Document:

<PAGE>

                                                                EXHIBIT 10(f)

             AMENDMENT NO. 1 TO CREDIT AGREEMENT, CONSENT AND WAIVER

     This Amendment, Consent and Waiver (this "Amendment") is entered into as
of June 29, 1999 by and among Folksamerica Holding Company, Inc., a New York
corporation (the "Borrower"), The First National Bank of Chicago,
individually and as Agent ("Agent"),and the other financial institutions
signatory hereto (the "Lenders").

                                    RECITALS

     A. The Borrower, the Agent and the Lenders are party to that certain
$100,000,000 Credit Agreement dated as of February 24, 1999 (the "Credit
Agreement"). Unless otherwise specified herein, capitalized terms used in
this Amendment shall have the meanings ascribed to them by the Credit
Agreement.

     B. The Borrower, the Agent and the undersigned Lenders wish to amend the
Credit Agreement, provide certain consents thereunder and waive certain
provisions thereof on the terms and conditions set forth below.

     Now, therefore, in consideration of the mutual execution hereof and
other good and valuable consideration, the parties hereto agree as follows:

          1. AMENDMENT TO CREDIT AGREEMENT. Upon the Effective Date (as
defined below), the Credit Agreement shall be amended as follows:

               (a) ARTICLE I is amended by deleting the definitions of
     "Aggregate Available Commitment", "Fund" and "Unfunded Liabilities" and
     replacing each in its entirety to read as follows:

               "`Aggregate Available Commitment' means, at any time, (a) the
          Aggregate Commitment at such time LESS (b) the outstanding Facility
          Letter of Credit Obligations at such time LESS (c) the outstanding
          Allowable Fund Indebtedness at such time."

               "`Fund' means White Mountains Insurance Group, Inc., a
          Delaware corporation, formerly known as Fund American Enterprises
          Holdings, Inc."

               "`Unfunded Liabilities' means the amount (if any) by which the
          present value of all vested and unvested accrued benefits under all
          Single Employer Plans exceeds the fair market value of all such
          Plan assets allocable to such benefits, all determined as of the
          then most recent valuation date for such Plans and valued on a
          basis consistent with that used to prepare the Borrower's annual
          audited financial statements."

               (b) ARTICLE I is amended by deleting the proviso at the end of
     the definition of "Allowable Seller Paper" and replacing such proviso in
     its entirety to read as follows:

<PAGE>

               "PROVIDED, that (i) to the extent such Indebtedness has been
          Defeased or (ii) during such time when there are no outstanding
          Advances and no Facility Letter of Credit Obligations, the
          condition set forth in CLAUSE (c) above shall not be applicable."

               (c) ARTICLE I is amended by adding the following definition
     for "Allowable Fund Indebtedness" in its proper alphabetical order:

               "`Allowable Fund Indebtedness' means Subordinated Indebtedness
          of the Borrower issued to Fund, in an aggregate principal amount
          not to exceed $85,000,000, the proceeds of which are used to either
          (a) finance a mandatory prepayment of Advances pursuant to SECTION
          2.2(c) or (b) so long as there are no outstanding Advances, finance
          the general corporate needs of the Borrower; PROVIDED, in either
          case such Indebtedness is issued on terms and conditions
          satisfactory to the Required Lenders, including (i) terms of
          subordination, (ii) default provisions, (iii) limitation on
          amortization of principal and payment of fees and cash interest,
          (iv) interest rates and (v) covenants."

               (d) SECTION 2.2(c) is amended by adding the following at the
     end of the first parenthetical phrase of such section:

          ", excluding SECTION 6.11(i)"

               (e) SECTION 2.5.3(b) is amended by adding the following
     proviso at the end of such section:

          "PROVIDED, that issuance of Allowable Fund Indebtedness subject to
          the prepayment provisions of SECTION 2.2(c) shall not require that
          the Aggregate Commitment be reduced to the extent that Allowable
          Fund Indebtedness is repaid on or prior to June 30, 2000."

               (f) SECTION 5.10 is amended by deleting the first sentence in
     such section and replacing it in its entirety to read as follows:

          "Except as disclosed on SCHEDULE 5.10 or as otherwise disclosed by
          the Borrower in writing to the Lenders, neither the Borrower nor
          any other member of the Controlled Group maintains any Single
          Employer Plans, and no Single Employer Plan has any Unfunded
          Liability."

                                     -2-
<PAGE>

               (g) SECTION 6.11 is amended (i) by removing the word "and" at
     the end of SECTION 6.11(h), (ii) by moving the existing SECTION 6.11(i)
     to a new SECTION 6.11(j) and (iii) by replacing SECTION 6.11(i) in its
     entirety with the following:

               "(i) Allowable Fund Indebtedness to the extent that it
          complies with the mandatory prepayment provisions of SECTION
          2.2(c) and the reductions in the Aggregate Commitment provisions
          of SECTION 2.5.3(b); and"

               (h) SECTION 6.16(g) is amended in its entirety to read as
     follows:

               "(g) Liens on (1) the Account in connection with Defeasing
          Allowable Seller Paper or (2) escrow accounts in connection with
          Allowable Seller Paper;"

               (i) SECTION 6.23(b) is amended by deleting the second
     reference contained therein to the dollar amount of "$500,000" and
     replacing it with a reference to the dollar amount of "$1,000,000".

               (j) SECTION 7.18 is amended by deleting the reference
     contained therein to the dollar amount of "$500,000" and replacing it
     with a reference to the dollar amount of "$1,000,000".

               (k) SCHEDULE 5.10 is amended in its entirety and replaced with
     SCHEDULE 5.10 attached hereto.

