Lemonade (LMND) 10-Q 11 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 10, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-39367
Entity Registrant Name	Lemonade, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	32-0469673
Entity Address, Address Line One	5 Crosby Street, 3rd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10013
City Area Code	844
Local Phone Number	733-8666
Title of 12(b) Security	Common Stock, $0.00001 par value per share
Trading Symbol	LMND
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		61,556,857
Amendment Flag	false
Entity Central Index Key	0001691421
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Investments
Fixed maturities available-for-sale, at fair value (amortized cost: $71.3 million and $6.4 million as of June 30, 2021 and December 31, 2020)	$ 71.2	$ 6.6
Total investments	71.2	6.6
Cash, cash equivalents and restricted cash	1,092.7	571.4
Premium receivable, net of allowance for doubtful accounts of $0.7 million and $0.5 million as of June 30, 2021 and December 31, 2020	108.1	86.1
Reinsurance recoverable	64.7	49
Prepaid reinsurance premium	120.3	91.3
Deferred acquisition costs	4.9	3.5
Property and equipment, net	8.8	5.7
Intangible assets	0.6	0.6
Other assets	16	14.5
Total assets	1,487.3	828.7
Liabilities and Stockholders' Equity
Unpaid loss and loss adjustment expense	64.7	46.3
Unearned premium	166	123.8
Trade payables	1.3	1.4
Funds held for reinsurance treaties	77.6	62.1
Deferred ceding commission	30.1	22.4
Ceded premium payable	18	13
Other liabilities and accrued expenses	28	18.7
Total liabilities	385.7	287.7
Commitments and contingencies (Note 14)
Stockholders' equity:
Common stock, $0.00001 par value, 200,000,000 shares authorized; 61,532,127 and 56,774,294 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	0	0
Additional paid-in capital	1,525.9	859.8
Accumulated deficit	(425.2)	(320.6)
Accumulated other comprehensive income	0.9	1.8
Total stockholders' equity	1,101.6	541
Total liabilities and stockholders' equity	$ 1,487.3	$ 828.7

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Amortized cost, available-for-sale securities	$ 71.3	$ 6.4
Premium receivable, allowance for doubtful accounts	$ 0.7	$ 0.5
Common stock, par value (usd per share)	$ 0.00001	$ 0.00001
Common stock, authorized (shares)	200,000,000	200,000,000
Common stock, issued (shares)	61,532,127	56,774,294
Common stock, outstanding (shares)	61,532,127	56,774,294

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue
Net earned premium	$ 16.3	$ 29.2	$ 30.1	$ 54.5
Ceding commission income	10.6	0.4	19.6	0.4
Net investment income	0.2	0.2	0.4	1.1
Commission and other income	1.1	0.1	1.6	0.1
Total revenue	28.2	29.9	51.7	56.1
Expense
Loss and loss adjustment expense, net	13	20.5	29.5	38.7
Other insurance expense	5.2	4	10	7.3
Sales and marketing	33.1	16.1	62.2	35.3
Technology development	14	4.2	21.1	7.7
General and administrative	15.8	5.8	29.9	24
Total expense	81.1	50.6	152.7	113
Loss before income taxes	(52.9)	(20.7)	(101)	(56.9)
Income tax expense	2.7	0.3	3.6	0.6
Net loss	(55.6)	(21)	(104.6)	(57.5)
Other comprehensive income, net of tax
Unrealized (loss) gain on investments	(0.2)	0.2	(0.1)	0.2
Foreign currency translation adjustment	0.3	0	1	0
Comprehensive loss	$ (55.5)	$ (20.8)	$ (103.7)	$ (57.3)
Earnings Per Share [Abstract]
Net loss per share attributable to common stockholders—basic (usd per share)	$ (0.90)	$ (1.77)	$ (1.72)	$ (4.89)
Net loss per share attributable to common stockholders—diluted (usd per share)	$ (0.90)	$ (1.77)	$ (1.72)	$ (4.89)
Weighted average common shares outstanding—basic (shares)	61,444,958	11,891,979	60,643,764	11,750,198
Weighted average common shares outstanding—diluted (shares)	61,444,958	11,891,979	60,643,764	11,750,198

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Beginning balance (shares) at Dec. 31, 2019	31,557,107
Beginning balance at Dec. 31, 2019	$ 480.2
Ending balance (shares) at Mar. 31, 2020	31,557,107
Ending balance at Mar. 31, 2020	$ 480.2
Beginning balance (shares) at Dec. 31, 2019		11,271,228
Beginning balance at Dec. 31, 2019	(182.5)	$ 0	$ 15.7	$ (198.3)	$ 0.1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		54,374
Stock-based compensation	2.2		2.2
Contribution to the Lemonade Foundation (shares)		500,000
Contribution to the Lemonade Foundation	12.2		12.2
Net loss	(36.5)			(36.5)
Ending balance (shares) at Mar. 31, 2020		11,825,602
Ending balance at Mar. 31, 2020	$ (204.6)	$ 0	30.1	(234.8)	0.1
Beginning balance (shares) at Dec. 31, 2019	31,557,107
Beginning balance at Dec. 31, 2019	$ 480.2
Ending balance (shares) at Jun. 30, 2020	31,557,107
Ending balance at Jun. 30, 2020	$ 480.2
Beginning balance (shares) at Dec. 31, 2019		11,271,228
Beginning balance at Dec. 31, 2019	(182.5)	$ 0	15.7	(198.3)	0.1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Net loss	(57.5)
Ending balance (shares) at Jun. 30, 2020		12,369,701
Ending balance at Jun. 30, 2020	$ (221.6)	$ 0	33.9	(255.8)	0.3
Beginning balance (shares) at Mar. 31, 2020	31,557,107
Beginning balance at Mar. 31, 2020	$ 480.2
Ending balance (shares) at Jun. 30, 2020	31,557,107
Ending balance at Jun. 30, 2020	$ 480.2
Beginning balance (shares) at Mar. 31, 2020		11,825,602
Beginning balance at Mar. 31, 2020	(204.6)	$ 0	30.1	(234.8)	0.1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options	0.1		0.1
Exercise of stock options (shares)		30,562
Stock-based compensation	$ 2.4		2.4
Release of shares upon repayment (shares)	513,537
Release of shares upon repayment	$ 1.3		1.3
Net loss	(21)			(21)
Other comprehensive income	0.2				0.2
Ending balance (shares) at Jun. 30, 2020		12,369,701
Ending balance at Jun. 30, 2020	$ (221.6)	$ 0	33.9	(255.8)	0.3
Beginning balance (shares) at Dec. 31, 2020	0
Beginning balance at Dec. 31, 2020	$ 0
Ending balance (shares) at Mar. 31, 2021	0
Ending balance at Mar. 31, 2021	$ 0
Beginning balance (shares) at Dec. 31, 2020	56,774,294	56,774,294
Beginning balance at Dec. 31, 2020	$ 541	$ 0	859.8	(320.6)	1.8
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Issuance of common stock upon closing of Follow-On Offering (shares)		4,018,647
Issuance of common stock upon closing of Follow-on Offering, net of underwriting discounts and commissions and offering costs of $22.8 million	640.3		640.3
Exercise of stock options	6.1		6.1
Exercise of stock options (shares)		577,162
Stock-based compensation	6.1		6.1
Net loss	(49)			(49)
Other comprehensive income	(0.8)				(0.8)
Ending balance (shares) at Mar. 31, 2021		61,370,103
Ending balance at Mar. 31, 2021	$ 1,143.7	$ 0	1,512.3	(369.6)	1
Beginning balance (shares) at Dec. 31, 2020	0
Beginning balance at Dec. 31, 2020	$ 0
Ending balance (shares) at Jun. 30, 2021	0
Ending balance at Jun. 30, 2021	$ 0
Beginning balance (shares) at Dec. 31, 2020	56,774,294	56,774,294
Beginning balance at Dec. 31, 2020	$ 541	$ 0	859.8	(320.6)	1.8
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)	739,186
Net loss	$ (104.6)
Ending balance (shares) at Jun. 30, 2021	61,532,127	61,532,127
Ending balance at Jun. 30, 2021	$ 1,101.6	$ 0	1,525.9	(425.2)	0.9
Beginning balance (shares) at Mar. 31, 2021	0
Beginning balance at Mar. 31, 2021	$ 0
Ending balance (shares) at Jun. 30, 2021	0
Ending balance at Jun. 30, 2021	$ 0
Beginning balance (shares) at Mar. 31, 2021		61,370,103
Beginning balance at Mar. 31, 2021	1,143.7	$ 0	1,512.3	(369.6)	1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options	1.7		1.7
Exercise of stock options (shares)		162,024
Stock-based compensation	11.9		11.9
Net loss	(55.6)			(55.6)
Other comprehensive income	$ (0.1)				(0.1)
Ending balance (shares) at Jun. 30, 2021	61,532,127	61,532,127
Ending balance at Jun. 30, 2021	$ 1,101.6	$ 0	$ 1,525.9	$ (425.2)	$ 0.9

