Acrisure Holdings Inc.

The stable outlook reflects S&P Global Ratings' expectation for sustained revenue growth with stable adjusted EBITDA and reduced borrowing costs, underlying a run-rate expectation for S&P Global Ratings-adjusted financial leverage of 10x-11x (7x-8x excluding payment-in-kind [PIK] preferred) and adjusted EBITDA cash interest coverage above 2.0x. We could lower the ratings in the next 12 months if Acrisure sustains pro forma adjusted financial leverage above 12x (above 8x excluding PIK preferred) or if cash interest coverage falls below 2x and we expect it to remain below that level. This could occur if management takes a more aggressive approach to financial policy than we anticipate or if performance deteriorates. We could also lower the ratings if the company's business weakens, as shown

...Acrisure Holdings Inc. is one of the largest privately owned brokers in the U.S., which we attribute to its aggressive, acquisitive growth strategy. The company has well positioned itself within the industry and among its competitors while leveraging industry and technical specialization for organic growth. Its acquisition strategy is well suited to its needs; the company quickly integrates and does not change business operations after acquisitions, thus reducing the risk of lost business. The firm has limited producer and client concentrations. The top 20 clients represent less than 2% of revenue. Acrisure's business presence has grown over the past couple of years, and it offers a broad variety of property/casualty and specialty insurance products, along with employee benefit products and services. Acrisure operates in a fragmented marketplace where only the top three players have greater than 5% market share. The company and regional peers face a greater degree of competition than the...

Full Report