Lemonade (LMND) 10-Q 5 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 04, 2023
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		69,490,739
Amendment Flag	false
Entity Central Index Key	0001691421
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Common Stock
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, $0.00001 par value per share
Trading Symbol	LMND
Security Exchange Name	NYSE
Warrant
Entity Listings [Line Items]
Title of 12(b) Security	Warrants to Purchase Common Stock
Trading Symbol	LMND.WS
Security Exchange Name	NYSE

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Investments
Fixed maturities available-for-sale, at fair value (amortized cost: $665.7 million and $673.5 million as of March 31, 2023 and December 31, 2022, respectively)	$ 648.5	$ 650.3
Short-term investments (cost: $89.5 million and $99.9 million as of March 31, 2023 and December 31, 2022, respectively)	89.4	99.8
Total investments	737.9	750.1
Cash, cash equivalents and restricted cash	254.8	286.5
Premium receivable, net of allowance for credit losses of $2.7 million and $2.7 million as of March 31, 2023 and December 31, 2022, respectively	185	179.6
Reinsurance recoverable	153.7	156.8
Prepaid reinsurance premium	159.8	164.5
Deferred acquisition costs	6.9	6.9
Property and equipment, net	19.8	19.6
Intangible assets	29.8	32.5
Goodwill	19	19
Other assets	74.5	75.2
Total assets	1,641.2	1,690.7
Liabilities and Stockholders' Equity
Unpaid loss and loss adjustment expense	245.2	256.2
Unearned premium	297.8	288
Trade payables	1.9	1.1
Funds held for reinsurance treaties	129.1	136
Deferred ceding commission	39.5	39.7
Ceded premium payable	20.9	18.4
Other liabilities and accrued expenses	85	84.5
Total liabilities	819.4	823.9
Contingencies (Note 15)
Stockholders' equity
Common stock, $0.00001 par value, 200,000,000 shares authorized; 69,449,348 and 69,275,030 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	0	0
Additional paid-in capital	1,769.6	1,754.1
Accumulated deficit	(925.5)	(859.7)
Accumulated other comprehensive loss	(22.3)	(27.6)
Total stockholders' equity	821.8	866.8
Total liabilities and stockholders' equity	$ 1,641.2	$ 1,690.7

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Fixed maturities available-for-sale, amortized cost	$ 665.7	$ 673.5
Short -term investments, cost	89.5	99.9
Premium receivable, allowance for doubtful accounts	$ 2.7	$ 2.7
Common stock, par value (usd per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	200,000,000	200,000,000
Common stock, issued (in shares)	69,449,348	69,275,030
Common stock, outstanding (in shares)	69,449,348	69,275,030

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue
Net earned premium	$ 68.2	$ 27.4
Ceding commission income	17.2	14
Net investment income	5	0.9
Commission and other income	4.8	2
Total revenue	95.2	44.3
Expense
Loss and loss adjustment expense, net	63.6	24.4
Other insurance expense	13.6	9.1
Sales and marketing	28.2	38.3
Technology development	21.8	16.9
General and administrative	32.7	28.2
Total expense	159.9	116.9
Loss before income taxes	(64.7)	(72.6)
Income tax expense	1.1	2.2
Net loss	(65.8)	(74.8)
Other comprehensive loss, net of tax
Unrealized gain (loss) on investments in fixed maturities	6	(14.3)
Foreign currency translation adjustment	(0.7)	(1.1)
Comprehensive loss	$ (60.5)	$ (90.2)
Per share data:
Net loss per share attributable to common stockholders—basic (usd per share)	$ (0.95)	$ (1.21)
Net loss per share attributable to common stockholders—diluted (usd per share)	$ (0.95)	$ (1.21)
Weighted average common shares outstanding—basic (in shares)	69,334,103	61,698,568
Weighted average common shares outstanding—diluted (in shares)	69,334,103	61,698,568

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income
Beginning balance (in shares) at Dec. 31, 2021		61,660,996
Beginning balance at Dec. 31, 2021	$ 988.2	$ 0	$ 1,553.5	$ (561.9)	$ (3.4)
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options and distribution of restricted stock units (in shares)		97,743
Exercise of stock options and distribution of restricted stock units	0.6		0.6
Stock-based compensation	14.1		14.1
Net loss	(74.8)			(74.8)
Other comprehensive income (loss)	(15.4)				(15.4)
Ending balance (in shares) at Mar. 31, 2022		61,758,739
Ending balance at Mar. 31, 2022	$ 912.7	$ 0	1,568.2	(636.7)	(18.8)
Beginning balance (in shares) at Dec. 31, 2022	69,275,030	69,275,030
Beginning balance at Dec. 31, 2022	$ 866.8	$ 0	1,754.1	(859.7)	(27.6)
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options and distribution of restricted stock units (in shares)		174,318
Exercise of stock options and distribution of restricted stock units	0.1		0.1
Stock-based compensation	15.4		15.4
Net loss	(65.8)			(65.8)
Other comprehensive income (loss)	$ 5.3				5.3
Ending balance (in shares) at Mar. 31, 2023	69,449,348	69,449,348
Ending balance at Mar. 31, 2023	$ 821.8	$ 0	$ 1,769.6	$ (925.5)	$ (22.3)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (65.8)	$ (74.8)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	5.1	1.5
Stock-based compensation	15.4	14.1
Amortization of discount on bonds	0.2	2.5
Provision for bad debt	2.3	2
Changes in operating assets and liabilities:
Premium receivable	(7.7)	(10.6)
Reinsurance recoverable	3.1	(22.7)
Prepaid reinsurance premium	4.7	(7.1)
Deferred acquisition costs	0	(0.5)
Other assets	0.7	(4.2)
Unpaid loss and loss adjustment expense	(11)	9.7
Unearned premium	9.8	14.7
Trade payables	0.8	1.6
Funds held for reinsurance treaties	(6.9)	5.1
Deferred ceding commissions	(0.2)	2.3
Ceded premium payable	2.5	16.1
Other liabilities and accrued expenses	0.6	10.8
Net cash used in operating activities	(46.4)	(39.5)
Cash flows from investing activities:
Proceeds from short-term investments sold or matured	36.6	44.7
Proceeds from bonds sold or matured	106.9	9.2
Cost of short-term investments acquired	(23.2)	(17.9)
Cost of bonds acquired	(102.3)	(29.1)
Purchases of property and equipment	(2.7)	(2.8)
Net cash provided by investing activities	15.3	4.1
Cash flows from financing activities:
Proceeds from stock exercises	0.1	0.6
Net cash provided by financing activities	0.1	0.6
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(0.7)	(0.8)
Net decrease in cash, cash equivalents and restricted cash	(31.7)	(35.6)
Cash, cash equivalents and restricted cash at beginning of period	286.5	270.6
Cash, cash equivalents and restricted cash at end of period	254.8	235
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 0.2	$ 1.1

Nature of the Business

Nature of the Business	3 Months Ended
	Mar. 31, 2023
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, 2022 as included in the Company's Annual Report on Form 10-K (the "Annual Report on Form 10-K") for more complete descriptions and discussions.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
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 COVID-19 pandemic has caused national and global economic and financial market disruptions and may adversely impact the Company. Although the Company did not see a material impact on its results of operations for the three months ended March 31, 2023 and year ended December 31, 2022 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	3 Months Ended
	Mar. 31, 2023
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 consolidated 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, intangible assets, valuation allowance on deferred tax assets and the valuation of stock-based compensation prior to the Company’s Initial Public Offering (the “IPO”)

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022: March 31, December 31, 2023 2022 Cash and cash equivalents $ 250.1 $ 282.5 Restricted cash 4.7 4.0 Total cash, cash equivalents and restricted cash $ 254.8 $ 286.5 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 primarily relates to security deposits for certain office leases. The Company also collects insurance policy premiums that it holds in a segregated cash account for transmittal to the underwriting carrier, or settlement of insurance related claims. The carrying value of restricted cash approximates fair value. New Accounting Pronouncements There are no new accounting standards not yet implemented that are expected to have a material effect on the Company's consolidated financial position or results of operations.

