The road ahead: Metromile to join Lemonade

Metromile was founded with a simple premise: insurance tailored to you, the individual.

It’s long been known that auto insurance is simply unfair to the majority of drivers. Drivers like you (and us!), who don’t drive much get into fewer accidents, yet historically paid the same rates as high mileage drivers who get in most of the accidents. We believe your insurance should be based on your own driving, not everyone else’s.

So from our earliest days, we’ve been laser focused on building the world’s fairest insurance with pay-per-mile auto insurance. We’re passionate about bringing far greater equitability to low mileage drivers, and we’re proud of how far we’ve come in just ten short years. 

Metromile today

Today, we have a loyal community of nearly 100k customers. We’ve proven that it is possible to offer high quality insurance at better rates than traditional carriers, along with an exceptional experience that supports drivers wherever the road takes them. 

We love hearing from our customers — we read every review, social media comment and in-app feedback. We love that you love the features we’ve created like car health monitors and budget trackers, our technology that creates fast and simple interactions, our licensed in-house agents, and the savings you’ve racked up by not racking up miles. In fact, Metromile customers save 47% on average over what you were previously paying for insurance. But we’re not ones to settle, so we’re eager to do more for you.

Also, as word of mouth spreads, we often hear from drivers who are eager to switch to Metromile but can’t because we aren’t available in the state where they live. Or, a customer moves to a state where we’re unavailable, and they are disappointed they can’t keep their Metromile insurance.

That brings us to today’s news 

Lemonade is acquiring Metromile, and we’re thrilled to embark on a new journey together. By joining forces with Lemonade we’ll be able to accelerate the growth of the most customer-centric, fair, and affordable car insurance to millions of drivers throughout the US, well beyond our current eight state footprint.

We also expect to accelerate our ambitious plans that meet (and anticipate!) the needs of the modern driver. Some of the things at the top of our list: 

  • Creating more ways to bundle and save for homeowners and renters alike, along with pet owners, too (Lemonade’s best-in-class homeowners, renters, and pet products are top-rated and loved by customers)
  • Investing in our connected car technology to align with advances in auto safety and autonomous driving
  • Taking the next big steps to reshape insurance pricing based on the individual, and moving away from unfair proxies

In short, we want to offer an even more delightful experience than anyone ever thought was possible in insurance. With Lemonade, we can make that happen.

We’re not joining forces with just any insurer

Lemonade is cut from the same cloth as us. They’ve built a stellar reputation for renters, homeowners, pet, and life insurance with more than one million customers. They’re a fully regulated public company, reinsured by some of the most trusted names on the planet, and listed on the New York Stock Exchange as LMND. 

Like us, the Lemonade team is obsessed with customer satisfaction, savings, reliability, and a fast and simple digital experience. 

We also love that Lemonade is a B-Corp and a public benefit corporation, which means the company meets a certain standard of performance indicators and social good metrics to balance profit and purpose. The company set on a mission to transform insurance from a necessary evil into a social good, and they certainly walk the talk — they donate what’s leftover from claims’ payouts to charities, in what’s called the Lemonade Giveback. In 2021 alone, Lemonade gave more than $2 million to charities chosen by their customers (and planted nearly 200k trees!). 

This is a unique opportunity to create value for our shareholders

Lastly, we believe this will be an excellent long-term outcome for our shareholders. Joining forces with Lemonade is a unique opportunity to position Metromile for exceptional growth, beyond what we believe would be achievable on our own over the same time period. As shareholders of the newly combined company, we will benefit from the advantages realized by bringing together Lemonade’s one million subscribers, growth expertise and Metromile’s distinctive competencies in auto insurance. data science, and claims automation. With a single brand, single platform, and unified team, we will be able to achieve faster scale, far more efficiently, realizing that value creation as Lemonade shareholders.

Beyond the core benefits of scale and efficiencies gained, Lemonade also presents our customers, old and new, with a single platform that addresses nearly all their insurance needs. Post-close, Metromile customers will be able to easily access home, renters, life, and pet insurance with a single brand and integrated digital experience. This has long been our North Star, and will help us more rapidly grow average customer lifetime value, which we believe will benefit us as Lemonade shareholders.

Finally, the combined entity will be well-capitalized with a strengthened balance sheet, ensuring we are fully resourced to achieve scale and profitability.

This transaction presents us an excellent opportunity for shareholder value creation as we build the future of insurance together with the Lemonade team. We could not be more excited about the upside ahead.

What’s next

We believe that there are no two better companies that can come together to maximize insurance as a force for social good.

We’re thrilled about the possibilities created by Metromile joining Lemonade and we hope you are too. We expect the deal will close sometime in 2022, so nothing is changing for the time being. Our customers won’t notice any changes, and no action needs to be taken. We will continue to meet your car insurance needs, while delivering incredible service, coverage and rates.

In closing, we’re reminded of one of our company values — “create fiercely loyal customers”. It’s core to who we are and the work we do, and we will remain unwavering in our commitment. We thank all of our customers for continuing to be part of our community. We look forward to the next stop on our journey together with Lemonade.