Insurance IPOs Surge to 20-Year High on Wall Street

Insurance companies’ first-time public offerings (IPOs) on Wall Street have reached their highest point in two decades this year, driven by investor interest in firms largely insulated from the impact of former U.S. President Donald Trump’s trade war.

Insurance firms’ predictable cash flows and resilient business models offered private equity firms a unique opportunity to sell off certain portfolio companies, while also providing investors a safe haven in the wake of escalating tariffs, inflationary pressures, labour market challenges, and geopolitical uncertainty that buffeted other sectors.

Among the first IPOs to emerge post-Trump’s trade war were Apollo-backed Aspen Insurance and American Integrity Insurance. Despite the volatile market conditions following the initiation of the trade war, these firms successfully raised $457 million and $127 million respectively, proving to be successful ventures.

Experts have pointed out that many investors, having seen turbulence in other sectors, were drawn to the stability offered by the insurance industry. As Mike Bellin, IPO services leader at PwC U.S., put it: “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.”

Notably, Insurtech Exzeo also made its public debut this year, raising $168 million in a strategic pivot. Andy Mertz of Citizens, which underwrote several insurance IPOs this year, stated, “The sector has benefited from being a bit more insulated from tariff pressure than others.”

According to Dealogic, the number of insurance-related IPOs in the U.S. has hit its highest levels since 2005, and this trend seems set to continue. In total, U.S.-listed insurance IPOs have raised an impressive $2.64 billion so far in 2023, the highest since the boom of 2021. These IPOs have performed well, with stocks such as American Integrity seeing an increase of nearly 30%, while Aspen’s shares have risen by around 23%.

Despite some concerns regarding falling insurance premiums and rising claims due to tariff impacts, the overall outlook for the insurance sector remains positive. Many experts believe the industry’s growth trajectory will continue to attract investor interest, driven by strong portfolios and a focus on company-specific growth strategies.

Looking ahead, Bellin mentions a strong pipeline of insurers preparing to go public, although delays related to the longest-ever U.S. government shutdown have affected the pace of IPOs. The backlog at the Securities and Exchange Commission (SEC) could push the momentum for new IPOs into the first half of 2026.

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