Acquisition of Metromile

Acquisition of Metromile	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisition of Metromile	Acquisition of Metromile On July 28, 2022 (the "Acquisition Date"), the Company completed its acquisition of Metromile, Inc. (“Metromile"), a leading digital insurance platform in the United States that offers real-time, personalized auto insurance policies by the mile (the "Metromile Acquisition"). The Company acquired 100% of Metromile's equity through an all-stock transaction based upon the exchange ratio of 0.05263 shares of Lemonade for each outstanding share of Metromile. As a result of the acquisition, Metromile stockholders received 6,901,934 shares of Lemonade's common stock, with minimal cash paid in lieu of fractional shares. In addition, upon closing of the Metromile Acquisition, the Company assumed all outstanding and unexercised options, and outstanding restricted stock units (collectively referred to as "replacement awards") as of the Acquisition Date, which were converted into corresponding awards using the same exchange ratio of 0.05263 and with substantially identical terms and conditions prior to the close of the Metromile Acquisition. Fair value of consideration transferred for the Metromile Acquisition is as follows ($ in millions): Metromile issued and outstanding stock exchanged for Lemonade common stock (1) $ 136.9 Contingent consideration (2) — Metromile vested awards exchanged for Lemonade awards (3) 0.8 Total Purchase Consideration $ 137.7 (1) The fair value of 6,901,934 shares issued and exchanged for Lemonade common stock was determined based on the closing price at acquisition date of $19.84, and includes a minimal amount of cash paid in lieu of fractional shares. (2) Contingent consideration represents Metromile's contingently issuable shares that are convertible into Lemonade common stock in accordance with the exchange ratio as set forth in the merger agreement. In accordance with ASC 805-30-25-5, contingent consideration shall be recognized and measured at fair value as of the Acquisition Date. Given that the contingencies are not probable of being met within the contingency period, no fair value was assessed for these Metromile shares. (3) Fair value of replacement awards related to services rendered prior to the acquisition are included as part of purchase consideration. The unvested portion of fair value attributable to these replacement awards of $4.3 million comprised of $0.1 million for assumed options and $4.2 million for assumed restricted stock units ("RSUs"), and associated with future service will be recognized as expense over the future service period. This Metromile Acquisition increased the Company's geographic footprint as a tech-enabled insurance provider and is expected to accelerate growth of the Lemonade car product, including other product offerings. The Metromile Acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). The purchase price was allocated to assets acquired and liabilities assumed based on the estimated fair values at the Acquisition Date. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, and will not be deductible for tax purposes. Goodwill from this business combination is primarily attributable to synergies from future expected economic benefits, enhanced revenue growth from expanded capabilities and geographic presence, including cost savings from streamlined operations and enhanced operational efficiencies. The following table presents the preliminary allocation of purchase consideration recorded on the condensed consolidated balance sheet as of the Acquisition Date ($ in millions): Assets acquired Fixed maturities, available for sale, at fair value $ 1.8 Short-term investments 64.2 Cash, cash equivalents and restricted cash 98.8 Premiums receivable 17.4 Reinsurance recoverable 14.5 Property and equipment 4.6 Value of business acquired ("VOBA") 1.7 Intangible assets - technology 28.0 Intangible assets - insurance licenses 7.5 Other assets 14.7 Total assets acquired $ 253.2 Liabilities assumed Unpaid loss and loss adjustment expenses $ 84.4 Unearned premium 15.1 Trade payables 0.8 Ceded premium payable 12.0 Other liabilities and accrued expenses 22.2 Total liabilities assumed $ 134.5 Total identifiable net assets acquired $ 118.7 Total purchase consideration $ 137.7 Goodwill $ 19.0 Estimated fair values of assets acquired and liabilities assumed from Metromile are subject to change as we obtain additional information, and will be updated and finalized within the measurement period that will not extend beyond 12 months from the Acquisition Date. The amounts, based on preliminary valuations and subject to final adjustment, allocated to intangible assets are as follows ($ in millions): Fair Value Weighted-Average Useful Life Technology $ 28.0 3 to 5 years Insurance licenses 7.5 N/A Total $ 35.5 The results of operations for Metromile of $19.8 million of revenue and $5.1 million of net loss have been included within the accompanying consolidated statements of operations and comprehensive loss for the three months ended March 31, 2023. The Company incurred transaction and integration costs of approximately $0.5 million for the three months ended March 31, 2022, and were included in General and administrative expenses within the Company’s consolidated statements of operations and comprehensive loss.

Investments

Investments	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Unrealized gains and losses The following tables present cost or amortized cost and fair values of investment in fixed maturities as of March 31, 2023 and December 31, 2022 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses March 31, 2023 Corporate debt securities $ 560.0 $ 0.6 $ (15.2) $ 545.4 U.S. Government obligations 103.9 0.1 (2.7) 101.3 Asset-backed securities 1.8 — — 1.8 Total $ 665.7 $ 0.7 $ (17.9) $ 648.5 December 31, 2022 Corporate debt securities $ 549.7 $ 0.1 $ (19.6) $ 530.2 U.S. Government obligations 121.0 — (3.7) 117.3 Asset-backed securities 2.8 — — 2.8 Total $ 673.5 $ 0.1 $ (23.3) $ 650.3 Gross unrealized losses for fixed maturities was $17.9 million as of March 31, 2023 and $23.3 million as of December 31, 2022. Gross unrealized gains and losses were recorded as a component of accumulated other comprehensive loss. Contractual maturities of bonds The following table presents the cost or amortized cost and estimated fair value of investments in fixed maturities as of March 31, 2023 by contractual maturity ($ 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. March 31, 2023 Cost or Fair Value Due in one year or less $ 213.0 $ 208.9 Due after one year through five years 452.7 439.6 Due after five years through ten years — — Due after ten years — — Total $ 665.7 $ 648.5 Net investment income An analysis of net investment income follows ($ in millions): Three Months Ended March 31, 2023 2022 Interest on cash and cash equivalents $ 1.2 $ — Fixed maturities 2.9 0.9 Short-term investments 1.0 0.1 Total 5.1 1.0 Investment expense 0.1 0.1 Net investment income $ 5.0 $ 0.9 Investment gains and losses The Company had pre-tax net realized capital losses of less than $0.1 million for the three months ended March 31, 2023, and less than $0.1 million for the three months ended March 31, 2022. Aging of gross unrealized losses The following table presents the gross unrealized losses and related fair values for the Company’s investment in fixed maturities, grouped by duration of time in a continuous unrealized loss position as of March 31, 2023 and December 31, 2022 ($ 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 March 31, 2023 Corporate debt securities $ 116.5 $ (1.8) $ 368.3 $ (13.4) $ 484.8 $ (15.2) U.S. Government obligations 29.3 (0.2) 53.6 (2.5) 82.9 (2.7) Asset-backed securities 1.8 — — — 1.8 — Total $ 147.6 $ (2.0) $ 421.9 $ (15.9) $ 569.5 $ (17.9) 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, 2022 Corporate debt securities $ 83.6 $ (2.1) $ 428.1 $ (17.5) $ 511.7 $ (19.6) U.S. Government obligations 29.6 (0.2) 85.1 (3.5) 114.7 (3.7) Asset-backed securities 2.8 — — — 2.8 — Total $ 116.0 $ (2.3) $ 513.2 $ (21.0) $ 629.2 $ (23.3) Investments in fixed maturities with gross unrealized losses for twelve months or more was $15.9 million and $21.0 million for March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023, 239 of the securities held were in an unrealized loss position . The Company determined that unrealized losses on fixed maturities were primarily due to the interest rate environment, and not credit risk related to the issuers of these securities. The Company does not intend to sell these investment in fixed maturities, and it is not more likely than not that that the Company will be required to sell these investment in fixed maturities before recovery of the amortized cost basis. No allowance for credit losses related to any of these securities was recorded for the three months ended March 31, 2023. The Company does not measure an allowance for credit losses on accrued interest receivable and would instead write off accrued interest receivable at the time an issuer defaults or is expected to default on payments.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022 ($ in millions): March 31, 2023 Level 1 Level 2 Level 3 Total Financial Assets: Corporate debt securities $ — $ 545.4 $ — $ 545.4 U.S. Government obligations — 101.3 — 101.3 Asset-backed securities — 1.8 — 1.8 Fixed maturities $ — $ 648.5 $ — $ 648.5 Short term investments — 89.4 — 89.4 Total $ — $ 737.9 $ — $ 737.9 Financial Liabilities: Warrant Liability (1) $ — $ — $ — $ — (1) Fair value of Public and Private warrant liability amounted to less than $0.1 million as of March 31, 2023. December 31, 2022 Level 1 Level 2 Level 3 Total Financial Assets: Corporate debt securities $ — $ 530.2 $ — $ 530.2 U.S. Government obligations — 117.3 — 117.3 Asset-backed securities — 2.8 — 2.8 Fixed maturities $ — $ 650.3 $ — 650.3 Short term investments — 99.8 — 99.8 Total $ — $ 750.1 $ — $ 750.1 Financial Liabilities: Warrant Liability $ — $ — $ 0.3 $ 0.3 The fair value of all different classes of Level 2 fixed maturities and short-term investments are estimated by using quoted prices from a third-party valuation service provider to gather, analyze and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments. There were no transfers between Level 1, Level 2, or Level 3 during the three months ended March 31, 2023, other than the public and private warrants previously reported as Level 3 as discussed below. There were no transfers between Level 1, Level 2, or Level 3 during the year ended December 31, 2022. Warrant liability As part of the Metromile Acquisition as discussed in Note 5, public and private warrants were assumed and are measured at fair value on a recurring basis at the end of the reporting period, and classified as level 3 for fair value hierarchy disclosure purposes as of December 31, 2022. These warrants do not meet the criteria for equity treatment and are recorded as a liability and presented under "Other Liabilities and Accrued Expenses" on the consolidated balance sheet at fair value, with changes in fair value recognized and presented under "General and Administrative expenses" in the consolidated statement of operations and comprehensive loss. The Company utilized the binomial Monte-Carlo simulation to estimate the fair value of the warrants which were not actively traded as of December 31, 2022. As of March 31, 2023, the public warrants liability is classified as Level 1 for fair value hierarchy disclosure purposes, due to the use of an observable market quote in an active market, following the listing of the public warrants in New York Stock Exchange American. The Company also reclassified the private warrants liability from Level 3 to Level 2 as of March 31, 2023, as the Company considers the fair value of each private placement warrants to be equivalent to that of each public warrant, with an immaterial adjustment. The following table below presents the change in fair value of the warrant liability (Public and Private) ($ in millions): March 31, 2023 Balance as of January 1 $ 0.3 Initial measurement of warrants liability as of July 31, 2022 — Change in fair value (0.3) Balance as of March 31 (1) $ — (1) Fair value of Public and Private warrant liability amounted to less than $0.1 million as of March 31, 2023.

