Agent Commission ExpensesNeptune's higher agent commission expense as a percentage of premiums written was due to test programs aimed at incentivizing agent sales, which are less likely to continue.
Market Growth ChallengesFlood insurance penetration rates are low, with less than 13% in high-risk states, presenting a challenge for market growth.
Valuation ConcernsNeptune Insurance Holdings is rated at Underperform with a price objective of $21, indicating the current valuation may be too high.