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Fairfax Additionally to Make Important Funding in JAB’s Newest Client Fund, which is able to Embrace Pet Insurance coverage as a Core A part of its Portfolio
WASHINGTON and TORONTO, June 20, 2022 (GLOBE NEWSWIRE) — JAB Holding Firm (“JAB”) and Fairfax Monetary Holdings Restricted (“Fairfax”) (TSX: FFH and FFH.U) as we speak 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 will even make a $200 million1 funding in JCP V, JAB’s newest shopper fund.
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Because of the transaction, by which Fairfax will obtain $1.4 billion within the type of $1.15 billion money and $250 million in vendor notes, JAB’s mixed international pet insurance coverage and ecosystem platform might be estimated to have gross written premiums and pet well being companies revenues of nicely over $1.2 billion by 2023, insuring greater than 2.1 million pets. The pet insurance coverage trade, which has been increasing at a fee of roughly 20% per 12 months on a world foundation, is anticipated to proceed to see a few years of regular, sturdy progress, pushed by engaging long-term tendencies in petcare and important alternatives to broaden penetration, particularly within the US and Canadian markets which have lower than 3% penetration. C&F Pet as we speak insures over 500,000 pets and markets or serves as underwriter for quite a few 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 america and Pets Plus Us in Canada. Pethealth gives 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.
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“Fairfax may be very glad to associate with Olivier Goudet and JAB Holding Firm,” stated Prem Watsa, the Founder, Chairman and CEO of Fairfax. ”JAB has had an impressive observe document over the previous 10 years and we count on this to proceed. Whereas we have now offered 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 count on 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,” stated Olivier Goudet, Managing Associate and CEO of JAB. “Prem has an unbelievable multi-decade observe document of constructing nice companies and compounding returns, and we stay up for accelerating the expansion of their pet insurance coverage enterprise as a part of our targeted pure-play pet insurance coverage platform.”
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“In the present day’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,” stated 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 via 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.”
“We’re extraordinarily happy with what we have now constructed and completed collectively within the animal welfare group and the pet insurance coverage ecosystem,” stated Gary McGeddy, President of Crum & Forster A&H. “We’re assured that JAB will proceed to take a position and give attention to pets and pet dad and mom whereas rising their international presence and we’re excited concerning the future and our partnership.”
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The transaction is topic to customary closing circumstances, together with numerous regulatory approvals, and is anticipated 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 sturdy progress prospects, engaging margin and money movement traits, and confirmed resiliency. Along with JAB Client Companions, JAB Holding Firm is the biggest shareholder of Keurig Dr Pepper, a frontrunner within the North American beverage market, and has controlling stakes in JDE Peet’s, the biggest pure-play fast-moving shopper items espresso firm on this planet; NVA, one of many world’s largest animal care companies platforms; Independence Pet Group, a number one supplier of pet insurance coverage; Krispy Kreme Doughnut, a world chief in doughnuts and different premium-quality candy treats; Panera Manufacturers, one of many world’s largest quick informal restaurant firms, which incorporates Panera Bread, Caribou Espresso and Einstein Bagels; Pret A Manger, a number one firm within the ready-to-eat meals market; and Espresso Home, the biggest branded espresso store chain in Scandinavia. JAB Holding Firm can be the biggest shareholder in Coty Inc., a world chief in magnificence, and owns luxurious items firm Bally.
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About Fairfax
Fairfax Monetary Holdings Restricted is a holding firm which, via 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 individuals get entry to dependable and inexpensive pet insurance policy. From routine exams to sudden 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 new developments within the trade. 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 via two manufacturers 24Pet and VioVet. 24Pet are the consultants 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 maintain them glad, wholesome, and residential. VioVet is a UK registered veterinary on-line pet retailer that provides quite a lot of pet and horse provides, together with prescription and non-prescription medicines, dietary supplements, meals, toys and extra.