Unpaid Loss and Loss Adjustment

Unpaid Loss and Loss Adjustment Expense	3 Months Ended
	Mar. 31, 2023
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 three months ended March 31, 2023 and 2022 ($ in millions): Three Months Ended March 31, 2023 2022 Unpaid loss and LAE at beginning of period $ 256.2 $ 97.9 Less: Reinsurance recoverable at beginning of period (1) 124.6 72.7 Net unpaid loss and LAE at beginning of period 131.6 25.2 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 57.9 24.8 Prior years 5.7 (0.4) Total incurred 63.6 24.4 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 26.9 10.6 Prior years 39.5 10.8 Total paid 66.4 21.4 Unpaid loss and LAE, net of reinsurance recoverable, at end of period 128.8 28.2 Reinsurance recoverable at end of period (1) 116.4 79.4 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 245.2 $ 107.6 (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. Other factors that can impact loss reserve development may also include trends in general economic conditions, including the effects of inflation. The Company had unfavorable development on net loss and LAE reserves of $5.7 million for the three months ended March 31, 2023, and favorable development on net loss and LAE reserves of $0.4 million for the three months ended March 31, 2022. No additional premiums or returned premiums have been accrued as a result of prior year effects. For the three months ended March 31, 2023, current accident year incurred loss and LAE included $0.3 million of net incurred loss and LAE from Hurricane Ian, $9.6 million from winter storm Elliott and $0.9 million from the tornados that impacted customers in the Southeast. The net incurred loss and LAE from Hurricane Ian, winter storm Elliott and from the tornados as of March 31, 2023 represents the Company's best estimates based upon information currently available. In the ordinary course of business, the Company cedes losses and LAE to other reinsurance companies. These arrangements reduce the net loss potentially arising from large or catastrophic risks. Certain of these arrangements consist of excess of loss and catastrophe contracts, which protect against losses exceeding stipulated amounts. The ceding of risk through reinsurance does not relieve the Company from its obligations to policyholders. The Company remains liable with respect to losses and LAE ceded in the event that any reinsurer does not meet obligations assumed under the reinsurance agreements. The Company does not have any significant unsecured aggregate recoverable for losses, paid and unpaid including Incurred But Not Reported ("IBNR"), loss adjustment expenses, and unearned premium with any individual reinsurer. The Company maintained proportional reinsurance contracts which cover all of the Company's products and geographies, and transferred, or “ceded,” a specified percentage of the premium to reinsurers ("Proportional Reinsurance Contracts"). In exchange, these reinsurers paid a ceding commission for every dollar ceded, in addition to funding all of the corresponding claims at the same specified percentage as applied to premium. The Company opted to manage the remaining percentage of the business with alternative forms of reinsurance through non-proportional reinsurance contracts ("Non-Proportional Reinsurance Contracts"). The Company decreased the overall share of proportional reinsurance from 75% of the premium to 70% effective July 1, 2021, and to 55% effective July 1, 2022. In addition, the Company purchased a reinsurance program to protect against catastrophe risk in the U.S that exceed $80 million in losses effective July 1, 2022. Other non-proportional reinsurance contracts were renewed with terms similar to the expired contracts. Metromile entered into a Quota Share reinsurance agreement effective January 1, 2022 through June 30, 2023. Under the terms of the agreement, the Company cedes 30% of premiums and losses to reinsurers.

Other Liabilities and Accrued E

Other Liabilities and Accrued Expenses	3 Months Ended
	Mar. 31, 2023
Other Liabilities Disclosure [Abstract]
Other Liabilities and Accrued Expenses	Other Liabilities and Accrued Expenses Other liabilities and accrued expenses as of March 31, 2023 and December 31, 2022 consist of the following ($ in millions): March 31, December 31, 2023 2022 Lease liabilities $ 33.6 $ 35.2 Accrued advertising costs 11.0 6.8 Uncertain tax position 9.0 8.1 Employee compensation 7.7 12.8 Accrued professional fees 6.4 5.5 Advance premium 3.9 2.1 Premium taxes payable 3.6 6.2 Accrued hosting and software 2.5 2.0 Income taxes payable 0.7 0.6 Warrant liability — 0.3 Other payables 6.6 4.9 Total $ 85.0 $ 84.5