         2. CONSENT AND WAIVER UNDER THE CREDIT AGREEMENT. Upon the Effective
Date the Agent and the other Lenders signatory hereto hereby:

               (a) consent to and approve the terms and conditions of the
     Subordinated Promissory Note, in substantially the form of EXHIBIT A
     hereto, to be issued by the Borrower to The Centris Group, Inc.(the
     "Centris Note") in an aggregate principal amount of $20,750,000 and deem
     such Indebtedness to be Allowable Seller Paper to the extent such
     Indebtedness complies with the requirements described in the proviso to
     the definition of "Allowable Seller Paper" in the Credit Agreement;

               (b) consent to and approve the terms and conditions of the
     Subordinated Promissory Note, in substantially the form of EXHIBIT B
     hereto, to be issued by the Borrower to Fund (the "Fund Note") in the
     aggregate principal amount of $85,000,000 and deem such note to be
     Allowable Fund Indebtedness;

               (c) waive any breach of Section 6.23(b) of the Credit Agreement
     to and including the Effective Date arising solely out of the Unfunded
     Liabilities of the Folksamerica Holding Company Employees Retirement
     Plan exceeding $500,000 as disclosed on Schedule 5.10 attached to the
     Credit Agreement (the "Excess Unfunded Liability"); and

               (d) waive any Default or Unmatured Default under Section 7.3 or
     7.18 of the Credit Agreement which has heretofore arisen as a result of
     the Excess Unfunded Liability; PROVIDED, that such waiver shall only be
     valid through the Effective Date.

                                     -3-
<PAGE>

         3. REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The Borrower
represents and warrants that:

               (a) The execution, delivery and performance by the Borrower of
     this Amendment have been duly authorized by all necessary corporate
     action and that this Amendment is a legal, valid and binding obligation
     of the Borrower enforceable against the Borrower in accordance with its
     terms, except as the enforcement thereof may be subject to the effect of
     any applicable bankruptcy, insolvency, reorganization, moratorium or
     similar law affecting the enforcement of creditors' rights generally;

               (b) After giving effect to this Amendment, each of the
     representations and warranties contained in the Credit Agreement is true
     and correct in all material respects on and as of the date hereof as if
     made on the date hereof; and

               (c) After giving effect to this Amendment, no Default or
     Unmatured Default has occurred and is continuing.

         4. EFFECTIVE DATE. This Amendment shall become effective upon the
execution and delivery hereof by the Borrower, the Agent and the Required
Lenders (without respect to whether it has been executed and delivered by all
the Lenders); provided that SECTIONS 1 and 2 hereof shall not become
effective until the date (the "Effective Date") when the following additional
conditions have also been satisfied:

               (a) delivery of copies, certified by the Secretary or Assistant
     Secretary of the Borrower, of the fully executed Centris Note and Fund
     Note, each in substantially the form of EXHIBIT A and B, respectively;

               (b) a certificate, executed by the Secretary or Assistant
     Secretary of the Borrower, certifying (i) an attached copy of the
     Borrower's Board of Directors' resolutions authorizing its execution,
     delivery and performance under the Centris Note, the Fund Note and this
     Amendment and (ii) that there has been no amendments, supplements or
     modifications to any of the Articles of Incorporation, Bylaws or
     certificate of incumbency of the Borrower delivered to the Agent on
     February 24, 1999;

               (c) the execution and delivery of the Reaffirmation of Guaranty
     in the form of EXHIBIT C hereto;

               (d) a certificate, executed by the Secretary or Assistant
     Secretary of Fund, certifying (i) an attached copy of Fund's Board of
     Directors' resolutions authorizing and directing any changes to Articles
     of Incorporation to effect a change in its corporate name and (ii) that
     there have been no amendments, supplements or modifications to any of
     the Articles of Incorporation, Bylaws or certificate of incumbency of
     Fund delivered to the Agent on February 24, 1999, or attached copies of
     such amendments, supplements or modifications; and

               (e) such other documents as the Agent, any Lender or their
     counsel may have reasonably requested.

                                     -4-
<PAGE>

     In the event the Effective Date has not occurred on or before July 15,
1999, SECTIONS 1 and 2 hereof shall not become operative and shall be of no
force or effect.

         5. REFERENCE TO AND EFFECT UPON THE CREDIT AGREEMENT.

               (a) Except as specifically amended, the Credit Agreement and
     the other Loan Documents shall remain in full force and effect and are
     hereby ratified and confirmed.

               (b) The execution, delivery and effectiveness of this Amendment
     shall not operate as a waiver of any right, power or remedy of the
     Administrative Agent or any Lender under the Credit Agreement or any
     Loan Document, nor constitute a waiver of any provision of the Credit
     Agreement or any Loan Document, except as specifically set forth herein.
     Upon the effectiveness of this Amendment, each reference in the Credit
     Agreement to "this Agreement", "hereunder", "hereof", "herein" or words
     of similar import shall mean and be a reference to the Credit Agreement
     as amended hereby.

         6. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF
ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

         7. HEADINGS. Section headings in this Amendment are included herein
for convenience of reference only, and shall not govern the interpretation of
any of the provisions of this Amendment.

         8. COUNTERPARTS. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original but
all such counterparts shall constitute one and the same instrument.

                            [signature pages follow]

                                     -5-
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date and year first above written.

                                       FOLKSAMERICA HOLDING COMPANY, INC.

                                       By:
                                          -----------------------------------

                                       Name:
                                            ---------------------------------

                                       Title:
                                             --------------------------------

                                                   One Liberty Plaza
                                                   New York, NY 10006

                                       Attention:  Michael E. Tyburski

                                       Telephone:  (212) 312-2503
                                       Telecopier: (212) 346-0762

                                     -6-
<PAGE>

                                    EXHIBIT C

                            REAFFIRMATION OF GUARANTY

     The undersigned acknowledges receipt of a copy of Amendment No. 1 to
Credit Agreement, Consent and Waiver (the "Amendment") dated as of June __,
1999, consents to such amendment and hereby reaffirms its obligations under
the Guaranty dated as of February 24, 1999 in favor of The First National
Bank of Chicago, as Agent, for the Lenders (as defined in the Amendment).

