White Mountains enters $1.75bn deal to divest Bamboo

Core Viewpoint - White Mountains Insurance Group has agreed to sell a controlling stake in Bamboo, an insurance distribution platform, to CVC Capital Partners for $1.75 billion, focusing on the residential property market in California and Texas [1][4]. Group 1: Transaction Details - The deal is valued at $1.75 billion (€1.5 billion) and is expected to close by the end of the fourth quarter of 2025, pending regulatory approvals [1][4]. - White Mountains will retain approximately a 15% equity interest in Bamboo, which is valued at $250 million based on the sale price [4]. - The transaction is not contingent upon financing [5]. Group 2: Financial Implications - The sale is projected to yield White Mountains a gain of around $310 per share in book value and net cash proceeds of approximately $840 million [3]. - The transaction is described as beneficial for both White Mountains shareholders and Bamboo management and employees [4]. Group 3: Bamboo's Operations - Bamboo operates as a data-driven platform with a focus on the residential property market and encompasses a managing general agent business that includes product development, underwriting, marketing, policy issuance, and claims management [2]. - Additionally, Bamboo runs a retail agency providing third-party ancillary products and a captive reinsurer to share underwriting risk with its reinsurance partners [2].