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common stock Upon closing of the IPO in 2020, 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. The Company completed a Follow-on Offering of common stock (the "Follow-on Offering") in 2021, 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 the Company of $525.7 million after deducting underwriting discounts and commissions and other offering costs. T he 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 the Company after deducting underwriting discounts . On July 28, 2022, the Company completed its acquisition of Metromile in which 6,901,934 shares of Lemonade's common stock were issued to Metromile stockholders as discussed in Note 5. As of March 31, 2023 and December 31, 2022, 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. The Company in 2020 made a contribution of 500,000 newly issued shares of common stock to a related party, the Lemonade Foundation (see Note 14). 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 March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022, there were no shares of undesignated preferred stock issued or outstanding. Warrants On October 14, 2022, the Company entered into an omnibus agreement (the “Omnibus Agreement”) and a warrant agreement (the “Warrant Agreement” and, together with the Omnibus Agreement, the “Agreements”) with Chewy Insurance Services, LLC (the “Warrantholder”) in connection with the execution of an agency agreement on the same date between the Company, Lemonade Insurance Agency, LLC, Lemonade Insurance Company and the Warrantholder. In connection with the Agreements, the Company is authorized to issue to Warrantholders 3,352,025 shares of the Company’s common stock underlying the warrants with an exercise price of $0.01 per share, which will vest in installments on a yearly basis for a period of five years, subject to certain performance requirements. Vesting events and thresholds as specified in the Warrant Agreement.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2023
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, 2023, the 2020 Plan share pool was increased by 3,463,751 shares, equal to 5% of the aggregate number of outstanding common stock as of December 31, 2022. As of March 31, 2023, there were 6,407,211 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 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, 2023, there was no increase in the 2020 ESPP share pool. As of March 31, 2023, 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 Incentive Share Option Plan ("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 March 31, 2023, 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. Assumed Share Option Plans As part of the Metromile Acquisition, the Company assumed the Metromile 2011 Incentive Stock Plan ("2011 Plan") and Metromile 2021 Incentive Stock Plan ("2021 Plan") (collectively referred to as "Assumed Plans"). The equity awards assumed of 404,207 were granted from the respective Assumed Plans but will be settled in the Company's common stock (see Note 5). The remaining unallocated shares reserved under both 2011 Plan and 2021 Plan were cancelled and no new awards will be granted under these Assumed Plans. Options granted to employees and non-employees The fair value of each option granted for the three months ended March 31, 2023 and 2022 is estimated on the date of grant using the Black-Scholes model based on the following assumptions: Three Months Ended March 31, 2023 2022 Weighted average expected term (years) 6.0 6.1 Risk-free interest rate 3.8% 1.7% Volatility 72% 48% Expected dividend yield 0% 0% Expected volatility is calculated based on implied volatility from market comparisons of certain publicly traded companies and other factors. 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 Topic 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, 2022 (1) 9,760,657 $ 39.43 8.17 $ 8.05 Granted 241,000 18.17 Exercised (37,331) 5.29 Cancelled (455,318) 39.14 Outstanding as of March 31, 2023 9,509,008 $ 38.89 7.75 $ 8.28 Options exercisable as of March 31, 2023 3,744,057 $ 28.97 6.31 $ 8.25 Options unvested as of March 31, 2023 5,764,951 $ 45.57 8.65 $ 0.02 (1) includes assumed options of 72,410 from the Metromile Acquisition (see Note 5) Restricted Stock Units Number of Shares Grant Date Outstanding as of December 31, 2022 (1) 1,651,243 $ 27.92 Granted 589,373 18.16 Vested (136,987) 27.69 Cancelled (103,689) 23.98 Outstanding as of March 31, 2023 1,999,940 $ 25.21 (1) includes assumed restricted stock units of 331,797 from the Metromile Acquisition (see Note 5) Stock-based compensation expense Stock-based compensation expense from stock options and RSUs granted are included and classified in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022, including assumed awards from the Metromile Acquisition for the three months ended March 31, 2023, as follows ($ in millions): Three Months Ended March 31, 2023 2022 Loss and loss adjustment expense, net $ 0.7 $ 0.6 Other insurance expense 0.5 0.3 Sales and marketing 1.2 1.5 Technology development 6.7 5.4 General and administrative 6.3 6.3 Total stock-based compensation expense $ 15.4 $ 14.1 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 March 31, 2023 2022 Stock options $ 11.0 $ 12.1 RSUs 4.4 2.0 Total stock-based compensation expense $ 15.4 $ 14.1 The total unrecognized expense granted to employees and non-employees outstanding at March 31, 2023 was $81.3 million for the stock options and $46.3 million for the RSUs, with a remaining weighted-average vesting period of 1.3 years for the stock options and 1.6 years for the RSUs.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The consolidated effective tax rate was (1.8)% and (3.0)% for the three months ended March 31, 2023 and 2022, respectively. The change in effective tax rate over the two periods was predominantly reflective of the change in profit before tax of the Company's foreign jurisdictions and uncertain tax positions. Our unrecognized tax benefits related to tax positions, excluding penalty and interest amounted to $9.0 million as of March 31, 2023, and there was none as of March 31, 2022. The increase was primarily driven by the implementation of transfer pricing methodology. Interest and penalties related to unrecognized tax expense (benefits) are recognized in income tax expense, when applicable. There was $0.1 million interest and penalties as of March 31, 2023, and there was none as of March 31, 2022. We believe it is reasonably possible that our unrecognized tax benefits could increase within the next 12 months.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
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 March 31, 2023 2022 Numerator: Net loss attributable to common stockholders ($ in millions) $ (65.8) $ (74.8) Denominator: Weighted average common shares outstanding — basic and diluted 69,334,103 61,698,568 Net loss per share attributable to common stockholders — basic and diluted $ (0.95) $ (1.21) The Company’s potentially dilutive securities, which include stock options and unvested RSUs, 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 the following potential common shares, presented based on amounts outstanding at each period end, 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. Three Months Ended March 31, 2023 2022 Options to purchase common stock 9,509,008 6,355,274 Unvested restricted stock 1,999,940 475,749 Warrants for common stock (1) 412,969 — Total 11,921,917 6,831,023 (1) Each outstanding warrant of Metromile assumed by the Company are converted automatically into warrants denominated in the Company's common stock with the number of warrants and exercise price adjusted based on the exchange ratio of 0.05263.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2023
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 travel expenses in the amount of less than $0.1 million for both the three months ended March 31, 2023, and March 31, 2022. The Company historically leased office spaces in the United States, the Netherlands and the U.K. from an affiliate. Rental expense in connection with the leased space was less than $0.1 million for both the three months ended March 31, 2023 and March 31, 2022. There were no outstanding amounts due from or to related parties as of March 31, 2023 and December 31, 2022. The Company’s Co-Chief Executive Officers, 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. The Company contributed 500,000 shares of common stock with a fair market value of $24.36 per share (see Note 10). In connection with the Follow-on Offering as discussed in Note 10, Lemonade Foundation sold 100,000 shares of the contributed shares of the Company. As of March 31, 2023, there were no outstanding amounts due to or from the Lemonade Foundation.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Litigation The Company is occasionally a party to routine claims or litigation incidental to its business. The Company records accruals for loss contingencies with these legal matters when it is probable that a liability will be incurred, and the amount of the loss can be reasonably estimated. Metromile Shareholder Litigation Matter Following the announcement of Metromile's acquisition by the Company, multiple complaints were filed against Metromile and certain former officers and directors alleging that Metromile’s disclosures concerning the transaction were incomplete. Metromile also received demands to inspect its books and records under Delaware General Corporation Law Section 220, and one stockholder commenced litigation to enforce inspection rights. All of the foregoing complaints have been voluntarily dismissed with the plaintiffs reserving their rights to seek a fee in connection with each respective litigation. The Company will continue to monitor all legal issues and assess whether to accrue liability in accordance with ASC 450 based on new information and as further developments arise. Charges and guarantees The Company provided guarantees in an aggregate amount of $2.8 million as of March 31, 2023 and $2.7 million as of December 31, 2022 with respect to certain office leases.

Geographical Breakdown of Gross

Geographical Breakdown of Gross Written Premium	3 Months Ended
	Mar. 31, 2023
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, inland marine, general liability and private passenger auto lines of business. Gross written premium includes direct and assumed premium. In December 2022, we began assuming premium related to car insurance policies written in Texas, in connection with our fronting arrangement with a third party carrier in Texas. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended March 31, 2023 2022 Jurisdiction Amount % of GWP Amount % of GWP California $ 45.5 27.7 % $ 27.1 24.5 % Texas 26.1 15.9 % 20.2 18.3 % New York 18.4 11.2 % 14.8 13.4 % New Jersey 8.6 5.2 % 5.3 4.8 % Illinois 7.1 4.3 % 4.4 4.0 % Washington 6.1 3.7 % 2.0 1.8 % Georgia 4.9 3.0 % 4.4 4.0 % Oregon 4.5 2.8 % 2.0 1.9 % Colorado 4.3 2.6 % 3.0 2.8 % Arizona 4.1 2.5 % 2.2 2.0 % All other 34.4 21.1 % 25.2 22.5 % $ 164.0 100.0 % $ 110.6 100.0 %

