Lemonade Insurance Statistics 2026: Premium and Loss Ratio

Lemonade closed the second quarter of 2026 with in-force premium of $1.43 billion, an increase of 32%, across 3,308,666 customers, up 23% year over year. Those Lemonade insurance statistics come from the Q2 2026 shareholder letter the company filed with the SEC in July.

Revenue for the quarter reached $294.4 million, an increase of 79% over the same period a year earlier. Underwriting improved alongside it, with the gross loss ratio at 60% against 67% twelve months prior and the net loss ratio at 61%. Figures below cover premium, customers, loss ratios by product line, state-level premium mix, reinsurance terms, and the guided path to adjusted EBITDA breakeven. Each one is date-stamped to the fiscal quarter it belongs to.

Key Takeaways

• In-force premium increased by 32% to $1.43 billion in the second quarter of 2026.
• Customer count increased by 23% to 3,308,666, and annual dollar retention held at 85%.
• The gross loss ratio was 60%, but the attritional component climbed to 59%, and a prior period development credit worth 7 percentage points absorbed the gap.
• California supplied 20.5% of gross written premium in the quarter, with Texas at 13.7% and New York at 8.9%.
• Third quarter and full-year guidance imply fourth-quarter adjusted EBITDA of approximately $8 million, a non-GAAP measure.
• The loss adjustment expense ratio, which tracks claims handling cost against premium, declined to a record low 5%.

Editor’s Choice

• Premium per customer was $433 at the end of the second quarter, up 8% year over year.
• Pet carried the highest gross loss ratio of the four lines; Lemonade breaks out at 74%.
• Second quarter revenue of $294.4 million rose 79%, outpacing premium growth.
• The reinsurance program renewed on July 1 with the effective quota share cession rate cut from roughly 20% to roughly 18%.
• A financing agreement with Hannover Re provides up to $250 million of outstanding capital at a stated cost of capital near 9.8%.
• Cash, cash equivalents, and investments totaled approximately $1.2 billion at June 30, 2026, against roughly $330 million of required regulatory surplus.

Lemonade Insurance Statistics: In Force Premium

In-force premium, the aggregate annualized premium across every active policy, is the metric Lemonade leads with. It runs ahead of reported revenue because policies earn their premium across the following twelve months rather than at signing.

• In-force premium grew 32.4% to $1.43 billion, which the company called its eleventh consecutive quarter of acceleration.
• Gross earned premium reached $332.4 million, an increase of $80.1 million or 32%.
• Gross written premium increased $95.5 million, or 34%, to $380.0 million for the three months ended June 30, 2026.
• In-force placed premium accounts for roughly 4% of in-force premium.

Placed premium matters when weighing Lemonade against a pure-play carrier, or against the broader insurtech segment where reported premium volumes vary by definition.

Metric	Q2 2026	Q2 2025	Year-over-year change
Customers	3,308,666	2,693,107	Up 23%
In-force premium	$1,434.3 million	$1,083.4 million	Up 32%
Premium per customer	$433	$402	Up 8%
Annual dollar retention	85%	84%	Up 1 point
Total revenue	$294.4 million	$164.1 million	Up 79%
Gross earned premium	$332.4 million	$252.3 million	Up 32%
Gross profit	$113.2 million	$64.3 million	Up 76%
Gross loss ratio	60%	67%	Down 7 points
Adjusted EBITDA	Loss of $18.7 million	Loss of $40.9 million	Improved 54%

Source: Lemonade Q2 2026 shareholder letter, July 2026

That quarterly snapshot sets the scale. The chart below traces how in-force premium built across eight straight quarters, the trajectory behind the 32% headline growth rate.

Measured from the end of September 2024 to the end of June 2026, the book expanded roughly 61%. What stands out is the absence of a flat quarter across a stretch that included a California wildfire event and two reinsurance restructurings.

By the numbers: Premium grew to $1.43 billion by the end of the second quarter of 2026. Revenue grew faster still, because a lower reinsurance cession rate left more of each premium dollar on Lemonade’s own income statement rather than a reinsurer’s.

Lemonade Customer Count Statistics

Customer growth, not price increases, drove most of the premium expansion this quarter. A household holding several Lemonade policies counts once, so the headline figure understates policy volume by design.

