Lemonade passes $1bn in premiums

Lemonade, the digital insurance firm powered by artificial intelligence (AI), has passed $1 billion of In Force Premium (IFP), marking a significant milestone for the company.

This figure has achieved just 8.5 years after selling its first policy, and reflecting a ~150% compound annual growth rate.

This rapid growth was enabled by Lemonade’s investment in technology, broad product portfolio, deep geographic reach, and a persistent focus on building the best customer experience, the firm stated.

Lemonade saw a significant improvement in its financial performance in the fourth quarter of 2024, with a gross profit surge of 99% year-over-year, reaching $64 million.

However, the company still reported a net loss of $30 million for the quarter, though this was an improvement from the $42.4 million loss in Q4 of the previous year, driven by growth spend.

Shai Wininger, Lemonade President and cofounder, commented: “Surpassing $1B in IFP with positive free cash flow and a healthy loss ratio is an important milestone for us.

“We’ll take a minute to celebrate today’s achievement, and get back to work on our journey to our next 10x!”

The firm highlighted the key role Lemonade Car, which will launch in Colorado on March 26, will play in the company’s accelerating growth plan.

Lemonade Car’s expansion will make Lemonade available to nearly 40% of the US car insurance market.

Colorado is a promising market for Lemonade Car, as residents spend approximately $7 billion on car insurance each year, with current Lemonade customers in the state contributing hundreds of millions of dollars annually to that total.

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