Two months after its successful initial public offering that raised more than $368 million, Neptune Insurance Holdings Inc. reported a lucrative third quarter, despite a slight dip in net income.
Q3 Net income for the St. Petersburg, Florida-based private flood insurance firm stood at almost $11.5 million, down from $12 million for the third quarter in 2024, according to the company’s latest filing with the U.S. Securities and Exchange Commission.
The drop was directly attributable to expenses related to Neptune’s IPO in September, the company said. Those millions have already been reimbursed by selling shareholders, but that won’t be reflected until the Q4 earnings report.
Revenue increased by almost a third, to $44.4 million, compared to Q3 2024. Written premiums increased 30.7%, to $101.6 million, compared to $77.7 million in the third quarter of 2024.
The company did not indicate what effect that the 44-day federal government shutdown and temporary suspension of the National Flood Insurance Program, which began Oct. 2, may have on Neptune’s policy count. But CEO Trevor Burgess’ comments suggested that Neptune and private flood insurance are having a moment.
“The excellent results delivered in Q3 showcase the scalability and efficiency of our model. Expanding distribution, record new business policy sales, strong renewal dynamics, and continued technology leverage helped produce 31% revenue growth, a 26% net income margin, and a 60% Adjusted EBITDA margin,” Burgess said in a statement.
He added that Neptune’s business structure played a role.
“Operating as a managing general agent (MGA) that takes no balance-sheet insurance risk, a model we believe is unique to the public markets, allows us to deliver these margins and provide a financial profile that is efficient, asset light, and profitable.”
Policies in force climbed to 260,200, up from 204,800 a year ago.
Related: Neptune Shares Climb 24% After US IPO
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