TypTap, a Florida-based InsurTech startup that writes private market homeowners and flood insurance, attracted $100 million in financing from investment firm Centerbridge Partners.

Plans call for using the money to fuel a national expansion.

“We will immediately begin preparing TypTap for future growth,” Paresh Patel, CEO of HCI and TypTap, said in prepared remarks. “Centerbridge will be a valuable partner in all our efforts and we look forward to working with them.”

TypTap, launched in 2016 and backed by HCI Group, uses an online platform to quote and bind policies quickly and efficiently. Algorithms and artificial intelligence drive the platform, which the company said helps identify policies that deliver profitable results while mitigating risk.

Centerbridge’s investment reflects about 11.75 percent of TypTap, based on post-money valuation for the company of about $850 million.

The arrangement gives Centerbridge TypTap preferred shares with liquidation, dividend, redemption and other rights, along with a four-year warrant to purchase 750,000 HCI common shares at $54.40 per share. According to TypTap, the preferred shares automatically convert to common shares once an initial public offering meeting certain goal posts is completed.

Centerbridge also gets to appoint one director to both the HCI and TypTap boards of directors.

Source: HCI/TypTap