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance costs and underwriting fees	$ 22.8

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (104.6)	$ (57.5)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1.7	0.7
Stock-based compensation	18	4.6
Amortization of discount on bonds	0	(0.3)
Provision for bad debts	2.3	0.9
Common shares contribution to the Lemonade Foundation	0	12.2
Changes in operating assets and liabilities:
Premium receivable	(24.4)	(11.6)
Reinsurance recoverable	(15.7)	(5.9)
Prepaid reinsurance premium	(29)	1
Deferred acquisition costs	(1.4)	(0.7)
Other assets	(1.5)	(3.5)
Unpaid loss and loss adjustment expense	18.4	7.1
Unearned premium	42.2	18.9
Trade payables	(0.1)	0.1
Funds held for reinsurance treaties	15.5	0
Deferred ceding commissions	7.7	0
Ceded premium payable	5	1.6
Other liabilities and accrued expenses	9.4	(2.9)
Net cash used in operating activities	(56.5)	(35.3)
Cash flows from investing activities:
Proceeds from short-term investments sold or matured	0	40
Proceeds from bonds sold or matured	0	2.2
Cost of short-term investments acquired	0	(14.9)
Cost of bonds acquired	(64.6)	(2.9)
Purchases of property and equipment	(4.7)	(1.9)
Net cash (used in) provided by investing activities	(69.3)	22.5
Cash flows from financing activities:
Proceeds from Follow-on Offering, net of underwriting discounts and commissions and offering costs	640.3	0
Proceeds from release of shares upon repayment	0	1.3
Proceeds from stock exercises	7.8	0.1
Net cash provided by financing activities	648.1	1.4
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1)	(0.1)
Net increase in cash, cash equivalents and restricted cash	521.3	(11.5)
Cash, cash equivalents and restricted cash at beginning of period	571.4	270.3
Cash, cash equivalents and restricted cash at end of period	1,092.7	258.8
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 1.1	$ 0.8

Nature of the Business

Nature of the Business	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the Business	Nature of the BusinessLemonade, Inc. is a public benefit corporation organized under Delaware law on June 17, 2015. It provides certain personnel, facilities and services to each of its subsidiaries (together with Lemonade, Inc., the “Company”), all of which are 100% owned, directly or indirectly, by Lemonade, Inc. For the list of the Company's US and EU subsidiaries, see Note 1 - Nature of the Business, of the audited consolidated financial statements and related notes thereto for the year ended December 31, 2020 as contained in the Company's Annual Report on Form 10-K for the year ending December 31, 2020 (the "Annual Report on Form 10-K") for more complete descriptions and discussions.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated upon consolidation. All foreign currency amounts in the condensed consolidated statement of operations and comprehensive loss have been translated using an average rate for the reporting period. All foreign currency balances in the balance sheet have been translated using the spot rate at the end of the reporting period. All figures expressed, except share amounts, are in U.S. dollars in millions. Risk and Uncertainties The global pandemic resulting from the disease known as COVID-19, caused by a novel strain of coronavirus, SARS-CoV-2, has caused national and global economic and financial market disruptions and may adversely impact our business. Although the Company did not see a material impact on its results of operations for the three and six months ended June 30, 2021 due to the COVID-19 pandemic, the Company cannot predict the duration or magnitude of the pandemic or the full impact that it may have on the Company’s financial condition and results of operations, business operations, and workforce. Unaudited interim financial information

Use of Estimates

Use of Estimates	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	Use of EstimatesThe preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates estimates, including those related to contingent assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, reinsurance recoverables on unpaid losses, valuation allowance on deferred tax assets and valuation on stock-based compensation prior to the Company's IPO.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Cash, cash equivalents and restricted cash The following represents the Company’s cash, cash equivalents and restricted cash as of June 30, 2021 and December 31, 2020 ($ in millions): June 30, December 31, 2021 2020 Cash and cash equivalents $ 1,092.4 $ 570.8 Restricted cash 0.3 0.6 Total cash, cash equivalents and restricted cash $ 1,092.7 $ 571.4 Cash and cash equivalents consist primarily of bank deposits and money market accounts with maturities of three months or less at the date of acquisition and are stated at cost, which approximates fair value. The Company’s restricted cash relates to security deposits for office leases in Israel. The carrying value of restricted cash approximates fair value. Deferred offering costs The Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded as a reduction to the carrying value of stockholders' equity (deficit) as a reduction of additional paid-in capital generated as a result of such offering. In connection with the Initial Public Offering, the Company incurred total offering costs of $32.4 million, of which $28.9 million was recorded as a reduction to gross proceeds, and $3.5 million was recognized as a component of general and administrative expense in 2019. On January 14, 2021, the Company completed a Follow-on Offering of common stock, as defined and discussed in detail in Note 9, which generated net proceeds of $525.7 million, after deducting underwriting discounts and offering costs. On February 1, 2021, the underwriters exercised their option to purchase additional shares, and generated additional net proceeds to us of $114.6 million. Deferred offering costs from the Follow-on Offering amounted to $0.4 million. Recent accounting pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, simplifies the various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifies and amends the existing guidance to improve consistent application. The adoption of ASU 2019-12 beginning January 1, 2021 did not have a material impact on our condensed consolidated financial statement and related disclosures. In February 2016, the FASB issued Leases (Topic 842) (“ASU 2016-02”), whereby a lessee will be required to recognize for all leases at the commencement date a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. ASU 2016-02 is effective for the Company’s annual periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The adoption of the new standard is expected to result in the recognition of additional lease liabilities and right-of-use assets as of January 1, 2022. The Company is evaluating the potential impact of this pronouncement. In June 2016, the FASB issued Financial Instruments — Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity debt securities, premium receivables, and reinsurance recoverable. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. ASU 2016-13 requires a valuation allowance to be calculated on these financial assets, as well as available for sale securities, and that they be presented on the financial statements net of the valuation allowance. ASU 2016-13 is effective for the Company’s annual periods beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2016-13 on its financial condition and results of operations, with a primary focus on its reinsurance recoverable. Reclassification Certain accounts in the prior period financial statements were reclassified to conform with the current period presentation.

