Pineapple Financial Inc. Launches Pineapple Insurance
Pineapple Financial Inc. (NYSE American: PAPL) has launched Pineapple Insurance, a new business vertical offering life, creditor, and disability coverage for mortgage clients. This strategic move taps into Canada's multi-billion dollar insurance market, which generated $122 billion CAD in premiums in 2022. The Canadian life and health insurance sector is projected to grow at 4.5% annually through 2027.
Pineapple Insurance aims to capture a share of the market where over 700,000 new mortgages are issued annually in Canada, with 47% of mortgages expected to renew in the next three years. This initiative is expected to significantly enhance overall revenue, improve customer experience, and increase client retention. The company anticipates a rise in its already impressive retention rates, which currently exceed 70% across its mortgage portfolio.
Pineapple Financial Inc. (NYSE American: PAPL) ha lanciato Pineapple Insurance, un nuovo settore aziendale che offre coperture vita, per creditori e per disabilità ai clienti mutuatari. Questa mossa strategica punta al mercato assicurativo multimiliardario del Canada, che ha generato $122 miliardi CAD in premi nel 2022. Si prevede che il settore assicurativo vita e salute canadese cresca a un tasso del 4,5% annuo fino al 2027.
Pineapple Insurance mira a catturare una quota di mercato dove vengono emessi oltre 700.000 nuovi mutui ogni anno in Canada, con il 47% dei mutui previsto per il rinnovo nei prossimi tre anni. Questa iniziativa dovrebbe migliorare significativamente le entrate complessive, migliorare l'esperienza del cliente e aumentare la fidelizzazione dei clienti. L'azienda prevede un aumento delle sue già impressionanti percentuali di fidelizzazione, che attualmente superano il 70% nel suo portafoglio mutui.
Pineapple Financial Inc. (NYSE American: PAPL) ha lanzado Pineapple Insurance, un nuevo vertical de negocio que ofrece cobertura de vida, de acreedores y de discapacidad para clientes hipotecarios. Este movimiento estratégico aprovecha el mercado de seguros de miles de millones de dólares de Canadá, que generó $122 mil millones CAD en primas en 2022. Se proyecta que el sector de seguros de vida y salud en Canadá crecerá a una tasa del 4.5% anual hasta 2027.
Pineapple Insurance busca captar una parte del mercado donde se emiten más de 700,000 nuevas hipotecas anualmente en Canadá, con el 47% de las hipotecas que se espera se renueven en los próximos tres años. Se espera que esta iniciativa mejore significativamente los ingresos generales, mejore la experiencia del cliente y aumente la retención de clientes. La compañía anticipa un aumento en sus ya impresionantes tasas de retención, que actualmente superan el 70% en su cartera hipotecaria.
파인애플 파이낸셜 주식회사 (NYSE American: PAPL)가 새로운 사업 수직인 파인애플 보험을 출범했습니다. 이 보험은 주택 대출 고객을 위한 생명, 채무자, 장애 보험을 제공합니다. 이 전략적 움직임은 캐나다의 수십억 달러 규모의 보험 시장을 겨냥하고 있으며, 해당 시장은 2022년에 1,220억 CAD의 보험료를 발생시켰습니다. 캐나다의 생명 및 건강 보험 부문은 2027년까지 매년 4.5% 성장할 것으로 예상됩니다.
파인애플 보험은 캐나다에서 연간 70만 건 이상의 신규 주택담보대출이 발급되는 시장의 점유율을 확보하려고 합니다. 또한 향후 3년 이내에 47%의 주택담보대출이 갱신될 것으로 예상됩니다. 이 이니셔티브는 전체 수익을 크게 향상시키고 고객 경험을 개선하며 고객 유지율을 높일 것으로 보입니다. 이 회사는 현재 주택담보대출 포트폴리오에서 70% 이상에 달하는 유지율의 상승을 예상하고 있습니다.
