Lemonade, Inc. · NYSE:LMND
Lemonade — Merger or Acquisition (November 2021)
10 slides from Lemonade's merger presentation, Nov 8, 2021
Slide 1: Lemonade Acquisition of Metromile
Lemonade Acquisition of Metromile November 8, 2021
Slide 2: Forward Looking Statement Safe Harbor
Forward Looking Statement Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this letter to shareholders that do not relate to matters of historical fact should be considered forwar
Slide 3: > 3 billion miles of highly textured, closed loop data
> 3 billion miles of highly textured, closed loop data 3
Slide 4: 3rd gen proprietary machine learning models using telematics data
3 gen rd proprietary machine learning models that leverage telematics data to predict risk 4
Slide 5: 47% average reported customer savings
47% average reported customer savings, while pure gross loss ratio is within ten percentage points of GEICO and Progressive’s direct business 5
Slide 6: Transaction Overview
Transaction Overview • Lemonade to acquire 100% of Metromile in an all-stock transaction • Metromile shareholders to receive Lemonade common shares at a ratio of 19:1, representing 6% premium to + • Metromile’s 30-day VWAP Deal reflects a fully diluted equity value of ~$500m and an enterprise value
Slide 7: Incumbent's Dilemma is Our Opportunity
Incumbent’s Dilemma is Our Opportunity “On the issue of • It is difficult for incumbents, with massive legacy businesses to matching rate to protect, to wholeheartedly adopt new technologies that call risk, GEICO clearly for a 30% rate decrease for two-thirds of their customers missed the bus and wa
Slide 8: Metromile Was Built for Precision Pricing
Metromile Was Built for Precision Pricing File using your best Metromile’s ten year head start at models harnessing AI & big data for car insurance gives them an unsurpassed ability to predict losses per mile driven Getting good The transaction should enable at car Lemonade to bypass the riskiest ph
Slide 9: Injecting Metromile's precision pricing into Lemonade Car
They Complete Us Growth Capital Injecting Metromile’s machine precision pricing Car-specific data science into Lemonade Car & Insurance Bundleable Brand completes the package expertise products Delightful customer experience 9
Slide 10: Financial Impact & Synergies
Financial Impact & Synergies • More than $100m of seasoned IFP • Bundling across both companies’ books Revenue • Accelerated growth trajectory enabled by faster state rollout • 2nd carrier can facilitate optimization of rates & forms across all lines of business • Ability to leverage Metromile’s dat