12 January 2026 Geraint Jones to retire as Group CFO with Rachel Lewis assuming the role from July 2026 Admiral Group announces that its Chief Financial Officer (“CFO”), Geraint Jones, has decided to retire from his role and will transition to a part-time role within the Group from July 2026. Geraint has been with Admiral for 24 years and a part of the Group’s executive leadership team and an executive director of the Admiral Group Board since 2014. Geraint has played a key role in the Group’s transformat ...

U.S. pet spending proved more resilient than many other consumer categories in 2025, even as households faced persistent affordability pressures, reinforcing the sector’s defensive appeal while exposing clear shifts in how and where money is being spent. According to the Bureau of Labor Statistics, pet and pet product inflation eased to 0.3% year over year in November, down from 1% in September, offering modest relief after years of elevated costs. Broader cost-of-living pressures persist, however, with ani ...

U.S. pet spending proved more resilient than many other consumer categories in 2025, even as households faced persistent affordability pressures, reinforcing the sector’s defensive appeal while exposing clear shifts in how and where money is being spent. According to the Bureau of Labor Statistics, pet and pet product inflation eased to 0.3% year over year in November, down from 1% in September, offering modest relief after years of elevated costs. Broader cost-of-living pressures persist, however, with ani ...

Core Insights - InsurTech companies like Lemonade Inc. (LMND) and EverQuote Inc. (EVER) are leveraging advanced technologies but face challenges such as lower interest rates, increased competition, and inflation [1][2] Group 1: Lemonade Inc. (LMND) - Lemonade has diversified its offerings beyond renters and homeowners insurance to include auto, pet, and life insurance, which strengthens its revenue base [3] - The auto insurance segment is performing well, with in-force premiums (IFP) reaching $1.16 billion, marking eight consecutive quarters of growth, and management projects year-end IFP of $1.218 billion to $1.223 billion [4] - Lemonade's reinsurance structure helps stabilize financial performance by transferring claims costs, resulting in loss adjustment expenses averaging 7% of premiums [5] - Geographic expansion into Europe provides additional revenue opportunities and a favorable regulatory environment, although the company has yet to achieve profitability [6] - Shares of LMND have increased by 116% year to date, but its return on equity is negative at -31.9%, lagging behind industry averages [7] Group 2: EverQuote Inc. (EVER) - EverQuote is positioned for long-term growth with a focus on property and casualty insurance and a debt-free balance sheet, supported by a proprietary data platform [10][13] - The company is investing in innovation to enhance monetization and strengthen relationships with advertisers, integrating proprietary data with various tools [11] - Inorganic growth through acquisitions, such as PolicyFuel, has expanded EverQuote's product offerings and increased exposure to the $135 billion commission-based market [12] - EverQuote has authorized a $50 million share repurchase program, reflecting management's confidence in its performance [13] - Shares of EVER have also rallied 116% year to date, with a return on equity of 38.2%, outperforming the industry [13] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for LMND's 2025 revenues indicates a 38.6% year-over-year increase, while EPS estimates show a 17.2% increase [14] - For EVER, the 2025 revenue estimate implies a 34.8% year-over-year increase, with EPS estimates indicating a significant 65.9% increase [15] - LMND's price-to-book ratio is 11.65, significantly above its three-year median of 1.85, while EVER's ratio is 5.6, above its median of 5.26 [17] Group 4: Conclusion - Lemonade is focusing on growth through acquisitions and expanding its market presence, targeting a 30% growth in in-force premiums by 2026 [18] - EverQuote aims to sustain growth by diversifying revenue and leveraging technology to attract consumers, positioning itself strongly in the digital insurance market [19] - Based on return on equity, EVER is currently a more attractive investment compared to LMND, with a Zacks Rank of 1 for EVER and 3 for LMND [20]

Welcome back to Market on Close. I'm Sam Vardis live from the floor of the New York Stock Exchange. It's time now for overlooked stock.Shares of Lemonade are on the rise after Morgan Stanley upgraded shares this morning. So I'm joined by George Sillis to get us across this one, senior markets correspondent. So what is exactly the analyst saying which is behind uh this note today as to why the shares are rallying up at 9% right now, George.>> Yeah, I mean you look at Lemonade. In fact, in the last year, the ...

