The IPO comeback: Trends, Risks and Coverage gaps

The IPO market makes a comeback 

After years of muted activity, IPOs rebounded in 2025 with over 500 global listings raising $60+ billion in H1 alone. Lower interest rates, improved investor sentiment, AI-driven valuations, and a surge in private equity exits have fuelled this rebound. PE-backed IPOs doubled in the first nine months, particularly in the U.S., Greater China, and Nordic markets, as firms seek to monetise long-held assets (average holding periods rising to 6.7 years) and redeploy capital. While the UK has seen just 12 listings so far, momentum is building with a strong pipeline for early 2026*, setting the stage for an exciting year ahead.

This article includes some real life claims examples, why stand-alone D&O coverage can fall short and how Public Offering of Securities Insurance (POSI) offers valuable additional protection for your clients. 

As the IPO market rebounds, we’re ready

Our specialist POSI now has up to £/€/$40m capacity, and a game-changing single claims process.  

POSI is designed to protect both the companies and individuals involved in public securities offerings - such as IPOs, rights issues, secondary offerings or bond offerings. Named advisors, underwriters and selling shareholders are also covered. Specialist POSI can manage down liability risks, from misstatements or omissions in offering documents, regulatory investigations to shareholder lawsuits and provides complete protection for the full statute of limitation period.  

Top reasons for specialist POSI solution: 

• High capacity means efficiency: We can fulfil your client’s POSI insurance requirements, instead of multiple insurers. So no shopping around for additional capacity at the last minute. Cover is available quickly and easily, enabling your client to concentrate on the deal.
• Protect your D&O policy from POSI-related claims: Standard D&O cover offers some financial protection in the event of a POSI claim, however it leaves clients vulnerable if another D&O claim is triggered. A specialist POSI solution means costly claims are covered separately, ring-fencing D&O and adding specialist protection that covers the critical post-offering ‘discovery period’ when claims often occur.
• Mitigates long tail exposure: A significant share price drop or other events can prompt Securities litigation, investigations and scrutiny of past disclosures, often  years after the offering, triggering claims.  
• Multi-year dedicated protection: POSI coverage is a one-time premium payment that covers the full statute limitation period of exposure, offering long-term peace of mind.
• Enhanced claims efficiency: We offer a single claims agreement party that brings speed and simplicity to claims processing via our award winning claims team. No lengthy delays from multiple claims teams from different insurers reviewing cases and having to align on decisions. 

Why clients should consider POSI? 

POSI is an additional layer of specialised protection for clients that D&O cover alone does not provide.  With Beazley now leading a new POSI consortium, were well positioned to offer enhanced capacity for both commercial and FI clients without the need to approach multiple insurers.   

Get in touch to find out how we can support your clients with their IPO requirements.