Insurtech Lemonade Inc. narrowed its first-quarter net loss to $47.3 million from $65.8 million a year earlier as artificial intelligence enabled its “relentless pursuit of automation at every stage,” the company said in a shareholder letter.
The number of employees declined 11% year-on-year as in-force premium increased 22% to $794.2 million, which “speak volumes for the widespread impact of technology throughout the company,” Lemonade said.
Net earned premium increased to $84.4 million from $68.2 million a year earlier.
Net loss and loss adjustment expenses rose to $65.9 million from $63.6 million.
The company reported 2.1 million customers, up 13% from the prior-year quarter.
Last year Lemonade Co-Founder and Co-Chief Executive Officer Daniel Schreiber said a new partnership with venture firm General Catalyst would cover up to 80% of customer acquisition costs under a time-shifting “synthetic agents” program intended to increase growth without depleting cash, much as quota share reinsurance does.
Lemonade offers renters, homeowners, pet, car and life insurance. It operates in the United States, United Kingdom, Germany, the Netherlands and France.