Why Trupanion Has a Huge Growth Runway
Trupanion (NASDAQ: TRUP) is a rapidly growing provider of pet insurance for dogs and cats in the U.S., Canada, and Puerto Rico. The company's third-quarter earnings report from early November showed its total number of insured pets grew 23% year over year to reach 613,694. That is almost five times the number it had at the end of 2012.
Despite that impressive growth, Trupanion has enrolled only about 0.4% of the dogs and cats in North America and is only scratching the surface of its long-term opportunity. It could be multiples of its current size over the long term.
According to the North American Pet Health Insurance Association (NAPHIA), the number of insured pets in North America grew 17.1% to 2.43 million last year. It's estimated that there are about 151.7 million dogs and cats in North America, which means less than 2% of dogs and cats are insured. To consider where things could go over the long term, we can look to certain European markets for precedent.
Source Fool.com
