Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39367 | |
Entity Registrant Name | Lemonade, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0469673 | |
Entity Address, Address Line One | 5 Crosby Street, 3rd Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10013 | |
City Area Code | 844 | |
Local Phone Number | 733-8666 | |
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Trading Symbol | LMND | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 69,163,813 | |
Amendment Flag | false | |
Entity Central Index Key | 0001691421 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments | ||
Fixed maturities available-for-sale, at fair value (amortized cost: $722.2 million and $696.8 million as of September 30, 2022 and December 31, 2021, respectively) | $ 693.1 | $ 691.4 |
Short-term investments (cost: $143.1 million and $110.4 million as of September 30, 2022 and December 31, 2021, respectively) | 142.8 | 110.4 |
Total investments | 835.9 | 801.8 |
Cash, cash equivalents and restricted cash | 225 | 270.6 |
Premium receivable, net of allowance for credit losses of $2.7 million and $1.6 million as of September 30, 2022 and December 31, 2021, respectively | 187.7 | 127 |
Reinsurance recoverable | 136.3 | 89.8 |
Prepaid reinsurance premium | 181.6 | 149.6 |
Deferred acquisition costs | 7.6 | 6.2 |
Property and equipment, net | 19.1 | 11.7 |
Intangible assets | 35.7 | 0.6 |
Goodwill | 10.9 | 0 |
Other assets | 73.1 | 53.2 |
Total assets | 1,712.9 | 1,510.5 |
Liabilities and Stockholders' Equity | ||
Unpaid loss and loss adjustment expense | 220.6 | 97.9 |
Unearned premium | 294.1 | 207.7 |
Trade payables | 1.5 | 1 |
Funds held for reinsurance treaties | 131.7 | 103.1 |
Deferred ceding commission | 43 | 36.5 |
Ceded premium payable | 24.9 | 18.7 |
Other liabilities and accrued expenses | 90.3 | 57.4 |
Total liabilities | 806.1 | 522.3 |
Contingencies (Note 15) | ||
Stockholders' equity | ||
Common stock, $0.00001 par value, 200,000,000 shares authorized; 69,120,346 and 61,660,996 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 0 | 0 |
Additional paid-in capital | 1,738.1 | 1,553.5 |
Accumulated deficit | (796) | (561.9) |
Accumulated other comprehensive loss | (35.3) | (3.4) |
Total stockholders' equity | 906.8 | 988.2 |
Total liabilities and stockholders' equity | $ 1,712.9 | $ 1,510.5 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, amortized cost | $ 722.2 | $ 696.8 |
Short -term investments, cost | 143.1 | 110.4 |
Premium receivable, allowance for doubtful accounts | $ 2.7 | $ 1.6 |
Common stock, par value (usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 69,120,346 | 61,660,996 |
Common stock, outstanding (in shares) | 69,120,346 | 61,660,996 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||||
Net earned premium | $ 50.6 | $ 21.5 | $ 109.2 | $ 51.6 |
Ceding commission income | 16.9 | 12.3 | 46.4 | 31.9 |
Net investment income | 2.6 | 0.6 | 4.7 | 1 |
Commission and other income | 3.9 | 1.3 | 8 | 2.9 |
Total revenue | 74 | 35.7 | 168.3 | 87.4 |
Expense | ||||
Loss and loss adjustment expense, net | 53.3 | 17.5 | 105.8 | 47 |
Other insurance expense | 12.1 | 6.3 | 30.9 | 16.3 |
Sales and marketing | 35.8 | 42.2 | 111.1 | 104.4 |
Technology development | 21.4 | 14.3 | 56.1 | 35.4 |
General and administrative | 40.5 | 19.6 | 91.1 | 49.5 |
Total expense | 163.1 | 99.9 | 395 | 252.6 |
Loss before income taxes | (89.1) | (64.2) | (226.7) | (165.2) |
Income tax expense | 2.3 | 2.2 | 7.4 | 5.8 |
Net loss | (91.4) | (66.4) | (234.1) | (171) |
Other comprehensive loss, net of tax | ||||
Unrealized loss on investments in fixed maturities | (5) | (0.8) | (23.8) | (1.2) |
Foreign currency translation adjustment | (1.5) | 0 | (8.1) | (0.5) |
Comprehensive loss | $ (97.9) | $ (67.2) | $ (266) | $ (172.7) |
Per share data: | ||||
Net loss per share attributable to common stockholders—basic (usd per share) | $ (1.37) | $ (1.08) | $ (3.69) | $ (2.80) |
Net loss per share attributable to common stockholders—diluted (usd per share) | $ (1.37) | $ (1.08) | $ (3.69) | $ (2.80) |
Weighted average common shares outstanding—basic (in shares) | 66,877,100 | 61,580,145 | 63,482,945 | 61,086,238 |
Weighted average common shares outstanding—diluted (in shares) | 66,877,100 | 61,580,145 | 63,482,945 | 61,086,238 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income |
Beginning balance (in shares) at Dec. 31, 2020 | 56,774,294 | ||||
Beginning balance at Dec. 31, 2020 | $ 541 | $ 0 | $ 859.8 | $ (320.6) | $ 1.8 |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options and distribution of restricted stock units(in shares) | 577,162 | ||||
Exercise of stock options and distribution of restricted stock units | 6.1 | 6.1 | |||
Issuance of common stock (in shares) | 4,018,647 | ||||
Issuance of common stock | 640.3 | 640.3 | |||
Stock-based compensation | 6.1 | 6.1 | |||
Net loss | (49) | (49) | |||
Other comprehensive income (loss) | (0.8) | (0.8) | |||
Ending balance (in shares) at Mar. 31, 2021 | 61,370,103 | ||||
Ending balance at Mar. 31, 2021 | 1,143.7 | $ 0 | 1,512.3 | (369.6) | 1 |
Beginning balance (in shares) at Dec. 31, 2020 | 56,774,294 | ||||
Beginning balance at Dec. 31, 2020 | 541 | $ 0 | 859.8 | (320.6) | 1.8 |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Net loss | (171) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 61,615,624 | ||||
Ending balance at Sep. 30, 2021 | 1,048 | $ 0 | 1,539.5 | (491.6) | 0.1 |
Beginning balance (in shares) at Mar. 31, 2021 | 61,370,103 | ||||
Beginning balance at Mar. 31, 2021 | 1,143.7 | $ 0 | 1,512.3 | (369.6) | 1 |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options and distribution of restricted stock units(in shares) | 162,024 | ||||
Exercise of stock options and distribution of restricted stock units | 1.7 | 1.7 | |||
Stock-based compensation | 11.9 | 11.9 | |||
Net loss | (55.6) | (55.6) | |||
Other comprehensive income (loss) | (0.1) | (0.1) | |||
Ending balance (in shares) at Jun. 30, 2021 | 61,532,127 | ||||
Ending balance at Jun. 30, 2021 | 1,101.6 | $ 0 | 1,525.9 | (425.2) | 0.9 |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options and distribution of restricted stock units(in shares) | 83,497 | ||||
Exercise of stock options and distribution of restricted stock units | 0.9 | 0.9 | |||
Stock-based compensation | 12.7 | 12.7 | |||
Net loss | (66.4) | (66.4) | |||
Other comprehensive income (loss) | (0.8) | (0.8) | |||
Ending balance (in shares) at Sep. 30, 2021 | 61,615,624 | ||||
Ending balance at Sep. 30, 2021 | $ 1,048 | $ 0 | 1,539.5 | (491.6) | 0.1 |
Beginning balance (in shares) at Dec. 31, 2021 | 61,660,996 | 61,660,996 | |||
Beginning balance at Dec. 31, 2021 | $ 988.2 | $ 0 | 1,553.5 | (561.9) | (3.4) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options and distribution of restricted stock units(in shares) | 97,743 | ||||
Exercise of stock options and distribution of restricted stock units | 0.6 | 0.6 | |||
Stock-based compensation | 14.1 | 14.1 | |||
Net loss | (74.8) | (74.8) | |||
Other comprehensive income (loss) | (15.4) | (15.4) | |||
Ending balance (in shares) at Mar. 31, 2022 | 61,758,739 | ||||
Ending balance at Mar. 31, 2022 | $ 912.7 | $ 0 | 1,568.2 | (636.7) | (18.8) |
Beginning balance (in shares) at Dec. 31, 2021 | 61,660,996 | 61,660,996 | |||
Beginning balance at Dec. 31, 2021 | $ 988.2 | $ 0 | 1,553.5 | (561.9) | (3.4) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options and distribution of restricted stock units(in shares) | 404,133 | ||||
Net loss | $ (234.1) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 69,120,346 | 69,120,346 | |||
Ending balance at Sep. 30, 2022 | $ 906.8 | $ 0 | 1,738.1 | (796) | (35.3) |
Beginning balance (in shares) at Mar. 31, 2022 | 61,758,739 | ||||
Beginning balance at Mar. 31, 2022 | 912.7 | $ 0 | 1,568.2 | (636.7) | (18.8) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Exercise of stock options and distribution of restricted stock units(in shares) | 108,838 | ||||
Exercise of stock options and distribution of restricted stock units | 0.4 | 0.4 | |||
Stock-based compensation | 13.9 | 13.9 | |||
Net loss | (67.9) | (67.9) | |||
Other comprehensive income (loss) | (10) | (10) | |||
Ending balance (in shares) at Jun. 30, 2022 | 61,867,577 | ||||
Ending balance at Jun. 30, 2022 | 849.1 | $ 0 | 1,582.5 | (704.6) | (28.8) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | |||||
Issuances of common stock from acquisition of Metromile(in shares) | 6,901,934 | ||||
Issuance of common stock from acquisition of Metromile (Note 5) | 137.7 | 137.7 | |||
Exercise of stock options and distribution of restricted stock units(in shares) | 350,835 | ||||
Exercise of stock options and distribution of restricted stock units | 2.3 | 2.3 | |||
Stock-based compensation | 15.6 | 15.6 | |||
Net loss | (91.4) | (91.4) | |||
Other comprehensive income (loss) | $ (6.5) | (6.5) | |||
Ending balance (in shares) at Sep. 30, 2022 | 69,120,346 | 69,120,346 | |||
Ending balance at Sep. 30, 2022 | $ 906.8 | $ 0 | $ 1,738.1 | $ (796) | $ (35.3) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2021 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance costs and underwriting fees | $ 22.8 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (234.1) | $ (171) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 6.8 | 2.5 |
Stock-based compensation | 43.6 | 30.7 |
Amortization of discount on bonds | 5.9 | (1.5) |
Provision for bad debt | 6.4 | 3.8 |
Changes in operating assets and liabilities: | ||
Premium receivable | (49.8) | (46.9) |
Reinsurance recoverable | (32.2) | (21.8) |
Prepaid reinsurance premium | (32.1) | (58.9) |
Deferred acquisition costs | (1.4) | (2.5) |
Other assets | (5.1) | (15) |
Unpaid loss and loss adjustment expense | 46.5 | 27.7 |
Unearned premium | 71.5 | 79.4 |
Trade payables | (0.3) | 1.6 |
Funds held for reinsurance treaties | 28.6 | 35 |
Deferred ceding commissions | 6.5 | 13.7 |
Ceded premium payable | (5.8) | 11.8 |
Other liabilities and accrued expenses | 10.6 | 16.7 |
Net cash used in operating activities | (134.4) | (94.7) |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | 98.8 | 0 |
Proceeds from short-term investments sold or matured | 150 | 0 |
Proceeds from bonds sold or matured | 90 | 7.9 |
Cost of short-term investments acquired | (118.3) | (107.5) |
Cost of bonds acquired | (119.4) | (700.1) |
Purchases of property and equipment | (7.5) | (7.4) |
Net cash provided by (used in) investing activities | 93.6 | (807.1) |
Cash flows from financing activities: | ||
Proceeds from Follow-on Offering, net of underwriting discounts and commissions and offering costs | 0 | 640.3 |
Proceeds from stock exercises | 3.3 | 8.7 |
Net cash provided by financing activities | 3.3 | 649 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (8.1) | 1 |
Net decrease in cash, cash equivalents and restricted cash | (45.6) | (251.8) |
Cash, cash equivalents and restricted cash at beginning of period | 270.6 | 571.4 |
Cash, cash equivalents and restricted cash at end of period | 225 | 319.6 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 3.4 | 2.1 |
Non-cash transactions: | ||
Warrants assumed from acquisition of Metromile | $ 0.8 | $ 0 |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Nature of the BusinessLemonade, Inc. is a public benefit corporation organized under Delaware law on June 17, 2015. It provides certain personnel, facilities and services to each of its subsidiaries (together with Lemonade, Inc., the “Company”), all of which are 100% owned, directly or indirectly, by Lemonade, Inc. For the list of the Company's US and EU subsidiaries, see Note 1 - Nature of the Business, of the audited consolidated financial statements and related notes thereto for the year ended December 31, 2021 as included in the Company's Annual Report on Form 10-K for the year ending December 31, 2021 (the "Annual Report on Form 10-K") for more complete descriptions and discussions. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated upon consolidation. All foreign currency amounts in the condensed consolidated statement of operations and comprehensive loss have been translated using an average rate for the reporting period. All foreign currency balances in the balance sheet have been translated using the spot rate at the end of the reporting period. All figures expressed, except share amounts, are in U.S. dollars in millions. Risk and Uncertainties The COVID-19 pandemic has caused national and global economic and financial market disruptions and may adversely impact the Company. Although the Company did not see a material impact on its results of operations for the three and nine months ended September 30, 2022 and year ended December 31, 2021 due to the COVID-19 pandemic, the Company cannot predict the duration or magnitude of the pandemic or the full impact that it may have on the Company’s financial condition and results of operations, business operations, and workforce. Unaudited interim financial information |
