Lemonade, a digital insurance firm powered by AI, has reported a 20% year-on-year rise in in-force premium to $747 million for the fourth quarter of 2023, while its gross loss ratio fell 12% to 77% in the quarter.
Lemonade’s customer count increased 12% to over 2 million in Q4’23, and premium per customer rose 7% year-on-year to $369 million.
Gross earned premium also increased by $29.7 million or 20% to $181 million, compared to the fourth quarter of 2022, primarily due to the increase of IFP earned during the quarter.
At $115.5 million, the firm’s revenue increased 31% in Q4’23, primarily due to the increase of gross earned premium during the quarter, coupled with greater investment income.
In terms of profit, Lemonade has reported Q4 2023 gross profit of $33.6 million increased by $20.9 million or 165% as compared to the fourth quarter of 2022, primarily due to higher earned premium and improved loss ratio in the fourth quarter this year.
Total operating expense, excluding net loss and loss adjustment expense, fell by 5% to $90.1 million in the fourth quarter of 2023, primarily driven by lower employee related costs.
Despite the improvements, Lemonade still reported a net loss of $42.4 million in Q4’23, although this is narrower than the $63.7 million loss seen a year earlier.
