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Trupanion, Chewy, & Pet Insurance Growth Opportunities

We’ve long been curious about Trupanion: it’s a pet insurance business that reports subscription revenue and LTV data rather than gross written premiums or losses. Although we’ve found it difficult to get comfortable with TRUP’s economics, it’s clear the market is growing rapidly:

Source: NAICSource: NAIC

Source: NAICSource: NAIC

In the 2021 shareholder letter, TRUP CEO implied the lack of operating profitability during its growth phase is due to heavy reinvestments into growth i.e. pet acquisition growth. The spend to acquire new policies is steadily increasing and is TRUP's largest operating expense:

Source: TRUPSource: TRUP

This interview with a Former TRUP and Chewy VP shares interesting insights into TRUP’s growth opportunity.

Firstly, pet insurance penetration is still low:

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