Neptune Insurance Holdings, which does business as Neptune Flood, is heading toward an initial public offering that could value the company at up to $2.76 billion. The St. Petersburg, Fla.-based flood insurer expects to price its shares between $18 and $20 per share, according to a company filing. Accounts advised by T. Rowe Price Investment Management are expected to buy $75 million of Neptune shares, while Alliance Bernstein also plans to purchase $75 million in Class A shares as a cornerstone investor.
Neptune Flood is the largest private flood insurance provider in the United States, operating in all 50 states and the District of Columbia. It has insured property valued in excess of $100 billion, writing policies for over 235,000 customers. The company reported $119.3 million in revenue and $34.6 million in net income in 2024. It has secured $400 million in premium capacity for 2025, up from $300 million in 2024, with backing from more than 30 global reinsurance and specialty market partners.
The IPO consists solely of existing shareholders selling 18.4 million shares, with gross proceeds of up to $368 million. Selling stockholders include co-founder Jim Albert, New York-based private equity firm Bregal Sagemount, and FTV Capital. CEO Trevor Burgess, previously CEO of Florida’s C1 Bank, is the major shareholder and will retain voting power over 80% after the IPO.
Founded in 2016, Neptune raised $12.6 million over three funding rounds, with a $10 million Series A round in March 2023 being the largest. Burgess assumed leadership in early 2019 after buying a controlling stake in 2018. Under his direction, Neptune made two acquisitions: Jumpstart, a parametric insurance company, in 2021, and Charles River Data in 2024 to bolster in-house data science, AI, and machine learning capabilities.
T. Rowe Price, which had $1.7 trillion in assets under management as of July 31, has made over 300 portfolio investments and exited over 100. Earlier this year, the firm struck a strategic partnership with Goldman Sachs, under which Goldman will invest up to $1 billion in T. Rowe Price’s stock, aiming to own up to 3.5% of the fund giant. The collaboration seeks to combine T. Rowe Price’s investing expertise with Goldman’s innovation in private and public markets to create new opportunities for retirement savings and wealth creation.
Neptune has applied to list on the NYSE under the symbol "NP." The offering could provide significant liquidity for early investors and underscore the growing market for private flood insurance as climate risks increase.
