White Mountains Insurance Group

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 27 Feb 2026, plus the 10-Q filed 6 Aug 2026 and 7 later 8-Ks.

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

• Our non-U.S. subsidiaries are treated as CFCs and may subject a U.S. 10% shareholder of our common shares to disadvantageous rules under U.S. federal income tax laws.

  Could happen

  On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act (“OBBBA”). The OBBBA reinstated the pre-TCJA rules for determining status as a U.S. 10% shareholder and made certain changes to the subpart F and GILTI rules (including renaming GILTI “net CFC tested income”), effective for tax years beginning after December 31, 2025.

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• Our non-U.S. subsidiaries are treated as CFCs and may subject a U.S. 10% shareholder of our common shares to disadvantageous rules under U.S. federal income tax laws.

  Could happen

  The OBBBA enacted a separate inclusion regime for a “foreign controlled U.S.” (“FCUS”) shareholder of a “foreign controlled foreign corporation” (“FCFC”). A FCUS shareholder of a FCFC must include in its taxable income each year its pro rata share of a FCFC’s subpart F income and CFC tested income for that year, even if no distributions are received by the FCUS shareholder. A FCUS shareholder is a U.S. person who owns more than 50% of a foreign corporation directly, indirectly or through certain constructive ownership rules. A FCFC is a foreign corporation (other than a CFC) where FCUS shareholders own more than 50% of the stock of the foreign corporation directly, indirectly or through certain constructive ownership rules. The enacted provisions apply to tax years of foreign corporations beginning after December 31, 2025.

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• Distinguished’s commission revenues are dependent on many factors, some of which are beyond its control, including the pricing and profitability of certain segments of the property and casualty insurance industry, which is highly competitive and cyclical. Distinguished may not be able to compete effectively in the future, which could materially adversely affect our results of operations and financial condition.

  Could happen

  Distinguished’s future commission revenues could also be materially adversely affected by other factors beyond its control, including (i) the increasing availability of capital markets-based products designed to replace traditional insurance and reinsurance products; (ii) growth in the direct-to-consumer sales channel at the expense of insurance intermediaries including agents and brokers; (iii) the percentage of premium insurance carriers will pay for placement services; (iv) the availability and cost of reinsurance; and (v) future trends in claim severity, emerging coverage issues, frequency, inflation, legislative and judicial changes, regulatory changes, adverse court rulings and other factors.

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