Insurtech Accelerant is planning to raise new capital in 2024 in a deal that could result in the firm making its debut on the stock market, its CEO and co-founder reportedly told Reuters.
Accelerant Chief Executive Jeff Radke disclosed to Reuters that the firm raised $150 million in December from investors to fund the rollout of an insurance exchange, valuing it at $2.4 billion.
Accelerant anticipates the cash to carry it into 2024, although the timeline may be brought forward if “growth opportunities come about”, Radke explained.
According to Radke, the firm is weighing whether to secure the extra funds through a private share sale or an initial public offering (IPO) in New York, though he did give a specific fundraising target.
No final decisions have been made, and banks have not yet been formally appointed to structure a deal, he added.
The company’s institutional shareholders did not reply to Reuters’ requests for comment, though Radke did note the group is on track to post around $2 billion of insurance premiums this year and positive earnings before interest, tax, depreciation and amortization (EBITDA).
In related news, speaking with Reinsurance News in March, Heather Wentworth, Chief Data Officer at Accelerant, suggested that the insurance industry as a whole is not “making enough progress” to get the data needed to successfully use artificial intelligence (AI) technology — which she argues will be transformative for the ecosystem.
