Safepoint Insurance Group said on Tuesday it is marketing an initial public offering in the United States that would value the insurer at as much as $1.16 billion. The Tampa, Florida-headquartered property and casualty firm is positioning the sale to take advantage of recent improvements in Florida's property insurance landscape.
The company and certain selling stockholders plan to offer 16.7 million shares at a proposed price range of $15 to $17 per share, with the combined proceeds expected to reach as much as $283.3 million if the securities are sold at the top of the range. Safepoint has begun its roadshow to present the transaction to potential investors.
Of the 16.7 million shares in the proposed deal, 6.2 million are being offered by Safepoint itself while 10.4 million are being sold by existing shareholders, according to the company. Subject to official notice of issuance, Safepoint's common stock has been approved for listing on the New York Stock Exchange under the ticker symbol SFPT.
Safepoint, founded in 2013, focuses on property and casualty insurance in coastal jurisdictions, with an emphasis on Florida and Louisiana. The company highlighted a shifting state market backdrop: regulatory and legislative reforms enacted in Florida in 2022 have correlated with a meaningful decline in litigation claim frequency, making the state more appealing to property insurers after a period in which high litigation rates and exposure to natural disasters had posed substantial challenges to carriers.
Deutsche Bank Securities and Morgan Stanley are serving as joint lead book-running managers for the offering. Additional bookrunners listed for the transaction include Keefe, Bruyette & Woods, Citizens Capital Markets, Piper Sandler, Truist Securities and William Blair.
Context and next steps
Safepoint's roadshow launch signals the firm's intent to gauge investor demand for a public listing while leveraging perceived improvements in its core markets. The company and selling shareholders will seek final pricing following the roadshow and investor meetings.