What to Expect From Lemonade's Q3 Earnings
Lemonade (NYSE: LMND) is reporting Q3 earnings on November 8. So as always, I will recap what happened with Lemonade in this quarter. We're going to have a look at their Q2 numbers and some of the company's activities during the quarter. You can find the video below, but here are some highlights.
In force premium (IFP) growth accelerated to 91% year over year with IFP of $297 million and about 1.2 million customers, up 48% YOY. Premium per customer increased 29% YOY to $246. Gross earned premium increased 90% YOY to $67 million.
A year ago, Lemonade transitioned to a quota share reinsurance program. The company agreed to cede 75% of the premium to a panel of partners, thus retaining 25% of the risk on the balance sheet. Last quarter it announced that it is reducing that to 70%, which will have a positive effect in future quarters.
Source Fool.com