Use of Estimates
Use of Estimates | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of EstimatesThe preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates estimates, including those related to contingent assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, reinsurance recoverables on unpaid losses and valuation allowance on deferred tax assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash, cash equivalents and restricted cash The following represents the Company’s cash, cash equivalents and restricted cash as of September 30, 2022 and December 31, 2021: September 30, December 31, 2022 2021 Cash and cash equivalents $ 222.0 $ 270.6 Restricted cash 3.0 — Total cash, cash equivalents and restricted cash $ 225.0 $ 270.6 Cash and cash equivalents consist primarily of bank deposits and money market accounts with maturities of three months or less at the date of acquisition and are stated at cost, which approximates fair value. The Company’s restricted cash relates to security deposits for an office lease in Tempe, Arizona and San Francisco, California. The carrying value of restricted cash approximates fair value. Deferred offering costs The Company capitalized certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs were recorded as a reduction to the carrying value of stockholders' equity, as a reduction of additional paid-in capital generated as a result of such offering. On January 14, 2021, the Company completed a Follow-on Offering of common stock, as defined and discussed in detail in Note 10, which generated net proceeds of $525.7 million, after deducting underwriting discounts and offering costs. On February 1, 2021, the underwriters exercised their option to purchase additional shares, and generated additional net proceeds to the Company of $114.6 million. Deferred offering costs from the Follow-on Offering amounted to $0.4 million. Recently adopted accounting pronouncements Leases In February 2016, the FASB issued Leases (Topic 842) ("ASU 2016-02"), as subsequently amended, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors), and replaces the existing guidance in ASC 840, Leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine the recognition pattern of lease expense over the term of the lease. In addition, a lessee is required to record (i) a right-of-use asset and a lease liability the balance sheet for all leases with accounting lease terms of more than 12 months regardless of whether it is an operating or financing lease, and (ii) lease expense for operating leases and amortization and interest expense for financing leases, in the statement of operations. Leases with a term of 12 months or less may be accounted for similar to existing guidance for operating leases under ASC 840. In July 2018, the FASB issued ASU 2018-11, Leases ("Topic 842"), which added an optional transition method that allows companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest comparative period presented. The Company adopted the new standard effective January 1, 2021, using the modified retrospective transition approach which uses the effective date as the date of initial application with no adjustment to prior periods presented. There was no adjustment to the opening balance of retained earnings, as a result of the adoption. At adoption date, the new standard resulted in the recognition of an operating lease Right-of-Use ("ROU") asset of $16.9 million included under Other Assets, and a corresponding operating lease liabilities of $17.2 million included in Other Liabilities on the consolidated balance sheets. The difference of $0.3 million between the operating lease ROU assets and operating lease liabilities represents reclassification of deferred rent liability (the difference between the straight-line rent expenses and paid rent amounts under the leases) to operating lease ROU assets from other liabilities at the adoption date. The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows. The adoption impact relates to the Company’s existing operating leases for office spaces in the US, Netherlands and Israel. The Company has elected to apply the package of practical expedients requiring no reassessment of whether any expired or existing contracts are or contain leases, the lease classification of any expired or existing leases, or the capitalization of initial direct costs for any existing leases. Additionally, the Company elected the practical expedients that permit the exclusions of leases considered to be short-term. Current Expected Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses ("Topic 326"): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 introduced a current expected credit loss ("CECL") model for measuring expected credit losses for certain types of financial instruments held at the reporting date requiring significant judgment in application based on historical experience, current conditions and reasonable supportable forecasts, but is not prescriptive about certain aspects of estimating expected losses. The guidance replaced the current incurred loss model for measuring expected credit losses and provided for additional disclosure requirements. Subsequently, the FASB issued additional ASUs on Topic 326 that did not change the core principle of the guidance in ASU 2016-13, but provided clarification and implementation guidance on certain aspects of ASU 2016-13, and have the same effective date and transition requirements as ASU 2016-13. The Company adopted the guidance using a modified retrospective approach as of January 1, 2021 which resulted in no cumulative-effect adjustment to retained earnings. The updated guidance in ASU 2016-13 also amended the previous other-than-temporary impairment (“OTTI”) model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the guidance related to available-for-sale fixed income securities on January 1, 2021 using a prospective transition approach for available-for-sale fixed income securities that were purchased with credit deterioration or had recognized an OTTI write-down prior to the effective date. The effect of the prospective transition approach was to maintain the same amortized cost basis before and after the effective date. Reclassification Certain accounts in the prior period financial statements were reclassified to conform with the current period presentation. |
Acquisition of Metromile
Acquisition of Metromile | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition of Metromile | Acquisition of Metromile On July 28, 2022 (the "Acquisition Date"), the Company completed its acquisition of Metromile, Inc. (“Metromile"), a leading digital insurance platform in the United States that offers real-time, personalized auto insurance policies by the mile (the "Metromile Acquisition"). The Company acquired 100% of Metromile's equity through an all-stock transaction based upon the exchange ratio of 0.05263 shares of Lemonade for each outstanding share of Metromile. As a result of the acquisition, Metromile stockholders received 6,901,934 shares of Lemonade's common stock, with minimal cash paid in lieu of fractional shares. In addition, upon closing of the Metromile Acquisition, the Company assumed all outstanding and unexercised options, and outstanding restricted stock units (collectively referred to as "replacement awards") as of the Acquisition Date, which were converted into corresponding awards using the same exchange ratio of 0.05263 and with substantially identical terms and conditions prior to the close of the Metromile Acquisition. Fair value of consideration transferred for the Metromile Acquisition is as follows ($ in millions): Metromile issued and outstanding stock exchanged for Lemonade common stock (1) $ 136.9 Contingent consideration (2) — Metromile vested awards exchanged for Lemonade awards (3) 0.8 Total Purchase Consideration $ 137.7 (1) The fair value of 6,901,934 shares issued and exchanged for Lemonade common stock was determined based on the closing price at acquisition date of $19.84, and includes a minimal amount of cash paid in lieu of fractional shares. (2) Contingent consideration represents Metromile's contingently issuable shares that are convertible into Lemonade common stock in accordance with the exchange ratio as set forth in the merger agreement. In accordance with ASC 805-30-25-5, contingent consideration shall be recognized and measured at fair value as of the Acquisition Date. Given that the contingencies are not probable of being met within the contingency period, no fair value was assessed for these Metromile shares. (3) Fair value of replacement awards related to services rendered prior to the acquisition are included as part of purchase consideration. The unvested portion of fair value attributable to these replacement awards of $4.3 million comprised of $0.1 million for assumed options and $4.2 million for assumed restricted stock units ("RSUs"), and associated with future service will be recognized as expense over the future service period. This Metromile Acquisition increased the Company's geographic footprint as a tech-enabled insurance provider and is expected to accelerate growth of the Lemonade car product, including other product offerings. The Metromile Acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). The purchase price was allocated to assets acquired and liabilities assumed based on the estimated fair values at the Acquisition Date. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, and will not be deductible for tax purposes. Goodwill from this business combination is primarily attributable to synergies from future expected economic benefits, enhanced revenue growth from expanded capabilities and geographic presence, including cost savings from streamlined operations and enhanced operational efficiencies. The following table presents the preliminary allocation of purchase consideration recorded on the condensed consolidated balance sheet as of the Acquisition Date ($ in millions): Assets acquired Fixed maturities, available for sale, at fair value $ 1.8 Short-term investments 64.2 Cash, cash equivalents and restricted cash 98.8 Premiums receivable 17.4 Reinsurance recoverable 14.5 Property and equipment 4.6 Value of business acquired ("VOBA") 1.7 Intangible assets - technology 28.0 Intangible assets - insurance licenses 7.5 Other assets 14.7 Total assets acquired $ 253.2 Liabilities assumed Unpaid loss and loss adjustment expenses $ 76.3 Unearned premium 15.1 Trade payables 0.8 Ceded premium payable 12.0 Other liabilities and accrued expenses 22.2 Total liabilities assumed $ 126.4 Total identifiable net assets acquired $ 126.8 Total purchase consideration $ 137.7 Goodwill $ 10.9 Estimated fair values of assets acquired and liabilities assumed from Metromile are subject to change as we obtain additional information, and will be updated and finalized within the measurement period that will not extend beyond 12 months from the Acquisition Date. The amounts, based on preliminary valuations and subject to final adjustment, allocated to intangible assets are as follows ($ in millions): Fair Value Weighted-Average Useful Life Technology $ 28.0 3 to 5 years Insurance licenses 7.5 N/A Total $ 35.5 The results of operations for Metromile of $15.1 million of revenue and $20.7 million of net loss from the date of the acquisition to the period ended September 30, 2022, have been included within the accompanying consolidated statements of operations and comprehensive loss. The Company incurred transaction expenses of approximately $7.4 million and $8.4 million for the three and nine months ended September 30, 2022, respectively. These expenses were included in General and administrative expenses within the Company’s consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2022, respectively. The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the three and nine months ended September 30, 2022 and 2021 as if the Metromile Acquisition had occurred on January 1, 2021. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company’s operating results that may have actually occurred had the Metromile Acquisition been completed on January 1, 2021. