HCI Group has shelved the planned U.S. initial public offering (IPO) of its Florida insurtech subsidiary, TypTap Insurance Company, in light of current market conditions.
It was announced in August last year that HCI Group had confidentially submitted a draft registration statement for a proposed IPO with the Securities and Exchange Commission (SEC).
A year earlier, HCI revealed intentions to expand TypTap nationwide and launched phase one of the growth plan in October 2020.
This saw the insurtech expand to six new states by the end of the year, before it secured a $100 million investment from private investment management firm, Centerbridge Partners, early last year.
However, parent HCI Group has postponed the IPO, citing recent market conditions as its Board of Directors determined that current market pricing for the IPO does not accurately reflect TypTap’s value.
“Our primary objective has been and will continue to be maximizing the value and opportunity of TypTap,” said Paresh Patel, HCI Chairman and Chief Executive Officer (CEO).
“We believe we have the resources to execute TypTap’s growth plan without the funds raised from an IPO. We will continue to monitor market conditions over the next several quarters and will move forward with a TypTap IPO when and if conditions are appropriate,” he continued.
