3 Things – IPO Shelved, Flurry of Investments & Cowbell Re – 1/14/2022

Greetings Friends!  The year is starting to pick up speed as we are all getting back in saddle after holidays and year end activities.  This week we are following a postponed IPO, flurry of investment news and the launch of Cowbell Re.  Here are the three things we learned:


An IPO is Postponed

Home insurance insurtech TypTap announced this week they would delay their planned IPO due to market conditions.  The markets have been watching the Fed and thus made tech stocks volatile.  They are probably making a wise decision on a day when you look at how other publics are performing.  The opportunity for insurtechs to raise capital in the public market may be slowing down due to this uncertainty.  Could this be temporary or perhaps this channel may be narrowing.


Private Capital Still Readily Available

There was a flurry of significant capital raises this week from private / venture sources.  Some of the more notable ones included … Transverse, a fronting company, adding $48M of fresh capital to help their growth.  Accelerant Holdings completed a funding round of over $190M to continue their data-driven insurance distribution platform.  Insurtech billing & payments cloud platform InsurePay raised private capital allowing them to acquire pay-as-you-go solution Split Limit Studios… and another ‘unicorn’ was anointed with AgentSync receiving a valuation of $1.2B.


Capacity for Cyber Cover

On the heels of their competitor Coalition launching a captive for cyber cover last month, Cowbell announced the formation of a similar vehicle, Cowbell Re.  The idea of more capacity for this growing and uncertain risk is great but do these moves actually accomplish that?  At the end of the day there needs to be enough capital allocated to cover whatever losses are coming.  Does the industry have a grasp of what those losses will be?

Thank you for following us, we appreciate your feedback and continued support.  Until next week… stay safe, stay productive!