Core Insights - Lemonade Inc. (LMND) presents a strong long-term investment opportunity, driven by consistent growth in premiums-in-force (IFP), supported by a robust product portfolio, geographic expansion, and technological advancements [1] Group 1: Premium Growth - In the third quarter, IFP reached $1.16 billion, marking the eighth consecutive quarter of accelerating growth, with management projecting year-end IFP between $1.218 billion and $1.223 billion and a 30% growth in FY 2026 [2][8] - The growth in IFP is attributed to a strong product portfolio and AI-driven enhancements in segmentation and pricing [2][3] Group 2: Product and Geographic Expansion - Lemonade has diversified its offerings beyond renters and homeowners insurance to include auto, pet, and life coverage, while also expanding geographically into Europe, which provides lower catastrophe exposure and a favorable regulatory environment [3] - The use of artificial intelligence and telematics in underwriting has improved retention and risk selection, contributing to a more stable long-term IFP [3] Group 3: Efficiency and Operational Leverage - The improvement in IFP has led to a reduction in loss adjustment expense (LAE) to an average of 7% across all products, with a notable 600 basis points improvement in the LAE ratio over the past three years [4] - This enhanced efficiency strengthens the visibility into recurring premium streams and improves operational leverage across Lemonade's business [4] Group 4: Market Performance and Valuation - LMND shares have increased by 100.6% year-to-date, although this performance has underperformed the industry [7] - The stock is currently considered overvalued, trading at a price-to-book multiple of 10.33, significantly higher than the industry average of 2.4 [9] Group 5: Earnings Estimates - The Zacks Consensus Estimate for LMND's 2025 earnings has increased, while the estimate for 2026 has decreased in the past 30 days, indicating a 16.8% year-over-year increase for 2025 and a 32.3% increase for 2026 [10][11] - Revenue estimates for both years also suggest year-over-year improvements, with LMND holding a Growth Score of A [11]

Core Insights - The insurance industry is experiencing rising claim costs, leading to increased premiums across various sectors, including auto, home, pet, and health insurance [1] Auto Insurance - Auto insurance premiums have increased by over 64% from September 2020 to September 2025, significantly surpassing the general inflation rate of 25% during the same period [2] - There is a possibility of a decline in auto insurance rates in 2026 for the most qualified drivers, driven by advancements in safer car technology and high business growth expectations, although rising repair costs and persistent inflation may counteract this trend [3] Homeowners Insurance - Homeowners insurance rates are projected to rise by a total of 16% in 2026 and 2027, with challenges in obtaining coverage in high-risk areas due to insurers withdrawing from states prone to natural disasters [4] Technology in Insurance - The role of technology, particularly artificial intelligence, is expected to expand in insurance underwriting, aiding in risk assessment, fraud detection, and claims processing [5] Pet Insurance - Access to pet insurance through workplace benefits is anticipated to improve, with premiums expected to rise modestly due to increasing veterinary costs and advanced treatment options [6] - Early enrollment of pets is recommended to minimize exclusions and maximize coverage value [6] Health Insurance - Health insurance premiums are expected to increase in 2026, driven by administrative costs rather than care delivery, which may lead employers to explore direct-to-provider networks as an alternative to traditional health plans [7]

Investment Rating - The investment rating for ZhongAn Online P&C Insurance is "Buy" with a target price of HK$24.00, representing an expected share price return of 46.4% [5]. Core Insights - The company aims to maintain a combined ratio (CoR) of approximately 95-96% in its domestic P&C insurance business, with significant growth opportunities identified in health, innovative, and auto insurance sectors [2]. - The customer base of ZA Bank has expanded to 1.2 million, with expectations to break even in FY25E, driven by the launch of H-share trading services and a focus on retail customers [3]. - Management anticipates notable improvement in FY25E net profit due to stabilized profitability in domestic underwriting, breakeven of ZA Bank, and increased investment returns [4]. Summary by Sections Domestic P&C Insurance Business - Management expects ample opportunities in health insurance driven by regulatory support and product offerings, pet insurance expansion, and rapid growth in auto insurance due to online purchase penetration and expense rationalization [2]. - The CoR for auto insurance was reported at 91% in 1H25, attributed to a higher mix of household vehicles [2]. ZA Bank - ZA Bank's customer base grew from approximately 1 million to 1.2 million, with plans to target foreign passport holders in 2026E [3]. - The number of wealth management accounts exceeded 300,000, and customer acquisition costs have significantly decreased [3]. Financial Performance - Management expects a notable improvement in FY25E net profit, driven by the stabilization of the domestic underwriting business and narrowing losses in the technology segment [4].

