Lemonade Making A Comeback!

Revolutionizing The Insurance Industry!

And, “Weekly Options Members” Make 115% Potential Profit In Less Than 1 Hour!
Maybe There Is More to Come?

April 23, 2021

Lemonade Inc, one of the highest-momentum stocks heading into 2021, is looking at revolutionizing the insurance industry. The stock price has moved higher the past two days which has supported this weekly options trade.

And, “Weekly Options Members” are now up potential profits of 115%, in less than one hour.

Another trade was executed later in the day as more upwards movement is expected.

The Major Catalysts for This Trade.....

1. Expanding into Auto Insurance.....

On Tuesday Lemonade announced a major expansion of its business today. The company, which primarily sells renters, homeowners, and pet insurance, added term life insurance earlier this year. Now, Lemonade is expanding into auto insurance, which could be a huge growth driver over the next few years.

Lemonade announced that it plans to launch its Lemonade Car auto insurance platform by the end of the year, and early registration for interested customers is now live on the company's website.

Why auto insurance?

1. Auto insurance is a massive addressable market. In the United States alone, it is estimated to be a $300 billion industry, roughly 70 times the size of Lemonade's core renters and pet insurance markets.
2. Lemonade's customers want to buy their auto insurance through the company. The easy process of buying renters, homeowner, or pet insurance, as well as the company's quick claims process, have been a massive hit. Lemonade reached the 1 million customer milestone in a fraction of the time of most of its larger peers.

As chief operating officer Shai Wininger said, "We're seeing an overwhelming demand for a Lemonade car insurance product from our customers." The company estimates that its existing customer base spends about $1 billion on car insurance each year, so this product has the potential to have an immediate and game-changing impact on the company's revenue.

Lemonade's auto insurance product will use the company's proprietary artificial intelligence to handle emergencies and process claims. It also says that the product will be "especially attractive" to drivers of electric vehicles and other environmentally friendly cars.

2. Launched Life Insurance.....

Lemonade rolled out its life insurance product in the first quarter, so we haven't seen any results yet. Life insurance is by far the largest insurance market Lemonade has entered so far (approximately $800 billion globally), but it's also an industry that is ripe for innovation.

3. Product Offerings.....

The company is building up its product offerings fast, which will please a lot of current and potential customers.

Lemonade now offers homeowners, renters, pet, and life insurance, and most recently announced that it is going into the car insurance business. Customers can bundle their insurance products with Lemonade , meaning one-stop shopping.

4. Worldwide Presence.....

Lemonade, unlike other insurance companies, does not plan on offering its services in the U.S. alone. Lemonade is now also available in the Netherlands, Germany, and most recently France. Nothing is stopping Lemonade from offering its services to other countries in Europe and around the world. 

5. Value for Customers.....

Lemonade's system may be similar, but it's also faster -- approving claims in as little as one second -- and often cheaper. It appeals to a young clientele, who are settling down with a first home and often purchasing insurance policies for the first time. Lemonade is targeting this group, with an average age in their early thirties, and hoping to create lifetime value with an assortment of insurance products.

Besides opening up the company to new markets, these products are meant to unlock greater value from each customer as they sign on for more products, with higher premium per customer, lowered customer acquisition costs, and long-term retention. As of the fourth quarter, half of pet and life policy purchases were from existing customers.

Lemonade is launching new products at a rapid rate, and it's far from finished. In fact, its biggest project seems to be right around the corner.

6. Lemonade Is Growing Fast.....

Lemonade's revenue has soared since the platform's initial launch in 2016, but its bottom line remains deep in the red.

Summary.....

As Lemonade goes through the ups and downs of its first year as a publicly traded company, it certainly isn't sitting still.

The insurance technology company was one of the hottest IPOs of 2020, opening at roughly $50 in its market debut that July and hitting a high of $183 this January. But it's lost more than half its value since that time, mostly after a disappointing fourth-quarter earnings report.

Lemonade is still fairly new and very much in growth mode, and in the past year it has added pet and life insurance. To hear management tell it, the best may be yet to come. On the fourth-quarter conference call, COO Shai Wininger said the company is working on a new product that "may well be the most significant launch we've ever done."