Dated as of  June   , 1999
                  --

                                       WHITE MOUNTAINS INSURANCE GROUP, INC.
                                       (FORMERLY KNOWN AS FUND AMERICAN
                                       ENTERPRISES HOLDINGS, INC.)

                                        By:
                                           ----------------------------------

                                        Name:
                                             --------------------------------

                                        Title:
                                              -------------------------------

                                     -7-<PAGE>

                                                                EXHIBIT 10(g)

                       AMENDMENT NO. 2 TO CREDIT AGREEMENT

     This AMENDMENT NO. 2 TO CREDIT AGREEMENT (this "Amendment") is entered
into as of October 29, 1999 by and among Folksamerica Holding Company, Inc.,
a New York corporation (the "Borrower"), Bank One, NA (f/k/a The First
National Bank of Chicago), individually and as agent ("Agent"), and the other
financial institutions signatory hereto (the "Lenders").

                                 R E C I T A L S

     A. The Borrower, the Agent, the Lenders and ABN AMRO Bank, NA are party
to that certain $100,000,000 Credit Agreement dated as of February 24, 1999
(as amended, the "Credit Agreement"). Unless otherwise specified herein,
capitalized terms used in this Amendment shall have the meanings ascribed to
them by the Credit Agreement.

     B. The Borrower, the Agent and the undersigned Lenders wish to amend the
Credit Agreement on the terms and conditions set forth below.

     Now, therefore, in consideration of the mutual execution hereof and
other good and valuable consideration, the parties hereto agree as follows:

         1. AMENDMENT TO CREDIT AGREEMENT. Upon the Effective Date (as
defined below), the Credit Agreement shall be amended as follows:

               (a) ARTICLE I is amended as follows:

               (i) by deleting the definitions of "Aggregate Commitment",
     "Commitment", "Corporate Base Rate", "Documentation Agent", "Eurodollar
     Base Rate", "Facility Termination Date", "Floating Rate" and "Lenders"
     and replacing each in its entirety to read as follows:

               "`Aggregate Commitment' means the aggregate of the Commitments
          of all the Lenders, as reduced from time to time pursuant to the
          terms hereof. The Aggregate Commitment as of October 29, 1999 is
          $120,000,000."

               "`Commitment' means, for each Lender, the obligation of such
          Lender to make Loans and participate in Facility Letters of Credit
          not exceeding the amount set forth opposite its name on the
          Commitment Schedule or as set forth in any Notice of Assignment
          relating to any assignment which has become effective pursuant to
          SECTION 12.3.2, as such amount may be modified from time to time
          pursuant to the terms hereof."

<PAGE>

               "`Corporate Base Rate' means a rate per annum equal to the
          corporate base rate or prime rate of interest announced by Bank One
          or by its parent, Bank One Corporation, from time to time, changing
          when and as said corporate base rate or prime rate changes. The
          Corporate Base Rate is a reference rate and does not necessarily
          represent the lowest or best rate of interest actually charged to
          any customer. Bank One may make commercial loans or other loans at
          rates of interest at, above or below the Corporate Base Rate."

               "`Documentation Agent' means First Union National Bank, in its
          capacity as Documentation Agent for the Lenders pursuant to ARTICLE
          X, and not in its capacity as Lender."

               "`Eurodollar Base Rate' means, with respect to a Eurodollar
          Advance for the relevant Interest Period, the applicable British
          Bankers' Association Interest Settlement Rate for deposits in U.S.
          dollars appearing on Reuters Screen FRBD as of 11:00 a.m. (London
          time) two Business Days prior to the first day of such Interest
          Period, and having a maturity equal to such Interest Period,
          PROVIDED that, (i) if Reuters Screen FRBD is not available to the
          Agent for any reason, the applicable Eurodollar Base Rate for the
          relevant Interest Period shall instead be the applicable British
          Bankers' Association Interest Settlement Rate for deposits in U.S.
          dollars as reported by any other generally recognized financial
          information service as of 11:00 a.m. (London time) two Business
          Days prior to the first day of such Interest Period, and having a
          maturity equal to such Interest Period, and (ii) if no such British
          Bankers' Association Interest Settlement Rate is available to the
          Agent, the applicable Eurodollar Base Rate for the relevant
          Interest Period shall instead be the rate determined by the Agent
          to be the rate at which Bank One or one of its Affiliate banks
          offers to place deposits in U.S. dollars with first-class banks in
          the London interbank market at approximately 11:00 a.m. (London
          time) two Business Days prior to the first day of such Interest
          Period, in the approximate amount of Bank One's relevant Loan and
          having a maturity equal to such Interest Period."

               "`Facility Termination Date' means February 24, 2005 or any
          earlier date on which the Aggregate Commitment is reduced to zero
          or otherwise terminated pursuant to the terms hereof."

               "`Floating Rate' means, for any day, a rate of interest per
          annum equal to the higher of (a) the Corporate Base Rate for such
          day, and (b) the sum of the Federal Funds Effective Rate for such
          day PLUS 1/2% per annum; PROVIDED, that `Floating Rate' means, for
          any day for the period from November 15, 1999 to January 15, 2000,
          a rate of interest per annum equal to the highest of (i) the
          Corporate Base Rate for such day, (ii) the sum of the Federal Funds
          Effective Rate for such day plus 1/2% per annum and (iii) the sum
          of the then current Federal Reserve Board Open Market Committee's
          `Target Fed Funds Rate' for such day plus 1 1/2% per annum plus the
          Applicable Eurodollar Margin, in each case changing when and as the
          Corporate Base Rate, the Federal Funds Effective Rate or the Target
          Fed Funds Rate, as the case may be, changes."

