Orion180 Insurance valued at $1.14 billion as shares fall in debut

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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