Round $285m from White Mountains is anticipated to be invested in Bamboo, an MGS targeted on California owners.
The funds will probably be used to help Bamboo’s progress and to achieve roughly 70% of shares within the agency.
Moreover, the transaction is anticipated to shut within the first quarter of 2024, topic to regulatory approvals.
Bamboo offers owners’ insurance coverage for over 100,000 California policyholders, utilizing its technology-enabled underwriting platform to pick and handle threat. Bamboo has grown profitably and quickly within the difficult California market, and is now poised to increase into different states.
“We’re happy to make this funding alongside John and the Bamboo administration staff. Bamboo is delivering a much-needed insurance coverage various to owners in California. Bamboo has robust momentum, and we sit up for supporting its continued progress,” stated Chris Delehanty, head of M&A of White Mountains.
“This transaction marks a brand new and thrilling chapter for Bamboo. We’re lucky to have discovered a like-minded capital associate who shares our imaginative and prescient and has a robust monitor document of profitable insurance coverage partnerships,” added John Chu, founder and CEO of Bamboo.
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Howden Tiger Capital Markets & Advisory acted as monetary advisor to White Mountains, whereas Cravath, Swaine & Moore supplied authorized recommendation. Evercore Group acted as monetary advisor to Bamboo and promoting equityholders, whereas Willkie Farr & Gallagher supplied authorized recommendation.
On the subject of M&A, speciality insurance coverage firm Markel has acquired a 49% stake in Certa, a UK-based tax managing basic agent (MGA).
Certa will use the proceeds to speed up product improvement and increase its geographical footprint.
With the deal, Markel hopes to achieve additional entry to long-term progress alternatives in a speciality line of enterprise.