Insurance gigant Chubb announced in April a definitive agreement to acquire Healthy Paws, a U.S.-based managing general agent specializing in pet insurance, from Aon, a leading global professional services firm.
The transaction positions Chubb to expand in a niche market with substantial growth potential.
In its 10-Q filings, the insurer reported acquiring the business for about $300 mn in cash.
Chubb recorded $256 mn in goodwill and $39 mn in intangible assets from this acquisition. Chubb has exclusively underwritten for Healthy Paws since 2013.
Since 2013, Chubb has been the exclusive underwriter of the Healthy Paws pet insurance program for Aon (see What is the Cost of Pet Insurance?).
The long-standing Chubb and Healthy Paws relationship positions the combination for accelerated growth while supporting a seamless transition for employees, customers and other business partners.
Together, we will be able to extend the reach and amplify the impact of this pet insurance brand in a vastly underpenetrated market
John Lupica, Vice Chairman, Chubb Group and President, North America Insurance
“As part of Chubb, Healthy Paws will empower more pet owners to fund medical care and navigate the rising costs of veterinary care,” said John Lupica, Vice Chairman, Chubb Group and President, North America Insurance.
Healthy Paws generated $331 mn in premium for Chubb in 2023, showing a low acquisition multiple compared to other market transactions.
For example, the acquisition of FIGO had a deal value of around $250 mn at a multiple of about 7x its premium.
Founded in 2009, Healthy Paws has been a trailblazer in the pet insurance domain and currently serves more than 500,000 dogs and cats in the U.S. The company provides program and claims administration via a digital proprietary platform.
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