Lemonade, a digital insurance firm powered by AI, has posted a net loss of $57.2 million for the second quarter of 2024, compared to a loss of $67.2 million from the second quarter of 2023.
At the same time, in-force premium (IFP) increased by 22% year on year (YoY) to $838.8 million, while gross loss ratio came in at 79%, improving by a notable 15 points YoY.
Meanwhile, Lemonade’s Q2 2024 gross earned premium was $199.9 million, an increase of $36.0 million, or 22%, compared to the second quarter of 2023, reportedly due to the increase of IFP earned during the quarter.
The organisation’s total revenue in the second quarter was $122.0 million, an increase of $17.4 million, or 17%, as
compared to the second quarter of 2023, which the firm noted was mainly due to the increase of gross earned premium and net investment income.
In addition, gross profit in Q2 2024 sat at $30.8 million, representing an increase of $18.7 million, or 155%, compared to the prior year quarter, and the Adjusted EBITDA loss was $43.0 million, which improved by $9.7, or 18%, as compared to an Adjusted EBITDA loss of $52.7 million in the same quarter last year.
Looking towards its results for the third quarter of 2024, Lemonade said in a letter to its shareholders that it now anticipates in force premium to reach $875 – $879 million (~22% growth YoY), gross earned premium to reach $208 – $210 million (~21% growth YoY), revenue to reach $124 – $126 million (~10% growth YoY), and an Adjusted EBITDA loss of ($58) – ($56) million.
However, looking towards year-end 2024 results, Lemonade now anticipates in force premium to reach $940 – $944 million (~26% growth YoY), gross earned premium to reach $818 – $822 million (~22% growth YoY), revenue to reach between $511 – $515 million (~20% growth YoY), and an Adjusted EBITDA loss of ($155) – ($151) million.
