Home / Corporate / Ensurance execs step in to shore up business
8 July 2019
Ensurance’s senior executives have thrown the business another lifeline, extending by two years the maturity of $2.2 million in convertible debt.
The original $2.5 million of convertible notes was to be exchanged for equity in the business from now until April next year; $300,000 has already been exchanged.
Executive Chairman Tony Leibowitz and non-executive director Adam Davey hold $200,000 in notes between them.
The company says the agreement provides strong validation of Ensurance’s strategic direction and long-term growth potential.
Ensurance posted a loss of $8.7 million last year as it put funds into its UK expansion. Revenue growth was not enough to offset rising expenses from the overseas launch.
It sold its Australian brokerage business Savill Hicks last year for $4.1 million, using the money to build its specialised insurance products and invest in sales and marketing to support global growth.
The company says the UK business is hitting an 85% retention rate on annual policies, and it plans to expand its specialist insurance offering in coming years.