Health Insurer Bright Health Files For IPO
A fast-growing health insurance startup based in Minnesota has filed for an IPO. With its filing, it’s set to pull off a landmark public listing for a startup based out of Minnesota. That startup is Bright Health Group, one founded by a former CEO of a major health insurance provider in the US.
- Bright Health today unveiled an S-1 document with the US SEC for its proposed initial public offering. As usual, the S-1 gives great insight into the company’s business with information not publicly disclosed before now.
- Bright Health is basically is a digital health insurance provider, a startup in its field competing against bigger giants in America’s large health insurance market.
- Bright Health’s S-1 shows that of a fast-growing company that more than quadrupled its revenue from $281mn in 2019 to $1.2bn in 2020. Like most insurance providers, the bulk of its revenue comes from insurance premiums paid by its customers.
- Bright Health’s big revenue is pulled from a customer base of just roughly 75,000 patients. Surely, the American health insurance market is very lucrative for providers, compared to the universal health coverage systems seen in many other countries.
- On a net basis, Bright Health isn’t profitable, reporting a net loss of $248mn in 2020. In the previous year, it reported a $125mn net loss.
- Bright Health serves its customer base of 75,000 patients through partnerships with a network of 61 primary care clinics. It’s in those clinics where its insurance is acceptable for people covered under its network.
- Bright Health is simply a health insurance provider like many others. Its difference lies in its own process being majorly digital, similar to others such as Oscar Health (NYSE: OSCR).
- Bright Health was founded just five years ago by Bob Sheehy, the former CEO of United Healthcare, the health insurance arm of healthcare giant UnitedHealth Group ($388bn market cap). Sheehy was CEO of United Healthcare from 2000 to 2008.
- In just five years, Bright Health grew very fast on the backs of big venture funding to the tune of $1.6bn. Its investors include VCs like Bessemer Venture Partners and Tiger Global as well as bigger asset managers like Blackstone and T. Rowe Price.
- Bright Health is based in Minneapolis, Minnesota. In that locale, it’s one of the rare high-growth tech startups and is now set to mark further distinction with a public listing.
- Bright Health Bright Health will list on the New York Stock Exchange under the “BHG” ticker symbol.