A technology-driven insurance platform will use part of a recently announced $100 million capital raise for a national expansion that includes New Mexico.
The Florida company, TypTap Insurance Group, provides homeowners' and flood insurance. In an attempt to simplify the insurance process, the company uses software to collect data on single-family homes so homeowners can get a quote by entering their address and answering a few additional questions, reported the Tampa Bay Business Journal, our sister publication. It is a subsidiary of HCI Group Inc., a publicly-traded insurance, real estate and information technology company.
“We are excited about our partnership with Centerbridge,” said Paresh Patel, CEO of HCI and TypTap, in a statement. “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."
TypTap was founded in 2016 to use tech, data and analytics to "simplify the insurance experience," according to an HCI release. In August, the company announced its intent to go nationwide, saying it started to seek approval from Florida insurance regulators. The company has received regulatory approval for 10 states, with pending approvals in nine states, the release says. In February, it said it received approval to write homeowners insurance in New Mexico as part of its nationwide expansion.
Last week, it announced its $100 million fundraising round from a fund affiliated with Centerbridge Partners, L.P., a private investment firm with offices in New York and London. The investment put the valuation of TypTap at about $850 million, according to the company.
“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 [insurance technology] platform," said Centerbridge Managing Director Eric Hoffman in a statement.