Core Insights - Lemonade, Inc. is a technology-driven insurance company utilizing artificial intelligence to enhance its services and differentiate itself from traditional insurers [1] - The company has seen a significant stock price increase of 214% over the past year, despite 42% of analysts recommending to sell [3] - Morgan Stanley has raised its price target for Lemonade from $45 to $49 while maintaining an "Underweight" rating, indicating a cautious outlook [2] Financial Performance - Lemonade's market capitalization is approximately $5.77 billion, with a trading volume of 2,800,647 shares [4] - The company is approaching profitability on an adjusted EBITDA basis, showing consistent high growth and improving financial performance [4] - The stock is currently trading at around $78.87, with a recent increase of $3.85, or 5.13% [3] Market Activity - During a recent trading day, Lemonade's stock fluctuated between a low of $75.52 and a high of $80.12 [3] - The third quarter was particularly strong for the company, contributing to positive market reception [4]

Financial Data and Key Metrics Changes - In force premium grew to $1.16 billion, marking an eighth consecutive quarter of accelerating growth, with revenue up 42% year on year and in force premium growth at 30% [4][12] - Gross profit more than doubled to $80 million, with an adjusted gross profit of $81 million, resulting in a gross margin of 41% and an adjusted gross margin of 42% [13][14] - Adjusted EBITDA loss improved by about 50% year on year to a loss of $26 million, while operating cash flow was positive at $4 million [14][18] Business Line Data and Key Metrics Changes - The Car segment saw a 40% growth, with over half of that growth coming from existing Lemonade customers [4][5] - The gross loss ratio improved to 62%, an 11 percentage point year-on-year improvement, while the trailing 12-month gross loss ratio improved to 67% [12][14] - The LAE (Loss Adjustment Expense) ratio averaged 7%, significantly better than the industry average of 9% [10][11] Market Data and Key Metrics Changes - Customer growth was 24%, with a record addition of over 176,000 net new customers in the quarter [12] - Annual dollar retention (EDR) improved by 1 point to 85% compared to the prior quarter [15] Company Strategy and Development Direction - The company is focused on maximizing gross profit dollars rather than strictly adhering to loss ratio targets, allowing for flexibility in pricing strategies [6][62] - The introduction of the LOCO platform is expected to accelerate product development and operational efficiency [21][22] - The company is well-positioned to capture market opportunities in the evolving landscape of car insurance, particularly with the shift towards usage-based pricing [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EBITDA profitability in Q4 of next year, with expectations for continued growth and improved profitability metrics [18][45] - The company anticipates a strong Q4, with revenue guidance implying a growth rate of approximately 49% year-on-year at the high end [19][20] Other Important Information - The company raised its full-year 2025 guidance across in force premium, gross earned premium revenue, and EBITDA loss [18] - The integration with Tesla's API is expected to enhance data collection for pricing and underwriting [25] Q&A Session Summary Question: How does the level of CAC-less customers compare to prior periods? - The 50% rate of CAC-less customers has been stable for several quarters, with a focus on driving customers to multiple policies [28][29] Question: Was there a contingent or profit share tailwind in the ceding commission in Q3? - The ceding commission was positively impacted by improved loss ratios, with an effective ceding commission rate of about 28% for the quarter [32][33] Question: Where does the company rate itself in terms of AI utilization? - The company utilizes AI extensively across its operations, with significant improvements in efficiency, but acknowledges that there is still much more potential to explore [40][41] Question: Is the company considering leaning more into growth at the expense of profitability targets? - The company remains committed to its EBITDA profitability target for Q4 of next year while optimizing for gross profit dollars [45][46] Question: What drove the decrease in the gross loss ratio in Europe? - The European business is experiencing significant growth and improved loss ratios due to better pricing flexibility and operational efficiency [71][72]