Trupanion Inc. ( TRUP ) shares jumped after-hours Thursday after the pet insurer said California and New York approved double-digit rate hikes, saying the hikes are “necessary in today’s increasingly expensive veterinary environment.” California approved a more than 12 percent increase, while New York approved the requested 18 percent increase, the company said. Margie Tooth, president of Trupanion, believes the company believes that “rising veterinary costs will increase demand for Trupanion in the coming months and years.” The full-year forecast released on May 4 did not include the approval of the two states, executives said. And they still hope to deliver positive free cash flow in the fourth quarter, thanks to cost reductions and increased animal care costs. The price approvals are “a nice positive for our balance sheet,” Tooth said. Shares were up 16.4 percent after hours.
– Bill Peters
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06-22-23 1645ET
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