JAB holding grows bigger in the pet insurance business with $1.4 billion deal

The “transformational strategic partnership” consists of the takeover of holding company Fairfax’s interests in both players, including their worldwide operations. 

Fairfax will receive $1.4 billion (€1.33B) in the form of $1.15 billion (€1.09B) cash and $250 million (€238M) in seller notes.

Dirk Beeckman, CEO of JAB’s pet insurance portfolio, claimed that this development “significantly advances” the company’s core mission of providing the leading health and wellbeing ecosystem for pets through offering affordable, comprehensive pet products and brands throughout a pet’s lifecycle.

The company estimates that it will achieve written premiums and pet health services revenue worth over $1.2 billion (€1.14B) by 2023, insuring more than 2.1 million pets.

Second half of 2022

Crum & Foster Pet currently insures over 500,000 pets and serves as an underwriter for numerous brands, including ASPCA Pet Health Insurance, 24Petprotect, Hartville Pet Insurance, LLC (provider of Petco pet insurance plans) in the United States and Pets Plus Us in Canada.

Through its operations in North America and the United Kingdom, Pethealth provides well-being and safety solutions to shelters and pet parents with over 20 million registered pets.

The transaction is subject to the customary closing conditions, including various regulatory approvals, and is expected to conclude in the second half of 2022.

The European private equity firm made two major acquisitions in the pet insurance industry towards the end of last year. It acquired Figo Pet Insurance, a US pet insurer, and took a majority stake in UK insurer BNP Paribas Cardif’s pet insurance division Cardif Pinnacle.