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Lemonade swings to $43M Q2 net loss while gross profit hits record
Lemonade said in Q2 its in-force premium rose 32% to about $1.4 billion and its LAE ratio fell to a record low 5% as it continues shifting reinsurance coverage.
Insurtech Lemonade reported a second quarter 2026 net loss of about $43 million, compared with a loss of about $44 million in the same quarter a year earlier, while it continued to grow its customer base, according to Insurance Journal.
The company said year over year gross profit increased 76% to a record of about $113 million. In-force premium rose 32% to about $1.4 billion, and its customer count increased 23% to about 3.3 million. In a shareholder letter, Lemonade said it is on track to post its first adjusted EBITDA-positive quarter in the fourth quarter of 2026.
Lemonade also highlighted cost trends and underwriting efficiency, pointing to an LAE ratio that declined to a record low 5%. It attributed the ability to support growth with minimal incremental claims handling expense to its use of artificial intelligence.
The insurer updated its reinsurance positioning, saying it is moving from a broad-based quota share structure toward a more targeted approach that prioritizes protection with the greatest risk-adjusted value, particularly for catastrophe volatility in its homeowners business. For its 12-month program effective July 1, Lemonade said the quota share cession rate was reduced from about 20% to about 18%.