Lemonade Reports Strong Earnings -- But What's Next?
In this video I will be going over Lemonade's (NYSE: LMND) Q4 earnings report and talk about what's next for the fintech company. The company has enjoyed steady growth in 2020. It reported in force premium (IFP) $213M +87% -- a 5% beat. Gross Earned Premium (GEP) +92% year-over-year to $50M -- a 6% beat. Premium user was up 20% to $213. The addition of pet insurance certainly gave them a boost, as homeowner & pet now equal 40% of new business in Q4. Also, roughly 50% of IFP attributable to their pet product at year-end was generated by cross sales to existing customers.
We will have to wait for Q1 to get more information regarding term life but it's expected to look promising. Don't let the decrease in revenues fool you. Revenues were severely hurt by Lemonade's 2020 accounting change, keeping it from recognizing ceded premiums. You can expect Lemonade to continue to roll out new products and expand geographically. The company looks good and healthy.
Source Fool.com