Investments

Investments	6 Months Ended
	Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Unrealized gains and losses The following tables present cost or amortized cost and fair values of investments as of June 30, 2021 and December 31, 2020 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses June 30, 2021 U.S. Government obligations $ 71.3 $ 0.1 $ (0.2) $ 71.2 Total $ 71.3 $ 0.1 $ (0.2) $ 71.2 December 31, 2020 U.S. Government obligations $ 6.4 $ 0.2 $ — $ 6.6 Total $ 6.4 $ 0.2 $ — $ 6.6 Gross unrealized losses amounted to $0.2 million as of June 30, 2021. Gross unrealized losses were less than $0.1 million as of December 31, 2020. Gross unrealized gains and losses were recorded as a component of accumulated other comprehensive income. Contractual maturities of bonds The following table presents the cost or amortized cost and estimated fair value of bonds as of June 30, 2021 by contractual maturity ($ in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2021 Cost or Fair Value Due in one year or less $ 1.1 $ 1.1 Due after one year through five years 70.2 70.1 Due after five years through ten years — — Due after ten years — — Total $ 71.3 $ 71.2 Net investment income An analysis of net investment income follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest on cash and cash equivalents $ 0.1 $ 0.1 $ 0.3 $ 0.8 Bonds 0.1 — 0.1 — Short-term investments — 0.1 — 0.3 Total net investment income $ 0.2 $ 0.2 $ 0.4 $ 1.1 Investment gains and losses The Company did not have any pre-tax net realized capital gains or losses for the three and six months ended June 30, 2021 and 2020. Aging of gross unrealized losses The following table presents the gross unrealized losses and related fair values for the Company’s available-for-sale bond securities, grouped by duration of time in a continuous unrealized loss position as of June 30, 2021 and December 31, 2020 ($ in millions): Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2021 U.S. Government obligations $ — $ (0.2) $ — $ — $ — $ (0.2) Total $ — $ (0.2) $ — $ — $ — $ (0.2) Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2020 U.S. Government obligations $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — There were no investments in gross unrealized loss position for twelve months or more as of June 30, 2021. Gross unrealized losses for U.S. Government Bonds was less than $0.1 million for twelve months or more as of December 31, 2020. The gross unrealized investment losses as of June 30, 2021 and December 31, 2020, were deemed to be temporary, based on, among other things: • the duration of time and the relative magnitude to which fair values of these investments have been below their amortized cost was not indicative of an other than temporary impairment loss; • the absence of compelling evidence that would cause the Company to call into question the financial condition or near-term prospects of the issuer of the investment; and • the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. The Company may ultimately record a realized loss after having originally concluded that the decline in value was temporary. Risks and uncertainties are inherent in the methodology the Company uses to assess other-than-temporary declines in value. Risks and uncertainties could include, but are not limited to, incorrect assumptions about financial condition, liquidity or future prospects, inadequacy of any underlying collateral, and unfavorable changes in economic conditions or social trends, interest rates or credit ratings.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of June 30, 2021 and December 31, 2020 ($ in millions): June 30, 2021 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 71.2 $ — $ 71.2 Total $ — $ 71.2 $ — $ 71.2 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 6.6 $ — $ 6.6 Total $ — $ 6.6 $ — $ 6.6 There were no transfers between Level 1, Level 2, or Level 3 during the three and six months ended June 30, 2021 and December 31, 2020, respectively.

Unpaid Loss and Loss Adjustment

Unpaid Loss and Loss Adjustment Expense	6 Months Ended
	Jun. 30, 2021
Insurance [Abstract]
Unpaid Loss and Loss Adjustment Expense	Unpaid Loss and Loss Adjustment Expense The following table presents the activity in the liability for unpaid loss and loss adjustment expense ("LAE") for the six months ended June 30, 2021 and 2020 ($ in millions): Six Months Ended June 30, 2021 2020 Unpaid loss and LAE at beginning of period $ 46.3 $ 28.2 Less: Reinsurance recoverable at beginning of period (1) 36.3 18.5 Net unpaid loss and LAE at beginning of period 10.0 9.7 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 29.9 33.5 Prior years (0.4) 5.2 Total incurred 29.5 38.7 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 19.0 24.4 Prior years 5.5 13.2 Total paid 24.5 37.6 Unpaid loss and LAE, net of reinsurance recoverable, at end of period 15.0 10.8 Reinsurance recoverable at end of period (1) 49.7 24.5 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 64.7 $ 35.3 (1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE Unpaid loss and LAE includes anticipated salvage and subrogation recoverable. Considerable variability is inherent in the estimate of the reserve for losses and LAE. Although management believes the liability recorded for losses and LAE is adequate, the variability inherent in this estimate could result in changes to the ultimate liability, which may be material to stockholders' equity. Additional variability exists due to accident year allocations of ceded amounts in accordance with reinsurance agreements, which is not expected to result in any changes to the ultimate liability. The Company had unfavorable development on net loss and LAE reserves of $0.4 million for the six months ended June 30, 2021, and favorable development on net loss and LAE reserves of $5.2 million for the six months ended June 30, 2020. No additional premiums or returned premiums have been accrued as a result of prior year effects. For the six months ended June 30, 2021, current accident year incurred loss and LAE included $6.2 million of net incurred loss and LAE from the severe winter storm that affected our customers in the states of Texas and Oklahoma. The net incurred loss and LAE from Winter Storm Uri as of June 30, 2021 represents the Company's best estimates based upon information currently available. Through June 30, 2021, the Company has proportional reinsurance contracts which cover all of the Company's products and geographies, and transfer, or “cede,” 75% of the premium to reinsurers ("Proportional Reinsurance Contracts"). In exchange, these reinsurers pay a ceding commission of 25% for every dollar ceded, in addition to funding all of the corresponding claims, or 75% of all claims. The Company opted to manage the remaining 25% of the business with alternative forms of reinsurance through non-proportional reinsurance contracts ("Non-Proportional Reinsurance Contracts"). The majority of the Proportional Reinsurance Contracts run for a three-year term, expiring June 30, 2023 , while the remainder has a one-year term, expiring June 30, 2021 . The Company's Non-Proportional Reinsurance Contracts are likewise effective as of July 1, 2020, and have a one-year term.

Other Liabilities and Accrued E

Other Liabilities and Accrued Expenses	6 Months Ended
	Jun. 30, 2021
Other Liabilities Disclosure [Abstract]
Other Liabilities and Accrued Expenses	Other Liabilities and Accrued Expenses Other liabilities and accrued expenses as of June 30, 2021 and December 31, 2020 consist of the following ($ in millions): June 30, December 31, 2021 2020 Accrued advertising costs $ 10.3 $ 6.8 Employee compensation payable 3.8 3.7 Premium taxes payable 3.0 3.2 Income tax payable 2.6 0.3 Advance premium 2.5 — Accrued professional fees 2.4 2.6 VAT payable 0.2 0.2 Other payables 3.2 1.9 Total other liabilities and accrued expenses $ 28.0 $ 18.7

