Trupanion Investor Presentation March 2017 Legal Disclaimers This - PowerPoint PPT Presentation

Trupanion Investor Presentation March 2017

Legal Disclaimers This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to execute its business plans and financial objectives and its future operating results and expenditures. These forward-looking statements are based upon the current expectations and beliefs of Trupanion’s management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to increase the number of Territory Partners and active hospitals; compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan; fluctuations in the Canadian currency exchange rate; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; the ability to protect and enforce Trupanion’s intellectual property rights; third-party claims including litigation and regulatory actions; and the ability to recognize benefits from investments in new solutions and enhancements to Trupanion’s technology platform and website. For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion’s Annual Report on Form 10-K for the year ended December 31, 2016 and any subsequently filed reports on Forms 10-Q and 8-K. All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system at www.sec.gov or the Investor Relations section of Trupanion’s website at http://investors.trupanion.com. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of non-GAAP financial measures to the corresponding GAAP measures is provided on our Investor Relations website. 2

Our Mission Our mission is to help the pets we all love receive the best veterinary care 3

Trupanion at a Glance • Pure-play focused on simple, fair and high-value Driving Category Growth medical insurance for pets 37 36% • Comprehensive, lifelong coverage for dogs and Consecutive Quarters of Total Revenue 25%+ Revenue Growth 5-year CAGR 1 cats, including hereditary and congenital Strong Member Loyalty conditions ( i.e. , the most likely conditions to occur) 98.60% • Pet owners are free to choose any veterinarian, Average Monthly Retention 2 emergency care, or specialty hospital • 90% of covered veterinary costs as invoiced, with no payout limits • Individual pets are not penalized for needing treatment or getting older • Veterinarians can be paid directly, and nearly instantaneously with Trupanion Express™ 1 As of 12/31/16. 2 For the 12-month period ended 12/31/2016. Average monthly retention is calculated as the monthly retention rate of enrolled pets for each applicable period averaged over the 12 months prior to 4 the period end date.

Compelling Value Proposition For Both Pet Owners & Veterinarians For Pet Owners For Veterinarians Comprehensive coverage that gives Ability to practice at the highest level • • pet owners flexibility in choice of care Freedom to be the most effective • Provides peace of mind • advocate for the pet Eliminates financial uncertainty and • Increased revenue growth & pet • reduces financial burden economics Pays veterinarian invoices quickly & • seamlessly Trupanion unites pet owners & veterinarians to provide the best care for the pets they love 5

Predictable High Growth Subscription Model Total Revenue by New vs. Existing Pets $60.0 (dollars, in millions) $51.3 $48.4 $50.0 $45.8 $42.7 $40.2 $40.0 $37.9 $35.6 $33.3 $31.9 $30.3 $28.1 $30.0 $25.6 $24.0 $22.1 $19.8 $20.0 $17.8 $15.9 $3.1 $4.4 $5.3 $6.3 $7.6 $8.8 $9.9 $10.7 $12.0 $13.2$14.5 $10.0 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14 '14 '14 '14 '15 '15 '15 '15 '16 '16 '16 '16 Existing Pets New Pets 6

U.S. Pet Owners Spend Generously on Their Pets Total U.S. Pet Industry Spend 1 $63 ($ in billions) $60 $58 $56 Total pet spend in U.S. • $53 $51 estimated at $63 billion in $48 $46 2016 $43 $41 $39 Consistent growth through • $36 $34 recessionary periods $32 $30 $29 Veterinarian industry spend • has grown at a similar rate (a 5% CAGR since 2001, totaling $15 billion in 2015) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 7 1 Source: APPA US Pet Industry Spending Figures & Future Outlook

The Market for Medical Insurance for Pets is Underpenetrated in North America 1,2,3,4 Massive Underpenetrated Market Potential Market Size by Penetration Rate ($ in billions) 180 Million Pets in U.S. & Canada $23.9 40% Pets in the U.S. and Canada 180M Illustrative Monthly Average Revenue $49.17 Pet Pet (5) Penetration in the UK 25% Total Addressable Market $26.6B 25% United States and Canada are significantly underpenetrated when 14% compared to many other $7.2 developed countries 8% $4.8 5% 5% $2.4 ~2% 1% $1.0 % of Pets with 1.0% 2.5% 5.0% 7.5% 25.0% Insurance: 1 American Pet Products Association, National Pet Owners Survey, 2015 – 2016 . 2 Kynetec on behalf of the Canadian Animal Health Institute , CAHI Estimate of Canadian Dog and Cat Population Survey, 2016. 3 Packaged Facts, a division of Market Research Group, LLC, Pet Insurance in North America, 5th Edition, October 2013. 4 Munich RE, How to Unlock the Potential of Pet Health?, May 2013. 8 5 Represents our monthly average revenue per pet for the three month period ended December 31, 2016.

Penetration Driven by Product Value Proposition United Kingdom • 16 million cats & dogs United States • 4,200 vet hospitals • 25% market penetration • 164 million cats & dogs • First offered: 1970 • 30,000 vet hospitals • 1% market penetration • First offered: 1982 U.K. Product (the Trupanion approach) Legacy U.S. Product (an insurance-minded approach)  Sourced primarily from veterinary referrals; х Sourced primarily direct to consumer appealed to new customers with vet-issued х Provided limited coverage, excluding the conditions trial certificates most likely to occur  Provided broad coverage х Imposed pricing caps and fee schedules  Generated high satisfaction rates with pet х Generated low satisfaction rates with pet owners owners and veterinarians and veterinarians Trupanion’s product offering aligns with the U.K. value proposition and marketing strategy 9

Attractive Trupanion Adoption & Economics in Relatively Established Markets Trupanion issued first policy in Canada in 2000 and first policy in the U.S. in 2008 Regional Case Study Analysis • Region of Western Canada (entered 2003) • High penetration rates: − 2/3rd active hospital base 1,2 − Quotes generated each month equal to • Territory Partner presence for >10 years ~25% of estimated number of pets acquired 2 − ~5% of new pets enrolling with TRUP each month 1 • Human population of ~2.7 million • Accelerated growth: • Cats & dogs population of ~1.3 million − Annual pet growth > 20% 3 − Annual revenue growth > 30% 3 • >18,000 Trupanion enrolled pets 1 • Attractive economics: − LVP to PAC > 5:1 1 The above numbers are as of Q2 2015. For competitive reasons, we are not providing ongoing disclosure of this cohort. 1 For the period ended June 30, 2015. 2 Defined as a hospital that has had a pet enrolled over the three previous months 10 3 For the annual period ended December 31, 2014.