JAB Holding Company and Fairfax Financial Holdings Limited said that JAB’s pet insurance business agreed to acquire all of Fairfax’s interests in the Crum & Forster Pet Insurance Group and PetHealth Inc., including all of their worldwide operations.
Fairfax will receive $1.4 billion in the form of $1.15 billion cash and $250 million in seller notes. JAB said its combined global pet insurance and ecosystem platform will grow to have gross written premiums and pet health services revenues of well over $1.2 billion by 2023, insuring more than 2.1 million pets. The transaction, subject to conditions and regulatory approvals, is expected to close in the second half of 2022.
“Fairfax is very happy to partner with Olivier Goudet (managing partner and CEO of JAB) and JAB Holding Company,” said Prem Watsa, the founder, chairman and CEO of Fairfax. “JAB has had an outstanding track record over the past 10 years and we expect this to continue. While we have sold our pet insurance business to JAB, we will invest $200 million in their JCP V to become their partners. We expect JAB to soon become leaders in pet healthcare and pet insurance globally. We wish them much success.”