News Column

Local Trupanion pet insurance files for IPO

June 16, 2014

By Coral Garnick, The Seattle Times



June 16--Seattle-based pet-insurance provider Trupanion filed Monday for a $75 million initial public offering, according to Securities and Exchange Commission (SEC) documents.

The offering is subject to change, and the number of shares to be sold and price range has yet to be determined. The company said it is an "emerging growth company" as defined in The Jumpstart Our Business Startups Act of 2012, and therefore is able to report abbreviated financial information.

Founded in Canada in 1998, Trupanion moved its headquarters to Seattle in 2007. As of March 31, the company covered 181,634 cats and dogs in the United States, Canada and Puerto Rico. It has 335 employees in the United States and 13 employees in Canada.

The majority of the company's revenue comes from monthly premiums for the animals. The cost of insuring an animal varies based on age, breed, gender, where the animal lives and whether the animal has been spayed/neutered. The average monthly premium for a cat is $26, and $40 for a dog, which represents 85 percent of its policies.

With a database containing 14 years of pet health records from 18,000 veterinary offices, the company says it has a unique insight into how to manage its business, accurately price its medical plans, increase its retention rate and optimize the lifetime value of a pet.

Last year Trupanion lost $8.2 million on $83.8 million in revenue. The company has never made money and has an accumulated deficit of $41 million.

According to documents filed with the SEC, the company plans to use some of the funds from the offering to cover outstanding debt and to increase marketing. It said it had $10.6 million in cash and $15 million in short-term investments on hand.

Founder Darryl Rawlings, 45, serves as chief executive and president, and sits on the board of directors.

Trupanion has been funded by Maveron, a Seattle venture-capital firm that has backed other companies such as eBay and Zulily. Dan Levitan of Maveron has served on Trupanion's board since 2007.

The company applied to be listed on the New York Stock Exchange under the symbol "TRUP." RBC Capital Markets, Barclays and Stifel are leading the offering.

Other local companies to go public this year include Papa Murphy's and Alder Biopharmaceuticals.

Early-stage Seattle company ClearSign Combustion, which went public in April 2012 with a $12 million stock offering appears to be one of the first, if not the first, in the nation to make use of the new JOBS Act.

Coral Garnick: 206-464-2422 or cgarnick@seattletimes.com. On Twitter @coralgarnick

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(c)2014 The Seattle Times

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Source: Seattle Times (WA)


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