T. Rowe Price Investment Management and Alliance Bernstein are set to anchor the initial public offering of Neptune Insurance Holdings, with each firm planning to purchase $75 million in Class A shares. The St. Petersburg, Fla.-based flood insurer, which operates as Neptune Flood, expects to price its shares between $18 and $20, potentially valuing the company at up to $2.76 billion. The IPO consists entirely of existing shareholders selling 18.4 million shares, with gross proceeds of up to $368 million.
Neptune Flood, founded in 2016, has grown to become the largest private flood insurance provider in the United States, operating in all 50 states and the District of Columbia. The company has insured property valued at over $100 billion and serves more than 235,000 customers. In 2024, Neptune reported $119.3 million in revenue and $34.6 million in net income. The company has secured $400 million in premium capacity for 2025, up from $300 million in 2024, backed by over 30 global reinsurance and specialty market partners.
T. Rowe Price's involvement underscores its strategic focus on high-growth opportunities. The Baltimore-based investment giant, which had $1.7 trillion in assets under management as of July 31, has made over 300 portfolio investments. Its recent investments include PsiQuantum, Anthropic, Anduril Industries, and Ramp. Earlier this year, T. Rowe Price entered a strategic partnership with Goldman Sachs, which plans to invest up to $1 billion in T. Rowe Price's stock. The collaboration aims to leverage T. Rowe Price's investing expertise with Goldman's innovation in private and public markets.
Neptune's CEO Trevor Burgess, a former bank executive, took control of the company in 2018 and led acquisitions of Jumpstart, a parametric insurance company, in 2021, and Charles River Data in 2024 to enhance data science and AI capabilities. Existing shareholders selling in the IPO include co-founder Jim Albert, Bregal Sagemount, and FTV Capital. Burgess will retain voting power over 80% of shares after the IPO.
The IPO is expected to trade on the NYSE under the symbol "NP." The strong backing from institutional investors like T. Rowe Price and Alliance Bernstein highlights the growing importance of private flood insurance in a market increasingly affected by climate change and rising flood risks.
