Hamilton Insurance targets up to $2 billion valuation in US IPO

(Reuters) -Hamilton Insurance Group is targeting a valuation of up to $2 billion in its U.S. initial public offering, the specialty insurer said on Wednesday.

The company, along with some existing investors looking to sell their shares, aims to raise up to $270 million, it said in a regulatory filing.

The listing will test the appetite for stock flotations at a time when green shoots in the U.S. IPO market have been overshadowed by the poor post-debut performances of some high-profile firms that listed recently.

Shares of British chipmaker Arm Holdings, grocery delivery app Instacart and German premium footwear maker Birkentstock have performed poorly since they started trading earlier this year.

Hamilton’s debut will also be a litmus test of investors’ optimism for the insurance sector, which has pushed the S&P Insurance Select Industry Index up 4% this year.

The Bermuda-headquartered company was founded in 2013 and underwrites specialty insurance and reinsurance risks on a global basis through its wholly owned subsidiaries.

Barclays and Morgan Stanley are the lead underwriters for the offering.

Reuters reported earlier in the year that Hamilton Insurance was considering strategic options including an IPO or a private sale in a transaction that could value the company at more than $2 billion.

(Reporting by Niket Nishant and Pritam Biswas in Bengaluru; Editing by Shounak Dasgupta, Sriraj Kalluvila and Shinjini Ganguli)