Lemonade Inc. — an organization that has began out by promoting renters and householders insurance coverage by means of cellular units — says in its registration assertion for an preliminary public providing (IPO) that it’s fascinated by providing life insurance coverage.
The New York-based insurer says it already house owners a life insurance coverage company, Lemonade Life Insurance coverage Company LLC of Delaware.
“As our customers move up the economic ladder and through lifecycle events, their insurance needs evolve to higher value products: renters continuously acquire more property and frequently upgrade to successively larger homes,” Lemonade says within the registration assertion. “Growing households often need life insurance or pet insurance. These progressions regularly trigger orders of magnitude jumps in insurance premiums. We aim to provide an unmatched user experience in order to retain customers throughout their lifespan, expanding their lifetime value without incurring any incremental costs of acquisition.”
Lemonade contends that it is going to be better-suited to promote to youthful customers than conventional insurers are.
“Companies built on human brokers and claims agents have many strengths, no doubt, but appealing to millennials and Gen Zers is not chief among them,” the corporate says.
Lemonade notes, nevertheless, that beginning to promote life insurance coverage and different merchandise, corresponding to pet insurance coverage, would topic the corporate to extra regulatory necessities and regulatory scrutiny.
Organizers began the corporate in 2015, with the purpose of utilizing trendy know-how to create an insurance coverage supplier that may be simpler for customers to make use of.
The organizers hope to boost as much as $100 million by means of the IPO, and record the corporate’s shares on the New York State Change.
The guts of Lemonade is an insurance coverage firm domiciled in New York state. The corporate plans to make use of reinsurance to cede 75% of the premiums it generates kind insurance coverage gross sales to different entities.
The corporate has places of work in Israel and in Scottsdale, Arizona, in addition to in New York.
The highest-level firm is organized as a for-profit public profit company. The organizers say this standing signifies that the corporate should attempt to stability the necessity to earn income in opposition to different stakeholders’ pursuits.
The corporate is reporting a $108 million complete loss for 2019 on $67 million in income, $414 million in whole property, and $270 million in cash, cash equivalents and restricted cash.
About $64 million of the 2019 income consisted of web earned premiums.
SoftBank has been financing Lemonade. Lemonade signifies within the registration assertion that SoftBank would proceed to personal a considerable amount of Lemonade stock after the IPO, and that the corporate co-founders take part in a joint funding committee with a SoftBank govt. The association would restrict outdoors buyers’ capacity to affect firm transactions, corresponding to efforts to promote the corporate, Lemonade says.
Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Allen & Firm LLC are performing because the managing bookrunners for the proposed providing.
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