- The stock price of HCI Group (NYSE: HCI) has increased by over 28% during intraday trading. This is why it happened.
The stock price of HCI Group (NYSE: HCI) has increased by over 28% during intraday trading. Investors appear to be responding to HCI Group subsidiary corporation TypTap Insurance Group announcing that a fund affiliated with Centerbridge Partners, L.P. has invested $100 million in the company. The investment – representing about 11.75% of TypTap – implies a post-money valuation for TypTap of approximately $850 million.
TypTap is an InsurTech company and its rapidly growing technology-driven insurance operations provide homeowners and flood insurance in Florida. And TypTap plans to expand its operations nationwide, having received regulatory approval in 10 additional states with approvals pending in an additional nine states.
KEY QUOTES:
“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.”
— Paresh Patel, chief executive officer of HCI and TypTap
“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.”
— Eric Hoffman, Managing Director at Centerbridge
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
