White Mountains sells majority stake in insurtech Bamboo to CVC

White Mountains, a Bermuda-domiciled financial services holding company, has announced it has agreed to sell most of its ownership in Bamboo, a data-enabled insurance distribution platform, to funds advised by CVC.

The deal, which values Bamboo at $1.75 billion, is expected to generate approximately $310 to its book value per share and net cash proceeds of approximately $840 million.

While White Mountains will sell a controlling interest to CVC, it will retain an approximately 15% fully-diluted equity stake in Bamboo post-closing, worth an estimated $250 million.

“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,” said Manning Rountree, Chief Executive Officer of White Mountains.

Adding: “This transaction is a win-win for both White Mountains shareholders and Bamboo management and employees. We want to thank John and the entire Bamboo team for all of their hard work, and we look forward to continued partnership with them and CVC,” added Liam Caffrey, President and Chief Financial Officer of White Mountains.

“We are extremely gratified by the success of Bamboo during our ownership. This is a prime example of our approach to partnering with highly talented management teams in the insurance sector and supporting them with value-added resources and expertise to drive superior results for all stakeholders. We look forward to working with our new partners at CVC to support Bamboo’s next chapter of growth,” added Chris Delehanty, Head of M&A of White Mountains.

John Chu, Chief Executive Officer of Bamboo, thanked the White Mountains team for their “valuable guidance and support,” stating that the deal is the “result of years of dedication and hard work by the entire Bamboo team.”

He continued: “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.”

“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,” said Daniel Brand, Partner at CVC.

The transaction is expected to close by the end of the fourth quarter of 2025, subject to regulatory approvals and other customary closing conditions. The deal is not subject to a financing condition.