Insurance companies’ first-time share sales on Wall Street reached a 20-year high this year as investors flocked to firms insulated from US President Donald Trump’s trade war.
Predictable cash flows and resilient business models gave private equity firms an opportunity to sell some portfolio companies and offered investors a haven as other industries were hammered by escalating tariffs, persistent inflation, labour market cracks and geopolitical turmoil.
Apollo-backed Aspen Insurance and American Integrity Insurance were among the first initial public offerings (IPOs) to trade after Trump initiated a trade war, which sent the markets sideways and derailed other debuts. Aspen and American Integrity raised almost $457m and $127m, respectively, in their IPOs.
“The tariff impact and the resulting volatility pushed many investors towards companies with more stable earnings and cash flows. Insurance is one of those niche areas that fits that profile,” said Mike Bellin, IPO services leader at PwC US.
Insurtech Exzeo was the latest to tap public markets earlier this month, raising $168m, in a pivot away from parent HCI Group’s previous plan to pursue a spin-off.
“The sector has benefited from being a bit more insulated from tariff pressure than others,” said Andy Mertz, head of equity capital markets at Citizens, which has underwritten five insurance IPOs this year.
The number of insurance-related IPOs on US exchanges has reached the highest level since 2005, according to Dealogic data.
“We’re seeing an above-average number of insurance IPOs in a below-average year,” said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and exchange traded funds.
Market-beating returns
US-listed insurance IPOs raised a combined $2.64bn this year by November 5, the most since the 2021 boom, Dealogic data shows, and they have performed well.
American Integrity has soared nearly 30% since its debut, while Aspen is about 23% higher. Neptune Insurance and Ategrity Specialty have gained 16% and roughly 8%, respectively.
Kennedy said insurers are generally doing well because many have seen the returns on their investment portfolios and premiums increase.
While there have been some concerns about falling insurance prices and tariff-driven higher claims, bankers expect the industry’s strong growth will continue to attract investors.
“Despite pricing pressures in the sector, investors remain focused on company-specific growth strategies for management teams exploring a public listing,” Mertz said.
Bellin said there is a pipeline of insurers ready to go public, many of which are owned by private equity firms that have spent the past two years building scale.
Still, the lingering effects of the longest-ever US government shutdown are causing short-term delays as the Securities and Exchange Commission works on clearing its IPO backlog after operating with skeletal staffing during the gridlock.
“It’s definitely going to affect the number of IPOs that we see in 2025,” Bellin said. “That really pushes the momentum into the first half of 2026.”
Reuters
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