There are lots of insurtech companies out there, many already winning large sums of initial funding and venture capital investment. But will UK or NY stock markets support share offer launches, is the market ready to embrace an insurtech as a viable long term business that stands on its own merits as a brand?
Well Lemonade think the timing is right – and they may well be on the money. Arguably Lemonade’s USP is the sheer speed of its claims settlement, Millennial appeal and the remote, smartphone based, online aspect of its business model – but those aren’t features you can get IP protection on. Anyone can build faster eco-systems, any app can look slicker as regards under 35 yr old consumer appeal – in theory. The race online to build brands that deliver promptly on insured promises, whilst broadcasting the correct brand values as approved by the Twitterati, is going to be an interesting one.
Here’s the press statement re the IPO;
Lemonade, Inc. (“Lemonade”) has announced that it has filed a registration declaration on Form S-1 with the US Securities and Exchange Commission (“SEC”) regarding the public offering initial proposal of its ordinary shares, which will be listed on the New York Stock Exchange under the symbol “LMND”. The number of shares to be offered and the price range of the proposed offer have not yet been determined. The offer is subject to market conditions and no guarantee can be given neither on the fact that it will be completed or on the relative times nor on the actual dimensions or terms of the same.
Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Allen & Company LLC are operating as bookunners who manage the offer, while Barclays Capital Inc. is operating as bookrunner, and JMP Securities LLC, Oppenheimer & Co Inc., William Blair & Company, LLC and LionTree Advisors LLC are operating jointly as managers of the same.
The offer will be made only through a prospectus, a copy of which, as soon as available, can be obtained from any of the following sources:
- Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, or by calling + 1-866-471-2526 or by sending an email to prospectus-ny@ny.email .gs.com
- Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, New York 10014
- Allen & Company LLC, Attention: Prospectus Department, 711 Fifth Avenue, New York, NY 10022, or by calling +1 (212) 339-2696 or by sending an email to Dweidlein@allenco.com .
A registration statement on Form S-1 for these securities has been filed with the SEC but has not yet become effective. These securities cannot be sold nor can purchase offers be accepted before the time when the registration declaration becomes effective.
INDUSTRY COMMENT
Tim Hardcastle CEO and founder of INSTANDA comments on Lemonade IPO and its impact on the insurance market
“Last month, Willis Towers Watson’s Quarterly Insurtech Briefing Q1 2020 suggested that insurtech funding dropped by more than half during Q1. This is unsurprising, given the current climate. But the news of Lemonade’s IPO shows that the underlying message for the insurance industry is clear. The financial markets believe there are better ways to deliver insurance products and services.
“Lemonade embraces technology to bring more flexibility to the industry, delivering diversified products tailored to individual needs. Incumbents, meanwhile, have traditionally been held back by clunky legacy IT systems that often cause delay in responding to customer needs. The positive news, is that there are a number of flexible digital solutions out there for insurers, to enable them to embrace this new way of delivering appealing products.
“INSTANDA advocates that every insurer can and should have the flexibility of Lemonade, to deliver a seamless customer experience and the products that they know consumers need. Lemonade’s forthcoming IPO is therefore a strong market signal to insurers globally to the value of insurance, when it embraces flexibility, agility and operational efficiency.”
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