Lemonade’s Q1 2022 highlights

Lemonade shared their Q1 2022 results and here are some highlights:

• The company ended the quarter with 1,504,197 customers, a 37% increase compared to the first quarter of 2021.
• In-force premium reached $419 million, a 66% increase compared to Q1 2021.
• Premium per customer stood at $279, $50 more compared to Q1 2021.
• Gross loss ratio was 90% vs 121% in Q1 2021.
• Net loss reached $74.8 million, a 53% increase compared to the first quarter of 2021.
• Sales and marketing expense for the quarter was $38.3 million, compared to $29.1 million in Q1 2021.
• Cash, cash equivalents, and investments totaled $1,013 million at March 31, 2022 as compared to $1,072 million as of December 31, 2021, primarily reflecting the $39.5 million of net cash used in operations during Q1.
• Global head count grew 76% versus the prior year to 1,162 with a greater growth rate in product development and underwriting teams.

During the earnings call, Lemonade shared that it has filed about 100 applications for rate changes in the past year.

Lemonade estimates that its existing customers are already spending over $1 billion on car insurance. The majority of Lemonade car sales in Tennessee and in Illinois were generated from existing customers where the company’s “cost of acquisition was 0.”

When asked about the “graduation” strategy, Daniel Schreiber said that around 15% of current homeowners or condo homeowners insured with Lemonade started with renters insurance.