Digital insurer Lemonade mentioned it has closed of the acquisition of pay-per-mile automotive insurance coverage supplier Metromile in an all-stock transaction.
Metromile shareholders obtained 7.3 million Lemonade shares, whereas Lemonade obtained a enterprise with over $155 million in money, over $110 million in premiums, an insurance coverage entity licensed in 49 states, and a staff it mentioned is “unsurpassed in harnessing precision knowledge for auto insurance coverage.”
“We launched Lemonade Automotive a couple of months in the past, and imagine it’s essentially the most pleasant product available on the market. We additionally imagine auto insurance coverage is difficult for newcomers and deprived by an absence of information which is why we purchased Metromile,” mentioned Shai Wininger, Lemonade co-CEO, in an announcement. “For ten years, Metromile’s intricate sensors monitored billions of miles of driving, whereas their AI cross-referenced this knowledge with a whole lot of hundreds of claims to precisely rating every faucet of the brake and switch of the wheel.
“We imagine that including these fashions into the Lemonade Automotive platform will take advantage of pleasant automotive insurance coverage additionally essentially the most aggressive, exact, and honest.”
Lemonade introduced the deliberate deal in November 2021, only a week after launching Lemonade Automotive in Illinois. The AI-powered insurance coverage firm contains renters, residence, pet, life and auto in its product suite. In a letter to shareholders early this yr, Lemonade executives mentioned to count on peak losses in 2022. Nonetheless, the forecast didn’t embrace the influence of Metromile acquisition.
Lemonade mentioned most Metromile staff will transition to roles at Lemonade, and Metromile CEO Dan Preston has assumed the position of senior vp of strategic initiatives.
“Whereas Metromile was on the forefront of utilizing huge knowledge and AI in automotive insurance coverage, Lemonade cast a parallel path for a number of complementary strains of insurance coverage. That makes for a strong mixture,” mentioned Preston. “The upshot is that Metromile’s mission to attach the world to personalised insurance coverage receives a giant enhance as we speak. Whereas the Metromile model will sundown over time, its promise to shoppers shall be realized larger, higher, and sooner now that we’ve joined forces.”
The Metromile app and model will proceed in-market till all prospects will be seamlessly transitioned to the Lemonade app and model. Metromile frequent inventory will stop buying and selling on NASDAQ, Lemonade mentioned.
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