Lemonade Completes Acquisition of Metromile
July 28 2022 - 8:55AM
Business Wire
In return for under $145 million in stock,
Lemonade receives over $155 million in cash, over $110 million in
car premiums, an insurance entity with 49 state licenses, and
precision data from 500 million car trips
Lemonade (NYSE: LMND), the insurance company powered by AI and
social impact, today announced the closing of the acquisition of
car insurance provider Metromile. Metromile shareholders received
7.3 million LMND shares, while Lemonade received a business with
over $155m in cash, over $110m in premiums, an insurance entity
licensed in 49 states, and a team unsurpassed in harnessing
precision data for auto insurance.
“We launched Lemonade Car a few months ago, and believe it’s the
most delightful product on the market. We also believe auto
insurance is challenging for newcomers and disadvantaged by a lack
of data which is why we bought Metromile,” said Shai Wininger,
Lemonade co-CEO and cofounder. “For ten years, Metromile’s
intricate sensors monitored billions of miles of driving, while
their AI cross-referenced this data with hundreds of thousands of
claims, to accurately score each tap of the brake and turn of the
wheel. We believe that adding these models into the Lemonade Car
platform will make the most delightful car insurance also the most
competitive, precise, and fair. That’s why we’re so excited to
welcome Metromile into the Lemonade family.”
Most Metromile employees will transition to roles at Lemonade,
and Metromile CEO, Dan Preston, has assumed the role of Senior Vice
President of Strategic Initiatives.
“It’s hard to imagine a better home for Metromile than Lemonade.
While Metromile was at the forefront of using big data and AI in
car insurance, Lemonade forged a parallel path for several
complementary lines of insurance. That makes for a powerful
combination,” said Dan Preston, SVP Strategic Initiatives,
Lemonade. “The upshot is that Metromile’s mission to connect the
world to personalized insurance receives a big boost today. While
the Metromile brand will sunset over time, its promise to consumers
will be realized bigger, better, and sooner now that we’ve joined
forces.”
The Metromile app and brand will continue in-market until all
customers can be seamlessly transitioned to the Lemonade app and
brand. Metromile common stock will cease trading on NASDAQ
today.
About Lemonade Lemonade offers renters, homeowners, car,
pet, and life insurance. Powered by artificial intelligence and
social impact, Lemonade’s full stack insurance carriers in the US
and the EU replace brokers and bureaucracy with bots and machine
learning, aiming for zero paperwork and instant everything. A
Certified B-Corp, Lemonade gives unused premiums to nonprofits
selected by its community, during its annual Giveback. Lemonade is
currently available in the United States, Germany, the Netherlands,
and France, and continues to expand globally.
Follow @lemonade_inc on Twitter for updates.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements including with respect to the
anticipated impact of the Metromile transaction. These statements
are neither promises nor guarantees, but involve known and unknown
risks, uncertainties and other important factors that may cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements, including,
but not limited to, the following: Our history of losses and the
fact that we may not achieve or maintain profitability in the
future; our ability to retain and expand our customer base; the
fact that the “Lemonade” brand may not become as widely known as
incumbents’ brands or the brand may become tarnished; the denial of
claims or our failure to accurately and timely pay claims; our
ability to attain greater value from each user; the novelty of our
business model and its unpredictable efficacy and susceptibility to
unintended consequences; the possibility that we could be forced to
modify or eliminate our Giveback, which could undermine our
business model; the examinations and other targeted investigations
by our primary and other state insurance regulators that could
result in adverse examination findings and necessitate remedial
actions; our limited operating history; our ability to manage our
growth effectively; the impact of intense competition in the
segments of the insurance industry in which we operate on our
ability to attain or increase profitability; the unavailability of
reinsurance at current levels and prices, which could limit our
ability to write new business; our ability to renew reinsurance
contracts on comparable duration and terms to those currently in
effect; our exposure to counterparty risks as a result of
reinsurance; the loss of personal customer information, damage to
our reputation and brand, or harm to our business and operating
results as a result of security incidents or real or perceived
errors, failures or bugs in our systems, website or app; our actual
or perceived failure to protect customer information and other
data, respect customers’ privacy, or comply with data privacy and
security laws and regulations; our ability to comply with extensive
insurance industry regulations and the need to incur additional
costs or devote additional resources to comply with changes to
existing regulations; our exposure to additional regulatory
requirements specific to other vertical markets that we enter or
have entered, including auto, pet and life insurance, and the need
to devote additional resources to comply with these regulations;
the ability of Lemonade to successfully integrate Metromile’s
operations, product lines and technology; the ability of Lemonade
to implement its plans, forecasts and other expectations with
respect to Metromile’s business after the completion of the
transaction and realize additional opportunities for growth and
innovation; the ability of Lemonade to realize the anticipated
synergies from the proposed transaction in the anticipated amounts
or within the anticipated timeframes or costs expectations or at
all; the ability to maintain relationships with Lemonade’s and
Metromile’s respective employees, customers, other business
partners and governmental authorities; and the other risks,
uncertainties and important factors contained and identified; and
our inability to predict the lasting impacts of COVID-19 to our
business in particular, and the global economy generally. These and
other important factors are discussed under the caption “Risk
Factors” in our Form 10-K filed with the SEC on March 1, 2022 and
in our other filings with the SEC could cause actual results to
differ materially from those indicated by the forward-looking
statements made in this press release. Any such forward-looking
statements represent management’s beliefs as of the date of this
press release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change.
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Lisa Horton lisa@astrskpr.com 845-467-3286
Lemonade (NYSE:LMND)
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