JAB’s Pet Insurance coverage Enterprise to Purchase World Pet Insurance coverage Operations of Fairfax Monetary, Increasing Its Presence within the Quick-Rising Business

WASHINGTON & TORONTO–(BUSINESS WIRE)–JAB Holding Firm (“JAB”) and Fairfax Monetary Holdings Restricted (“Fairfax”) (TSX: FFH and FFH.U) in the present day introduced a transformational strategic partnership, through which JAB’s pet insurance coverage enterprise has agreed to amass 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 may even make a $200 million¹ funding in JCP V, JAB’s newest client fund.

Because of the transaction, through 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 can 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 trade, which has been increasing at a charge of roughly 20% per 12 months on a world foundation, is anticipated to proceed to see a few years of regular, sturdy development, pushed by engaging long-term developments in petcare and vital alternatives to increase penetration, particularly within the US and Canadian markets which have lower than 3% penetration. C&F Pet in the present day 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 Companies, Pumpkin Insurance coverage Companies and PetCoach, LLC (supplier of Petco pet insurance policy) in the USA and Pets Plus Us in Canada. Pethealth gives wellbeing and security options to shelters and pet mother and father underneath the 24Pet model, which incorporates the 24Petwatch Registry with over 20 million registered pets.

“Fairfax may be very joyful to associate with Olivier Goudet and JAB Holding Firm,” stated Prem Watsa, the Founder, Chairman and CEO of Fairfax. ”JAB has had an excellent monitor document over the previous 10 years and we anticipate this to proceed. Whereas we’ve got bought our pet insurance coverage enterprise to JAB, we are going to make investments $200 million of their JCP V to grow to be their companions. We anticipate JAB to quickly grow 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 Accomplice and CEO of JAB. “Prem has an unimaginable multi-decade monitor document 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 targeted pure-play pet insurance coverage platform.”

“Right now’s transaction is a significant milestone for us in our mission to grow 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 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 suits completely with our tradition, and we look ahead to working with the crew.”

“We’re extraordinarily happy with what we’ve got 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 speculate and deal with pets and pet mother and father whereas rising their international presence and we’re excited in regards to the future and our partnership.”

The transaction is topic to customary closing circumstances, together with varied 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 development prospects, engaging margin and money stream 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 client items espresso firm on the 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 corporations, 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 also be the biggest shareholder in Coty Inc., a world chief in magnificence, and owns luxurious items firm Bally.

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 reasonably priced pet insurance policy. From routine exams to surprising diseases, our plans can be found to pet mother and father of cats and canine. Plans are customizable based mostly on particular person wants, together with protection ranges, coverage limits, and deductibles. We satisfaction 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. provides 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 preserve them joyful, 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 provides 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 partaking and cell pleasant Pet Cloud that permits customers to handle their pet’s healthcare, socially have interaction with fellow pet mother and father, and simply uncover and find companies inside the pet ecosystem, and Third Celebration Pet, offering enterprise companies to breeders, pet retailers and their prospects starting from reside pet stock administration software program, scheduling and facilitating adoptions, micro-chip and registration companies and customised pet merchandise.

Ahead Trying Statements

Sure statements contained herein could represent forward-looking statements and are made pursuant to the “secure harbour” provisions of the USA Personal Securities Litigation Reform Act of 1995 and relevant Canadian securities legal guidelines. Notably, statements in regards to the transaction described above and the phrases thereof (together with referring to 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 elements 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 elements embody, 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 are larger 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 alternate 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 international discount in commerce and substantial downturns in inventory markets worldwide; the cycles of the insurance coverage market and normal financial circumstances, which might considerably affect our and our opponents’ premium charges and capability to write down 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 underneath our reinsurance preparations; publicity to credit score threat 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 incapability to keep up our long run debt rankings, the shortcoming of our subsidiaries to keep up monetary or claims paying capability rankings and the impression of a downgrade of such rankings on by-product 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 by-product devices; the failure of any hedging strategies we could make use of to attain their desired threat administration goal; a lower within the stage 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 incapability to entry money of our subsidiaries; our incapability to acquire required ranges of capital on beneficial phrases, if in any respect; the lack of key staff; our incapability to acquire reinsurance protection in enough quantities, at cheap 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 through which we function; dangers related to authorities investigations of, and litigation and unfavourable publicity associated to, insurance coverage trade follow or some other conduct; dangers related to political and different developments in overseas jurisdictions through which we function; dangers related to authorized or regulatory proceedings or vital litigation; failures or safety breaches of our laptop and knowledge processing methods; the affect exercisable by our vital shareholder; opposed fluctuations in overseas forex alternate 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 comprehend deferred revenue 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 expertise 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 lately issued Annual Report which is accessible at www.fairfax.ca and in Fairfax’s Base Shelf Prospectus (underneath “Threat Elements”) filed with the securities regulatory authorities in Canada, which is accessible on SEDAR at www.sedar.com. Fairfax disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case, besides as required by relevant securities legislation.

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