Lemonade [NYSE: LMND]
Current Price USD 113.36 (05 Jan 2021)
About
Lemonade is a insurance company which incoporate technology to their product. With the use of artificial intelligence and several other technologies, it streamline the insurance process into more efficient and profitable company.
The company takes 25% of its premium income to cover its operating expenses and profit. The remaining 75% are designated to mainly purchase reinsuranxe policies which helps to limit losses and also to pay claims.
If there is anything leftover, the money will be given to charity purpose.
Bullish
- Increasing customer base by about 84% fompared to a year ago.
- Potential Business Growth (expanded to Germany in 2019, expanded to Netherlands in early 2020 and France in Ending of 2020)
Long-Term Advantage
The company second-quarter gross earned premium, indicate that Lemonade has about 0.003% of the $5 trillion global insurance market. This also means that Lemonade have great amount of growth within the insurance market as its still in the early growth phase.
In addition, Lemonade is doing well in capturing young adults as its customers. This helps to create a sustainable customer base for its operation that could last for years.
