Summary List Placement
The US-based full stack property and casualty (P&C) insurtech reached $7.3 million in gross profits, an 83% increase from Q3 2019, per a letter to shareholders. Its net losses fell to $30.9 million compared with $31.1 million at the same time last year, bringing Lemonade closer to profitability. This comes after the insurtech earned $335 million from its IPO launched in Q3 2020. Looking ahead to Q4, Lemonade plans to add term life insurance and continue its European expansion with France.
Lemonade added pet insurance in Q3, enabling it to cross-sell to existing customers and increase their premiums, while improved operational efficiencies helped narrow net losses. The new product complements its existing renters and homeowners policies, as 70% of its existing users already have pets.
Among those who added pet policies, the premium per customer—how much each customer pays divided by the number of customers—nearly quadrupled. And this has led the overall premium per customer to rise 19% year over year, reaching $201 annually.
Pet coverage has also boosted customer acquisition, with 40% of pet policies sold to new users—and 5% of these newcomers have since added renters or homeowners coverage, …read more
Source:: Businessinsider – Finance