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Net Loss Ratio
Shows claims and related costs as a percentage of earned premiums after reinsurance and adjustments; a lower ratio indicates healthier underwriting, while rising ratios signal claim pressure, pricing risk, or catastrophe exposure that can erode profitability.Lemonade’s net loss ratio has meaningfully normalized from earlier volatility, driven by tighter underwriting, AI automation that cuts LAE, and a cleaner book mix — a core reason gross profit and adjusted EBITDA have improved. Management’s reinsurance retention shift and higher organic retention will boost reported revenue but could temporarily lift the loss ratio as the company takes on more risk; watch upcoming quarters for whether underwriting discipline and automation can sustain these lower loss outcomes at scale amid seasonal/cat event risk.
Date | Net Loss Ratio |
|---|---|
Jun 30, 2026 | 61.00 |
Mar 31, 2026 | 63.00 |
Dec 31, 2025 | 53.00 |
Sep 30, 2025 | 64.00 |
Jun 30, 2025 | 69.00 |
Mar 31, 2025 | 82.00 |
Dec 31, 2024 | 62.00 |
Sep 30, 2024 | 81.00 |
Jun 30, 2024 | 79.00 |
Mar 31, 2024 | 78.00 |