Our mission is to create a smarter, more resilient insurance platform powered by
AI, data science, and technology, enabling insurers to deploy capacity with
confidence and delivering instant access to coverage for policyholders and
agents.
Neptune is a leading, high-growth, highly profitable, data-driven managing
general agent that is revolutionizing the way homeowners and businesses protect
against the growing risks of flooding. We offer a range of easy-to-purchase
residential and commercial insurance products — including primary flood
insurance, excess flood insurance, and parametric earthquake
insurance — distributed through a nationwide network of agencies. Neptune does
not take any balance sheet insurance risk or have claims handling responsibility
relating to the policies we sell. We underwrite and administer the issuance of
insurance policies on behalf of a diverse panel of insurance and reinsurance
companies, whom we refer to as capacity providers, that manage both this risk
and the associated claims handling. From day one, we have built our business on
a foundation of advanced data science and AI, leveraging proprietary ML
algorithms, which has led to superior underwriting results, outsized growth,
recurring revenue, and robust margins, including delivering a lifetime written
loss ratio of just 24.7% to our capacity providers from our inception through
June 30, 2025. In addition, for the year ended December 31, 2024, we achieved
40.6% organic revenue growth, 29.0% net income margin, and 60.4% Adjusted EBITDA
margin and for the six months ended June 30, 2025, we achieved 32.3% organic
revenue growth, 30.2% net income margin and 59.3% Adjusted EBITDA margin.
Neptune was founded to solve the inefficiencies and poor product-market fit we
saw in the traditional flood insurance market, which we believe represents a
significant and underpenetrated opportunity. According to the American Housing
Survey and the Energy Information Administration, there are over 100 million
residential and commercial buildings in the U.S., many of which face flood risk,
yet only a small fraction are covered by flood insurance. Today, the largest
provider of flood insurance in the United States — and the holder of the
majority market share — is the National Flood Insurance Program, a U.S.
government-run entity and our main competitor. We believe purchasing
insurance from the NFIP is relatively burdensome and time-consuming for
policyholders and agents, and that its limited product offerings often fail to
meet policyholder needs. In addition, the NFIP has historically received
substantial government subsidies that have enabled it to limit premiums to rates
that have been challenging for private flood insurance providers to compete
with, a dynamic that is shifting with the NFIP’s recent introduction of its
“Risk Rating 2.0” pricing model, discussed in more detail below. Private market
participation has also historically been constrained by regulatory barriers, a
lack of innovation expertise, and limited access to sufficient claims and
performance data to optimize pricing and underwriting decisions. We believe that
Neptune’s position as the first scaled private flood platform, including the
years of claims and performance data that we have generated through our
operations, provides a key early-mover advantage in addressing all of these
challenges and disrupting the industry.
With Neptune’s use of AI, our technology platform, and our data-driven approach,
we believe we have delivered the promise of disrupting the insurance industry.
Not only have our innovation efforts delivered vastly improved policyholder and
agent experiences through the ease-of-use of our proprietary underwriting
(Triton) and policy management (Poseidon) platforms, we have also demonstrated
superior risk selection and underwriting through our top-tier financial
performance and sustained growth. Utilizing AI and ML algorithms with no human
underwriters, Neptune has redefined how flood insurance can be underwritten,
creating value for policyholders and agents while producing consistent,
long-term positive returns for our insurance and reinsurance partners. Further,
as the NFIP moves away from its historical subsidized pricing model, we believe
our Triton platform, backed by years of proprietary data derived from our
business operations, positions us to optimize pricing determinations and compete
for existing NFIP policyholders in a way that would be challenging for a new
entrant to replicate until it is able to generate, or otherwise gain access to,
comparable claims and performance data.
Technology and data science are the foundation of Neptune’s business model,
driving our three core pillars:
• Our Underwriting Engine: Our entirely digital underwriting engine, Triton,
uses advanced technology, including proprietary AI and ML models, without any
human underwriters, to assess risk with speed and precision. Powered by
predictive analytics and loss estimation, Triton has enabled Neptune’s
policies to consistently outperform the NFIP in written loss ratio despite 21
landfall hurricanes — including four of the ten largest flood events in U.S.
history — taking place since Neptune’s founding.
