Why Lemonade Stock Skyrocketed This Week
With a single change it recently made in its operations, Lemonade (NYSE: LMND) stands to become significantly more profitable. On this major development, investors piled into the stock this holiday-shortened trading week to lift it to a nearly 24% increase, according to data compiled by S&P Global Market Intelligence.
On Tuesday, Lemonade announced it has renewed its reinsurance program (reinsurance is insurance for insurers, protecting them against a sudden wave of claims in catastrophic events). That wouldn't be anything earth-shaking, usually, but the company also managed to renegotiate it to effectively retain more of its premiums.
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Source Fool.com
