European private equity firm CVC has agreed to acquire a controlling stake in Bamboo, a fast-growing US homeowners’ insurance agency, from White Mountains Insurance Group in a transaction valuing the business at $1.75bn, according to a report by Reuters.
The deal marks a significant return for White Mountains, which invested just under $300m to acquire its majority interest in Bamboo in early 2024. Since then, Bamboo has scaled rapidly, with managed premiums more than doubling to $484m last year as it expanded beyond California into new markets such as Texas.
Under the terms of the agreement, White Mountains will receive around $840m in net cash proceeds and retain a 15% fully diluted equity stake in Bamboo, valued at roughly $250m. The company also expects to record a gain of about $310 per share in book value from the transaction.
Founded in 2018 by John Chu, Bamboo emerged in response to growing gaps in California’s homeowners’ insurance market, as large national carriers pulled back due to repeated wildfire losses. The company has since broadened its offering and geographic reach, making it an attractive platform investment for CVC.
The deal, advised by Evercore Group and Piper Sandler, is expected to close by year-end.
