MetLife Inc (MET)

[DewDiligence]

MET buys into health insurance for pets—a clear ‘Tailwind’ business:

https://finance.yahoo.com/news/metlife-acquire-u-pet-health-123000485.html

MetLife…and PetFirst Healthcare, LLC…today announced they have entered into a definitive agreement under which MetLife will acquire PetFirst.

Founded in 2004, PetFirst currently administers insurance coverage on more than 40,000 pets. It has a strong track record of delivering outstanding service to policyholders and maintaining trust through its emphasis on community and support of local humane societies and shelters. PetFirst currently distributes its pet insurance products through animal welfare agencies, direct-to-consumer channels and employers.

The acquisition will leverage MetLife’s position as a market leader in U.S. group benefits by enabling the company to offer a new benefit that is growing in popularity. Since 2014, the annual growth rate for the pet insurance industry has been more than 20 percent.

…The roughly 85 million families that own pets in the United States spend $18 billion annually on veterinary care, yet, as of 2018, less than 2 percent of pets were insured [so there’s a lot of upside here].

The deal is expected to close in the first quarter of 2020 subject to customary closing conditions and approvals.

The acquisition price has not been disclosed.

Note: MET is not in the heath-insurance-for-people business.