Shares in White Mountains Insurance Group (WTM) scaled the heights today after it sold a majority stake in its Bamboo division to private equity giant CVC Capital Partners.
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Here For Good
The deal values Bamboo, a tech-driven homeowners’ insurance distribution platform, at $1.75 billion. Operating in California and most recently in Texas, Bamboo specializes in data-enabled underwriting and distribution for the residential property market. It also covers renters and auto insurance.
It prides itself on offering a personalized and “approachable” customer service. It also follows a ‘Here for Good’ mantra, which plays on the company’s longevity in California “when others walked away.”
That refers to the Californian insurance market which is currently tussling with sky-high premiums and issues around the impact of floods and fire on homeowner coverage.
White Mountains Insurance said the deal is expected to add about $310 to its book value per share and generate roughly $840 million in net cash proceeds.
It will hope that the move gives a boost to its share price, which has struggled since the start of the year – see below:
The transaction is expected to close by the end of the fourth quarter of 2025, subject to regulatory approvals and customary conditions.
InsurTech Growth
Post-closure, White Mountains will retain a 15% fully diluted equity stake in Bamboo, valued at around $250 million.
Manning Rountree, Chief Executive Officer of White Mountains, said: “It has been our privilege to partner with Bamboo. Its rapid growth is a testament to the value and innovation it is bringing to the homeowners’ insurance market.” Rountree will retire at the end of this year to be replaced by Liam Caffrey, currently President and CFO.
Daniel Brand, Partner at CVC, added: “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.”
The United States Insurtech market stands at $50.2 billion in 2025 and is forecast to reach $67.36 billion by 2030.
Is WTM a Good Stock to Buy Now?
Given the lack of analysts covering WTM, let’s take a look at the stock’s technical analysis.
