[107120] in Cypherpunks
ADV: Growth-Stocks Discovers New Emerging Insurance Company
daemon@ATHENA.MIT.EDU (growth@growth-stocks.net)
Sat Jan 2 10:03:13 1999
From: growth@growth-stocks.net
To: <cypherpunks@infonex.com>
Date: Sat, 2 Jan 1999 05:10:24
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Pet Health Insurance (OTCBB: PETH) Research Report
Petshealth's Best Opportunity to Dominate the Pet Insurance Industry
Visit http://www.growth-stocks.net for full details.
The Corporate Profile
Petshealth, Inc., is a Florida holding company corporation whose wholly owned
holdings include Petshealth Insurance Agency, Inc., a Canton, Ohio corporation
which offers simple to understand pet health insurance coverage for companion cats
and dogs throughout the entire United States with a five year action plan
that will include Canada. Currently, there is only one other company
offering pet health insurance at a national level and it does not offer its
coverage in Canada "Nor does it offer the comprehensive yet simple plans that
Petshealth offers, e.g., a "Family" discount policy for multiple family pets.
Petshealth modeled its three comprehensive pet health care insurance plans
after successful European plans, where market penetration ranges anywhere
from 12% to 45% of pet owners, depending on the country. The Company offers
major medical, accident and wellness pet health plans. Marketing these
together, Petshealth expects to capture approximately 5.3% of the pet
population within the next five years of which over half will be renewal
policies.
Petshealth markets directly to pet owners through its targeted demographic
database mailings, promotional incentives to enroll, renewal rebates,
telemarketing, consumer media, veterinary office point-of-sale, promotional
advertising, cable television infomercials, and the new Internet technology
to educate and enroll pet owners.
Petshealth current operation include the sale of pet health insurance policies in
New York, New Jersey, Texas, Missouri, Indiana, Iowa, Connecticut, Minneapolis,
Michigan, Tennessee, Wisconsin, Utah, Rhode Island, Mississippi, North Dakota,
North Carolina, and South Dakota as a licensed agency. The Company is now
accepting its impact consumer market entry into the remaining state market places.
Petshealth began direct consumer marketing in New York in December 1997. It
is currently targeting the Humane Society of The United States (HSUS),
Discover Card, and the nationally respected North Shore Animal League, which
processes more than 35,000 annual pet adoptions in the greater Metro New
York market, and the League's pet medical server, Affiliated Animal
Hospitals of Staten Island.
Petshealth management team identified the needs of pet owners and veterinarians.
Pet owners want comprehensive coverage, convenience, affordability and the
freedom to choose their own veterinarian. Veterinarians want a fiscally
sound program for insurance with simple claims, comprehensive coverage,
prompt reimbursements, direct marketing by the insurer and a stable company
that is well capitalized. Petshealth delivers all these needs.
The Opportunity
Petshealth is positioned to aggressively take advantage of an untapped market,
the companion pet health insurance industry. This industry has tremendous
growth potential as proven in Europe, Canada and other countries. It is
estimated that a 5.3% market share, which is what Petshealth projects it
will capture by the year 2003, represents gross annual premium income in
excess of $1 billion and selling commissions of more that $300 million for
Petshealth's insurance agency division (Petshealth Insurance Agency, Inc.).
Petshealth projections for 2003 reflect a conservative 5.3% market share.
More than 50% of year 2003's enrollment population represents renewals of
earlier policy sales, which (renewal business) is expected to be highly
profitable because only a small incremental marketing and policy acquisition
costs are incurred.
Petshealth is highly competitive and offers low cost to the consumer. The
company offers the following plans starting as low as $0.25 per day:
Basic - accident and illness only plan.
Value - accident, illness and wellness care starter coverage plan and,
Choice - accident and illness with expanded wellness care plan.
Family discount plan - 20% off the next two policies, maximum of 3 pets.
Petshealth's plans also allow the consumer to choose their own veterinarian,
and added a unique service provided by Petshealth.