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common stock The Company completed its IPO on July 2, 2020, in which the Company issued and sold 12,650,000 shares of its common stock at a public offering price of $29 per share, including 1,650,000 shares sold upon the exercise of the underwriter's option to purchase additional shares. After underwriter discounts and commissions and other offering costs, net proceeds from the IPO were approximately $335.6 million. In connection with the IPO, the Company's outstanding convertible preferred stock converted into 31,557,107 shares of common stock. Upon conversion of the convertible preferred stock, the Company reclassified the carrying value of the preferred stock to common stock and additional paid in capital. Upon closing of the IPO, the Company filed an amended and restated certificate of incorporation on July 7, 2020 with the Secretary of State of the State of Delaware to authorize the issuance of up to 200,000,000 shares of common stock, par value $0.00001 per share, and 10,000,000 shares of undesignated preferred stock, par value $0.00001 per share. On January 14, 2021, the Company completed a Follow-on Offering of common stock (the "Follow-on Offering"), which resulted in the issuance and sale of 3,300,000 shares of common stock of the Company, and 1,524,314 shares of common stock by certain selling shareholders, and generated net proceeds to us of $525.7 million after deducting underwriting discounts and commissions and other offering costs. On February 1, 2021, the underwriters exercised their option to purchase additional shares, which resulted in the issuance and sale of an additional 718,647 shares of common stock of the Company, and generated additional net proceeds of $114.6 million to us after deducting underwriting discounts . As of both June 30, 2021 and December 31, 2020, the Company was authorized to issue 200,000,000 shares of par value $0.00001 per share common stock. The voting, dividend and liquidation rights of the holders of the Company’s common stock is subject to and qualified by the rights, powers and preferences of the holders of the preferred stock. On February 18, 2020, the Company made a contribution of 500,000 newly issued shares of common stock to a related party, the Lemonade Foundation (see Note 13). In connection with the Follow-on Offering noted above, Lemonade Foundation sold 100,000 of the contributed shares of the Company. Undesignated Preferred Stock As of both June 30, 2021 and December 31, 2020, the Company's certificate of incorporation, as amended and restated, authorized the Company to issue up to 10,000,000 shares of undesignated preferred stock, par value $0.00001 per share. As of both June 30, 2021 and December 31, 2020, there were no shares of undesignated preferred stock issued or outstanding.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-based Compensation	Stock-based Compensation Share option plans 2020 Incentive Compensation Plan On July 2, 2020, the Company’s board of directors adopted and the Company’s stockholders approved the 2020 Incentive Compensation Plan (the “2020 Plan”), which became effective immediately prior to the effectiveness of the registration statement for the Company’s IPO on July 2, 2020. The 2020 Plan provides for the issuance of incentive stock options, non-qualified stock options, stock awards, stock units, stock appreciation rights and other stock-based awards. The number of shares initially reserved for issuance under the 2020 Plan is 5,503,678 shares, inclusive of available shares previously reserved for issuance under the 2015 Incentive Share Option Plan, as amended and restated on September 4, 2019 (the “2015 Plan”). In addition, the number of shares reserved for issuance under the 2020 Plan is subject to increase for awards previously issued under the 2015 Plan which are forfeited or lapse unexercised. Annually, on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, the reserve will be increased by an amount equal to the lesser of (A) 5% of the shares outstanding (on an as-converted basis) on the last day of the immediately preceding fiscal year and (B) such smaller number of shares as determined by the Company’s board of directors, provided that no more than 3,650,000 shares may be issued upon the exercise of incentive stock options. On January 1, 2021, the 2020 Plan was increased by 2,838,412 shares, equal to 5% of the aggregate number of outstanding common stock as of December 31, 2020. As of June 30, 2021, there were 5,890,700 shares of common stock available for future grants. 2020 Employee Stock Purchase Plan On July 2, 2020, the Company's board of directors adopted and the Company's stockholders approved the 2020 Employee Stock Purchase Plan (the "2020 ESPP"), which became effective immediately prior to the effectiveness of the registration statement for the Company's IPO on July 2, 2020. The total shares of common stock initially reserved for issuance under the 2020 ESPP is limited to 1,000,000 shares. In addition, the number of shares available for issuance under the 2020 ESPP will be annually increased on January 1 of each calendar year beginning in 2021 and ending in and including 2030, by an amount equal to the lesser of (A) 1,000,000 shares, (B) 1% of the shares outstanding on the final day of the immediately preceding calendar year and (C) such smaller number of shares as is determined by the board of directors. The board of directors or a committee of the board of directors will administer and will have authority to interpret the terms of the 2020 ESPP and determine eligibility of participants. On January 1, 2021, the 2020 ESPP was increased by 567,682 shares, equal to 1% of the aggregate number of outstanding common stock as of December 31, 2020. As of June 30, 2021, there were no shares of common stock issued under the 2020 ESPP. 2015 Incentive Share Option Plan In July 2015, the Company adopted the 2015 Plan. The 2015 Plan has been amended and restated from time to time to increase the number of shares reserved for grant and to enable the grant of options to employees of the Company’s subsidiaries. Under the 2015 Plan, options to purchase common stock of the Company may be granted to employees, officers, directors and consultants of the Company. Each option granted can be exercised for one share of common stock of the Company. Options granted to employees generally vest over a period of no more than four years. The options expire ten years from the date of grant. Pursuant to the 2015 Plan, the Company had reserved 7,312,590 shares of common stock for issuance. Effective immediately upon the approval of the 2020 plan, the remaining shares of common stock available for future grant under the 2015 Plan were transferred to the 2020 Plan. As of June 30, 2021, there wer e no shares of common stock available for future grant under the 2015 Plan. Subsequent to the approval of the 2020 Plan, no additional grants will be made under the 2015 Plan and any outstanding awards under the 2015 Plan will continue with their original terms. Options granted to employees and non-employees The fair value of each option granted for the six months ended June 30, 2021 and 2020 is estimated on the date of grant using the Black-Scholes model based on the following assumptions: Six Months Ended June 30, 2021 2020 Weighted average expected term (years) 6.3 6.1 Risk-free interest rate 1.3% 1.0% Volatility 49% 40% Expected dividend yield 0% 0% Expected volatility is based on companies at a comparable stage, as well as companies in the same or a similar industry. The expected term of options granted is based on the simplified method, which uses the midpoint between the vesting date and the contractual term in accordance with ASC 718, “Compensation — Stock Compensation”. The risk-free interest rate is based on observed interest rates appropriate for the term of the Company’s stock options. The dividend yield assumption is based on the Company’s historical and expected future dividend payouts and may be subject to substantial change in the future. The following tables summarize activity of stock options and restricted stock units ("RSUs") ($ in millions, except for number of options and weighted average amounts): Stock options Number of Weighted- Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2020 4,944,711 $ 20.50 8.30 $ 506.58 Granted 2,052,325 102.81 Exercised (739,186) 10.56 Cancelled (223,241) 39.21 Outstanding as of June 30, 2021 6,034,609 $ 48.65 8.51 $ 382.66 Options exercisable as of June 30, 2021 1,720,686 $ 13.51 7.20 $ 165.22 Options unvested as of June 30, 2021 4,313,923 $ 62.65 9.03 $ 217.44 Restricted Stock Units Number of shares Grant Date Outstanding as of December 31, 2020 — $ — Granted 57,004 151.58 Vested — — Cancelled (1,875) 159.02 Outstanding as of June 30, 2021 55,129 $ 151.33 . Stock-based compensation expense Stock-based compensation expense from stock options and RSUs granted included and classified in the condensed consolidated statements of operations for the six months ended June 30, 2021 and 2020 is as follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Loss and loss adjustment expense, net $ 0.5 $ 0.1 $ 0.7 $ 0.1 Other insurance expense 0.2 0.2 0.4 0.4 Sales and marketing 1.3 0.6 2.4 1.3 Technology development 6.8 0.7 7.5 1.3 General and administrative 3.1 0.8 7.0 1.5 Total stock-based compensation expense $ 11.9 $ 2.4 $ 18.0 $ 4.6 Stock-based compensation expense classified by award type as included in the condensed consolidated statements of operations is as follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock options $ 10.5 $ 2.4 $ 16.0 $ 4.6 RSUs 1.4 — 2.0 — Total stock-based compensation expense $ 11.9 $ 2.4 $ 18.0 $ 4.6 The total unrecognized expense granted to employees and non-employees outstanding at June 30, 2021 was $108.2 million for the stock options and $6.4 million for the RSUs, with a remaining weighted-average vesting period of 1.5 years for the stock options and 1.5 years for the RSUs.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective tax rates The consolidated effective tax rate for the six months ended June 30, 2021 and 2020 was (3.6)% and (1.0)%, respectively. The change in effective tax rate over the two periods was predominantly reflective of the change in profit before tax of its wholly-owned subsidiaries in Israel and the Netherlands. The Company believes that as of June 30, 2021, it had no material uncertain tax positions. Interest and penalties related to unrecognized tax expenses (benefits) are recognized in income tax expense, when applicable. There were no material liabilities for interest and penalties accrued as of June 30, 2021.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss per Share Net loss per share Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net loss attributable to common stockholders ($ in millions) $ (55.6) $ (21.0) $ (104.6) $ (57.5) Denominator: Weighted average common shares outstanding — basic and diluted 61,444,958 11,891,979 60,643,764 11,750,198 Net loss per share attributable to common stockholders — basic and diluted $ (0.90) $ (1.77) $ (1.72) $ (4.89) The Company’s potentially dilutive securities, which include stock options, unvested RSUs and preferred stock, have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded unvested RSUs and outstanding options to purchase common stock of 6,089,738 and 4,578,520 for the six months ended June 30, 2021 and 2020, respectively, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company uses the services of a travel agency owned by a relative of one of the Company’s key stockholders. The Company incurred less than $0.1 million of travel related expenses during the three and six months ended June 30, 2021, and less than $0.1 million of travel related expenses was incurred during the three and six months ended June 30, 2020. The Company has historically leased office spaces in the United States and The Netherlands from an affiliate. Rental expense amounted to less than $0.1 million was incurred for the three and six months ended June 30, 2021, and less than $0.1 million for the three and six months ended June 30, 2020. There were no outstanding amounts due to or from related parties as of June 30, 2021 and December 31, 2020. The Company’s Chief Executive Officer and the Company’s President and Chief Operating Officer, both of whom are also members of the Company’s board of directors, are the two sole members of the board of directors of the Lemonade Foundation. Effective July 2021, the Company's President and Chief Operating Officer became the Company's Co-Chief Executive Officer. The Company contributed 500,000 shares of common stock with a fair market value of $24.36 per share (see Note 9). The Company recorded $12.2 million of non-cash expense within general and administrative expense in connection with this contribution for the year ended December 31, 2020. In connection with the Follow-on Offering as discussed in Note 9, Lemonade Foundation sold 100,000 shares of the contributed shares of the Company. As of June 30, 2021, there were no outstanding amounts due to or from the Lemonade Foundation.

