NEW YORK, July 01, 2025 — Lemonade, Inc. (NYSE: LMND), the digital insurance company powered by AI and social impact, announced that its reinsurance program is being renewed.
Given strong progress in the company’s diversification, underwriting prowess and loss ratio trajectory, the Company has chosen to reduce the ceded proportion of its quota share reinsurance from approximately 55% to approximately 20%, effective July 1. The variable ceding commission rate related to the quota share agreements is expected to be roughly equivalent to that of the expiring agreements. The program covers all Lemonade businesses globally, and the primary quota share carriers will remain unchanged.
“This year, we continued to reduce our reinsurance overhead, which is a reflection of how much stronger and more precise our tech based underwriting and pricing machines have become,” said Shai Wininger, Lemonade’s President and cofounder. “Reinsurance comes at a cost, and thanks to years of steady improvements, we’re now in a position to retain more of the risk ourselves, improve margins, and stay capital-light—all while continuing to work with some of the world’s top reinsurers.”
The Company expects to renew its other ancillary reinsurance programs, including Property Per Risk (PPR) coverage, at terms roughly in line with expiring agreements.