Insurance broker Acrisure interviews banks for 2024 IPO

(Bloomberg) –Acrisure LLC, a large, closely-held insurance broker, is interviewing banks to go public next year, people with knowledge of the matter said, in a sign that equity markets may be opening up to new listings from strong companies. 

Grand Rapids, Michigan-based Acrisure is expected to be valued at well over $20 billion in an initial public offering, the people said, asking not to be identified discussing confidential information. The company raised $725 million for a $23 billion valuation last year from backers including Abu Dhabi Investment Authority.

Deliberations are ongoing and no final decisions on the size or timing of an IPO have been taken, according to the people. Acrisure could also opt to stay private, they said. A representative for Acrisure declined to comment. 

Brokers like Acrisure, which act as intermediaries between businesses and insurance providers, have enjoyed rising revenue because of inflation. That’s because the runup in home prices and other assets that require insurance translate into higher fees for brokers when they connect clients with policies. Brokers including Marsh & McLennan Cos Inc. and Aon Plc have seen their stock price soar in the last 12 months.

Acrisure, which says its platform is powered by artificial intelligence, describes itself as the “fastest growing brokerage in industry history” with $4.1 billion in proforma revenue. It was the seventh-largest broker by revenue last year, according to trade publication Business Insurance. 

Its move to consider going public hints there may be an end in sight to the slump in the US IPO market, which is on pace for its slowest year since at least 2009. Fast-casual restaurant chain Cava Group Inc. almost doubled in its trading debut this week.