Pineapple Financial Inc. (NYSE American: PAPL) a lancé Pineapple Insurance, un nouveau secteur d'activité offrant une couverture vie, des créanciers et des invalidités pour les clients hypothécaires. Ce mouvement stratégique vise le marché de l'assurance multimilliardaire du Canada, qui a généré 122 milliards CAD de primes en 2022. Le secteur canadien de l'assurance vie et santé devrait croître à un rythme de 4,5% par an jusqu'en 2027.
Pineapple Insurance vise à capter une part du marché où plus de 700 000 nouvelles hypothèques sont émises chaque année au Canada, avec 47% des hypothèques susceptibles d'être renouvelées dans les trois prochaines années. Cette initiative devrait améliorer significativement le revenu global, améliorer l'expérience client et augmenter la fidélisation des clients. L'entreprise s'attend à une hausse de ses taux de fidélisation déjà impressionnants, qui dépassent actuellement 70% dans son portefeuille hypothécaire.
Pineapple Financial Inc. (NYSE American: PAPL) hat Pineapple Insurance gegründet, einen neuen Geschäftszweig, der Lebens-, Gläubiger- und Invaliditätsversicherungen für Hypothekenkunden anbietet. Dieser strategische Schritt zielt auf den mehr Milliarden Dollar schweren Versicherungsmarkt Kanadas ab, der im Jahr 2022 Prämien von 122 Milliarden CAD generierte. Der kanadische Lebens- und Krankenversicherungssektor wird voraussichtlich bis 2027 jährlich um 4,5% wachsen.
Pineapple Insurance hat zum Ziel, einen Marktanteil zu gewinnen, in dem jährlich über 700.000 neue Hypotheken vergeben werden, wobei 47% der Hypotheken in den nächsten drei Jahren voraussichtlich verlängert werden. Diese Initiative soll die Gesamteinnahmen erheblich steigern, das Kundenerlebnis verbessern und die Kundenbindung erhöhen. Das Unternehmen rechnet mit einem Anstieg seiner bereits beeindruckenden Binderraten, die derzeit über 70% in seinem Hypothekenportfolio liegen.
- Launch of Pineapple Insurance taps into Canada's multi-billion dollar insurance market
- Potential for significant revenue growth by cross-selling insurance products with mortgages
- Improved client retention through multi-product strategy
- Expansion of services as a licensed Managing General Agent (MGA) in multiple provinces
- Strategic use of IPO proceeds to create scalable, revenue-generating assets
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Insights
The launch of Pineapple Insurance marks a significant strategic move for Pineapple Financial Inc. This expansion into the
The integration of insurance with mortgage services creates a powerful cross-selling opportunity. With over 700,000 new mortgages issued annually and
Investors should note that this initiative represents a strategic use of IPO proceeds, demonstrating the company's commitment to creating long-term value. The potential for recurring revenue from insurance premiums could lead to more stable and predictable cash flows, which is typically viewed favorably by the market.
Pineapple's entry into the insurance market is well-timed and strategically sound. By offering life, creditor and disability insurance alongside mortgages, they're addressing a critical need for financial security among homeowners. This integrated approach not only simplifies the process for clients but also positions Pineapple to capture a larger share of the customer's wallet.
The company's status as a licensed Managing General Agent (MGA) in multiple provinces gives it the necessary regulatory framework to operate effectively in the insurance space. This multi-province presence allows for scalability and market penetration across a significant portion of Canada.
However, success in the insurance sector will depend on Pineapple's ability to underwrite risks effectively and manage claims. The company will need to build robust actuarial capabilities and risk management processes to ensure profitability in this new venture. Additionally, they'll face competition from established insurers, which could pressure margins.
Pineapple's move into insurance aligns with broader market trends. The increasing demand for financial security products, driven by economic uncertainty and rising personal debt, creates a favorable market environment for Pineapple's new offering. The company's existing client base provides a ready market for cross-selling, potentially leading to higher customer lifetime value.