Commitment and Contingent Liabi

Commitment and Contingent Liabilities	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitment and Contingent Liabilities	Commitments and Contingent Liabilities Litigation The Company is occasionally a party to routine claims or litigation incidental to its business. The Company does not believe that it is a party to any pending legal proceeding that is likely to have a material adverse effect on its business, financial condition or results of operations. Lease commitments The Company and its subsidiaries lease their facilities under various operating lease agreements. The Company’s headquarters in New York is under a lease that expires in November 2022. The Company’s Israel based operations occupy offices with lease expiration dates that extend through July 2026. On March 18, 2019, the Company entered into a lease agreement to lease office space in Scottsdale, Arizona that expires in November 2024. Aggregate minimum rental commitments under non-cancelable leases at June 30, 2021 are as follows ($ in millions): 2021 (remaining six months) $ 2.6 2022 4.9 2023 2.8 2024 2.8 2025 and thereafter 4.1 $ 17.2 Expenses for lease of facilities for the three and six months ended June 30, 2021 were $1.1 million and $2.1 million, respectively, and for the three and six months ended June 30, 2020 were $1.0 million and $1.9 million, respectively, and are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. Charges and guarantees The Company provided guarantees with respect to office leases in an aggregate amount of $0.3 million as of June 30, 2021 and $0.6 million as of December 31, 2020.

Geographical Breakdown of Gross

Geographical Breakdown of Gross Written Premium	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Geographical Breakdown of Gross Written Premium	Geographical Breakdown of Gross Written Premium The Company has a single reportable segment and offers insurance coverage under the homeowners multi-peril and inland marine lines of business. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Jurisdiction Amount % of GWP Amount % of GWP Amount % of GWP Amount % of GWP California $ 22.2 24.8 % $ 9.9 21.2 % $ 41.4 25.0 % $ 19.3 22.8 % Texas 18.7 20.9 % 11.8 25.3 % 33.7 20.4 % 20.6 24.3 % New York 10.9 12.2 % 5.3 11.3 % 20.9 12.6 % 10.2 12.0 % Georgia 4.3 4.8 % 2.8 6.0 % 8.0 4.8 % 4.9 5.8 % Illinois 4.1 4.6 % 2.6 5.6 % 7.1 4.3 % 4.2 5.0 % New Jersey 3.7 4.1 % 1.6 3.4 % 6.8 4.1 % 3.1 3.7 % Pennsylvania 2.3 2.6 % 1.1 2.4 % 4.1 2.5 % 1.8 2.1 % Michigan 1.9 2.1 % 1.4 3.0 % 3.5 2.1 % 2.4 2.8 % Colorado 2.0 2.2 % 0.8 1.7 % 3.4 2.1 % 1.5 1.8 % Maryland 1.8 2.0 % 0.9 1.9 % 3.4 2.1 % 1.7 2.0 % All other 17.6 19.7 % 8.5 18.2 % 33.0 20.0 % 15.1 17.7 % $ 89.5 100.0 % $ 46.7 100.0 % $ 165.3 100.0 % $ 84.8 100.0 %

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of presentation	The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated upon consolidation. All foreign currency amounts in the condensed consolidated statement of operations and comprehensive loss have been translated using an average rate for the reporting period. All foreign currency balances in the balance sheet have been translated using the spot rate at the end of the reporting period. All figures expressed, except share amounts, are in U.S. dollars in millions.
Use of estimates	The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates estimates, including those related to contingent assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, reinsurance recoverables on unpaid losses, valuation allowance on deferred tax assets and valuation on stock-based compensation prior to the Company's IPO.
Cash, cash equivalents and restricted cash	Cash and cash equivalents consist primarily of bank deposits and money market accounts with maturities of three months or less at the date of acquisition and are stated at cost, which approximates fair value. The Company’s restricted cash relates to security deposits for office leases in Israel. The carrying value of restricted cash approximates fair value.
Deferred offering costs	The Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded as a reduction to the carrying value of stockholders' equity (deficit) as a reduction of additional paid-in capital generated as a result of such offering. In connection with the Initial Public Offering, the Company incurred total offering costs of $32.4 million, of which $28.9 million was recorded as a reduction to gross proceeds, and $3.5 million was recognized as a component of general and administrative expense in 2019. On January 14, 2021, the Company completed a Follow-on Offering of common stock, as defined and discussed in detail in Note 9, which generated net proceeds of $525.7 million, after deducting underwriting discounts and offering costs. On February 1, 2021, the underwriters exercised their option to purchase additional shares, and generated additional net proceeds to us of $114.6 million. Deferred offering costs from the Follow-on Offering amounted to $0.4 million.
Recent accounting pronouncements	The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, simplifies the various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifies and amends the existing guidance to improve consistent application. The adoption of ASU 2019-12 beginning January 1, 2021 did not have a material impact on our condensed consolidated financial statement and related disclosures. In February 2016, the FASB issued Leases (Topic 842) (“ASU 2016-02”), whereby a lessee will be required to recognize for all leases at the commencement date a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. ASU 2016-02 is effective for the Company’s annual periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The adoption of the new standard is expected to result in the recognition of additional lease liabilities and right-of-use assets as of January 1, 2022. The Company is evaluating the potential impact of this pronouncement. In June 2016, the FASB issued Financial Instruments — Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity debt securities, premium receivables, and reinsurance recoverable. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. ASU 2016-13 requires a valuation allowance to be calculated on these financial assets, as well as available for sale securities, and that they be presented on the financial statements net of the valuation allowance. ASU 2016-13 is effective for the Company’s annual periods beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2016-13 on its financial condition and results of operations, with a primary focus on its reinsurance recoverable.
Reclassification	Certain accounts in the prior period financial statements were reclassified to conform with the current period presentation.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	The following represents the Company’s cash, cash equivalents and restricted cash as of June 30, 2021 and December 31, 2020 ($ in millions): June 30, December 31, 2021 2020 Cash and cash equivalents $ 1,092.4 $ 570.8 Restricted cash 0.3 0.6 Total cash, cash equivalents and restricted cash $ 1,092.7 $ 571.4
Restricted cash	The following represents the Company’s cash, cash equivalents and restricted cash as of June 30, 2021 and December 31, 2020 ($ in millions): June 30, December 31, 2021 2020 Cash and cash equivalents $ 1,092.4 $ 570.8 Restricted cash 0.3 0.6 Total cash, cash equivalents and restricted cash $ 1,092.7 $ 571.4

