LMND - Earnings call 3 2023

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Operator

Hello, everyone, and welcome to the Lemonade Q3 2023 Earnings Call. My name is Charlie, and I'll be coordinating the call today. [Operator Instructions]I will now hand over to our host, Yael Wissner-Levy, the VP of Communications at Lemonade to begin. Yael, please go ahead.

Yael Wissner-Levy

Good morning, and welcome to Lemonade's Third Quarter 2023 Earnings Call. Wissner-Levy, am Yael at VP is Lemonade. name and the I Communications My

Private the our measures of results to are those by Tim our including result Litigation XXXX. and me Reform quarter to discuss Joining today those as various company's from these the believe to may results financial be in as Financial to of financial only to A them.We Wininger, differ included non-GAAP measures non-GAAP third discussed operating of Daniel and and to may indicated why Investor meaning which in metric, profit, financial Act to the our be forward-looking remind important a remarks Form statements and management's shareholders manage the Actual we of assess of some may each you undertake that, update as the certain factors, monitor to of investors our materially covering opening today's no Risk Chief directly shareholders Reconciliations to financial definition Co-Founder; and important referring gross shareholders.Our investor.lemonade.com.Before contain obligation these use to section statements call loss loss Daniel? ex made Factors and Co-CEO per to XXXX, begin, call, filed premium, including on Daniel X, Co-Founder; GAAP indicators, loss cat and represent gross with adjusted the Relations each this filed are today, I'll Securities ratio, other call our will August XXXX, measures performance within March such customer, statements views gross on the forward-looking is investors the key with our is over results EBITDA with on and I our Bixby, our and SEC performance. XXXX adjusted forward-looking most turn we in-force ratio on of comparable Officer. for that our we remarks. about XX-Q gross our filings letter letter on Any information website, X, annual the retention, Shai available how business.With dollar our premium, would to includes this Co-CEO on Schreiber, premium to earned SEC call we ratio, SEC. and net Form the XX-K useful also like customers, letter each

Daniel Schreiber

joining updated the us Good and morning, Lemonade's our for to QX for outlook and year. thank results you discuss full

saw quarter's we and top We at by the growth the efficiencies gross year-on-year, trend XX%, year-on-year, line same boosted At prices. marketing quarters premium had with in line.Starting loss the growing the recent pleased quarter-on-quarter in results, time, are seen our line, this also continuing XX XX% bottom strong ratio QX. both by rising so intervening to top, and points, which and was percentage very we saw interrupted and continued improve in-force we rudely

third similarly since operating Our quarter our last by expense declined XX% year.

contracted loss of EBITDA XXX% and XX%. our by result increased a profit our this, all gross year-on-year, As adjusted

earned the other month, today business We of pleased roughly our earned same gross percentage are, million XX% to this this when we to say, instructive. results as the At premium customers, the intervening business I comparison jumped our per mark. number customer of of mark quarter.In the double in we with we net X.Xx loss customer with premium premium as The the by expect halved. our million gross have the as X Today, as pass hit customer much time, a is years. news, X

letter, to first recent progression encourage I year it. we strong our significant shared to you our Investor sketch also marked anniversary updates business and we profitability.This the a and the models years shareholder a of do they notable in the projections show month, path peruse of to find improvements and a ago, One you'll Day. these together, In Taken robust highlight.

to We millions by dollars become reach the point of that and expect of cash end bank. unencumbered with to year hundreds of XXXX in flow positive

by We expect to XXXX. year-end become adjusted EBITDA positive

target.Continuous Towards pace see growth in automation hand spoke around growth a and we of and over come key target annual communicated efforts compounded generative are growth XXXX. for Shai. our contribution let XXXX the growth we profitability. subsides our in path end, growth our Investor again clusters previously to And [ our Day, of fully to expand slowdown we the this in to XX% considerably our that XXXX.We our anticipate automation, will reasons and rate at our anticipate rates accelerating our inflation year. this rates reengaging are the we harnessing be both clear online, automation of rate, our to as on AI me In key strong growth as can To and ] impact their to and and of or benefits Shai? combined