The integration of insurance with mortgage services taps into the growing consumer preference for bundled financial products. Research indicates that financial institutions offering multi-product solutions see a
However, the success of this strategy will depend on Pineapple's ability to educate customers about the benefits of bundling insurance with their mortgage and to provide a seamless, user-friendly experience. The company will need to invest in marketing and customer education to fully capitalize on this opportunity and differentiate itself in a competitive market.
Unlocking a Multi-Billion Dollar Market with Life, Creditor, and Disability Coverage for Mortgage Clients
Toronto, Ontario--(Newsfile Corp. - September 19, 2024) - Pineapple Financial Inc. (NYSE American: PAPL), a leading Canadian fintech platform, is thrilled to announce the official launch of Pineapple Insurance, a transformative new business vertical that is designed to unlock significant growth potential for the company. This development not only allows Pineapple to tap into Canada's multi-billion dollar insurance market but also offers clients a more personalized, comprehensive financial solution that integrates seamlessly with their mortgage needs. Pineapple Insurance is expected to become a cornerstone of the company's future revenue streams by delivering enhanced customer value and protection.
The launch of Pineapple Insurance marks a pivotal moment in the company's evolution, fueled by strategic capital deployment from the proceeds of Pineapple's IPO in November 2023. This initiative has been in development for over a year, and now, investors can see their capital being directed toward long-term, high-impact growth. The introduction of life, creditor, and disability insurance is not only a natural extension of Pineapple's integrated financial services platform but also a critical move to capture a share of Canada's growing insurance market, which generated
A Multi-Billion Dollar Opportunity:
The Canadian life and health insurance sector is forecasted to grow at an annualized rate of
Pineapple Insurance offers a more comprehensive and personalized solution to its mortgage clients, allowing them to choose coverage that fits their unique financial and personal needs, whether it's life, creditor, or disability insurance. By integrating this offering into the mortgage process, Pineapple provides clients with a seamless, all-in-one solution, simplifying their financial decision-making and ensuring they are fully protected. This initiative enables the company to capture premium revenue from its existing client base of thousands of mortgage holders and prospects, positioning Pineapple to drive both retention and new sales. Moreover, by offering tailored solutions, Pineapple strengthens the client relationship, ensuring that each individual receives the most relevant and valuable coverage.
"We've been building towards this launch for over a year, and we're beyond excited to finally share it with our investors and clients," said Kendall Marin, President and COO of Pineapple Financial. "We believe Pineapple Insurance is a game-changer. By offering in-house life, creditor, and disability insurance, we're not only meeting a regulatory requirement but enhancing the value we provide to clients-while adding a potential highly lucrative revenue stream for our business."
The Strategic Impact for Investors:
- Revenue Growth & Profitability: Pineapple Insurance is set to significantly enhance overall revenue while improving the customer experience by offering a comprehensive suite of mortgage and insurance solutions. By integrating personalized insurance coverage with mortgage services, Pineapple is poised to capture substantial value from its extensive client base. The Canadian insurance market is vast, with strong demand for financial security driving growth. Pineapple's ability to offer tailored insurance products, such as life, creditor, and disability coverage, presents a significant opportunity to boost revenue and deepen client relationships.
With the potential to integrate insurance offerings into existing mortgage transactions, Pineapple is well-positioned to create a sustainable revenue stream. The synergy between mortgage origination and insurance sales is expected to generate substantial recurring revenue, reflecting the company's strategic approach to leveraging its platform for long-term growth. This integration not only enhances the value provided to clients but also supports Pineapple's objective of expanding its market presence and financial impact.
- Strong Client Retention through Multi-Product Strategy: Cross-selling insurance products alongside mortgages delivers more than revenue growth-it deepens the value proposition for clients, building a stronger and more lasting relationship. By offering customized, relevant insurance coverage alongside mortgage renewals and new loans, Pineapple helps clients make well-informed decisions that provide long-term financial security. Research shows that financial institutions offering multi-product solutions experience a
30% increase in retention compared to single-product providers. Pineapple's ability to bundle mortgage solutions with life and disability insurance creates a 'stickier' client relationship, ensuring that clients are more likely to stay loyal for years to come.