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Amortized cost and fair values	The following tables present cost or amortized cost and fair values of investments as of June 30, 2021 and December 31, 2020 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses June 30, 2021 U.S. Government obligations $ 71.3 $ 0.1 $ (0.2) $ 71.2 Total $ 71.3 $ 0.1 $ (0.2) $ 71.2 December 31, 2020 U.S. Government obligations $ 6.4 $ 0.2 $ — $ 6.6 Total $ 6.4 $ 0.2 $ — $ 6.6
Contractual maturities of bonds	The following table presents the cost or amortized cost and estimated fair value of bonds as of June 30, 2021 by contractual maturity ($ in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2021 Cost or Fair Value Due in one year or less $ 1.1 $ 1.1 Due after one year through five years 70.2 70.1 Due after five years through ten years — — Due after ten years — — Total $ 71.3 $ 71.2
Net investment income	An analysis of net investment income follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest on cash and cash equivalents $ 0.1 $ 0.1 $ 0.3 $ 0.8 Bonds 0.1 — 0.1 — Short-term investments — 0.1 — 0.3 Total net investment income $ 0.2 $ 0.2 $ 0.4 $ 1.1
Aging of gross unrealized losses	The following table presents the gross unrealized losses and related fair values for the Company’s available-for-sale bond securities, grouped by duration of time in a continuous unrealized loss position as of June 30, 2021 and December 31, 2020 ($ in millions): Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2021 U.S. Government obligations $ — $ (0.2) $ — $ — $ — $ (0.2) Total $ — $ (0.2) $ — $ — $ — $ (0.2) Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2020 U.S. Government obligations $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair value hierarchy for financial assets and liabilities	The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of June 30, 2021 and December 31, 2020 ($ in millions): June 30, 2021 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 71.2 $ — $ 71.2 Total $ — $ 71.2 $ — $ 71.2 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 6.6 $ — $ 6.6 Total $ — $ 6.6 $ — $ 6.6

Unpaid Loss and Loss Adjustme_2

Unpaid Loss and Loss Adjustment Expense (Tables)	6 Months Ended
	Jun. 30, 2021
Insurance [Abstract]
Activity in the liability for unpaid loss and LAE	The following table presents the activity in the liability for unpaid loss and loss adjustment expense ("LAE") for the six months ended June 30, 2021 and 2020 ($ in millions): Six Months Ended June 30, 2021 2020 Unpaid loss and LAE at beginning of period $ 46.3 $ 28.2 Less: Reinsurance recoverable at beginning of period (1) 36.3 18.5 Net unpaid loss and LAE at beginning of period 10.0 9.7 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 29.9 33.5 Prior years (0.4) 5.2 Total incurred 29.5 38.7 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 19.0 24.4 Prior years 5.5 13.2 Total paid 24.5 37.6 Unpaid loss and LAE, net of reinsurance recoverable, at end of period 15.0 10.8 Reinsurance recoverable at end of period (1) 49.7 24.5 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 64.7 $ 35.3 (1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE

Other Liabilities and Accrued_2

Other Liabilities and Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2021
Other Liabilities Disclosure [Abstract]
Other liabilities and accrued expenses	Other liabilities and accrued expenses as of June 30, 2021 and December 31, 2020 consist of the following ($ in millions): June 30, December 31, 2021 2020 Accrued advertising costs $ 10.3 $ 6.8 Employee compensation payable 3.8 3.7 Premium taxes payable 3.0 3.2 Income tax payable 2.6 0.3 Advance premium 2.5 — Accrued professional fees 2.4 2.6 VAT payable 0.2 0.2 Other payables 3.2 1.9 Total other liabilities and accrued expenses $ 28.0 $ 18.7

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Fair value assumptions	The fair value of each option granted for the six months ended June 30, 2021 and 2020 is estimated on the date of grant using the Black-Scholes model based on the following assumptions: Six Months Ended June 30, 2021 2020 Weighted average expected term (years) 6.3 6.1 Risk-free interest rate 1.3% 1.0% Volatility 49% 40% Expected dividend yield 0% 0%
Stock options activity	Stock options Number of Weighted- Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2020 4,944,711 $ 20.50 8.30 $ 506.58 Granted 2,052,325 102.81 Exercised (739,186) 10.56 Cancelled (223,241) 39.21 Outstanding as of June 30, 2021 6,034,609 $ 48.65 8.51 $ 382.66 Options exercisable as of June 30, 2021 1,720,686 $ 13.51 7.20 $ 165.22 Options unvested as of June 30, 2021 4,313,923 $ 62.65 9.03 $ 217.44
Restricted stock units activity	Restricted Stock Units Number of shares Grant Date Outstanding as of December 31, 2020 — $ — Granted 57,004 151.58 Vested — — Cancelled (1,875) 159.02 Outstanding as of June 30, 2021 55,129 $ 151.33
Stock-based compensation expense	Stock-based compensation expense from stock options and RSUs granted included and classified in the condensed consolidated statements of operations for the six months ended June 30, 2021 and 2020 is as follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Loss and loss adjustment expense, net $ 0.5 $ 0.1 $ 0.7 $ 0.1 Other insurance expense 0.2 0.2 0.4 0.4 Sales and marketing 1.3 0.6 2.4 1.3 Technology development 6.8 0.7 7.5 1.3 General and administrative 3.1 0.8 7.0 1.5 Total stock-based compensation expense $ 11.9 $ 2.4 $ 18.0 $ 4.6 Stock-based compensation expense classified by award type as included in the condensed consolidated statements of operations is as follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock options $ 10.5 $ 2.4 $ 16.0 $ 4.6 RSUs 1.4 — 2.0 — Total stock-based compensation expense $ 11.9 $ 2.4 $ 18.0 $ 4.6 The total unrecognized expense granted to employees and non-employees outstanding at June 30, 2021 was $108.2 million for the stock options and $6.4 million for the RSUs, with a remaining weighted-average vesting period of 1.5 years for the stock options and 1.5 years for the RSUs.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Basic and diluted net loss per share	Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net loss attributable to common stockholders ($ in millions) $ (55.6) $ (21.0) $ (104.6) $ (57.5) Denominator: Weighted average common shares outstanding — basic and diluted 61,444,958 11,891,979 60,643,764 11,750,198 Net loss per share attributable to common stockholders — basic and diluted $ (0.90) $ (1.77) $ (1.72) $ (4.89)

Commitment and Contingent Lia_2

Commitment and Contingent Liabilities (Tables)	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Aggregate minimum rental commitments under non-cancelable leases	Aggregate minimum rental commitments under non-cancelable leases at June 30, 2021 are as follows ($ in millions): 2021 (remaining six months) $ 2.6 2022 4.9 2023 2.8 2024 2.8 2025 and thereafter 4.1 $ 17.2

Geographical Breakdown of Gro_2

Geographical Breakdown of Gross Written Premium (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Gross written premium by state	The Company has a single reportable segment and offers insurance coverage under the homeowners multi-peril and inland marine lines of business. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Jurisdiction Amount % of GWP Amount % of GWP Amount % of GWP Amount % of GWP California $ 22.2 24.8 % $ 9.9 21.2 % $ 41.4 25.0 % $ 19.3 22.8 % Texas 18.7 20.9 % 11.8 25.3 % 33.7 20.4 % 20.6 24.3 % New York 10.9 12.2 % 5.3 11.3 % 20.9 12.6 % 10.2 12.0 % Georgia 4.3 4.8 % 2.8 6.0 % 8.0 4.8 % 4.9 5.8 % Illinois 4.1 4.6 % 2.6 5.6 % 7.1 4.3 % 4.2 5.0 % New Jersey 3.7 4.1 % 1.6 3.4 % 6.8 4.1 % 3.1 3.7 % Pennsylvania 2.3 2.6 % 1.1 2.4 % 4.1 2.5 % 1.8 2.1 % Michigan 1.9 2.1 % 1.4 3.0 % 3.5 2.1 % 2.4 2.8 % Colorado 2.0 2.2 % 0.8 1.7 % 3.4 2.1 % 1.5 1.8 % Maryland 1.8 2.0 % 0.9 1.9 % 3.4 2.1 % 1.7 2.0 % All other 17.6 19.7 % 8.5 18.2 % 33.0 20.0 % 15.1 17.7 % $ 89.5 100.0 % $ 46.7 100.0 % $ 165.3 100.0 % $ 84.8 100.0 %

