FILE PHOTO: A view shows the New York Stock Exchange (NYSE) Wall Street entrance in New York City, U.S., April 7, 2025. REUTERS/Kylie Cooper/File Photo

By Manya Saini

(Reuters) -Flood insurance provider Neptune filed for a U.S. initial public offering on Wednesday, becoming the latest company to tap into renewed investor demand as easing tariff concerns and strong markets spur more firms to test the waters.

With stocks market hovering near record highs, investors have been favoring high-growth sectors and companies largely shielded from trade risks.

Analysts say the window through mid-October will be crucial, with several high-profile names lining up to gauge whether confidence in equities can withstand political and economic uncertainty.

"Today's market has a higher bar for IPOs. Until investors seek more risk, we expect most VC-backed public listings in the coming months to fall into two categories: the company is profitable or aligned with the Trump administration's key policy priorities," Emily Zheng, senior analyst, venture capital at PitchBook, told Reuters.

Founded in 2018, Neptune provides flood insurance to homeowners and businesses. Flood insurance has become a pressing issue in the United States as climate change fuels more frequent and severe storms with millions vulnerable to damages and costs.

The insurance sector is often viewed as recession-proof, offering an all-weather appeal because households and businesses tend to hold on to critical policies even in economic downturns.

Triton, the company's automated underwriting engine, uses artificial intelligence and data science to handle tasks such as risk selection and pricing.

Neptune said its underwriting engine has maintained a lifetime written loss ratio of 24.7% from its inception through June 30, 2025, a period which includes major U.S. flooding disasters.

The company posted revenue of $119.3 million for the year ended December 31 and its net income was $34.6 million.

It is aiming to list on the New York Stock Exchange under the ticker symbol 'NP'.

Morgan Stanley, J.P. Morgan and BofA Securities are the lead underwriters of the offering.

(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)