FY2021 2Q
Financial Results Briefing
ipet Holdings, Inc. (Security code: 7339)
November 9, 2021
The Company was established on October 1, 2020 as the wholly-owning parent company of ipet Insurance Co., Ltd. (hereinafter referred to as "ipet Insurance" in this document) through sole-share transfer.
Since the consolidated financial statements of the Company are prepared by inheriting the financial statements of ipet Insurance,
the items that are compared with the past figures in this document are comparison with the past figures of ipet Insurance on the standalone basis unless otherwise specified.
About ipet Group
ipet Holdings | Established in October 2020 | |
Listed on TSE Mothers | ||
100% | 100% | |
ipet Insurance
Subsidiary since March 2021
100% non-consolidated
Pets First Shogaku
Tanki Hoken
Subsidiary since October 2020
※Pets First Shogaku Tanki Hoken (P's-first) , small amount and short term insurance provider, is not included in the scope of consolidation (non-consolidated subsidiary company).
© 2021 ipet Holdings, Inc. | 2 |
Recent key business topics
Pet insurance business
Number of
policies
Robust growth due to the strong demand for pets Recorded the highest number of new policies per month. Maintaining an industry-leading policy renewal rate (about 90%).
→The number of policies in force continues to increase at a steady pace.
Surpassing 650,000policies on July 5th (as of the end of September 2021: 678,532 policies).
Product revision
-From May 2nd-
Customer support
Response rate of contact center improved by 10% in one year
Gender equality
Gender Equality
Promotion Award in
Aomori
Product revision including premium change implemented from May 2, 2021. Contributed to the increase in the insurance income. → See p.4 for detail.
ipet Insurance was awarded, as the first pet insurance company, to receive
the "Strategy Category Award" at the "Contact Center Award 2021" sponsored by Rick Telecom Co., Ltd.. 《Related URL》 https://www.ipet-ins.com/info/28964/
ipet Insurance was awarded the 2021 Aomori City Gender Equality Promotion Award (Business Division) in recognition of the activities of our Aomori Operation Center. 《Related URL》 https://www.ipet-ins.com/info/29107/
Group management
Pet's All Right started proof of concept of pet certification app, "Wan! Pass"
Pet's All Right Inc. started proof- of-concept on the pet-friendly access/service at "Business Airport Kyobashi", shared workspace. The purpose is to provide new workspace
experience where users can use the facility with their dogs through digitally certificate
vaccination information, owner literacy and dog discipline skills. | |
《Related URL》 https://about.petsallright.net/news/ | © 2021 ipet Holdings, Inc. 3 |
Premium change implemented from May 2021
In light of the consumption tax hike and the rise in the loss ratio, premium change was implemented from May 2, 2021.
#We have reduced the premiums for the elderly, which were extremely high, and made it easier to renew contract. #We have raised the premiums for young dogs whose loss ratios are deteriorating.
Image ofBefore premium change
After
Uniformly
Age of Dogs 0 | 12 | 15 |
Customer
By reducing the premiums for the elderly, the total premium
burden for those aged 0 to 15 is greatly reduced.
Impact | Premium | Income premiums increase |
Loss Ratio | Suppress the rise in the loss ratio |
© 2021 ipet Holdings, Inc. | 4 |
Group performance indicators - Key points
Definition of terms
and assumption
Aim to expand as a group in the future by developing businesses such as Pets All Right
LTV per contract *1
(Lifetime customer value)
[Definition] Total amount of cumulative profits that one customer brings to ipet Group
[Calculation formula] Over a certain period of time, (Revenue-Contract maintenance cost)÷ Number of policies in force x average duration
(Assumption)
1.Total of pet insurance business and Pets All Right business 2.Average duration is calculated from the renewal rate
3. The model of US -based T is used for comparison
PAC per contract*2
(Cost of acquiring new contracts, etc.)
[Definition] Marketing cost & forward investment cost for acquiring one contract. AKA Total initial cost
[Calculation formula] Over a certain period of time, (Commission for new contracts+ marketing/sales expenses + depreciation expenses + forward investment costs)÷Number of new contracts added
(Assumption)
Total of pet insurance business and Pets All Right business
Number of pet insurance policies in force
The number of pet insurance policies in force at a given point in time.
The estimate of future cash flows.
Group IRR *3
(Internal rate of return)
The total amount of profit (LTV) relative to the investment (PAC) on a group-wide basis.
As a holding company in FY2020, the above four indicators are set as key performance indicators
*1 LTV (Life Time Value): LTV per insurance contract + LTV per Pets All Right contract x dilution factor (based on the number of pet insurance contracts concluded). See p.33 for definition and calculation process | |
*2 PAC (Pet Acquisition Cost) : PAC per insurance contract + PAC per pets all right contract x dilution factor (based on the number of pet insurance contracts concluded). See p.33 for definition and calculation process | |
*3 IRR (Internal Rate of Return): See p.33 for calculation process | 5 |
© 2021 ipet Holdings, Inc. |
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ipet Holdings Inc. published this content on 09 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2021 08:22:03 UTC.