Anicom Holdings, Inc.

Business Details

A segment engaged in pet insurance underwriting and asset management operations conducted by Anicom Insurance, Inc. The company offers multiple products covering outpatient, hospitalization, and surgery costs for 15 species including dogs, cats, birds, and rabbits. Its strength lies in the industry-first "Counter Settlement System" (supported by approximately 7,000 animal hospitals), and it sells through two channels: the NB channel (4,986 pet shop agency outlets) and the general channel (web and financial institutions). The company has maintained the No.1 domestic market share for 16 consecutive years from 2009 to 2024.

Recent Overview

Ordinary revenue increased 10.5% year-on-year in the cumulative 3Q, but profit declined significantly due to a rise in the loss ratio and expense ratio.

Ordinary revenue in the Non-life Insurance Business for the cumulative nine months of Q3 FY2026 (ending March 2026) (April to December 2025) was ¥48,994 million (up 10.5% year-on-year). The number of policies in force increased steadily to 1,374,230 (up 86,307 policies, or +6.7%, from the end of the prior fiscal year). Meanwhile, the E/I loss ratio rose to 62.9% (up 1.3pt year-on-year), and the expense ratio on an earned premium basis rose to 33.9% (up 2.0pt), worsening the combined ratio to 96.8% (up 3.3pt). Costs associated with policy transfers from other companies pushed up the expense ratio. The full-year earnings forecast remains unchanged, with ordinary revenue of ¥73,000 million (up 7.9% year-on-year) and ordinary profit of ¥3,300 million (down 33.2%).

Key Products

Growth Drivers

• Continued solid demand for pet ownership (domestic pet insurance penetration rate has grown to 21.4%)
• Strengthened sales activities in the NB channel (4,986 pet shop agency outlets) and the general channel
• Accumulation of policies in force through transfers from other companies (up 86,307 policies from the end of the prior fiscal year as of the end of Q3)
• High customer convenience and differentiation through the industry-first Counter Settlement System, which has the largest number of supported hospitals
• Enhanced appeal of products bundled with "Dobutsu Kenkatsu" leading to new policy acquisition

Risks

• The E/I loss ratio has been trending upward due to the extension of pets' average lifespan, advances in veterinary medicine, and persistently high medical costs from inflation
• Rising expense ratio due to costs associated with policy transfers from other companies (up 2.0pt year-on-year in cumulative 3Q)
• Risk of price competition due to intensifying entry by competitors (successive entries by major insurance companies)
• Burden of increasing insurance policy reserves (outstanding claims reserves and policy reserves) due to rising insurance payouts
• Increasing complexity of solvency management due to the introduction of new capital regulations (such as ESR) under the Insurance Business Act

Business Details

"Minna no Breeder" and "Minna no Koneko Breeder," operated by Simnet Co., Ltd., are Japan's largest breeder matching sites. The company matches breeders with pet owners and operates the Foster Parent Matching Site, among other activities. Through this platform, the company aims to drive effective and efficient measures to increase the number of pet insurance policies, the Group's core business, while also expanding breeder support services. This business is handled by a subsidiary that joined the Group in January 2020.

Recent Overview

Full-year ordinary revenue for FY2025 (ended March 2025) grew a solid 11.6% year-on-year to ¥2,263 million.

Ordinary revenue for the full year of FY2025 (ended March 2025) expanded solidly to ¥2,263 million (up 11.6% from ¥2,027 million in the prior fiscal year). Segment profit increased to ¥264 million (from ¥188 million in the prior fiscal year). For the cumulative nine months of Q3 FY2026 (ending March 2026), ordinary revenue maintained a growth trend at ¥1,710 million (up 2.8% year-on-year from ¥1,663 million). The goodwill balance stood at ¥1,337 million as of the end of FY2025 (down from ¥1,470 million at the end of the prior fiscal year), with amortization for the period of ¥133 million.

