Amazing! Fantastic work from all at team freetrade
Got in today (small portion of my portfolio <1%). Typically don’t really like to get involved in IPOs but this one looks interesting.
Interested to hear the wise views of this community on how do you expect it to perform in a 5yr horizon
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For a new player in insurance its all about policy growth and market share. Usually insurance companies will sell insurance very cheap to just gain customers. Then With size they can then use economies of scale to negotiate better deals for claims fulfilment. The fact that their loss ratio is already sub 100% is great. It means theyre writing profitable policies.
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Just bought two of these in a couple of days between 50 and 60 dollars a share. Prepared for a bit of volatility, but a good way to use left over cash?
I for one am an example of the ‘untapped’ market in terms of certain cover that I imagine they’re trying to reach…rather than just poach existing business on price etc
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Anyone know why LMND jumped +20% today…?
Yeah. I sold my shares yesterday 
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For what is worth, looks like Motley Fool is long:
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Anyone know where yesterday’s rise came from?
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They launched in France and announced plan to launch in a few other places too.
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Wonderful thank you. Didn’t see much online. I’m very long on lemonade so was nice to see a pop.
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I’ve been working in the insurance market for nearly 10 years, so I was curious about this stock.
I know most stocks appear to be overpriced at this stage, but the numbers definitely surprised me on this one…
A quick comparison to other companies
- Beazley:
premiums written: $3.6B Market cap: $2.0B ratio: 1.8x
- QBE:
premiums written: $7B Market cap: $8.9B ratio: 0.79x
- Lemonade:
premiums written: $0.11B Market cap: $8.2B ratio: 0.013x
I know this is definitely not a detailed analysis and there are many other factors to consider, a big one being potential for growth. However insurance tends to be pretty different in that respect, you cant just grow as fast as you want because of the associated liabilities, and the dependance on reinsurance, the supply of which fluctuates and can become quite limited.
As stated in their filing:
Reinsurance may be unavailable at current levels and prices, which may limit our ability to write new business. Our reinsurance contracts vary in both duration and term, and there is no assurance the contracts will be renewed […]
Also switching costs are very low in insurance especially at the low end of the personal lines sector which they are targeting.
Sure they are growing fast, and they use AI to pay out claims quicker, and that’s great, but theres not that much that would stop others to adopt a similar technology.
Will it keep growing fast? possibly, but it seems to me there is a huge amount of growth that’s already priced in.
anyway its just a thought, not a recommendation to buy or sell.
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Except most insurance companies are oil tankers with their legacy systems and slow processes. Adopting AI systems will take atleast 3 years for most established players. LMND also use ML in their pricing algorithms. Something most players have only just started to tinker with.
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Buy the dip, and the dip dip, and the dip dip dip
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Yes the wider market is crashing but this is down about 50% since my recent post.
Hopefully I saved a few ppl a few quid…
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Anyone riding this one with me? We’re going down faster than the Jamaican bobsled team! 
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I’m riding it all the way down with you. And buying the dip as we go!
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Yup,
I like the stock. Like the idea, like the functionality, like them as a lender in how they do it.
Like the fact some big players are using there AI, so they also benefit from that knowledge too.
What’s not to like?
Well, I’m seeing the opportunity of the dip to buy again.
It’s going to make me a little heavy on this stock, but I believe in it….
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Everything about LMND speak to what I like to invest in, the valuations troubled me earlier this year but at these prices it seems like a much better investment. Average down and wait patiently.
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Oh dear…
Looking like it’s on a trajectory for 50 a share… did I buy too early?
I’m heavy on this so going to sit it out…
New buyers, this is a great stock for potential returns?
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