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In a bold move into the public markets, Neptune Insurance, a residential and commercial flood insurer based in St. Petersburg, Florida, announced Monday it is targeting a valuation of $2.76 billion in its upcoming initial public offering. The offering, advised by Orrick Herrington & Sutcliffe LLP and Davis Polk & Wardwell LLP, could raise as much as $368.4 million next week.

The IPO would see Neptune offer 18.4 million shares priced between $18 and $20 each, with the company set to trade on the New York Stock Exchange under the ticker symbol NP.

Private Equity Backers and Cornerstone Investors

The regulatory filing revealed that selling shareholders include Bregal Sagemount and FTV Capital, along with entities tied to Neptune co-founder James D. Albert. The two private equity firms secured a minority stake in the insurer in 2023.

Adding fuel to the launch, cornerstone investors T. Rowe Price Investment Management and AllianceBernstein expressed interest in purchasing up to $75 million in shares from Neptune’s offering, according to SEC filings.

The IPO will be underwritten by Morgan Stanley, J.P. Morgan, and BofA Securities—a powerhouse lineup signaling strong Wall Street appetite.

Riding the Wave of Insurance IPOs

Neptune’s public debut comes amid a surge of insurance IPOs this year. In June, Slide Insurance priced an upsized $408 million IPO at the top of its range. Altegrity Specialty Insurance raised $113 million, and in May, Aspen Insurance Holdings pulled in $397.5 million.

The momentum suggests investors are betting heavily on insurers that stand at the frontlines of climate-driven risk.

Betting on Climate Change

Founded in 2018, Neptune specializes in residential and commercial flood insurance, a sector expected to grow as climate change drives rising seas and worsening flood events across the United States. The company’s technology-driven underwriting model positions it as a rising star in the industry.

Legal Muscle Behind the Offering

Advising Neptune are Michael J. Sullivan, James D. Evans, Mark Mushkin, and Albert Vanderlaan of Orrick Herrington & Sutcliffe LLP. The underwriters are represented by Joseph A. Hall and Pedro J. Bermeo of Davis Polk & Wardwell LLP.

As Neptune $350M IPO heads toward Wall Street, the insurer isn’t just chasing capital—it’s betting that climate volatility and investor confidence will collide to create a tidal wave of opportunity.