The Experts in Animal Health

Brakke Consulting gets a lot of inquiries from investors about pet health insurance.  There are two items of note about pet insurance in today’s newsletter.  Independence Pet Group, which owns more than a dozen brands of pet insurance, has expanded its portfolio with the addition of Spot.  And Nationwide, which is the second largest pet insurance company, has announced the cancellation of 100,000 policies citing inflation and the rising cost of veterinary care.

Pet insurance is one of the fastest growing pet care categories with annual increases greater than 20% for the last four years, according to trade association NAPHIA.  But margins are tight, no doubt contributing to Nationwide’s tough decision to cancel some policies.  Many pet insurance companies routinely lose money.  However, continued willingness of pet owners to spend more at the veterinary hospital, and the innovation of more sophisticated treatment options are viewed as growth drivers for pet insurance.  We expect the rapid growth to continue.

John Volk, Senior Consultant, Chicago

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