Author Topic: TRUP - Trupanion  (Read 15433 times)

atbed

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Re: TRUP - Trupanion
« Reply #10 on: June 08, 2017, 09:41:21 AM »
Screw pet insurance.


But you guys already knew that.

 8)

Lawl

Muscleman, how come you like IHC better? I see they are also involved in other insurance lines of business


DooDiligence

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Re: TRUP - Trupanion
« Reply #11 on: June 08, 2017, 10:44:23 AM »
ACA doesn't cover pre-existing in pets. Does anyone offer funeral services?

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Jurgis

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Re: TRUP - Trupanion
« Reply #12 on: June 08, 2017, 03:39:54 PM »
With insurance one of the parties (usually) gets screwed. In catastrophic, it's usually the customer, but they usually don't care, since the probability of cat is very low and overpaying probability-wise even X00% is still cheaper than if cat strikes. For non-cat insurance, especially self-paid customers may care if they get screwed (if someone else pays - e.g. your employer and you cannot get that money in cash instead, that changes things).

So - pet insurance.

Either insurer is screwing you via exclusions and prices - in which case it's not a great business for customer.

Or possibly insurer is giving you great deal and either A) they gonna lose money like heck B) they are pyramid scheme where the growth masks the A.

You guys can try to figure out which of the three possibilities TRUP is.

I don't have pet insurance and I won't get one. Anecdotally friends think it's too expensive for things covered and/or the insurer tries to screw you when they have to cover something expensive (like DooDiligence said "pre-existing conditions"). But that might be anecdotal. It's possible that TRUP is really giving great prices and A or B.

BTW, I heard someone sold pet wine idea on Shark Tank. I have at least 20 more pet crap ideas for anyone interested. 8)

Have fun.  8)
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muscleman

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Re: TRUP - Trupanion
« Reply #13 on: June 08, 2017, 06:02:15 PM »
Screw pet insurance.


But you guys already knew that.

 8)

Lawl

Muscleman, how come you like IHC better? I see they are also involved in other insurance lines of business

IHC has cheap valuation and profitable. TRUP is just another hype. Good luck buying an insurer at 14x book value.

atbed

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Re: TRUP - Trupanion
« Reply #14 on: June 08, 2017, 07:35:59 PM »
Screw pet insurance.


But you guys already knew that.

 8)

Lawl

Muscleman, how come you like IHC better? I see they are also involved in other insurance lines of business

TRUP is just another hype. Good luck buying an insurer at 14x book value.

Thx

I ended up passing on TRUP at 17 b/c of this line of thinking. But absolutely not regretting that, because I just don't know TRUP or the insurance business well enough yet.

Ballinvarosig Investors

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Re: TRUP - Trupanion
« Reply #15 on: June 09, 2017, 01:02:12 AM »
Screw pet insurance.


But you guys already knew that.

 8)

Lawl

Muscleman, how come you like IHC better? I see they are also involved in other insurance lines of business

IHC has cheap valuation and profitable. TRUP is just another hype. Good luck buying an insurer at 14x book value.
Book value not always a good determinant of value for an insurer. I own a little Admiral Group (UK insurer) and it has as similar high price to book. They focus on quality underwriting and low costs and cede premiums to reinsurers, giving up the float an investment income. I am not familiar with TRUP - so it may be a similar case and hence not as well understood?

atbed

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Re: TRUP - Trupanion
« Reply #16 on: June 09, 2017, 06:15:27 AM »
Screw pet insurance.


But you guys already knew that.

 8)

Lawl

Muscleman, how come you like IHC better? I see they are also involved in other insurance lines of business

IHC has cheap valuation and profitable. TRUP is just another hype. Good luck buying an insurer at 14x book value.
Book value not always a good determinant of value for an insurer. I own a little Admiral Group (UK insurer) and it has as similar high price to book. They focus on quality underwriting and low costs and cede premiums to reinsurers, giving up the float an investment income. I am not familiar with TRUP - so it may be a similar case and hence not as well understood?

That's very interesting. I wasn't aware of any other low float insurers. Thx for sharing

angelinvestor

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Re: TRUP - Trupanion
« Reply #17 on: July 05, 2017, 04:48:47 PM »
Hey guys, we wrote a report on Trupanion. Hope you like it and let us know if you have questions.
https://variantviews.com/2017/07/05/trupanion-a-long-term-compounder/

ScottHall

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Re: TRUP - Trupanion
« Reply #18 on: July 05, 2017, 08:40:50 PM »
I gave this a shot but got off it b/c the insurance didn't seem like good value for money. Maybe others have a different experience, just my own.
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Travis Wiedower

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Re: TRUP - Trupanion
« Reply #19 on: July 06, 2017, 07:25:20 AM »
angelinvestor,

Good write-up. Two comments:

1. In my opinion, you're underplaying the importance of Express. Insurance is generally a commodity business and I think Express is the (only?) thing that will keep Trupanion from earning commodity-like returns at scale. Express installs lead to very sticky vet customers that are then less likely to support other insurers. Given Trupanion is the only insurer with a nationwide sales force, if they can get a significant percentage of vets using Express the game will be over.

2. Do you have a source for the 18-20% frictional cost to have a third party underwriter? Trupanion underwrites Pet's Best business for an 8-10% take and the rest goes to Pet's Best (Darryl discussed this at the annual meeting last month). I assumed that 8-10% number was industry standard but I don't know.

I've been working on a Trupanioon write-up as well, hopefully I'll have it posted next week. It's taking me forever to write with how much there is to talk about--it's already 8 pages long!
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