Lemonade
-
Lemonade will acquire Metromile in an all-stock transaction that implies a fully diluted equity value of approximately $500mn. -
The personal auto product enables customers to bundle car insurance with home, pet and life policies.
-
Root and Lemonade remain the highest-shorted stocks covered, as short interest in most firms remains flat in anticipation of earnings.
-
The private equity-backed retail brokers have lessons to teach the sector’s tech start-ups.
-
Without any major catalysts, the short interest for the industry was muted, with movement centering around InsurTechs once again.
-
Pressure on Root cools following stock price dips, but persistent short interest in InsurTechs suggests that prices haven’t bottomed out yet.
-
The Inside P&C Select Index outperformed the S&P 500 (5.7% to 2.9%) in August, despite Hurricane Ida making landfall.
-
Pressure on the InsurTechs – specifically Root and Lemonade – is intensifying.
-
InsurTech short interest dwarfs legacy insurers as they come under pressure to produce profits.
-
The InsurTech tempers investors’ expectations about immediate profits and faces challenges in new markets.
-
The InsurTech’s CEO said on an earnings call the business is focusing on the lifetime value of customers in a hyper growth period.
-
Lemonade grew gross written premiums substantially during the period to $90mn.
Related
-
InsurTech: Doing whatever it takes to survive
August 21, 2025 -
Lemonade share price up nearly 30% after Q2 earnings report
August 05, 2025