A $400 billion insurance group is buying into pet insurance, and the company is seeking to leverage the $1.3 trillion pet insurance market to get bigger, faster and better, Bloomberg reports.
The pet insurance company Petrolico Group announced Tuesday that it would buy pet insurance firm Petrolio from the company that it previously purchased for $1B from the UnitedHealth Group.
The company also said it will begin selling its pet insurance policies to other insurers, including the Blue Cross Blue Shield Association, the American Medical Association and the State Farm of North Carolina.
The deal is expected to close in the first quarter of 2021.
The acquisition was first reported by Business Insider.
Petrolico has grown into a dominant insurance company for pets, thanks in part to the acquisition of the American Pet Insurance Agency, which was sold to a private equity group in 2015.
It has also been able to sell policies for the health care industry.
The Petrolios Petrolica Group is part of the Petrolino Group of Companies, a unit of the German-based pet insurance giant Petrolia.
The transaction was approved by Petrolina’s board of directors, which includes Chief Executive Werner Geier.
The merger has raised concerns that the Petroica Group could seek to acquire a large portion of the pet insurance industry, which could make it less profitable.
Petros insurance plans are designed to cover the health of pets that are injured or sick, but Petrolins policies can also cover other items such as medications, vaccines, and veterinary care.
The group has said it aims to sell pet insurance to more than 50 other insurers and has plans to sell up to $1 trillion in pet insurance in 2020.