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Lemonade Customer and Revenue Stats for 2023

Brian Dean

Written by Brian Dean

Lemonade Customer and Revenue Stats

Lemonade is an insurtech company.

The app-based business, which launched in 2016, offers a range of insurance policies spanning everything from homes to pets. It provides cover to more than 1 million customers.

In 2017, Lemonade’s annual revenue was just $2 million. Today, the company generates $94.4 million per year.

Let’s get right into the data:

Lemonade Key Stats

  • Lemonade has 1,000,802 customers. The insurance company added 357 thousand new customers over the past year.
  • Annual revenue at Lemonade is $94.4 million.
  • Renters insurance contributes a 67% share of Lemonade’s live policies.
  • The average premium per Lemonade customer is $213.
  • Lemonade has 567 employees.

How many customers does Lemonade have?

Lemonade currently has 1,000,802 customers. The company has grown its customer base by 55.62% over the past year, adding 357,684 new customers.

Lemonade has 1,000,802 customers

The number of Lemonade customers has increased 3.24x since 2018.

How many customers does Lemonade have?

We’ve charted Lemonade’s customer growth since Q4 2018:

Quarter, year Customers
Q4 2018 308,835
Q1 2019 371,571
Q2 2019 442,752
Q3 2019 562,251
Q4 2019 643,118
Q1 2020 729,325
Q2 2020 814,160
Q3 2020 941,313
Q4 2020 1,000,802

Source: Lemonade.

Renters insurance policies contribute the vast majority (91.36%) of the Lemonade customer base. 920,710 customers take out renters insurance through the platform.

Renters insurance policies contribute 91.36% of the Lemonade customer base

87,032 Lemonade customers take out cover for their homes or pets.

Here’s a complete breakdown of the various types of cover on Lemonade (as of Q4 2020):

Note: Data includes estimates.
Product Customers (Share)
Renters 920,710 (91.36%)
Home 64,129 (6.36%)
Pet 22,903 (2.27%)

Source: Insurtech Advisors.

Lemonade customer acquisition

Lemonade acquired 357,684 new customers in 2020. That’s an increase of 7.11% over the previous year, when 333,923 new customers were added.

Lemonade customer acquisition

We’ve charted Lemonade’s quarterly new customer growth since Q4 2018:

Quarter, year New customers
Q4 2018 51,468
Q1 2019 62,376
Q2 2019 71,181
Q3 2019 119,509
Q4 2019 80,857
Q1 2020 86,207
Q2 2020 84,835
Q3 2020 127,153
Q4 2020 59,489

Source: Insurtech Advisors.

Lemonade average premium per customer

Lemonade customers pay an average annual premium of $213. That’s an increase of 5.97% over the previous quarter.

Lemonade average premium per customer

Year over year, the average premium per customer has increased 20.34%.

Here’s a table showing Lemonade’s average annualized premium per customer since Q1 2018:

Quarter, year Premium per customer
Q1 2018 $131
Q2 2018 $139
Q3 2018 $138
Q4 2018 $145
Q1 2019 $154
Q2 2019 $163
Q3 2019 $169
Q4 2019 $177
Q1 2020 $183
Q2 2020 $190
Q3 2020 $201
Q4 2020 $213

Source: Lemonade.

Lemonade revenue

Lemonade generated $94.4 million in revenue in 2020. That’s an increase of 40.27% over the previous year.

Lemonade revenue

Here’s a table with Lemonade’s revenue since 2017:

Year Revenue
2017 $2 million
2018 $22.5 million
2019 $67.3 million
2020 $94.4 million

Source: Lemonade.

Lemonade revenue breakdown

Lemonade breaks down its revenue into 4 principal channels: “net earned premium”, “ceding commission income”, “net investment income” and “commission and other income.”

Net earned premium refers to the income generated from policy payments, minus the amount ceded to third parties under reinsurance contracts.

Lemonade made $77.3 million in net earned premium in 2020. That’s an increase of 21.16% since 2019.

Here’s a table with Lemonade’s net earned premium since 2018:

Year Net earned premium
2018 $21.2 million
2019 $63.8 million
2020 $77.3 million

When Lemonade cedes a portion of insurance premiums to third parties under reinsurance agreements, it earns commission from those third parties.

Lemonade generated $15.3 million in ceding commission income in 2020.

Lemonade’s net investment income consists of interest earned from securities and other investments.

Lemonade earned $1.5 million in net investment income in 2020. That’s less than half of the $3.4 million reported for 2019.

Here’s a table showing Lemonade’s net investment income since 2018:

Year Net investment income
2018 $1.3 million
2019 $3.4 million
2020 $1.5 million

Finally, “commission and other income” consists of commissions earned for policies placed with third-party insurers. This is grouped with “installment premiums” paid by policyholders in addition to the basic fees.

Lemonade made $0.3 million in commission and other income in 2020. That’s a 3x increase over the previous year.

Here’s a table with Lemonade’s commission and other income since 2019:

Year Commission and other income
2019 $0.1 million
2020 $0.3 million

Source: Lemonade.

Lemonade’s in-force premium

Lemonade’s total “in-force premium” consists of premiums actually underwritten by Lemonade and premiums placed with third parties through Lemonade.

