Why Lemonade Stock Dropped Today
Shares of Lemonade (NYSE: LMND) fell 7% on Thursday, extending the sharp decline in the artificial intelligence (AI)-powered insurance company's stock price since its fourth-quarter earnings report on Monday.
Lemonade's customer count jumped 56% year over year to more than 1 million. It also saw its premium per customer rise by 20%, to $213. Together, this helped to fuel an 87% surge in Lemonade's in force premium (IFP) -- essentially, the aggregate annualized premiums paid by customers with active insurance policies -- to $213 million.
Moreover, Lemonade's full-year loss ratio declined from 79% in 2019 to 71% in 2020. This important operational metric suggests that Lemonade's profitability is improving as it scales its business.
Source Fool.com
