Intriguing IPOs: Neptune Insurance Holdings (NP)

Neptune is either the future of insurance or the beneficiary of a unique emerging insurance market.

Flood at Mort-Marly, Alfred Sisley, 1872, oil on canvas (National Gallery of Art)

I don’t think anyone who knows me or has read this newsletter for a while would call me a futurist. It’s not that often that I see a company and think “this is the future of [industry]”. Innovative companies rarely deliver the futuristic civilization we envision one day. I might even go so far to say that many of the significant advancements these days look more dystopian than utopian.

So I was a bit surprised when I read Neptune Insurance Holdings’ (NYSE: NP) IPO prospectus. It is the first time in many years that I have asked if this business model is the future of the insurance industry.

There are numerous regular insurance companies, oddball insurance companies, and insurance-adjacent companies listed on the public market (many of which are discussed here). Still, Neptune is one of the more unique business models. I’m unsure whether this is a futuristic innovation for the rest of the industry or a tool uniquely positioned to benefit from one of those “uninsurable” parts of the insurance market.

Let’s dig in.