Major Rating Factors:
Fair long-term capitalization index (3.1 on a scale of 0 to 10) based on fair current risk adjusted capital (severe loss scenarios) reflecting improvement over results in 2022. Fair profitability index (3.9) with operating losses during 2021, 2022 and 2023. Average return on equity over the last five years has been poor at -5.1%. History of adequate reserve strength (6.5) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall results on stability tests (6.7) despite weak risk adjusted capital in prior years. Stability strengths include good operational trends and excellent risk diversification. The largest net exposure for one risk is conservative at 1.1% of capital. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (62.9%), personal/comm auto (1.9%), other (35.1%)
Licensed in:
All states except AK, DE, ID, KS, MN, SD, VT, WV, WY
Principal Investments:
Investment grade bonds (76.6%), cash (7.6%), other (15.8%)
Corporate Info
Group Affiliation
Lemonade Inc
Investment Rating
Company Address
5 Crosby St
New York, NY 10013
New York, NY 10013
Phone Number
(332) 208-8911
NAIC Number
16023
Website
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