White Mountains Insurance Sells Controlling Interest in Bamboo for $1.75 Billion

By Philip Seaworth • Saturday, October 04 15:35 • Permanent Link

White Mountains Insurance Group, Ltd. (NYSE: WTM) has announced the sale of a controlling interest in Bamboo, a data-enabled insurance distribution platform, to funds advised by CVC Capital Partners. The transaction values Bamboo at $1.75 billion. Following the sale, White Mountains expects to gain approximately $310 to its book value per share and net cash proceeds of about $840 million. White Mountains will retain an approximately 15% fully-diluted equity stake in Bamboo post-closing, valued at $250 million based on the transaction.

The transaction is expected to close by the end of the fourth quarter of 2025 and is subject to regulatory approvals and other customary closing conditions. White Mountains will file a current report on Form 8-K with the U.S. Securities and Exchange Commission containing a summary of terms and conditions of the proposed transaction.

Bamboo, a capital-light, tech* and data-enabled insurance distribution platform providing homeowners’ insurance and related products to the residential property market in California and Texas, operates primarily through its full-service managing general agent (MGA) business. It also operates a retail agency offering ancillary products on behalf of third parties and a captive reinsurer that participates in the underwriting risk of Bamboo’s MGA programs.

Following the transaction, White Mountains will retain an approximately 15% fully-diluted equity stake in Bamboo, valued at $250 million based on the transaction. Daniel Brand, a partner at CVC, stated, "Bamboo is a one of a kind asset, deploying differentiated technology, speed, and underwriting to serve the insurance needs of homeowners in California and Texas."

Liam Caffrey, President and Chief Financial Officer of White Mountains, expressed, "This transaction is a win-win for both White Mountains shareholders and Bamboo management and employees." John Chu, Chief Executive Officer of Bamboo, added, "While I’m incredibly proud of the growth we’ve achieved while staying true to our client-first values, we’re still in the early innings. We are thrilled to welcome CVC on as our new majority capital partner alongside White Mountains as we embark on the next phase of Bamboo’s growth journey."

The closing is not subject to a financing condition and is expected to close by the end of the fourth quarter of 2025. Upon closing, White Mountains will file a current report on Form 8-K with the U.S. Securities and Exchange Commission containing a summary of terms and conditions of the proposed transaction. Following these announcements, the company's shares moved 10.62%, and are now trading at a price of $1841.34. For the full picture, make sure to review WHITE MOUNTAINS INSURANCE GROUP's 8-K report.

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