White Mountains Insurance Group Finalizes Sale of Bamboo to CVC Capital Partners

White Mountains Insurance Group to Sell Bamboo to CVC Capital Partners

In a significant move for the insurance industry, White Mountains Insurance Group, Ltd. (NYSE: WTM) has announced that it has finalized an agreement to sell a controlling interest in Bamboo, a data-driven insurance distribution platform. This strategic sale, aimed at boosting Bamboo's growth potential, is valued at an impressive $1.75 billion and marks a pivotal moment in the residential property insurance market.

The sale was made public on October 3, 2025, with White Mountains conveying its belief that the transaction will enhance shareholder value significantly, projecting a gain of approximately $310 per share in book value and net cash proceeds estimated at around $840 million. Following the closure of the deal, White Mountains intends to retain a 15% equity stake in Bamboo, valued at about $250 million, which underscores the continuing partnership and shared vision for growth as Bamboo transitions into this new chapter.

Manning Rountree, the Chief Executive Officer of White Mountains, highlighted the fruitful partnership with Bamboo, noting its remarkable growth and innovation in the homeowners' insurance sector. He expressed gratitude for the diligent efforts of the Bamboo team and reaffirmed the company's commitment to supporting its evolution alongside CVC Capital Partners.

President and Chief Financial Officer Liam Caffrey added that the transaction creates mutual benefits for both White Mountains and Bamboo’s management and employees, emphasizing a strong foundation for future collaborations.

Bamboo, well-known for its effective use of technology in delivering homeowners' insurance products in California and Texas, has established itself as a key player within the sector. Its innovative platform not only boosts customer experience but also streamlines various aspects of the insurance process, from product development to claims management. John Chu, Bamboo’s CEO, echoed his optimism regarding the new partnership with CVC, which is expected to provide resources and support to enhance Bamboo's offerings and market presence.

As Bamboo gears up for its next phase of growth, both CVC and White Mountains are committed to ensuring its success. Daniel Brand, a Partner at CVC, emphasized the unique value proposition Bamboo presents, highlighting its high growth potential and recurring revenue model as particularly aligned with CVC's investment strategy.

Expected to conclude by the end of the fourth quarter of 2025, the deal is contingent on regulatory approvals and usual closure conditions. Meanwhile, the specifics of the transaction will be disclosed in a current report filed with the U.S. Securities and Exchange Commission.

With a robust portfolio and an evolving market landscape, White Mountains continues to navigate the complexities of financial services and insurance. Its proactive approach exemplifies the dynamic nature of the industry, fostering partnerships that promise not just profitability but also sustained innovation and growth. As they embark on this journey with CVC, stakeholders can anticipate several transformational changes in the homeowners' insurance market, driven by Bamboo’s innovative solutions and strategic vision.