(E33935) Stock Price

iPet Insurance is a pet-specialized insurance company that has been operating in the pet insurance business since 2004. The company offers four products under its "Uchi no Ko" (Our Child) series, including medical expense insurance for dogs and cats as well as coverage for exotic animals, with over 500,000 policies in force. Based on the philosophy that "pets are family members," the company aims to create an environment where pet owners can confidently provide treatment for their pets.

The company's primary customers are individual pet owners with dogs or cats, and revenue is generated through insurance premiums. Sales channels are divided into two main categories: approximately 1,058 agencies nationwide (primarily 749 pet shop agencies and 309 general agencies) and direct sales through the internet. Since 2019, the company has also expanded its distribution channels through a business partnership with Dai-ichi Life, enabling sales through life insurance company sales representatives.

The product lineup is segmented according to customer needs, offering "Uchi no Ko" and "Uchi no Ko Plus" for comprehensive coverage from outpatient care to surgery, "Uchi no Ko Light" specialized in surgical coverage, and "Uchi no Ko Cute" for exotic animals. A key feature of the company is its network of 5,054 iPet-affiliated animal hospitals nationwide, which provides customers with the convenience of paying only their out-of-pocket portion at the point of service. Over 70% of insurance claims utilize this direct settlement service.

iPet Insurance has a clear growth strategy in the rapidly expanding pet insurance market. The company set an ambitious numerical target in its three-year medium-term management plan starting in 2018 to "double operating revenue from insurance operations within five years." By March 2020, it achieved 500,000 policies in force, exceeding its initial target of 485,000 and continuing to grow at a faster-than-expected pace. To support this growth, the company is simultaneously pursuing three pillars: expanding pet shop agencies, diversifying sales channels through a business partnership with Dai-ichi Life, and strengthening direct internet sales.

In priority investment areas, the company is focusing on expanding the "iPet Partner Animal Hospital System," which provides convenient service at 5,054 facilities nationwide where customers pay only their out-of-pocket portion at the point of care. The company has also built a sales network across 15 nationwide locations, leveraging the industry's largest sales infrastructure to strengthen agency support. On the product side, "Uchi no Ko Lite," a surgery-focused plan, has captured the number-one market share for seven consecutive years, demonstrating differentiation through a segmented strategy tailored to customer needs.

The core of new market development is the transition to a holding company structure planned for October 2020. Subject to Financial Services Agency approval, the company aims to expand into business areas beyond pet insurance, pursuing a diversification strategy centered on improving the living environment for pets and their owners. This strategy is designed to increase revenue per customer and achieve efficiency gains through shared customer acquisition, administrative, and system functions across the group. The company envisions comprehensive business initiatives addressing social issues in the pet industry, including euthanasia prevention, aging of pets and owners, and residential environment improvements.

In technological innovation, the company positions digital transformation as a ladder for growth. RPA implementation has achieved operational efficiency equivalent to 25,000 annual work hours, while the company is advancing enhanced customer portal features and one-to-one marketing through CRM systems. Continuous strengthening of core systems enables the company to handle growing policy volumes, while ESG management initiatives aim to balance environmental impact reduction with social contribution. Through initiatives such as an animal welfare partnership agreement with Aomori Prefecture, the company is building a sustainable growth foundation by addressing social issues through its business operations.