Should You Be Adding White Mountains Insurance Group (NYSE:WTM) To Your Watchlist Today?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like White Mountains Insurance Group (NYSE:WTM). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide White Mountains Insurance Group with the means to add long-term value to shareholders.

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How Fast Is White Mountains Insurance Group Growing Its Earnings Per Share?

Investors and investment funds chase profits, and that means share prices tend rise with positive earnings per share (EPS) outcomes. Which is why EPS growth is looked upon so favourably. It's an outstanding feat for White Mountains Insurance Group to have grown EPS from US$79.94 to US$466 in just one year. When you see earnings grow that quickly, it often means good things ahead for the company. This could point to the business hitting a point of inflection.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. It's noted that White Mountains Insurance Group's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. White Mountains Insurance Group maintained stable EBIT margins over the last year, all while growing revenue 16% to US$3.0b. That's a real positive.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

Check out our latest analysis for White Mountains Insurance Group

While profitability drives the upside, prudent investors always check the balance sheet, too.

Are White Mountains Insurance Group Insiders Aligned With All Shareholders?

We would not expect to see insiders owning a large percentage of a US$5.2b company like White Mountains Insurance Group. But we do take comfort from the fact that they are investors in the company. Notably, they have an enviable stake in the company, worth US$171m. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future.

It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Well, based on the CEO pay, you'd argue that they are indeed. For companies with market capitalisations between US$4.0b and US$12b, like White Mountains Insurance Group, the median CEO pay is around US$8.4m.

White Mountains Insurance Group offered total compensation worth US$5.9m to its CEO in the year to December 2025. That comes in below the average for similar sized companies and seems pretty reasonable. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense.

Does White Mountains Insurance Group Deserve A Spot On Your Watchlist?

White Mountains Insurance Group's earnings have taken off in quite an impressive fashion. The sweetener is that insiders have a mountain of stock, and the CEO remuneration is quite reasonable. The drastic earnings growth indicates the business is going from strength to strength. Hopefully a trend that continues well into the future. Big growth can make big winners, so the writing on the wall tells us that White Mountains Insurance Group is worth considering carefully. What about risks? Every company has them, and we've spotted 1 warning sign for White Mountains Insurance Group you should know about.

Although White Mountains Insurance Group certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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