Lemonade Renews Reinsurance Program, Improving Costs, Coverage, and Capital Efficiency

Lemonade, Inc. (NYSE: LMND), the digital insurance company powered by AI and social impact, announced the renewal of its reinsurance program, effective July 1, 2026.

Lemonade renegotiated the program to retain more of the economics from its growing business, while expanding protection against catastrophes and major weather events.

Under the renewed quota share agreements, Lemonade expects to cede approximately 18% of premium to reinsurers, down from approximately 20% previously. Lemonade will retain a larger share of the business’s growing gross profit.

At the same time, the program increases coverage for higher-volatility and catastrophe-exposed risks, including additional tail catastrophe protection. Lemonade believes the economics of the renewed program are more attractive than those of the expiring treaty.

The program continues to cover Lemonade’s global business. One new reinsurer is joining Lemonade’s primary quota share panel alongside existing partners, broadening the company’s reinsurance support.

“This renewal improves Lemonade’s reinsurance economics, coverage, and capital efficiency at the same time,” said Tim Bixby, CFO of Lemonade. “We are retaining more premium, adding protection against the volatility that matters most, and doing so on terms that are attractive on a risk-adjusted basis.”

As part of the renewal, Lemonade also expects to update its ancillary reinsurance programs, including allowing its Property Per Risk (PPR) coverage to expire while expanding its European catastrophe excess of loss (XOL) program. The renewed program is expected to be in effect for a standard 12-month term.