Key facts
- American Family Mutual Insurance Company is acquiring Bowhead Specialty.
- The deal is an all-cash transaction valued at $1.2 billion.
- Bowhead shareholders will receive $34.00 per share.
- The acquisition represents an 11% premium over Bowhead's closing share price on July 31, 2026.
- The transaction is expected to close by the end of 2026, pending approvals.
American Family Mutual Insurance Company has agreed to acquire specialty insurer Bowhead Specialty Holdings Inc. in an all-cash transaction valued at approximately $1.2 billion. The deal, announced on Monday, will see Bowhead stockholders receive $34.00 per share in cash, representing an 11% premium over Bowhead's closing share price on July 31, 2026.
Bowhead's board of directors has approved the transaction, which is anticipated to close before the end of 2026, subject to regulatory and stockholder approvals. American Family, which has been a minority stockholder and strategic partner of Bowhead since 2020, stated that the acquisition aligns with its strategy to diversify its commercial portfolio and enhance capital efficiency.
Bowhead reported its second quarter 2026 financial results, showing gross written premiums increased by 28.2% to $297.9 million and net income was $16.1 million, or $0.48 per diluted share. Following the merger announcement, Bowhead cancelled its previously scheduled conference call to discuss these results.