Lemonade has renewed its global reinsurance programme for a further 12 months, introducing changes designed to improve capital efficiency, retain more premium income and strengthen protection against catastrophe losses.

The renewed programme takes effect on 1 July 2026 and reflects the digital insurer’s strategy of retaining a greater share of underwriting profits while enhancing coverage for high-volatility risks.

Lower Quota Share, Greater Profit Retention

Under the new agreements, Lemonade expects to cede approximately 18% of premiums to reinsurers, compared with around 20% under the previous programme.

The lower quota share allows the company to retain a larger portion of premiums generated by its growing insurance portfolio, increasing its share of future underwriting profits while maintaining broad reinsurance support.

According to Lemonade, the revised treaty offers more attractive economics than the programme it replaces.

Expanded Catastrophe Coverage

Alongside retaining more premium, Lemonade has strengthened its protection against catastrophe and severe weather events.

The renewed programme includes increased coverage for catastrophe-exposed and higher-volatility risks, including additional tail catastrophe protection designed to provide greater resilience against large-scale loss events.

The enhanced catastrophe protection reflects the increasing importance of reinsurance as insurers respond to more frequent and costly natural disasters.

Broader Reinsurance Panel

The renewed programme continues to support Lemonade’s global insurance operations and includes the addition of a new reinsurer to its primary quota share panel alongside existing reinsurance partners.

Expanding the panel further diversifies the company’s reinsurance relationships while reinforcing long-term capacity for future growth.

Refining Ancillary Reinsurance Structures

As part of the renewal, Lemonade also plans to adjust several of its ancillary reinsurance arrangements.

The company intends to allow its Property Per Risk (PPR) cover to expire while expanding its European catastrophe excess-of-loss (XOL) programme, aligning its protection more closely with its evolving risk profile.

The renewed reinsurance structure will remain in place for the standard 12-month treaty period.

Leadership Perspective

Tim Bixby, Chief Financial Officer of Lemonade, said the renewal simultaneously improves the company’s economics, risk protection and capital efficiency.

“This renewal improves Lemonade’s reinsurance economics, coverage, and capital efficiency at the same time. We are retaining more premium, adding protection against the volatility that matters most, and doing so on terms that are attractive on a risk-adjusted basis.”

The renewal demonstrates Lemonade’s continued focus on optimising its balance sheet while supporting growth through a reinsurance programme that balances capital efficiency with enhanced protection against increasingly volatile catastrophe risks.