TypTap is an InsurTech company. Its rapidly growing, technology driven insurance operations provide homeowners and flood insurance in Florida. TypTap plans to expand its operations nationwide, having received regulatory approval in 10 additional states with approvals pending in an additional nine states.
In exchange for its investment, Centerbridge received from TypTap preferred shares with liquidation, dividend, redemption, and other rights and received from HCI a four-year warrant to purchase 750,000 HCI common shares at $54.40 per share. The preferred shares automatically convert to common shares upon completion of an initial public offering meeting certain parameters. Terms of the investment also entitle Centerbridge to appoint one director to both the HCI and TypTap boards of directors.
“We are excited about our partnership with Centerbridge,” said Paresh Patel, chief executive officer of HCI and TypTap. “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. Centerbridge will be a valuable partner in all our efforts and we look forward to working with them.”
Eric Hoffman, Managing Director at Centerbridge, commented: “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 InsurTech platform.”
HCI will file one or more Forms 8-K with the Securities and Exchange Commission containing additional information regarding this transaction. The company has also made available a supplemental presentation that can be found in the Investor Information section of HCI Group’s website.