Lemonade Customer and Revenue Stats for 2023

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
• How many customers does Lemonade have?
• Which policies are most popular on Lemonade?
• Lemonade customer acquisition
• Lemonade average premium per customer
• Lemonade revenue
• Lemonade revenue breakdown
• Lemonade’s in-force premium
• Which insurance types bring in the most premiums on Lemonade?
• Lemonade gross earned premium
• Lemonade gross written premium breakdown by location
• Lemonade’s annual expenses
• Lemonade employees
• Where is Lemonade insurance available?

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.

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

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

Source: Lemonade.

Which policies are most popular on 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.

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):

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.

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

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.

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:

Source: Lemonade.

Lemonade revenue

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

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

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:

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:

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:

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.

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

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.

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:

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:

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.

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

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 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:

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.

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

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:

Source: Lemonade.

Conclusion

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.