Lemonade, Inc., a digital insurance company, reported a net loss of $165.5 million for the year ended December 31, 2025, compared to a net loss of $202.2 million for the previous year. The company's revenue increased to $737.9 million, a 40% increase from $526.5 million in 2024. This growth was primarily driven by a 45% increase in net earned premium, which reached $536.3 million, up from $370.6 million in the prior year, and a 26% increase in gross written premium, reaching $1,171.3 million. The company attributes the increase in gross written premium to a 23% increase in net added customers year over year, driven by the success of digital advertising campaigns and partnerships, as well as a 7% increase in premiums per customer.
Key operational developments included an increase in the customer base to 2,984,513, up from 2,430,056 in the previous year. In force premium reached $1,236.5 million, compared to $943.7 million in 2024, while premium per customer increased to $414 from $388. The annual dollar retention rate remained relatively stable at 85%. The company's technology continues to play a significant role, with AI Maya and APIs selling 98% of Lemonade's policies. As of December 31, 2025, approximately 55% of claims were automated through AI Jim, resulting in instant or near-instant processing.
The company's reinsurance program also underwent changes, with the cession rate under proportional reinsurance contracts decreasing to 20% from 55% effective July 1, 2025. Ceded written premium decreased by 21% to $407.8 million. The company also renewed its Property Per Risk Excess of Loss Reinsurance Contract and its Excess of Loss Reinsurance Contract at similar terms. The company's investment portfolio, primarily held in cash, money market funds, and fixed income securities, generated net investment income of $37.8 million, an 11% increase from the previous year.
Looking ahead, Lemonade intends to continue expanding its customer base, product offerings, and geographic presence. The company is licensed to sell insurance policies in 50 states and Washington, D.C., and operates in 41 of those states and Washington, D.C. The company also holds a pan-European license and operates in Germany, the Netherlands, France, and the UK. The company's strategy includes growing within its existing customer base by offering higher-value products and expanding into new lines of insurance. The company also plans to continue investing in technology and artificial intelligence to improve its customer experience and underwriting capabilities.
About Lemonade, Inc.
Lemonade, Inc. is a digital insurance company offering renters, homeowners, pet, car, and life insurance through a technology-driven platform. It leverages AI, data, and reinsurance to provide affordable, transparent, and socially responsible coverage. The company emphasizes customer trust, social impact, and operational efficiency, serving markets in the U.S. and Europe with a direct, customer-centric business model.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.