HCI's insurtech TypTap nabs $100m at $850m valuation for expansion

TypTap Insurance Group, the insurtech subsidiary of US-based HCI Group, has raised $100 million at approximately $850 million valuation from a fund affiliated with private investment management firm Centerbridge Partners.

TypTap is a technology-driven insurance company that provides homeowners and flood insurance in Florida with plans to expand its operations nationwide.

The company has received regulatory approval in 10 additional states with approvals pending in an additional nine states.

In exchange for its investment, Centerbridge received from TypTap preferred shares with liquidation, dividend, redemption, and other rights and received from HCI a four-year warrant to purchase 750,000 HCI common shares at $54.40 per share. The preferred shares automatically convert to common shares upon completion of an initial public offering meeting certain parameters.

Terms of the investment also entitle Centerbridge to appoint one director to both the HCI and TypTap boards of directors.

Paresh Patel, chief executive officer of HCI and TypTap, said: “We are excited about our partnership with Centerbridge. This capital infusion will enable TypTap to pursue its national expansion plans rapidly and to continue developing innovative insurance-related technologies. We will immediately begin preparing TypTap for future growth. Centerbridge will be a valuable partner in all our efforts and we look forward to working with them.”

Eric Hoffman, managing director at Centerbridge, commented: “We have been enthusiastically observing TypTap’s growth trajectory and progress over the last couple of years and are particularly impressed by what the leadership team has been able to accomplish with respect to profitably scaling its InsurTech platform.”

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