Lemonade, Inc. FT Partners FinTech Conference

Sure, happy to. While I am moving on, I am not moving on very far. I have been Lemonade's first CFO. I have been CFO with Lemonade for nine years, and change, nine and a half years. I have been asked to join the board of directors, which I have graciously accepted, starting January 1st. At that point, I will hand the reins of CFO over to Nick Stead, who is currently our SVP of finance. Superstar player internally at Lemonade for many years. While it is a change of name, I do not expect a tremendous change of philosophy or strategy. Candidly, I will say it is a bit of an upgrade. Nick has done terrific work, and this has been in the works for quite some time. That said, one of the most notable things about Lemonade is the lack of change, in a good way.

Meaning our approach, our strategy, our philosophy, our go-to-market vision and story is really unchanged today, 2026, versus our founding in 2015. That is awfully rare in any sector. Technology, data, AI, financial services, that is a rare thing, in a market and a decade that has been tumultuous in maybe a dozen different ways. Lemonade's metrics, Lemonade's performance, Lemonade's strategy has been awfully stable and consistent and up and to the right during that period.

Sure. Lemonade sells insurance to consumers. That is a thing that's been around for a few centuries if not longer. The average American insurance company, the average of the top 10, the biggest of the big, the winners, is a little over 100 years old. Lemonade is not 100 years old. We're about 10 years old. We formed the company with two thoughts in mind. More than two, but two key thoughts in mind. We will leverage and employ and use the current technology that's available. By current, in 2015, we were kind of thinking more about 2025 and 2026 than 2015, to be honest. But the world of data, machine learning, and AI, our founders at the founding of Lemonade knew it was coming.

They didn't know when, they didn't know what day, they didn't know what happened in the last two weeks, when that was going to happen. But they knew it was coming, and they wanted to build a company that would be enabled and ready to leverage sort of a tsunami of technology development in a way that would enable us, Lemonade, to deliver a unique thing, which is delightful insurance. A consumer experience, a product, a user experience that's delightful. That was not something and really hasn't been something historically that was important or prevalent in insurance. Not many, if we poll the audience today and asked how many people love their insurance company, not too many hands would go up. That's not a thing that was really sought after. If you got a group of 100 Lemonade customers in a room, you'd get a fundamentally different result.

It's not because we're great people, although I think we do have a bunch of great people. It's because we've used technology to deliver amazing things. A policy in three or four or five minutes, not a quote, but a policy. Multiple products. We started out as a one-product company. We now have five: Car Insurance, Pet Insurance, Homeowners, Term Life, and Renters. Many of our claims, more than half are paid out in real time, in seconds. That is unheard of in insurance. I just filed a claim with a very large premium insurance company that is not Lemonade. I think it took six months start to finish. They're one of the best, and I had a good experience.

Half of our claims, more than half of our claims are paid out in three or four or five seconds using machine learning, AI, data, and technology to give a delightful customer experience, create an NPS, a net promoter score, that's off the chart, 50, 60, 70, depending on how and when we're measuring it. That's also unheard of in the insurance business. We can also do the normal things insurance companies need to do. You need to grow. You need to grow profitably. We are on track. Within a few weeks, we're going to start the fourth quarter. We expect the fourth quarter to be an EBITDA positive quarter for the first time. That's an important milestone. More importantly, we first talked about that quarter four years ago. We said somewhere around the end of 2026 is this model works. We've got visibility. Everything is on track.

End of 2026 and here we are. It's a few weeks away. Q4 is not over yet. It ain't over till it's over. But things are really on track and I think we're And maybe I'll throw it back to you, but we are now building a set of customers that are beginning to know us as an insurance company as compared to a product company. When we first started, people knew us as a Renters company, and then it was maybe a Pet company, and then there's a couple of Car customers, and now we have autonomous with Tesla. But over time, all the pieces are coming together, both in the U.S. and in Europe, and customers are now beginning to appreciate us as an insurance company. That's the vision. 10 years from now, 20 years from now, we'll be up against, as we are today, Allstate, and State Farm, and Chubb, and the best of the best.

Sure. Yeah, there's a couple of challenges that we face as all insurance companies do. Regulation is a fact of life. Insurance is regulated state by state in the U.S. We appreciate and have great relationships with our regulator partners, but we don't manage their schedule, and we don't set their deadlines. They do that. We are at the mercy of a process that has that sort of third-party component to it. We don't yet have all products available in all states. That's a handicap. We're awfully close. We're close to 50. We have 50 states in our life insurance policy, close to 50 in Pet and Renters. Homeowners and Car Insurance, it will take longer. They're newer, and we're launching those over time. That's not an obstacle to our growth, but ultimately, we want to be all products in 50 states. That's a challenge. On the other side of that challenge is regulators have a difficult job that's getting much more difficult.