(E35826) Stock Price

iPet Holdings is a holding company with pet insurance as its core business. Through its subsidiary iPet Insurance, the company offers four pet insurance products for dogs and cats, including the "Uchi no Ko" series covering veterinary medical expenses and "Uchi no Ko Lite," which specializes in surgery costs. The company also operates an online pet health consultation service, supporting a rich life for pets and their owners.

The company's primary customers are pet owners nationwide, with insurance premium income as its main revenue source. The sales channels are divided into two categories: agency sales through 867 pet shops and 362 general agencies nationwide, and direct sales via the internet. A key competitive advantage is the ability to enroll in insurance at the time of pet purchase at pet shops. At 5,550 partner animal hospitals across the country, insurance claim settlements are available at the point of service.

Business segments consist primarily of the pet insurance business and the online pet health consultation business. The pet insurance business offers product lines tailored to customer needs, ranging from comprehensive coverage types that cover outpatient care through surgery to low-cost types specialized in surgery. Through its subsidiary Pets O'Rai, the company provides online consultation services with veterinarians and dog trainers and is developing the digital authentication app "Wan!Pass," aiming to expand pet-friendly facilities.

iPet Holdings is implementing a three-year medium-term management plan from fiscal 2022, positioning this period as a foundation-strengthening phase. In its core pet insurance business, the company has set three priority strategies: "top-line growth with quality," "productivity improvement," and "management base strengthening." The company's policy count reached approximately 730,000 as of March 2022, representing solid growth of 17.1% year-over-year. The pet insurance market expanded to 101.7 billion yen in 2021, and the company maintains the top market position with a 26.8% market share while pursuing further growth.

To enhance profitability through differentiation, the company leverages its unique strength of point-of-service settlement at 5,550 partner veterinary hospitals nationwide. Through product revisions, it has raised premiums for younger policyholders and lowered them for older ones, simultaneously controlling loss ratios and improving retention rates. The company strengthens support for sales agents based on long-established relationships in the pet shop channel, while advancing personalized marketing approaches in online sales to achieve efficient customer acquisition.

In new market development, the company entered the online pet health consultation business through Pets or Alive, a subsidiary acquired in 2021, creating group synergies. User registrations for this service more than doubled year-over-year. The company has also begun pilot testing the "Wan!Pass" app, which digitally authenticates pet vaccination status and owner knowledge. Through these initiatives, the company aims to expand pet-friendly commercial facilities and create new value toward realizing a society where pets and people can move together.

In technology investment, the company steadily advances core system updates to prepare for further growth, simultaneously pursuing operational efficiency and cost rationalization. The company continuously improves productivity through digitalization and business process improvements, including remote work system implementation, headquarters relocation for operational efficiency, and loss ratio reduction through prevention awareness and strengthened underwriting controls. Through these foundation-strengthening efforts, the company aims to establish sustainable competitive advantage in Japan's pet insurance market, which has significant growth potential with only a 16% penetration rate.