Why Trupanion Stock Is Surging Thursday After The Close

Trupanion Inc (NASDAQ: TRUP) shares are rising in extended trading Thursday after California and New York approved the company's requested rate increases.

The Details: California approved over a 12% rate increase and New York approved an 18% rate increase. Over the last seven months, total approved rate increases in California are now up 21% and in New York are up to approximately 25%. 

As a result of the approvals, Trupanion, which offers pet insurance, expects to have 19.7% pricing action flowing through its book by the end of August. That number is expected to climb to 21.6% by the end of September.

"We are very pleased with the recent rate approvals from two of our largest states, New York and California," said Margi Tooth, president of Trupanion. 

"These rate approvals, which are necessary in today's rising cost of veterinary care environment, demonstrate a big step forward towards achieving our value proposition, which we believe to be the highest in the industry."

Trupanion reiterated expectations for positive free cash flow in the fourth quarter of 2023. 

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TRUP Price Action: Trupanion shares were up 15.27% after hours at $23.70 at the time of publication, according to Benzinga Pro.

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