Metromile announces Q1 results

Yesterday, Metromile announced their first-quarter results. The company added 3,323 new policies since Q4 2020 while spending $8.5 million on marketing, sales, underwriting, and device costs. Assuming there wasn’t a significant number of policy cancellations during the quarter, we’re looking at around $2,500 to acquire one policy.

The average annual premium per policy was $1,100 as of March 31, 2021, compared to $1,125 on March 31, 2020, due to lower miles driven on a
year-over-year basis.

As of March 31, 2021, one-year new customer retention was 69.9% for policies that completed their second term in Q1 2021.

Direct earned premium in Q1 2021 was $25.8 million, a 4.2% increase from the prior-year period.

The loss ratio for the quarter was 65.1%, “primarily due to better pricing, enhanced fraud detection and a reduction in miles driven year-over-year during 2021.”

Metromile’s enterprise business generated $1 million in the quarter, an increase from $0.6 million in the prior-year period .