Pethealth reports Q2 results

Total revenue for Pethealth Inc. (TSX VENTURE:PTZ) for the second quarter of 2005 rose 22% to reach $3.5 million from $2.9 million for the same period last year.The Company’s net loss for the Q2 decreased slightly to $107,109 from $109,171 for the comparable quarter ended June 30, 2004.Pethealth’s insurance operations saw a gross written premium for the Q2 of $7.64 million, an increase of 21% over the same period in 2004. Operations currently consist of the distribution and administration of the PetCare, ShelterCare, QuickCare and CherryBlue pet insurance programs.Pethealth’s insurance revenues are earned through commission and management fees generated from the placement of core and ShelterCare pet insurance policies at a blended commission rate of approximately 37%. Commission and management fee revenues earned from core policies increased by 28% to $2,392,317 over Q2 2004 while commissions and management fees earned from ShelterCare policies in force declined by 32%. The growth in revenues earned from core policies is the result of the 25% year on year increase in the number of core policies in force, which stood at 109,437 at June 30, 2005. The reduction in commission and management fees earned on the placement of ShelterCare policies were due to the decision taken in Q4 2004 to reduce the prepaid portion of the policies from 60 days to 30 days.