Lemonade (LMND) investor relations material

Market environment and growth strategy

• Achieved 10 consecutive quarters of accelerating growth despite industry slowdown, driven by a tech-first approach yielding cost and price advantages that fuel expansion.

• Revenue nearly tripled and customer base grew by 1.5 million in the past 3.5 years, with gross profit increasing over 10X while headcount decreased.

• Technology-driven efficiency enables passing cost savings to customers, enhancing competitiveness in both favorable and challenging cycles.

• Structural tech advantage allows for unique pricing and risk assessment, especially in auto insurance.

• Global expansion underway, with rapid growth in Europe and significant headroom in the U.S. and abroad.

Product innovation and differentiation

• Uses telematics and real-time driving data for auto insurance, enabling granular risk assessment and personalized pricing, especially benefiting young and low-mileage drivers.

• Launched a Tesla autonomous insurance product offering up to 50% premium reduction for FSD miles, leveraging data-driven insights and per-mile pricing.

• Maintains a first-mover advantage in autonomous and telematics-based insurance, with competitors facing significant technological barriers to entry.

• Car insurance new sales are growing over 100% year-on-year, with bundling and cross-sell opportunities increasing customer lifetime value.

Business mix and cross-selling

• Pet insurance has overtaken renters as the fastest-growing product, with 50–60% annual growth and over $0.5 billion in premiums.

• Renters insurance remains a key feeder for cross-selling, with over 2 million renters serving as a base for upselling other products.

• Cross-selling is robust: about one-third of policies are sold to existing customers, and in car insurance, about half of new policies are to current clients.

• Bundling is expected to increase as product availability expands across more states, further improving LTV to CAC ratios.