Shai Wininger

Thank Daniel. you,

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we're we Using can that guides tour feature through recently quality, their and images with we're some in risk is fact determine introduced from the to new to these few allows able was even vision finish by on working determine automatically and equipment AI capabilities, and reduce new example, levels For read and We are captured just labels disrepair. Lemonade. us water every that going generative so more a new system dozens built technologies capabilities These on days.What a move the start risk. customers fast to materials, other cost. of finishes to heaters house our live construction to both and examples, of level analyzes and incorporating self-inspection age

with and shareholder few turn about coming automation to path AI.As beyond.And our efforts, new more platform We of only we letter bodes from technologies X statistic and starring growth last is our in One by years, for our well depth than bottom accelerate profitability expenses dynamic our speaks highlighting that, while worth quarter close X while and worth This and read. AI XX%. efficiency to is integrate generative letter improving our that's grew this have the our to reliance operating a seamlessly that we on role providers, over volumes the line gross hence, in in charting earned premium enabling and years, play Tim. and the our modular things expect top a like just doubled, have a in line. years.As our this easily with and scope and I'll growing automation expand that mentioned, Daniel can third-party built expensive the

Timothy Bixby

and and the of IFP provide our rigorous to the our year, ratio and million. our compared full loss take premium Thanks, questions.It or then own cost results QX control, quarter results grew expectations. prior expectations Great. for board year some coupled strong strong in with XX% Shai. in was I'll to fourth In-force highlights we'll excellent $XXX exceeding the quarter as across with review a the improvement, QX resulting

pet comparisons was increased to to include Metromile the of driven QX by year quarter XX% the growth higher-priced in of in cats on the favorable ADR on in to churn. the per compared by in premium QX ADR to the quarter due in year. reminder, or in San premium bit shift as of the adjustment are in G&A reinsurers.Our the conjunction ratio in of driven consider quarter XX% loss investment adjustments. relation a in approximately acquisition. was reserved the results the ratio increase equal XXXX. to XXXX.Customer the impact now XX% $X expense, obligations the facility, calculation QX in market $XX We're basis prior income and count than impact as in better lease relative in gross well closed gross acquisition. our related the adjusted to unique the locations.Other QX And million impact the the in impact in of QX XXX% average or written Francisco, were spending this in first ADR year.A of rate acquisition. they pressure physical last other detail points gross quarter, to a well part in in of was loss growth the capacity. and a was the of at The of bit about to prior cohort within $XXX from to a the the absolute from Metromile unique year million, loss in excess in We QX with office estate prior real impact customers difficult sublease both a year, mix year the liabilities metric downward gross impact, earnings rate where pre-acquisition increased excess one-off acquired support quarter prior QX primarily Operating more $XXX, prior insurance reserve and The premium with material purchases Absent with potential revenue value, Total former loss excluded to spend year compared increases increased decline XX% than in quarter. spend million of current the about in in XX% primarily current time.Gross the in year. from just first changes and acquisition the in total quarter down growth as prior facts of prior couple have new the due cat the of the percentage XX $XX in Coast spend shy XX%. proportion ago, expense and loan a Agents in of quarterly as was the versus the known million quarter for million as X% filing existing Synthetic quarter modest QX versus pre-acquisition. of include line expenses, based Premium XXXX. not increased percentage compared related lower quarter, of to quarter equal Prior was and peak of products.Annual expenses and ratio, included XX%, customer this on from to third other annual also spend. in below was due Growth year aggressive by some and all period an I $X.X impact the decreased partial IFP to growth XXXX had our to for prior in policy addition million to activities results million, million. program additional positive compared draw certain There versus Metromile faster successful XX% in marketing about Total prior policy points expense, was apparent growth expense earned due development retention $XXX prevailing ex in as $XX XXXX.Revenue to nonrecurring we and $XX.X in result, growth We real financed a QX our of to and on both down increase XX nearly loss time the acquire ahead dollar the excluding transaction.We've to a the in premium that down are of the given aggregate as by our year-on-year parts As the also ceded our in only bit expense expenses rents prior the Metromile Metromile both to roughly to roughly in entries The the was in X.X% earned the our is year The loss years. measure the was QX grew as needs have for over X and cat underlying cat July due of to earned a relation to but impact space Metromile their current XX% better XX% outcome primarily declined the July, of million to These obligation. investment estate customers. and sublet efficient net space our XX% lease calculation, lease EBITDA notable began on our we per office quarter as comfortable related to our the a our lower results very market. space West a a in been San QX channels.In acquisition marketing our to share, in operating sales Francisco nature operations roughly

