White Mountains (WTM) 2015 Annual Report

White Mountains (WTM) Managing Director Reid Campbell called the current investment opportunity set lackluster

“We continue to face a lousy opportunity set in financial markets. Equity valuations are still rich, and interest rates are still near historic lows. Now, more than ever, some sig- nificant volatility in both equity and fixed income markets would play to our advantage. We took advantage of the equity market pullback in January and February of this year to begin averaging back into equities and sit well positioned with significant dry powder to take advantage of additional market disruptions.”

Insurance is still currently in a soft underwriting market but that may be changing 

“We begin 2016 with challenging conditions in underwriting and investments. We anticipate premiums will be pressured as competitors look for market share. At year- end 2015, the cracks were apparent in many companies’ underwriting results, which may slow some rate reduc- tions and push for corrective actions in troubled lines.”