JAB to purchase Fairfax’s international pet insurance coverage operations for $1.4bn
As per the settlement, Fairfax will promote its holdings in Crum & Forster Pet Insurance coverage Group (C&F Pet) and Pethealth, together with all of their international operations, to JAB’s pet insurance coverage enterprise.
JAB can pay $1.15bn in money and $250m in vendor notes for the transaction.
This deal additionally features a $200m funding by Fairfax in JAB’s newest shopper fund, JCP V.
Presently, C&F Pet insures greater than 500,000 pets. It markets or serves as underwriter for a number of manufacturers, together with 24Petprotect, Hartville Pet Insurance coverage, amongst others within the US and Pets Plus Us in Canada.
Pethealth, by plenty of wholly owned subsidiaries, provides a spread of services for shelters, veterinarians and pet homeowners.
JAB pet insurance coverage portfolio CEO Dirk Beeckman stated: “At present’s transaction is a significant milestone for us in our mission to turn out to be a world chief in pet insurance coverage and the pet well being ecosystem.
“It additionally considerably advances our mission of offering the main well being and wellbeing ecosystem for pets by the providing of inexpensive, 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 stay up for working with the staff.”
JAB’s built-in international pet insurance coverage platform is projected to have gross written premiums and pet well being companies revenues of greater than $1.2bn by 2023. It can provide cowl for over 2.1 million pets.
Deliberate to be closed within the second half of this yr, the deal awaits regulatory clearance.
Fairfax founder, chairman and CEO Prem Watsa stated: “Whereas now we have bought our pet insurance coverage enterprise to JAB, we are going to make investments $200 million of their JCP V to turn out to be their companions. We anticipate JAB to quickly turn out to be leaders in pet healthcare and pet insurance coverage globally.”