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Metromile. Unaudited Pro Forma: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Total Revenue $ 85.1 $ 64.2 $ 221.1 $ 159.1 Net loss $ (112.2) $ (90.6) $ (316.8) $ (344.7) The unaudited pro forma financial information reflects pro forma adjustments to present the combined pro forma results of operations as if the acquisition had occurred on January 1, 2021 to give effect to certain events the Company believes to be directly attributable to the acquisition. These pro forma adjustments primarily include: • a net decrease in amortization expense that would have been recognized due to acquired intangible assets; • an increase in the nine months ended September 30, 2022 for acquisition-related transaction costs; • a decrease in operating revenues due to the elimination of deferred revenues and assigned no value at the Acquisition Date; • a decrease to amortization expense due to the elimination of unamortized deferred acquisition costs; • an increase to income due to the adjustment of the loss and loss adjustment expense reserves at fair value; and • an increase in income due to the depreciation of ROU assets and lease expense upon adoption of ASC 842. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Unrealized gains and losses The following tables present cost or amortized cost and fair values of investment in fixed maturities as of September 30, 2022 and December 31, 2021 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses September 30, 2022 Corporate debt securities $ 597.3 $ — $ (24.5) $ 572.8 U.S. Government obligations 120.9 — (4.6) 116.3 Municipal securities 1.2 — — 1.2 Asset-backed securities 2.8 — — 2.8 Total $ 722.2 $ — $ (29.1) $ 693.1 December 31, 2021 Corporate debt securities $ 593.4 $ — $ (4.7) $ 588.7 U.S. Government obligations 102.2 0.1 (0.8) 101.5 Municipal securities 1.2 — — 1.2 Asset-backed securities — — — — Total $ 696.8 $ 0.1 $ (5.5) $ 691.4 Gross unrealized losses for fixed maturities was $29.1 million as of September 30, 2022 and $5.5 million as of December 31, 2021. Gross unrealized gains and losses were recorded as a component of accumulated other comprehensive loss. Contractual maturities of bonds The following table presents the cost or amortized cost and estimated fair value of investments in fixed maturities as of September 30, 2022 by contractual maturity ($ in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2022 Cost or Fair Value Due in one year or less $ 251.4 $ 246.1 Due after one year through five years 470.8 447.0 Due after five years through ten years — — Due after ten years — — Total $ 722.2 $ 693.1 Net investment income An analysis of net investment income follows ($ in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Interest on cash and cash equivalents $ 0.3 $ 0.1 $ 0.4 $ 0.4 Fixed maturities 1.7 0.6 3.7 0.7 Short-term investments 0.7 — 0.9 — Total 2.7 0.7 5.0 1.1 Investment expense 0.1 0.1 0.3 0.1 Net investment income $ 2.6 $ 0.6 $ 4.7 $ 1.0 Investment gains and losses The Company had pre-tax net realized capital losses of $0.4 million for the nine months ended September 30, 2022. There were no pre-tax net realized capital gains or losses for the three months ended September 30, 2022, and for the three and nine months ended September 30, 2021. Aging of gross unrealized losses The following table presents the gross unrealized losses and related fair values for the Company’s investment in fixed maturities, grouped by duration of time in a continuous unrealized loss position as of September 30, 2022 and December 31, 2021 ($ in millions): Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses September 30, 2022 Corporate debt securities $ 198.4 $ (7.0) $ 362.6 $ (17.5) $ 561.0 $ (24.5) U.S. Government obligations 36.8 (0.8) 79.3 (3.8) 116.1 (4.6) Municipal securities 0.6 — — — 0.6 — Asset-backed securities 2.8 — — — 2.8 — Total $ 238.6 $ (7.8) $ 441.9 $ (21.3) $ 680.5 $ (29.1) Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2021 Corporate debt securities $ 581.9 $ (4.7) $ — $ — $ 581.9 $ (4.7) U.S. Government obligations 95.0 (0.8) 0.5 — 95.5 (0.8) Municipal securities 1.2 — — — 1.2 — Asset-backed securities — — — — — — Total $ 678.1 $ (5.5) $ 0.5 $ — $ 678.6 $ (5.5) Investments in fixed maturities with gross unrealized losses for twelve months or more was $21.3 million and less than $0.1 million for September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, 294 of the securities held were in an unrealized loss position . The Company determined that unrealized losses on fixed maturities were primarily due to the interest rate environment, and not credit risk related to the issuers of these securities. The Company does not intend to sell these investment in fixed maturities, and it is not more likely than not that that the Company will be required to sell these investment in fixed maturities before recovery of the amortized cost basis. No allowance for credit losses related to any of these securities was recorded for the three and nine months ended September 30, 2022. The Company does not measure an allowance for credit losses on accrued interest receivable and would instead write off accrued interest receivable at the time an issuer defaults or is expected to default on payments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of September 30, 2022 and December 31, 2021 ($ in millions): September 30, 2022 Level 1 Level 2 Level 3 Total Financial Assets: Corporate debt securities $ — $ 572.8 $ — $ 572.8 U.S. Government obligations — 116.3 — 116.3 Municipal securities — 1.2 — 1.2 Asset-backed securities — 2.8 — 2.8 Fixed maturities $ — $ 693.1 $ — $ 693.1 Short term investments — 142.8 — 142.8 Total $ — $ 835.9 $ — $ 835.9 Financial Liabilities: Warrant Liability $ — $ — $ 0.8 $ 0.8 December 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets: Corporate debt securities $ — $ 588.7 $ — $ 588.7 U.S. Government obligations — 101.5 — 101.5 Municipal securities — 1.2 — 1.2 Asset-backed securities — — — — Fixed maturities $ — $ 691.4 $ — 691.4 Short term investments — 110.4 — 110.4 Total $ — $ 801.8 $ — $ 801.8 Financial Liabilities: Warrant Liability $ — $ — $ — $ — The fair value of all different classes of Level 2 fixed maturities and short-term investments are estimated by using quoted prices from a third-party valuation service provider to gather, analyze and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments. There were no transfers between Level 1, Level 2, or Level 3 during the three and nine months ended September 30, 2022 and during the year ended December 31, 2021. Warrant liability As part of the Metromile Acquisition as discussed in Note 5, public and private warrants were assumed and are measured at fair value on a recurring basis at the end of the reporting period, and classified as level 3 for fair value hierarchy disclosure purposes. These warrants do not meet the criteria for equity treatment and are recorded as a liability and presented under "Other Liabilities and Accrued Expenses" on the consolidated balance sheet at fair value, with changes in fair value recognized and presented under "General and Administrative expenses" in the consolidated statement of operations and comprehensive loss. The Company utilized the binomial Monte-Carlo simulation to estimate the fair value of these warrants which are currently not actively traded as of reporting date, and are determined based on the following assumptions: September 30, 2022 Weighted average expected term (years) 3.36 Risk-free interest rate 4.2% Volatility 80% Expected dividend yield — The following table below presents the change in fair value of the warrant liability ($ in millions): September 30, 2022 Balance as of January 1 $ — Initial measurement of warrants liability as of July 31, 2022 0.5 Change in fair value 0.3 Balance as of September 30 $ 0.8 |
Unpaid Loss and Loss Adjustment
Unpaid Loss and Loss Adjustment Expense | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Unpaid Loss and Loss Adjustment Expense | Unpaid Loss and Loss Adjustment Expense The following table presents the activity in the liability for unpaid loss and loss adjustment expense ("LAE") for the nine months ended September 30, 2022 and 2021 ($ in millions): Nine Months Ended 2022 2021 Unpaid loss and LAE at beginning of period $ 97.9 $ 46.3 Less: Reinsurance recoverable at beginning of period (1) 72.7 36.3 Net unpaid loss and LAE at beginning of period 25.2 10.0 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 106.9 47.3 Prior years (1.1) (0.3) Total incurred 105.8 47.0 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 65.9 32.3 Prior years 21.9 6.3 Total paid 87.8 38.6 Unpaid loss and LAE, net of reinsurance recoverable acquired from Metromile 68.1 — Unpaid loss and LAE, net of reinsurance recoverable, at end of period 111.3 18.4 Reinsurance recoverable at end of period (1) 109.3 55.6 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 220.6 $ 74.0 (1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE Unpaid loss and LAE includes anticipated salvage and subrogation recoverable. Considerable variability is inherent in the estimate of the reserve for losses and LAE. Although management believes the liability recorded for losses and LAE is adequate, the variability inherent in this estimate could result in changes to the ultimate liability, which may be material to stockholders' equity. Additional variability exists due to accident year allocations of ceded amounts in accordance with reinsurance agreements, which is not expected to result in any changes to the ultimate liability. Other factors that can impact loss reserve development may also include trends in general economic conditions, including the effects of inflation. The Company had favorable development on net loss and LAE reserves of $1.1 million for the nine months ended September 30, 2022, and favorable development on net loss and LAE reserves of $0.3 million for the nine months ended September 30, 2021. No additional premiums or returned premiums have been accrued as a result of prior year effects. For the nine months ended September 30, 2022, current accident year incurred loss and LAE included $2.2 million of net incurred loss and LAE from Hurricane Ian. The net incurred loss and LAE from Hurricane Ian as of September 30, 2022 represents the Company's best estimates based upon information currently available. For the nine months ended September 30, 2021, current accident year incurred loss and LAE included $6.2 million of net incurred loss and LAE from the severe winter storm that affected the Company's customers in the states of Texas and Oklahoma. The net incurred loss and LAE from Winter Storm Uri as of September 30, 2021 represents the Company's best estimates based upon information currently available. In the ordinary course of business, the Company cedes losses and LAE to other reinsurance companies. These arrangements reduce the net loss potentially arising from large or catastrophic risks. Certain of these arrangements consist of excess of loss and catastrophe contracts, which protect against losses exceeding stipulated amounts. The ceding of risk through reinsurance does not relieve the Company from its obligations to policyholders. The Company remains liable with respect to losses and LAE ceded in the event that any reinsurer does not meet obligations assumed under the reinsurance agreements. The Company does not have any significant unsecured aggregate recoverable for losses, paid and unpaid including Incurred But Not Reported ("IBNR"), loss adjustment expenses, and unearned premium with any individual reinsurer. Through June 30, 2021, the Company had proportional reinsurance contracts which cover all of the Company's products and geographies, and transferred, or “ceded,” 75% of the premium to reinsurers ("Proportional Reinsurance Contracts"). In exchange, these reinsurers paid a ceding commission of 25% for every dollar ceded, in addition to funding all of the corresponding claims, or 75% of all claims. The Company opted to manage the remaining 25% of the business with alternative forms of reinsurance through non-proportional reinsurance contracts ("Non-Proportional Reinsurance Contracts"). A portion of the Company’s proportional reinsurance program expired on June 30, 2021 and on June 30, 2022. As the business continues to grow and diversify, and with stability in the Company's insurance results, the Company decreased the overall share of proportional reinsurance from 75% of premium to 55% effective July 1, 2022. In addition, the Company purchased a reinsurance program to protect against catastrophe risk in the U.S that exceed $80 million in losses effective July 1, 2022. Other non-proportional reinsurance contracts were renewed with terms similar to the expired contracts. Metromile entered into a Quota Share reinsurance agreement effective January 1, 2022 through June 30, 2023. Under the terms of the agreement, the Company cedes 30% of premiums and losses to reinsurers. |
Other Liabilities and Accrued E
