Insurance Broker TWFG Aims to Raise Up to $176M in IPO

July 10, 2024

Insurance broker TWFG, backed by reinsurer RenaissanceRe, said on Tuesday it is aiming to raise as much as $176 million in its initial public offering in the United States.

TWFG is offering 11 million shares at a price range of $14 to $16 each. The share offering comes at a time the U.S. IPO market is at its strongest since 2021 as investors continue to warm up to new listings.

Founded in 2001 by former insurance agent Gordy Bunch, TWFG is a retail and wholesale distributor of personal and commercial property and casualty insurance in the United States.

Texas-based TWFG, which works with more than 300 insurance carriers, has a presence in 41 states and the District of Columbia. Its business, however, is mainly concentrated in Texas, California and Louisiana.

Editor’s Note: TWFG was ranked No. 26 in the Insurance Journal Top 100 Independent Property/Casualty Agencies report in 2023.

Rising premiums in recent years have benefited brokers, who generally pocket a percentage of insurance premiums as commission.

Auto insurer Progressive and insurance bellwether Travelers account for a sizeable portion of TWFG’s revenue.

TWFG, better known as the Woodlands Financial Group, also counts Bunch Family Holdings and private investment firm Griffin Highline Capital among its shareholders.

After the offering, entities controlled by TWFG Chief Executive Gordy Bunch will hold 94.4% of the combined voting power in the insurance broker.

The IPO proceeds will be primarily used by TWFG to repay debt and for acquisitions or investments in other businesses.

The company will list on the Nasdaq Global Select Market under the symbol “TWFG.”

The offering is being underwritten by a syndicate of nine Wall Street banks led by J.P. Morgan Securities, Morgan Stanley, BMO Capital Markets and Piper Sandler.