Florida-based flood insurance group Neptune Insurance Holdings Inc., the parent company of Neptune Flood, reported record financial results for the second quarter of 2026, with revenue up 33% and net income up 36%.
Revenue for the quarter reached a record $55.9 million, driven by continued growth in the renewal portfolio and an increase in commission income as a percentage of premiums.
This number was also impacted by record new business sales, including deployment of technology tools to engage new and existing agents (Atlas+, user-based logins, etc.), increased agent adoption of NP following the government shutdown in Q4 2025, and proactive product enhancements to optimize product-market fit.
The continued slow housing market reduced sales opportunities, while the remaining slowdown from below-average storm activity in 2025 also impacted revenue in the second quarter of 2026.
Net profit increased to US$15.8 million, with a net profit margin of 28%. The insurer also reported a 55% increase in adjusted net income to $22.6 million, a 36% increase in adjusted EBITDA to a record $34.5 million, and a profit margin of 61.7%.
Neptune said Adjusted EBITDA was impacted by normalized commission expenses as a percentage of premiums, an increase in commission revenue as a percentage of premiums, a continued focus on operating leverage and increased expenses related to public company costs and technology development.
Written premiums also increased during the quarter, up 31% to a record $126.9 million, and renewal policy retention increased to 86%.
“The second quarter was the strongest quarter in Neptune’s history, with nearly every business metric setting records. We generated record new business sales, supported by the continued expansion of our distribution network and strong agent engagement on our platform,” Neptune said.
Adding: “Technology delivery has reached new heights. As part of beta testing, we launched commercial and apartment seismic products, completed a complete redesign of the agent portal and quoting experience, extended Atlas+ to all our distribution partners, and deployed new machine learning models in the underwriting process.
“Artificial intelligence supports our developers throughout the software development process, and with essentially no changes to the team, engineering output more than doubled compared to the fourth quarter of 2025. Underwriting performance continued to be excellent. Our lifetime underwriting loss ratio was 19.5%, down 500 basis points from a year ago, and we updated and expanded our two largest capacity programs amid improving economic conditions during the quarter.”
