Lemonade, the digital insurance company powered by AI and social impact, opted to reduce its quota share cession to approximately 18% from 20% at its July 1 reinsurance renewal, meaning the carrier will retain a greater share of its expanding gross profit.
Alongside the lower quota share cession for the 2026-2027 reinsurance programme, Lemonade secured more coverage for higher-volatility and catastrophe-exposed risks, including additional tail catastrophe reinsurance protection.
The firm feels that the economics of the renewed programme are more attractive than those of the expiring treaty, when Lemonade cut the ceded portion of its quota share reinsurance from roughly 55% to 20%.
Unchanged from the 2025-2026 programme is the fact it covers the company’s global business. This year, one new reinsurer has joined Lemonade’s primary quota share panel alongside existing partners, which expands its reinsurance support.
Further, as part of its July 1 2026 renewal, Lemonade says that it expects to update its ancillary reinsurance programmes, including allowing its Property Per Risk (PPR) protection to expire while expanding its European catastrophe excess of loss programme. The renewed programme is expected to be in effect for a standard 12-month term.
Tim Bixby, CFO of Lemonade, commented on the renewal: “This renewal improves Lemonade’s reinsurance economics, coverage, and capital efficiency at the same time. We are retaining more premium, adding protection against the volatility that matters most, and doing so on terms that are attractive on a risk-adjusted basis.”
