Todd Boehly-backed insurer Accelerant mulls IPO, stake sale, CEO says

investing.com:

By Pablo Mayo Cerqueiro, Echo Wang and David French

LONDON/NEW YORK (Reuters) — Accelerant is planning to raise fresh capital next year in a deal that could result in the specialty insurance provider making its debut on the stock market, its CEO and co-founder told Reuters on Monday.

The Cayman Islands-based group, which counts sports financier Todd Boehly's investment company among its backers, raised $150 million in December from investors to fund the rollout of an insurance exchange, valuing it at $2.4 billion, Accelerant Chief Executive Jeff Radke said.

It expects the cash to carry it into 2024 before it needs to tap investors again, although the timeline may be brought forward if growth opportunities come about, he said.

Accelerant is weighing whether to secure the extra funds through a private share sale or an initial public offering (IPO) in New York, the executive said, without giving a specific fundraising target.

No final decisions have been made, and banks have not yet been formally appointed to structure a deal, Radke added. The company's institutional shareholders did not reply to requests for comment.

Accelerant connects risk underwriters with reinsurers and institutional investors. It takes payment from capital providers and helps them manage their portfolio of underwriters.

Founded in 2018, the group has grown rapidly with the backing of its majority shareholder Altamont Capital Partners, drawing in other investors along the way, including Boehly's investment company Eldridge and MassMutual's private equity arm Barings.

Other firms in the industry have been looking to capitalise on rising prices for commercial insurance and reinsurance to attract new investors.

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