Bamboo Insurance Files to Sell Shares in Homeowners MGU
The capital-light manager said it will not receive proceeds from the sale of Class A common stock by selling stockholders.
Bamboo Insurance Services, Inc. filed an S-1 to sell Class A common stock in a public offering of shares already held by selling stockholders, a structure in which the company said it will not receive any proceeds from the sale.
The company described itself as an AI and technology-enabled, underwriting-first and capital-light homeowners insurance managing general underwriter. It said it manages functions across the insurance value chain, including data science and advanced analytics, underwriting and claims handling, and partners with a diversified group of highly-rated capacity providers. Bamboo said it was purpose-built for a rapidly changing U.S. homeowners insurance market and is underpinned by modern, modular technology designed for speed, scalability and adaptability.
The company said it was created to take advantage of structural shifts in the industry, including more complex risk from weather and catastrophe events and rising construction costs, a changing operating environment that has hindered legacy carriers and reduced coverage availability, growing and diversified sources of capital, the rise of MGUs and MGAs as risk origination and underwriting decouple from balance sheets, technology and AI advancements, and diversified multi-channel distribution.
Bamboo said it will bear the costs associated with the sale of shares by selling stockholders, other than underwriting discounts and commissions. Immediately following the offering, it said it expects to be a controlled company under NYSE rules because the CVC Funds, through the Blocker Shareholders, will together have more than a specified share of voting power for the election of directors, and it intends to elect not to comply with certain corporate governance requirements, including a majority-independent board and an all-independent compensation committee.