• Customer count increased by 23% to 3,308,666 as compared to the second quarter a year earlier.
• Annual dollar retention was 85% at quarter end, a 1 percentage point increase year over year and flat against the first quarter of 2026.
• The historical table reports 2,313,113 customers at September 30, 2024 and 3,308,666 at June 30, 2026.
• Retention across the same span ran 87%, then 86%, then 84% for two quarters, before settling at 85%.

Retention bottomed in the first half of last year and has since held flat for four quarters. Flat is not improving. For a company whose growth case rests on selling more products into the same household, that plateau deserves close watching.

Recent Developments

• July 2026: The second-quarter shareholder letter put net loss at ($43.4 million), or ($0.56) per share.
• July 2026: The renewed twelve-month program reduces the effective quota share cession rate from approximately 20% to approximately 18%.
• June 2026: Lemonade and Hannover Re (Ireland) DAC entered a New Business Financing Agreement under which Hannover Re will provide up to $250 million of outstanding capital related to financing the company’s sales and marketing growth efforts.
• Q2 2026: The quarterly report put outstanding borrowings under the financing agreement at $206.4 million as of June 30, 2026.
• Q2 2026: Lemonade recorded prior-year favorable development on net loss and loss adjustment expense reserves of $16.4 million for the six months ended June 30, 2026.
• Q3 2026 guidance: Guidance places third quarter in-force premium at $1,537–$1,540 and third quarter revenue at $323–$326, both stated in millions.

Lemonade Premium Per Customer Statistics

Premium per customer rose again this quarter, though the consolidated figure hides a wide spread between product lines. The mix of policies a customer holds matters far more than any single rate change.

• Premium per customer, defined as in-force premium divided by customers, was $433 at the end of the second quarter, up 8% year over year.
• Car customers paid an average annualized premium of $2,089, the highest of any Lemonade line.
• Premium per customer for homeowners multi-peril has declined in each of the four most recent reported quarters.
• Lemonade attributes the 8% increase to more policies per customer, higher average policy value, and a mix shift toward higher value products.
• Dividing homeowners multi-peril in-force premium by its average premium implies roughly 2.3 million customers, the largest count of any line.

That average runs roughly 8.7 times the homeowners multi-peril figure.

Why is Lemonade insurance so cheap?

Product mix explains the low average, not a discount. Homeowners multi-peril, which covers home, condo, and renters policies, carries the lowest premium per customer of the US lines, and Europe runs lower still. The National Association of Insurance Commissioners put the 2021 US average renters premium at $170 against $1,411 for homeowners.

Lemonade In Force Premium by Product Line

Pet has closed almost all of the gap on Lemonade’s founding homeowners line. That single shift reframes how the whole data set should be read.

• Homeowners multi-peril remains the largest line by in-force premium, with Pet second, Car third, and Europe fourth.
• Pet alone now accounts for roughly 38% of the total book.
• Pet also carries the highest gross loss ratio of the four lines at 74%.

A rounding error now separates the top two lines, which reframes how Lemonade reads against the wider U.S. pet insurance market.

A renters-first insurtech now draws more than a third of its premium from pet policies. That makes it a functionally different company than the one that listed in 2020. A mix shift of that size drives both the premium per customer trend and the loss ratio trend.

Lemonade Loss Ratio Statistics

Both headline loss ratios moved in the right direction this quarter. The composition underneath them carries the real signal.

• The gross loss ratio was 60% against 67% a year earlier, and the net loss ratio was 61% against 69%.
• On a trailing twelve-month basis, the gross loss ratio fell to 59%, from 70% at the same point a year earlier.
• Excluding catastrophe losses, the gross loss ratio was 58% in both the first and second quarters of 2026.

Quarter	Gross loss ratio (%)	Gross loss ratio ex-CAT (%)	TTM gross loss ratio (%)	Net loss ratio (%)
Q2 2025	67	60	70	69
Q3 2025	62	56	67	64
Q4 2025	52	51	64	53
Q1 2026	62	58	61	63
Q2 2026	60	58	59	61

Source: Lemonade insurance supplement, Q2 2026 shareholder letter, July 2026

The chart above shows where the headline ratio landed each quarter. The table below breaks that number into the components driving it: attritional losses, catastrophe losses, claims-handling cost, and prior-period development.

