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Bamboo Insurance and Sutton National Announce Reinsurance Program Renewal

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Bamboo Insurance, a subsidiary of White Mountains Insurance Group (NYSE: WTM), and Sutton National have announced the successful renewal of their reinsurance program. The renewal includes two key components:

1. Greengrove Re issued a $100 million catastrophe bond with a 7.75% spread and 1.44% initial base expected loss, maturing April 7th, 2028. The offering exceeded its initial $75 million target by 33%.

2. Greenshoots Re issued $70 million in preference shares for a sidecar transaction backed by institutional investors.

These transactions provide protection against fire and fire following earthquake for California homeowners' business, offering both catastrophe excess of loss and quota share capacity through capital markets. The successful placement, particularly following recent Los Angeles wildfires, demonstrates investor confidence in Bamboo's risk management approach.

Bamboo Insurance, una sussidiaria di White Mountains Insurance Group (NYSE: WTM), e Sutton National hanno annunciato il rinnovo con successo del loro programma di riassicurazione. Il rinnovo include due componenti chiave:

1. Greengrove Re ha emesso un'obbligazione catastrofale da 100 milioni di dollari con uno spread del 7,75% e una perdita iniziale attesa del 1,44%, con scadenza il 7 aprile 2028. L'offerta ha superato il suo obiettivo iniziale di 75 milioni di dollari del 33%.

2. Greenshoots Re ha emesso 70 milioni di dollari in azioni privilegiate per una transazione sidecar sostenuta da investitori istituzionali.

Queste transazioni offrono protezione contro incendi e incendi seguiti da terremoti per le attivit脿 dei proprietari di casa in California, offrendo sia capacit脿 di eccesso di perdita catastrofica che quota parte attraverso i mercati dei capitali. Il collocamento di successo, in particolare dopo i recenti incendi boschivi di Los Angeles, dimostra la fiducia degli investitori nell'approccio di gestione del rischio di Bamboo.

Bamboo Insurance, una subsidiaria de White Mountains Insurance Group (NYSE: WTM), y Sutton National han anunciado la exitosa renovaci贸n de su programa de reaseguro. La renovaci贸n incluye dos componentes clave:

1. Greengrove Re emiti贸 un bono catastr贸fico de 100 millones de d贸lares con un margen del 7,75% y una p茅rdida base esperada inicial del 1,44%, con vencimiento el 7 de abril de 2028. La oferta super贸 su objetivo inicial de 75 millones de d贸lares en un 33%.

2. Greenshoots Re emiti贸 70 millones de d贸lares en acciones preferentes para una transacci贸n sidecar respaldada por inversores institucionales.

Estas transacciones proporcionan protecci贸n contra incendios e incendios posteriores a terremotos para las actividades de los propietarios de viviendas en California, ofreciendo tanto capacidad de exceso de p茅rdida catastr贸fica como cuota parte a trav茅s de los mercados de capitales. El exitoso placement, particularmente despu茅s de los recientes incendios forestales en Los 脕ngeles, demuestra la confianza de los inversores en el enfoque de gesti贸n de riesgos de Bamboo.

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2. Greenshoots Re電� 旮瓣磤 韴瀽鞛愲摛鞐� 鞚橅暣 歆鞗愲悩電� 靷澊霌滌勾 瓯半灅毳� 鞙勴暣 7觳滊 雼煬鞚� 鞖办劆欤茧ゼ 氚滍枆頄堨姷雼堧嫟.

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Bamboo Insurance, une filiale de White Mountains Insurance Group (NYSE: WTM), et Sutton National ont annonc茅 le renouvellement r茅ussi de leur programme de r茅assurance. Le renouvellement comprend deux composants cl茅s :

1. Greengrove Re a 茅mis une obligation catastrophe de 100 millions de dollars avec un 茅cart de 7,75 % et une perte initiale attendue de 1,44 %, arrivant 脿 茅ch茅ance le 7 avril 2028. L'offre a d茅pass茅 son objectif initial de 75 millions de dollars de 33 %.