• Our Risk Relationships: Our risk relationships are built on performance and
trust, and we currently have 33 capacity providers, including 26 reinsurance
providers, backing 7 distinct insurance programs to help minimize
concentration risk while delivering consistent returns. In turn, the accuracy
of our risk assessment and our precision pricing have delivered hundreds of
millions of dollars of underwriting profit for our capacity providers since
inception, leading to high rates of capacity renewals and increases in
committed capacity.
• Our Distribution: Our distribution strategy is primarily focused on deep
partnerships across agencies with tens of thousands of agents who benefit from
the ease-of-use of our automated underwriting platform, seamless API
integrations, instantaneous bindable quotes and proprietary Agent Portal. We
believe this is a meaningful departure from industry norms and makes our
approach to distribution attractive to the agents we work with.
The three pillars above interlock, creating a powerful and reinforcing loop.
Unlike traditional insurance underwriting that historically relied on humans,
static models, and infrequent adjustments, we leverage an iterative approach
that allows us to consistently and rapidly integrate new data and models into
our underwriting engine, thereby refining our processes and adapting to evolving
market and environmental conditions. As our models constantly evolve and
improve, they are able to deliver superior results that minimize losses for our
capacity providers, which in turn grant us additional underwriting capacity.
With more capacity available, we can offer coverages our policyholders want,
enhancing the ability for our agency partners to easily sell policies while
expanding our distribution and reach. The resulting increase in quoted and bound
policies provides us with access to more data, enhancing the predictive
capabilities of our underlying models.
We operate as an MGA, with a highly attractive, recurring, fee-based revenue
model derived from two primary sources: commissions paid by capacity providers,
and fees paid by policyholders. Commissions are calculated as a negotiated
percentage of premium for each policy. As of June 30, 2025, our average
commission rates have increased by more than 4% since 2018, as capacity
providers continue to recognize our superior underwriting performance. Given our
high retention rates to date, we believe that we have a high degree of
visibility into our future revenue streams. For example, for the six-month
period ended June 30, 2025, our eligible policy and premium retention rates at
renewal were 85.8% and 98.9%, respectively.
As of December 31, 2018, the end of our first full year of operations, we had
$4.4 million of premium in force with one insurance program. As of December 31,
2024, we have achieved remarkable growth. Since 2018, our premium in force has
increased at a CAGR of 99% to $277.6 million as of December 31, 2024. For the
year ended December 31, 2024, we generated $119.3 million in revenue,
$34.6 million in net income, and $72.1 million in Adjusted EBITDA. This
translates to $2.3 million in revenue per employee and $1.4 million in Adjusted
EBITDA per employee, a 29.0% net income margin and a 60.4% Adjusted EBITDA
margin. In addition, for the six months ended June 30, 2025, we generated $71.4
million in revenue, $21.6 million in net income, and $42.4 million in Adjusted
EBITDA, which translates to a 30.2% net income margin and a 59.3% Adjusted
EBITDA margin. For the twelve months ended June 30, 2025, we generated $136.7
million in revenue, $45.3 million in net income, and $82.4 million in Adjusted
EBITDA, which translates to $2.5 million in revenue per employee and $1.5
million in Adjusted EBITDA per employee, a 33.1% net income margin and a 60.3%
Adjusted EBITDA margin. Our Adjusted EBITDA margin has consistently exceeded 50%
over the past four years, thanks to the operational leverage inherent in our
technology-first business model. Notably, our organic revenue for the year ended
December 31, 2024, increased by $34.4 million, or 40.6%, year-over-year,
primarily due to the increased number of renewals in our portfolio and an active
2024 hurricane season. For the year ended December 31, 2024, we also generated
net cash provided by operating activities of $49.9 million. As of June 30, 2025,
we had negative book value per share due to our history of paying dividends to
our stockholders, which have been financed through a combination of debt and
redeemable, convertible preferred stock financings and cash flows generated from
our business operations. Since inception, we have made dividend payments to our
stockholders totaling approximately $605 million.
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Our principal executive offices are located at 400 6th Street S., Suite 2, St.
Petersburg, Florida 33701, and our telephone number is (727) 202-4815. Our
website address is www.neptuneflood.com.