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
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 consolidated 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, intangible assets, valuation allowance on deferred tax assets and the valuation of stock-based compensation prior to the Company’s Initial Public Offering (the “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 primarily relates to security deposits for certain office leases. The Company also collects insurance policy premiums that it holds in a segregated cash account for transmittal to the underwriting carrier, or settlement of insurance related claims. The carrying value of restricted cash approximates fair value.
New Accounting Pronouncements	There are no new accounting standards not yet implemented that are expected to have a material effect on the Company's consolidated financial position or results of operations.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Cash and cash equivalents	The following represents the Company’s cash, cash equivalents and restricted cash as of March 31, 2023 and December 31, 2022: March 31, December 31, 2023 2022 Cash and cash equivalents $ 250.1 $ 282.5 Restricted cash 4.7 4.0 Total cash, cash equivalents and restricted cash $ 254.8 $ 286.5
Restricted cash	The following represents the Company’s cash, cash equivalents and restricted cash as of March 31, 2023 and December 31, 2022: March 31, December 31, 2023 2022 Cash and cash equivalents $ 250.1 $ 282.5 Restricted cash 4.7 4.0 Total cash, cash equivalents and restricted cash $ 254.8 $ 286.5

Acquisition of Metromile (Table

Acquisition of Metromile (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of purchase price for acquisition	Fair value of consideration transferred for the Metromile Acquisition is as follows ($ in millions): Metromile issued and outstanding stock exchanged for Lemonade common stock (1) $ 136.9 Contingent consideration (2) — Metromile vested awards exchanged for Lemonade awards (3) 0.8 Total Purchase Consideration $ 137.7 (1) The fair value of 6,901,934 shares issued and exchanged for Lemonade common stock was determined based on the closing price at acquisition date of $19.84, and includes a minimal amount of cash paid in lieu of fractional shares. (2) Contingent consideration represents Metromile's contingently issuable shares that are convertible into Lemonade common stock in accordance with the exchange ratio as set forth in the merger agreement. In accordance with ASC 805-30-25-5, contingent consideration shall be recognized and measured at fair value as of the Acquisition Date. Given that the contingencies are not probable of being met within the contingency period, no fair value was assessed for these Metromile shares. (3) Fair value of replacement awards related to services rendered prior to the acquisition are included as part of purchase consideration. The unvested portion of fair value attributable to these replacement awards of $4.3 million comprised of $0.1 million for assumed options and $4.2 million for assumed restricted stock units ("RSUs"), and associated with future service will be recognized as expense over the future service period.
Schedule of recognized identified assets acquired and liabilities assumed	The following table presents the preliminary allocation of purchase consideration recorded on the condensed consolidated balance sheet as of the Acquisition Date ($ in millions): Assets acquired Fixed maturities, available for sale, at fair value $ 1.8 Short-term investments 64.2 Cash, cash equivalents and restricted cash 98.8 Premiums receivable 17.4 Reinsurance recoverable 14.5 Property and equipment 4.6 Value of business acquired ("VOBA") 1.7 Intangible assets - technology 28.0 Intangible assets - insurance licenses 7.5 Other assets 14.7 Total assets acquired $ 253.2 Liabilities assumed Unpaid loss and loss adjustment expenses $ 84.4 Unearned premium 15.1 Trade payables 0.8 Ceded premium payable 12.0 Other liabilities and accrued expenses 22.2 Total liabilities assumed $ 134.5 Total identifiable net assets acquired $ 118.7 Total purchase consideration $ 137.7 Goodwill $ 19.0
Finite-lived and indefinite-lived intangible assets acquired as part of business combination	The amounts, based on preliminary valuations and subject to final adjustment, allocated to intangible assets are as follows ($ in millions): Fair Value Weighted-Average Useful Life Technology $ 28.0 3 to 5 years Insurance licenses 7.5 N/A Total $ 35.5

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Amortized cost and fair values	The following tables present cost or amortized cost and fair values of investment in fixed maturities as of March 31, 2023 and December 31, 2022 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses March 31, 2023 Corporate debt securities $ 560.0 $ 0.6 $ (15.2) $ 545.4 U.S. Government obligations 103.9 0.1 (2.7) 101.3 Asset-backed securities 1.8 — — 1.8 Total $ 665.7 $ 0.7 $ (17.9) $ 648.5 December 31, 2022 Corporate debt securities $ 549.7 $ 0.1 $ (19.6) $ 530.2 U.S. Government obligations 121.0 — (3.7) 117.3 Asset-backed securities 2.8 — — 2.8 Total $ 673.5 $ 0.1 $ (23.3) $ 650.3
Contractual maturities of bonds	The following table presents the cost or amortized cost and estimated fair value of investments in fixed maturities as of March 31, 2023 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. March 31, 2023 Cost or Fair Value Due in one year or less $ 213.0 $ 208.9 Due after one year through five years 452.7 439.6 Due after five years through ten years — — Due after ten years — — Total $ 665.7 $ 648.5
Net investment income	An analysis of net investment income follows ($ in millions): Three Months Ended March 31, 2023 2022 Interest on cash and cash equivalents $ 1.2 $ — Fixed maturities 2.9 0.9 Short-term investments 1.0 0.1 Total 5.1 1.0 Investment expense 0.1 0.1 Net investment income $ 5.0 $ 0.9
Aging of gross unrealized losses	The following table presents the gross unrealized losses and related fair values for the Company’s investment in fixed maturities, grouped by duration of time in a continuous unrealized loss position as of March 31, 2023 and December 31, 2022 ($ 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 March 31, 2023 Corporate debt securities $ 116.5 $ (1.8) $ 368.3 $ (13.4) $ 484.8 $ (15.2) U.S. Government obligations 29.3 (0.2) 53.6 (2.5) 82.9 (2.7) Asset-backed securities 1.8 — — — 1.8 — Total $ 147.6 $ (2.0) $ 421.9 $ (15.9) $ 569.5 $ (17.9) 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, 2022 Corporate debt securities $ 83.6 $ (2.1) $ 428.1 $ (17.5) $ 511.7 $ (19.6) U.S. Government obligations 29.6 (0.2) 85.1 (3.5) 114.7 (3.7) Asset-backed securities 2.8 — — — 2.8 — Total $ 116.0 $ (2.3) $ 513.2 $ (21.0) $ 629.2 $ (23.3)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of 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 March 31, 2023 and December 31, 2022 ($ in millions): March 31, 2023 Level 1 Level 2 Level 3 Total Financial Assets: Corporate debt securities $ — $ 545.4 $ — $ 545.4 U.S. Government obligations — 101.3 — 101.3 Asset-backed securities — 1.8 — 1.8 Fixed maturities $ — $ 648.5 $ — $ 648.5 Short term investments — 89.4 — 89.4 Total $ — $ 737.9 $ — $ 737.9 Financial Liabilities: Warrant Liability (1) $ — $ — $ — $ — (1) Fair value of Public and Private warrant liability amounted to less than $0.1 million as of March 31, 2023. December 31, 2022 Level 1 Level 2 Level 3 Total Financial Assets: Corporate debt securities $ — $ 530.2 $ — $ 530.2 U.S. Government obligations — 117.3 — 117.3 Asset-backed securities — 2.8 — 2.8 Fixed maturities $ — $ 650.3 $ — 650.3 Short term investments — 99.8 — 99.8 Total $ — $ 750.1 $ — $ 750.1 Financial Liabilities: Warrant Liability $ — $ — $ 0.3 $ 0.3
Schedule of warrant liability	The following table below presents the change in fair value of the warrant liability (Public and Private) ($ in millions): March 31, 2023 Balance as of January 1 $ 0.3 Initial measurement of warrants liability as of July 31, 2022 — Change in fair value (0.3) Balance as of March 31 (1) $ — (1) Fair value of Public and Private warrant liability amounted to less than $0.1 million as of March 31, 2023.