As a result, Pineapple anticipates a rise in its already impressive retention rates, which currently hover above70% across its mortgage portfolio. By offering insurance alongside renewals, Pineapple creates an additional touchpoint with clients, further deepening the relationship and boosting lifetime customer value.
- Capital Deployment and Long-Term Value Creation: Pineapple Insurance is a clear example of the strategic use of proceeds from the company's IPO last November. A portion of the
$3.5 million USD raised has been allocated to build this division, reinforcing Pineapple's commitment to leveraging investor capital to create scalable, revenue-generating assets. The deployment of capital toward this initiative reflects Pineapple's long-term vision of becoming a fully integrated financial services platform that maximizes client value and revenue potential.
"We promised our investors that the proceeds from our IPO would be deployed thoughtfully to accelerate growth and enhance shareholder value," said Shubha Dasgupta, CEO of Pineapple Financial. "With Pineapple Insurance, we believe we've done exactly that. This division has been in development for a long time, and its launch signifies the beginning of a new era of profitability and scalability for our company. By focusing on our core principles of customer-centric innovation, we're building a company that's prepared for sustained growth and success."
- Market Tailwinds: Recent moves by the Federal Reserve to lower interest rates mark a significant shift in monetary policy that could provide a much-needed boost to the broader mortgage market. As borrowing costs begin to ease, consumer demand for refinancing and new mortgage solutions is expected to rise. These rate cuts, along with Pineapple's comprehensive mortgage and insurance offerings, position the company to capitalize on improving market conditions and deliver enhanced value to clients while driving sustained revenue growth.
A Fully Integrated Financial Ecosystem:
Pineapple Insurance adds a vital layer to Pineapple's tech-enabled financial services platform, allowing the company to offer truly end-to-end solutions to clients. As a licensed Managing General Agent (MGA) operating in Ontario, Manitoba, British Columbia, and Alberta, Pineapple is now positioned to provide mortgage, insurance, and financial advice all through one platform-offering clients convenience and peace of mind.
This full-service model positions Pineapple as a leader in the Canadian mortgage and financial services industry, capable of retaining clients and generating long-term recurring revenue by offering a broad array of financial products.
Source: Canadian Life and Health Insurance Association (CLHIA) report, 2022: https://www.clhia.ca/
Source: CMHC's Canadian Housing Survey, 2021: https://www.cmhc-schl.gc.ca/
About Pineapple Insurance
Pineapple Insurance Inc., a wholly owned subsidiary of Pineapple Financial Inc., offers a wide range of insurance products, including life insurance (term and permanent), creditor insurance, critical illness insurance, and disability insurance. Licensed as an MGA, Pineapple Insurance is dedicated to providing comprehensive financial protection to clients across Canada, ensuring that every mortgage client has access to personalized and secure coverage.
About Pineapple Financial Inc.
Pineapple Financial Inc. is an award-winning fintech and leading Canadian mortgage brokerage network, focusing on both the long-term success of agents and brokerages, as well as the overall experience of homeowners. With approximately 700 brokers within the network, Pineapple creates cutting-edge cloud-based tools and AI-driven systems to enable its brokers to help Canadians realize their dream of owning a home. Pineapple is active within the community and is proud to sponsor charities across Canada to improve the lives of fellow Canadians.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
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Related Links:
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Media Contact:
For media inquiries, please contact Alexandria Guo, Marketing Manager at Pineapple
Email: alexandria@gopineapple.com
Investor Relations Contact:
For investor relations inquiries, please contact Shubha Dasgupta, Chief Executive Officer, at Pineapple
Email: shubha@gopineapple.com
Phone: +1 (416) 669-2046
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223808
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