Lemonade, the digital insurance company powered by AI and social impact, has renewed its reinsurance program, reducing the ceded proportion of its quota share reinsurance from approximately 55% to approximately 20%, effective July 1.

According to the firm, this decision was made given strong progress in its diversification, underwriting prowess and loss ratio trajectory.

Meanwhile, the variable ceding commission rate related to the quota share agreements is expected to be roughly equivalent to that of the expiring agreements.

Lemonade explained that its renewed program covers all of its businesses globally, and the primary quota share carriers will remain unchanged.

The firm said it will renew its other ancillary reinsurance programs, including Property Per Risk (PPR) coverage, at terms roughly in line with expiring agreements.

Shai Wininger, Lemonade’s President and co-founder, commented, “This year, we continued to reduce our reinsurance overhead, which is a reflection of how much stronger and more precise our tech-based underwriting and pricing machines have become.

“Reinsurance comes at a cost, and thanks to years of steady improvements, we’re now in a position to retain more of the risk ourselves, improve margins, and stay capital-light—all while continuing to work with some of the world’s top reinsurers.”

In its Q1 2025 results, Lemonade reported total revenue of $151.2 million, marking an increase of $32.1 million or 27%, compared to Q1 2024.

This was primarily due to the increase in gross earned premium, ceding commission income, and net investment income.

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