Unpaid Loss and Loss Adjustme_2

Unpaid Loss and Loss Adjustment Expense (Tables)	3 Months Ended
	Mar. 31, 2023
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 three months ended March 31, 2023 and 2022 ($ in millions): Three Months Ended March 31, 2023 2022 Unpaid loss and LAE at beginning of period $ 256.2 $ 97.9 Less: Reinsurance recoverable at beginning of period (1) 124.6 72.7 Net unpaid loss and LAE at beginning of period 131.6 25.2 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 57.9 24.8 Prior years 5.7 (0.4) Total incurred 63.6 24.4 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 26.9 10.6 Prior years 39.5 10.8 Total paid 66.4 21.4 Unpaid loss and LAE, net of reinsurance recoverable, at end of period 128.8 28.2 Reinsurance recoverable at end of period (1) 116.4 79.4 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 245.2 $ 107.6 (1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE

Other Liabilities and Accrued_2

Other Liabilities and Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2023
Other Liabilities Disclosure [Abstract]
Other liabilities and accrued expenses	Other liabilities and accrued expenses as of March 31, 2023 and December 31, 2022 consist of the following ($ in millions): March 31, December 31, 2023 2022 Lease liabilities $ 33.6 $ 35.2 Accrued advertising costs 11.0 6.8 Uncertain tax position 9.0 8.1 Employee compensation 7.7 12.8 Accrued professional fees 6.4 5.5 Advance premium 3.9 2.1 Premium taxes payable 3.6 6.2 Accrued hosting and software 2.5 2.0 Income taxes payable 0.7 0.6 Warrant liability — 0.3 Other payables 6.6 4.9 Total $ 85.0 $ 84.5

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Fair value assumptions	The fair value of each option granted for the three months ended March 31, 2023 and 2022 is estimated on the date of grant using the Black-Scholes model based on the following assumptions: Three Months Ended March 31, 2023 2022 Weighted average expected term (years) 6.0 6.1 Risk-free interest rate 3.8% 1.7% Volatility 72% 48% 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, 2022 (1) 9,760,657 $ 39.43 8.17 $ 8.05 Granted 241,000 18.17 Exercised (37,331) 5.29 Cancelled (455,318) 39.14 Outstanding as of March 31, 2023 9,509,008 $ 38.89 7.75 $ 8.28 Options exercisable as of March 31, 2023 3,744,057 $ 28.97 6.31 $ 8.25 Options unvested as of March 31, 2023 5,764,951 $ 45.57 8.65 $ 0.02 (1) includes assumed options of 72,410 from the Metromile Acquisition (see Note 5)
Restricted stock units activity	Restricted Stock Units Number of Shares Grant Date Outstanding as of December 31, 2022 (1) 1,651,243 $ 27.92 Granted 589,373 18.16 Vested (136,987) 27.69 Cancelled (103,689) 23.98 Outstanding as of March 31, 2023 1,999,940 $ 25.21 (1) includes assumed restricted stock units of 331,797 from the Metromile Acquisition (see Note 5)
Stock-based compensation expense	Stock-based compensation expense from stock options and RSUs granted are included and classified in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022, including assumed awards from the Metromile Acquisition for the three months ended March 31, 2023, as follows ($ in millions): Three Months Ended March 31, 2023 2022 Loss and loss adjustment expense, net $ 0.7 $ 0.6 Other insurance expense 0.5 0.3 Sales and marketing 1.2 1.5 Technology development 6.7 5.4 General and administrative 6.3 6.3 Total stock-based compensation expense $ 15.4 $ 14.1 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 March 31, 2023 2022 Stock options $ 11.0 $ 12.1 RSUs 4.4 2.0 Total stock-based compensation expense $ 15.4 $ 14.1

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 2022 Numerator: Net loss attributable to common stockholders ($ in millions) $ (65.8) $ (74.8) Denominator: Weighted average common shares outstanding — basic and diluted 69,334,103 61,698,568 Net loss per share attributable to common stockholders — basic and diluted $ (0.95) $ (1.21)
Antidilutive potential common shares	The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, 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. Three Months Ended March 31, 2023 2022 Options to purchase common stock 9,509,008 6,355,274 Unvested restricted stock 1,999,940 475,749 Warrants for common stock (1) 412,969 — Total 11,921,917 6,831,023 (1) Each outstanding warrant of Metromile assumed by the Company are converted automatically into warrants denominated in the Company's common stock with the number of warrants and exercise price adjusted based on the exchange ratio of 0.05263.

Geographical Breakdown of Gro_2

Geographical Breakdown of Gross Written Premium (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Gross written premium by state	The Company has a single reportable segment and offers insurance coverage under the homeowners multi-peril, inland marine, general liability and private passenger auto lines of business. Gross written premium includes direct and assumed premium. In December 2022, we began assuming premium related to car insurance policies written in Texas, in connection with our fronting arrangement with a third party carrier in Texas. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended March 31, 2023 2022 Jurisdiction Amount % of GWP Amount % of GWP California $ 45.5 27.7 % $ 27.1 24.5 % Texas 26.1 15.9 % 20.2 18.3 % New York 18.4 11.2 % 14.8 13.4 % New Jersey 8.6 5.2 % 5.3 4.8 % Illinois 7.1 4.3 % 4.4 4.0 % Washington 6.1 3.7 % 2.0 1.8 % Georgia 4.9 3.0 % 4.4 4.0 % Oregon 4.5 2.8 % 2.0 1.9 % Colorado 4.3 2.6 % 3.0 2.8 % Arizona 4.1 2.5 % 2.2 2.0 % All other 34.4 21.1 % 25.2 22.5 % $ 164.0 100.0 % $ 110.6 100.0 %

Nature of the Business (Details

Nature of the Business (Details)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage ownership in subsidiary	100%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash, cash equivalents and restricted cash	$ 250.1	$ 282.5
Restricted cash	4.7	4
Total cash, cash equivalents and restricted cash	$ 254.8	$ 286.5	$ 235	$ 270.6

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Jan. 14, 2021	Mar. 31, 2023	Dec. 31, 2022
Sale of Stock [Line Items]
Lease liabilities		$ 33.6	$ 35.2
Underwriter's option
Sale of Stock [Line Items]
Net proceeds from sale	$ 114.6

Acquisition of Metromile - Addi

Acquisition of Metromile - Additional Information (Details) - Metromile $ in Millions		3 Months Ended		8 Months Ended
	Jul. 28, 2022 shares	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($)
Business Acquisition [Line Items]
Percent of equity acquired	100%
Conversion ratio	0.05263
Shares issued for acquisition (in shares) | shares	6,901,934
Business acquisition, pro forma revenue				$ 19.8
Business Acquisition, Pro Forma Net Income (Loss)		$ 5.1
Transaction expenses			$ 0.5

Acquisition of Metromile - Sche

Acquisition of Metromile - Schedule of Fair Value of Consideration Transferred (Details) - Metromile $ / shares in Units, $ in Millions	Jul. 28, 2022 USD ($) $ / shares shares
Business Acquisition [Line Items]
Metromile issued and outstanding stock exchanged for Lemonade common stock	$ 136.9
Contingent consideration	0
Metromile vested awards exchanged for Lemonade awards	0.8
Total Purchase Consideration	$ 137.7
Shares issued for acquisition (in shares) | shares	6,901,934
Business acquisition, share price (usd per share) | $ / shares	$ 19.84
Remaining replacement awards, fair value	$ 4.3
Options to purchase common stock
Business Acquisition [Line Items]
Remaining replacement awards, fair value	0.1
RSUs
Business Acquisition [Line Items]
Remaining replacement awards, fair value	$ 4.2

Acquisition of Metromile - Sc_2

Acquisition of Metromile - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Jul. 28, 2022	Mar. 31, 2023	Dec. 31, 2022
Liabilities assumed
Goodwill		$ 19	$ 19
Metromile
Assets acquired
Fixed maturities, available for sale, at fair value	$ 1.8
Short-term investments	64.2
Cash, cash equivalents and restricted cash	98.8
Premiums receivable	17.4
Reinsurance recoverable	14.5
Property and equipment	4.6
Value of business acquired ("VOBA")	1.7
Other assets	14.7
Total assets acquired	253.2
Liabilities assumed
Unpaid loss and loss adjustment expenses	84.4
Unearned premium	15.1
Trade payables	0.8
Ceded premium payable	12
Other liabilities and accrued expenses	22.2
Total liabilities assumed	134.5
Total identifiable net assets acquired	118.7
Total purchase consideration	137.7
Goodwill	19
Metromile | Technology
Assets acquired
Intangible asset	28
Metromile | Insurance licenses
Assets acquired
Intangible asset	$ 7.5

