re: i bought LMND today

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Lawyers gonna eat this company alive.

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when? they've been operating for 10 years. lawsuits are a business expense for insurers

I think it’s always been computer generated decision making. It would be interesting to see if the share price rise correlates to when they started calling it AI decision making.

It will also be interesting to see the process when lawsuits contesting those decisions start working their way through the system.

“How did you determine the claim’s value?”
…”a proprietary algorithm we aren’t allowed to disclose”

I invested heavy in this one years ago and got hammered on it. I wanted to sell but would have taken too big of a loss. So I held. Finally getting it back.

It was a Montely Fool Suggestion back in 20/21.
And when that dropped the stock bumped up significantly.

Hopefully it continues to ride. Up.

How's the thesis looking?
Buying opp?

Did you re enter?

Growth is outstanding.
- IFP just keeps increasing. 9 consecutive quarters now.
- The potential for cross selling is massive
- Ads are working
- Management is on the verge of nailing their profitability estimate from 5 years ago. They've been extremely consistent on the timeline.

Still just a 5bn dollar company. Could easily be a 5-10x if given time.

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Morgan Stanley upgrades Lemonade LMND rating from Equal-Weight to Overweight.

Price target for LMND raised to USD 85.00 from USD 80.00, reflecting a 6.25% increase.

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Stock trading at $61 pre market.
Up 6%

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bayoubengals88

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It’s a bit stale info at this point but at actuarial conferences/ communities, lemonade is generally viewed as an insurtech that promotes AI/industry shaker but that isn’t actually using it in pricing to the level of differentiator. It’s more for marketing, acquisition and claims adjudication (if it is being done). You can look up their filings it’s public data, I skimmed a couple and nothing stood out as revolutionary from a rating / pricing perspective- most PC firms are pretty adept at using machine learning and advanced stats to rate risk anyways

I’m not as familiar with the P&C space financials but from what I do know they don’t have attractive margins that’s a differentiator but their acquisition expense seems to run really hot.



Just quick glance at their investor letter, they are claiming to have improving loss ratios / UW margin, in force growth vs opex excl acq exp growth suggesting good news

I am dubious on skim through

- P&C space your acquisition expenses are incredibly high , Lemonade has unusually high acq expense as a growing insurer, to exclude is pretty suspect

The improved loss ratios seem to be coming from mix of business / growth in sectors such as Pet Insurance + some an unusual Q4 experience in homeowner/auto that seems to be reserve driven. Not sure the sustained growth in pet insurance and anomaly in experience is to be banked on





All that said, they claim to be an AI driven disruptor. Probably will 10x over next year no matter what their operations and financials do

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LMND looking to break out here after spending a good while consolidating in the low $50s

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Sometimes the set up is just too good.


$66.25

Yes. They do. Whether on autonomous mode or human driver.

I just sold at 66.75
I'll take 20.2% a week from entry.
Still hold an $80 2028 call in my Roth.

Looking to get back in lower if the opportunity presents itself.