HCI spins off Exzeo Group in NYSE IPO
HCI Group is looking to unlock value for its shareholders by spinning off its subsidiary Exzeo Group in an NYSE IPO.
The filing puts joint bookrunners Truist Securities along with Citizens Capital Markets and William Blair on track to price the deal in October.
The original plan was for HCI to distribute shares of its insurtech subsidiary tax-free to its shareholders.
The carrier can still avoid taxes by selling up to 20% of Exzeo to the public and then distributing the rest to its shareholders after the lockup period expires.
Even though HCI shares are trading near an all-time high of US$186.81, management thinks there is unrecognised value in Exzeo as a standalone company.
The platform comprises nine software and data analytics applications to help carriers digitally manage risk, underwriting, claims processing and other services for policyholders.
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.
There is some overlap with Neptune Insurance, which priced a US$368m NYSE IPO on Tuesday.
While both use data analytics to better manage risk, Neptune is focused on flood insurance while Exzeo's clients represent a broader range of P&C insurance carriers.
Neptune's all-secondary offering was oversubscribed, including US$75m of upfront demand from T. Rowe Price and Alliance Bernstein, which could provide a tailwind for Exzeo if all goes well.