Acquisition of Metromile - Amou

Acquisition of Metromile - Amounts Allocated to Intangible Assets (Details) - Metromile $ in Millions	Jul. 28, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 35.5
Technology
Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 28
Technology | Minimum
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	3 years
Technology | Maximum
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Life	5 years
Insurance licenses
Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 7.5

Acquisition of Metromile - Busi

Acquisition of Metromile - Business Combinations and Asset Acquisitions (Details) - Metromile - USD ($) $ in Millions	3 Months Ended	8 Months Ended
	Mar. 31, 2023	Mar. 31, 2023
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue		$ 19.8
Business Acquisition, Pro Forma Net Income (Loss)	$ 5.1

Investments - Amortized Cost an

Investments - Amortized Cost and Fair Values (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	$ 665.7	$ 673.5
Gross unrealized gains	0.7	0.1
Gross unrealized losses	(17.9)	(23.3)
Fair Value	648.5	650.3
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	560	549.7
Gross unrealized gains	0.6	0.1
Gross unrealized losses	(15.2)	(19.6)
Fair Value	545.4	530.2
U.S. Government obligations
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	103.9	121
Gross unrealized gains	0.1	0
Gross unrealized losses	(2.7)	(3.7)
Fair Value	101.3	117.3
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	1.8	2.8
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair Value	$ 1.8	$ 2.8

Investments - Additional Inform

Investments - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) security	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Investments, Debt and Equity Securities [Abstract]
Gross unrealized losses	$ 17.9		$ 23.3
Realized investment losses (less than)	0.1	$ 0.1
Gross unrealized losses, twelve months or more	$ 15.9		$ 21
Number of debt securities held, unrealized loss position | security	239
Financing receivable, allowance for credit loss	$ 0

Investments - Contractual Matur

Investments - Contractual Maturities of Bonds (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Cost or Amortized Cost
Due in one year or less	$ 213
Due after one year through five years	452.7
Due after five years through ten years	0
Due after ten years	0
Cost or Amortized Cost	665.7	$ 673.5
Fair Value
Due in one year or less	208.9
Due after one year through five years	439.6
Due after five years through ten years	0
Due after ten years	0
Fair Value	$ 648.5	$ 650.3

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net Investment Income [Line Items]
Gross investment income	$ 5.1	$ 1
Investment expense	0.1	0.1
Net investment income	5	0.9
Interest on cash and cash equivalents
Net Investment Income [Line Items]
Net investment income	1.2	0
Fixed maturities
Net Investment Income [Line Items]
Net investment income	2.9	0.9
Short-term investments
Net Investment Income [Line Items]
Net investment income	$ 1	$ 0.1

Investments - Aging of Gross Un

Investments - Aging of Gross Unrealized Losses (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value
Less than 12 Months	$ 147.6	$ 116
12 Months or More	421.9	513.2
Fair Value	569.5	629.2
Gross Unrealized Losses
Less than 12 Months	(2)	(2.3)
12 Months or More	(15.9)	(21)
Gross Unrealized Losses	(17.9)	(23.3)
Corporate debt securities
Fair Value
Less than 12 Months	116.5	83.6
12 Months or More	368.3	428.1
Fair Value	484.8	511.7
Gross Unrealized Losses
Less than 12 Months	(1.8)	(2.1)
12 Months or More	(13.4)	(17.5)
Gross Unrealized Losses	(15.2)	(19.6)
U.S. Government obligations
Fair Value
Less than 12 Months	29.3	29.6
12 Months or More	53.6	85.1
Fair Value	82.9	114.7
Gross Unrealized Losses
Less than 12 Months	(0.2)	(0.2)
12 Months or More	(2.5)	(3.5)
Gross Unrealized Losses	(2.7)	(3.7)
Asset-backed securities
Fair Value
Less than 12 Months	1.8	2.8
12 Months or More	0	0
Fair Value	1.8	2.8
Gross Unrealized Losses
Less than 12 Months	0	0
12 Months or More	0	0
Gross Unrealized Losses	$ 0	$ 0

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Hierarchy for Financial Assets and Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	$ 648.5	$ 650.3
Short term investments	89.4	99.8
Financial Assets:	737.9	750.1
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	545.4	530.2
U.S. Government obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	101.3	117.3
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	1.8	2.8
Warrant Liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities:	0	0.3
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	0	0
Short term investments	0	0
Financial Assets:	0	0
Level 1 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	0	0
Level 1 | U.S. Government obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	0	0
Level 1 | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	0	0
Level 1 | Warrant Liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities:	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	648.5	650.3
Short term investments	89.4	99.8
Financial Assets:	737.9	750.1
Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	545.4	530.2
Level 2 | U.S. Government obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	101.3	117.3
Level 2 | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	1.8	2.8
Level 2 | Warrant Liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities:	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	0	0
Short term investments	0	0
Financial Assets:	0	0
Level 3 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	0	0
Level 3 | U.S. Government obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	0	0
Level 3 | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	0	0
Level 3 | Warrant Liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities:	$ 0	$ 0.3

Fair Value Measurements - Chang

Fair Value Measurements - Change in Fair Value of Warrant (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Warrants Roll Forward [Abstract]
Warrants beginning balance	$ 0.3
Initial measurement of warrants liability as of July 31, 2022	0
Change in fair value	(0.3)
Warrants ending balance	0
Fair value of warrant liability (less than)	$ 0.1

Unpaid Loss and Loss Adjustme_3

Unpaid Loss and Loss Adjustment Expense - Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Unpaid loss and LAE at beginning of period	$ 256.2	$ 97.9
Less: Reinsurance recoverable at beginning of period	124.6	72.7
Net unpaid loss and LAE at beginning of period	131.6	25.2
Add: Incurred loss and LAE, net of reinsurance, related to:
Current year	57.9	24.8
Prior years	5.7	(0.4)
Total incurred	63.6	24.4
Deduct: Paid loss and LAE, net of reinsurance, related to:
Current year	26.9	10.6
Prior years	39.5	10.8
Total paid	66.4	21.4
Unpaid loss and LAE, net of reinsurance recoverable, at end of period	128.8	28.2
Reinsurance recoverable at end of period	116.4	79.4
Unpaid loss and LAE, gross of reinsurance recoverable, at end of period	$ 245.2	$ 107.6

Unpaid Loss and Loss Adjustme_4

Unpaid Loss and Loss Adjustment Expense - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended	12 Months Ended
	Jul. 01, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022
Effects of Reinsurance [Line Items]
Favorable development on net loss and LAE reserves		$ 5.7	$ (0.4)
Current accident year incurred loss and LAE		57.9	$ 24.8
Reinsurance program, minimum losses threshold		$ 80
Reinsurance Contract [Axis]: Premiums and Losses to Reinsurers
Effects of Reinsurance [Line Items]
Percent of contracts subject to participation through reinsurance		30%
Reinsurance Contract [Axis]: Proportional Reinsurance Contracts
Effects of Reinsurance [Line Items]
Percent of contracts subject to participation through reinsurance	55%			75%	70%
Hurricane Ian
Effects of Reinsurance [Line Items]
Current accident year incurred loss and LAE		$ 0.3
Winter Storm Elliot
Effects of Reinsurance [Line Items]
Current accident year incurred loss and LAE		9.6
Tornados In Southeast
Effects of Reinsurance [Line Items]
Current accident year incurred loss and LAE		$ 0.9

Other Liabilities and Accrued_3

Other Liabilities and Accrued Expenses (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Lease liabilities	$ 33.6	$ 35.2
Accrued advertising costs	11	6.8
Uncertain tax position	9	8.1
Employee compensation	7.7	12.8
Accrued professional fees	6.4	5.5
Advance premium	3.9	2.1
Premium taxes payable	3.6	6.2
Accrued hosting and software	2.5	2
Income taxes payable	0.7	0.6
Warrant liability	0	0.3
Other payables	6.6	4.9
Total	$ 85	$ 84.5

