3.0
Underwriters Weigh InTM Survey
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Q7
Industry-wide, do you expect D&O SIRs for newly public companies to go up, stay the same, or go down?
2025 Survey Results:
of underwriters expect D&O SIRs for newly public companies to stay the same or go down (versus 93% for mature public companies [per Q6]).
Woodruff Sawyer Commentary
While the percentage of underwriters expecting to see higher SIRs almost doubled YOY, SIR stability is probably the name of the game.
Underwriter Comments
[T]he correction in SIR levels that was sought during 2019 to 2021 has been reversed and are now at minimum levels for the increased exposure [that] newly public companies present [relative to mature public companies].
The SIRs are generally adequate for defense costs through MTD.
As the SEC’s resources get depleted and newly public companies start to cut corners, plaintiff firms will see far more opportunities to file claims. These companies shouldn’t be getting SIRs of less than $5M or maybe $3.5M for smaller raises/valuations or non-tech industries.
The retentions on some of these IPOs are unsustainable.
The IPO market is underpriced from a long historical point of view.... Something has to give, and I’d assume SIRs going up would be the first lever to push before charging more premium.
Competition [from other carriers for new business] is putting pressure on retentions.