JAB’s Pet Insurance coverage Enterprise to Purchase World Pet

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WASHINGTON and TORONTO, June 20, 2022 (GLOBE NEWSWIRE) — JAB Holding Firm (“JAB”) and Fairfax Monetary Holdings Restricted (“Fairfax”) (TSX: FFH and FFH.U) right now introduced a transformational strategic partnership, by which JAB’s pet insurance coverage enterprise has agreed to accumulate all of Fairfax’s pursuits within the Crum & Forster Pet Insurance coverage Group™ (“C&F Pet”) and Pethealth Inc., together with all of their worldwide operations. As a part of the transaction, Fairfax can even make a $200 million1 funding in JCP V, JAB’s newest client fund.

Because of this of the transaction, by which Fairfax will obtain $1.4 billion in the shape of $1.15 billion money and $250 million in vendor notes, JAB’s mixed world pet insurance coverage and ecosystem platform will likely be estimated to have gross written premiums and pet well being companies revenues of properly over $1.2 billion by 2023, insuring greater than 2.1 million pets. The pet insurance coverage business, which has been increasing at a charge of roughly 20% per yr on a worldwide foundation, is predicted to proceed to see a few years of regular, robust development, pushed by engaging long-term traits in petcare and vital alternatives to broaden penetration, particularly within the US and Canadian markets which have lower than 3% penetration. C&F Pet right now insures over 500,000 pets and markets or serves as underwriter for various manufacturers, together with ASPCA® Pet Well being Insurance coverage, 24Petprotect, Hartville Pet Insurance coverage, Spot Insurance coverage Providers, Pumpkin Insurance coverage Providers and PetCoach, LLC (supplier of Petco pet insurance policy) in the USA and Pets Plus Us in Canada. Pethealth offers wellbeing and security options to shelters and pet dad and mom below the 24Pet model, which incorporates the 24Petwatch Registry with over 20 million registered pets.

“Fairfax could be very completely satisfied to associate with Olivier Goudet and JAB Holding Firm,” mentioned Prem Watsa, the Founder, Chairman and CEO of Fairfax. ”JAB has had an impressive observe file over the previous 10 years and we anticipate this to proceed. Whereas we have now 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. We want them a lot success.”

“We’re extraordinarily excited to associate with Prem and his group on this transformational transaction, and to welcome them as a associate in our fund,” mentioned Olivier Goudet, Managing Accomplice and CEO of JAB. “Prem has an unbelievable multi-decade observe file of constructing nice companies and compounding returns, and we look ahead to accelerating the expansion of their pet insurance coverage enterprise as a part of our centered pure-play pet insurance coverage platform.”

“At present’s transaction is a significant milestone for us in our mission to turn out to be a worldwide chief in pet insurance coverage and the pet well being ecosystem,” mentioned Dirk Beeckman, CEO of JAB’s pet insurance coverage portfolio. “It additionally considerably advances our mission of offering the main well being and wellbeing ecosystem for pets by means of the providing of reasonably priced, 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 look ahead to working with the crew.”

“We’re extraordinarily happy with what we have now constructed and completed collectively within the animal welfare neighborhood and the pet insurance coverage ecosystem,” mentioned Gary McGeddy, President of Crum & Forster A&H. “We’re assured that JAB will proceed to speculate and deal with pets and pet dad and mom whereas rising their world presence and we’re excited concerning the future and our partnership.”

The transaction is topic to customary closing circumstances, together with numerous regulatory approvals, and is predicted to shut within the second half of 2022.

About JAB

JAB Holding Firm invests in consumer-focused industries with engaging long-term dynamics, together with robust development prospects, engaging margin and money stream traits, and confirmed resiliency. Along with JAB Client Companions, JAB Holding Firm is the most important shareholder of Keurig Dr Pepper, a pacesetter within the North American beverage market, and has controlling stakes in JDE Peet’s, the most important pure-play fast-moving client items espresso firm on this planet; NVA, certainly one of the world’s largest animal care companies platforms; Independence Pet Group, a number one supplier of pet insurance coverage; Krispy Kreme Doughnut, a worldwide chief in doughnuts and different premium-quality candy treats; Panera Manufacturers, certainly one of the world’s largest quick informal restaurant corporations, which incorporates Panera Bread, Caribou Espresso and Einstein Bagels; Pret A Manger, a number one firm within the ready-to-eat grocery store; and Espresso Home, the most important branded espresso store chain in Scandinavia. JAB Holding Firm can also be the most important shareholder in Coty Inc., a worldwide chief in magnificence, and owns luxurious items firm Bally.

About Fairfax

Fairfax Monetary Holdings Restricted is a holding firm which, by means of its subsidiaries, is primarily engaged in property and casualty insurance coverage and reinsurance and the related funding administration.

About Crum & Forster Pet

For over 20 years, Crum & Forster Pet Insurance coverage Group™ has been dedicated to serving to folks get entry to dependable and reasonably priced pet insurance policy. From routine exams to surprising sicknesses, our plans can be found to pet dad and mom of cats and canine. Plans are customizable based mostly on particular person wants, together with protection ranges, coverage limits, and deductibles. We delight ourselves on pioneering latest developments within the business. Crum & Forster Pet Insurance coverage Group is founding member of the North American Pet Well being Insurance coverage Affiliation (NAPHIA). Pethealth Inc. affords pet companies by means of two manufacturers 24Pet and VioVet. 24Pet are the specialists in misplaced pet options, pet adoptions, animal welfare and shelter help. A household of platforms, companies, merchandise, and folks, obsessive about pets. From connecting them with loving households, to defending and serving to preserve them completely satisfied, wholesome, and residential. VioVet is a UK registered veterinary on-line pet retailer that provides a wide range of pet and horse provides, together with prescription and non-prescription drugs, dietary supplements, meals, toys and extra.

