Lemonade’s in-force premium climbs to $889.1m in Q3’24

Lemonade, the digital insurance firm powered by artificial intelligence (AI), has reported a net loss in Q3 2024 of $67.7 million, compared to a loss of $61.5 million in the third quarter of 2023, while it’s in-force premium (IFP) increased by 24% to $889.1 million.

The company also posted a 73% gross loss ratio during the third quarter of 2024, compared to last year’s 83%, while net loss ratio sat at 81%, compared to 88% from last year.

At the same time, Lemonade’s gross earned premium for Q3’24 was $213.1 million, an increase of $39.9 million or 23%, compared to the third quarter of 2023, primarily due to the increase of IFP earned during the quarter.

All in all, the firm’s total revenue in the third quarter was $136.6 million, an increase of $22.1 million or 19%, compared to the prior year quarter.

Lemonade explained that this was primarily due to the increase in gross earned premium, ceding commission income, and net investment income.

Meanwhile, gross profit in Q3’24 increased by $15.6 million or 71% to $37.5 million, compared to Q3’23. Lemonade attributed this growth towards higher earned premium and improved loss ratio in the quarter.

Lemonade’s adjusted EBITDA loss sat at $49.0 million for the quarter, as compared to an adjusted EBITDA loss
of $40.2 million in the third quarter of 2023, which the firm said was primarily due to higher growth spend in the third quarter this year.

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