Avi Ben-Hutta
Editor at Coverager
Metromile

Metromile’s Q1 2022 highlights

Metromile shared its Q1 2022 results and here are some highlights:

  • Policies in force stood at 101,294, a 6% increase compared to 95,958 at the end of the first quarter of 2021.
  • Direct earned premium in the first quarter of 2022 was $28.1 million, an 8.9% increase from the prior-year period.
  • The average annual premium per policy was $1,142, compared to $1,100 on March 31, 2021, due to more miles being driven on a YoY basis.
  • Premium run-rate was $116 million, a 9.6% increase compared to March 31, 2021.
  • Loss ratio was 85.1%, compared to 65.1% in the prior-year period, resulting from an increase in claims severity.
  • Total enterprise software revenue was $1.2 million, compared to $1 million in the prior-year period.
  • Total operating expense, which excludes loss, loss adjustment expenses, marketing and sales, and variable costs associated with servicing policies, was $23.4 million, which includes $0.3 million of transaction-related expense, compared to $12.5 million in the prior-year period, driven primarily by increased staffing to support growth initiatives and higher stock-based compensation expense.
  • Total marketing, sales, underwriting, and device costs were $8.2 million, compared to $8.5 million in the prior-year period.
  • Cash, cash equivalents, and highly liquid money market investments totaled $93.3 million as of March 31, 2022, including $2.4 million within the Metromile Enterprise entity.
  • Net loss for the quarter was ~$34 million.

Metromile ended the quarter with a net gain of 2,878 policies when compared to Q4 2021. Assuming there wasn’t a significant number of policy cancellations during the quarter, we’re looking at around $2,800 to acquire one policy.

In the SEC filing, Metromile states that as of March 31, 2022, it had committed to a plan to sell its enterprise business solutions segment. This is an interesting development considering this tweet from Lemonade co-founder Shai Wininger.

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