Updated Version 3 - The Fidelis Partnership, an insurer backed by Blackstone, has filed for a US IPO.

Analyst comments have been added in paragraphs 3 and 4.

Reuters, September 25 - Insurance underwriter TFP Group (better known as The Fidelis Partnership) filed for an initial public offering (IPO) in the United States last Friday, as the previously sluggish autumn IPO window appears to be regaining momentum.

Previous expectations for a strong rebound in the autumn IPO window were not met, as soaring bond yields and a tightening interest rate environment curbed risk appetite. Since the September Labor Day holiday, only four companies have successfully gone public, even though September is typically a busy season for the IPO market.

"We're simply seeing a valuation gap between issuers and buyers," said Matt Kennedy, senior strategist at the IPO research and ETF-focused firm Renaissance Capital.

"Given the volatility in the market, investors are looking for a genuine IPO discount, but issuers seem to be sticking to valuation levels they anticipated when the IPO process was initiated months ago, in a hotter market."

TFP was founded by industry veteran Richard Brindle and became an independent business in 2023 following a spinoff from Fidelis Insurance.

TFP operates a global specialty insurance business covering more than 150 lines in over 140 countries and assumes underwriting risk. The company uses a fee-based business model, earning underwriting commissions and a share of profits paid by partners.

The company, headquartered in Hamilton, Bermuda, reported a net profit of $127.5 million on revenue of $407.5 million for the six months ended June 30, compared to a net profit of $74.5 million and revenue of $365.9 million for the same period last year.

Last year, TFP partnered with Blackstone Group (BX.N), the world’s largest alternative asset manager, to establish a new underwriting group at Lloyd's of London.

The company and some of its investors plan to sell shares in the IPO. In addition to Blackstone, TFP’s shareholders include Alfa Insurance, Capital Z Partners, and Travelers Group (TRV.N).

Morgan Stanley, Barclays, and JPMorgan are among the underwriters. TFP will list on the New York Stock Exchange under the symbol "TFP".

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