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Fairfax To Sell Global Pet Insurance Operations To JAB In $1.4 Bln Deal

Fairfax Financial Holdings Limited (FFH.TO and FFH.U.TO) announced Monday a transformational strategic partnership with JAB Holding Co. Under the deal, JAB's pet insurance business has agreed to acquire all of Fairfax's interests in the Crum & Forster Pet Insurance Group or C&F Pet and Pethealth Inc., including all of their worldwide operations.

In the deal, Fairfax will receive $1.4 billion in the form of $1.15 billion cash and $250 million in seller notes.

As part of the transaction, Fairfax will also make a $200 million investment in JCP V, JAB's latest consumer fund, to become their partners.

The transaction is subject to customary closing conditions, including various regulatory approvals, and is expected to close in the second half of 2022.

Following the transaction, JAB's combined global pet insurance and ecosystem platform will be estimated to have gross written premiums and pet health services revenues of well over $1.2 billion by 2023, insuring more than 2.1 million pets.

C&F Pet currently insures over 500,000 pets and markets or serves as underwriter for numerous brands, including ASPCA Pet Health Insurance, 24Petprotect, Hartville Pet Insurance, Spot Insurance Services, Pumpkin Insurance Services and PetCoach, LLC, provider of Petco pet insurance plans, in the United States and Pets Plus Us in Canada.

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