Lemonade, a digital insurance firm powered by AI and social impact, has reported an 18% year-on-year rise in in-force premium to $719 million for the third quarter of 2023, while its gross loss ratio fell 11% to 83% in the quarter.
As well as top line growth, Lemonade’s customer count increased 12% to almost 2 million, and premium per customer rose 6% year-on-year to $362 million.
Gross earned premium also increased, by 27% or $36.8 million to $173.2 million, mostly as a result of the higher level of in-force premium.
At $114.5 million, the firm’s revenue increased 55% in Q3 2023, driven by both higher gross earned premium and greater investment income.
In terms of profit, Lemonade has reported Q3 2023 gross profit of $21.9 million compared with $8.1 million a year earlier, which the firm attributes to the higher earned premium and improved loss ratio.
Total operating expense fell 11% year-on-year to $98.2 million, driven by lower growth spend for customer acquisition.
Despite the improvements, Lemonade has still reported a net loss of $61.5 million for the third quarter of 2023, although this is narrower than the $91.4 million loss seen a year earlier.