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Feb. 01, 2021	Jan. 14, 2021	Jul. 02, 2020	Dec. 31, 2019	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Accounting Policies [Abstract]
Cash and cash equivalents					$ 1,092.4	$ 570.8
Restricted cash					0.3	0.6
Total cash, cash equivalents and restricted cash				$ 270.3	$ 1,092.7	$ 571.4	$ 258.8
Sale of Stock [Line Items]
Offering costs	$ 0.4		$ 32.4
Offering costs - component of gross proceeds			$ 28.9
Offering costs - component of expense				$ 3.5
Public Stock Offering
Sale of Stock [Line Items]
Net proceeds from sale		$ 525.7
Underwriter's option
Sale of Stock [Line Items]
Net proceeds from sale	$ 114.6	$ 114.6

Investments - Amortized Cost an

Investments - Amortized Cost and Fair Values (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	$ 71.3	$ 6.4
Gross Unrealized Gains	0.1	0.2
Gross Unrealized Losses	0.2	0
Fair Value	71.2	6.6
U.S. Government obligations
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	71.3	6.4
Gross Unrealized Gains	0.1	0.2
Gross Unrealized Losses	0.2	0
Fair Value	$ 71.2	$ 6.6

Investments - Contractual Matur

Investments - Contractual Maturities of Bonds (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Cost or Amortized Cost
Due in one year or less	$ 1.1
Due after one year through five years	70.2
Due after five years through ten years	0
Due after ten years	0
Cost or Amortized Cost	71.3	$ 6.4
Fair Value
Due in one year or less	1.1
Due after one year through five years	70.1
Due after five years through ten years	0
Due after ten years	0
Fair Value	$ 71.2	$ 6.6

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Investment Income [Line Items]
Net investment income	$ 0.2	$ 0.2	$ 0.4	$ 1.1
Interest on cash and cash equivalents
Net Investment Income [Line Items]
Net investment income	0.1	0.1	0.3	0.8
Bonds
Net Investment Income [Line Items]
Net investment income	0.1	0	0.1	0
Short-term investments
Net Investment Income [Line Items]
Net investment income	$ 0	$ 0.1	$ 0	$ 0.3

Investments - Aging Of Gross Un

Investments - Aging Of Gross Unrealized Losses (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Fair Value
Less than 12 Months	$ 0	$ 0
12 Months or More	0	0
Fair Value	0	0
Gross Unrealized Losses
Less than 12 Months	(0.2)	0
12 Months or More	0	0
Gross Unrealized Losses	(0.2)	0
U.S. Government obligations
Fair Value
Less than 12 Months	0	0
12 Months or More	0	0
Fair Value	0	0
Gross Unrealized Losses
Less than 12 Months	(0.2)	0
12 Months or More	0	0
Gross Unrealized Losses	$ (0.2)	$ 0

Investments - Additional Inform

Investments - Additional Information (Details) $ in Millions	Jun. 30, 2021USD ($)security	Dec. 31, 2020USD ($)security
Investments, Debt and Equity Securities [Abstract]
Gross unrealized losses	$ 0.2	$ 0
Gross unrealized losses, twelve months or more	$ 0	$ 0
Number of debt securities held, unrealized loss position for 12 months or more | security	0	0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	$ 71.2	$ 6.6
Total	71.2	6.6
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	0	0
Total	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	71.2	6.6
Total	71.2	6.6
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	0	0
Total	$ 0	$ 0

Unpaid Loss and Loss Adjustme_3

Unpaid Loss and Loss Adjustment Expense (Details) - USD ($) $ in Millions	Jul. 01, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Unpaid loss and LAE at beginning of period	$ 64.7			$ 46.3	$ 28.2
Less: Reinsurance recoverable at beginning of period	49.7			36.3	18.5
Net unpaid loss and LAE at beginning of period	$ 15			10	9.7
Add: Incurred loss and LAE, net of reinsurance, related to:
Current year				29.9	33.5
Prior years				(0.4)	5.2
Total incurred		$ 13	$ 20.5	29.5	38.7
Deduct: Paid loss and LAE, net of reinsurance, related to:
Current year				19	24.4
Prior years				5.5	13.2
Total paid				24.5	37.6
Unpaid loss and LAE, gross of reinsurance recoverable, at end of period		15	10.8	15	10.8
Reinsurance recoverable at end of period		49.7	24.5	49.7	24.5
Unpaid loss and LAE, gross of reinsurance recoverable, at end of period		$ 64.7	$ 35.3	64.7	35.3
Effects of Reinsurance [Line Items]
Current year				29.9	$ 33.5
Winter Storm Uri
Add: Incurred loss and LAE, net of reinsurance, related to:
Current year				6.2
Effects of Reinsurance [Line Items]
Current year				$ 6.2
Proportional Reinsurance Contracts
Effects of Reinsurance [Line Items]
Percent of contracts subject to participation through reinsurance				75.00%
Ceded commission percentage				25.00%
Claims funding percentage		75.00%		75.00%
Proportional Reinsurance Contracts | Subsequent event
Effects of Reinsurance [Line Items]
Percent of contracts subject to participation through reinsurance	70.00%
Proportional Reinsurance Contracts, Tranche One
Effects of Reinsurance [Line Items]
Reinsurance contract, term				3 years
Proportional Reinsurance Contracts, Tranche Two
Effects of Reinsurance [Line Items]
Reinsurance contract, term				1 year
Non-Proportional Reinsurance Contracts
Effects of Reinsurance [Line Items]
Percent of contracts subject to participation through reinsurance				25.00%
Reinsurance contract, term				1 year

Other Liabilities and Accrued_3

Other Liabilities and Accrued Expenses (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Accrued advertising costs	$ 10.3	$ 6.8
Employee compensation payable	3.8	3.7
Premium taxes payable	3	3.2
Income tax payable	2.6	0.3
Advance premium	2.5	0
Accrued professional fees	2.4	2.6
VAT payable	0.2	0.2
Other payables	3.2	1.9
Total other liabilities and accrued expenses	$ 28	$ 18.7

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 01, 2021	Jan. 19, 2021	Jan. 14, 2021	Jul. 02, 2020	Feb. 18, 2020	Jun. 30, 2021	Dec. 31, 2020	Jul. 07, 2020
Sale of Stock [Line Items]
Conversion of Convertible Preferred Stock to common stock upon closing of initial public offering (shares)				31,557,107
Common stock, authorized (shares)						200,000,000	200,000,000	200,000,000
Common stock, par value (usd per share)						$ 0.00001	$ 0.00001	$ 0.00001
Preferred stock, authorized (shares)						10,000,000	10,000,000	10,000,000
Preferred stock, par value (usd per share)						$ 0.00001	$ 0.00001	$ 0.00001
Preferred stock, issued (shares)						0	0
Preferred stock, outstanding (shares)						0	0
Affiliated entity | The Lemonade Foundation
Sale of Stock [Line Items]
Contribution to the Lemonade Foundation (shares)					500,000	500,000
IPO
Sale of Stock [Line Items]
Common stock sold (shares)				12,650,000
Common stock sold, price (usd per share)				$ 29
Net proceeds from sale				$ 335.6
Underwriter's option
Sale of Stock [Line Items]
Common stock sold (shares)			718,647	1,650,000
Net proceeds from sale	$ 114.6		$ 114.6
Follow On Offering
Sale of Stock [Line Items]
Common stock sold (shares)			3,300,000
Net proceeds from sale			$ 525.7
Follow On Offering, Selling Shareholders
Sale of Stock [Line Items]
Common stock sold (shares)			1,524,314
Follow On Offering, Selling Shareholders | The Lemonade Foundation
Sale of Stock [Line Items]
Common stock sold (shares)		100,000

