American Family to Acquire Bowhead Specialty in $1.2B Cash Deal

American Family Mutual Insurance Co. has agreed to buy all outstanding shares of specialty insurer Bowhead Specialty Holdings Inc. for about $1.2 billion in cash.

Under the terms of the transaction, each Bowhead stockholder will receive $34 per share in cash, representing an 11% premium to Bowhead’s closing share price on July 31, 2026. The transaction is targeted to close prior to the end of 2026. Bowhead’s board approved the transaction, said the company.

New York-based Bowhead Specialty Underwriters is managing general agency and an affiliate of Madison, Wisconsin-based American Family Insurance. It offers products through American Family Insurance on an admitted and surplus lines basis.

American Family owns about 14.3% of Bowhead’s issued and outstanding common stock as of December 31, 2025, according to a recent filing with the U.S. Securities and Exchange Commission.

“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,” said Bowhead CEO and President Stephen Sills, in a statement. “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.”