Lemonade releases Q4 2023 results

Lemonade released its Q4 2023 results, ending the year with 2,026,918 customers.

In terms of customer growth, 2023 was the company’s slowest year when looking at the past five years.

YearCustomer Base GrowthYoY Growth

In-force premium reached $747 million, an increase of 20% compared to the same period last year.

Premium per customer stood at $369, a 7% YoY increase.

Lemonade is rebalancing its portfolio to reduce homeowners exposure.

In Q4, about 30% of Lemonade’s net-new customers came from its European business. 18 month ago, this figure stood at 3%.

The company spent $102 million on sales and marketing in 2023, a 26% decrease compared to 2022.

Net loss for the year stood at $237 million, compared to a $298 million net loss in 2022.

Gross loss ratio was 77% for the quarter and 85% for the year. Net loss ratio was 78% for the quarter and 89% for the year.

The company’s cash, cash equivalents, and investments totaled approximately $945 million at December 31, 2023.