JAB Holding expanding pet insurance portfolio with Pumpkin acquisition
JAB anticipates generating around $1.5 billion in global gross written premium from its pet insurance portfolio this year.
JAB Holding Co. has acquired a majority interest in pet insurance platform Pumpkin Insurance Services Inc., furthering its position in the global pet coverage market.
Global animal health company Zoetis, which founded Pumpkin in 2020, will continue to hold a minority stake in the company. Other financial terms of the deal were not disclosed.
“We are thrilled to partner with Zoetis and invest in Pumpkin, a fast-growing pet insurance brand in North America, as we build on our commitment to provide innovative insurance solutions for the benefit of pets and their families,” Frank Engelen, JAB senior partner, said in a release. “In line with our ambition to create the leading pet insurance platform globally, Pumpkin brings both a world-class team and new technology using data and diagnostics to improve care decisions, both of which will benefit our global business moving forward.”
In 2021, JAB said it planned to deploy billions of dollars to build out its global pet insurance portfolio and has been quickly expanding into the market since then. Its current pet insurance portfolio includes AKC, ASPCA, Figo, Pet Partners and Pets Plus Us in the United States and Canada, and Agila, Animal Friends, Assur O’Poil, Everypaw and Pet Protect in the U.K. and Europe.
The company anticipates its pet insurance holdings to generate $1.5 billion in global gross written premium this year and to grow organically to $2 billion in 2024.
Additionally, the German conglomerate’s portfolio contains a large network of veterinary clinics, which generate a fair amount of data and help more accurately price pet insurance premiums.
According to Grand View Research, the global pet insurance market is expected to see a compound annual growth rate of 17% through 2030. Accelerated uptake of pet coverage in underdeveloped markets coupled with growing pet care costs and the “humanization of pets” are expected to be among the forces propelling the sector, according to the market research firm.
In addition to pet insurance and care, JAB is also the majority shareholder in Keurig Dr Pepper Inc. and Krispy Kreme, Inc.; a controlling shareholder in Panera Brands Inc., Caribou Coffee, Einstein Bros Bagels and Scandinavian coffee chain Espresso House and owns Swiss luxury brand Bally.
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