By Atharva Singh and Pragyan Kalita
Sept 18 (Reuters) – Orion180 Insurance was valued at $1.14 billion after its shares fell in its Nasdaq debut on Friday, setting a cautious tone for other insurers eyeing public listings later this year.
Shares opened at $11.50 after the Melbourne, Florida-based company priced its IPO at $12 per share, below its marketed range of $15 to $17, raising $240 million.
The debut comes amid a difficult start to the fall IPO season, as concerns over AI spending, the Federal Reserve’s recent interest-rate hike and rising bond yields weigh on investor appetite for new listings.
Kenneth Gregg, founder and CEO of Orion180, however, said, “It was the right decision for our business and our team regardless of macro environment.”
Founded in 2018 by Gregg, Orion180 provides excess and surplus (E&S) lines homeowners insurance across 14 US states. Its key markets include Texas, California and Florida.
“We’re targeting the entire homeowners market, as we offer an admitted product on an E&S basis. We see tremendous opportunity in our core footprint and will opportunistically expand over time,” Gregg added.
Demand for insurance products has risen as climate-related disasters such as floods and wildfires become more frequent and costly, while property insurers have increased premiums in many markets to reflect higher claims.
“E&S market is designed for risks that many insurers either cannot or do not want to write on standard terms. E&S carriers generally have more flexibility over pricing, coverage limits, and policy designs,” said IPOX Vice President Kat Liu.
Orion180’s listing is expected to test investor appetite for the sector, potentially setting the tone for other insurers considering public listings later this year as investors seek greater exposure to insurance stocks.
CVC-backed Bamboo Insurance Services is also slated to go public next week and is targeting a $3.24 billion valuation. Both companies have expanded in markets where traditional insurers have reduced their exposure.
“In Orion180’s case, I would say the opportunity has been accelerated by a cyclical dislocation, rather than saying the opportunity exists only because large insurers pulled back,” Liu added.
(Reporting by Atharva Singh and Pragyan Kalita in Bengaluru; Editing by Sahal Muhammed and Vijay Kishore)
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