Lemonade, a digital insurance firm powered by AI, has reported a net loss in Q1 2024 of $47.3 million, marking an improvement of 28% on last year’s figure, while its in-force premium (IFP) grew 22% year on year (YoY) to $794 million and gross loss ratio refined 8 points to 79%.
Meanwhile, Lemonade’s Q1 2024 gross earned premium was $187.9 million, an increase of $33.7 million or 22% compared to Q1 of 2023, reportedly due to the increase of IFP earned during the quarter.
The firm’s total revenue in the opening quarter was $119.1 million, marking another increase of $23.9 million or 25% compared to Q1 2023.
Lemonade explained that this was primarily due to the increase in gross earned premium, ceding commission income and net investment income.
Gross profit in Q1 2024 was $34.7 million, an increase of $18.2 million or 110% compared to Q1 2023, and the adjusted EBITDA loss was $33.9 million, better by $16.9 or 33%, as compared to an Adjusted EBITDA loss of $50.8 million in the same quarter last year.
Looking towards year-end 2024 results, Lemonade said in a letter to its shareholders that it now anticipates in force premium to reach $940 – $944 million (~26% growth YoY), gross earned premium to reach $818 – $822 million (~22% growth YoY), revenue to reach $511 – $515 million (~20% growth YoY), and an adjusted EBITDA loss of $155 – $151 million (~13% improvement YoY).