                                     -2-
<PAGE>

               "`Lenders' means the lending institutions listed on the
          signature pages of Amendment No. 2 to Credit Agreement, dated as of
          October 29, 1999, and their respective successors and assigns."

              (ii) by deleting the definition of "First Chicago" and
     replacing it in its entirety with the following definition of "Bank One"
     in its proper alphabetical order:

               "`Bank One' means Bank One, NA, a national banking association
          having its principal office in Chicago, Illinois, in its individual
          capacity, and its successors."

              (iii) by deleting the definition of "Fund" and replacing it in
     its entirety with the following definition of "WMIG" in its proper
     alphabetical order:

               "`WMIG' means White Mountains Insurance Group, Inc., a
          Delaware corporation formerly known as Fund American Enterprises
          Holdings, Inc., and, subject to satisfaction of the applicable
          Reorganization Conditions, its successors pursuant to the
          Reorganization Transactions."

              (iv) by adding the following definitions for "Commitment
     Schedule", "Medium Term Notes", "Medium Term Note Indenture",
     "Reorganization Conditions", "Reorganization Transactions", "Syndication
     Agent", "White Mountains-Arizona", "White Mountains-Bermuda" and "White
     Mountains-Delaware" each in its proper alphabetical order:

               "`Commitment Schedule' means the Schedule attached hereto
          identified as such."

               "`Medium Term Notes' means the securities issued by WMIG under
          the Medium Term Note Indenture in the original aggregate principal
          amount of $150,000,000, of which approximately $100,385,000 remains
          outstanding as of October 29, 1999."

               "`Medium Term Note Indenture' means that certain indenture
          dated as January 1, 1993 between WMIG, as issuer, and Bank One
          Trust Company, NA (f/k/a The First National Bank of Chicago), as
          trustee, as amended and supplemented from time to time."

               "`Reorganization Conditions' means: (a) with respect to the
          transaction described in CLAUSE (b) of the definition of
          Reorganization Transactions, WMIG shall have furnished to the
          Agent, with sufficient copies for the Lenders, the following
          documents, all of which shall be in form and substance reasonably
          satisfactory to the Lenders and their counsel: (i) the certificate
          of merger and all other merger documents, (ii) the articles of
          incorporation of the surviving entity, (iii) the bylaws of the
          surviving entity, (iv) a certificate of incumbency as to the
          authorized officers for the surviving entity, (v) an affirmation by
          the surviving entity of its Obligations under the Guaranty as
          successor to WMIG, (vi) opinions

                                     -3-
<PAGE>

          of counsel as to such matters as the Agent may reasonably request
          and (vii) a certificate of compliance by the surviving entity as to
          the matters described in SECTIONS 6.12(c)(i) and (iii) of the WMIG
          Credit Agreement; and (b) with respect to the transaction described
          in CLAUSE (c) of the definition of Reorganization Transactions,
          WMIG shall have furnished to the Agent, with sufficient copies for
          the Lenders, the following documents, all of which shall be in form
          and substance reasonably satisfactory to the Lenders and their
          counsel: (i) the memorandum of continuance filed with the Registrar
          of Companies in Bermuda and all other redomestication documents,
          (ii) the bye-laws of the continuing entity, (iii) a certificate of
          incumbency as to the authorized officers for the continuing entity,
          (iv) an affirmation by the continuing entity of its Obligations
          under the Guaranty as successor to WMIG, (v) opinions of counsel as
          to such matters as the Agent may reasonably request and (vi) a
          certificate of compliance by the continuing entity as to the
          matters described in SECTIONS 6.12(c)(i) and (iii) of the WMIG
          Credit Agreement."

               "`Reorganization Transactions' means the subsidiary formation,
          merger and change of domicile transactions, taken together, by
          which (a) White Mountains-Delaware has formed a Wholly-Owned
          Subsidiary, White Mountains Insurance Group (Arizona), Inc., (b)
          immediately preceding and for the purpose of consummating the
          transaction described in CLAUSE (c) below, White Mountains-Delaware
          merges with and into White Mountains-Arizona, which will be the
          surviving corporation in the merger, with each outstanding share of
          common stock of White Mountains-Delaware converted automatically
          into one share of common stock of White Mountains-Arizona, (c)
          White Mountains-Arizona is redomiciled and continues its existence
          as White Mountains-Bermuda upon registration of the memorandum of
          continuance by the Registrar of Companies in Bermuda, with each
          outstanding share of common stock of White Mountains-Arizona
          continuing automatically as one common share of White
          Mountains-Bermuda, (d) White Mountains forms a new subsidiary,
          White Mountains Properties (Barbados) SRL, a Barbados corporation
          (and Wholly-Owned Subsidiary of White Mountains-Delaware), and
          contributes all the shares of common stock of White Mountains
          Properties, Inc., a Delaware corporation and survivor of a merger
          with Fund American Enterprises, Inc., to such new subsidiary, after
          which White Mountains Properties (Barbados) SRL will merge White
          Mountains Properties, Inc. with and into the Borrower with the
          Borrower being the surviving entity and (e) White
          Mountains-Delaware forms a new Wholly-Owned Subsidiary, White
          Mountains Holdings (Barbados) SRL, a Barbados corporation, and
          contributes all the shares of common stock of White Mountains to
          such new subsidiary."

               "`Syndication Agent' means Fleet National Bank, in its
          capacity as Syndication Agent for the Lenders pursuant to ARTICLE
          X, and not in its capacity as Lender."

               "`White Mountains-Arizona' means White Mountains Insurance
          Group (Arizona), Inc., an Arizona corporation."

                                     -4-
<PAGE>

               "`White Mountains-Bermuda' means White Mountains Insurance
          Group, Ltd., a Bermuda company, following the registration of the
          memorandum of continuance by White Mountains-Arizona with the
          Registrar of Companies in Bermuda."

