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Lemonade revenue rises 79% in Q2 as premium retention improves
In-force premium grew 32% to $1.43 billion, while gross earned premium increased 32% to $332.4 million.
Lemonade, the AI-driven insurer, reported second-quarter 2026 revenue of $294.4 million, up $130.3 million, or 79%, compared with Q2 2025, Reinsurance News said. The company attributed the growth mainly to higher gross earned premium and an improved premium retention rate tied to changes to its quota share cession rates.
The insurer said in-force premium (IFP), the aggregate annualized premium for customers as of period end, increased 32% in Q2 2026 to $1.43 billion. Gross earned premium reached $332.4 million in the quarter, rising $80.1 million, or 32%, from Q2 2025.
Lemonade also reported gross profit of $113.2 million, up $48.9 million, or 76%, driven by the same revenue increase. Its net loss narrowed slightly to $43.4 million in Q2 2026 from $43.9 million a year earlier.
Reinsurance News added that the retention improvement followed Lemonade reducing its quota share cession to about 18% from 20% at its July 1 reinsurance renewal, which allowed the company to retain a greater share of its growing gross profit. The company also described securing additional protection for higher-volatility and catastrophe-exposed risks, including increased tail catastrophe reinsurance coverage, as part of its 2026 to 2027 reinsurance programme.