MetLife, Inc., and PetFirst Healthcare, LLC, a pet health insurance administrator, have entered into a definitive agreement under which MetLife will acquire PetFirst.
Founded in 2004, PetFirst currently administers insurance coverage on more than 40,000 pets. PetFirst currently distributes its pet insurance products through animal welfare agencies, direct-to-consumer channels, and employers.
In a statement, MetLife said that the acquisition will enable it to offer a new benefit that is growing in popularity. Since 2014, the annual growth rate for the pet insurance industry has been more than 20 percent.
"Pet insurance has become an increasingly important voluntary benefit, and this transaction allows us to capitalize on this rapidly growing market opportunity," said Ramy Tadros, president of U.S. business for MetLife. "Today's employees have an increasing expectation of their employer to support their lives holistically, and offering pet insurance provides our customers' employees additional support against unexpected out-of-pocket pet health expenses. PetFirst is a leading pet health insurance administrator and we look forward to welcoming the talented PetFirst team to the MetLife family."
According to MetLife, the roughly 85 million families that own pets in the United States spend $18 billion annually on veterinary care, yet, as of 2018, fewer than two percent of pets were insured.
MetLife said that, following the acquisition, PetFirst will continue to market pet insurance through animal welfare societies and its direct-to-consumer channel. Beginning in the summer of 2020, MetLife will offer this pet insurance to employers through its group benefits distribution channel, reaching approximately 41 million employees and dependents across the United States.
Katie Blakeley, chief executive officer of PetFirst, said, "For more than 15 years, we have proudly focused on developing products and services to meet the growing and evolving needs of pet parents across the U.S. During this time, we have seen pet insurance continue to gain importance as a valuable product for families. With MetLife's tremendous reach and resources, we see a strong opportunity to help more pet parents get access to pet insurance and alleviate the potential financial burden of a sick or injured pet."
MetLife said that it expected the deal to close in the first quarter of 2020 subject to customary closing conditions and approvals.
Learn more: www.metlife.com, www.PetFirst.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].