Fairfax agrees to sell pet insurance business for $1.4 billion

“Fairfax may be very glad to accomplice with Olivier Goudet and JAB Holding Company,” stated Prem Watsa, founder, chairman and CEO of Fairfax. “JAB has had an impressive monitor document over the previous 10 years and we anticipate this to proceed. While we now have bought our pet insurance business to JAB, we are going to make investments $200 million of their JCP V to develop into their companions. We anticipate JAB to quickly develop into leaders in pet healthcare and pet insurance globally. We want them a lot success.”

The world pet insurance business is rising at a fee 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 penetration. This is mirrored in JAB’s progress projections. By 2023, JAB’s mixed world pet insurance and ecosystem platform is anticipated to have gross written premiums and pet well being providers revenues of effectively over $1.2 billion, insuring greater than 2.1 million pets.

“Today’s transaction is a serious milestone for us in our mission to develop into a world chief in pet insurance and the pet well being ecosystem,” stated Dirk Beeckman, CEO of JAB’s pet insurance portfolio. “It additionally considerably advances our mission of offering the main well being and wellbeing ecosystem for pets by 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 glance ahead to working with the group.”

Olivier Goudet, managing accomplice and CEO of JAB, added: “We are extraordinarily excited to accomplice with Prem and his group on this transformational transaction, and to welcome them as a accomplice in our fund. Prem has an unbelievable multi-decade monitor document of constructing nice companies and compounding returns, and we glance ahead to accelerating the expansion of their pet insurance business as a part of our centered pure-play pet insurance platform.”

C&F Pet at present insures over 500,000 pets throughout North America. It additionally serves as an underwriter for quite a few manufacturers, together with ASPCA Pet Health Insurance, 24Petdefend, Hartville Pet Insurance, Spot Insurance Services, Pumpkin Insurance Services and PetCoach, LLC (supplier of Petco pet insurance plans) within the United States and Pets Plus Us in Canada. Meanwhile, 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 are extraordinarily happy with what we now have constructed and achieved collectively within the animal welfare group and the pet insurance ecosystem. We are assured that JAB will proceed to make investments 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 anticipated to shut within the second half of 2022.

Leave a Reply

Your email address will not be published.