Key Products

Growth Drivers

• Increased access to the matching sites amid solid demand for pet ownership
• Contribution to new policy acquisition through synergies with the Group's core business (pet insurance)
• Diversification of the revenue base through the expansion of breeder support services
• Addressing the market for rescued animals through operation of the Foster Parent Matching Site

Risks

• The company holds a goodwill balance of ¥1,337 million, presenting an impairment risk should the business environment deteriorate
• Risk of slowing growth due to deceleration in the growth of pet ownership numbers or the emergence of competing platforms
• High dependence on intra-group transactions (inter-segment internal ordinary revenue), creating a risk that performance is linked to trends in the Non-life Insurance Business
• Risk of changes to the business environment due to tightening regulations in the pet shop and breeder industry or amendments to the Animal Welfare Act

Business Details

"Other Businesses" consists of multiple operations handled by Anicom Parfait Co., Ltd. and Anicom Advanced Medical Research Institute Co., Ltd. Specifically, it comprises: ① development, sales, and maintenance of the medical record management system for animal hospitals, "Anicom Receptor" (Animal Hospital Support Business); ② solicitation and sale of non-life and life insurance (Insurance Agency Business); ③ basic research and advanced medical development in the field of veterinary medicine and animal hospital operations (Veterinary Medicine / Advanced Medical Research (Clinical & Research Business)); ④ genetic testing for pet shops and breeders and the gut flora measurement service "Dobutsu Kenkatsu" (Genetic Testing Business); and ⑤ online shop and oral/gut care product sales, the telephone consultation service "Anicom 24," the recruitment service "Ani Job," and the breeding business (Other Business). This segment is responsible for expanding into peripheral areas with the primary aim of creating synergies with the Non-life Insurance Business.

Recent Overview

Ordinary revenue expanded sharply to ¥4,940 million, up 45.9% year-on-year, and remained solid at ¥2,062 million through cumulative Q3

Ordinary revenue for "Other Businesses" in FY2025 (the fiscal year ended March 2025) increased substantially to ¥4,940 million (up 45.9% year-on-year). The main drivers were the Veterinary Medicine / Advanced Medical Research (Clinical & Research Business) of Anicom Advanced Medical Research Institute Co., Ltd. (¥2,348 million, up 18.6% year-on-year), and Other Business, which now includes the breeding business of Florence Co., Ltd., made a subsidiary in March 2024 (¥1,907 million, up 160.2% year-on-year). For the cumulative nine months of Q3 FY2026 (ending March 2026) (April to December 2025), ordinary revenue for this segment continued to grow, reaching ¥2,062 million (up 15.7% year-on-year). Meanwhile, the segment loss continued at -¥925 million (FY2025, ended March 2025), reflecting the segment's ongoing upfront investment phase. It should also be noted that, from Q1 of FY2026 (ending March 2026), the "Animal Hospital Operations Business" and "Health Innovation Business" were reclassified as independent reporting segments due to their growing qualitative significance, changing the composition of "Other Businesses."

Key Products

Growth Drivers

• Other Business ordinary revenue expanded sharply to ¥1,907 million, up 160.2% year-on-year, driven by the sales contribution from Florence Co., Ltd. (breeding business), which became a subsidiary in March 2024
• Expansion of animal hospital operations (58 hospitals) by Anicom Advanced Medical Research Institute Co., Ltd. and promotion of hospital succession as regional veterinary care support
• Growing adoption of regenerative medicine (Animal Regenerative Medicine Technology Research Association: 809 member hospitals, 492 cases of stem cell administration in fiscal 2024)
• Development of sales channels centered on directly operated animal hospitals for oral and gut care products (CRYSTAL JOY, 7Days Food, etc.)
• Progress in developing technology to simultaneously measure personality, breed, coat color, physical constitution, and other traits in the genetic testing business, and expansion of the business

Risks

• The segment loss of -¥925 million (FY2025, ended March 2025) continues, indicating a risk of delayed monetization during the upfront investment phase
• The reclassification of the "Animal Hospital Operations Business" and "Health Innovation Business" as independent segments from FY2026 (ending March 2026) has reduced the scope and scale of "Other Businesses," lowering comparability
• Increasing fixed cost burden in the Animal Hospital Operations Business (increase in tangible fixed assets of ¥3,793 million) and impairment risk (an impairment loss of ¥41 million was recorded in FY2025, ended March 2025)
• Risk related to the integration of new subsidiaries' performance, such as the breeding business (Florence Co., Ltd.), and the burden of goodwill amortization (other goodwill amortization of ¥116 million in FY2025, ended March 2025, with a period-end balance of ¥1,085 million)
• Risk of deteriorating revenue environment for peripheral businesses due to intensifying competition and ongoing consolidation in the pet-related market