About Independence Pet Group

Independence Pet Group is an built-in, full-stack pet insurance coverage platform not directly majority owned by JAB Holding Firm. It affords a complete vary of underwriting choices, turnkey associate options, and consumer-facing insurance coverage merchandise by means of its wholly personal subsidiary, Independence American Insurance coverage Firm, a number one supplier of underwriting companies to the pet insurance coverage sector with licenses in all 50 states. It is also a majority shareholder in Pet Companions, Inc., which distributes and administers by means of world-class pet insurance coverage manufacturers AKC Pet Insurance coverage and its worksite model, PetPartners. PetPartners in flip owns Figo, a number one direct-to-consumer model which makes use of a extremely participating and cell pleasant Pet Cloud that permits shoppers to administer their pet’s healthcare, socially have interaction with fellow pet dad and mom, and simply uncover and find companies throughout the pet ecosystem, and Third Occasion Pet, offering enterprise companies to breeders, pet retailers and their prospects starting from stay pet stock administration software program, scheduling and facilitating adoptions, micro-chip and registration companies and customised pet merchandise.

Media Contacts

JAB: Tom Johnson or Jake Yanulis, Abernathy MacGregor, tbj@abmac.com or jjy@abmac.com

Crum & Forster Pet: Hallie Harenski, Head of Company Communications at mediainquiries@cfins.com

Fairfax: John Varnell, Vice President, Company Improvement at (416) 367-4941

Independence Pet Group: Amanda Trcka, Advertising and marketing Communications and PR Supervisor at (203) 231-9975 or atrcka@petpartners.com

Ahead Trying Statements

Sure statements contained herein could represent forward-looking statements and are made pursuant to the “protected harbour” provisions of the USA Personal Securities Litigation Reform Act of 1995 and relevant Canadian securities legal guidelines. Notably, statements concerning the transaction described above and the phrases thereof (together with regarding the phrases, circumstances and the timing for closing of the proposed transaction described above) are forward-looking statements. Such forward-looking statements are topic to identified and unknown dangers, uncertainties and different aspects which can trigger the precise outcomes, efficiency or achievements of Fairfax to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. Such aspects embody, however usually are not restricted to: failure to finish the transaction described above which is topic to customary circumstances; discount in internet earnings if our loss reserves are inadequate; underwriting losses on the dangers we insure which are increased or decrease than anticipated; the incidence of catastrophic occasions with a frequency or severity exceeding our estimates; modifications in market variables, together with rates of interest, international trade charges, fairness costs and credit score spreads, which might negatively have an effect on our funding portfolio; dangers related to the worldwide pandemic brought on by a novel pressure of coronavirus (“COVID-19”), and the associated world discount in commerce and substantial downturns in inventory markets worldwide; the cycles of the insurance coverage market and basic financial circumstances, which may considerably affect our and our rivals’ premium charges and capability to write down latest enterprise; inadequate reserves for asbestos, environmental and different latent claims; publicity to credit score danger within the occasion our reinsurers fail to make funds to us below our reinsurance preparations; publicity to credit score danger within the occasion our insureds, insurance coverage producers or reinsurance intermediaries fail to remit premiums which are owed to us or failure by our insureds to reimburse us for deductibles which are paid by us on their behalf; our lack of ability to keep up our long run debt rankings, the lack of our subsidiaries to keep up monetary or claims paying means rankings and the impression of a downgrade of such rankings on spinoff transactions that we or our subsidiaries have entered into; dangers related to implementing our enterprise methods; the timing of claims funds being sooner or the receipt of reinsurance recoverables being later than anticipated by us; dangers related to any use we could make of spinoff devices; the failure of any hedging strategies we could make use of to realize their desired danger administration goal; a lower in the extent of demand for insurance coverage or reinsurance merchandise, or elevated competitors within the insurance coverage business; the impression of rising declare and protection points or the failure of any of the loss limitation strategies we make use of; our lack of ability to entry money of our subsidiaries; our lack of ability to acquire required ranges of capital on beneficial phrases, if in any respect; the lack of key workers; our lack of ability to acquire reinsurance protection in enough quantities, at affordable costs or on phrases that adequately defend us; the passage of laws subjecting our companies to extra opposed necessities, supervision or regulation, together with extra tax regulation, in the USA, Canada or different jurisdictions by which we function; dangers related to authorities investigations of, and litigation and unfavourable publicity associated to, insurance coverage business apply or some other conduct; dangers related to political and different developments in international jurisdictions by which we function; dangers related to authorized or regulatory proceedings or vital litigation; failures or safety breaches of our pc and knowledge processing methods; the affect exercisable by our vital shareholder; opposed fluctuations in international forex trade charges; our dependence on unbiased brokers over whom we train little management; impairment of the carrying worth of our goodwill, indefinite-lived intangible belongings or investments in associates; our failure to understand deferred earnings tax belongings; technological or different change which adversely impacts demand, or the premiums payable, for the insurance coverage coverages we provide; disruptions of our info know-how methods; assessments and shared market mechanisms which can adversely have an effect on our insurance coverage subsidiaries; opposed penalties to our enterprise, our investments and our personnel ensuing from or associated to the COVID-19 pandemic; and the failure to finish or notice the anticipated advantages of the transaction described above. Further dangers and uncertainties are described in Fairfax’s most not too long ago issued Annual Report which is on the market at www.fairfax.ca and in Fairfax’s Base Shelf Prospectus (below “Danger Aspects”) filed with the securities regulatory authorities in Canada, which is on the market on SEDAR at www.sedar.com. Fairfax disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not because of this of latest info, future occasions or in any other case, besides as required by relevant securities regulation.

1 All greenback quantities within the information launch are expressed in U.S. {dollars} until in any other case famous.

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