Global insurance and insurtech companies raised about $6.64 billion from IPOs in 2021, the largest amount in at least five years, according to an S&P Global Market Intelligence analysis.

IPO activity ticks up in 2021

Insurance companies completed 28 IPOs in 2021, up from 21 the prior year. In aggregate, the 21 IPOs completed in 2020 raised more than $4.16 billion. IPO activity in the insurance space over the last five years hit a nadir in 2019 when only six closed worldwide, raising just $600.2 million.

India leads the way in Q4'21

A pair of Indian companies produced the largest IPOs the insurance industry saw in the fourth quarter of 2021. PB Fintech Ltd.'s $579.2 million IPO, approved by the Securities and Exchange Board of India in October 2021, topped the list. Star Health and Allied Insurance Co. Ltd. had the second-largest offering with its $265.2 million IPO.

Russia-based Renaissance Insurance Group JSC's $249.3 million IPO was the third-largest offering in the quarter, followed by Marpai Inc.'s $28.8 million IPO.

The insurance industry raised about $1.13 billion from eight IPOs in the fourth quarter of 2021. In comparison, the sector raised about $1.87 billion from nine IPOs in the fourth quarter of 2020, the highest proceeds total recorded since the fourth quarter of 2017.

Window still open, but volatility up

Geopolitical tensions, inflation risks, and new waves and variants of the coronavirus that could hamstring full economic recovery are all factors that companies looking to go public need to monitor, Ernst & Young said in a quarterly IPO trends report. However, high valuations and significant market liquidity look likely to keep the IPO window open in 2022.

IPO candidates should expect higher market volatility and have alternative plans in place to meet their financing needs in case their IPO timetables are delayed, Ernst & Young said.