Morgan Stanley downgrades Lemonade to Equal-Weight, keeps target at $75

0 min read | Published on 08 Jul 2026, 03:31 PM |Updated on 08 Jul 2026, 03:31 PM

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Radhika SScanX News Team

Key Highlights

Morgan Stanley analyst Bob Huang downgraded Lemonade from Overweight to Equal-Weight. The firm maintained the price target at $75.

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Morgan Stanley analyst Bob Huang downgraded Lemonade to Equal-Weight from Overweight while maintaining the price target at $75. The rating adjustment reflects a revised outlook on the stock following a period of Overweight status.

Rating and Target Details

The downgrade shifts Lemonade's status from a buy-equivalent rating to a neutral stance. Despite the lower rating, the price target remains unchanged at $75, indicating that the firm still sees upside potential relative to the current trading price.

Metric	Previous	New
Rating	Overweight	Equal-Weight
Price Target	$75	$75

What specific factors led Morgan Stanley to revise its outlook on Lemonade?

How might this downgrade influence investor sentiment towards Lemonade in the short term?

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Lemonade renews reinsurance program, improves capital efficiency

1 min read | Published on 30 Jun 2026, 09:53 PM |Updated on 07 Jul 2026, 01:03 AM

Reviewed by

Riya DScanX News Team

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Key Highlights

Lemonade, Inc. renewed its global reinsurance program effective July 1, 2026, reducing the quota share cession to 18% from 20% to improve capital efficiency and retain more gross profit. The 12-month program expands catastrophe protection, including tail coverage and European XOL, while allowing Property Per Risk coverage to expire. A new reinsurer has joined the panel, and CFO Tim Bixby highlighted the improved risk-adjusted terms.

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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

Metric	Previous Program	Renewed Program
Quota Share Cession	Approximately 20%	Approximately 18%
Catastrophe Protection	Standard	Expanded tail protection
European XOL Program	Existing	Expanded
Property Per Risk (PPR)	Active	Set to expire