Bowhead Specialty Holdings said American Family Mutual Insurance Company, S.I. agreed to acquire all Bowhead common stock it doesn’t already own in an all-cash transaction valued at about $1.2 bn.
Under the agreement, Bowhead stockholders will receive $34.00 per share in cash. The price represents an 11% premium to Bowhead’s closing share price on July 31, 2026.
The deal deepens an existing relationship between the companies. American Family has been a minority stockholder and strategic partner of Bowhead since its founding investment in 2020.
Matthew Botein, chairman of Bowhead’s board, said the transaction recognizes the strength of the Bowhead franchise and extends its strategic relationship with American Family. He said the companies built their partnership around shared values, underwriting discipline and long-term value for policyholders and other stakeholders.
Botein also thanked Bowhead’s management team and employees, saying their work built the company into the business American Family now plans to bring fully onto its platform.
Stephen Sills, Bowhead’s CEO and president, said American Family’s support helped Bowhead develop since its founding. He said American Family understands Bowhead’s business, culture and underwriting discipline, and he expects the transaction to deliver strong value to stockholders.
The combination brings together two organizations with a long operating relationship and a shared focus on disciplined underwriting. He said Bowhead will continue working for insureds, distribution partners and employees under American Family ownership.
Bill Westrate, chair and CEO of American Family, said Bowhead’s commercial specialty capabilities fit American Family’s strategy. He said the acquisition will help diversify its commercial portfolio, broaden product offerings, improve capital efficiency and support profitable growth.
Bowhead’s board of directors approved the transaction.
The companies expect the deal to close before the end of 2026, subject to customary closing conditions, required regulatory approvals and Bowhead stockholder approval.
American Family will fund the purchase with cash and other liquid investments on hand. The transaction has no financing condition.
After closing, Bowhead will operate as a standalone entity within the American Family platform. Sills will remain CEO and president of Bowhead, and the company will keep the Bowhead name and brand.
Ardea Partners LP serves as exclusive financial advisor to Bowhead. Skadden, Arps, Slate, Meagher & Flom LLP serves as legal advisor.
