Flood Insurer Neptune Shares Climb 24% After $368 Million US IPO

Neptune Insurance Holdings Inc. shares jumped 24% after the flood insurance company’s shareholders raised $368.4 million in a US initial public offering.

Shares of the St. Petersburg, Florida-based firm closed at $24.80 each on Wednesday, versus an IPO price of $20 apiece. The offering of 18.4 million shares by backers including co-founder Jim Albert, Bregal Sagemount and FTV Capital was marketed in a range of $18 to $20 each.

The trading gives Neptune a market value of around $3.4 billion based on the outstanding shares listed in its filings. The offering drew demand for more than 20 times the available shares and more than four times just from long-only investors.

The company offers other insurers and reinsurers artificial intelligence-driven technology to profitably sell flood insurance policies, providing an alternative to the National Flood Insurance Program run by the US Federal Emergency Management Agency.

Neptune sees an opportunity in the market for flood coverage, which many property owners don’t realize they need.

“The problem is this misunderstanding that people think they have coverage and they don’t,” said Trevor Burgess, the company’s chief executive officer, in a Bloomberg interview, adding that 65% of Americans think their homeowner policy covers flood risk.

Burgess was previously the CEO of C1 Financial Inc., which was acquired by Bank OZK in 2016 for about $400 million. Burgess is set to have about 82% of the voting power in the company following the IPO. Accounts advised by T. Rowe Price Group Inc. and AllianceBernstein Holding LP had indicated an interest in buying as much as $75 million worth of shares in the offering in aggregate, the filings show.

Neptune is the sixth US-based insurance-sector company to go public this year, following firms including Slide Insurance Holdings Inc. and Aspen Insurance Holdings Ltd.

The company, which was founded in 2018, uses an AI-driven underwriting agent known as Triton to assess risks and generate a quote for customers quickly, processing over 20,000 quotes on a typical day, the filings show. Triton has provided more than 29.7 million insurance quotes as of June 30.

Neptune, which doesn’t take underwriting risk itself, posted net income of $22 million of net income on $71 million of revenue in the first six months of 2025, according to the filings. That compares to net income of $11 million on $54 million in revenue during the same period a year earlier.

Morgan Stanley, JPMorgan Chase & Co. and Bank of America Corp. led the offering, the filings show. The company’s shares trade on the New York Stock Exchange under the symbol NP.

Photo: Neptune Insurance signage during the company’s IPO at the New York Stock Exchange on Oct. 1. (Michael Nagle/Bloomberg)

George McKay and Anthony Hughes authored this report.