Today, on June 8, the stock worlds of Insurtech and Reddit memes collided. What a difference a day makes! The Reddit investors who built AMC Theaters, Bed Bath and Beyond, Blackberry and a few other stocks found Insurtech today. At the close of trading Clover Health, an Insurtech startup that went public last year through […]
I am sure you have been following the news that the Colonial Pipeline was damaged by a cyberattack on May 7, resulting in the closure of the pipeline that supplies about 45% of all refined fuels along the US East Coast between Texas and New York. Did you know that Atlanta’s Hartsfield Airport is served […]
Cinco de Mayo, or May 5, is a holiday celebrating the date of the Mexican Army’s victory over France in the Battle of Puebla during the Franco-Mexican War. Insurance, and especially Auto insurance, can be as demanding and damaging as any war. The U.S. auto insurance market is dominated by national titans, and the participants […]
Lemonade, the Insurtech, announced that it intends to introduce Auto insurance within the next few months. This would be their second major product launch in 2021. In February, they teamed up with Bestow to launch Life Insurance. When Lemonade Auto Insurance is introduced, it will be their fifth product after Renters, Home, Pet and Life. Why this makes sense: […]
As with the recent results of Root Insurance, the way you view the results of Lemonade depends on whether you are a half-empty or half-full glass. Lemonade increased its customer base to just over 1 million 56% YOY and subsequently increased its ongoing premium to 213 million dollars 87% YOY. They attribute this to a […]
Insurtech Root, a telematics-based insurer, yesterday announced its full-year 2020 results. While key metrics like premium growth, customer numbers and claims ratio improved, net losses increased 56% compared to 2019 and the total cost of acquiring consumers is unsustainable at $3,370 for 2020. Root recorded a loss of $133.2 million for the quarter ended December […]
I trust you were able to take some quality downtime with your family to recharge and reflect on the monumentally different year we have lived through. I wish you, your colleagues, friends, and family a healthy, safe, and fulfilled year for 2021. I wanted to share with you my closing thoughts for 2020 in Insurtech […]
Insurtech Root Insurance just held its first earnings call as a publicly-traded company. Investors don’t seem too pleased with the results. The stock was down nearly 10% in after-hours trading (8:15PM). Adding insult to injury, the Oregon Department of Consumer and Business Services today levied civil penalties against Root and Allstate Insurance for canceling policies violating state COVID-19 emergency orders. […]
Today, Insurtechs Root Insurance and Mediaalpha went public. Root was able to set their IPO price above the original estimate of $27, which will net them about $725 million, plus another $500 million from 2 private investors for a total of $1.25B. WOW! They now have a market capitalization of $7B. However, the market was […]