Other Liabilities and Accrued Expenses | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities and Accrued Expenses | Other Liabilities and Accrued Expenses Other liabilities and accrued expenses as of September 30, 2022 and December 31, 2021 consist of the following ($ in millions): September 30, December 31, 2022 2021 Lease liabilities $ 36.6 $ 22.3 Employee compensation 11.7 5.4 Accrued advertising costs 8.6 11.2 Accrued professional fees 6.2 4.6 Premium taxes payable 5.0 5.4 Advance premium 2.7 2.0 Accrued hosting and software 1.7 0.6 Income tax payable 1.5 4.7 Accrued devices 1.0 — Warrant liability 0.8 — Other payables 14.5 1.2 Total $ 90.3 $ 57.4 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common stock Upon closing of the initial public offering ("IPO") in 2020, the Company filed an amended and restated certificate of incorporation on July 7, 2020 with the Secretary of State of the State of Delaware to authorize the issuance of up to 200,000,000 shares of common stock, par value $0.00001 per share, and 10,000,000 shares of undesignated preferred stock, par value $0.00001 per share. On January 14, 2021, the Company completed a Follow-on Offering of common stock (the "Follow-on Offering"), which resulted in the issuance and sale of 3,300,000 shares of common stock of the Company, and 1,524,314 shares of common stock by certain selling shareholders, and generated net proceeds to the Company of $525.7 million after deducting underwriting discounts and commissions and other offering costs. On February 1, 2021, the underwriters exercised their option to purchase additional shares, which resulted in the issuance and sale of an additional 718,647 shares of common stock of the Company, and generated additional net proceeds of $114.6 million to the Company after deducting underwriting discounts . On July 28, 2022, the Company completed its acquisition of Metromile in which 6,901,934 shares of Lemonade's common stock were issued to Metromile stockholders (see Note 5). As of September 30, 2022 and December 31, 2021, the Company was authorized to issue 200,000,000 shares of par value $0.00001 per share common stock. The voting, dividend and liquidation rights of the holders of the Company’s common stock is subject to and qualified by the rights, powers and preferences of the holders of the preferred stock. The Company in 2020 made a contribution of 500,000 newly issued shares of common stock to a related party, the Lemonade Foundation (see Note 14). In connection with the Follow-on Offering noted above, Lemonade Foundation sold 100,000 of the contributed shares of the Company. Undesignated Preferred Stock As of both September 30, 2022 and December 31, 2021, the Company's certificate of incorporation, as amended and restated, authorized the Company to issue up to 10,000,000 shares of undesignated preferred stock, par value $0.00001 per share. As of both September 30, 2022 and December 31, 2021, there were no shares of undesignated preferred stock issued or outstanding. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Share option plans 2020 Incentive Compensation Plan On July 2, 2020, the Company’s board of directors adopted and the Company’s stockholders approved the 2020 Incentive Compensation Plan (the “2020 Plan”), which became effective immediately prior to the effectiveness of the registration statement for the Company’s IPO on July 2, 2020. The 2020 Plan provides for the issuance of incentive stock options, non-qualified stock options, stock awards, stock units, stock appreciation rights and other stock-based awards. The number of shares initially reserved for issuance under the 2020 Plan is 5,503,678 shares, inclusive of available shares previously reserved for issuance under the 2015 Incentive Share Option Plan, as amended and restated on September 4, 2019 (the “2015 Plan”). In addition, the number of shares reserved for issuance under the 2020 Plan is subject to increase for awards previously issued under the 2015 Plan which are forfeited or lapse unexercised. Annually, on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, the reserve will be increased by an amount equal to the lesser of (A) 5% of the shares outstanding (on an as-converted basis) on the last day of the immediately preceding fiscal year and (B) such smaller number of shares as determined by the Company’s board of directors, provided that no more than 3,650,000 shares may be issued upon the exercise of incentive stock options. On January 1, 2022, the 2020 Plan share pool was increased by 3,083,050 shares, equal to 5% of the aggregate number of outstanding common stock as of December 31, 2021. As of September 30, 2022, there were 3,109,188 shares of common stock available for future grants. 2020 Employee Stock Purchase Plan On July 2, 2020, the Company's board of directors adopted and the Company's stockholders approved the 2020 Employee Stock Purchase Plan (the "2020 ESPP"), which became effective immediately prior to the effectiveness of the registration statement for the Company's IPO on July 2, 2020. The total shares of common stock initially reserved for issuance under the 2020 ESPP is limited to 1,000,000 shares. In addition, the number of shares available for issuance under the 2020 ESPP will be increased on January 1 of each calendar year beginning in 2021 and ending in and including 2030, by an amount equal to the lesser of (A) 1,000,000 shares, (B) 1% of the shares outstanding on the final day of the immediately preceding calendar year and (C) such smaller number of shares as is determined by the board of directors. The board of directors or a committee of the board of directors will administer and will have authority to interpret the terms of the 2020 ESPP and determine eligibility of participants. On January 1, 2022, there was no increase in the 2020 ESPP share pool. As of September 30, 2022, there were no shares of common stock issued under the 2020 ESPP. 2015 Incentive Share Option Plan In July 2015, the Company adopted the 2015 Incentive Share Option Plan ("2015 Plan"). The 2015 Plan has been amended and restated from time to time to increase the number of shares reserved for grant and to enable the grant of options to employees of the Company’s subsidiaries. Under the 2015 Plan, options to purchase common stock of the Company may be granted to employees, officers, directors and consultants of the Company. Each option granted can be exercised for one share of common stock of the Company. Options granted to employees generally vest over a period of no more than four years. The options expire ten years from the date of grant. Pursuant to the 2015 Plan, the Company had reserved 7,312,590 shares of common stock for issuance. Effective immediately upon the approval of the 2020 plan, the remaining shares of common stock available for future grant under the 2015 Plan were transferred to the 2020 Plan. As of September 30, 2022, there wer e no shares of common stock available for future grant under the 2015 Plan. Subsequent to the approval of the 2020 Plan, no additional grants will be made under the 2015 Plan and any outstanding awards under the 2015 Plan will continue with their original terms. Assumed Share Option Plans As part of the Metromile Acquisition, the Company assumed the Metromile 2011 Incentive Stock Plan ("2011 Plan") and Metromile 2021 Incentive Stock Plan ("2021 Plan") (collectively referred to as "Assumed Plans"). The equity awards assumed of 404,207 were granted from the respective Assumed Plans but will be settled in the Company's common stock (see Note 5). The remaining unallocated shares reserved under both 2011 Plan and 2021 Plan were cancelled and no new awards will be granted under these Assumed Plans. Options granted to employees and non-employees The fair value of each option granted for the nine months ended September 30, 2022 and 2021 is estimated on the date of grant using the Black-Scholes model based on the following assumptions: Nine Months Ended September 30, 2022 2021 Weighted average expected term (years) 6.1 6.1 Risk-free interest rate 2.7% 1.3% Volatility 47% 49% Expected dividend yield 0% 0% Expected volatility is calculated based on implied volatility from market comparisons of certain publicly traded companies and other factors. The expected term of options granted is based on the simplified method, which uses the midpoint between the vesting date and the contractual term in accordance with ASC Topic 718, “Compensation — Stock Compensation.” The risk-free interest rate is based on observed interest rates appropriate for the term of the Company’s stock options. The dividend yield assumption is based on the Company’s historical and expected future dividend payouts and may be subject to substantial change in the future. The following tables summarize activity of stock options and restricted stock units ("RSUs") ($ in millions, except for number of options and weighted average amounts): Stock options Number of Weighted- Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2021 6,573,744 $ 46.03 8.29 $ 85.86 Granted (1) 4,351,371 27.47 Exercised (404,133) 8.16 Cancelled (584,411) 50.66 Outstanding as of September 30, 2022 9,936,571 $ 39.39 8.44 $ 17.05 Options exercisable as of September 30, 2022 2,969,722 $ 27.51 6.88 $ 15.47 Options unvested as of September 30, 2022 6,966,849 $ 44.45 9.10 $ 1.58 (1) includes assumed options of 72,410 from the Metromile Acquisition (see Note 5) Restricted Stock Units Number of Shares Grant Date Outstanding as of December 31, 2021 335,814 $ 66.94 Granted (1) 1,743,224 22.59 Vested (153,283) 41.17 Cancelled (190,104) 27.88 Outstanding as of September 30, 2022 1,735,651 $ 28.38 (1) includes assumed restricted stock units of 331,797 from the Metromile Acquisition (see Note 5) Stock-based compensation expense Stock-based compensation expense from stock options and RSUs granted are included and classified in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021, including assumed awards from the Metromile Acquisition for the three and nine months ended September 30, 2022, as follows ($ in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Loss and loss adjustment expense, net $ 0.7 $ 0.3 $ 1.9 $ 1.0 Other insurance expense 0.4 0.4 1.2 0.8 Sales and marketing 1.8 1.4 5.0 3.8 Technology development 6.4 5.3 17.6 12.8 General and administrative 6.3 5.3 17.9 12.3 Total stock-based compensation expense $ 15.6 $ 12.7 $ 43.6 $ 30.7 Stock-based compensation expense classified by award type as included in the condensed consolidated statements of operations is as follows ($ in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock options $ 11.9 $ 12.0 $ 35.9 $ 28.0 RSUs 3.7 0.7 7.7 2.7 Total stock-based compensation expense $ 15.6 $ 12.7 $ 43.6 $ 30.7 The total unrecognized expense granted to employees and non-employees outstanding at September 30, 2022 was $109.9 million for the stock options and $46.2 million for the RSUs, with a remaining weighted-average vesting period of 1.5 years for the stock options and 1.7 years for the RSUs. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The consolidated effective tax rate was (3.2)% and (3.5)% for the nine months ended September 30, 2022 and 2021, respectively. The change in effective tax rate over the two periods was predominantly reflective of the change in profit before tax of the Company's Israel subsidiary and uncertain tax positions. Our unrecognized tax benefits related to tax positions, excluding penalty and interest amounted to $6.8 million as of September 30, 2022, and there was none as of September 30, 2021. The increase was primarily driven by the ongoing implementation of transfer pricing policies. Interest and penalties related to unrecognized tax expense (benefits) are recognized in income tax expense, when applicable. There was no accrual for interest and penalties as of September 30, 2022 and 2021. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next 12 months upon completion of implementation of transfer pricing policies. