In this video I will be talking about Lemonade's (LMND 2.57%) recently announced car insurance and what it could mean for the business.
Lemonade is just starting to grow
If you look at the stock's performance this year, you might think the business is failing. In fact, in-force premiums grew by 87% year over year in Q4 and gross earned premiums increased by 92%. Yes, customer growth has slowed down in recent quarters, but that's because Lemonade is trying to get high-yielding customers at the moment. With that said, Lemonade has reached 1 million customers faster than most of its competitors.
Growing product offering
Lemonade rolled out its life insurance product in the first quarter, so we haven't seen any results yet. Life insurance is by far the largest insurance market Lemonade has entered so far (approximately $800 billion globally), but it's also an industry that is ripe for innovation. The company is building up its product offerings fast, which will please a lot of current and potential customers.
Lemonade now offers homeowners, renters, pet, and life insurance, and most recently announced that it is going into the car insurance business. Customers looking to bundle their insurance products with Lemonade will have a smile on their faces.
Lemonade, unlike other insurance companies, does not plan on offering its services in the U.S. alone. Lemonade is now also available in the Netherlands, Germany, and most recently France. Nothing is stopping Lemonade from offering its services to other countries in Europe and around the world.
*Stock prices used were the closing prices of April 19, 2021. The video was published on April 20, 2021.