White Mountains to acquire majority stake in Bamboo

White Mountains Insurance Group announced that it has entered into an agreement to acquire a majority stake in Bamboo Ide8 Insurance Services, an MGA focused on the California homeowners insurance market. White Mountains expects to invest approximately $285M, including primary capital to support Bamboo’s growth, and to acquire approximately 70% of Bamboo basic shares outstanding. Bamboo was launched in 2018 by John Chu, a seasoned insurance executive. Bamboo provides homeowners’ insurance for over 100,000 California policyholders, using its technology-enabled underwriting platform to select and manage risk. Bamboo has grown profitably and rapidly in the challenging California market, and is now poised to expand into other states. John and the current Bamboo management team will continue to lead the business through its next phase and will retain a significant equity stake. The transaction is expected to close in the Q1 of 2024. The closing is subject to regulatory approvals and other customary closing conditions. The closing is not subject to a financing condition. The exact ownership to be acquired by White Mountains, and the resulting amount that will be invested, will be determined based on Bamboo unitholder elections made prior to closing. Howden Tiger Capital Markets & Advisory acted as financial advisor to White Mountains, while Cravath, Swaine & Moore provided legal advice. Evercore Group acted as financial advisor to Bamboo and selling equityholders, while Willkie Farr & Gallagher provided legal advice.