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss per Share Basic and diluted net loss per share attributable to common stockholders was calculated as follows : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Numerator: Net loss attributable to common stockholders ($ in millions) $ (91.4) $ (66.4) $ (234.1) $ (171.0) Denominator: Weighted average common shares outstanding — basic and diluted 66,877,100 61,580,145 63,482,945 61,086,238 Net loss per share attributable to common stockholders — basic and diluted $ (1.37) $ (1.08) $ (3.69) $ (2.80) The Company’s potentially dilutive securities, which include stock options and unvested RSUs, have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect. Nine Months Ended 2022 2021 Options to purchase common stock 9,936,571 6,032,798 Unvested restricted stock 1,735,651 130,241 Warrants for common stock (1) 412,969 — Total 12,085,191 6,163,039 (1) Each outstanding warrant of Metromile assumed by the Company are converted automatically into warrants denominated in the Company's common stock with the number of warrants and exercise price adjusted based on the exchange ratio of 0.05263 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company uses the services of a travel agency owned by a relative of one of the Company’s key stockholders. The Company incurred travel expenses in the amount of approximately less than $0.1 million for the three months ended September 30, 2022 and $0.1 million for the nine months ended September 30, 2022. Travel expenses were approximately less than $0.1 million for the three and nine months ended September 30, 2021. The Company has historically leased office spaces in the United States and The Netherlands from an affiliate. Rental expense in connection with the leased space was approximately less than $0.1 million for the three and nine months ended September 30, 2022 and September 30, 2021. There were no outstanding amounts due from or to related parties as of September 30, 2022 and December 31, 2021. The Company’s Co-Chief Executive Officers, both of whom are also members of the Company’s board of directors, are the two sole members of the board of directors of the Lemonade Foundation. The Company contributed 500,000 shares of common stock with a fair market value of $24.36 per share (see Note 10). In connection with the Follow-on Offering as discussed in Note 10, Lemonade Foundation sold 100,000 shares of the contributed shares of the Company. As of September 30, 2022, there were no outstanding amounts due to or from the Lemonade Foundation. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is occasionally a party to routine claims or litigation incidental to its business. The Company records accruals for loss contingencies with these legal matters when it is probable that a liability will be incurred, and the amount of the loss can be reasonably estimated. The Company has been made a party to a class action litigation alleging that certain of our business practices were improper. The Company has accrued a liability for this matter in accordance with ASC 450, Contingencies ("ASC 450"), and was settled in October 2022. Metromile Shareholder Litigation Matter Following the announcement of Metromile's acquisition by the Company, multiple complaints were filed against Metromile and certain former officers and directors alleging that Metromile’s disclosures concerning the transaction were incomplete. Metromile also received demands to inspect its books and records under Delaware General Corporation Law Section 220, and one stockholder commenced litigation to enforce inspection rights. All of the foregoing complaints have been voluntarily dismissed with the plaintiffs reserving their rights to seek a fee in connection with each respective litigation. The Company will continue to monitor all legal issues and assess whether to accrue liability in accordance with ASC 450 based on new information and as further developments arise. |
Geographical Breakdown of Gross
Geographical Breakdown of Gross Written Premium | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Geographical Breakdown of Gross Written Premium | Geographical Breakdown of Gross Written Premium The Company has a single reportable segment and offers insurance coverage under the homeowners multi-peril, inland marine, general liability and private passenger auto lines of business. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Jurisdiction Amount % of GWP Amount % of GWP Amount % of GWP Amount % of GWP California $ 45.9 26.4 % $ 29.0 24.8 % $ 101.3 24.7 % $ 70.4 25.0 % Texas 26.6 15.3 % 21.7 18.6 % 70.9 17.3 % 55.4 19.6 % New York 19.1 11.0 % 14.3 12.2 % 49.8 12.1 % 35.2 12.5 % New Jersey 8.9 5.1 % 5.3 4.5 % 20.1 4.9 % 12.1 4.3 % Illinois 8.8 5.1 % 5.0 4.3 % 19.8 4.8 % 12.1 4.3 % Georgia 6.1 3.5 % 4.9 4.2 % 15.5 3.8 % 12.9 4.6 % Colorado 4.9 2.8 % 3.1 2.7 % 11.8 2.9 % 6.5 2.3 % Pennsylvania 4.8 2.8 % 3.3 2.8 % 10.7 2.6 % 7.4 2.6 % Washington 5.6 3.2 % 1.8 1.5 % 10.0 2.4 % 3.9 1.4 % Virginia 4.4 2.5 % 2.6 2.2 % 9.5 2.3 % 6.0 2.1 % All other 38.9 22.3 % 25.8 22.2 % 91.3 22.2 % 60.2 21.3 % $ 174.0 100.0 % $ 116.8 100.0 % $ 410.7 100.0 % $ 282.1 100.0 % |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn October 14, 2022, the Company entered into an omnibus agreement (the “Omnibus Agreement”) and a warrant agreement (the “Warrant Agreement” and, together with the Omnibus Agreement, the “Agreements”) with Chewy Insurance Services, LLC (the “Warrantholder”) in connection with the execution of an agency agreement on the same date between the Company, Lemonade Insurance Agency, LLC, Lemonade Insurance Company and the Warrantholder. In connection with the Agreements, the Company issued to the Warrantholder a warrant to purchase up to 3,352,025 shares of the Company’s common stock with an exercise price of $0.01 per share, which will vest in installments on a yearly basis for a period of five years, subject to certain performance requirements. Vesting events and thresholds as specified in the Warrant Agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated upon consolidation. All foreign currency amounts in the condensed consolidated statement of operations and comprehensive loss have been translated using an average rate for the reporting period. All foreign currency balances in the balance sheet have been translated using the spot rate at the end of the reporting period. All figures expressed, except share amounts, are in U.S. dollars in millions. |
Use of estimates | The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates estimates, including those related to contingent assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, reinsurance recoverables on unpaid losses and valuation allowance on deferred tax assets. |
Deferred offering costs | The Company capitalized certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs were recorded as a reduction to the carrying value of stockholders' equity, as a reduction of additional paid-in capital generated as a result of such offering. On January 14, 2021, the Company completed a Follow-on Offering of common stock, as defined and discussed in detail in Note 10, which generated net proceeds of $525.7 million, after deducting underwriting discounts and offering costs. On February 1, 2021, the underwriters exercised their option to purchase additional shares, and generated additional net proceeds to the Company of $114.6 million. Deferred offering costs from the Follow-on Offering amounted to $0.4 million. |
Recently adopted accounting pronouncements | Leases In February 2016, the FASB issued Leases (Topic 842) ("ASU 2016-02"), as subsequently amended, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors), and replaces the existing guidance in ASC 840, Leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine the recognition pattern of lease expense over the term of the lease. In addition, a lessee is required to record (i) a right-of-use asset and a lease liability the balance sheet for all leases with accounting lease terms of more than 12 months regardless of whether it is an operating or financing lease, and (ii) lease expense for operating leases and amortization and interest expense for financing leases, in the statement of operations. Leases with a term of 12 months or less may be accounted for similar to existing guidance for operating leases under ASC 840. In July 2018, the FASB issued ASU 2018-11, Leases ("Topic 842"), which added an optional transition method that allows companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest comparative period presented. The Company adopted the new standard effective January 1, 2021, using the modified retrospective transition approach which uses the effective date as the date of initial application with no adjustment to prior periods presented. There was no adjustment to the opening balance of retained earnings, as a result of the adoption. At adoption date, the new standard resulted in the recognition of an operating lease Right-of-Use ("ROU") asset of $16.9 million included under Other Assets, and a corresponding operating lease liabilities of $17.2 million included in Other Liabilities on the consolidated balance sheets. The difference of $0.3 million between the operating lease ROU assets and operating lease liabilities represents reclassification of deferred rent liability (the difference between the straight-line rent expenses and paid rent amounts under the leases) to operating lease ROU assets from other liabilities at the adoption date. The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows. The adoption impact relates to the Company’s existing operating leases for office spaces in the US, Netherlands and Israel. The Company has elected to apply the package of practical expedients requiring no reassessment of whether any expired or existing contracts are or contain leases, the lease classification of any expired or existing leases, or the capitalization of initial direct costs for any existing leases. Additionally, the Company elected the practical expedients that permit the exclusions of leases considered to be short-term. Current Expected Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses ("Topic 326"): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 introduced a current expected credit loss ("CECL") model for measuring expected credit losses for certain types of financial instruments held at the reporting date requiring significant judgment in application based on historical experience, current conditions and reasonable supportable forecasts, but is not prescriptive about certain aspects of estimating expected losses. The guidance replaced the current incurred loss model for measuring expected credit losses and provided for additional disclosure requirements. Subsequently, the FASB issued additional ASUs on Topic 326 that did not change the core principle of the guidance in ASU 2016-13, but provided clarification and implementation guidance on certain aspects of ASU 2016-13, and have the same effective date and transition requirements as ASU 2016-13. The Company adopted the guidance using a modified retrospective approach as of January 1, 2021 which resulted in no cumulative-effect adjustment to retained earnings. The updated guidance in ASU 2016-13 also amended the previous other-than-temporary impairment (“OTTI”) model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the guidance related to available-for-sale fixed income securities on January 1, 2021 using a prospective transition approach for available-for-sale fixed income securities that were purchased with credit deterioration or had recognized an OTTI write-down prior to the effective date. The effect of the prospective transition approach was to maintain the same amortized cost basis before and after the effective date. |
Reclassification | Certain accounts in the prior period financial statements were reclassified to conform with the current period presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Cash and cash equivalents | The following represents the Company’s cash, cash equivalents and restricted cash as of September 30, 2022 and December 31, 2021: September 30, December 31, 2022 2021 Cash and cash equivalents $ 222.0 $ 270.6 Restricted cash 3.0 — Total cash, cash equivalents and restricted cash $ 225.0 $ 270.6 |
Restricted cash | The following represents the Company’s cash, cash equivalents and restricted cash as of September 30, 2022 and December 31, 2021: September 30, December 31, 2022 2021 Cash and cash equivalents $ 222.0 $ 270.6 Restricted cash 3.0 — Total cash, cash equivalents and restricted cash $ 225.0 $ 270.6 |
Acquisition of Metromile (Table
