PSH Pivots to Pet Insurance After Regulatory Hit to Vet Med Sales

ZAANSTAD, Netherlands – January 15, 2026 – Pet Service Holding N.V. (PSH) has unveiled a multi-year partnership with pet insurance leader Figo, marking a significant strategic pivot for the Dutch pet care giant. The move will see PSH distribute insurance products through its popular online platforms, a direct response to regulatory pressures that curtailed its lucrative veterinary medicine sales in 2025 and forced a fundamental rethinking of its revenue strategy.

This partnership represents a decisive shift for PSH, moving it into the high-growth, recurring-revenue stream of pet insurance. The company aims to leverage its existing base of over one million customers to capture a slice of a European market that remains largely untapped, turning a regulatory crisis into a strategic opportunity.

A Pivot Forged by Regulatory Pressure

The catalyst for PSH's strategic shift was a direct regulatory challenge that struck at the core of its veterinary segment. In late 2025, the company was forced to discontinue the sale of certain prescription-only veterinary medicines. This decision followed an official warning letter dated December 17, 2025, from the Dutch Food and Consumer Product Safety Authority (NVWA) to Panacea DM B.V., a subsidiary PSH had acquired in 2023. The warning clarified that specific UDA-classified medicines could not be sold online in accordance with Dutch and EU regulations.

The financial impact was immediate and significant. The company's half-year results for 2025 revealed a net result of -€0.56 million, a notable downturn from the previous year. PSH explicitly linked this decline to the "margin effect in the product mix and lower volumes due to the NVWA discussions." The regulatory storm threatened a key revenue pillar and necessitated a swift and decisive response.

This partnership with Figo is that response. It is the first major step in a renewed strategy to build scalable, less regulation-sensitive services. By focusing on insurance, PSH is creating a recurring revenue stream that hedges against the volatility of product sales governed by evolving veterinary laws.

"Due to regulatory developments in the veterinary market, we are accelerating our focus on new recurring revenue streams," stated Ron van Veldhoven, CEO of Pet Service Holding, in the original announcement. "This multi-year partnership with Figo represents a first structural step in that transition. With more than one million pet owners in our customer base, we see significant opportunities to scale insurance products and further strengthen our position within the European pet-care market."

Tapping the Vast, Uninsured Pet Market

The appeal of the pet insurance market is its immense, unrealized potential. The Dutch market alone is estimated to have a gross premium volume of approximately €120 million, yet market penetration is startlingly low. Currently, only around 5% of pets in the Netherlands are insured, leaving a vast majority of pet owners exposed to unexpected and often crippling veterinary costs.

This low adoption rate signals a market in its infancy, poised for explosive growth. Key drivers include the rising costs of advanced veterinary care and a cultural shift towards the "humanization" of pets, where owners are increasingly willing to invest in their animals' health and well-being. The broader European pet insurance market reflects this trend, with some analysts projecting a compound annual growth rate (CAGR) of over 15% between 2025 and 2030, potentially transforming it into a market worth over USD 17 billion.

By partnering with Figo Pet Insurance, PSH is aligning itself with a formidable player. Figo, a trade name of Veterfina N.V., is not only a leading provider in the Netherlands but is also part of Pinnacle Pet Group (PPG), the undisputed European market leader in pet insurance. PPG boasts a portfolio of over 2 million insured pets and has a history of aggressive expansion, having acquired Germany's market leader, AGILA Tierversicherung AG, in 2022. This backing provides the partnership with deep industry expertise, robust product offerings, and the scale needed to compete effectively.

Building an Integrated Pet Care Ecosystem

The collaboration is more than just a new product line; it is a cornerstone of PSH's vision to build a comprehensive, integrated pet care ecosystem. The strategy involves embedding Figo's insurance products directly into PSH's trusted B2C platforms, including Dierenapotheek.nl and Pharmacy4Pets.nl. This allows customers to purchase a policy within a "familiar and trusted online environment," reducing friction and leveraging existing brand loyalty.

The plan is to start in the Netherlands and then expand into the German market via the DrPetCare.de platform, another market where Figo already has a presence. The core of the strategy is to cross-sell insurance to PSH's massive customer base of over one million pet owners. By educating these existing customers on the benefits of insurance—namely, mitigating the financial stress of unexpected vet bills—PSH can enhance customer loyalty while unlocking a powerful new revenue stream.

This initiative aligns perfectly with PSH's stated "buy-and-build" strategy, which has seen the company make several strategic acquisitions in recent years, including Petlux B.V. in 2025. By adding services like insurance to its core offerings of pet supplies, nutrition, and veterinary products, PSH is evolving from a product retailer into a holistic service provider, aiming to capture a greater share of the lifetime value of each pet-owning customer.

Future Outlook and Market Expectations

Analysts and investors appear to view this strategic pivot favorably, seeing it as a savvy move to secure long-term, predictable income. Financial market projections reflect high optimism for PSH's future. Following a challenging 2025, where earnings per share (EPS) were estimated at -€0.37, analysts anticipate a significant turnaround, with EPS projected to approach breakeven at -€0.05 in 2026. This recovery is expected to be fueled by the new insurance segment.

Revenue forecasts are even more dramatic. After seeing 17% historical sales growth, PSH's revenue is projected to surge by 28% in 2026 and an astonishing 86% in 2027. These figures indicate that the market is pricing in the powerful synergy of combining PSH's customer reach with Figo's insurance products. The partnership is viewed not just as a defensive maneuver against regulatory headwinds, but as a potent offensive strategy that positions PSH for accelerated growth in the coming years. By transforming its business model, Pet Service Holding is aiming to solidify its role as a leading consolidator in the dynamic European pet care industry.