Lemonade’s Q2 2022 highlights
Lemonade shared their Q2 2022 results. Here are some highlights:
- The company ended the quarter with 1,579,936 customers, a 31% increase compared to Q2 2021. From Q1 to Q2 of this year, Lemonade grew its customer base by ~76k.
- In-force premium reached $458 million, a 54% increase compared to Q2 2021.
- Premium per customer stood at $290, an increase of 18% compared to Q2 2021.
- Gross loss ratio was 86% vs 74% in Q2 2021.
- Net loss for the quarter was $67.9 million, compared to $55.6 million in Q2 2021. Since the beginning of the year, Lemonade reported a net loss of $142.7 million.
- Sales and marketing expense for the quarter was $37 million, compared to $33.1 million in Q2 2021.
- The company’s cash, cash equivalents, and investments totaled approximately $1 billion at June 30, 2022 as compared to $1.1 billion as of December 31, 2021, primarily reflecting the $79.7 million of net cash used in operations since December 3.
- Lemonade submitted about 100 rate filings in the past 12 months.
- In Illinois, 36% of all Lemonade Car insurance sales in Q2 were cross or upsells. Last we reported, Lemonade had under 3k car policies in Illinois.
- Since the closing of the Metromile transaction, Lemonade has seen a significant change in its product mix – renters now comprise about a third of its book, down from almost a half, while car jumped from 1% to 20%. “During this transitional time, and until we can offer a unified Lemonade Car experience, we expect to expend little-to-no marketing dollars on acquiring new customers to Metromile. Accordingly, we anticipate Car to represent a somewhat declining portion of our book in H2, given the natural churn inherent in the business.”
- In the past 12 months, Lemonade handled twice as many claims as they did in their first ~4 years combined.
- 73% of Lemonade’s premiums in Q2 originated from customers who have been with the company less than 24 months. “For incumbents it’s the other way around: the overwhelming majority of their customer are comfortably beyond their second anniversary. A health check that fails to account for this, will yield an unduly grim prognosis.”
Get Coverager to your inboxA really good email covering top news.