TypTap Insurance Group, a Florida-based homeowners insurance provider being spun out of HCI Group, filed on Monday with the SEC to raise up to $100 million in an initial public offering.
TypTap states that it is a rapidly growing technology-driven insurance company that leverages extensive data and AI-enabled analytics to better select and price homeowners insurance risk. TypTap's business was incubated in 2016 as a subsidiary of HCI Group (NYSE: HCI), and the company chose to develop and test its underwriting technology in Florida. Since then, the company has begun to execute on a national growth strategy and is writing policies in seven states as of October 2021. TypTap's in-force premiums exceeded $214 million by September 2021, and its gross loss ratios were below 50% in 2018-2020.
The Tampa, FL-based company was founded in 2016 and booked $95 million in revenue for the 12 months ended September 30, 2021. It plans to list on the NYSE under the symbol TYTP. TypTap Insurance Group filed confidentially on August 3, 2021. JMP Securities, Truist Securities, and Oppenheimer & Co. are the joint bookrunners on the deal. No pricing terms were disclosed.