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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 via 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 via 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 cellular pleasant Pet Cloud that permits shoppers to handle their pet’s healthcare, socially interact with fellow pet dad and mom, and simply uncover and find companies inside the pet ecosystem, and Third Social gathering 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.
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Media Contacts
JAB: Tom Johnson or Jake Yanulis, Abernathy MacGregor, [email protected] or [email protected]
Crum & Forster Pet: Hallie Harenski, Head of Company Communications at [email protected]
Fairfax: John Varnell, Vice President, Company Growth at (416) 367-4941
Independence Pet Group: Amanda Trcka, Advertising Communications and PR Supervisor at (203) 231-9975 or [email protected]
Ahead Wanting Statements
Sure statements contained herein could represent forward-looking statements and are made pursuant to the “secure harbour” provisions of america 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 recognized and unknown dangers, uncertainties and different components which can trigger the precise outcomes, efficiency or achievements of Fairfax to be materially completely different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. Such components embrace, however are usually 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 can be greater or decrease than anticipated; the prevalence of catastrophic occasions with a frequency or severity exceeding our estimates; adjustments in market variables, together with rates of interest, overseas trade charges, fairness costs and credit score spreads, which might negatively have an effect on our funding portfolio;
dangers related to the worldwide pandemic attributable to a novel pressure of coronavirus (“COVID-19”), and the associated international discount in commerce and substantial downturns in inventory markets worldwide; the cycles of the insurance coverage market and normal financial circumstances, which may considerably affect our and our opponents’ premium charges and capability to put in writing new enterprise; inadequate reserves for asbestos, environmental and different latent claims; publicity to credit score threat within the occasion our reinsurers fail to make funds to us below our reinsurance preparations; publicity to credit score threat within the occasion our insureds, insurance coverage producers or reinsurance intermediaries fail to remit premiums which can be owed to us or failure by our insureds to reimburse us for deductibles which can be paid by us on their behalf; our incapacity to take care of our long run debt scores, the lack of our subsidiaries to take care of monetary or claims paying means scores and the impression of a downgrade of such scores 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 attain their desired threat administration goal; a lower within the degree of demand for insurance coverage or reinsurance merchandise, or elevated competitors within the insurance coverage trade; the impression of rising declare and protection points or the failure of any of the loss limitation strategies we make use of; our incapacity to entry money of our subsidiaries; our incapacity to acquire required ranges of capital on beneficial phrases, if in any respect; the lack of key workers; our incapacity to acquire reinsurance protection in enough quantities, at affordable costs or on phrases that adequately shield us; the passage of laws subjecting our companies to further antagonistic necessities, supervision or regulation, together with further tax regulation, in america, Canada or different jurisdictions by which we function; dangers related to authorities investigations of, and litigation and destructive publicity associated to, insurance coverage trade follow or some other conduct; dangers related to political and different developments in overseas jurisdictions by which we function; dangers related to authorized or regulatory proceedings or important litigation; failures or safety breaches of our laptop and knowledge processing methods; the affect exercisable by our important shareholder; antagonistic fluctuations in overseas forex trade charges; our dependence on impartial brokers over whom we train little management; impairment of the carrying worth of our goodwill, indefinite-lived intangible property or investments in associates; our failure to comprehend deferred earnings tax property; technological or different change which adversely impacts demand, or the premiums payable, for the insurance coverage coverages we provide; disruptions of our data expertise methods; assessments and shared market mechanisms which can adversely have an effect on our insurance coverage subsidiaries; antagonistic penalties to our enterprise, our investments and our personnel ensuing from or associated to the COVID-19 pandemic; and the failure to finish or understand the anticipated advantages of the transaction described above. Extra dangers and uncertainties are described in Fairfax’s most not too long ago issued Annual Report which is obtainable at www.fairfax.ca and in Fairfax’s Base Shelf Prospectus (below “Threat Components”) filed with the securities regulatory authorities in Canada, which is obtainable 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 new data, 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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