American Family to buy remaining stake in specialty insurer Bowhead in $1.2 billion deal
BOW•American Family to acquire remaining Bowhead stake
Aug. 3 (Reuters) - American Family Mutual Insurance Company will buy the remaining stake it does not already own in Bowhead Specialty BOW.N in an all-cash deal, valuing the specialty insurer at $1.2 billion.
Bowhead shareholders will receive $34 per share in cash for each share held, representing an 11% premium to the stock's last close, the firm said on Monday.
Shares of New York-based Bowhead jumped 9.5% in premarket trading. The stock has risen 7% for the year through the last close.
The two firms have a long-standing relationship, with American Family making a founding investment in Bowhead in 2020.
"Bowhead's capabilities complement American Family's strategy to diversify its commercial portfolio, broaden product offerings," American Family CEO Bill Westrate said.
Bowhead, whose name is inspired by bowhead whales - the longest-living mammals on earth - went public in New York in 2024 after an initial public offering at $17 per share.
American Family, a minority stockholder in Bowhead, will fund the purchase through cash and other liquid investments on hand. The transaction is targeted to close prior to the end of 2026.
Bowhead, which provides casualty, professional liability and healthcare liability insurance products, will operate as a standalone entity within the American Family platform and industry veteran Stephen Sills will remain the CEO.
Ardea Partners served as exclusive financial adviser to Bowhead.
