Updated Version 2 - Orion180 Insurance valued at $1.14 billions, but shares fall on first trading day

Background information and CEO comments were added in paragraphs 4 and 7

Atharva Singh

Reuters, September 18 - Orion180 Insurance (OIG.O) saw its share price fall on its first day of trading on Nasdaq on Friday, with the company’s valuation set at $1.14 billion, sounding a cautionary note for other insurance companies planning to go public later this year.

The Melbourne, Florida-based company priced its IPO at $12 a share, below the offering range of $15 to $17, and opened at $11.50, raising a total of $240 million.

The listing comes as the autumn IPO season gets off to a difficult start, with concerns over artificial intelligence spending, the Federal Reserve's recent rate hikes, and rising bond yields all dampening investor enthusiasm for new offerings.

However, Orion180 founder and CEO Kenneth Gregg said: “No matter the macro environment, this was the right decision for our business and our team.”

As climate-related disasters such as floods and wildfires become more frequent and cause greater losses, demand for insurance products is rising. At the same time, property insurance companies have increased premiums in many markets to reflect rising claims costs.

Founded by Gregg in 2018, Orion180 offers excess and surplus lines homeowners insurance in 14 U.S. states. Its main markets include Texas, California, and Florida.

“Our target is the entire homeowners insurance market, as we provide admitted insurance products through excess and surplus (E&S) lines. We see significant opportunities in our core business regions and will look to expand our scope in due course,” Gregg added.

Orion180’s listing is expected to test investor interest in the sector. As investors seek to increase allocations to insurance stocks, this could set the tone for other insurance companies considering going public later in the year.

Bamboo Insurance Services, backed by CVC, also plans a listing next week, aiming for a valuation of $3.24 billion (link).

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