2. Greenshoots Re a 茅mis 70 millions de dollars en actions pr茅f茅rentielles pour une transaction sidecar soutenue par des investisseurs institutionnels.

Ces transactions offrent une protection contre les incendies et les incendies suite 脿 des tremblements de terre pour les entreprises des propri茅taires de maison en Californie, offrant 脿 la fois une capacit茅 d'exc猫s de perte catastrophe et de quota part 脿 travers les march茅s de capitaux. Le placement r茅ussi, en particulier apr猫s les r茅cents incendies de for锚t 脿 Los Angeles, d茅montre la confiance des investisseurs dans l'approche de gestion des risques de Bamboo.

Bamboo Insurance, eine Tochtergesellschaft der White Mountains Insurance Group (NYSE: WTM), und Sutton National haben die erfolgreiche Erneuerung ihres R眉ckversicherungsprogramms bekannt gegeben. Die Erneuerung umfasst zwei wesentliche Komponenten:

1. Greengrove Re hat eine Katastrophenanleihe in H枚he von 100 Millionen Dollar mit einer Spread von 7,75% und einem anf盲nglichen Basisverlust von 1,44% ausgegeben, die am 7. April 2028 f盲llig wird. Das Angebot 眉berstieg das anf盲ngliche Ziel von 75 Millionen Dollar um 33%.

2. Greenshoots Re hat 70 Millionen Dollar an Vorzugsaktien f眉r eine Sidecar-Transaktion ausgegeben, die von institutionellen Investoren unterst眉tzt wird.

Diese Transaktionen bieten Schutz gegen Feuer und Feuer nach Erdbeben f眉r die Gesch盲fte von Hausbesitzern in Kalifornien und bieten sowohl Katastrophen-Excess-Loss- als auch Quotenanteil-Kapazit盲ten 眉ber die Kapitalm盲rkte. Der erfolgreiche Platzierungsprozess, insbesondere nach den j眉ngsten Waldbr盲nden in Los Angeles, zeigt das Vertrauen der Investoren in den Risikomanagementansatz von Bamboo.

Positive
  • Successful 33% upsize of catastrophe bond to $100M from initial $75M target
  • Favorable pricing achieved at lower end of guidance range
  • Strong investor support despite recent Los Angeles wildfires
  • Additional $70M raised through sidecar transaction
Negative
  • None.

Insights

The renewal of Bamboo Insurance's reinsurance program represents a significant risk management achievement for White Mountains' subsidiary. The program includes two notable capital market transactions: a $100 million catastrophe bond (upsized 33% from initial targets) and a $70 million sidecar transaction.

The catastrophe bond's pricing at 7.75% spread (at the lower end of initial guidance) indicates strong investor demand despite recent Los Angeles wildfires - a positive market validation of Bamboo's underwriting approach and risk management practices. The three-year term provides medium-term stability in their reinsurance structure.

These transactions serve dual strategic purposes: diversifying reinsurance capital sources beyond traditional markets and strengthening the partnership between Bamboo and Sutton National in the challenging California homeowners market. The combination of catastrophe excess-of-loss protection against fire/earthquake risks and quota share capacity creates a more resilient risk transfer framework.

Most notably, this marks Bamboo's inaugural catastrophe bond and sidecar issuance, establishing new capital market relationships that could prove valuable as the company continues navigating California's catastrophe-exposed property market. The successful execution despite recent wildfire activity demonstrates investor confidence in Bamboo's catastrophe risk management capabilities.

MIDVALE, Utah, April 8, 2025 /PRNewswire/ -- Sutton Specialty Insurance Company and Sutton National Insurance Company (together "Sutton National") and Bamboo Ide8 Insurance Services, LLC. ("Bamboo"), a subsidiary of White Mountains Insurance Group, Ltd. (NYSE: WTM), announced the renewal of Bamboo's reinsurance program, which included the successful closing of the Greengrove Re Ltd. Series 2025-1 catastrophe bond and the execution and funding of the Greenshoots Re Ltd. Series 2025-1 sidecar transaction.