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jul. 02, 2020	Jun. 30, 2021	Jul. 31, 2015
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (shares)		5,503,678
Common stock reserved for issuance, annual increase, percentage of outstanding shares	5.00%	5.00%
Maximum shares that may be issued upon exercise of incentive stock options (shares)		3,650,000
Additional shares authorized (shares)	2,838,412
Common stock available for grant (shares)			5,890,700
2020 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (shares)		1,000,000
Common stock reserved for issuance, annual increase, percentage of outstanding shares	1.00%	1.00%
Additional shares authorized (shares)	567,682
Common stock available for grant (shares)			0
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (shares)				7,312,590
Common stock available for grant (shares)			0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, stock options			$ 108.2
Unrecognized expense, period for recognition			1 year 6 months
Stock options | 2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Expiration period			10 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, RSUs			$ 6.4
Unrecognized expense, period for recognition			1 year 6 months

Stock-based Compensation - Fair

Stock-based Compensation - Fair Value Assumptions (Details) - Stock options	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average expected term	6 years 3 months 18 days	6 years 1 month 6 days
Risk-free interest rate	1.30%	1.00%
Volatility	49.00%	40.00%
Expected dividend yield	0.00%	0.00%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Options Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares
Number of Options
Outstanding (shares) | shares	4,944,711
Granted (shares) | shares	2,052,325
Exercised (shares) | shares	(739,186)
Cancelled (shares) | shares	(223,241)
Outstanding (shares) | shares	6,034,609	4,944,711
Exercisable (shares) | shares	1,720,686
Vested and expected to vest, (shares) | shares	4,313,923
Weighted- Average Exercise Price
Outstanding (usd per share) | $ / shares	$ 20.50
Granted (usd per share) | $ / shares	102.81
Exercised (usd per share) | $ / shares	10.56
Cancelled (usd per share) | $ / shares	39.21
Outstanding (usd per share) | $ / shares	48.65	$ 20.50
Exercisable, weighted-average exercise price (usd per share) | $ / shares	13.51
Vested and expected to vest, weighted-average exercise price (usd per share) | $ / shares	$ 62.65
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted-average remaining contractual, term	8 years 6 months 3 days	8 years 3 months 18 days
Exercisable, weighted-average remaining contractual, term	7 years 2 months 12 days
Vested and expected to vest, weighted-average remaining contractual, term	9 years 10 days
Outstanding, aggregate intrinsic value, outstanding | $	$ 382,660	$ 506,580
Exercisable, aggregate intrinsic value | $	165,220
Vested and expected to vest, aggregate intrinsic value | $	$ 217,440

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Units Activity (Details) - RSUs	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Number of shares
Outstanding as of December 31, 2020 (shares) | shares	0
Granted (shares) | shares	57,004
Vested (shares) | shares	0
Cancelled (shares) | shares	(1,875)
Outstanding as of March 31, 2021 (shares) | shares	55,129
Grant Date Fair Value
Outstanding as of December 31, 2020 (usd per share) | $ / shares	$ 0
Granted (usd per share) | $ / shares	151.58
Vested (usd per share) | $ / shares	0
Cancelled (usd per share) | $ / shares	159.02
Outstanding as of March 31, 2021 (usd per share) | $ / shares	$ 151.33

Stock-based Compensation - Expe

Stock-based Compensation - Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 11.9	$ 2.4	$ 18	$ 4.6
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	10.5	2.4	16	4.6
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1.4	0	2	0
Loss and loss adjustment expense, net
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.5	0.1	0.7	0.1
Other insurance expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.2	0.2	0.4	0.4
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1.3	0.6	2.4	1.3
Technology development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	6.8	0.7	7.5	1.3
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3.1	$ 0.8	$ 7	$ 1.5

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	(3.60%)	(1.00%)

Net Loss Per Share - Reconcilia

Net Loss Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net loss attributable to common stockholders	$ (55.6)	$ (21)	$ (104.6)	$ (57.5)
Denominator:
Weighted average common shares outstanding—basic (shares)	61,444,958	11,891,979	60,643,764	11,750,198
Weighted average common shares outstanding—diluted (shares)	61,444,958	11,891,979	60,643,764	11,750,198
Net loss per share attributable to common stockholders—basic (usd per share)	$ (0.90)	$ (1.77)	$ (1.72)	$ (4.89)
Net loss per share attributable to common stockholders—diluted (usd per share)	$ (0.90)	$ (1.77)	$ (1.72)	$ (4.89)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Potential Common Shares (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares	6,089,738	4,578,520

Related Party Transactions (Det

Related Party Transactions (Details) $ / shares in Units, $ in Millions	Jan. 19, 2021shares	Jan. 14, 2021shares	Feb. 18, 2020shares	Jun. 30, 2021USD ($)director	Jun. 30, 2020USD ($)	Mar. 31, 2020shares	Jun. 30, 2021USD ($)director$ / sharesshares	Jun. 30, 2020USD ($)
Related Party Transaction [Line Items]
Common shares contribution to the Lemonade Foundation | $							$ 0	$ 12.2
Follow On Offering, Selling Shareholders
Related Party Transaction [Line Items]
Common stock sold (shares) | shares		1,524,314
Common Stock
Related Party Transaction [Line Items]
Contribution to the Lemonade Foundation (shares) | shares						500,000
The Lemonade Foundation | Follow On Offering, Selling Shareholders
Related Party Transaction [Line Items]
Common stock sold (shares) | shares	100,000
Affiliated entity | The Lemonade Foundation
Related Party Transaction [Line Items]
Number of shared directors | director				2			2
Contribution to the Lemonade Foundation (shares) | shares			500,000				500,000
Contribution of common stock to related party, fair value (usd per share) | $ / shares							$ 24,360,000
Common shares contribution to the Lemonade Foundation | $							$ 12.2
Affiliated entity | Rental expense
Related Party Transaction [Line Items]
Expenses with related parties | $				$ 0.1	$ 0.1		0.1	0.1
Key stockholder | Travel related expenses
Related Party Transaction [Line Items]
Expenses with related parties | $				$ 0.1	$ 0.1		$ 0.1	$ 0.1

Commitment and Contingent Lia_3

Commitment and Contingent Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
2021 (remaining six months)	$ 2.6		$ 2.6
2022	4.9		4.9
2023	2.8		2.8
2024	2.8		2.8
2025 and thereafter	4.1		4.1
Aggregate minimum rental commitments	17.2		17.2
Rental expense	1.1	$ 1	2.1	$ 1.9
Office leases, payment guarantees
Guarantor Obligations [Line Items]
Guarantees	$ 0.3		$ 0.3		$ 0.6

Geographical Breakdown of Gro_3

Geographical Breakdown of Gross Written Premium (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)segment	Jun. 30, 2020USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			1
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 89.5	$ 46.7	$ 165.3	$ 84.8
Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	100.00%	100.00%	100.00%	100.00%
California
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 22.2	$ 9.9	$ 41.4	$ 19.3
California | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	24.80%	21.20%	25.00%	22.80%
Texas
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 18.7	$ 11.8	$ 33.7	$ 20.6
Texas | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	20.90%	25.30%	20.40%	24.30%
New York
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 10.9	$ 5.3	$ 20.9	$ 10.2
New York | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	12.20%	11.30%	12.60%	12.00%
Georgia
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 4.3	$ 2.8	$ 8	$ 4.9
Georgia | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	4.80%	6.00%	4.80%	5.80%
Illinois
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 4.1	$ 2.6	$ 7.1	$ 4.2
Illinois | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	4.60%	5.60%	4.30%	5.00%
New Jersey
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 3.7	$ 1.6	$ 6.8	$ 3.1
New Jersey | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	4.10%	3.40%	4.10%	3.70%
Pennsylvania
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 2.3	$ 1.1	$ 4.1	$ 1.8
Pennsylvania | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.60%	2.40%	2.50%	2.10%
Michigan
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 1.9	$ 1.4	$ 3.5	$ 2.4
Michigan | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.10%	3.00%	2.10%	2.80%
Colorado
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 2	$ 0.8	$ 3.4	$ 1.5
Colorado | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.20%	1.70%	2.10%	1.80%
Maryland
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 1.8	$ 0.9	$ 3.4	$ 1.7
Maryland | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.00%	1.90%	2.10%	2.00%
All other
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 17.6	$ 8.5	$ 33	$ 15.1
All other | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	19.70%	18.20%	20.00%	17.70%