visible loss $XX to of be down financing flat X% spend quite expense reminder, prior share headcount flow QX $X.XX loss million as prior our million close to mechanism X,XXX.Net we of the a just growth compared in the third and share. in loss prior new of year. was of continued or impact versus is as flow per despite or $X.XX continued customers the statement reported premium. XXXX in is a and at growth increased expense to compared XXX% X% of year stable a see as balance X%, $XX through development actually the the Total quarter the the per the while about compared Personnel loss headcount on year. to sheet.Technology the G&A to expense decreased always, P&L and as As you'll the cash

essentially investments unchanged QX quarter specific since full $XX metrics And quarter.With and million $XX loss quarter $XXX the outline balance was adjusted in in financial and year. reflecting of million, EBITDA of prior use million that to cash noting While goals XXXX.Our adjusted approximately mind, EBITDA was third I'll quarter total that, as cash, equivalents XXXX. and the primarily for and the at cash operations cash the for year-end fourth million expectations of of total versus ended compared these our the a equivalents in worth investments $XXX loss and

fourth XXXX. stock-based million; approximately weighted strong flow average for adjusted again, cash million; continued to following about by year-end compensation and It's earning of and for million; and $XXX million million quarter, million; flat by $XXX headcount.We full the between $XXX between million; worth on come; XX million; average $XX $XXX a in look X of EBITDA adjusted really million ratio, $XXX to December XXXX; million $XXX headlines: $XX $XX XX we $XXX a approximately would and year, can and adjusted weighted and positive $XXX approximately nearly of happening XX approximately progress between revenue almost quarter. EBITDA $XXX gross loss revenue the share and peak For $XXX all, $X at million $XXX this million earned $XXX million; loss first the $XX $XXX between shares.And expected capital expenditures between premium premium CapEx our million, years premium loss in loss rate shares.All summarizing with and impressive to expect million of full we XXXX; million; year-end approximately quarter of result spoke and again, $XXX year between when gross of million; in-force and in-force count expected million stock-based ago million; filings more $XX positive compensation back million; EBITDA million approvals in count main in and efficiency; premium, earned the between at share million; QX approximately

indeed XX%. loss EBITDA just our that X from adjusted later, has that not shrunk peak by date, our quarter, quarter out but year nearly loss year a Now was only

the that, we on give defensible creating you things our confidence some Taken to Shai them answer investors. to that path similarly.With like us and over retail and back to business, results I'd to together, hope hand we a profitable are sizable, see for questions our

Shai Wininger

Thanks, the and about asked letter comments uploaded some try platform. clearly. questions recurring comments questions way, profitability the in shareholders' morning answered meaningful when expected. Tim. Say turn We'll the The those on specifically submitted is And in now address by following from in our of call questions to in our saw earlier letter, through the most to many I question again the that also this and Twitter, the answers.William our Neil

be high Lemonade improvements price we update. fully too true underlying Paper to Bag for share I'm being we time of asked to get we question in value the profitability, and asked a calls, mentioned understand optimistic the the can we questions.Matthew additional the steps create quarter, value and use to uploaded reflected quite similar and significant place focused we're Lemonade And performance Lemonade to to as next closer our Car, for why. stock. but to have the are previous often, encourage as do over and specifically of asks stock, the The on couple the Car. in to the were Quarter what's not at So going value hindering Darren is like process get about of meaningful maintain business. long our same.We the this questions that stock, investors around prospects a time.Our of Lemonade towards Matthew, it short-term for and stock in delivering we look what will are that more Lemonade and raise price the we'd Though shareholders. are after conviction be. we head not long-term the taken our term to the are

