NEW YORK–(BUSINESS WIRE)–Lemonade (NYSE: LMND), the insurance company powered by AI and social impact, today announced the closing of the acquisition of auto insurance provider Metromile. Metromile shareholders received 7.3 million LMND shares, while Lemonade received a company with over $155 million in cash, over $110 million in premiums, an insurance entity licensed in 49 states and a team unmatched in leveraging precision data for auto insurance.
“We launched Lemonade Car a few months ago and think it’s the most delicious product on the market. We also believe auto insurance is a challenge for newcomers and disadvantaged by a lack of data, which is why we purchased Metromile,” said Shai Wininger, co-CEO and co-founder of Lemonade. “For ten years, Metromile’s intricate sensors have monitored billions of miles of driving, while their AI has cross-referenced that data with hundreds of thousands of claims, to accurately mark every brake press and wheel turn. We believe that adding these models to the Lemonade Car platform will make the most enjoyable car insurance that is also the most competitive, accurate and fair, which is why we are delighted to welcome Metromile to the Lemonade family.
Most Metromile employees will move into roles at Lemonade, and Metromile CEO Dan Preston has assumed the role of Senior Vice President of Strategic Initiatives.
“It’s hard to imagine a better home for Metromile than Lemonade. While Metromile was at the forefront of using big data and AI in auto insurance, Lemonade charted a parallel course for several complementary insurance lines. It makes for a powerful combination,” said Dan Preston, SVP Strategic Initiatives, Lemonade. “The result is that Metromile’s mission to connect the world to personalized insurance gets a big boost today. While the Metromile brand will fade over time, its promise to consumers will come true bigger, better, and sooner now that we have joined forces.
The Metromile app and brand will remain in the market until all customers can seamlessly transition to the Lemonade app and brand. Metromile common stock will cease trading on NASDAQ today.
Lemonade offers renters, homeowners, car, pet and life insurance. Powered by artificial intelligence and social impact, Lemonade’s comprehensive insurance companies in the US and EU are replacing brokers and bureaucracy with robots and machine learning, aiming for zero paperwork and all instant. Certified B-Corp, Lemonade pays unused bonuses to non-profit organizations selected by its community, during its annual Giveback. Lemonade is currently available in the United States, Germany, the Netherlands, and France, and continues to expand globally.
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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release that do not relate to historical facts should be considered forward-looking statements, including in regarding the impact of the Metromile transaction. These statements are not promises or guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements. expressed or implied by the forward-looking statements. statements, including, but not limited to, the following: our loss history and the fact that we may not achieve or maintain profitability in the future; our ability to retain and expand our customer base; that the “Lemonade” mark may not be as widely known as the registrants’ marks or that the mark may be tarnished; denial of claims or our failure to pay claims accurately and in a timely manner; our ability to obtain greater value from each user; the novelty of our business model and its unpredictable efficiency and sensitivity to unintended consequences; the possibility that we may be forced to modify or eliminate our Giveback, which could undermine our business model; reviews and other targeted investigations by our major insurance regulators and other states that may result in adverse review results and require corrective action; our limited operating history; our ability to effectively manage our growth; the impact of intense competition in the segments of the insurance industry in which we operate on our ability to achieve or increase profitability; the unavailability of reinsurance at current levels and prices, which could limit our ability to write new business; our ability to renew reinsurance contracts with terms and conditions comparable to those currently in effect; our exposure to counterparty risks due to reinsurance; loss of personal customer information, damage to our reputation and brand, or damage to our business and operating results as a result of security incidents or errors, failures or actual or perceived bugs in our systems, website or application; our actual or perceived failure to protect customer information and other data, respect customer privacy, or comply with privacy and data security laws and regulations; our ability to comply with extensive insurance industry regulations and the need to incur additional costs or expend additional resources to comply with changes to existing regulations; our exposure to additional regulatory requirements specific to other vertical markets we enter or have entered, including auto, pet and life insurance, and the need to devote additional resources to comply with such regulations; Lemonade’s ability to successfully integrate Metromile’s operations, product lines and technology; Lemonade’s ability to implement its plans, forecasts and other expectations regarding Metromile’s business after completion of the transaction and realize additional opportunities for growth and innovation; Lemonade’s ability to realize the anticipated synergies of the proposed transaction in the anticipated amounts or within the anticipated time or cost projections or at all; the ability to maintain relationships with Lemonade and Metromile’s respective employees, customers, other business partners and governmental authorities; and the other risks, uncertainties and important factors contained and identified; and our inability to predict the lasting impacts of COVID-19 on our business specifically, and on the global economy generally. These and other important factors discussed under “Risk Factors” in our Form 10-K filed with the SEC on March 1, 2022 and our other filings with the SEC could cause the actual results and those indicated by the pre-project. – forward-looking statements made in this press release. These forward-looking statements represent the beliefs of management as of the date of this press release. Although we may choose to update these forward-looking statements at some time in the future, we disclaim any obligation to do so, even if subsequent events change our views.