Insurtech Lemonade reported a third quarter 20243 net loss of nearly $68 million and a year-to-date loss of $172.2 million.
Results were in comparison to a net loss of $61.5 during the same quarter and a loss of $194.5 as of Sept. 30 last year.
In a letter to shareholders, Lemonade said its Q3 gross loss ratio went down 10 points to 73 (net loss ratio was 81 compared to 88 a year ago) but its operating expense increased 27% to $124.5 million, driven by growth spend for new customers. Growth spend included in sales and marketing expense was about $40 million in Q3 2024 compared to $12.6 million in Q3 2023.
Lemonade said its loss ratios have improved or stabilized across all lines of business due to its “continuously improving” artificial intelligence model and rate increases “approaching rate adequacy.” The insurer said auto will become a “key driver of accelerated growth.”
“We have delivered sustained consistency in our execution for several quarters, and are well positioned to continue the trends of accelerating growth and improving efficiencies in the quarters and years to follow,” the direct provider of home, auto, renters, pet and life insurance told shareholders in the letter, highlighting a 71% increase in Q3 gross profit to $37.5 million.
Topics Profit Loss
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