Lemonade, Inc. announced the renewal of its reinsurance program effective July 1, 2026, a strategic move designed to increase the company's retention of economics from its growing business. The digital insurance provider renegotiated the agreements to retain a larger share of the business's growing gross profit while simultaneously expanding protection against catastrophes and major weather events. The new 12-month program improves the company's reinsurance economics, coverage, and capital efficiency.

Under the renewed quota share agreements, Lemonade expects to cede approximately 18% of premium to reinsurers. This figure represents a reduction from the approximately 20% of premium ceded under the previous arrangement. By lowering the ceded percentage, the company aims to capture more value from its expanding operations. Lemonade believes the economics of the renewed program are more attractive than those of the expiring treaty.

The program increases coverage for higher-volatility and catastrophe-exposed risks, including additional tail catastrophe protection. As part of the renewal, Lemonade also expects to update its ancillary reinsurance programs, including allowing its Property Per Risk (PPR) coverage to expire while expanding its European catastrophe excess of loss (XOL) program.

The program continues to cover Lemonade's global business. One new reinsurer is joining Lemonade's primary quota share panel alongside existing partners, broadening the company's reinsurance support. Tim Bixby, CFO of Lemonade, stated that the renewal allows the company to retain more premium and add protection against volatility on attractive risk-adjusted terms.

Key Changes in Reinsurance Program

Lemonade has expanded its renters insurance to Mississippi, offering residents coverage starting at $5 per month. The tech-first insurance company aims to provide a simple, fast way for renters to secure policies that fit their lifestyles. This move marks another step in Lemonade's continued growth across the United States.

Coverage and Features

Lemonade Renters provides flexible coverage options through its app. Customers can get quotes, purchase policies, update existing plans, and file claims all in one place. About 40% of claims are handled instantly, allowing renters to receive assistance more quickly after a covered loss.

Pricing and Savings

The company's rates are approximately 30% lower than the national average based on company and industry data. Customers may also qualify for additional savings through policy bundling, having qualifying home safety devices, or choosing annual billing.

Company Overview

Lemonade currently serves more than 3 million active customers. It has earned recognition from organizations such as Forbes, CNBC, and U.S. News & World Report for its insurance products and customer experience. The company operates as a Certified B-Corp with a focus on social impact, including a Giveback program that has donated over $10M to nonprofits.