Flood-Focused Neptune’s IPO Joins Boom in Niche Insurer Debuts

Neptune Insurance Holdings Inc. is hoping its record of growth and profitability selling flood insurance policies will generate the same investor enthusiasm for its US IPO that greeted most debuts by other firms in the sector this year.

Like many of them, the St. Petersburg, Florida-based company is shaking up a niche form of property and casualty insurance. Neptune offers a hard-to-sell type of coverage in which the US Federal Emergency Management Agency-run National Flood Insurance Program holds a dominant 90% market share.

Neptune is set to become the sixth US-based insurance-sector company to go public this year. With three ...