Trupanion Comments on Rate Filing Approval in California

Rhea-AI Summary

Trupanion (Nasdaq: TRUP) announced that the California Department of Insurance has approved a 29% rate increase, effective late July 2024. This follows a 12% rate increase approved in June 2023. The rate adjustments aim to align with the rising costs of veterinary care exacerbated by inflation since 2022. Trupanion emphasizes the importance of correct pricing to support California pet owners and the veterinary community amid these financial pressures.

Positive

• 29% rate increase approval by California Department of Insurance, effective late July 2024.
• 12% rate increase previously approved in June 2023.
• Rate adjustments aim to address rising veterinary care costs and inflation impacts since 2022.
• Supports California pet owners and the veterinary community.

Negative

• Significant rate increases (29% and 12%) may lead to customer dissatisfaction.
• Higher rates may reduce market competitiveness and customer base.

News Market Reaction

-7.86%

1 alert

-7.86% News Effect

On the day this news was published, TRUP declined 7.86%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

SEATTLE, May 17, 2024 (GLOBE NEWSWIRE) -- Trupanion, Inc. (Nasdaq: TRUP) today provided the following update on its rate filing approval status in California.

The California Department of Insurance approved a 29% rate increase, which is in addition to its previously approved 12% rate increase in June of 2023. The new rate will go into effect during late July 2024.

The rising cost of veterinary care amplifies the need for Trupanion to price correctly. Given the financial impact inflation has had on veterinary practices in California since 2022, this new rate will bring California residents more in line with those rising costs. Trupanion is excited to continue to support pet parents and the veterinary community in California.  

About Trupanion

Trupanion is the leading provider of medical insurance for over 1,000,000 cats and dogs throughout the United States, Canada, Europe, Puerto Rico and Australia. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet's recovery, not financial stress. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol "TRUP". The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. For more information, please visit trupanion.com.

Contacts:

Investor Relations

Investor.Relations@trupanion.com

FAQ

What is the latest rate increase for Trupanion in California?

The latest approved rate increase for Trupanion in California is 29%, effective late July 2024.

When was the previous rate increase for Trupanion in California?

The previous rate increase for Trupanion in California was 12%, approved in June 2023.

Why is Trupanion increasing rates in California?

Trupanion is increasing rates in California to align with the rising costs of veterinary care and the financial impact of inflation since 2022.

When will Trupanion's new rates take effect in California?

Trupanion's new rates will take effect in late July 2024.

How does the rate increase affect California residents?

The rate increase aims to bring California residents more in line with the rising costs of veterinary care.