Reuters: IPOX® VP Kat Liu Highlights Insurance Sector Resilience in Bamboo Insurance IPO

Reuters reports that CVC-backed Bamboo Insurance Services is targeting a fully diluted valuation of up to $3.24 billion in its U.S. IPO. Selling shareholders are seeking to raise as much as $700 million through the offering of 35 million shares priced between $18 and $20 each. The company plans to list on the New York Stock Exchange under the ticker “BMB.”

The article notes that the broader fall IPO season has begun more slowly than a year ago amid volatility tied to rising oil prices and inflation. Insurance IPO activity, however, remains relatively strong, with several recent listings performing well in the aftermarket. IPOX® Vice President Kat Liu highlighted the sector’s recurring revenue and resilient demand as factors supporting investor interest in the current environment.

“I think part of that reflects the operating environment for the insurance industry. Recurring revenue and relatively resilient demand are attractive characteristics in the current volatile market,” said IPOX® Vice President Kat Liu.

Reuters also examines Bamboo’s managing general underwriter model, under which the company underwrites and distributes policies on behalf of insurance carriers that ultimately bear claims risk. Liu noted the corresponding dependence on external insurance capacity: “The trade-off is that this creates a different type of risk. The business becomes more dependent on its relationships with insurance carriers and other capacity providers.”

Read the full article by Pragyan Kalita and Pritam Biswas on Reuters: CVC-backed Bamboo Insurance targets $3.24 billion valuation in US IPO