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended	12 Months Ended
	Oct. 14, 2022	Jan. 14, 2021	Mar. 31, 2023	Dec. 31, 2020	Dec. 31, 2022	Jul. 07, 2020
Sale of Stock [Line Items]
Common stock, authorized (in 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 (in 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 (in shares)			0		0
Preferred stock, outstanding (in shares)			0		0
Omnibus Agreement
Sale of Stock [Line Items]
Class of warrant issued of common stock (in shares)	3,352,025
Class of warrant common stock exercise price (usd per share)	$ 0.01
Vesting period	5 years
The Lemonade Foundation | Affiliated entity
Sale of Stock [Line Items]
Contribution to the Lemonade Foundation (in shares)			500,000	500,000
Follow-on Offering
Sale of Stock [Line Items]
Common stock sold (in shares)		3,300,000
Net proceeds from sale		$ 525.7
Follow-on Offering, Selling Shareholders
Sale of Stock [Line Items]
Common stock sold (in shares)		1,524,314
Follow-on Offering, Selling Shareholders | The Lemonade Foundation
Sale of Stock [Line Items]
Common stock sold (in shares)		100,000
Underwriter's option
Sale of Stock [Line Items]
Common stock sold (in shares)		718,647
Net proceeds from sale		$ 114.6

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) $ in Millions			3 Months Ended
	Jan. 01, 2022 shares	Jul. 02, 2020 shares	Mar. 31, 2023 USD ($) employee shares	Jul. 31, 2015 shares
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, stock options | $			$ 81.3
Unrecognized expense, period for recognition			1 year 3 months 18 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, RSUs | $			$ 46.3
Unrecognized expense, period for recognition			1 year 7 months 6 days
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)		5,503,678
Common stock reserved for issuance, annual increase, percentage of outstanding shares	5%	5%
Maximum shares that may be issued upon exercise of incentive stock options (in shares)		3,650,000
Additional shares authorized (in shares)	3,463,751
Common stock available for grant (in shares)			6,407,211
2020 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)		1,000,000
Common stock reserved for issuance, annual increase, percentage of outstanding shares		1%
Common stock available for grant (in shares)			0
Number of shares available for issuance, annual increase (in shares)		1,000,000
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)				7,312,590
Common stock available for grant (in shares)			0
Number of shares of common stock per exercised option | employee			1
2015 Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Expiration period			10 years
Incentive Stock Plan 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation equity awards granted (in shares)			404,207

Stock-based Compensation - Fair

Stock-based Compensation - Fair Value Assumptions (Details) - Stock options	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average expected term (years)	6 years	6 years 1 month 6 days
Risk-free interest rate	3.80%	1.70%
Volatility	72%	48%
Expected dividend yield	0%	0%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Options
Outstanding (in shares)	9,760,657
Granted (in shares)	241,000
Exercised (in shares)	(37,331)
Cancelled (in shares)	(455,318)
Outstanding (in shares)	9,509,008	9,760,657
Exercisable (in shares)	3,744,057
Unvested (in shares)	5,764,951
Weighted- Average Exercise Price
Outstanding (usd per share)	$ 39.43
Granted (usd per share)	18.17
Exercised (usd per share)	5.29
Cancelled (usd per share)	39.14
Outstanding (usd per share)	38.89	$ 39.43
Exercisable, weighted-average exercise price (usd per share)	28.97
Unvested, weighted-average exercise price (usd per share)	$ 45.57
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted-average remaining contractual, term	7 years 9 months	8 years 2 months 1 day
Exercisable, weighted-average remaining contractual, term	6 years 3 months 21 days
Unvested, weighted-average remaining contractual, term	8 years 7 months 24 days
Outstanding, aggregate intrinsic value, outstanding	$ 8,280	$ 8,050
Exercisable, aggregate intrinsic value	8,250
Unvested, aggregate intrinsic value	$ 20
Assumed from acquisition (in shares)	72,410

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Units Activity (Details) - RSUs	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Shares
Outstanding (in shares)	1,651,243
Granted (in shares)	589,373
Vested (in shares)	(136,987)
Cancelled (in shares)	(103,689)
Outstanding (in shares)	1,999,940
Grant Date Fair Value
Outstanding (usd per share) | $ / shares	$ 27.92
Granted (usd per share) | $ / shares	18.16
Vested (usd per share) | $ / shares	27.69
Cancelled (usd per share) | $ / shares	23.98
Outstanding (usd per share) | $ / shares	$ 25.21
Assumed (in shares)	331,797

Stock-based Compensation - Expe

Stock-based Compensation - Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 15.4	$ 14.1
Options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	11	12.1
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	4.4	2
Loss and loss adjustment expense, net
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.7	0.6
Other insurance expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.5	0.3
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1.2	1.5
Technology development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	6.7	5.4
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 6.3	$ 6.3

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	(1.80%)	(3.00%)
Unrecognized tax benefits	$ 9,000,000	$ 0
Unrecognized tax benefits, income tax penalties and interest accrued	$ 100,000	$ 0

Net Loss per Share - Reconcilia

Net Loss per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss attributable to common stockholders - basic	$ (65.8)	$ (74.8)
Net loss attributable to common stockholders - diluted	$ (65.8)	$ (74.8)
Denominator:
Weighted average common shares outstanding—basic (in shares)	69,334,103	61,698,568
Weighted average common shares outstanding—diluted (in shares)	69,334,103	61,698,568
Net loss per share attributable to common stockholders—basic (usd per share)	$ (0.95)	$ (1.21)
Net loss per share attributable to common stockholders—diluted (usd per share)	$ (0.95)	$ (1.21)

Net Loss per Share - Antidiluti

Net Loss per Share - Antidilutive Potential Common Shares (Details)		3 Months Ended
	Jul. 28, 2022	Mar. 31, 2023 shares	Mar. 31, 2022 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common stock (in shares)		11,921,917	6,831,023
Metromile
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Conversion ratio	0.05263
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common stock (in shares)		9,509,008	6,355,274
Unvested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common stock (in shares)		1,999,940	475,749
Warrants for common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common stock (in shares)		412,969	0

Related Party Transactions (Det

Related Party Transactions (Details)		3 Months Ended		12 Months Ended
	Jan. 14, 2021 shares	Mar. 31, 2023 USD ($) director $ / shares shares	Mar. 31, 2022 USD ($)	Dec. 31, 2020 shares	Dec. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Due to (from) related parties		$ 0			$ 0
Follow-on Offering, Selling Shareholders
Related Party Transaction [Line Items]
Common stock sold (in shares) | shares	1,524,314
The Lemonade Foundation | Follow-on Offering, Selling Shareholders
Related Party Transaction [Line Items]
Common stock sold (in shares) | shares	100,000
Affiliated entity | The Lemonade Foundation
Related Party Transaction [Line Items]
Number of shared directors | director		2
Contribution to the Lemonade Foundation (in shares) | shares		500,000		500,000
Contribution of common stock to related party, fair value (usd per share) | $ / shares		$ 24.36
Due from related party		$ 0
Travel related expenses | Key stockholder
Related Party Transaction [Line Items]
Expenses with related parties (less than)		100,000
Rental expense | Affiliated entity
Related Party Transaction [Line Items]
Expenses with related parties (less than)		$ 100,000	$ 100,000

Contingencies (Details)

Contingencies (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) employee	Dec. 31, 2022 USD ($)
Loss Contingencies [Line Items]
Number of Stockholders | employee	1
Office leases, payment guarantees
Loss Contingencies [Line Items]
Guarantees | $	$ 2.8	$ 2.7

Geographical Breakdown of Gro_3

Geographical Breakdown of Gross Written Premium (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 164	$ 110.6
Number of reportable segments | segment	1
Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	100%	100%
California
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 45.5	$ 27.1
California | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	27.70%	24.50%
Texas
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 26.1	$ 20.2
Texas | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	15.90%	18.30%
New York
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 18.4	$ 14.8
New York | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	11.20%	13.40%
New Jersey
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 8.6	$ 5.3
New Jersey | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	5.20%	4.80%
Illinois
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 7.1	$ 4.4
Illinois | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	4.30%	4%
Washington
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 6.1	$ 2
Washington | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	3.70%	1.80%
Georgia
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 4.9	$ 4.4
Georgia | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	3%	4%
Oregon
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 4.5	$ 2
Oregon | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.80%	1.90%
Colorado
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 4.3	$ 3
Colorado | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.60%	2.80%
Arizona
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 4.1	$ 2.2
Arizona | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.50%	2%
All other
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 34.4	$ 25.2
All other | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	21.10%	22.50%