Neptune Insurance Holdings Plans $349.60 million IPO for October 1st (NP)

Neptune Insurance Holdings (NP) plans to raise $349.60 million in an IPO on Wednesday, October 1st, IPO Scoop reports. The company plans to issue 18,400,000 shares at a price of $18.00-$20.00 per share.

In the last twelve months, Neptune Insurance Holdings generated $136.74 million in revenue and $45.26 million in net income. The company has a market cap of $2.62 billion.

Morgan Stanley, J.P.Morgan, BofA Securities, BMO Capitall Markets, Goldman Sachs, Evercore ISI, Deutsche Bank Securities, Keefe, Bruyette & Woods (A Stifel Company) Mizuho, Piper Sandler, Raymond James and TD Securities served as the underwriters for the IPO and Dowling & Partners Securities was co-manager.

Neptune Insurance Holdings provided the following description of their company for its IPO: “(Incorporated in Delaware) Our mission is to create a smarter, more resilient insurance platform powered by AI, data science, and technology, enabling insurers to deploy capacity with confidence and delivering instant access to coverage for policyholders and agents. Company Background Neptune is a leading, high-growth, highly profitable, data-driven managing general agent that is revolutionizing the way homeowners and businesses protect against the growing risks of flooding. We offer a range of easy-to-purchase residential and commercial insurance products — including primary flood insurance, excess flood insurance, and parametric earthquake insurance — distributed through a nationwide network of agencies. Neptune does not take any balance sheet insurance risk or have claims handling responsibility relating to the policies we sell. We underwrite and administer the issuance of insurance policies on behalf of a diverse panel of insurance and reinsurance companies, whom we refer to as capacity providers, that manage both this risk and the associated claims handling. From day one, we have built our business on a foundation of advanced data science and AI, leveraging proprietary ML algorithms, which has led to superior underwriting results, outsized growth, recurring revenue, and robust margins, including delivering a lifetime written loss ratio of just 24.7% to our capacity providers from our inception through June 30, 2025. In addition, for the year ended December 31, 2024, we achieved 40.6% organic revenue growth, 29.0% net income margin, and 60.4% Adjusted EBITDA margin and for the six months ended June 30, 2025, we achieved 32.3% organic revenue growth, 30.2% net income margin and 59.3% Adjusted EBITDA margin. Neptune was founded to solve the inefficiencies and poor product-market fit we saw in the traditional flood insurance market, which we believe represents a significant and underpenetrated opportunity. According to the American Housing Survey and the Energy Information Administration, there are over 100 million residential and commercial buildings in the U.S., many of which face flood risk, yet only a small fraction are covered by flood insurance. Today, the largest provider of flood insurance in the United States — and the holder of the majority market share — is the National Flood Insurance Program, a U.S. government-run entity and our main competitor. We believe purchasing insurance from the NFIP is relatively burdensome and time-consuming for policyholders and agents, and that its limited product offerings often fail to meet policyholder needs. In addition, the NFIP has historically received substantial government subsidies that have enabled it to limit premiums to rates that have been challenging for private flood insurance providers to compete with, a dynamic that is shifting with the NFIP’s recent introduction of its “Risk Rating 2.0” pricing model, discussed in more detail below. Private market participation has also historically been constrained by regulatory barriers, a lack of innovation expertise, and limited access to sufficient claims and performance data to optimize pricing and underwriting decisions. We believe that Neptune’s position as the first scaled private flood platform, including the years of claims and performance data that we have generated through our operations, provides a key early-mover advantage in addressing all of these challenges and disrupting the industry. With Neptune’s use of AI, our technology platform, and our data-driven approach, we believe we have delivered the promise of disrupting the insurance industry. Not only have our innovation efforts delivered vastly improved policyholder and agent experiences through the ease-of-use of our proprietary underwriting (Triton) and policy management (Poseidon) platforms, we have also demonstrated superior risk selection and underwriting through our top-tier financial performance and sustained growth. Utilizing AI and ML algorithms with no human underwriters, Neptune has redefined how flood insurance can be underwritten, creating value for policyholders and agents while producing consistent, long-term positive returns for our insurance and reinsurance partners. Note: Net income and revenues are for the 12 months that ended June 30, 2025. (Note: Neptune Insurance Holdings disclosed the terms for its IPO on Sept. 22, 2025, in an S-1/A filing: The selling stockholders are offering 18.42 million shares at a price range of $18.00 to $20.00 to raise $349.98 million, if the IPO is priced at the $19.00 mid-point of its range. Background: Neptune Insurance Holdings filed its S-1, without disclosing the IPO’s terms, on Sept. 3, 2025.)  “.

Neptune Insurance Holdings was founded in 2017 and has 60 employees. The company is located at 400 6th Street S, Suite 2 St. Petersburg, Florida 33701 and can be reached via phone at (727) 202-4815 or on the web at http://www.neptuneflood.com/.