HCI Group Provides Update on Initial Public Offering of TypTap Insurance Group
HCI Group, Inc. (NYSE:HCI) has paused the initial public offering (IPO) of its subsidiary, TypTap Insurance Group, due to unfavorable market conditions. Chairman and CEO Paresh Patel stated that current market pricing does not reflect TypTap's value. HCI believes it can support TypTap's growth without IPO funding and will reassess conditions over the coming quarters for a potential future offering. A registration statement for the IPO has been filed but is not yet effective. HCI focuses on diverse business activities including homeowners insurance, reinsurance, and real estate.
- HCI has the resources to support TypTap's growth without IPO funding.
- The company plans to reassess market conditions for a future IPO, indicating flexibility.
- The delay of TypTap's IPO may impact investor sentiment.
- Market conditions led to the determination that current pricing does not reflect TypTap's value, raising concerns over valuation.
TAMPA, Fla., Jan. 12, 2022 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), a holding company with operations in homeowners insurance, information technology services, reinsurance and real estate, today announced an update regarding the previously announced initial public offering of its subsidiary, TypTap Insurance Group, Inc.
"In light of recent market conditions, HCI’s Board of Directors determined that current market pricing for the planned offering 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 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.”
A registration statement on Form S-1 relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from: JMP Securities LLC, 600 Montgomery Street, 10th Floor, San Francisco, CA 94111, Attention: Prospectus Department, or by calling (415) 835-8985, or by email at syndicate@jmpsecurities.com; and Truist Securities, Inc., 3333 Peachtree Road NE, 9th Floor, Atlanta, GA 30326, Attention: Prospectus Department, or by email at truistsecurities.prospectus@truist.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, reinsurance, real estate and information technology services. HCI’s leading insurance operation, TypTap Insurance Company, is a rapidly growing, technology-driven insurance company that is expanding nationwide to provide homeowners and flood insurance. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners’ insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital, LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.
HCI Group, Inc.'s common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.
Forward-Looking Statements
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. For example, the planned initial public offering of TypTap Insurance Group, Inc. may be delayed further or indefinitely. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the proposed initial public offering of TypTap Insurance Group, Inc. and HCI’s business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.
Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel 949-574-3860
HCI@gatewayir.com
Media Contact:
Catherine Adcock
Gateway Group, Inc.
Tel 949-574-3860
catherine@gatewayir.com
FAQ
What is the reason for HCI Group's IPO delay for TypTap Insurance?
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