Acrisure reported third-quarter earnings showing improved broker retention, easing concerns for debt holders. The insurance brokerage and fintech firm reported North American retail broker retention at 84.2%, up from 82.3% in the second quarter. This improvement helped offset a $131 million cash burn during the period.
The figures offered creditors clarity after an internal spreadsheet was accidentally exposed. For weeks across August and September, debt holders could access the mistakenly embedded presentation file. The spreadsheet included positive metrics but cast doubt on the firm's retention efforts.
Acrisure removed the spreadsheet in September and asked investors not to act on the data. This left debt holders unable to unsee the metrics but wary of acting on the information. Anxiety was acute as Acrisure executes a major operational pivot.
CEO Greg Williams outlined an 11% workforce reduction — roughly 2,250 jobs — in May, citing plans to advance AI and digital capabilities. The company reported third-quarter adjusted EBITDA of $336 million, a 0.3% decline year-over-year. Revenue was $1.24 billion, representing 0.4% organic growth decline.
Acrisure's bonds accounted for six of the seven biggest gains in the US high-yield market Monday. Its debt due 2030 changed hands at roughly 87 cents on the dollar, up from 81 cents at week's end. Short interest in the firm's $550 million of 2032 bonds surged last month.
Pressure was compounded by attention on Acrisure's connection to Wall Street billionaire Mark Walter's empire under regulatory scrutiny.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing