Breaking News This Morning! - Pineapple Financial (NYSE: PAPL) - Pineapple Financial Inc. Launches Pineapple Insurance

Breaking News out this morning on Pineapple Financial (NYSE: PAPL)  FDR Member, [Pineapple Financial (NYSE: PAPL) - Pineapple Financial Inc. Launches Pineapple Insurance](  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 $122 billion CAD in premiums in 2022 alone.  A Multi-Billion Dollar Opportunity: The Canadian life and health insurance sector is forecasted to grow at an annualized rate of 4.5% through 2027, with increasing demand driven by economic uncertainty, rising personal debt, and consumer desire for financial security. By integrating insurance solutions into the mortgage process, Pineapple stands to benefit from a market where over 700,000 new mortgages are issued annually in Canada, alongside the 47% of mortgages expected to renew in the next three years. This creates an immense opportunity to cross-sell insurance products and expand revenue with every mortgage transaction.  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.  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 above 70% 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. Rate cuts are here! And, Members, we believe it could inspire a rotation into company stocks that have been pressured in recent quarters. That list should include Pineapple Financial, Inc. (NYSE American: PAPL). Like others in its sector, PAPL stock took a hit this year, trading lower by 52% at its current $0.81 price. That wasn't surprising as higher rates, rising inflation, and tight consumer pockets strained companies in the mortgage space. Finally, the much-anticipated breath of relief, lower interest rates, has been taken.  Yesterday, the Fed announced a 25 basis point reduction in its funds rate. The news fueled PAPL to a roughly 3% gain. But here's the better news- and why we believe PAPL can be poised for a move higher. The Fed hinted at additional rate cuts being forthcoming. We believe that bias will cause analysts to rework valuation models to more appropriately value companies in the mortgage space. Essential to our thesis- PAPL could be on their list. If so, an update could be a driver for significantly higher prices. Why?  Because PAPL stock has already earned a BUY rating and price target of $5.50 from an EF Hutton analyst. That opinion was published in May while interest rates were standing firm. However, the bullish case for PAPL isn't based entirely on an environment of lower interest rates. The analyst at EF Hutton bases his valuation on a 2026 view rather than next year, saying 2026 better captures a full year's worth of Pineapple's expansion into the U.S. market and the launch of its insurance offerings in Canada. They see the company as well positioned to take market share from conventional competition because of its more efficient automated suite of solutions. Thus, early to this investment proposition could benefit investors with a medium to long-term investment horizon. That's not to suggest the company can't do well in the short term.  It can, noting that high tide raises all ships. In other words, PAPL investment is a timely consideration that serves all investor appetites. Moreover, this company isn't the typical sector player. Despite market challenges, PAPL has a track record of growth from a scalable platform that poises it for expansion. Success is inherent to ushering in a new era of efficiency and innovation, which puts them at the forefront of a transformative period in the Canadian mortgage market.  Differences are advantages...  Its unique blend of cutting-edge technology and data-driven insights is redefining how mortgage brokers operate. Keep in mind, too, that yesterday's rate cut in the U.S. isn't the only inspiration for higher share prices. The Bank of Canada recently lowered its benchmark interest rate to 4.25%. This global sentiment toward lowering rates could be a relentless near-term value driver for PAPL, and it's hard for anyone to argue against the company being perfectly positioned to capture market share and expand its influence in the mortgage sector.  They are already in the right place at the right time. The Canadian housing market is on the verge of significant expansion. In 2023, the country witnessed over 240,000 housing completions, with an additional 260,000 units expected by the end of 2024. This increased supply of homes will inevitably drive demand for mortgage financing, providing Pineapple with significant revenue-generating opportunities. That's not all. With 1.2 million mortgages, or roughly 20% of the total Canadian mortgage market, set to renew in the coming year, the company is also positioned to capitalize on an incredible $440 billion in potential mortgage volume. This combination of new housing supply and mortgage renewals presents a rare opportunity for growth for companies positioned to handle it. Pineapple Financial is. And differently.  The PineappleONE Express...  Pineapple's advanced platform, PineappleONE, launched in August, leverages real-time data analytics to offer personalized mortgage solutions at scale. As homebuyers and those renewing their mortgages seek out the best financial terms in a lower-rate environment, PineappleONE can quickly identify, target, and engage these consumers, giving them a significant competitive edge. Notably, the platform is not just a tool for customer acquisition but also designed to maximize retention—key to Pineapple's long-term growth strategy.  It's current strategy is also working well. In the third quarter of fiscal 2024, PineappleONE helped brokers achieve a 32% reduction in deal processing time. This operational efficiency drove a 22.72% increase in mortgage loan volumes, with $377.64 million in residential mortgages closed in the period, up from $307.73 million the previous year. This volume increase resulted in a 20.43% boost in revenue, with Q3 fiscal 2024 revenues reaching $736,448, a sharp increase from $603,231 in the same quarter of 2023.  Moving forward, Pineapple's performance could be even better. Many believe that the U.S. Fed's and Bank of Canada's recent rate cuts could be the beginning of a consistent trend. If so, PAPL is ideally positioned to capitalize on easing monetary policy, which will likely enhance mortgage affordability for first-time homebuyers and existing homeowners looking to refinance. Still, the most significant value driver may not be those mentioned.  Here's the driver to focus on...  As Canada's mortgage market braces for a wave of renewals, with 45% of existing mortgages set to renew within the next 18 months, PineappleONE's enhanced capabilities offer the perfect mix of deliverables from its ability to automate complex mortgage calculations that enable brokers to deliver precise, side-by-side financial scenarios. This facilitates clients in making informed decisions about refinancing and renewal strategies, ultimately improving client satisfaction and retention rates. The result is a win-win-win scenario in a customer-centric mortgage process that benefits brokers, consumers, and Pineapple's bottom line.  And with a platform focused on maximizing broker efficiency, customer retention, and technology-driven solutions, growth beyond the bullish 579% increase in the PAPL stock price forecast by EF Hutton may indeed be in play. In other words, Members, this Pineapple looks ripe for the taking. To Your Trading Success, Michael Reece Editor, Financial Driven Research Sources: [( [( [( [( [( [( [( [( [( [( © 2024 Financial Driven Research, All Rights Reserved. Financial Driven Research (“FDR” or “Company”) is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or inves∙tment for any specific individual. FDR full disclosure is to be read and fully understood before using FDR website or joining FDR email or sms list. 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