Lemonade has announced the renewal of its global reinsurance program, effective July 1. As part of the update, the company will reduce the proportion of premiums ceded under its quota share reinsurance agreements from approximately 55% to 20%.
The decision comes amid what the company describes as improvements in underwriting capabilities, risk diversification, and loss ratio performance. The reinsurance structure continues to apply to all of Lemonade’s business segments worldwide, and the lineup of primary quota share partners remains unchanged.
The variable ceding commission under the renewed agreements is expected to remain consistent with the terms of the previous program.
Shai Wininger (pictured above), Lemonade’s president and co-founder, said the company has been reducing reinsurance overhead as its technology-driven underwriting and pricing systems have evolved.
“Reinsurance comes at a cost, and thanks to years of steady improvements, we’re now in a position to retain more of the risk ourselves, improve margins, and stay capital-light – all while continuing to work with some of the world’s top reinsurers,” Wininger said.
Lemonade also plans to renew its other reinsurance arrangements, including its Property Per Risk (PPR) program, with terms similar to those of expiring agreements. The renewed program is set to run for a standard 12-month period.
Last year, the program core of Lemonade’s reinsurance program was 55% quota share protection, consistent with recent years. The variable ceding commissions are expected to be roughly equivalent or better than those under the previous agreements.
The reinsurance update follows the company’s recent first-quarter 2025 results, which showed a gross profit of US$39 million, up 11% year over year. Despite this gain, Lemonade reported a net loss of US$62.4 million for the quarter. The financials reflect continued investment in growth initiatives as well as exposure to loss events during the period.
The company’s in-force premium (IFP) reached US$1.01 billion during Q1, a 27% increase from the prior year.
Lemonade’s adjusted EBITDA loss for the first quarter was US$47 million, including an estimated US$22 million adverse impact from the California wildfires. The company has cited catastrophe events as a factor influencing quarterly volatility.
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