In this video I will go over Lemonade's (NYSE:LMND) Q4 earnings report and talk about what's next for the fintech company. The company has enjoyed steady growth in 2020. It reported in force premium (IFP) of $213 million, an increase of 87% -- a 5% beat. Gross earned premium (GEP) grew 92% year over year to $50 million -- a 6% beat. The average premium per user was up 20% to $213. The addition of pet insurance certainly gave Lemonade a boost, as homeowner and pet now equal 40% of new business in Q4. Also, roughly 50% of IFP attributable to Lemonade's pet product at year-end was generated by cross sales to existing customers.
We will have to wait for Q1 to get more information regarding term life, but it's expected to look promising. Don't let the decrease in revenue fool you. Revenue was severely hurt by Lemonade's 2020 accounting change, keeping it from recognizing ceded premiums. You can expect Lemonade to continue to roll out new products and expand geographically. The company looks healthy.