Insurtech Lemonade reported a third-quarter 2025 net loss of about $37.5 million compared with a loss of $67.7 million a year ago during the same time.
Revenue and gross profit increased 42% and 113%, respectively, versus Q3 2024. However, operating expense increased $16.7 million, or 13%, to $141.2 million.
Now at nearly $1.2 billion, in force premium grew 30% in Q3.
The New York-based insurer of car, home, renters, and pet insurance said the use of artificial intelligence has resulted in a “near tripling of claims handling efficiency.” The loss adjustment expense ratio–the cost of handled claims divided by gross earned premium–was reduced to 7% in Q3. The company said it expects to cut the LAE ratio in half.
“We have demonstrated our ability to transform claims handling expense, long considered a variable expense in insurance, to a near fixed expense,” Lemonade said in a letter to shareholders.
Lemonade said its car product continued to grow ahead of its schedule, with in force premium at $163 million at Q3, or about 40% growth year over year.
After nine months Lemonade has booked a net loss of $143.8 million, compared with a net loss of $172.2 million in 2024.
“It’s no secret that Florida is at the epicenter of the national home insurance crisis,” said Lizzy Price, a spokesperson for the Insurance Fairness Project.”High costs are hurting people, and in some cases even forcing them to leave the state.”
At least 61% of Floridians polled said they were concerned about hurricanes gaining in strength and causing storm surge in coastal areas.
The FAU survey echoes the results of a July survey by the University of Florida, which that the top issue facing Florida today is property insurance – ranking above housing costs, immigration, the economy, and property taxes, the Insurance Fairness Project noted.