Acquisition of Metromile (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price for Acqusition | Fair value of consideration transferred for the Metromile Acquisition is as follows ($ in millions): Metromile issued and outstanding stock exchanged for Lemonade common stock (1) $ 136.9 Contingent consideration (2) — Metromile vested awards exchanged for Lemonade awards (3) 0.8 Total Purchase Consideration $ 137.7 (1) The fair value of 6,901,934 shares issued and exchanged for Lemonade common stock was determined based on the closing price at acquisition date of $19.84, and includes a minimal amount of cash paid in lieu of fractional shares. (2) Contingent consideration represents Metromile's contingently issuable shares that are convertible into Lemonade common stock in accordance with the exchange ratio as set forth in the merger agreement. In accordance with ASC 805-30-25-5, contingent consideration shall be recognized and measured at fair value as of the Acquisition Date. Given that the contingencies are not probable of being met within the contingency period, no fair value was assessed for these Metromile shares. (3) Fair value of replacement awards related to services rendered prior to the acquisition are included as part of purchase consideration. The unvested portion of fair value attributable to these replacement awards of $4.3 million comprised of $0.1 million for assumed options and $4.2 million for assumed restricted stock units ("RSUs"), and associated with future service will be recognized as expense over the future service period. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents the preliminary allocation of purchase consideration recorded on the condensed consolidated balance sheet as of the Acquisition Date ($ in millions): Assets acquired Fixed maturities, available for sale, at fair value $ 1.8 Short-term investments 64.2 Cash, cash equivalents and restricted cash 98.8 Premiums receivable 17.4 Reinsurance recoverable 14.5 Property and equipment 4.6 Value of business acquired ("VOBA") 1.7 Intangible assets - technology 28.0 Intangible assets - insurance licenses 7.5 Other assets 14.7 Total assets acquired $ 253.2 Liabilities assumed Unpaid loss and loss adjustment expenses $ 76.3 Unearned premium 15.1 Trade payables 0.8 Ceded premium payable 12.0 Other liabilities and accrued expenses 22.2 Total liabilities assumed $ 126.4 Total identifiable net assets acquired $ 126.8 Total purchase consideration $ 137.7 Goodwill $ 10.9 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The amounts, based on preliminary valuations and subject to final adjustment, allocated to intangible assets are as follows ($ in millions): Fair Value Weighted-Average Useful Life Technology $ 28.0 3 to 5 years Insurance licenses 7.5 N/A Total $ 35.5 |
Business Acquisition, Pro Forma Information | Unaudited Pro Forma: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Total Revenue $ 85.1 $ 64.2 $ 221.1 $ 159.1 Net loss $ (112.2) $ (90.6) $ (316.8) $ (344.7) |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and fair values | The following tables present cost or amortized cost and fair values of investment in fixed maturities as of September 30, 2022 and December 31, 2021 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses September 30, 2022 Corporate debt securities $ 597.3 $ — $ (24.5) $ 572.8 U.S. Government obligations 120.9 — (4.6) 116.3 Municipal securities 1.2 — — 1.2 Asset-backed securities 2.8 — — 2.8 Total $ 722.2 $ — $ (29.1) $ 693.1 December 31, 2021 Corporate debt securities $ 593.4 $ — $ (4.7) $ 588.7 U.S. Government obligations 102.2 0.1 (0.8) 101.5 Municipal securities 1.2 — — 1.2 Asset-backed securities — — — — Total $ 696.8 $ 0.1 $ (5.5) $ 691.4 |
Contractual maturities of bonds | The following table presents the cost or amortized cost and estimated fair value of investments in fixed maturities as of September 30, 2022 by contractual maturity ($ in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2022 Cost or Fair Value Due in one year or less $ 251.4 $ 246.1 Due after one year through five years 470.8 447.0 Due after five years through ten years — — Due after ten years — — Total $ 722.2 $ 693.1 |
Net investment income | An analysis of net investment income follows ($ in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Interest on cash and cash equivalents $ 0.3 $ 0.1 $ 0.4 $ 0.4 Fixed maturities 1.7 0.6 3.7 0.7 Short-term investments 0.7 — 0.9 — Total 2.7 0.7 5.0 1.1 Investment expense 0.1 0.1 0.3 0.1 Net investment income $ 2.6 $ 0.6 $ 4.7 $ 1.0 |
Aging of gross unrealized losses | The following table presents the gross unrealized losses and related fair values for the Company’s investment in fixed maturities, grouped by duration of time in a continuous unrealized loss position as of September 30, 2022 and December 31, 2021 ($ in millions): Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses September 30, 2022 Corporate debt securities $ 198.4 $ (7.0) $ 362.6 $ (17.5) $ 561.0 $ (24.5) U.S. Government obligations 36.8 (0.8) 79.3 (3.8) 116.1 (4.6) Municipal securities 0.6 — — — 0.6 — Asset-backed securities 2.8 — — — 2.8 — Total $ 238.6 $ (7.8) $ 441.9 $ (21.3) $ 680.5 $ (29.1) Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2021 Corporate debt securities $ 581.9 $ (4.7) $ — $ — $ 581.9 $ (4.7) U.S. Government obligations 95.0 (0.8) 0.5 — 95.5 (0.8) Municipal securities 1.2 — — — 1.2 — Asset-backed securities — — — — — — Total $ 678.1 $ (5.5) $ 0.5 $ — $ 678.6 $ (5.5) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities | The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of September 30, 2022 and December 31, 2021 ($ in millions): September 30, 2022 Level 1 Level 2 Level 3 Total Financial Assets: Corporate debt securities $ — $ 572.8 $ — $ 572.8 U.S. Government obligations — 116.3 — 116.3 Municipal securities — 1.2 — 1.2 Asset-backed securities — 2.8 — 2.8 Fixed maturities $ — $ 693.1 $ — $ 693.1 Short term investments — 142.8 — 142.8 Total $ — $ 835.9 $ — $ 835.9 Financial Liabilities: Warrant Liability $ — $ — $ 0.8 $ 0.8 December 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets: Corporate debt securities $ — $ 588.7 $ — $ 588.7 U.S. Government obligations — 101.5 — 101.5 Municipal securities — 1.2 — 1.2 Asset-backed securities — — — — Fixed maturities $ — $ 691.4 $ — 691.4 Short term investments — 110.4 — 110.4 Total $ — $ 801.8 $ — $ 801.8 Financial Liabilities: Warrant Liability $ — $ — $ — $ — |
Schedule of Warrant Liability | The following table below presents the change in fair value of the warrant liability ($ in millions): September 30, 2022 Balance as of January 1 $ — Initial measurement of warrants liability as of July 31, 2022 0.5 Change in fair value 0.3 Balance as of September 30 $ 0.8 |
Fair Value Measurement Inputs and Valuation Techniques | The Company utilized the binomial Monte-Carlo simulation to estimate the fair value of these warrants which are currently not actively traded as of reporting date, and are determined based on the following assumptions: September 30, 2022 Weighted average expected term (years) 3.36 Risk-free interest rate 4.2% Volatility 80% Expected dividend yield — |
Unpaid Loss and Loss Adjustme_2
Unpaid Loss and Loss Adjustment Expense (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Activity in the liability for unpaid loss and LAE | The following table presents the activity in the liability for unpaid loss and loss adjustment expense ("LAE") for the nine months ended September 30, 2022 and 2021 ($ in millions): Nine Months Ended 2022 2021 Unpaid loss and LAE at beginning of period $ 97.9 $ 46.3 Less: Reinsurance recoverable at beginning of period (1) 72.7 36.3 Net unpaid loss and LAE at beginning of period 25.2 10.0 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 106.9 47.3 Prior years (1.1) (0.3) Total incurred 105.8 47.0 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 65.9 32.3 Prior years 21.9 6.3 Total paid 87.8 38.6 Unpaid loss and LAE, net of reinsurance recoverable acquired from Metromile 68.1 — Unpaid loss and LAE, net of reinsurance recoverable, at end of period 111.3 18.4 Reinsurance recoverable at end of period (1) 109.3 55.6 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 220.6 $ 74.0 (1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE |
Other Liabilities and Accrued_2
Other Liabilities and Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities and accrued expenses | Other liabilities and accrued expenses as of September 30, 2022 and December 31, 2021 consist of the following ($ in millions): September 30, December 31, 2022 2021 Lease liabilities $ 36.6 $ 22.3 Employee compensation 11.7 5.4 Accrued advertising costs 8.6 11.2 Accrued professional fees 6.2 4.6 Premium taxes payable 5.0 5.4 Advance premium 2.7 2.0 Accrued hosting and software 1.7 0.6 Income tax payable 1.5 4.7 Accrued devices 1.0 — Warrant liability 0.8 — Other payables 14.5 1.2 Total $ 90.3 $ 57.4 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Fair value assumptions | The fair value of each option granted for the nine months ended September 30, 2022 and 2021 is estimated on the date of grant using the Black-Scholes model based on the following assumptions: Nine Months Ended September 30, 2022 2021 Weighted average expected term (years) 6.1 6.1 Risk-free interest rate 2.7% 1.3% Volatility 47% 49% Expected dividend yield 0% 0% |
Stock options activity | Stock options Number of Weighted- Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2021 6,573,744 $ 46.03 8.29 $ 85.86 Granted (1) 4,351,371 27.47 Exercised (404,133) 8.16 Cancelled (584,411) 50.66 Outstanding as of September 30, 2022 9,936,571 $ 39.39 8.44 $ 17.05 Options exercisable as of September 30, 2022 2,969,722 $ 27.51 6.88 $ 15.47 Options unvested as of September 30, 2022 6,966,849 $ 44.45 9.10 $ 1.58 (1) includes assumed options of 72,410 from the Metromile Acquisition (see Note 5) |
Restricted stock units activity | Restricted Stock Units Number of Shares Grant Date Outstanding as of December 31, 2021 335,814 $ 66.94 Granted (1) 1,743,224 22.59 Vested (153,283) 41.17 Cancelled (190,104) 27.88 Outstanding as of September 30, 2022 1,735,651 $ 28.38 (1) includes assumed restricted stock units of 331,797 from the Metromile Acquisition (see Note 5) |
Stock-based compensation expense | Stock-based compensation expense from stock options and RSUs granted are included and classified in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021, including assumed awards from the Metromile Acquisition for the three and nine months ended September 30, 2022, as follows ($ in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Loss and loss adjustment expense, net $ 0.7 $ 0.3 $ 1.9 $ 1.0 Other insurance expense 0.4 0.4 1.2 0.8 Sales and marketing 1.8 1.4 5.0 3.8 Technology development 6.4 5.3 17.6 12.8 General and administrative 6.3 5.3 17.9 12.3 Total stock-based compensation expense $ 15.6 $ 12.7 $ 43.6 $ 30.7 Stock-based compensation expense classified by award type as included in the condensed consolidated statements of operations is as follows ($ in millions): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock options $ 11.9 $ 12.0 $ 35.9 $ 28.0 RSUs 3.7 0.7 7.7 2.7 Total stock-based compensation expense $ 15.6 $ 12.7 $ 43.6 $ 30.7 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Basic and diluted net loss per share | Basic and diluted net loss per share attributable to common stockholders was calculated as follows : Three Months Ended Nine Months Ended 2022 2021 2022 2021 Numerator: Net loss attributable to common stockholders ($ in millions) $ (91.4) $ (66.4) $ (234.1) $ (171.0) Denominator: Weighted average common shares outstanding — basic and diluted 66,877,100 61,580,145 63,482,945 61,086,238 Net loss per share attributable to common stockholders — basic and diluted $ (1.37) $ (1.08) $ (3.69) $ (2.80) |
Antidilutive potential common shares | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect. Nine Months Ended 2022 2021 Options to purchase common stock 9,936,571 6,032,798 Unvested restricted stock 1,735,651 130,241 Warrants for common stock (1) 412,969 — Total 12,085,191 6,163,039 (1) Each outstanding warrant of Metromile assumed by the Company are converted automatically into warrants denominated in the Company's common stock with the number of warrants and exercise price adjusted based on the exchange ratio of 0.05263 |
Geographical Breakdown of Gro_2
Geographical Breakdown of Gross Written Premium (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Gross written premium by state | The Company has a single reportable segment and offers insurance coverage under the homeowners multi-peril, inland marine, general liability and private passenger auto lines of business. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Jurisdiction Amount % of GWP Amount % of GWP Amount % of GWP Amount % of GWP California $ 45.9 26.4 % $ 29.0 24.8 % $ 101.3 24.7 % $ 70.4 25.0 % Texas 26.6 15.3 % 21.7 18.6 % 70.9 17.3 % 55.4 19.6 % New York 19.1 11.0 % 14.3 12.2 % 49.8 12.1 % 35.2 12.5 % New Jersey 8.9 5.1 % 5.3 4.5 % 20.1 4.9 % 12.1 4.3 % Illinois 8.8 5.1 % 5.0 4.3 % 19.8 4.8 % 12.1 4.3 % Georgia 6.1 3.5 % 4.9 4.2 % 15.5 3.8 % 12.9 4.6 % Colorado 4.9 2.8 % 3.1 2.7 % 11.8 2.9 % 6.5 2.3 % Pennsylvania 4.8 2.8 % 3.3 2.8 % 10.7 2.6 % 7.4 2.6 % Washington 5.6 3.2 % 1.8 1.5 % 10.0 2.4 % 3.9 1.4 % Virginia 4.4 2.5 % 2.6 2.2 % 9.5 2.3 % 6.0 2.1 % All other 38.9 22.3 % 25.8 22.2 % 91.3 22.2 % 60.2 21.3 % $ 174.0 100.0 % $ 116.8 100.0 % $ 410.7 100.0 % $ 282.1 100.0 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash, cash equivalents and restricted cash | $ 222 | $ 270.6 | ||
