Aflac acquires 9% stake in Trupanion
Aflac and Trupanion have entered into an exclusive alliance to sell pet insurance in worksites across the US. This alliance will leverage Aflac’s brand and broad US worksite distribution network, including its digital Consumer Markets channel, and Trupanion’s “expertise and leadership” in pet insurance. The companies also have agreed to explore potential opportunities in Japan’s growing pet insurance market. In connection with the alliance agreement, Aflac will purchase an approximate 9% stake in Trupanion to further drive alignment.
“We are pleased to partner with Trupanion, the industry leader in U.S. pet insurance. With pet ownership on the rise and more Americans working from home, we see the opportunity for growth in what we view as a large, underpenetrated market. The alliance will combine Aflac’s brand recognition and broad worksite and direct to consumer distribution in the U.S. with Trupanion’s brand and strong reputation within the pet insurance industry.” – Frederick J. Crawford, president and Chief Operating Officer of Aflac.
Under the alliance agreement, Aflac will provide access to agent, broker and direct to consumer platform distribution and assistance in worksite product design, marketing and enrollment support. Trupanion will provide marketing, underwriting, and policy administration, including all aspects of policyholder support.
“The distribution alliance will provide for the further enhancement of Aflac’s value proposition by offering broader employee benefits and benefit solutions to our vast network of agents and brokers, as well as to employers and their employees in the US. We believe Trupanion’s offering provides our distribution partners with a benefit solution that they have been seeking from Aflac, and is a great complement to our core supplemental product portfolio.” – Teresa L. White, president of Aflac US.
“We are excited to enter the worksite through this alliance with Aflac and to have the company as a shareholder. Our shared long-term commitment is to leverage Aflac’s leadership position and broad distribution in the U.S. to unlock the potential of pet medical insurance being sold at the worksite and directly to consumers. We also look forward to exploring opportunities in Japan, where Aflac insures one in four households. Aflac is a world-class organization, and we share similar cultures and values. We feel honored to partner with them over the coming years to grow the pet insurance category in the U.S. and build our international footprint.” – Darryl Rawlings, founder and CEO of Trupanion.
The transaction will result in Aflac Incorporated investing approximately $200 million in newly issued Trupanion common stock subject to regulatory approvals. The investment terms include a cap on ownership of under 10%, and a minimum holding period, or “lock-up” provision, of three years, subject to certain exceptions.