HCI Group, Inc. (NYSE:HCI) subsidiary corporation, TypTap Insurance Group, Inc., is pleased to announce that a fund affiliated with Centerbridge Partners, L.P.
has invested $100 million in the company. The investment, representing about 11.75% of TypTap, implies a post-money valuation for TypTap of approximately $850 million.
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.
“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.”