Lemonade reported a fourth-quarter loss per share of $1.14 on revenue of $41 million after the bell. The company reported a loss per share of 60 cents on revenue of $20.5 million in the prior year.
In discussing its loss ratio, the company stated that its business mix "has evolved significantly since a year ago," as businesses such as home and pet insurance have grown. Lemonade stated that these companies "display higher loss ratios than our more mature, stable renters book."
The company stated that it is working on projects to improve underwriting profitability in its newer lines of business and that it is on track to "get the loss ratios of all Lemonade product lines to under 75%." It did, however, add "As our newer lines mature, we may see quarters with loss ratios above this level in the near future. This is natural and temporary cost of launching and scaling new products."
Lemonade Car is also off to a strong start in Illinois, with roughly 3/4 of Lemonade Car customers bundling it with at least one other Lemonade policy, according to the company.