White Mountains Insurance announced on Friday that it will sell a controlling stake in its insurance platform, Bamboo, to European private equity firm CVC. The deal values Bamboo at $1.75 billion.
White Mountains, based in Hamilton, Bermuda, saw its shares jump nearly 11% following the news. Earlier this year, the stock had dropped 14%. The company expects to receive around $840 million in cash and add about $310 million to its book value per share from the sale.
White Mountains originally bought most of Bamboo in January 2024 for roughly $300 million. The platform was started in 2018 after several major wildfire losses in California pushed some big insurers out of the state. Bamboo focuses on homeowners’ insurance and related services, initially in California but has recently expanded into Texas and other states.
Since White Mountains took over, Bamboo’s managed premiums have more than doubled to $484 million in 2024. The private equity firm CVC seemed to be attracted by Bamboo’s rapid growth and steady revenue.
After the deal closes, expected by the end of the year, White Mountains will still own 15% of Bamboo, holding a stake valued at about $250 million.
Evercore Group and Piper Sandler served as advisers for both companies in this transaction.