               "`White Mountains-Delaware' means WMIG prior to the
          consummation of the Reorganization Transactions."

              (v) by deleting the definition for "Alternate Base Rate".

              (b) Each reference therein to "First Chicago" is deemed amended
     to be a reference to "Bank One".

              (c) Each reference therein to "Alternate Base Rate" is deemed
     amended to be a reference to "Floating Rate".

              (d) Each reference therein to "Fund" is deemed amended
     (including in other defined terms) to be a reference to "WMIG".

              (e) SECTION 2.5.3(a) is amended by deleting the table therein
     and replacing it in its entirety with the following table:

<TABLE>
<CAPTION>
              "DATE                     ANNUAL REDUCTION
               ----                    ------------------
               <S>                        <C>
               February 24, 2000          $ 5,000,000
               February 24, 2001          $15,000,000
               February 24, 2002          $20,000,000
               February 24, 2003          $20,000,000
               February 24, 2004          $25,000,000
               February 24, 2005          $35,000,000"
</TABLE>

              (f) ARTICLE IV is amended by adding the following Section 4.3:

               "4.3. ADVANCES FOLLOWING REORGANIZATION TRANSACTIONS. The
          Lenders shall not be required to make any Advance and the Issuer
          shall not be obligated to issue any future Facility Letter of
          Credit after the consummation of any of the Reorganization
          Transactions unless on the applicable Borrowing Date the applicable
          Reorganization Conditions have been satisfied."

              (g) SECTION 6.4(a) is amended by adding the following at the
     end of the parenthetical phrase contained such section:

               "and any Wholly-Owned Subsidiary may discontinue its business
          pursuant to a merger permitted pursuant to SECTION 6.12 (or by a
          liquidation into another entity if a merger into such entity would
          be permitted by SECTION 6.12)"

              (h) SECTION 6.4(c) is amended by adding the following
     parenthetical phrase after the word "incorporation" on the second line
     of such section:

                                     -5-
<PAGE>

               "(except any Wholly-Owned Subsidiary may discontinue its
          business pursuant to a merger permitted pursuant to SECTION 6.12
          (or by a liquidation into another entity if a merger into such
          entity would be permitted by SECTION 6.12))"

              (i) SECTION 6.8 is amended by adding the following at the end
     of the parenthetical phrase contained in such section:

               "and any Wholly-Owned Subsidiary may discontinue its business
          pursuant to a transaction permitted pursuant to SECTION 6.12(or by
          a liquidation into another entity if a merger into such entity
          would be permitted by SECTION 6.12)"

              (j) SECTION 6.11(j) is amended by deleting the reference
     contained therein to the dollar amount of "$10,000,000" and replacing it
     with a reference to the dollar amount of "$15,000,000".

              (k) SECTION 6.12(c) is amended by adding the following to the
     parenthetical phrase after the words "Borrower's Subsidiaries" and
     before the comma:

               "or pursuant to the Reorganization Transactions"

              (l) SECTION 6.14(a)(v) is amended by inserting on the first
     line after the word "entities" contained therein, the parenthetical
     phrase reading as follows:

               "(including the creation of Wholly-Owned Subsidiaries)"

              (m) SECTION 6.21.1 is amended by adding the following clause
     "(d)" at the end of such section:

               ", MINUS (d) an amount equal to 90% of the Special Dividend
          (as defined in the Dividend Schedule)."

              (n) Section 6.21.2 is amended in its entirety and replaced with
     the following:

               "6.21.2 MAXIMUM LEVERAGE RATIO. The Borrower shall at all
          times maintain a Leverage Ratio of (a) not greater than 37.5%
          through and including March 31, 2000 (b) not greater than 35% from
          April 1, 2000 through and including December 31, 2000, (c) not
          greater than 30% from January 1, 2001 through and including
          December 31, 2001, (d) not greater than 25% from January 1, 2002
          through and including December 31, 2002, and (e) not greater than
          20% at all times thereafter."

              (o) SECTION 6.21.4 is amended by adding the following clause
     "(c)" at the end of such section:

               ", MINUS (c) $13,500,000."

                                     -6-
<PAGE>

              (p) SECTION 6.22(a) is amended in its entirety and replaced
     with the following:

               "(a) file or consent to the filing of any consolidated,
          combined or unitary income tax return with any Person other than
          WMIG or the Borrower and its Wholly-Owned Subsidiaries or"

              (q) SECTION 7.5 is amended by adding the following proviso at
     the end of such section:

               "PROVIDED, HOWEVER, that in each case if any of the above
          described events arises with respect to WMIG and with respect to
          the Medium Term Notes or the Medium Term Notes Indenture and arises
          solely out of WMIG's consummation of the Reorganization
          Transactions, a Default shall not occur unless WMIG shall fail
          within ninety (90) days to pay in full any such Funded Indebtedness
          which has been declared to be due and payable or required to be
          prepaid (other than by a regularly scheduled payment) prior to the
          stated maturity thereof."

              (r) SECTION 10.17 is amended in its entirety and replaced with
     the following:

               "10.17 SYNDICATION AGENT AND DOCUMENTATION AGENT.

               (a) Fleet National Bank is hereby appointed Syndication Agent
          of the Lenders hereunder and under each Loan Document. Fleet
          National Bank shall not have any duties, responsibilities or
          liabilities in its capacity as Syndication Agent.

               (b) First Union National Bank is hereby appointed
          Documentation Agent of the Lenders hereunder and under each Loan
          Document. First Union National Bank shall not have any duties,
          responsibilities or liabilities in its capacity as Documentation
          Agent."

              (s) The DIVIDEND SCHEDULE is amended in its entirety and
     replaced with the DIVIDEND SCHEDULE attached hereto.