Restricted cash | 3 | 0 | ||
Total cash, cash equivalents and restricted cash | $ 225 | $ 270.6 | $ 319.6 | $ 571.4 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Feb. 01, 2021 | Jan. 14, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 |
Sale of Stock [Line Items] | |||||
Offering costs | $ 0.4 | ||||
Lease liabilities | $ 36.6 | $ 22.3 | |||
Accounting Standards Update 2016-02 | |||||
Sale of Stock [Line Items] | |||||
Right-of-use asset | $ 16.9 | ||||
Lease liabilities | 17.2 | ||||
Deferred rent credit | $ (0.3) | ||||
Public Stock Offering | |||||
Sale of Stock [Line Items] | |||||
Net proceeds from sale | $ 525.7 | ||||
Underwriter's option | |||||
Sale of Stock [Line Items] | |||||
Net proceeds from sale | $ 114.6 | $ 114.6 |
Acquisition of Metromile - Addi
Acquisition of Metromile - Additional Information (Details) - Metromile $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 28, 2022 shares | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||
Percent of equity acquired | 100% | |||||
Conversion ratio | 0.05263 | |||||
Shares issued for acquisition (in shares) | shares | 6,901,934 | |||||
Business acquisition, pro forma revenue | $ 15.1 | $ 85.1 | $ 64.2 | $ 221.1 | $ 159.1 | |
Net loss | $ 20.7 | (112.2) | $ (90.6) | (316.8) | $ (344.7) | |
Transaction expenses | $ 7.4 | $ 8.4 |
Acquisition of Metromile - Sche
Acquisition of Metromile - Schedule of Fair Value of Consideration Transferred (Details) - Metromile $ / shares in Units, $ in Millions | Jul. 28, 2022 USD ($) $ / shares shares |
Business Acquisition [Line Items] | |
Metromile issued and outstanding stock exchanged for Lemonade common stock | $ 136.9 |
Contingent consideration | 0 |
Metromile vested awards exchanged for Lemonade awards | 0.8 |
Total Purchase Consideration | $ 137.7 |
Shares issued for acquisition (in shares) | shares | 6,901,934 |
Business acquisition, share price (usd per share) | $ / shares | $ 19.84 |
Remaining replacement awards, fair value | $ 4.3 |
Options to purchase common stock | |
Business Acquisition [Line Items] | |
Remaining replacement awards, fair value | 0.1 |
RSUs | |
Business Acquisition [Line Items] | |
Remaining replacement awards, fair value | $ 4.2 |
Acquisition of Metromile - Sc_2
Acquisition of Metromile - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jul. 28, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Liabilities assumed | |||
Goodwill | $ 10.9 | $ 0 | |
Metromile | |||
Assets acquired | |||
Fixed maturities, available for sale, at fair value | $ 1.8 | ||
Short-term investments | 64.2 | ||
Cash, cash equivalents and restricted cash | 98.8 | ||
Premiums receivable | 17.4 | ||
Reinsurance recoverable | 14.5 | ||
Property and equipment | 4.6 | ||
Value of business acquired ("VOBA") | 1.7 | ||
Other assets | 14.7 | ||
Total assets acquired | 253.2 | ||
Liabilities assumed | |||
Unpaid loss and loss adjustment expenses | 76.3 | ||
Unearned premium | 15.1 | ||
Trade payables | 0.8 | ||
Ceded premium payable | 12 | ||
Other liabilities and accrued expenses | 22.2 | ||
Total liabilities assumed | 126.4 | ||
Total identifiable net assets acquired | 126.8 | ||
Total Purchase Consideration | 137.7 | ||
Goodwill | 10.9 | ||
Metromile | Technology | |||
Assets acquired | |||
Intangible asset | 28 | ||
Metromile | Insurance licenses | |||
Assets acquired | |||
Intangible asset | $ 7.5 |
Acquisition of Metromile - Busi
Acquisition of Metromile - Business Combinations and Asset Acquisitions (Details) - Metromile $ in Millions | Jul. 28, 2022 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 35.5 |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 28 |
Technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Life | 3 years |
Technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Life | 5 years |
Insurance licenses | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 7.5 |
Acquisition of Metromile - Bu_2
Acquisition of Metromile - Business Combinations and Asset Acquisitions (Details) - Metromile - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | |||||
Total Revenue | $ 15.1 | $ 85.1 | $ 64.2 | $ 221.1 | $ 159.1 |
Net loss | $ 20.7 | $ (112.2) | $ (90.6) | $ (316.8) | $ (344.7) |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Values (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 722.2 | $ 696.8 |
Gross unrealized gains | 0 | 0.1 |
Gross unrealized losses | (29.1) | (5.5) |
Fair Value | 693.1 | 691.4 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 597.3 | 593.4 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (24.5) | (4.7) |
Fair Value | 572.8 | 588.7 |
U.S. Government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 120.9 | 102.2 |
Gross unrealized gains | 0 | 0.1 |
Gross unrealized losses | (4.6) | (0.8) |
Fair Value | 116.3 | 101.5 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 1.2 | 1.2 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair Value | 1.2 | 1.2 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 2.8 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair Value | $ 2.8 | $ 0 |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) security | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) security | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||||
Gross unrealized losses | $ 29.1 | $ 29.1 | $ 5.5 | ||
Realized investment losses | $ 0 | $ 0 | $ 0.4 | $ 0 | |
Number of debt securities held, unrealized loss position | security | 294 | 294 | |||
Financing receivable, allowance for credit loss | $ 0 | $ 0 | |||
Gross unrealized losses, twelve months or more (less than) | $ 21.3 | $ 21.3 | $ 0 |
Investments - Contractual Matur
Investments - Contractual Maturities of Bonds (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Cost or Amortized Cost | ||
Due in one year or less | $ 251.4 | |
Due after one year through five years | 470.8 | |
Due after five years through ten years | 0 | |
Due after ten years | 0 | |
Cost or Amortized Cost | 722.2 | $ 696.8 |
Fair Value | ||
Due in one year or less | 246.1 | |
Due after one year through five years | 447 | |
Due after five years through ten years | 0 | |
Due after ten years | 0 | |
Fair Value | $ 693.1 | $ 691.4 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 2.7 | $ 0.7 | $ 5 | $ 1.1 |
Investment expense | 0.1 | 0.1 | 0.3 | 0.1 |
Net investment income | 2.6 | 0.6 | 4.7 | 1 |
Interest on cash and cash equivalents | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 0.3 | 0.1 | 0.4 | 0.4 |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 1.7 | 0.6 | 3.7 | 0.7 |
Short-term investments | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ 0.7 | $ 0 | $ 0.9 | $ 0 |
Investments - Aging Of Gross Un
Investments - Aging Of Gross Unrealized Losses (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than 12 Months | $ 238.6 | $ 678.1 |
12 Months or More | 441.9 | 0.5 |
Fair Value | 680.5 | 678.6 |
Gross Unrealized Losses | ||
Less than 12 Months | (7.8) | (5.5) |
12 Months or More | (21.3) | 0 |
Gross Unrealized Losses | (29.1) | (5.5) |
Corporate debt securities | ||
Fair Value | ||
Less than 12 Months | 198.4 | 581.9 |
12 Months or More | 362.6 | 0 |
Fair Value | 561 | 581.9 |
Gross Unrealized Losses | ||
Less than 12 Months | (7) | (4.7) |
12 Months or More | (17.5) | 0 |
Gross Unrealized Losses | (24.5) | (4.7) |
U.S. Government obligations | ||
Fair Value | ||
Less than 12 Months | 36.8 | 95 |
12 Months or More | 79.3 | 0.5 |
Fair Value | 116.1 | 95.5 |
Gross Unrealized Losses | ||
Less than 12 Months | (0.8) | (0.8) |
12 Months or More | (3.8) | 0 |
Gross Unrealized Losses | (4.6) | (0.8) |
Municipal securities | ||
Fair Value | ||
Less than 12 Months | 0.6 | 1.2 |
12 Months or More | 0 | 0 |
Fair Value | 0.6 | 1.2 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Asset-backed securities | ||
Fair Value | ||
Less than 12 Months | 2.8 | 0 |
12 Months or More | 0 | 0 |
Fair Value | 2.8 | 0 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Gross Unrealized Losses | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy for Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 693.1 | $ 691.4 |
Short term investments | 142.8 | 110.4 |
Financial Assets: | 835.9 | 801.8 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 572.8 | 588.7 |
U.S. Government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 116.3 | 101.5 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1.2 | 1.2 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2.8 | 0 |
Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0.8 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Short term investments | 0 | 0 |
Financial Assets: | 0 | 0 |
Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Level 1 | U.S. Government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Level 1 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Level 1 | Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 693.1 | 691.4 |
Short term investments | 142.8 | 110.4 |
Financial Assets: | 835.9 | 801.8 |
Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 572.8 | 588.7 |
Level 2 | U.S. Government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 116.3 | 101.5 |
Level 2 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1.2 | 1.2 |
Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2.8 | 0 |
Level 2 | Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Short term investments | 0 | 0 |
Financial Assets: | 0 | 0 |
Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Level 3 | U.S. Government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Level 3 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Level 3 | Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | $ 0.8 | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Assumptions (Details) - Warrant Liability | Sep. 30, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average expected term (years) | 3 years 4 months 9 days |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 0.042 |
Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 0.80 |
Expected dividend yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value of Warrant (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Warrants Roll Forward [Abstract] | |
Warrants beginning balance | $ 0 |
Initial measurement of warrants liability as of July 31, 2022 | 0.5 |
Change in fair value | 0.3 |
Warrants ending balance | $ 0.8 |
Unpaid Loss and Loss Adjustme_3
Unpaid Loss and Loss Adjustment Expense - Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Unpaid loss and LAE at beginning of period | $ 97.9 | $ 46.3 | ||
Less: Reinsurance recoverable at beginning of period | 72.7 | 36.3 | ||
Net unpaid loss and LAE at beginning of period | 25.2 | 10 | ||
Add: Incurred loss and LAE, net of reinsurance, related to: | ||||
Current year | 106.9 | 47.3 | ||
Prior years | (1.1) | (0.3) | ||
Total incurred | $ 53.3 | $ 17.5 | 105.8 | 47 |
Deduct: Paid loss and LAE, net of reinsurance, related to: | ||||
Current year | 65.9 | 32.3 | ||
Prior years | 21.9 | 6.3 | ||
Total paid | 87.8 | 38.6 | ||
Unpaid loss and LAE, net of reinsurance recoverable acquired from Metromile | 111.3 | 18.4 | 111.3 | 18.4 |
Unpaid loss and LAE, net of reinsurance recoverable, at end of period | 111.3 | 18.4 | 111.3 | 18.4 |
Reinsurance recoverable at end of period | 109.3 | 55.6 | 109.3 | 55.6 |
Unpaid loss and LAE, gross of reinsurance recoverable, at end of period | 220.6 | 74 | 220.6 | 74 |
Metromile | ||||
Deduct: Paid loss and LAE, net of reinsurance, related to: | ||||
Unpaid loss and LAE, net of reinsurance recoverable acquired from Metromile | 68.1 | 0 | 68.1 | 0 |
Unpaid loss and LAE, net of reinsurance recoverable, at end of period | $ 68.1 | $ 0 | $ 68.1 | $ 0 |
Unpaid Loss and Loss Adjustme_4
Unpaid Loss and Loss Adjustment Expense - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Effects of Reinsurance [Line Items] | ||||
Favorable development on net loss and LAE reserves | $ (1.1) | $ (0.3) | ||
Current accident year incurred loss and LAE | 106.9 | 47.3 | ||
Reinsurance program, minimum losses threshold | $ 80 | |||
Reinsurance Contract [Axis]: Non-Proportional Reinsurance Contracts | ||||
Effects of Reinsurance [Line Items] | ||||
Percent of contracts subject to participation through reinsurance | 25% | |||
Reinsurance Contract [Axis]: Premiums and Losses to Reinsurers | ||||
Effects of Reinsurance [Line Items] | ||||
Percent of contracts subject to participation through reinsurance | 30% | |||
Reinsurance Contract [Axis]: Proportional Reinsurance Contracts | ||||
Effects of Reinsurance [Line Items] | ||||
Percent of contracts subject to participation through reinsurance | 55% | 75% | ||
