HCI Group, Inc. announced that its InsurTech subsidiary, TypTap Insurance Group, Inc., a Florida-based writer of private market homeowners and flood insurance, has confidentially submitted a draft registration statement for a proposed initial public offering with the Securities and Exchange Commission.
The size and price range for the proposed offering have not yet been determined. The IPO is expected to take place after the completion of the SEC review process, subject to market and other conditions. There is no assurance that the IPO will be completed.
TypTap was launched in 2016 as a Florida private flood insurance alternative to the federal government’s flood insurance plan. Its website says it also writes flood in Maryland, Pennsylvania, New Jersey and South Carolina.
In 2018, TypTap expanded into homeowners insurance in Florida. It reported that it hit the $100 million mark in homeowners premiums in 2020.
TypTap has been expanding with the help of $100 million in financing from investment firm Centerbridge Partners it received in March. Centerbridge’s investment reflects about 11.75 percent of TypTap, based on post-money valuation for the company of about $850 million.
“We will immediately begin preparing TypTap for future growth,” Paresh Patel, CEO of HCI and TypTap, said at that time.
The insurer, which plans to go national, has already obtained regulatory approval to write homeowners business in 12 states outside Florida: New Mexico, Utah, Nevada, South Carolina, Mississippi, Indiana, West Virginia, Michigan, Montana, South Dakota, Massachusetts and Connecticut.
The company uses an online platform to quickly quote and bind policies. Algorithms and artificial intelligence drive the platform, which the company said helps identify policies that deliver profitable results while mitigating risk..
Despite TypTap falling under the InsurTech umbrella, Patel said the company is “very agent friendly.” Currently, 90% of TypTap’s business is sold by agents through the TypTap website.
*This story ran previously in our sister publication Insurance Journal.