HCI to spin off Exzeo subsidiary in NYSE IPO
HCI Group is looking to unlock value for its shareholders by spinning off its subsidiary Exzeo Group in a NYSE IPO.
The filing puts joint bookrunners Truist Securities along with Citizens Capital Markets and William Blair on track to price the deal next month.
The original plan was for HCI to distribute shares of its insurtech subsidiary tax free to its shareholders.
The carrier can still avoid paying taxes by selling up to 20% of Exzeo to the public and then distributing the rest to its shareholders after the lockup period expires.
HCI shares closed on Thursday at US$180.43, up 0.3% in the session. Despite trading near a recent all time high of US$186.81, management thinks there is unrecognised value in Exzeo as a stand-alone company.
Exzeo generated Ebitda of US$44m from adjusted revenue of US$120.1m last year (not including contributions from third-party outsourcers). In the first half of 2025, adjusted revenue grew by 81.5% to US$102.4m.
The Exzeo platform is comprised of nine software and data analytics applications to help carriers digitally manage risk, underwriting, claims processing and other services for policyholders.
There is some overlap with Neptune Insurance, a digital underwriter of flood insurance, which is on track to price a US$368m NYSE IPO on September 30.