(Lemonade charges a recurring commission on policies placed with third-party companies; they represent less than 1% of in-force premiums.)

Lemonade has annualized in-force premiums of $213 million. That’s an increase of 86.84% year over year.

Lemonade’s in-force premium

We’ve charted Lemonade’s in-force premium growth since Q4 2018:

Quarter, year In-force premium
Q4 2018 $45 million
Q1 2019 $57 million
Q2 2019 $72 million
Q3 2019 $95 million
Q4 2019 $114 million
Q1 2020 $133 million
Q2 2020 $155 million
Q3 2020 $189 million
Q4 2020 $213 million

Source: Lemonade.

Which insurance types bring in the most premiums on Lemonade?

Renters insurance accounted for $142.7 million worth of Lemonade’s annualized in-force premiums in Q4 2020. That’s a 67% share of total in-force premiums.

Renters insurance accounted for 67% of total in-force premiums

Home and pet insurance products accounted for the remaining 33% of in-force premiums, totaling $70.3 million.

Here’s a complete product breakdown of Lemonade’s in-force premiums as of Q4 2020:

Note: Data includes estimates.
Product In Force Premiums (Share)
Renters $142.7 million (67%)
Home $59.6 million (27.98%)
Pet $10.7 million (5.02%)

Source: Insurtech Advisors.

Lemonade gross earned premium

Gross earned premium is a simplified metric that records all revenue earned from insurance premiums underwritten by Lemonade, without taking into account any premiums ceded through reinsurance arrangements.

In 2020, Lemonade reported $158.7 million in gross earned premiums. That’s 2.1x growth over 2019.

Lemonade has increased its gross earned premiums 6.28x since 2018.

Here’s a table with Lemonade’s gross earned premiums since 2018:

Year Gross earned premiums
2018 $25.3 million
2019 $75.5 million
2020 $158.7 million

Source: Lemonade.

Lemonade gross written premium breakdown by location

Lemonade refers to the total value of all underwritten policies (regardless of payment actually being received) as its gross written premium.

Gross written premiums totaled $214.4 million in 2020.

Lemonade gross written premium breakdown by location

Just 3 states (California, Texas and New York) account for 58% of all gross written premiums. In 2020, that totaled $124.3 million.

Jurisdiction Gross written premiums (Share)
California $49.8 million (23.23%)
Texas $47.8 million (22.29%)
New York $26.7 million (12.45%)
Georgia $11.6 million (5.41%)
Illinois $9.8 million (4.57%)
New Jersey $8.6 million (4.01%)
Michigan $6 million (2.8%)
Ohio $5.2 million (2.42%)
Pennsylvania $5.1 million (2.38%)
Arizona $4.6 million (2.14%)
All other $39.2 million (18.28%)

Source: Lemonade.

Lemonade’s annual expenses

Lemonade’s expenses totaled $215.2 million in 2020. That’s a 22.83% increase over the previous year ($175.2 million).

Lemonade’s annual expenses

Lemonade spent $80.4 million on expenses pertaining to sales and marketing, representing a 37.36% share of all expenditure.

Costs incurred for losses contributed a further expense of $54.7 million, accounting for a 25.42% share of 2020 expenses.

Here’s a table with a complete breakdown of Lemonade’s 2020 expenses:

Category Expense (Share)
Sales and marketing $80.4 million (37.36%)
Loss and loss adjustment expense, net $54.7 million (25.42%)
General and administrative $46.3 million (21.51%)
Technology development $19.4 million (9.01%)
Other insurance expense $14.4 million (5.73%)

Source: Lemonade.

Where is Lemonade insurance available?

Lemonade has 5 types of insurance policies available in the US: renters, homeowners, condo, pet, and term life insurance.

Renters insurance is available in 27 states (and the District of Columbia).

Homeowners insurance is offered in 23 US states (again, plus D.C.).

Term life insurance is the most widely available Lemonade policy. It is available in every state except for New York.

Where is Lemonade insurance available?

Here’s a table with state-level availability of all Lemonade’s insurance products:

Type of insurance Number of states (+ D.C. in all cases)
Term life insurance 49
Pet insurance 34
Renters insurance 27
Condo insurance 25
Homeowners insurance 23

As well as the US, Lemonade operates in 3 European countries (France, Germany, and The Netherlands).

There are plans to bring Lemonade insurance products to 28 more countries in Europe.

Source: Lemonade.

Lemonade employees

Lemonade has 567 employees. 348 of them are located in the United States, while 219 employees work abroad (primarily in Israel).

Here’s a table showing Lemonade’s employee numbers, sorted by location:

Location Employees
United States 348
International 219
Total 567

Source: Lemonade.


That’s it for my list of Lemonade stats in 2023.

This insurtech company is steadily growing, with the number of customers and issued policies growing year over year in both the US and Europe.

Now I’m curious to hear from you:

Do you think Lemonade can disrupt legacy insurance companies and achieve profitability? Or do you think there’s a risk the business model is unsustainable?

I’d also like to read any comments or questions you might have about the data I’ve included.

Whatever it may be, don’t hesitate to leave a comment below, and I’ll respond shortly.


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