JAB to Acquire Fairfax’s Pet Insurance Stake in Crum & Forster, PetHealth
JAB Holding Company and Fairfax Financial Holdings Limited said today that JAB’s pet insurance business has agreed to acquire all of Fairfax’s interests in the Crum & Forster pet insurance group and PetHealth Inc., including all of their global operations.
Fairfax will receive $1.4 billion in the form of $1.15 billion in cash and $250 million in seller’s warrants. JAB said its combined global pet insurance and ecosystem platform will grow to generate gross written premiums and pet health services revenue of more than $1.2 billion. by 2023, insuring over 2.1 million pets. The transaction, subject to conditions and regulatory approvals, is expected to close in the second half of 2022.
C&F Pet today insures more than 500,000 pets and markets or serves as an underwriter for many brands, including ASPCA Pet Health Insurance, 24Petprotect, Hartville Pet Insurance, Spot Insurance Services, Pumpkin Insurance Services, and PetCoach, LLC (provider of petco pet insurance plans) in the United States and Pets Plus Us in Canada.
Pethealth provides wellness and safety solutions to animal shelters and owners under the 24Pet brand, which includes the 24Petwatch registry with over 20 million pets registered.
As part of the transaction, Fairfax will also invest $200 million in JCP V, JAB’s latest consumer fund.
“Fairfax is very pleased to partner with Olivier Goudet (Managing Partner and CEO of JAB) and JAB Holding Company,” said Prem Watsa, Founder, Chairman and CEO of Fairfax. “JAB has had an exceptional record over the past 10 years and we expect that to continue. Although we sold our pet insurance business to JAB, we will invest $200 million in their JCP V to become their partners. We expect JAB to soon become the world leader in pet health and insurance. We wish them much success.
The pet insurance industry, which is growing around 20% per year globally, is expected to continue to see many years of strong and sustained growth, driven by attractive long-term trends in in pet care and significant expansion opportunities. penetration, especially in the U.S. and Canadian markets which have less than 3% penetration, said JAB, which already had majority stakes in NVA, one of the world’s largest animal care service platforms, and Independence. Pet Group, a leading pet insurance provider. Last October, JAB acquired Chicago-based pet insurance provider Figo and a majority stake in UK pet insurer Cardif Pinnacle.
JAB Holding Company, a German conglomerate based in Luxembourg, and its JAB Consumer Partners are also the largest shareholder of Keurig Dr Pepper and have majority stakes in coffee company JDE Peet’s, Krispy Kreme Donut, Panera Brands, Pret A Manger and Espresso House. .
“We are extremely excited to partner with Prem and his organization on this transformational transaction, and to welcome them as a partner in our fund,” Goudet said. “Prem has an incredible decades-long track record of building great businesses and compounding returns, and we look forward to accelerating the growth of their pet insurance business as part of our insurance platform. for pets pure-play.”
Dirk Beeckman, CEO of JAB’s pet insurance portfolio, added: “Today’s transaction is a major milestone for us in our mission to become a global leader in pet insurance and pet health ecosystem. It also significantly advances our mission to provide the leading health and wellness ecosystem for pets through the provision of affordable, comprehensive pet products and brands throughout the lifecycle. of a pet. C&F Pet’s long history of disciplined omnichannel underwriting fits perfectly with our culture, and we look forward to working with the team.
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