 1-800-573-2541) or by sending an email to prospectus @ ladenburg .com; Janney Montgomery Scott LLC, upon written request to 1717 Arch Street Philadelphia, PA 19103 (telephone number 1-800-526-6397) or by sending an e-mail to prospectus@janney.com; or InspereX LLC, Attn .: Syndicate Department, 200 S. Wacker Drive, Suite 3400, Chicago, IL 60606 (phone number 1-800-327-1546) or by emailing prospectus_requests @ insperex. com; or William Blair & Company, LLC upon written request to 150 North Riverside Plaza, Chicago, Illinois 60606 (telephone number 1-800-621-0687) or by sending an email to prospectus@williamblair.com. Copies can also be obtained free of charge by visiting EDGAR on the SEC’s website at http://www.sec.gov.

Sachem Capital Corp. has filed a preliminary prospectus supplement, dated December 14, 2021, with the Securities and Exchange Commission, which contains a more detailed description of the Notes and the terms of the Offer. The preliminary prospectus supplement, dated December 14, 2021, and the accompanying base prospectus, dated June 17, 2021, which contains other important information about Sachem Capital Corp., should be read carefully before investing in the Notes. Investors are encouraged to carefully consider their personal investment objectives, the risks associated with Sachem Capital Corp., in general, and the Notes in particular, and other matters relating to Sachem Capital Corp., its business, operations and its financial situation, before investing in the notes.

About Sachem Capital Corp.

Sachem Capital Corp. specializes in the granting, underwriting, financing, management and management of a portfolio of senior mortgages. It offers short-term (i.e. three years or less) secured non-bank loans (sometimes referred to as “hard money” loans) to real estate investors to finance their acquisition, renovation, development, rehabilitation or improvement of property. properties located primarily in Connecticut. . The company does not lend to owner occupiers. The main underwriting criterion of the company is a prudent loan-to-value ratio. The properties securing the company’s loans are generally classified as residential or commercial real estate and generally are held for resale or investment. Each loan is secured by a first mortgage on real estate. Each loan is also personally guaranteed by the principal (s) of the borrower, which collateral can be secured by a pledge of the guarantor’s interest in the borrower. The company also makes opportunistic real estate purchases outside of its lending business. The company believes it qualifies as a real estate investment trust (REIT) for federal income tax purposes and has elected to be taxed as a REIT as of its 2017 tax year.

Forward-looking statements

This press release may contain forward-looking statements. All statements other than statements of historical fact contained in this press release, including statements regarding our future results of operations and financial condition, our strategy and plans, and our expectations for future operations, are statements. prospective. The words “anticipate”, “estimate”, “expect”, “plan”, “plan”, “seek”, “intend”, “believe”, “can”, “could”, ” will “,” should “,” could “,” likely “,” continue “,” design “and the negative of these terms and other words and terms with similar expressions are intended to identify forward-looking statements.

We have based these forward-looking statements in large part on our current expectations and projections regarding future events and trends that we believe could affect our financial condition, results of operations, strategy, business operations and short and long term goals. term and our financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions, as described in our Annual Report on Form 10-K for 2020 filed with the United States Securities and Exchange Commission on March 31, 2021. Due to these risks, uncertainties and assumptions, the forward-looking events and circumstances mentioned in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. In addition, neither we nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. We disclaim any obligation to update any of these forward-looking statements.

All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements and others contained in this press release. You should assess all forward-looking statements we make in the context of these risks and uncertainties.

Investor and media contact:
Crescendo Communications, LLC
Email: sach@crescendo-ir.com
Phone. : (212) 671-1021


]]>