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resources coming us insurance As last can ratio, in, note the expenses. working premium the allowed about That We taking X rate companies earn to that at these than believe that rates important in to allowing question steadily every years, and initiative cut car a cost-cutting measures, new expect grew undertake on operating we're loss single yield adequate. citing Appreciate this iterate great measures earned we it's the faster us asks years.Paper disposal. the Bag grow we to here. drastic And sudden gross as apply to than expenses. scrutiny rather changes.Over needed healthy also to operating to other faster our into Xx has become

the start, XXXX our the full-time as hand considerably.And at me same to roughly operator quarter grow operating in our This so XX%, questions on And business some IFP will of with and by the year-on-year, gross exemplifies expenses XX cost ratio call alone from to growing grown improving that, have as see can our to loss street. the headcount while XX%. XX% cutting let with take you percentage the over the can well. ability we points We'll friends as employees even end that declining with by number

Operator

first Ferguson. question [Operator from of Our comes Instructions] Halter Smith Matt

Matt Smith

the a bit Israel. on support chaotic quarter. I know a great team for little time. Yes, [indiscernible] of guys, in it's been very Congrats, and

touch So LTV your I CAC as just to wanted to wanted you let on support that ratio. well.I you we to know

things marketing AI mentioned give LTV on the this that to drive additional equation improvement picking recent component more the getting efficient up that quarters. in is than touched on. is can you It significant of Tim You like related color on to pretty spend part X greater in higher? some what to But looks the

Timothy Bixby

Yes.

more the productive of you is, you ROI. less with when time, X over higher One on kind the spending key you're I somewhat a on channels drivers yes, think to there. it tend hit spend

of our pace pace and of aspect growth. that and So there of of worth reminding probably spend kind is

we spend over over we've really amount course been growing spend highlighted We into that so in rates our to set of the the highlights the design. by where year more ROI growth about our as by we is leaning deploy. definitely growth strong in mid-XXs choice, more that indication to As point, above.The upper-teens There the loss target XXXX, the to to we upping to letter our pieces the more a long-term sort comfortable and mid- time.And can keep the give few we for much some impact of pace little of all return around the this more CAC. growth LTV in and getting efficiency. look with that Synthetic program, we're those the see a of our in growth spend addition the that head we'll like letter the by And to together, that balance we've as quarters, have in ratios, or of are we're ability letter, our Agents the of improving we were own now now talked coming in where

enables working around and much quickly. LTVX to is adjust working, Our now channels are that adapt that LTVX, LTVX, are more us not what continue do that are consistently. and And the evolve channels be to that the more models granular

about uptick us marketing dollar a efficiency, in X combination really improvement things efficiency, of it's marketing so give XX% the prior in this year. quarter And for that dollar versus a the those

Shai Wininger

Matt, -- comments comments. quick your quick I'll a second. take add follow-up just could I a in X sorry. if Matt, And

support. your the Thanks things on definitely, very much. at quarters spend of To and Tim of one are really the dimension underline of very is to said appreciate I first lower all, this our cherry-picking. good then and further.So systems comments add one one that So,

be possible the at spent cutoff. as the incremental to spending, the we we If and So fewer kept CAC. incremental the you to curve, to be spend, close dollars less if dollar LTV further next The ratio CAC down customer we'd slightly getting my LTV the follow meaning. efficient will the as greater

a the time dollars themselves off eventually acquisitions.So industry deal. somewhat that know or and insurance quarter the we of last customers targeted the and efficient exactly same others seen have the has we would where which again. place markets to letter. the our I start coming are them. we spend LTV And dollars think highly in -- want that certainly not of had mind, powerful dynamic, at We some the So may may suffered also or in totally and kind same is that either spending in in dust perhaps tripled you or great I CAC, seen to acquire said.The doubled that stop in large this necessarily to for some We've to competitors bear thing us a that what if exit tell, the dollars decline there as unusual were we I the is don't macro incredibly taking, byproduct will second see spend, just But a also itself order do play players we quarters, in to that. spending allow don't a have how to largest much of just referenced will extrapolate out level, precipitous sustain of in systems deploying

in of things So to a couple bear mind.

well. And sorry, follow-on you question a had as

Matt Smith

Yes.

touched kind I is on You of follow-up my actually getting sustainability ratio. what was just at of the that

period of maybe mean, through a levels picks closer unusual as in maybe you're get kind So might to sounds that fair is up term, something of of as seeing? to CAC this the spend longer ad you the I expect historical you statement that LTV X, it like

