Lemonade says reinsurance program is being renewed

Lemonade (LMND) announced that its reinsurance program is being renewed. Given strong progress in the company’s diversification, underwriting prowess and loss ratio trajectory, the company has chosen to reduce the ceded proportion of its quota share reinsurance from approximately 55% to approximately 20%, effective July 1. The variable ceding commission rate related to the quota share agreements is expected to be roughly equivalent to that of the expiring agreements. The program covers all Lemonade businesses globally, and the primary quota share carriers will remain unchanged. The company expects to renew its other ancillary reinsurance programs, including Property Per Risk coverage, at terms roughly in line with expiring agreements. The new program will be in effect for a standard 12-month term.