Metromile’s Q1 2022 highlights
Metromile shared its Q1 2022 results and here are some highlights:
- Policies in force stood at 101,294, a 6% increase compared to 95,958 at the end of the first quarter of 2021.
- Direct earned premium in the first quarter of 2022 was $28.1 million, an 8.9% increase from the prior-year period.
- The average annual premium per policy was $1,142, compared to $1,100 on March 31, 2021, due to more miles being driven on a YoY basis.
- Premium run-rate was $116 million, a 9.6% increase compared to March 31, 2021.
- Loss ratio was 85.1%, compared to 65.1% in the prior-year period, resulting from an increase in claims severity.
- Total enterprise software revenue was $1.2 million, compared to $1 million in the prior-year period.
- Total operating expense, which excludes loss, loss adjustment expenses, marketing and sales, and variable costs associated with servicing policies, was $23.4 million, which includes $0.3 million of transaction-related expense, compared to $12.5 million in the prior-year period, driven primarily by increased staffing to support growth initiatives and higher stock-based compensation expense.
- Total marketing, sales, underwriting, and device costs were $8.2 million, compared to $8.5 million in the prior-year period.
- Cash, cash equivalents, and highly liquid money market investments totaled $93.3 million as of March 31, 2022, including $2.4 million within the Metromile Enterprise entity.
- Net loss for the quarter was ~$34 million.
Metromile ended the quarter with a net gain of 2,878 policies when compared to Q4 2021. Assuming there wasn’t a significant number of policy cancellations during the quarter, we’re looking at around $2,800 to acquire one policy.
In the SEC filing, Metromile states that as of March 31, 2022, it had committed to a plan to sell its enterprise business solutions segment. This is an interesting development considering this tweet from Lemonade co-founder Shai Wininger.
+ @Metromile has built an enterprise software business that provides traditional insurers with a modern claims experience. Although still new and small (~$5m ARR), this is something we hoped to get to one day, so we’re excited to get started early!
— shai.eth (@shai_wininger) November 8, 2021