Lemonade’s Impending IPO and Its Long-Term Prospects
June 18, 2020 by N/A
On Monday, June 8, startup insurer Lemonade (New York) filed with the SEC to raise up to $100 million in an initial public offering. Few InsurTechs have been so visible in the press and the subject of so many of the discussions among industry observers. As the next great step in the story of Lemonade, the IPO can be seen as the firm’s greatest triumph to date, but questions remain about its long-term prospects.
Launched in 2016, Lemonade’s premium has grown from $9 million in 2017 to $116 million in 2019, while its gross loss ratio has fallen from 161 percent to 79 percent, according to Renaissance Capital. The company yielded $83 million in revenue for the 12 months ended March 31, 2020.