Root, Lemonade not materially impacted by Silicon Valley Bank closure
Both Root Insurance and Lemonade announced separately that they aren’t materially impacted by Silicon Valley Bank closure.
Lemonade announced on Fri that it had less than $7,000 in their SVB account.
“Lemonade, Inc. (“Lemonade”) is aware of media reports indicating liquidity concern at Silicon Valley Bank (“SVB”). Lemonade considers its exposure to any liquidity concern at SVB as immaterial given that it currently has less than $7,000 in cash at SVB, which is significantly below the FDIC-insured limit of $250,000. We believe our cash and assets are well diversified to minimize risk, and Lemonade uses large financial institutions for its commercial banking services that are not currently exposed to liquidity risk.” – Form 8-K.
Similarly, Root shared on Sat that it currently maintains approximately $1.3 million on deposit with Silicon Valley Bank (“SVB”) and that it plans to transfer its funds from SVB at the earliest opportunity. “The Company considers its own banking exposure to any liquidity concern at SVB as immaterial to the Company’s cash position.”