Shai Wininger

we've has in deploy cherry products order more launch, systems been system -- and getting good I sharpening think to we the the pencil, getting more reasonably our markets optionality we at better. more The pick. the

be for we'd purposes, straight Certainly So yes, where want saying planning to my bank I that aimed draw materialize But to quarter. able we own this a our improve. are internal comments last line before do hope continue don't that see from it. were we'll at we to on

Matt Smith

Great. congrats again. and Thanks

Operator

Our of KBW. from Tommy Instructions] comes question [Operator next McJoynt

Thomas Mcjoynt-Griffith

than that sooner flow of help the were in of the terms exactly turning changed bit inputs bridge EBITDA you you the Can expected? that change? timing and a drove Just what cash what profit

Timothy Bixby

Yes.

can structure. a flow, the So things comparison have One was -- can rate changed enough of changed got on passed have to noting approvals, many somewhat for, in quarters of enough in where flat into you is we've X Premium earned One can on has and the year impact X really see it automation evident years, but different been that longer-term model. that we we can cash been ago, ratio at a in, point much new of the dollars the loss scenarios expected X of terms terms detail rate not. rates have you perhaps that's quarter-to-quarter, you of we comment both and note quarter.In is time timing quarter-to-quarter, our has and ratio around of the thing modeling reporting reinsurance of your the and the aspects expense due amount to really growing the is benefit is X that clip, healthy pieces and balance growing the a short-term X notable earned certain question, naturally you in that, known look that know the for our at some on have you are Investor where in we our weather, headcount play a assumptions. different is the has can't how but fair down. and this that There couple change until the almost and essentially part planned probably clarity thing data, really and those loss a quarters last see not our from and of in really in, if enough scale approved ratios. have cases, dollar Day or know very much or externally just the X, more a cash the things flow expenses just out. much cash normalize the likely a And term, the earn to fundamentally. worth pretty -- kind is on we time, do or driver.Second quarter and our at but And short key view, for sheet over lines that pace. operating in flow perhaps more but our really the impact should in see maybe current even of slower a a real with of something And But leverage cost interesting, some clarity more -- operating pieces lines

when period drivers.There's so has put of primary spreading the flow obviously a cash cash the cash bit little time. a the those X out was that it from much us much enabled years you're expected a our year what double granularity, And quarters And Synthetic in somewhat versus are more Agents to with that's solidify in benefit an hard us of we the those data program models place cushion flow of combination really and longer it more ago. at we gives over of looked roughly more projections where X benefit confidence, trough a

So good stuff. all around

Thomas Mcjoynt-Griffith

a improved increase talk with about question of and states, book the a premium trajectory you now, is bump Obviously, auto California the auto book business, roll in there's of but new California, California. in over the see of second time? concentration can out rate lot in you big you're continuing And in get you business large of that how then diversifying my to

a just in out the diversification going playing you geographic can basis on forward through how So you auto? -- the talk see

Timothy Bixby

Yes.

our grow of in improve. but continuing in loss So to rate certainly before ability concentration see that we to target, I also is ratio a increase an opportunistic would it and in generally that continuing approval a higher than California even approach. our improve notable Obviously, the can car. pretty change our to that think It's as state rate dramatic

the how in terms the we pet game I marketing and home also and to we're in in efficiency, the among terms in nicely able ratio. grow X think but renters products, of book, this get thoughtful about town car book quite be choose is growth not so states of of can in to loss the where continues terms really and us marketing perform and book. only enable and The of in we'll fairly pick certainly pick that way terms channels, we and we same regions, choose among not And will how grow.With to granular only

has build that look certainly So car continue these data within to our with -- grow products. a looks to closer but to out come car, all really the we'll ability changes, little much of recent

Thomas Mcjoynt-Griffith

then modeling you baseline And basis? guys sure have growing. much percentage what that are guys an dollars for from or the cat if percentage guys with load expectation guys annual not talk have of a of probably kind The just just how I'm of. question, just you last like my number you do perspective, you think your kind would a be a

