REDWOOD CITY, Calif. – InsWeb Corp., an on-line insurance marketplace operator that allows consumers to shop for automobile, term life, homeowners, renters and individual health insurance, held an initial public offering July 22. The company offered 5 million shares at $17 per share, at the top of its $16 to $17 filing range.
Softbank Corp., Nationwide Mutual Insurance Co. and Insurance Information Exchange were venture investors.
Goldman, Sachs & Co., BancBoston Robertson Stephens and Donaldson, Lufkin & Jenrette underwrote the offering, which left 33.52 million shares outstanding.
Incorporated in February 1995, InsWeb brings consumers and insurance companies together online. The service is free to consumers, while insurance companies are charged a transaction fee, which accounts for 75% of InsWeb’s revenues. The company has a distribution relationship with more than 35 insurance companies.
Proceeds from the offering, worth approximately $78.1 million, will be used for working capital and to invest in complementary businesses. The company will also invest in short-term, interest-bearing securities.
Softbank Vice Chairman Ronald Fisher was appointed to the InsWeb board of directors in May, while Executive Vice President Yoshitaka Kitao joined the board in February.
InsWeb – Selected Financial
(in thousands, except per share data)
February 28, 1995 (inception) Year Ended December 31, Six Months Ended June 30,
to December 31, 19995 1996 1997 1998 1998 1999
Total revenue – 248 750 4,310 1,027 8,372
Net income (loss) -2,031 -7,270 -9,063 -22,490 -7,890 -14,998
New Income loss per share -677 -0.56 -0.62 -1.52 -0.54 -0.94