Aug 29 (Reuters) – CVC-backed Bamboo Insurance Services filed for a U.S. IPO on Friday, signaling renewed interest among insurers to go public in a booming market for new listings.The broader IPO market has enjoyed renewed momentum on the back of bumper listings expected in the year ahead, despite a lull at the start of the year due to a volatile market.
Founded in 2018 and led by industry veteran John Chu, Bamboo focuses on the residential property market — providing homeowners’ insurance and related products.The company bills itself as a technology firm, pointing to its use of advanced analytics to enable efficient underwriting in a challenging market for insurers due to a heightened frequency of unpredictable weather-related incidents.Bamboo, which launched in California at a time when several wildfires pushed insurers to scale back operations in the state, has grown to manage nearly $900 million in premiums.While the firm intends to retain focus on California, it is also expanding to other states. The company launched in Texas last year, saying it had seen profitable growth in the region.
White Mountains Insurance, which was a major shareholder in the firm, sold a majority stake to CVC last year, valuing the company at $1.75 billion.Bamboo reported total revenue of $173 million for the six months through June 30, compared with $124 million in the same period a year earlier. Its managed premiums have nearly doubled from $451 million.The company intends to list on the New York Stock Exchange under the symbol “BMB”. J.P. Morgan, Morgan Stanley, Deutsche Bank Securities, Evercore ISI and Wells Fargo Securities are serving as the underwriters of the offering.
Reporting by Utkarsh Shetti in Bengaluru; Editing by Vijay Kishore and Joyjeet Das.
