JAB acquires Embrace Pet Insurance for $1.5 billion

NSM Insurance Group , a Carlyle company, is selling Embrace Pet Insurance to JAB Holding Company in a deal worth $1.5 billion, according to a Coverager source. This Embrace Pet Insurance acquisition marks a new chapter for Embrace Pet Insurance. The company was co-founded by Laura Bennett and Alex Krooglik in 2003, and acquired by NSM in 2019.

A Dynamic Landscape

Embrace Pet Insurance is known for pet policies underwritten by American Modern, a Munich Re company. It attracts about 913,802 monthly site visitors. This is partly due to its affinity relationships with carriers such as GEICO and USAA. However, a recent shift has occurred, with GEICO now directing pet prospects not only to Embrace but also to Trupanion.

A Consolidator

JAB, the parent company of Independence Pet Group (IPG), operates brands like PetPartners, Felix, and Toto. IPG recently secured an underwriting agreement with Pets Best, a company whose policies were previously solely underwritten by Trupanion. Recently, a JAB subsidiary announced its plans to acquire Pets Best from Synchrony. Synchrony expects a profit of about $750 million after taxes following the closure of this deal.

JAB has acquired over 14 pet-related companies in North America and Europe. This shows a mix of organic and inorganic growth strategies. Meanwhile, publicly traded pet companies like Trupanion and Lemonade have primarily concentrated on organic growth methods. However, Trupanion has made some forays into acquisitions, taking over European businesses PetExpert and Pet Smart Paws. Additionally, Trupanion introduced two affordable, direct-to-consumer pet brands, Furkin and PHI Direct that for now operate in Canada. However, these two entities have not yet achieved scale.

Brands under JAB include Assur O’Poil, Embrace Pet, FIGO, Independence Pet Group/IPG (which encompasses 24PetWatch, AKC Pet Insurance, Crum & Forster Pet Insurance Group, Hartville Pet Insurance, Independence American Insurance Company, Pethealth, PetKey, PetPartners, PetPlace, PetPoint, Pets Plus Us, Third Party Pet), Pinnacle Pet Group (the parent company of AGILA Haustierversicherung, Animal Friends, CaptainVet, HD Assurances), and Pumpkin Petcare.

Bottom Line: Every other pet brand is a JAB brand.