Gross loss ratio component	Q2 2025 (%)	Q3 2025 (%)	Q4 2025 (%)	Q1 2026 (%)	Q2 2026 (%)
Attritional	58	56	54	54	59
Catastrophe, excluding PPD	5	4	1	5	3
Loss adjustment expense, excluding PPD	7	7	6	6	5
Prior period development	-3	-5	-9	-3	-7
Gross loss ratio	67	62	52	62	60

Source: Lemonade insurance supplement, Q2 2026 shareholder letter, July 2026

• The attritional gross loss ratio rose to 59% from 58% a year earlier.
• Catastrophe losses contributed 3% against 5%, and the loss adjustment expense component fell to 5% from 7%.
• Prior period development delivered a credit worth 7 percentage points, against 3 percentage points a year earlier.
• That reserve release is real money: prior year favorable development reached $16.4 million for the six months ended June 30, 2026.

Read together, the headline improvement looks thinner than it appears. Day-to-day claims severity went the wrong way. What carried the quarter was a benign catastrophe season, a cheaper claims operation, and a large reserve release, and only the middle one is durable.

Lemonade Loss Ratio by Product Line

Spread across the four lines runs wide enough that mix shift alone moves the consolidated ratio. Lemonade’s fastest-growing line is also its worst performer on losses.

• Homeowners multi-peril posted the strongest gross loss ratio at 44%, followed by Car at 61%, Europe at 71%, and Pet at 74%.
• Pet deteriorated over the period, moving to 74% from 69% one quarter earlier.
• Car ran a gross loss ratio of 82% four quarters earlier and 61% in the latest quarter shown.

Car improved most sharply over the period shown, worth holding alongside broader car insurance severity data.

The awkward arithmetic is that Pet is closing on homeowners multi-peril in size while running some 30 points worse on losses. Mix shift is therefore a headwind to the consolidated ratio even when every individual line holds steady.

Lemonade Gross Written Premium by State

Three states supply the bulk of Lemonade’s premium, and each sits in catastrophe-exposed territory. That concentration is the clearest explanation for how the reinsurance program changed in July.

• California accounted for 20.5% of gross written premium in the quarter, ahead of Texas at 13.7% and New York at 8.9%.
• Those three states alone supplied 43.1% of quarterly premium.
• US business produced 95.9% of gross written premium in the quarter, leaving Europe and the UK at 4.1%.
• Total gross written premium reached $380.0 million, up 34% year over year.

Pricing does not explain the concentration. NAIC data put the 2021 average renters premium at 177 in California and 164 in New York, both close to the 170 national average, while Texas sat at 204. California and Texas lead Lemonade’s book on population and policy count rather than on price, a pattern that also shapes the U.S. auto insurance market.

Why it matters: A fifth of Lemonade’s premium sits in California and another eighth in Texas. A broad quota share treats that wildfire, hail and convective storm exposure as generic risk. Buying targeted catastrophe cover instead, as Lemonade did in July, follows directly from the geography.

Lemonade Revenue and Gross Profit Statistics

Revenue outgrew premium this quarter because Lemonade now hands less of that premium to reinsurers. The effect is mechanical rather than operational, and it flatters the growth rate.

• Second quarter revenue of $294.4 million increased by $130.3 million or 79%, and gross profit of $113.2 million rose 76%.
• Adjusted gross profit, a non-GAAP measure, was $114.4 million, up 74%.
• Trailing twelve-month gross profit increased 98% to $404 million.
• Total operating expense excluding net loss and loss adjustment expense was $182.2 million, up 41%, driven by growth spend of $64.4 million.
• Sales and marketing expense specifically increased $18.1 million, or 30%, to $77.7 million.

Operating expense also absorbed $6.5 million of stock-based compensation tied to multi-year equity grants made to the executive leadership team.

Marketing intensity of that order marks the venture-funded cohort tracked among the highest-valued insurtech startups, where acquisition spend precedes the premium it produces.

