What happened
Summer may be over, but investors were sure enjoying a long swig of Lemonade (LMND 8.23%) as the trading week kicked off. The next-generation insurer's share price enjoyed a nearly 5% gain on the day, eclipsing even the tasty performance of the surging S&P 500 index, thanks to news of expansion overseas.
So what
This morning, Lemonade announced that its offerings are now available in the U.K. British consumers wishing to buy and monitor Lemonade policies can now do so from any device. Like American clients, those incoming policy holders will be able to file claims and receive payouts via the same means.
With the U.K. launch, part of a long-term strategic partnership with large British peer Aviva, the company is continuing its rollout abroad. Previously, it had opened its offerings to insurance seekers in Germany, France, and the Netherlands.
In the U.K., takeup should be fairly quick and robust. Lemonade didn't hesitate to mention that its policies start at 4 pounds ($4.46) per month, a very compelling and competitive price point that should win customers.
Now what
As with the U.S. market, Lemonade intends to wedge into Britain by focusing on its renters insurance policies. In the press release heralding the entry into the new market, its founder and co-CEO Daniel Schreiber said, "We believe the millions of local renters will appreciate what Lemonade has to offer. After all, who doesn't want instant, transparent, personalized, and mission-driven insurance?"
Economic anxiety is notably higher in the U.K. than here at the moment, so this might limit locals' initial enthusiasm for Lemonade policies. Still, the company's continued spread abroad is a welcome development that should improve its business.
