Lemonade narrows Q1 loss 43% on improved underwriting; tariff risks and reinsurance shift disclosed

Filed April 30, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 6, 2025 · ~2 min read

Key Changes

• high

  Net loss improved 43% to $35.8M as loss ratios dropped 16 points (gross 62%, net 63%) driven by reserve releases and absence of prior-year wildfire losses. Gross profit more than doubled to $100M.

  MD&A: Financial Performance verify on EDGAR →
• high

  Company cut reinsurance cession rate from 55% to 20% effective July 2025, retaining 80% of premium and loss exposure versus 45% previously. Increases capital needs and earnings volatility but reduces reinsurance costs.

  MD&A: Reinsurance Program verify on EDGAR →
• high

  New tariff disclosure warns building materials, auto parts, and consumer goods tariffs could raise claims costs. Regulatory lag may prevent timely rate increases, pressuring loss ratios if tariffs persist.

  MD&A: Tariff Risk verify on EDGAR →