Weak Cash GenerationSharp deterioration in cash conversion and negative free cash flow reduce financial flexibility. Over months this limits ability to self-fund growth, increases dependence on external financing, and can constrain reserve funding or product investment if cash performance does not recover.
Rising LeverageFaster debt buildup weakens the balance sheet and raises interest and refinancing risk. In an insurance business this reduces buffer for adverse claim cycles, restricts strategic flexibility and increases sensitivity to underwriting or macro shocks, persisting until leverage is repaired.
Sustainability Of GrowthA very rapid revenue jump can strain underwriting, claims management, and distribution quality. Execution risk may lead to higher loss ratios or increased acquisition costs over time; maintaining control of unit economics and operational processes is critical to preserve long-term margins.