Lemonade Files Planned IPO Worth Up to $100M

Lemonade disclosed plans for an initial public offering worth as much as $100 million.

The New York-based InsurTech has applied to use “LMND” as its ticker symbol for the New York Stock Exchange, according to its regulatory filing.

Lemonade’s investors include Japan’s SoftBank Group, Allianz, Google’s venture capital arm, General Catalyst, OurCrowd and Thrive Capital.

Observers had speculated that Lemonade would pursue an IPO in late 2019. Lemonade co-founder and CEO Daniel Schreiber declined to comment when asked by Carrier Management about the matter in early 2020. At the same time, he said that the company would continue international growth plans.

Lemonade, which launched in 2016, has secured nearly half-a-billion dollars in venture capital—one of the largest raises among InsurTechs so far—including a $300 million round secured a little over a year ago. The seller of digital home and rental insurance in the U.S. has begun a European expansion and now offers contents and liability insurance in Germany and the Netherlands.

No date has yet been scheduled for the offering, and Lemonade notes in its filing that the number of shares to be offered and the price range has not yet been determined. When will Lemonade go public? That will depend on market conditions, the company said.

Lemonade’s S-1 regulatory filing details the company’s financial performance to date. Here are some highlights:

• While Lemonade remains unprofitable, its gross written premium grew from $9 million in 2017 to $47 million a year later and to $116 million in 2019. The company said its gross written premium reached $38 million in the first three months of 2020.
• Lemonade’s net losses were just under $53 million in 2018 and $108.5 million in 2019, as the company pursued both national and international expansion. It booked $36.5 million in losses during the 2020 first quarter compared to a $21.6 million loss in the 2019 first quarter, the company said.
• Lemonade said its net losses per dollar of gross written premium dropped from more than $3 in 2017 to under $1 in 2019 and for the first three months of 2020. The company booked $2 million of revenue in 2017, $23 million in 2018 and $67 million in 2019.
• Lemonade explained its gross loss ratio declined from 161 in 2017 to 113 in 2018, 79 in 2019 and 72 in the first three months of 2020.
• Lemonade’s employees grew from 117 as of December 2018 to 279 at the end of 2019 and 329 as of March 31, 2020.
• Lemonade considers its carrier competitors to include Allstate, Farmers, Liberty Mutual, State Farm and Travelers.
• From December 2017 through March 2020 the company expanded from offering insurance in eight states to 27 states including Washington, D.C.
• The company noted it will have proportional reinsurance protecting 75 percent of its business starting on July 1, 2020.

Read Lemonade’s full S-1 filing here.

Source: Lemonade S-1 SEC Filing