Fairfax agrees to sell pet insurance business for $1.4 billion Apk Safe
“Fairfax could be very joyful to associate with Olivier Goudet and JAB Holding Firm,” mentioned Prem Watsa, founder, chairman and CEO of Fairfax. “JAB has had an impressive monitor file over the previous 10 years and we count on this to proceed. Whereas we’ve offered our pet insurance coverage enterprise to JAB, we’ll make investments $200 million of their JCP V to turn out to be their companions. We count on JAB to quickly turn out to be leaders in pet healthcare and pet insurance coverage globally. We want them a lot success.”
The worldwide pet insurance coverage business is rising at a price of roughly 20% per yr, and there are vital alternatives to proceed that development, contemplating that huge markets just like the US and Canada have lower than 3% insurance coverage penetration. That is mirrored in JAB’s development projections. By 2023, JAB’s mixed world pet insurance coverage and ecosystem platform is predicted to have gross written premiums and pet well being companies revenues of effectively over $1.2 billion, insuring greater than 2.1 million pets.
“In the present day’s transaction is a serious milestone for us in our mission to turn out to be a worldwide chief in pet insurance coverage and the pet well being ecosystem,” mentioned Dirk Beeckman, CEO of JAB’s pet insurance coverage portfolio. “It additionally considerably advances our mission of offering the main well being and wellbeing ecosystem for pets by means of the providing of reasonably priced, complete pet merchandise and types all through a pet’s lifecycle. C&F Pet‘s lengthy historical past of disciplined omni-channel underwriting matches completely with our tradition, and we sit up for working with the workforce.”
Olivier Goudet, managing associate and CEO of JAB, added: “We’re extraordinarily excited to associate with Prem and his group on this transformational transaction, and to welcome them as a associate in our fund. Prem has an unbelievable multi-decade monitor file of constructing nice companies and compounding returns, and we sit up for accelerating the expansion of their pet insurance coverage enterprise as a part of our targeted pure-play pet insurance coverage platform.”
C&F Pet at the moment insures over 500,000 pets throughout North America. It additionally serves as an underwriter for quite a few manufacturers, together with ASPCA Pet Well being Insurance coverage, 24Petprotect, Hartville Pet Insurance coverage, Spot Insurance coverage Providers, Pumpkin Insurance coverage Providers and PetCoach, LLC (supplier of Petco pet insurance coverage) in america and Pets Plus Us in Canada. In the meantime, Pethealth supplies wellbeing and security options to shelters and pet dad and mom beneath the 24Pet model.
Gary McGeddy, president of Crum & Forster A&H, commented on the deal: “We’re extraordinarily pleased with what we’ve constructed and achieved collectively within the animal welfare neighborhood and the pet insurance coverage ecosystem. We’re assured that JAB will proceed to speculate and concentrate on pets and pet dad and mom whereas rising their world presence and we’re excited concerning the future and our partnership.”
The transaction stays topic customary closing circumstances and is predicted to shut within the second half of 2022.