White Mountains Insurance Group has entered into an agreement to acquire a majority stake in Bamboo Ide8 Insurance Services, LLC (Bamboo). The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals.
Bamboo is primarily a managing general agent focused on the California homeowners insurance market. It also operates as a captive reinsurer participating in a small share of the underwriting risk of Bamboo's MGA programmes and a retail agency offering ancillary products on behalf of third parties.
As part of the mandate, White Mountains expects to invest approximately US$285 million, including primary capital to support Bamboo's growth.
In addition, it expects to acquire approximately 70 per cent of Bamboo basic shares outstanding.
Chris Delehanty, head of mergers and acquisitions at White Mountains, comments: "We are pleased to make this investment alongside John [Chu, CEO] and the Bamboo management team. Bamboo is delivering a much-needed insurance alternative to homeowners in California.”
