We’re loving our pets more than ever.
Driven in part by a pandemic boom in pet ownership, spending on animal companions continues to rise as our furry friends become more integrated into families.
“They sleep on our beds. We give them birthday cards. We celebrate them,” said Margi Tooth, the new CEO of Trupanion. “They’re everything that we are, and you wouldn’t treat them any differently than a child or a loved one.”
Yet only 4% of pets in North America have insurance, according to Tooth, the England native who last week became CEO of Trupanion, the longtime Seattle-based pet insurance provider.
“The category is woefully under-penetrated,” Tooth said.
Founded in 2000, Trupanion went public in 2014 and has a current market capitalization of more than $1.7 billion. The company’s stock is up nearly 20% over the past week after reporting revenue of $314.8 million in the second quarter, up 16% year-over-year.
Tooth joined Trupanion in 2013 after a stint with European insurance giant Allianz. She’s held titles including chief marketing officer, chief revenue officer, and most recently president.
Tooth said she’s focused on helping the company grow in a disciplined way.
“We’re not that scrappy startup company anymore,” she said. “We’re a company that has over a million pets that we take care of. We have over a billion dollars in revenue, and we want to get to the next billion, and the next billion after that. So that means sustainable growth that is supported by an incredibly bold and safe foundation.”
Spending on pet services such as animal health is expected to more than double to $112 billion in 2030, up from $48 billion in 2019, according to a recent report from Morgan Stanley.
Trupanion differentiates itself with a direct payment service that pays vets directly at checkout, and no limits on payouts, among other features.
“Unlike competitors who attract customers with low prices for limited coverage, we prioritize delivering the best value by offering comprehensive coverage and higher claims payouts,” Tooth said on an earnings call with analysts last week. “This approach ensures pets receive the care they need, resulting in higher customer satisfaction and exceptional lifetime value.”
Rising medical care costs for pets means “there’s a greater need” for something like Trupanion, Tooth told GeekWire.
Tooth replaced Trupanion founder Darryl Rawlings, who remains chair of the board and is helping the company develop a pet food program.
When she was growing up on a farm in rural England surrounded by animals, Tooth’s childhood dream was to become a veterinarian.
These days, she takes care of her “two girls” — an English Bulldog and a Maltipoo — along with her three human sons.
She describes herself as a “heart and a head leader.”
“I know how to get it done from an execution point of view, but I care deeply,” she said. “Emotional intelligence is critical.”
Tooth joins a very short list of women that have led a publicly traded company based in Washington state.
“It’s a wonderful time to demonstrate the fact that anyone can do anything if they put their mind to it, regardless of who they are, what their background is, where they come from,” she said.. “I’m a British, half Indian woman leading a public company. Anyone can do it. As a leader of this company, if I can inspire other people like me, or not like me, to do what I’ve done, then that’s pretty cool.”