![](\"https:\/\/www.insurancejournal.com\/app\/uploads\/2021\/03\/bigstock-concept-for-audit-analysis-finance-forensics-206947645-580x387.jpg\")
<\/p>\nInsurtech Lemonade reported a third quarter 2025 net loss of about $37.5 million compared with a loss of $67.7 million a year ago during the same time.<\/p>\n
Revenue and gross profit increased 42% and 113%, respectively, versus Q3 2024. However, operating expense increased $16.7 million, or 13%, to $141.2 million.<\/p>\n
Now at nearly $1.2 billion, in force premium grew 30% in Q3.<\/p>\n
\u201cWe have demonstrated our ability to transform claims handling expense, long considered a variable expense in insurance, to a near fixed expense,\u201d Lemonade said in a letter to shareholders.<\/p>\n Lemonade said its car product continued to grow ahead of its schedule, with in force premium at $163 million at Q3, or about 40% growth year over year.<\/p>\n After nine months Lemonade has booked a net loss of $143.8 million compared with a net loss of $172.2 million in 2024.<\/p>\n Topics<\/span> Profit Loss<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n![](\"https:\/\/www.insurancejournal.com\/app\/uploads\/2023\/02\/Lemonade_Logo-300x157.jpg\"){kind=logo}
<\/a>The New York-based insurer of car, home, renters and pet insurance said the use of artificial intelligence has resulted in a \u201cnear tripling of claims handling efficiency.\u201d The loss adjustment expense ratio\u2014the cost of handled claims divided by gross earned premium\u2014was reduced to 7% in Q3. The company said it expects to cut the LAE ratio in half.<\/p>\n