Why Lemonade Stock Leaped Today

Yahoo Finance ·

Shares of Lemonade ( LMND +10.04% ) furthered their recent ascent on Monday. Investors are growing increasingly intrigued by the future earnings power of the artificial intelligence ( AI )-powered insurance provider. The market continues to reprice Lemonade's shares following its announcement on June 30 that it renewed its reinsurance program on significantly better terms. Lemonade will now cede about 18% of premium to reinsurers, down from a prior 20%. The new agreement also increases Lemonade's catastrophe protection.

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