Lemonade Path to Adjusted EBITDA Breakeven

Losses on adjusted EBITDA narrowed by more than half year over year. Adjusted EBITDA remains a non-GAAP measure rather than a GAAP profit figure.

• Adjusted EBITDA loss was ($18.7 million) in the second quarter of 2026, against a loss of ($40.9 million) a year earlier.
• Lemonade continues to expect positive adjusted EBITDA in the fourth quarter of 2026, with guidance implying approximately $8 million.
• Full-year guidance places in-force premium at $1,632–$1,639 and revenue at $1,214–$1,220, both stated in millions.

Guidance metric	Q3 2026	Full year 2026
In-force premium	$1,537 million to $1,540 million	$1,632 million to $1,639 million
Gross earned premium	$356 million to $359 million	$1,374 million to $1,378 million
Revenue	$323 million to $326 million	$1,214 million to $1,220 million
Adjusted EBITDA loss	$23 million to $20 million	$51 million to $47 million

Source: Lemonade Q2 2026 shareholder letter guidance table, July 2026

Guidance remains a company forecast rather than a result, and Lemonade provides no forward reconciliation of adjusted EBITDA to net loss.

Has Lemonade ever made a profit?

Not on a GAAP basis in these filings. Net loss in the second quarter of 2026 was ($43.4 million), or ($0.56) per share. The six-month loss narrowed to ($79.2 million). Breakeven guidance applies to adjusted EBITDA, a less demanding measure than net income.

Lemonade Claims Automation Statistics

Lemonade argues the loss adjustment expense ratio is one of the few metrics that let investors compare insurers’ operating efficiency. Its own ratio has fallen faster than its premium has grown.

• The loss adjustment expense ratio declined to a record low of 5%, having improved from 13% at an earlier reference point.
• Car, the most complex line to adjudicate, ran a loss adjustment expense ratio of 7%.
• Lemonade characterises industry-average loss adjustment expense ratios as approximately 9%.
• As of December 31, 2025, AI Jim took first notice of loss without human intervention 96% of the time, and roughly 55% of claims were automated end to end.

Lemonade sources that industry figure to itself rather than to an independently published benchmark, so it warrants the caveat. Automation drives the expense ratio, and the filings offer few clearer examples of AI claims processing converting into a measurable unit-cost advantage.

Within the loss ratio decomposition, the loss adjustment expense component fell to 5% from 7% a year earlier. Two percentage points of gross earned premium buys a material saving at this scale. It separates a genuine digital transformation in insurance from a rebranded distribution play.

Lemonade Reinsurance and Catastrophe Cover Statistics

The July renewal moved Lemonade away from broad quota share toward targeted catastrophe cover. Retaining more premium raises reported revenue without any change in underwriting quality.

• The expiring program ceded approximately 20% of premium to Hannover Ruck SE and MAPFRE Re.
• It carried a per-risk cap of $750,000 and a limit of $10,000,000 per occurrence for non-hurricane catastrophe losses.
• The renewed program cedes approximately 18% and carries a $40,000,000 limit per loss occurrence with $100,000,000 in aggregate.
• Lemonade also introduced protection against named storms, an exposure excluded under the prior structure.

Reinsurance term	July 2025 to June 2026	July 2026 to June 2027
Effective quota share cession rate	Approximately 20%	Approximately 18%
Catastrophe limit per loss occurrence	$10,000,000, non-hurricane only	$40,000,000
Aggregate catastrophe limit	Not disclosed	$100,000,000
Named storm exposure	Excluded	Covered

Source: Lemonade Form 10-Q for the quarter ended June 30, 2026

The catastrophe cover is the more interesting half of the trade, buying down exactly the volatility a California- and Texas-heavy book generates.

Lemonade Growth Financing Statistics

Lemonade funds customer acquisition with external capital repaid out of the premium those customers generate. The price of that capital fell sharply in June.

• Outstanding borrowings under the financing agreement reached $206.4 million at June 30, 2026, up from $158.1 million six months earlier.
• Interest expense on that facility was $7.0 million for the quarter.
• The existing financing agreement repays each funded amount plus a 16% rate of return.
• Hannover Re’s new agreement provides up to $250 million of outstanding capital, finances up to 80% of growth spend subject to a $20 million limit per reference cohort, and prices its return at the greater of 0% or the three-year US Treasury bill rate plus 5.8%.
• Lemonade puts the resulting cost of capital at approximately 9.8%, a reduction of more than 600 basis points.

