According to an official statement, Lemonade reported an impressive 18% year-on-year surge in in-force premium, reaching $719 million. Simultaneously, its gross loss ratio demonstrated a noteworthy 11% improvement, dropping to 83% during the quarter.
In addition to its top-line growth, Lemonade witnessed a 12% increase in customer count, reaching nearly 2 million. The premium per customer also saw a notable 6% year-on-year rise, now standing at $362 million.
The positive trajectory continued with a 27% increase in gross earned premium, amounting to $173.2 million. This boost was primarily attributed to the higher level of in-force premium.
Lemonade’s Q3 2023 revenue saw a remarkable 55% upswing, totaling $114.5 million. This growth was propelled by both increased gross earned premium and a surge in investment income.
In terms of profit, Lemonade reported a gross profit of $21.9 million for Q3 2023, a significant rise from the $8.1 million recorded a year earlier. The company attributes this positive shift to higher earned premium and an improved loss ratio.
The total operating expense for the same period decreased by 11% year-on-year, amounting to $98.2 million. This reduction was fueled by a decrease in growth spend for customer acquisition.
Despite these encouraging trends, Lemonade did report a net loss of $61.5 million for the third quarter of 2023. However, it’s worth noting that this figure represents a notable narrowing compared to the $91.4 million loss reported a year earlier.
Lemonade provides a comprehensive range of insurance options, including coverage for renters, homeowners, cars, pets, and life. Harnessing the capabilities of artificial intelligence and driven by a commitment to social impact, Lemonade’s innovative approach replaces traditional brokers and bureaucratic processes with advanced bots and machine learning. Striving for a seamless experience, the company aims for a paperwork-free and instant service.
As a Certified B-Corp, Lemonade stands out by allocating unused premiums to nonprofits chosen by its community during the annual Giveback event. Currently serving customers in the US, Germany, the Netherlands, France, and the UK, Lemonade’s global expansion is an ongoing initiative.
Author: Joanna England
