Aug 5 (Reuters) – HCI Group Inc said on Thursday its unit TypTap Insurance Group had confidentially submitted plans to regulators for a U.S. initial public offering (IPO).
Founded in 2016, the insurtech firm provides homeowners and flood insurance in the United States.
TypTap in February raised $100 million from a fund affiliated with Centerbridge Partners. The investment, representing about 11.75% of TypTap, implied a post-money valuation of about $850 million for the company.
The type of valuation is a company’s estimated worth after outside financing is added to its balance sheet.
HCI did not provide any other details of the IPO.
TypTap’s move to go public comes as the COVID-19 pandemic has forced the insurance sector to rely heavily on technology, including artificial intelligence and big data, to reach customers.
Several other insurtechs have also gone public, including Oscar Health, backed by Google parent Alphabet Inc , and Lemonade Inc. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shinjini Ganguli)