Capital markets

James River’s stock price plummeted more than 30% on Thursday, after the firm sustained downgrades from equity analysts over concerns around the insurer’s E&S casualty reserves.

Broker and commercial carrier trends separate as inflation slows but rates stay elevated.

The challenging funding environment has left InsurTechs with limited options for capital raising and liquidity.

The pendulum that swung towards a focus on growth for the past few years is now swinging towards profitability and increased partnership.

The Bermudian firm said it expects the acquisition could drive more growth than the prior forecast of $2.7bn incremental premium.

In 2021, SiriusPoint acquired a “significant ownership stake” in the firm, which meant the specialty insurer and reinsurer providing multi-year capacity and paper to the ILS house.

Will this year be a repeat of a shift from “growth at all costs” to “flight to quality”, or will we see the InsurTech space bounce back in the direction of 2021 optimism?

As of 14:00 ET, the broker’s stock stood at $232.24 per share, 11.9% higher than the previous close of $207.74.

The new business unit will target firms with between $10mn and $50mn of Ebitda and will deploy up to $500mn of equity capital over time.

Sources said the PE heavyweight shelved the stake sale plans earlier this year as multiples in the adjusting segment remain under pressure.

White Mountains’ final stake could range between 62%-81% of Bamboo, and the Bermudian’s investment in connection with the deal could be around $246mn-$323mn.

Inside P&C’s morning summary of the key stories to get you up to speed fast.