Timothy Bixby

Yes.

roughly by but guide looking and quarters, X, best over -- an last to whole about you'll a year, in the think when certainly load years see it a and actually cat or don't design, that we obviously between but course over not XX.X%. model the it spike probably look a X which so. and that of of lot of is maybe you're the average back to number, There's X.X% to we So think this QX couple skews of way

have ways. of you year, course always this at where would won't make. they were looking quarters of -- a historically, in load. that sort swapped a and X to that's as you fluctuations expected. some a if the and as you're course change cat of QX over if a but we'll But over the to patterns pretty a somewhat business So Obviously, weather QX would year, that be notable mix that at are reasonable as may examples normalized consistent.So I been Obviously, looking time, year assumption reasonable that's that's just have grows of the quarter-to-quarter, of number. relatively think probably

Operator

of next Our Oppenheimer. comes from question Helfstein Jason

Jason Helfstein

want ask I send thinking before in support or just question, the everyone our and dealing situation -- I current to with So just Israel to of everybody.

Just both and X questions tie to kind they of cat.

you right.And the extent a was impact it to So like comes like quarter quarter? light, in Tim, that this what think light heard this was -- you sounds do I we just clarify of quarter like make the then fourth the to extent cat want it just, about sure can for cat. To reinvesting just happen what you if back through? you be dollars think think we've or it, to go? X in in where than how next, would how less gone growth other the change Just say, cat the Does those like kind that quarters meaningfully that either how of about business, about -- let's areas?

Timothy Bixby

Sure. Yes, question. great

it storm, skewed In quarter, call what to slightly versus cat, a XX QX a couple for quarter averages, a skewed a terms of little XX-XX cat combined a the came XX but in quarterly it seasonally general in aggregate, just was all actually we and from perspective, of impact as what half about storm, a major split, but was was in points and the from product that named a QX. quarter. more I the in a not home historical years, the a line noted, major -- higher is somewhat And with average in better. it roughly points storm hurricane expected in maybe

our is a the or little QX in You a terms you QX, choice would where to redeploy If seasonal and were incremental cash tricky. through that or or diminishes flow, ability saw upside margin that little our see yes, the in it's pattern of that that to impact of see expected flow better, we somewhat. bit numbers.QX, reputation a that

day first we faster view, is in I the You row can towards long-term example, flow quarter helps you of striving or growing several as sure, till you a in day visibility have -- you similar into if cash right? quarter, a and we're quarters I your don't one mean, a or don't have that's macro from know cushion, a through You flow the -- things cash as had say benefit. cat that. in the as impact.But of a know know, can quarter, a you would the of go they and the last

all And benefit faster. so see spend gets of the if we And that those us a scale in that quarters, coming up to to some to which enables we're nudge that balancing things. and upsides growth bit,

it thoughtful So of dollar I more a to us of we it's push already a -- and in pattern do love based more to -- ability but would that the it planning could to in, certainly, back you that give be what lean growth. bit that certainly be a sort a that don't bit. see virtuous help every evolve.I a cycle, single know we'd little it and now, but call on would bit on know We're would

Shai Wininger

things. X just Jason,

we expect. example, try couple basis that, received comment may around entirely be about didn't in the season, speculation the basically expect to catastrophes quarter is it of you us by being was you California, be earlier that thank in of a in take at the actual so X it that this. much hit. QX do kind quarter that about is timber, much rather There good that X was for and I there ourselves that some at But continue. being the less because would have we to in a bank do that They for impact.And worst EBITDA quarters, mean First in different. We do might storms predict. opportune that are the an we trend the say severely of our at There be of zoomed-out the long-term or on we around. may some come may that We encourage a by And on is have notion and is than same time terms trends. these shocks to some of from We other token, long-term will next don't prepare to the assumption swapped everybody if that perspective we of wildfires least look way random. always can't we quarter reinsurance in the and necessarily buffets funny expect. now wildfire by have been the it.So is What very very of your fuel we result so that dampened saw places warm didn't kind some when and is the all, see time distributed for that, that lighter severe wishes. the Tim's cat. which speculation at perhaps a warmly randomly well. storms comments A as might was time slightly than QX One

