T. Rowe Price Commits $75 Million as Cornerstone Investor in Neptune Flood IPO

T. Rowe Price Investment Management accounts are positioned to acquire $75 million worth of Neptune Insurance Holdings shares as the St. Petersburg-based flood insurer prepares for its initial public offering. This substantial commitment establishes T. Rowe Price as a cornerstone investor alongside Alliance Bernstein, which has matching plans to purchase $75 million in Class A shares. The dual investments from these major financial institutions provide significant validation for Neptune Flood's business model and market position.

According to company filings, Neptune Flood expects to price its shares between $18 and $20 per share, potentially valuing the company at $2.76 billion at the upper end of the range. The IPO involves existing shareholders selling 18.4 million shares, generating gross proceeds of up to $368 million. Selling stockholders include Neptune co-founder Jim Albert, private equity firms Bregal Sagemount and FTV Capital. CEO Trevor Burgess, who acquired controlling stake in 2018 and assumed leadership in 2019, will maintain voting power over 80% following the public offering.

Neptune Flood's journey to public markets follows a relatively modest funding history, having raised only $12.6 million over three rounds prior to its IPO. The company's largest previous round was a $10 million Series A in March 2023. Under Burgess's leadership, Neptune has pursued strategic acquisitions including Jumpstart, a parametric insurance company purchased in 2021, and Charles River Data in 2024 to strengthen its data science, AI, and machine learning capabilities. These acquisitions demonstrate the company's commitment to technological innovation in insurance underwriting and risk assessment.

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 at over $100 billion and serves more than 235,000 customers. The company's financial performance shows strong growth, with 2024 revenue reaching $119.3 million and net income of $34.6 million. Neptune 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.

T. Rowe Price's investment in Neptune Flood continues the asset manager's pattern of strategic portfolio investments, which includes recent participation in PsiQuantum's $1 billion Series E round and investments in companies such as Galvanize Therapeutics, AI startup Anthropic, and defense firm Anduril Industries. The Baltimore-based investment giant manages $1.7 trillion in assets and has made over 300 portfolio investments with more than 100 exits. Earlier this year, T. Rowe Price entered a strategic partnership with Goldman Sachs, where Goldman will invest up to $1 billion in T. Rowe Price stock with the goal of owning up to 3.5% of the fund giant.

Neptune Flood has applied to list on the NYSE under the symbol "NP," marking a significant milestone for the specialized insurance provider. The successful IPO and substantial institutional backing from firms like T. Rowe Price and Alliance Bernstein could signal growing investor confidence in the flood insurance sector, particularly as climate change increases the frequency and severity of flood events nationwide. The public offering provides Neptune with additional capital to expand its technological capabilities and market reach while offering investors exposure to a specialized segment of the property insurance market that addresses growing climate-related risks.