Major Rating Factors:
Poor long-term capitalization index (2.1 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios). Weak profitability index (2.0) with operating losses during each of the last five years and the first three months of 2025. Average return on equity over the last five years has been poor at -22.8%. Fair reserve development (4.6) as reserves have generally been sufficient to cover claims.
Other Rating Factors:
Good overall results on stability tests (6.1) despite weak risk adjusted capital in prior years and negative cash flow from operations for 2024. Stability strengths include good operational trends and excellent risk diversification. Superior liquidity (9.2) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (80.7%), homeowners (9.3%), other (9.9%)
Licensed in:
All states except MI, TN
Principal Investments:
Investment grade bonds (83.2%), cash (14.4%), other (2.4%)
Corporate Info
Group Affiliation
Lemonade Inc
Investment Rating
Company Address
5 Crosby Street
New York, NY 10013
New York, NY 10013
Phone Number
(332) 208-8911
NAIC Number
16187
Website
Largest Affiliates