Lemonade’s stock rallies 9% after insurance company narrows quarterly loss

Shares of Lemonade Inc.
LMND,
+0.55%
rose more than 9% in the extended session Wednesday after the mobile-based insurance company narrowed its quarterly loss and revenue topped expectations. Lemonade lost $61.5 million, or 88 cents a share, in the quarter, compared with $91.4 million, or $1.37 a share, in the third quarter of 2022. Revenue rose 55% to $114.5 million, the company said, mostly on an increase in gross earned premiums. FactSet consensus expected the company to report a GAAP loss of 94 cents a share on sales of $104.5 million. The company said its customer count increased by 12% year-on-year. Lemonade is on course to deliver “excellent loss ratios and expense ratios,” and its “structural advantages are already visible if you are willing to look beyond our growing pains,” the company said in a letter to shareholders.