The Future
The United States has the largest population of companion animals in the
world. Pets occupy an important place in more than half of the U.S.
households. Licensed dogs and cats alone, number more than 112 million in
this country alone, not including Canada. As a market, owners of companion
pets number approximately 54.8 million households, and this figure is
growing. Each year consumers spend in this market more than 20.3 billion
for the care of their pets alone. More and more Americans consider their
pets as part of their family. The American Animal Hospital Association
(AAHA) reports that 81% of pet owners think of their pets as family members
or even children. With growing frequency, young professionals, childless
couples, empty nesters and senior citizens report that they depend on their
pets for companionship and emotional bonding.
The Industry
A study conducted by the University of Nevada, entitled An Analysis of Pet
Health Care Insurance concluded that "over one half of United States pet-
owning households were willing to purchase health insurance for their pets,"
according to R. Keith Schwer, Associate Professor of Economics and Director,
The Center for Business and Economic Research, University of Nevada, Las
Vegas, and Donald W. Hardigree, Associate Professor of Finance, Nevada
Insurance Education Foundation, Chair of Insurance and Director, Institute
of Insurance and Risk management, University of Nevada, Las Vegas.
Additionally, according to an article appearing in the February 1, 1996
issue of the Wall Street Journal, hundreds of thousands of pet owners are
willing to pay "hefty premiums to ensure that their animals get first-rate
health care coverage," Zachary, G. Pascal, The Wall Street Journal 1 Feb.
1996.
Target Market
The Company targets companion pet owners (cats and dogs), veterinarians,
animal hospitals, and clinics, pet adoption agencies nationwide, corporate
employee benefits, affinity membership/group associates "clubs" and its
sites on Canada within five years.
Strategy
The Company's growth plan include expanding its pet insurance coverage to the
50 states and Canada. Additionally, Petshealth already has in place three
types of insurance plans, which cover the necessities of most pet owners.
These three simple plans are a proven success in Europe. In England, there
are more than two million cats, dogs, and horses insured, in Sweden 45% of
pets are insured. Petshealth plans to capture a 5.3% market share in the
next five years for the U.S. and Canada, which represent gross annual
premium income in excess of $1 billion and selling commissions of more than
$300 million for Petshealth.
Visit http://www.growth-stocks.net for full details.
****** DISCLAIMER ******
This material is being provided by Growth-Stocks, an electronic newsletter
paid by the issuer for publishing the information contained in this report.
Growth-Stocks has paid a consideration of 3,000 shares of common stock of
Petshealth Insurance Inc. by CCF Capital Group, Inc. as payment for the
publication of the information contained in this report. Growth-Stocks and
its affiliates have agreed not to sell the common stock received as payment
for its services until December 23, 1998, which date is 15 days from the
initial dissemination of this report. After such date, Growth-Stocks may
sell such shares. Because Growth-Stocks is paid for its services, there is
an inherent conflict of interest in Growth-Stocks' statements and opinions
and such statements and opinions cannot be considered independent. The
information contained in this publication is for informational purposes only,
and not to be construed as an offer to sell or solicitation of an offer to
buy any security. Growth-Stocks makes no representation or warrant relating
to the validity of the facts presented nor does Growth-Stocks represent or
warrant that all material facts necessary to make an investment decision are
presented above. All statements of opinions are those of Growth-Stocks.
Growth-Stocks relies exclusively on information gathered from public filings
on featured companies, as well as, in certain circumstances, interviews
conducted by Growth-Stocks of management of featured companies. Investors
should not rely solely on the information contained in this publication.
Rather, investors should use the information contained in this publication
as a starting point for conducting additional research on the featured
companies in order to allow the investor to form his or her own opinion
regarding the featured companies. Factual statements contained in this
publication are made as of the date stated and they are subject to change
without notice. Growth-Stocks is not a registered investment adviser,
broker or a dealer. Investment in the companies reviewed is speculative and
extremely high-risk and may result in the loss of some or all of any
investment made in Petshealth Insurance Inc. Projections of future financial
results are provided soley by Petshealth Insurance, Inc. No assurances are
given that Petshealth Insurance Inc. will achieve said projections. This
publication contains forward-looking statements that are subject to risk and
uncertainties that could cause results to differ materially from those set
forth in the forward-looking statements. These forward-looking statements
represent the judgment of Petshealth Insurance Inc. as of the date of this
publication. The Company disclaims any intent or obligation to update these
forward-looking statements.
