Lemonade has entered a business financing agreement with Hannover Re that provides up to $250 million of capital to fund its sales and marketing growth efforts from January 1, 2027 through December 31, 2028. In the first year, Lemonade can access up to $150 million, with the full $250 million available starting January 1, 2028. Under the pact, Hannover will finance up to 80% of monthly growth spend, capped at $20 million per reference cohort, and Lemonade will repay each financed amount based on a percentage of premiums collected from the associated customer cohorts. The repayment includes the funded amount plus a rate of return equal to the greater of 0% or the three-year U.S. Treasury Bill rate plus 5.8%, after which Lemonade retains all future reference premium from each cohort. Lemonade stock fell 0.4% in premarket trading following the announcement.
Lemonade IncLemonade secures up to $250M financing from Hannover Re to fund sales and marketing growth.
Hannover Rück SEHannover Re enters a financing agreement providing capital to Lemonade, generating returns.