              (t) The PRICING SCHEDULE is amended in its entirety and
     replaced with the PRICING SCHEDULE attached hereto.

              (u) EXHIBIT C is amended in its entirety and replaced with
     EXHIBIT C attached hereto.

              (v) The Credit Agreement is amended by adding the COMMITMENT
     SCHEDULE attached hereto.

         2. REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The Borrower
represents and warrants that:

                                     -7-
<PAGE>

              (a) The execution, delivery and performance by the Borrower of
     this Amendment has been duly authorized by all necessary corporate
     action and that this Amendment is a legal, valid and binding obligation
     of the Borrower enforceable against the Borrower in accordance with its
     terms, except as the enforcement thereof may be subject to the effect of
     any applicable bankruptcy, insolvency, reorganization, moratorium or
     similar law affecting creditors' rights generally;

              (b) After giving effect to this Amendment, each of the
     representations and warranties contained in the Credit Agreement is true
     and correct in all material respects on and as of the date hereof as if
     made on the date hereof; and

              (c) After giving effect to this Amendment, no Default or
     Unmatured Default has occurred and is continuing.

         3. EFFECTIVE DATE. This Amendment shall become effective upon the
execution and delivery hereof by the Borrower, the Agent and each of Lenders;
provided that SECTION 1 hereof shall not become effective until the date (the
"Effective Date") when the following additional conditions have also been
satisfied:

              (a) a certificate, executed by the Secretary or Assistant
     Secretary of the Borrower, certifying (i) an attached copy of the
     Borrower's Board of Directors' resolutions authorizing its execution,
     delivery and performance under this Amendment and (ii) that there have
     been no amendments, supplements or modifications to any of the Articles
     of Incorporation, Bylaws or certificate of incumbency of the Borrower
     delivered to the Agent on February 24, 1999;

              (b) the execution and delivery of the Reaffirmation of Guaranty
     in the form of EXHIBIT A hereto;

              (c) a certificate, executed by the Secretary or Assistant
     Secretary of WMIG, certifying that there have been no amendments,
     supplements or modifications to any of the Articles of Incorporation,
     Bylaws or certificate of incumbency of Fund delivered to the Agent on
     February 24, 1999, or attached copies of such amendments, supplements or
     modifications;

              (d) Notes payable to the order of each of the Lenders in the
     amount of their respective increased Commitment duly executed by the
     Borrower;

              (e) payment of all fees by the Borrower due to the Agent and
     the Lenders;

              (f) ABN AMRO Bank, NA shall have consented to this Amendment
     and the reduction to $0 of its commitment under the Credit Agreement,
     such consent to be in form and substance satisfactory to the Agent; and

              (g) such other documents as the Agent or its counsel may have
     reasonably requested.

                                     -8-
<PAGE>

     In the event the Effective Date has not occurred on or before November
15, 1999, SECTION 1 hereof shall not become operative and shall be of no
force or effect.

         4. REFERENCE TO AND EFFECT UPON THE CREDIT AGREEMENT.

              (a) Except as specifically amended above, the Credit Agreement
     and the other Loan Documents shall remain in full force and effect and
     are hereby ratified and confirmed.

              (b) The execution, delivery and effectiveness of this Amendment
     shall not operate as a waiver of any right, power or remedy of the Agent
     or any Lender under the Credit Agreement or any Loan Document, nor
     constitute a waiver of any provision of the Credit Agreement or any Loan
     Document, except as specifically set forth herein. Upon the
     effectiveness of this Amendment, each reference in the Credit Agreement
     to "this Agreement", "hereunder", "hereof", "herein" or words of similar
     import shall mean and be a reference to the Credit Agreement as amended
     hereby.

         5. COSTS AND EXPENSES. The Borrower hereby affirms its obligations
under Section 9.7 of the Credit Agreement to reimburse the Agent for all
reasonable costs, internal charges and out-of-pocket expenses paid or
incurred by the Agent in connection with the preparation, negotiation,
execution and delivery of this Amendment, including but not limited to the
attorneys' fees and time charges of attorneys for the Agent with respect
thereto.

         6. CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION, 735 ILCS SECTION
105/5-1 ET SEQ, BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAWS
PROVISIONS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS.

         7. HEADINGS. Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Amendment for any other purposes.

         8. COUNTERPARTS. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original but
all such counterparts shall constitute one and the same instrument.

                           [signature pages to follow]

                                     -9-
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Amendment as of
the date and year first above written.

                                       FOLKSAMERICA HOLDING COMPANY, INC.

                                       By:
                                          ------------------------------------

                                       Name:
                                            ----------------------------------

                                       Title:
                                             ---------------------------------

                                                   One Liberty Plaza
                                                   New York, NY 10006

                                       Attention:  Michael E. Tyburski

                                       Telephone:  (212) 312-2503
                                       Telecopier: (212) 346-0762

                                     -10-
<PAGE>

                                       BANK ONE, NA,
                                       Individually and as Agent

                                       By:
                                          ------------------------------------

                                       Print Name:
                                                  ----------------------------

                                       Title:
                                             ---------------------------------

                                       Address:  One Bank One Plaza
                                                 Chicago, IL 60670
                                                 Attn: Samuel W. Bridges
                                                       First Vice President

                                       Fax No.:  (212) 373-1393
                                       Tel. No.: (212) 373-1142

                                     -11-
<PAGE>

                                       FLEET NATIONAL BANK

                                       By:
                                          ------------------------------------

                                       Print Name:
                                                  ----------------------------

                                       Title:
                                             ---------------------------------

                                       Address:  One Federal Street-MAOFD06H
                                                 Boston, MA  02110-2010
                                                 Attn:  David A. Bosselait
                                                        Vice President

                                       Fax No.:  (617) 346-5825
                                       Tel. No.: (617) 346-5823

