American Family to acquire Bowhead Specialty
American Family Insurance has agreed to acquire the remaining shares of Bowhead Specialty that it does not already own in an all-cash deal valuing the specialty insurer at about $1.2 billion.
Under the agreement, Bowhead shareholders will receive $34 per share in cash, an 11% premium to the company’s closing price on July 31, 2026.
Founded in 2020 with backing from private equity firm Gallatin Point and American Family, Bowhead specializes in casualty, professional liability, and healthcare liability insurance for businesses. American Family owned about 14% of Bowhead’s common stock at the end of 2025.
Bowhead went public in May 2024 at a valuation of about $460 million. Since then, the company has grown to a team of about 271 employees, following a $290 million funding history.
The company has also expanded rapidly. Premium written through its MGA reached about $819 million in 2025, up from $660 million in 2024, $488 million in 2023, and $345 million in 2022. The business was supported by capacity from American Family subsidiaries Homesite Insurance Company, Homesite Insurance Company of Florida, and Midvale Indemnity Company.
After the transaction closes, Bowhead will continue to operate as a standalone company within the American Family group. Stephen Sills will remain CEO and president, and the Bowhead name and brand will remain unchanged.
“This transaction recognizes the strength of the Bowhead franchise and reinforces the strategic partnership with American Family. It also represents the natural evolution of a longstanding relationship between both companies, built on shared values, underwriting discipline, and a commitment to delivering long-term value for policyholders and other stakeholders. On behalf of the Board of Directors, I want to express our sincere gratitude to the management team and employees whose vision, dedication, and hard work have built Bowhead into the exceptional company it is today. We believe this transaction creates a strong foundation for the future while preserving the values, culture and disciplined approach to underwriting that have been central to the success of both organizations.” – Bowhead Chairman of the Board, Matthew Botein.
“Since Bowhead’s founding, we have benefited from a strong and trusting relationship with American Family, whose support and partnership have enabled us to build the company we are today. Over the years, they have developed a deep understanding of our business, our culture, and the underwriting discipline that defines Bowhead. I believe this transaction delivers compelling value to our stockholders while bringing together two organizations that share a long history, aligned values and a commitment to disciplined underwriting and long-term success. I am proud of what the Bowhead team has accomplished, and I believe this combination recognizes the strength of the Bowhead franchise while continuing to enhance our ability to create value for our insureds, distribution partners and employees. I look forward to joining American Family and continuing to lead the Bowhead franchise.” – Bowhead Chief Executive Officer and President, Stephen Sill.
“We’re pleased to welcome Bowhead’s talented team and commercial specialty capabilities to American Family. American Family’s relationship with Bowhead has continued to grow since its founding investment in 2020. As a minority stockholder and strategic partner, American Family has seen firsthand the strength of its business model, disciplined execution, and strong market position. American Family has great confidence in Bowhead’s leadership, employees and culture, and it looks forward to supporting the next phase of Bowhead’s growth. Together, we are well positioned to advance our shared long-term objectives while preserving the qualities that have made Bowhead a leader in its market. Bowhead’s capabilities complement American Family’s strategy to diversify its commercial portfolio, broaden product offerings, enhance capital efficiency and drive sustainable profitable growth.” – Bill Westrate, Chair and Chief Executive Officer of American Family.
