Lemonade, a digital insurer powered by artificial intelligence and social impact, has chosen to reduce its quota share transfer from 20% to about 18% at renewal on July 1, meaning the insurer will retain a larger share of its expanding gross profits.
In addition to the reduced quota share for the 2026-2027 reinsurance program, Lemonade provides additional coverage for higher volatility and catastrophe risks, including additional tail catastrophe reinsurance protection.
The company believes the economics of the renewal program are more attractive than those of the expiring treaty, when Lemonade slashed the concession portion of its quota share reinsurance from about 55% to 20%.
Like the 2025-2026 plan, it covers the company’s global operations. This year, a new reinsurer joined Lemonade’s primary quota share group, joining existing partners, expanding its reinsurance support.
Additionally, as part of its July 1, 2026 renewal, Lemonade said it expects to update its ancillary reinsurance program, including allowing its Property Per Risk (PPR) protection to expire, while also expanding its European catastrophe excess loss program. The updated plan is expected to be effective within a standard period of 12 months.
Lemonade Chief Financial Officer Tim Bixby commented on the renewal: “This renewal simultaneously improves Lemonade’s reinsurance economics, coverage and capital efficiency. We will retain more premiums, increase protection against the volatility that matters most, and do so on terms that are attractive on a risk-adjusted basis.”