                                     -12-
<PAGE>

                                       FIRST UNION NATIONAL BANK

                                       By:
                                          ------------------------------------

                                       Print Name:
                                                  ----------------------------

                                       Title:
                                             ---------------------------------

                                       Address:  1339 Chestnut Street, PA4819
                                                 Philadelphia, PA 19101-4819
                                                 Attn:  Joseph DiFrancesco

                                       Fax No.:  215-786-4114
                                       Tel. No.: 215-973-2944

                                     -13-
<PAGE>

                                       DEUTSCHE BANK AG,
                                       New York and/or Cayman Islands Branch

                                       By:
                                          ------------------------------------

                                       Print Name:
                                                  ----------------------------

                                       Title:
                                             ---------------------------------

                                       By:
                                          ------------------------------------

                                       Print Name:
                                                  ----------------------------

                                       Title:
                                             ---------------------------------

                                       Address:  31 West 52nd Street
                                                 New York, NY  10019
                                                 Attn: George Korchowsky

                                       Fax No.:  212-469-8366
                                       Tel. No.: 212-469-8242

                                     -14-
<PAGE>

                                       DRESDNER BANK AG, New York and
                                       Grand Cayman Branches

                                       By:
                                          ------------------------------------

                                       Print Name:
                                                  ----------------------------

                                       Title:
                                             ---------------------------------

                                       By:
                                          ------------------------------------

                                       Print Name:
                                                  ----------------------------

                                       Title:
                                             ---------------------------------

                                       Address:  75 Wall Street, 34th Floor
                                                 New York, NY  10005
                                                 Attn:  George Ferguson

                                       Fax No.:  212-429-2524
                                       Tel. No.: 212-429-3189

                                     -15-
<PAGE>

                                    EXHIBIT A

                            REAFFIRMATION OF GUARANTY

     The undersigned acknowledges receipt of a copy of Amendment No. 2 to
Credit Agreement (the "Amendment") dated as of October 29, 1999, consents to
such amendment and hereby reaffirms its obligations under the Guaranty dated
as of February 24, 1999 in favor of Bank One, NA (f/k/a The First National
Bank of Chicago), as Agent, for the Lenders (as defined in the Amendment).

Dated as of               , 1999
            ---------- ---

                                       WHITE MOUNTAINS INSURANCE GROUP, LTD.

                                       By:
                                          ------------------------------------

                                       Name:
                                            ----------------------------------

                                       Title:
                                             ---------------------------------

                                     -16-
<PAGE>

                                PRICING SCHEDULE

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------------------
                       EURODOLLAR RATE APPLICABLE MARGIN*
                              (AS A PER ANNUM RATE)
--------------------------------------------------------------------------------------------------------------------------------
LEVERAGE RATIO                                       BEST'S RATING** GREATER THAN OR EQUAL TO"A"  BEST'S RATING** LESS THAN "A"
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                                     <C>
GREATER THAN OR EQUAL TO 0.275 to 1.0                                   1.250%                                1.50%
--------------------------------------------------------------------------------------------------------------------------------
GREATER THAN OR EQUAL TO 0.20 to 1.0 but LESS THAN 0.275 to 1.0         1.000%                                1.25%
--------------------------------------------------------------------------------------------------------------------------------
GREATER THAN OR EQUAL TO 0.15 to 1.0 but LESS THAN 0.20 to 1.0          0.750%                                1.00%
--------------------------------------------------------------------------------------------------------------------------------
LESS THAN 0.15 to 1.0                                                   0.625%                                0.75%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

*   Beginning on February 24, 2003, and continuing through the Maturity Date,
    the Applicable Margins shown in the table above will increase by 0.50%.

**  Means the rating of Folksamerica Reinsurance Company provided by A. M.
    Best & Co.

<TABLE>

-----------------------------------------------------------------------------
                               COMMITMENT FEE
                            (AS A PER ANNUM RATE)
-----------------------------------------------------------------------------
      LEVERAGE RATIO                                                        APPLICABLE FEE RATE
      --------------                                                        -------------------
      <S>                                                                   <C>
      GREATER THAN OR EQUAL TO 0.20 to 1.0                                         0.250%
      GREATER THAN OR EQUAL TO 0.15 to 1.0 but LESS THAN 0.20 to 1.0               0.225%
      LESS THAN 0.15 to 1.0                                                        0.200%
</TABLE>

                                     -17-
<PAGE>

                               DIVIDEND SCHEDULE

I. APPLIES AT ALL TIMES PRIOR TO TERMINATION OR EXPIRATION OF THE WMIG CREDIT
AGREEMENT:

<TABLE>

<S>                               <C>                                              <C>
-----------------------------------------------------------------------------------------------------------------------------------
                                  No "default" has occurred and is continuing      A "default" has occurred and is continuing
                                  under the WMIG Credit Agreement AND WMIG owns    under the WMIG Credit Agreement OR WMIG owns
                                  directly or indirectly at least 80% of the       directly or indirectly less than 80% of the
                                  fully-diluted common equity of the Borrower.     fully-diluted common equity of the Borrower
-----------------------------------------------------------------------------------------------------------------------------------
Dividends, Repurchases or         The Borrower will be permitted in any            The Borrower will be permitted in any
other Capital Distributions       Fiscal Year to pay dividends, repurchase         Fiscal Year to pay dividends, repurchase
                                  stock or make other capital distributions        stock or make other capital distributions
                                  (excluding the FAE Amount and the Special        (excluding the FAE Amount and the Special
                                  Dividend) in an aggregate amount equal to        Dividend) in an aggregate amount equal to
                                  the lesser of:                                   the lesser of:
                                  (a) $8,000,000;                                  (a) $2,000,000;
                                  (b) Combined Statutory Net Income for all        (b) Combined Statutory Net Income for all
                                  First-Tier Significant Insurance Subsidiaries    First-Tier Significant Insurance Subsidiaries
                                  for the most recently completed Fiscal Year;     for the most recently completed Fiscal Year;
                                  and                                              and
                                  (c) an amount equal to the excess of (i) the     (c) an amount equal to the excess of (i) the
                                  sum of (x) Cash Flow (determined as of           sum of (x) Cash Flow (determined as of
                                  December 31 of the preceding Fiscal Year)        December 31 of the preceding Fiscal Year)
                                  PLUS (y) cash and cash equivalents of the        PLUS (y) cash and cash equivalents of the
                                  Borrower (determined as of December 31 of the    Borrower (determined as of December 31 of the
                                  preceding Fiscal Year), MINUS (ii) Fixed         preceding Fiscal Year), MINUS (ii) Fixed
                                  Charges (determined as of December 31 of the     Charges (determined as of December 31 of the
                                  preceding Fiscal Year) multiplied by 125%.       preceding Fiscal Year) multiplied by 125%.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                     -18-
<PAGE>

