Insurtech firm Lemonade has successfully renewed its reinsurance program, led by the same tier-one carriers as the expiring treaty, the 2024 placement was oversubscribed on all dimensions as the company secured improved terms.
At the program’s core is 55% quota share protection, the same level as in recent years. Lemonade confirms that the variable ceding commissions are projected to be roughly equivalent or better to those under the outgoing agreements.
The reinsurance program covers all Lemonade businesses globally, and is in effect for a standard 12-month term.
Daniel Schreiber, Chief Executive Officer and Cofounder, Lemonade, commented, “Partnering once again with the world’s largest and most respected reinsurers who have chosen to stake their capital on the performance of our business is a big deal for Lemonade.
“Our program renews this year on yet better terms than last year, and was once again oversubscribed. This program allows us to continue to accelerate our growth in a very capital light mode.”
Additionally, a captive cell was established at a Bermuda transformer, which has been used to retain most of Lemonade’s windstorm exposure.
This structure was determined to offer a materially better cost/benefit profile, even though windstorm reinsurance capacity was available, the firm explains.
