Insurtech Lemonade has seen its shares rise more than twofold during its IPO.
Shares were priced at $29 dollars each, at which point approximately 11 million shares were sold. By lunch time in New York, the shares were valued at $60 each.
This valued Lemonade at over $3bn and by the time the stock market and IPO closed, it was over $4bn.
This is a sharp comparison to April 2019 when Lemonade has raised $300m capital in a Series D funding round led by Japan-based SoftBank Group.
Christian Wiens, CEO and founder at insurtech Getsafe, said: “The Wirecard scandal discredits the entire fintech sector. Customers are sceptical, and investors will be cautious. This isn’t the case for neo-insurers. Yesterday, Lemonade proved that neo-insurers are well equipped to deal with a crisis – like the one we are currently going through with COVID-19. They are successfully establishing themselves in the market.
“Their business model is designed to grow with (usually) young customers over the years. Customers pay for the service from day one. While they may have several current accounts or credit cards, they only have one type of liability or contents insurance, which they keep – especially in times of crisis.
“The successful Lemonade IPO is therefore a positive sign for us. Digital insurance is becoming the new standard, and neo-insurance providers such as Lemonade and Getsafe don’t have to shy away from comparisons with neo-banks. In fact, they should embrace these comparisons.”
Since the roll out of its homeowners and renters insurance in New York in late 2016, Lemonade is said to be one of the fastest-growing insurance companies.
Earlier this year, a new product line for pets was announced the company.
The consumers in the Dutch market will now be able to avail contents and liability insurance instantly, and file claims and get paid in instantly using the Lemonade app.
Furthermore, they will be offered Policy 2.0, which according to the company is a new insurance policy designed for the 21st century.
This policy covers against damages to properties, and events directly leading to damage or injury to others including fire, burglary, robbery, vandalism, and water damage.