Ceded commission percentage | 25% | |||
Claims funding percentage | 75% | |||
Hurricane Ian | ||||
Effects of Reinsurance [Line Items] | ||||
Current accident year incurred loss and LAE | $ 2.2 | |||
Winter Storm Uri | ||||
Effects of Reinsurance [Line Items] | ||||
Current accident year incurred loss and LAE | $ 6.2 |
Other Liabilities and Accrued_3
Other Liabilities and Accrued Expenses (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Lease liabilities | $ 36.6 | $ 22.3 |
Employee compensation | 11.7 | 5.4 |
Accrued advertising costs | 8.6 | 11.2 |
Accrued professional fees | 6.2 | 4.6 |
Premium taxes payable | 5 | 5.4 |
Advance premium | 2.7 | 2 |
Accrued hosting and software | 1.7 | 0.6 |
Income tax payable | 1.5 | 4.7 |
Accrued devices | 1 | 0 |
Warrant liability | 0.8 | 0 |
Other payables | 14.5 | 1.2 |
Total | $ 90.3 | $ 57.4 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Feb. 01, 2021 | Jan. 14, 2021 | Sep. 30, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | Jul. 07, 2020 | |
Sale of Stock [Line Items] | ||||||
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 | 200,000,000 | |||
Common stock, par value (usd per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock, par value (usd per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Preferred stock, issued (in shares) | 0 | 0 | ||||
Preferred stock, outstanding (in shares) | 0 | 0 | ||||
The Lemonade Foundation | Affiliated entity | ||||||
Sale of Stock [Line Items] | ||||||
Contribution to the Lemonade Foundation (in shares) | 500,000 | 500,000 | ||||
Follow On Offering | ||||||
Sale of Stock [Line Items] | ||||||
Common stock sold (in shares) | 3,300,000 | |||||
Net proceeds from sale | $ 525.7 | |||||
Follow On Offering, Selling Shareholders | ||||||
Sale of Stock [Line Items] | ||||||
Common stock sold (in shares) | 1,524,314 | |||||
Follow On Offering, Selling Shareholders | The Lemonade Foundation | ||||||
Sale of Stock [Line Items] | ||||||
Common stock sold (in shares) | 100,000 | |||||
Underwriter's option | ||||||
Sale of Stock [Line Items] | ||||||
Common stock sold (in shares) | 718,647 | |||||
Net proceeds from sale | $ 114.6 | $ 114.6 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Jan. 01, 2022 | Jul. 02, 2020 | Sep. 30, 2022 | Jul. 31, 2015 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized expense, stock options | $ 109.9 | |||
Unrecognized expense, period for recognition | 1 year 6 months | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized expense, RSUs | $ 46.2 | |||
Unrecognized expense, period for recognition | 1 year 8 months 12 days | |||
2020 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance (in shares) | 5,503,678 | |||
Common stock reserved for issuance, annual increase, percentage of outstanding shares | 5% | 5% | ||
Maximum shares that may be issued upon exercise of incentive stock options (in shares) | 3,650,000 | |||
Additional shares authorized (in shares) | 3,083,050 | |||
Common stock available for grant (in shares) | 3,109,188 | |||
2020 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance (in shares) | 1,000,000 | |||
Common stock reserved for issuance, annual increase, percentage of outstanding shares | 1% | |||
Common stock available for grant (in shares) | 0 | |||
Number of shares available for issuance, annual increase (in shares) | 1,000,000 | |||
2015 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance (in shares) | 7,312,590 | |||
Common stock available for grant (in shares) | 0 | |||
2015 Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Expiration period | 10 years | |||
Incentive Stock Plan 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation equity awards granted (in shares) | 404,207 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value Assumptions (Details) - Stock options | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Risk-free interest rate | 2.70% | 1.30% |
Volatility | 47% | 49% |
Expected dividend yield | 0% | 0% |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Options Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Number of Options | ||
Outstanding (in shares) | 6,573,744 | |
Granted (in shares) | 4,351,371 | |
Exercised (in shares) | (404,133) | |
Cancelled (in shares) | (584,411) | |
Outstanding (in shares) | 9,936,571 | 6,573,744 |
Exercisable (in shares) | 2,969,722 | |
Unvested (in shares) | 6,966,849 | |
Weighted- Average Exercise Price | ||
Outstanding (usd per share) | $ / shares | $ 46.03 | |
Granted (usd per share) | $ / shares | 27.47 | |
Exercised (usd per share) | $ / shares | 8.16 | |
Cancelled (usd per share) | $ / shares | 50.66 | |
Outstanding (usd per share) | $ / shares | 39.39 | $ 46.03 |
Exercisable, weighted-average exercise price (usd per share) | $ / shares | 27.51 | |
Unvested, weighted-average exercise price (usd per share) | $ / shares | $ 44.45 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted-average remaining contractual, term | 8 years 5 months 8 days | 8 years 3 months 14 days |
Exercisable, weighted-average remaining contractual, term | 6 years 10 months 17 days | |
Unvested, weighted-average remaining contractual, term | 9 years 1 month 6 days | |
Outstanding, aggregate intrinsic value, outstanding | $ | $ 17,050 | $ 85,860 |
Exercisable, aggregate intrinsic value | $ | 15,470 | |
Unvested, aggregate intrinsic value | $ | $ 1,580 | |
Assumed from acquisition (in shares) | 72,410 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Units Activity (Details) - RSUs | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Number of Shares | |
Outstanding (in shares) | 335,814 |
Granted (in shares) | 1,743,224 |
Vested (in shares) | (153,283) |
Cancelled (in shares) | (190,104) |
Outstanding (in shares) | 1,735,651 |
Grant Date Fair Value | |
Outstanding (usd per share) | $ / shares | $ 66.94 |
Granted (usd per share) | $ / shares | 22.59 |
Vested (usd per share) | $ / shares | 41.17 |
Cancelled (usd per share) | $ / shares | 27.88 |
Outstanding (usd per share) | $ / shares | $ 28.38 |
Assumed (in shares) | 331,797 |
Stock-based Compensation - Expe
Stock-based Compensation - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 15.6 | $ 12.7 | $ 43.6 | $ 30.7 |
Options to purchase common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 11.9 | 12 | 35.9 | 28 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 3.7 | 0.7 | 7.7 | 2.7 |
Loss and loss adjustment expense, net | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0.7 | 0.3 | 1.9 | 1 |
Other insurance expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0.4 | 0.4 | 1.2 | 0.8 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1.8 | 1.4 | 5 | 3.8 |
Technology development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 6.4 | 5.3 | 17.6 | 12.8 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6.3 | $ 5.3 | $ 17.9 | $ 12.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | (3.20%) | (3.50%) |
Unrecognized tax benefits | $ 6,800,000 | $ 0 |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 0 | $ 0 |
Net Loss Per Share - Reconcilia
Net Loss Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net loss attributable to common stockholders - basic | $ (91.4) | $ (66.4) | $ (234.1) | $ (171) |
Net loss attributable to common stockholders - diluted | $ (91.4) | $ (66.4) | $ (234.1) | $ (171) |
Denominator: | ||||
Weighted average common shares outstanding—basic (in shares) | 66,877,100 | 61,580,145 | 63,482,945 | 61,086,238 |
Weighted average common shares outstanding—diluted (in shares) | 66,877,100 | 61,580,145 | 63,482,945 | 61,086,238 |
Net loss per share attributable to common stockholders—basic (usd per share) | $ (1.37) | $ (1.08) | $ (3.69) | $ (2.80) |
Net loss per share attributable to common stockholders—diluted (usd per share) | $ (1.37) | $ (1.08) | $ (3.69) | $ (2.80) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Potential Common Shares (Details) | 9 Months Ended | ||
Jul. 28, 2022 | Sep. 30, 2022 shares | Sep. 30, 2021 shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive potential common stock (in shares) | 12,085,191 | 6,163,039 | |
Metromile | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Conversion ratio | 0.05263 | ||
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive potential common stock (in shares) | 9,936,571 | 6,032,798 | |
Unvested restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive potential common stock (in shares) | 1,735,651 | 130,241 | |
Warrants for common stock (1) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive potential common stock (in shares) | 412,969 | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 14, 2021 shares | Sep. 30, 2022 USD ($) director | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) director $ / shares shares | Sep. 30, 2021 USD ($) | Dec. 31, 2020 shares | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | |||||||
Due to (from) related parties | $ 0 | $ 0 | $ 0 | ||||
Follow On Offering, Selling Shareholders | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock sold (in shares) | shares | 1,524,314 | ||||||
The Lemonade Foundation | Follow On Offering, Selling Shareholders | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock sold (in shares) | shares | 100,000 | ||||||
Affiliated entity | The Lemonade Foundation | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shared directors | director | 2 | 2 | |||||
Contribution to the Lemonade Foundation (in shares) | shares | 500,000 | 500,000 | |||||
Contribution of common stock to related party, fair value (usd per share) | $ / shares | $ 24.36 | ||||||
Due from related party | $ 0 | $ 0 | |||||
Travel related expenses | Key stockholder | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses with related parties (less than) | 100,000 | $ 100,000 | 100,000 | $ 100,000 | |||
Rental expense | Affiliated entity | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses with related parties (less than) | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Geographical Breakdown of Gro_3
Geographical Breakdown of Gross Written Premium (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 174 | $ 116.8 | $ 410.7 | $ 282.1 |
Number of reportable segments | segment | 1 | |||
Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 100% | 100% | 100% | 100% |
California | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 45.9 | $ 29 | $ 101.3 | $ 70.4 |
California | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 26.40% | 24.80% | 24.70% | 25% |
Texas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 26.6 | $ 21.7 | $ 70.9 | $ 55.4 |
Texas | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 15.30% | 18.60% | 17.30% | 19.60% |
New York | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 19.1 | $ 14.3 | $ 49.8 | $ 35.2 |
New York | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 11% | 12.20% | 12.10% | 12.50% |
New Jersey | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 8.9 | $ 5.3 | $ 20.1 | $ 12.1 |
New Jersey | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 5.10% | 4.50% | 4.90% | 4.30% |
Illinois | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 8.8 | $ 5 | $ 19.8 | $ 12.1 |
Illinois | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 5.10% | 4.30% | 4.80% | 4.30% |
Georgia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 6.1 | $ 4.9 | $ 15.5 | $ 12.9 |
Georgia | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 3.50% | 4.20% | 3.80% | 4.60% |
Colorado | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 4.9 | $ 3.1 | $ 11.8 | $ 6.5 |
Colorado | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 2.80% | 2.70% | 2.90% | 2.30% |
Pennsylvania | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 4.8 | $ 3.3 | $ 10.7 | $ 7.4 |
Pennsylvania | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 2.80% | 2.80% | 2.60% | 2.60% |
Washington | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 5.6 | $ 1.8 | $ 10 | $ 3.9 |
Washington | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 3.20% | 1.50% | 2.40% | 1.40% |
Virginia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 4.4 | $ 2.6 | $ 9.5 | $ 6 |
Virginia | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 2.50% | 2.20% | 2.30% | 2.10% |
All other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Amount | $ 38.9 | $ 25.8 | $ 91.3 | $ 60.2 |
All other | Gross written premium | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
% of GWP | 22.30% | 22.20% | 22.20% | 21.30% |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent event - Omnibus Agreement | Oct. 14, 2022 $ / shares shares |
Subsequent Event [Line Items] | |
Class of warrant issued of common stock (in shares) | shares | 3,352,025 |
Class of warrant common stock exercise price (usd per share) | $ / shares | $ 0.01 |