The IPOs of several insurance companies, such as Lemonade Inc LMND, in 2020 may lead to additional companies in the sector hitting the public market in 2021. Companies could explore a traditional IPO or a SPAC deal to bring their insurance companies public.
Oscar Health: Health insurance company Oscar Health is planning to IPO in 2021. The company uses a technology-minded approach to offer small group and Medicare Advantage plans.
Health plans are currently offered in 18 U.S. states with a focus on larger ones such as Florida, Texas and California.
The company said 47% of its subscribers are active monthly users, including 44% of users over the age of 55.
Oscar Health has 529,000 members and had revenue of $1.67 billion in fiscal 2020. Revenue in the prior year was $1.04 billion.
Shares are expected to trade as OSCR on the NYSE. Alphabet Inc GOOG GOOGL is an investor in Oscar Health.
Related Link: 10 IPOs To Watch Out For In 2021, Including Petco, Poshmark, Bumble, Coinbase And More
Hippo: Homeowner insurance company Hippo raised $250 million in November and is considering going public, according to Bloomberg.
The company was linked to a SPAC deal with Reinvent Technology Partners RTP, a SPAC led by Mark Pincus and Reid Hoffman.
Hippo sells coverage online and is seeing fast growth. The company acquired Spinnaker Insurance recently and has expanded into more states over the last 12 months.
Hippo acquired a home maintenance platform in 2019 that could help the company diversify beyond insurance.
American International Group: Insurance company American International Group Inc AIG is working on spinning off its life insurance and retirement business. The company is exploring options for selling a stake of this unit.
See also: Best Private Health Insurance
New CEO Peter Zaffino told Bloomberg that the proceeds possibly could be used for share buybacks.
“Our current expectation is that an initial disposition of 19.9% of life and retirement, whether through a minority IPO or sale to a third party, will generate net proceeds such that some portion can be used toward further share repurchases,” Zaffino said.
Investors should watch to see if this unit becomes a 2021 IPO.
(Photo Micah Tindell via Unsplash)
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