However, the company also anticipates $45 million in loss claims tied to the California wildfires in the upcoming quarter.
Lemonade ended Q4 2024 with 2.43 million customers, reflecting a 20% year-over-year increase, adding approximately 117,000 new policyholders in the quarter. The company’s in-force premium—a key measure of growth—rose 26% year-over-year to reach $944 million.
Other financial highlights include:
- Premium per customer: $388, up 5% from Q4 2023.
- Sales and marketing spend: $47.7 million, nearly doubling from $24.5 million in Q4 2023.
- Gross loss ratio: 63%.
- Combined ratio: 184% for the quarter and 197% for the year.
- Net loss: $30 million for Q4, with a full-year net loss of $202 million.
- Cash reserves: Approximately $1 billion, with $271.4 million held as regulatory surplus by Lemonade’s insurance subsidiaries.
Despite the anticipated wildfire-related losses, Lemonade’s leadership remains optimistic about its trajectory, citing strong customer acquisition and premium growth as indicators of sustained momentum heading into 2025.
Lemonade CEO Daniel Schreiber told Yahoo Finance: “this was by far and away, and by any measure, pretty much the best quarter for the company ever.”
“We saw approximately or approaching 1,000 of our customers suffer during the [California] fires. So we’ve been very busy tending to their claims as best we can,” he said.
He continued: “And because we have pretty sophisticated and conservative reinsurance structures, the ultimate impact on our EBITDA this year and in Q1 will be as modest as $20 million. So our people, our systems, and our financial structures were all tested by these devastating cataclysmic events. And I think they were all true to the moment.”
Meet Lemonade Leaders at Insurtech Insights Europe 2025
Daniel Schreiber, CEO and co-founder of Lemonade will be taking to the main stage at Insurtech Insights Europe 2025 with the keynote: Forget Everything You Know About Insurance: How AI and Automation Are Changing the Game at 9:15 am on Wednesday March 19th. Known as one of the most influential voices in insurtech, Daniel’s journey reflects a profound commitment to transforming traditional practices and pushing the boundaries of what’s possible in insurance with Lemonade’s AI-driven approach. This is your chance to hear from the leader who’s changing the game – and you won’t want to miss it.
Daniel shared his enthusiasm for the upcoming Insurtech Insights Europe: “AI promises to transform all our lives and every industry – and insurance more than most. I look forward to sharing some of the ways we are harnessing this abundant, powerful, and cheap intelligence, and some of the remarkable results we are seeing in our numbers.”
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