There were no S&P 500 earnings reactions on Wednesday, but insurance stocks continue to stand out to us.
And there's one name in particular that we love.
Lemonade $LMND is a $6B property and casualty insurance company built from the ground up as a technology platform, not a legacy insurer.
Instead of relying on agents, paperwork, and manual underwriting, they use AI and automation to price risk, underwrite policies, handle claims, and scale customer acquisition with far lower friction than traditional incumbents.
The company operates across renters, homeowners, pet, and auto insurance, and its long-term edge is rooted in one thing: using data and software to turn insurance into a scalable, high-margin business.
That strategy is starting to pay off in a very visible way.
Fundamentally, Lemonade is showing accelerating growth alongside rapid improvement in unit economics.
In its most recent quarter, in-force premium surged to over $1.15B, growing 30% year-over-year, while gross profit more than doubled and margins expanded sharply.
Loss ratios continued to improve, operating leverage is kicking in, and the path toward sustained profitability is becoming clearer with each report.
It's becoming a growth-plus-efficiency story, and the market is responding accordingly.
You can see that clearly in the earnings reaction data.
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