Neptune Flood Insurance Prepares for $2.76 Billion IPO with Major Institutional Backing

Neptune Insurance Holdings, operating as Neptune Flood, is proceeding with an initial public offering that could value the St. Petersburg-based flood insurance provider at up to $2.76 billion. Investment accounts advised by T. Rowe Price Investment Management are expected to purchase $75 million of Neptune shares as cornerstone investors in the offering, matching the commitment from AllianceBernstein, which also plans to buy $75 million in Class A shares.

The company expects to price its shares between $18 and $20 per share, according to regulatory filings. At the top of this range, Neptune would achieve a substantial market valuation that reflects the growing importance of private flood insurance in the United States. The IPO involves only existing shareholders selling a total of 18.4 million shares, generating gross proceeds of up to $368 million without raising new capital for the company itself.

Among the selling stockholders are Neptune co-founder Jim Albert, private equity firm Bregal Sagemount, and FTV Capital. CEO Trevor Burgess, who previously led Florida's C1 Bank, will maintain voting power over 80% of the company following the public offering. Burgess assumed leadership in early 2019 after acquiring a controlling stake in 2018 and has since guided the company through significant growth and strategic acquisitions.

Neptune's journey to public markets follows relatively modest private funding rounds totaling $12.6 million over three rounds, with the largest being a $10 million Series A in March 2023. Under Burgess's leadership, the company has made strategic acquisitions including Jumpstart, a parametric insurance company purchased in 2021, and Charles River Data in 2024 to enhance in-house data science, artificial intelligence, and machine learning capabilities. These technological investments position Neptune at the forefront of insurance innovation.

The company has established itself as the largest private flood insurance provider in the United States, operating in all 50 states and the District of Columbia through partnerships with AM Best-rated insurance companies. Neptune has insured property valued in excess of $100 billion and serves more than 235,000 customers, demonstrating the significant market demand for private flood insurance alternatives.

Financial performance has been strong, with Neptune reporting $119.3 million in revenue and $34.6 million in net income for 2024. The company has secured $400 million in premium capacity for 2025, up from $300 million in 2024, supported by more than 30 global reinsurance and specialty market partners. This expanded capacity indicates growing confidence in Neptune's business model and underwriting capabilities within the broader insurance industry.

T. Rowe Price's participation as a cornerstone investor follows recent strategic moves by the Baltimore-based investment firm, which managed $1.7 trillion in assets as of July 31. The firm has made over 300 portfolio investments and exited more than 100, demonstrating extensive experience in identifying promising investment opportunities. Earlier this year, T. Rowe Price established a strategic partnership with Goldman Sachs, where Goldman will invest up to $1 billion in T. Rowe Price's stock with a goal of owning up to 3.5% of the fund giant.

Neptune has applied to list on the New York Stock Exchange under the symbol "NP," marking a significant milestone for the seven-year-old company. The successful IPO could potentially reshape the competitive landscape of the flood insurance market, providing homeowners and businesses with increased options beyond traditional government-backed programs. The substantial institutional backing from established financial firms signals confidence in Neptune's growth trajectory and the expanding market for private flood insurance solutions.