"These transactions will strengthen our ability to jointly address the coverage needs of California homeowners..."

Greengrove Re Ltd.
Greengrove Re Ltd. issued a $100 million catastrophe bond with a spread of 7.75%, an initial base expected loss of 1.44% and an indemnity trigger over a three-year term with a scheduled maturity date of April 7th, 2028. The offering reflects a 33% upsize from the initial $75 million placement target, with the final spread priced at the lower end of the initial price guidance of 7.50% to 8.50%.

As part of the transaction, Sutton National entered into a catastrophe excess of loss reinsurance contract with Greengrove Re Ltd., which offers protection against fire and fire following earthquake for business written by Bamboo on behalf of Sutton National and provides both parties with a diversified source of catastrophe excess of loss capacity through the capital markets.

Greenshoots Re Ltd.
Greenshoots Re Ltd. issued $70 million of preference shares for a sidecar transaction supported by several institutional investors.

As part of the transaction, Sutton National entered into a quota share reinsurance contract with Greenshoots Re Ltd., which enables participation in the underwriting results of Bamboo's business written on behalf of Sutton National and provides both parties with a diversified source of quota share capacity through the capital markets.

"These transactions are another milestone in Bamboo's history and in its partnership with Sutton National," said John Chu, CEO of Bamboo. "These transactions will strengthen our ability to jointly address the coverage needs of California homeowners and are a validation of Bamboo's business model, approach to catastrophe risk management, and ability to construct a portfolio which capital markets investors understand and appreciate. We are truly appreciative of investor's support for our inaugural catastrophe bond and sidecar transactions."

"The catastrophe bond and the sidecar are an essential part of our reinsurance structure and complement a catastrophe excess of loss tower and quota share panel backed by industry-leading reinsurers," said Shane Haverstick, CEO of Sutton National. "We are pleased to have successfully sponsored our first catastrophe bond and sidecar, and done so in partnership with Bamboo, our valued partner in the California homeowners' market. We are grateful for the strong investor support across both transactions."

GC Securities, a division of MMC Securities LLC, acted as the sole structuring agent and bookrunner for the catastrophe bond and the sole structuring agent and sole placement agent for the sidecar. Willkie Farr & Gallagher LLP served as deal counsel for both transactions.

"We're proud to have supported Sutton National and Bamboo's inaugural catastrophe bond and sidecar issuance," said Liam Martens, Managing Director of GC Securities. "We are very pleased that investors strongly supported these transactions following the recent Los Angeles wildfires, which we believe reflects a recognition of Bamboo's unique business model and sound approach to catastrophe risk management. We are grateful to both the Bamboo and Sutton National teams for their partnership and their collective effort and expertise in executing these transactions."

MEDIA CONTACT:
Tess Shoe
Sr. Communications Manager | Bamboo Insurance
[email protected]

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SOURCE Bamboo Insurance

FAQ

What is the size and terms of WTM's Greengrove Re catastrophe bond issued in April 2025?

The Greengrove Re catastrophe bond is $100 million with a 7.75% spread, 1.44% initial base expected loss, and 3-year term maturing April 7th, 2028.

How much did Greenshoots Re raise in its 2025 sidecar transaction for WTM's subsidiary?

Greenshoots Re raised $70 million through preference shares issuance in its sidecar transaction.

What type of insurance protection does the 2025 Greengrove Re catastrophe bond provide?

The bond provides protection against fire and fire following earthquake for California homeowners' business written by Bamboo on behalf of Sutton National.

How did the final Greengrove Re catastrophe bond pricing compare to initial guidance?

The final spread of 7.75% was priced at the lower end of the initial price guidance range of 7.50% to 8.50%.
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