Insurtech firm Lemonade has completed this year's reinsurance renewal on better terms. The programme will be led by the same tier-one carriers as the expiring treaty, which is in effect for a standard 12-month term and oversubscribed on all dimensions. The core of the programme is 55 per cent quota share protection, the same level as in recent years. The variable ceding commissions are projected to be roughly equivalent to, or better than, those enjoyed under the outgoing agreements. Daniel Schreiber, CEO and cofounder at Lemonade, comments: “Partnering once again with the world’s largest and most respected reinsurers who have chosen to stake their capital on the performance of our business is a big deal for Lemonade.” Lemonade established Lemonade Re, a new risk-bearing entity, in the Cayman Islands last year to hold some of the retained risk. To retain most of Lemonade's windstorm exposure, the firm also established a captive cell at a Bermuda transformer. While windstorm reinsurance capacity was available, this structure was determined to offer a better cost-benefit profile.
