Agent Commission ExpenseTest programs to incentivize agent sales raised Neptune's commission costs as a share of premiums, creating downside pressure on margins if such programs persist.
NFIP Churn And Competition RiskUncertainty about whether the National Flood Insurance Program will shift sufficient market share to the private sector raises doubt about the scale of Neptune's future addressable market and opens the door for private competitors.
Valuation RiskAnalysts contend that current share prices already embed much of Neptune's growth and margin prospects, limiting potential upside for new investors at prevailing valuations.