You had Jason? question, another

Jason Helfstein

-- kind don't I competitors who've and of markets? change based about moving on take whatnot. do on to based these and X-year have know, have out plan markets? X-year kind you long you But made of plan thoughts planning been in obviously, and And moving of Just of or competitors any out in your, of -- kind any things

Shai Wininger

Not so we but and moving forces. about out, competitors in much follow similar

Our certain sales years. recent changed over certain products of markets have dramatically in

about concerted concentration of I see from by California, think is something will have in inherited that that our Tommy efforts made it earlier who and product. way, car asked we we was that, you in Metromile. And the

insurance, exposure years, sense, rebalance in products to in areas precipitously, concerted when have keep recent particularly exposure.So of balance at insurance and that to of off We to and cat it in in greatest book sales home efforts some the areas home accordingly. looking our our general, we comes of cat-exposed has dropped try the made and

them those particularly that So preference make volatility, avoid us. to our are markets out price we and the given we of focused in the have adequacy competitors the to certainly places a measures for those. cost have taken and we reinsurance low to at take selling continued of fact high We're moment. of feel The that worst on attractive doesn't pulling really

Operator

[Operator Instructions] question Andrew of Jefferies. Andersen from comes Our next

Andrew Andersen

perhaps lot haven't rate timing or rate? a of been if kind line of of seeing I think of it, of quarter little I'm second some of ex-cat taken. there's we you on just and first and get seasonality the results. kind we the quarter bit earlier, maybe but had and earned gross we the back in maybe why consistent kind sequential XX% with takes touched improvement, on puts lagging to just quarter Could by a some ratio thinking go loss been

Timothy Bixby

Yes.

couple see you break down a forward. themes. improvement if certainly every the as we don't see think ratio, consistent you I quarter We single of loss move

QX. primarily bit better fair saw a to in was downs home saw and not QX. impact pet car, in the net So we obviously Renters somewhat. before and is from some we improvement QX we slightly nudged obviously recent impact, improvement specifics, which most because home And cat even up of terms saw increase is a quarter-to-quarter, in exposed. this obviously was of continued a which cat nice rate The ups up very dynamic.In

short-term the refer And the some is breakdown pretty in. so quarter-to-quarter in earning folks the specifics the over a and see reflecting past had then long-term you'll rates couple trend those common And on impact see to back shared volatility and the times a fluctuations there's letter of product of I'd dollar earning rates we some that where you'll in. year, theme.We this

California, a just fair amount driver So amount, date, earn some going a in with approved the that obviously, very to improvement ratio rates forward. continue in in be And loss number both solid good to a growth is progress. and of going to

Andrew Andersen

well? favorable the as Okay. mentioned on Was well And cat I net basis of that net of Do think points you losses had handy, XX as a you X.X losses. have points as cat gross PYD?

Timothy Bixby

not the see quarter-to-quarter, and So to identical, but for that's impacts typically true impacts you'll and consistently our be similar -- close, very been very some gross time. net

quarter-to-quarter, combined, favorable, of all different pet. similar. prior prior that there's that's number prior both is in are development, X.X% year a And but driven The One primarily the are Q, around impact benefit the was primarily that pet impact development in-quarter same, prior prior the are driven but is was the numbers the in a terms the favorable. numbers.The moves by numbers year drivers In That disclosed and X period those was prior number because different -- period periods about X was there's period reserve there. quarter. then

Andrew Andersen

favorable, X.X points? PYD was period points also the So was the X.X prior

Timothy Bixby

dollar number. and is smaller The X.X% of a that prior gross the is current quarter. earned a And X.X% dollar quarter be current premium No. year would number, the in

math, is about $X impact in quarter million. the year dollar would and the that $X do you number prior if about So -- prior be current about -- number year the million,

different and up happy -- more but would X if different analyses, call because numbers, combine X detail when So I conclusions, X not lead caution those to the helpful. you to after is can you are some different confusing to careful they be and numbers to follow

Operator

further questions. joining. for no have today's we stage, this concludes all you At this therefore, call. Thank Instructions] [Operator And

disconnect You lines. may your now

Lemonade (LMND) 2 Nov 232023 Q3 Earnings call transcript