ManyPets looking to sell US carrier

Pet insurance startup ManyPets is looking to sell the US licensed carrier it acquired in late 2022 from Munich Re.

At the end of last year, management disclosed in a regulatory filing that Many Insurance Company was being strategically evaluated. The carrier did not write insurance business in 2023 and one point of discussion was the timing of beginning to accept new business.

In a recent regulatory filing, the parent company of Many Insurance Company has disclosed that it executed a letter of intent and began negotiations to sell the carrier. At the end of 2023, Many Insurance Company held assets totaling $17.9 million.

Last year, we covered ManyPets and its decision to pause marketing in the US and exit the Swedish market. The startup’s main business is in the UK and for the year ended March 31, 2023, it reported a £42 million loss.

In the US, ManyPets sells pet insurance underwritten by Accredited Surety and Casualty Company and in 2023, Accredited reported $21 million in written premiums produced by ManyPets. The carrier has been requesting significant rate increases in several states, along with shifting the deductible from $250 to $500. In some of the filings, Accredited writes that “it has come to light” that its initial rate filing was based on “outdated data and rates” that no longer accurately reflect the evolving risk landscape for pets’ health. The company also shared that it has become apparent that its current pet insurance rates have inadvertently led to adverse selection, resulting in an imbalance within its policyholder risk pool. “The disproportionate enrollment of high-risk policyholders has driven up claim costs, posing a significant financial risk to our operations,” the company stated.

Earlier this year, group CEO and cofounder Steven Mendel decided to leave the company.