A relative newcomer to the private traces house—Lemonade—marked a milestone this week, asserting that it surpassed $1 billion of in drive premiums, a measure of annualized premiums that the insurtech tracks frequently.
However the variety of renters, pet and auto insurance policies underlying what Lemonade reported to be a 150% compound annual premium progress charge over its 8.5 years of existence, nonetheless characterize only a fraction of these written by longstanding trade giants.
A year-end 2024 shareholder report signifies that Lemonade had 2.3 million clients on the finish of December. Whereas the coverage counts are unavailable and are probably greater than buyer counts for an organization that has made the gross sales of a number of completely different insurance policies to every buyer a core part of its go-forward technique, it’s nonetheless distant from the 34.5 and 37.3 million insurance policies in drive that Progressive and Allstate reported as of the tip of February.
Executives of all three firms just lately gave updates on their progress methods for 2025, and whereas the turnaround in private auto has been the dominant focus of analysts assessing final yr’s report earnings for the trade total, solely Progressive’s leaders indicated a full-throttle push for brand spanking new clients in that line for the approaching yr. Allstate executives highlighted a give attention to retention—preserving the auto clients it already has on the books—and the corporate’s profitable monitor report within the owners enterprise. With its renters guide repaired and pet insurance policies persevering with to soar, Lemonade is transferring cautiously on automobile insurance coverage as it really works to construct upon and ideal the mannequin it acquired when it purchased Metromile in 2022.
Some takeaways from latest earnings convention calls of all three are summarized in these associated articles:
Under is a chart evaluating February coverage depend will increase reported by Progressive and Allstate final week.
Featured picture: AI-generated picture utilizing Adobe Firefly
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