Accelerant valued at $6.4 billion in debut as insurance IPOs heat up
The shares of the specialty insurance marketplace opened at $28.50 apiece, above the $21 offer price. In 2023, the company was valued at $2.4 billion.
The strong debut adds to the growing momentum for insurance IPOs that has emerged as a key theme in the new listings market since Liberation Day, with a string of companies successfully pulling off first-time share sales.
Accelerant and some of its shareholders sold roughly 34.5 million shares in an upsized IPO to raise $724 million. They had earlier planned on selling roughly 29 million shares between $18 and $20 apiece.
"The tariff-induced volatility has triggered a classic flight to quality, forcing investors to prioritize predictable cash flows over speculative growth," said Lukas Muehlbauer, IPOX research associate.
"Insurance companies are the primary beneficiaries of this shift in risk appetite, as their defensive business models are more suited to withstanding economic uncertainty."
A number of insurance companies such as Aspen Insurance (AHL.N), opens new tab, American Integrity Insurance (AII.N), opens new tab, Ategrity Specialty Insurance (ASIC.N), opens new tab and Slide Insurance (SLDE.O), opens new tab have completed IPOs in New York since May, and all of them are trading above the offer price, while some IPOs were upsized.
"It seems to be a combination of an industry that is more immune to the current market risks, and is innovating in the right ways at the right time," said Laura Katherine Mann, partner at law firm White & Case.
"The rebound for insurance might continue for a time, but in a volatile market, it is the first movers that will benefit from the current investor appetite for these companies."
Besides Boehly's Eldridge, Accelerant is backed by investment firms Altamont Capital Partners and Barings.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economist
an hour ago
- Economist
Trump will not let the world move on from tariffs
When President Donald Trump stood outside the White House on April 2nd and revealed his 'Liberation Day' tariffs, all hell broke loose. The 'reciprocal' levies threatened to break financial markets, as well as scrambling international commerce. Thankfully, Mr Trump quickly backed down, cutting tariffs to 10% for most countries on April 9th and doing the same for China a month later. Markets recovered; uncertainty receded. The world economy tried to move on. Everyone began to lose interest. Everyone, that is, except Mr Trump.
Reuters
2 hours ago
- Reuters
NFL deals Red Zone, NFL Media assets to ESPN in billion-dollar agreement, the Athletic reports
Aug 1 (Reuters) - The NFL and Disney's (DIS.N), opens new tab ESPN have reached a deal, potentially worth billions, placing many of the league's media holdings with the sports network in exchange for equity in ESPN, the Athletic reported on Friday. ESPN is expected to have access to RedZone, NFL Network, seven more regular-season games and the NFL's fantasy football business, the report said, citing sources briefed on the agreement. There is also a possibility of integrating special features, including betting, and potentially more assets too. The four-year on-and-off discussions have led to what is said to be a complicated agreement, the Athletic report said. An official announcement is expected next week. Disney is set to report results on Wednesday. Both ESPN and the NFL declined to comment on the report when contacted by Reuters. The news of the deal comes as Disney is set to launch its new streaming service, named ESPN, this fall, providing access to ESPN networks, including professional and college football and basketball games. The new service will cost $29.99 per month and is part of the media company's effort to tap sports fans who have never subscribed to traditional television.
Reuters
2 hours ago
- Reuters
Dollar tumbles, traders bet on more US rate cuts after weak jobs report
NEW YORK, Aug 1 (Reuters) - The dollar dropped on Friday and was on track for its biggest daily loss against the euro and yen since April after data showed that U.S. employers added fewer jobs in July than economists had expected, while last month's jobs gains were revised sharply lower, leading traders to ramp up bets on how many times the Federal Reserve is likely to cut rates this year. Employers added 73,000 jobs last month, below the 110,000 expected by economists polled by Reuters, while the unemployment rate edged higher to 4.2%, as anticipated, up from 4.1% in June. Job gains for June were revised down to 14,000, from the previously reported 147,000. 'It's worse than anyone expected and the kicker is that downward revision for the prior month too,' said Helen Given, director of trading at Money USA in Washington. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was last down 1.06% on the day at 98.97. The euro rose 1.16% to $1.1547. The single currency reached $1.1389 earlier on Friday, the lowest since June 10. Against the Japanese yen , the dollar weakened 2.01% to 147.7. The greenback earlier reached 150.91, the highest since March 28. The Fed has indicated it is in no rush to cut rates due to concern that President Donald Trump's tariff policies will reignite inflation over the coming months. Fed funds futures traders pared bets on how many times the U.S. central bank is likely to cut rates this year after Fed Chair Jerome Powell on Wednesday offered a hawkish outlook for monetary policy and declined to indicate that a cut in September was likely. But they ramped up bets on cuts again on Friday after the jobs data. Traders are now pricing in 58 basis points of cuts by year-end, up from around 34 basis points on Thursday, with the first cut seen in September. Whether the Fed cuts in September will now likely depend on the next jobs report for August. '(Powell) did say on Wednesday that we were looking at holding rates steadier for longer, but that we were going to get two sets of employment data before the next Fed meeting. So as this first set has been so decidedly negative… the labor market is clearly, clearly cooling, that's going to raise the importance of that September figure as well,' said Given. The August jobs data will be released on September 5, with the Fed due to meet on September 16-17. A more dovish Fed would likely be negative for the U.S. currency, even after it has appeared to find its footing in recent weeks following a rough first half of the year. "Our forecast for the dollar to strengthen in the second half of the year relies in large part on our view that the US economy will remain resilient and the FOMC keep policy on hold until 2026," Jonas Goltermann, deputy chief markets economist at Capital Economics said in a note. "Plainly, that now looks less probable; in a recession scenario the dollar is likely to weaken against lower yielding currencies such as the yen and the euro, even if it may rally against other, riskier currencies," he said. The dollar had gained earlier on Friday after Trump imposed new tariff rates on dozens of trade partners. The Swiss franc was among the hardest hit as Switzerland now faces a 39% rate. The Swissie fell against a range of currencies in response to Trump's hefty duties and to his demand that pharma companies - key Swiss exporters - lower the prices at which they sell to U.S. consumers. The dollar was last down 0.76% against the Swiss franc at 0.806 , after earlier reaching 0.8171, the highest since June 23. The Canadian dollar strengthened 0.44% versus the greenback to C$1.38 per dollar, after earlier easing to C$1.3879, the weakest since May 22. Canada was hit with a 35% tariff, instead of the threatened 25%. The dollar had also gained against other currencies due to drivers other than tariffs. The yen was earlier headed for its largest weekly loss this year after the Bank of Japan signaled it was in no hurry to resume interest rate hikes, prompting Finance Minister Katsunobu Kato to say on Friday that officials were "alarmed" by currency moves. In cryptocurrencies, bitcoin fell 2.01% to $114,180.54.