Swapping a fixed return for a floating benchmark is the most underrated line in the quarter. Off-balance-sheet growth spend only compounds when capital costs less than the cohort returns, and Lemonade just cut roughly six points from that hurdle.

Lemonade Balance Sheet and Liquidity Statistics

Liquidity has grown more slowly than premium, the expected pattern for a carrier funding growth with premium float and external financing rather than equity issuance.

• Cash, cash equivalents and investments totaled approximately $1.2 billion at June 30, 2026.
• Lemonade was required to hold approximately $330 million of regulatory surplus at its insurance subsidiaries.
• Adjusted free cash flow, a non-GAAP measure, was $18.8 million in the quarter against $25.0 million a year earlier.
• Total cash and investments moved from $1,032 to $1,158 across the five quarters Lemonade charts, both figures in millions.

Balance sheet item	June 30, 2026	December 31, 2025
Total assets	$2,011.9 million	$1,925.7 million
Total investments	$777.7 million	$722.9 million
Cash, equivalents and restricted cash	$380.3 million	$396.8 million
Premium receivable, net	$490.4 million	$402.3 million
Unpaid loss and loss adjustment expense	$307.5 million	$303.1 million
Unearned premium	$661.7 million	$577.0 million
Borrowings under financing agreement	$206.4 million	$158.1 million

Source: Lemonade Form 10-Q for the quarter ended June 30, 2026

Lemonade Workforce and Geographic Footprint Statistics

Lemonade runs a small workforce relative to its premium base, split across the United States, Israel, and the Netherlands. Its licensing footprint covers nearly the whole US population.

• Lemonade employed 1,282 people as of December 31, 2025, of whom 810 were based in the United States.
• The company is licensed to sell renters, homeowners, pet, and car policies in 50 states and Washington, D.C.
• It operated in 41 of those states plus D.C., collectively representing approximately 95% of the US population.
• Lemonade is available in the United States, the UK, Germany, the Netherlands, and France.

Few full-stack operators in the insurtech industry hold their own carrier licences across two continents, and that footprint still sets Lemonade apart.

Who is the CEO of Lemonade Insurance?

Daniel Schreiber holds the Chief Executive Officer role, Shai Wininger holds the President role, and both co-founded the company. Lemonade’s annual report names the pair as the two individuals whose continued service it identifies as material to the business.

Is Lemonade owned by Israel?

No. Lemonade, Inc. is a Delaware corporation listed on the New York Stock Exchange, and public investors hold its shares. Its workforce is split across countries: of 1,282 employees as of December 31, 2025, 810 sat in the United States and the remainder outside it, primarily in Israel and the Netherlands.

The two co-founders, Daniel Schreiber and Shai Wininger, hold the Chief Executive Officer and President roles. Research and development staffing in Israel reflects where the founding team built the technology, and carries no ownership implication.

How reliable is Lemonade at paying claims?

The filings support a narrow, factual answer rather than a verdict. As of December 31, 2025, roughly 55% of Lemonade claims were automated, and AI Jim handled 96% of first notices of loss without human intervention.

On the reserving side, prior-year favorable development reached $16.4 million in the first half of 2026, meaning earlier claims ultimately cost less than the company had set aside. Neither figure speaks to individual claim outcomes. State insurance departments remain the authoritative source for complaint data.

Conclusion

Lemonade enters the second half of 2026 with a $1.43 billion premium book and 3,308,666 customers. Its gross loss ratio of 60% improved from 67% a year earlier. The detail that deserves attention is what sits underneath. The attritional component of that ratio rose, while catastrophe losses, claims-handling costs, and a reserve release improved.

Company guidance points to positive adjusted EBITDA of approximately $8 million in the fourth quarter of 2026, on full-year revenue of $1,214–$1,220, stated in millions. Whether that milestone arrives is one question. Whether it holds as the mix keeps shifting toward higher-loss-ratio Pet business is the harder one, and the next two filings will answer it.