II.      APPLIES AT ALL OTHER TIMES:

<TABLE>

<S>                               <C>                                              <C>
-----------------------------------------------------------------------------------------------------------------------------------
                                  WMIG is in compliance with each of the           WMIG is not in compliance with each of the
                                  Guarantor Ratios AND WMIG owns directly          Guarantor Ratios OR WMIG owns directly
                                  or indirectly at least 80% of the fully-         or indirectly less than 80% of the fully-
                                  diluted common equity of the Borrower.           diluted common equity of the Borrower.
-----------------------------------------------------------------------------------------------------------------------------------
Dividends, Repurchases or         The Borrower will be permitted in any            The Borrower will be permitted in any
other Capital Distributions       Fiscal Year to pay dividends, repurchase         Fiscal Year to pay dividends, repurchase
                                  stock or make other capital distributions        stock or make other capital distributions
                                  (excluding the FAE Amount and the Special        (excluding the FAE Amount and the Special
                                  Dividend) in an aggregate amount equal to        Dividend) in an aggregate amount equal to
                                  the lesser of:                                   the lesser of:
                                  (a) $8,000,000;                                  (a) $2,000,000;
                                  (b) Combined Statutory Net Income for all        (b) Combined Statutory Net Income for all
                                  First-Tier Significant Insurance Subsidiaries    First-Tier Significant Insurance Subsidiaries
                                  for the most recently completed Fiscal Year;     for the most recently completed Fiscal Year;
                                  and (c) an amount equal to the excess of (i)     and (c) an amount equal to the excess of (i)
                                  the sum of (x) Cash Flow (determined as of       the sum of (x) Cash Flow (determined as of
                                  December 31 of the preceding Fiscal Year)        December 31 of the preceding Fiscal Year)
                                  PLUS (y) cash and cash equivalents of the        PLUS (y) cash and cash equivalents of the
                                  Borrower (determined as of December 31 of        Borrower (determined as of December 31 of
                                  the preceding Fiscal Year), MINUS (ii) Fixed     the preceding Fiscal Year), MINUS (ii) Fixed
                                  Charges (determined as of December 31 of the     Charges (determined as of December 31 of the
                                  preceding Fiscal Year) multiplied by 125%        preceding Fiscal Year) multiplied by 125%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

     For the purposes of this Dividend Schedule, the following terms have the
following meanings:

     "FAE Amount" means a certain dividend, stock repurchase or other capital
distribution by the Borrower in an aggregate amount not in excess of
$30,000,000 to Fund American Enterprises, Inc., a Delaware corporation, on
February 24, 1999, the total amount of which is used to repay all
indebtedness, liabilities and obligations under and to terminate the
$50,000,000 credit agreement of WMH.

     "Guarantor Ratios" shall mean:

                                     -19-
<PAGE>

     WMIG MINIMUM NET WORTH WMIG shall at all times maintain a minimum Net
     Worth at least equal to (a) the sum of (i) $514,530,000, PLUS (ii) an
     amount equal to 90% of the cash and non-cash proceeds of any equity
     securities issued by WMIG after September 30, 1998, MINUS (b) an amount
     equal to the lesser of (i) $30,000,000 or (ii) the aggregate amount
     expended by WMIG after September 30, 1998 to repurchase its capital
     stock in compliance with the WMIG Credit Agreement.

     WMIG MAXIMUM LEVERAGE RATIO WMIG shall at all times maintain a Leverage
     Ratio of not greater than 35%.

     "Special Dividend" means that certain one-time dividend (payable in two
installments) made prior to December 31, 1999 by the Borrower to White
Mountains Properties, Inc., a Delaware corporation and survivor of a merger
with Fund American Enterprises, Inc., a Delaware corporation, and/or White
Mountains Properties (Barbados) SRL, a Barbados corporation (or their
successors) in an aggregate amount not to exceed $30,000,000.

     "Statutory Net Income" means, with respect to any First-Tier Significant
Insurance Subsidiary for any computation period, the net income earned by
such First-Tier Significant Insurance Subsidiary during such period, as
determined in accordance with standard accounting practices.

                                     -20-
<PAGE>

                               COMMITMENT SCHEDULE

<TABLE>
<CAPTION>

LENDER                                  COMMITMENT AMOUNT
------                                  -----------------
<S>                                     <C>
Bank One, NA                               $ 30,000,000

Fleet National Bank                        $ 27,000,000

First Union National Bank                  $ 24,000,000

Dresdner Bank AG, New York and             $ 22,000,000
  Grand Cayman Branches

Deutsche Bank AG, New York and/or          $ 17,000,000
  Cayman Islands Branch                    ------------

    AGGREGATE COMMITMENT                   $120,000,000
</TABLE>

                                     -21-

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