Talk about putting a positive spin on bad results. You lost 12 Million more, but it’s all part of the plan and you are on plan. Okay. Not buying the spin here.
It will take years to make up the lost revenue of the last 5 years, that is if they ever are to become profitable, At the pace they are going, it appears it would take at least 3 more years to turn a profit, probably more a lot more. How they going to possibly raise more capital at the pace the to keep them going? Allstate learned this was a losing battle and are probably still paying for it to this day with Esurance.
Reading their investor letter is amusing. Our current loss ratio is 86% which sucks and we admit it. But our lifetime value model says we’ll ultimately have a 68% loss ratio based on who we expect to write so everything is all good.
“You can see why we are increasingly confirmed in our view that the business
we are writing today will prove profitable, even if lagging indicators take a
few years to fully reflect this.”
Ignore all prior data. We promise everything is just as planned. Actual financial results are apparently for suckers.
I thought they had an okay role to play and that is to sell renters policies to those without cars. While independent agents may write this business, with such low premium, it can’t possibly be profitable business. So that is where the tech companies can come in, write stuff most agencies don’t want to touch. However no doubt, Lemonade screwed up royally and it was their lack of experience along with a lot of arrogance that did them in. I will predict they will take Metromile to the gutter with them.
This company receives much press even though they are a very small market with a relatively small surplus. If you take a couple of steps back and look at the regionals across the country that actually have a strong track record of performing and protecting their insureds, you might ask why the focus on this group.
Talk about putting a positive spin on bad results. You lost 12 Million more, but it’s all part of the plan and you are on plan. Okay. Not buying the spin here.
It will take years to make up the lost revenue of the last 5 years, that is if they ever are to become profitable, At the pace they are going, it appears it would take at least 3 more years to turn a profit, probably more a lot more. How they going to possibly raise more capital at the pace the to keep them going? Allstate learned this was a losing battle and are probably still paying for it to this day with Esurance.
Reading their investor letter is amusing. Our current loss ratio is 86% which sucks and we admit it. But our lifetime value model says we’ll ultimately have a 68% loss ratio based on who we expect to write so everything is all good.
“You can see why we are increasingly confirmed in our view that the business
we are writing today will prove profitable, even if lagging indicators take a
few years to fully reflect this.”
Ignore all prior data. We promise everything is just as planned. Actual financial results are apparently for suckers.
The only “path to profitability” for Lemonade is to become extinct.
I thought they had an okay role to play and that is to sell renters policies to those without cars. While independent agents may write this business, with such low premium, it can’t possibly be profitable business. So that is where the tech companies can come in, write stuff most agencies don’t want to touch. However no doubt, Lemonade screwed up royally and it was their lack of experience along with a lot of arrogance that did them in. I will predict they will take Metromile to the gutter with them.
Summary/ Precis: LEMONADE is feeling a squeeze on profits.
Alright, that was LAME, so I’m DONE. And apparently, LEMONADE may be, too!
Tech = Awesome Insure = Awful
You cannot escape the realities of insurance using a sexy website and cutting out agents (by using your own agents).
This company receives much press even though they are a very small market with a relatively small surplus. If you take a couple of steps back and look at the regionals across the country that actually have a strong track record of performing and protecting their insureds, you might ask why the focus on this group.
It is a lesson in blindly following old parables.
So, when Life gives you lemons, DON’T invest in Lemonade.
Did management come from the government sector because they are spinning this $ h it like a politician. One word to describe this company: FUBAR