Reliance Global Group (NASDAQ:RELI) published a press release today announcing that its Fortman Insurance Services subsidiary had been approved to offer Lemonade's insurance products. Lemonade also recently announced that it had appointed vice president of operations Adina Eckstein as chief operating officer on July 21, replacing Shai Wininger in the role.
There might not be a singular factor behind Lemonade's gains today, but the addition of the company's insurance products to the Fortman Insurance Services catalog appears to have spurred positive pricing momentum.
Lemonade stock has seen some volatile swings since going public last July, and it's not unusual for it to make substantial moves in intraday trading even in the absence of big news. The company's share price is up roughly 25% from its price at market close on the day of its public debut, but it's also down roughly 54% from its high.
Lemonade is scheduled to release its second-quarter earnings results after the market closes on Aug. 4. The company is guiding for an in-force premium between $283 million and $288 million at the end of the period and revenue between $26 million and $27 million. Management is targeting an adjusted EBITDA loss between $40 million and $43 million.
Offering renters and homeowners insurance through convenient digital channels could help the company post rapid sales growth, and expanding into categories including term life, pet, and automotive service offers additional avenues to expansion. Thus far, the company has been making impressive inroads, and there's evidence that it's being led by a capable management team -- 98% of respondents on employer-review platform Glassdoor have given CEO Daniel Schreiber a favorable rating. And the company has opportunities to continue disrupting a space that still stands to see significant efficiency and customer service improvements.
Lemonade has a market capitalization of roughly $5.4 billion and is valued at approximately 45 times this year's expected sales.