Funding

• Barkibu raised EUR 4.5 million (~USD 5 million) in a funding round led by Kfund, with participation from Mundi Ventures to improve and expand its pet health insurance and preventive care services. (May 04, 2023; Novobrief, FinSMEs)

New product/service

• PetPartners introduced OnePack Plan, an employer-based group pet insurance offering that is customizable and can be integrated with benefits management platforms. (May 11, 2023; Press release, Coverager)

• Hedvig expanded its insurance offerings to include pet insurance for cats and dogs in collaboration with FirstVet, an on-demand veterinary service provider. The pet insurance packages offer three deductible options: SEK 0, SEK 2,500, or SEK 3,500, and in addition to the fixed deductible, a variable deductible of 15% or 25% based on the cost of care. However, if policyholders schedule a digital veterinary visit with FirstVet and obtain a referral to a clinic, the fixed deductible will always be SEK 1,000. (May 12, 2023; Coverager)

• ManyPets announced the discontinuation of its operations in Sweden due to Great Lakes Insurance SE, its underwriter, deciding to cease offering pet insurance in the country. However, it reached an agreement with Hedvig to provide ManyPets customers with a new insurance plan as an alternative option. (May 25, 2023; Coverager)

M&A

• JAB Holding Company (JAB) acquired Pumpkin Insurance Services (Pumpkin), a pet insurance provider, from its parent company, Zoetis (an animal healthcare company), to strengthen its suite of pet insurance solutions. However, Zoetis will maintain a significant minority stake in Pumpkin and will continue with its existing commercial partnerships with the latter. (May 16, 2023; Press release) 

Earnings/results

• Lemonade reported revenue growth of 115% YoY to USD 95.2 million in Q1 2023, driven by higher gross earned premium (GEP; up 60.6% YoY) and reduced ceded premium to reinsurers. The growth in GEP was supported by increased in-force premiums (IFP; up 55.9% YoY), a larger customer base (~1.9 million customers), and higher average premiums per customer (up 26.2% YoY). It reported a net loss per share of USD 0.95 in Q1 2023, an improvement from a loss per share of USD 1.21 in Q1 2022. In terms of guidance, the company estimated GEP for Q2 2023 to be in the range of USD 156 million–158 million, implying a growth of 46.1%–47.9% YoY. For FY2023, the company revised its guidance upwards; it projects IFP to be in the range of USD 700 million–705 million (implying an increase of 12.0%–12.8% YoY), and to achieve GEP in the range of USD 645 million–650 million (implying a growth of 31.5%–32.5% YoY). (May 03, 2023; Earnings release)

• Rover reported revenue growth of 48% YoY to USD 41.1 million in Q1 2023, driven by a 27% YoY increase in bookings. In Q1 2023, the company's GAAP net loss was USD 4.7 million, compared to USD 8.1 million in Q1 2022. Adjusted EBITDA and adjusted EBITDA margin were USD 0.6 million and 1%, respectively, compared to a loss of USD 4.8 million in Q1 2022. The company revised its FY2023 guidance, with revenue to range from USD 207 million to USD 217 million, an increase from the previous range of USD 205 million to USD 215 million, and adjusted EBITDA in the range of USD 29 million to USD 34 million, compared to the previous range of  USD 25 million to USD 30 million. (May 08, 2023; Press release, Earnings presentation)

• Wag! reported revenue growth of 113% YoY to USD 20.6 million in Q1 2023. The growth can be partly attributed to the introduction of a new source of income, namely "pet food and treats," achieved through the acquisition of Dog Food Advisor. While the net loss for Q1 2023 was USD 3.8 million compared to USD 2.4 million in Q1 2022, the adjusted EBITDA loss improved to USD 0.4 million from USD 2.1 million in the same period last year. Wag! revised its FY2023 guidance, expecting revenue to range from USD 80 million to USD 84 million, an increase from the previous range of USD 75 million to USD 77 million. The adjusted EBITDA was projected to range from break-even to a profit of  USD 1 million, compared to the previous range of break-even to a loss of USD 2 million. (May 09, 2023; Press release, Earnings presentation)

Industry News

Lemonade announced its plans to lay off 3% of its workforce (which amounts to 45 employees); the majority of workers are from the R&D department. Almost 30 of the employees who were made redundant are based in Israel and represent ~10% of the company's workforce in the country. (May 16, 2023; CTech, Globes)