Lemonade's gross written premium nearly triples in UK, slips in Germany

US personal lines insurer Lemonade Inc. nearly tripled its UK gross written premium year over year in 2025, while its German business shrank for the second consecutive year, according to regulatory filings.

Lemonade's European operation, Lemonade Insurance NV, reported UK gross written premium of €28.6 million in 2025, up 190.8% from €9.8 million in 2024, according to solvency and financial condition reports published by the company.

Lemonade also grew rapidly in France, with gross written premiums increasing 70.4% to €7.3 million from €4.3 million. The Netherlands gross written premium was up 15.9% to €4.1 million from €3.5 million.

In Germany, however, gross written premium was down 10.8% year over year to €804,883 in 2025 from €902,546. The 2024 figure was down 6.9% from €969,068 in 2023.

Overall, Lemonade Insurance NV's gross written premium more than doubled to €40.8 million in 2025 from €18.6 million in 2024. Despite its fast growth, the European business remains a small portion of Lemonade, which reported gross written premium of $1.17 billion in 2025.

2025 growth

Lemonade Insurance NV's 2025 growth was achieved "by diversifying its distribution channels as well as launching additional home insurance products in the UK and the Netherlands," the company said in its 2025 solvency and financial condition report.

Lemonade launched stand-alone buildings insurance in the UK in August 2025 and homeowners insurance in the Netherlands in September 2025.

Additionally, Lemonade Insurance NV said it focused on profitability in 2025 "by enhancing its pricing and risk selection practices."

Lemonade is still not making an underwriting profit in Europe. In 2025, Lemonade Insurance NV's combined ratio — a measure of underwriting profit — was 168.7%, according to S&P Global Market Intelligence calculations. A combined ratio above 100% denotes an underwriting loss. However, the 2025 ratio represents an improvement over 2024's 209.4% and is the lowest combined ratio Lemonade Insurance NV has recorded in the past five years.

A strong year

2025 was a "strong year" for Lemonade in Europe, Ron Voortman, head of Europe at Lemonade, said in an emailed comment to Market Intelligence.

"We continued to build strong momentum, driven by product expansion, broader distribution, and continued progress in pricing and underwriting," Voortman said. "This growth was accompanied by meaningful improvement in underwriting performance, with the combined ratio improving to its lowest level in five years, while solvency remained healthy and comfortably above our risk appetite target."

"Overall, we're encouraged with the trajectory of our European business and the tailwinds outlined in our 2025 shareholder letter," Voortman added.

The company said in a shareholder letter that its European business had seen "strong momentum" in both direct and price comparison sales channels, complemented by deepening strategic partnerships.

Lemonade Insurance NV's Solvency II coverage ratio fell to 198% in 2025 from 223%, but remained above the company's risk appetite target of 135%. The company's solvency capital requirement under the Solvency II regime increased to €18.6 million in 2025 from €12.8 million in 2024, while the capital to meet this requirement, known as eligible own funds, increased to €36.8 million from €28.5 million.

EU expansion

The UK is the most recent addition to Lemonade's European unit. It started writing in the UK in October 2022 in partnership with UK multiline insurer Aviva PLC.

Lemonade, which started its writing business in the US in September 2016, launched in Europe in mid-2019. While Lemonade's European entity is based in the Netherlands, its first market was Germany. It added the Netherlands and France in 2020.

In its solvency report, Lemonade Insurance NV reiterated Lemonade's intention to expand to more EU member states. In 2026, Lemonade Insurance NV will prepare for further expansion of its product range in existing markets and focus on enhancing its distribution presence, according to the report.

The company expects to increase the use of data science models as well as generative and non-generative AI models. This, in combination with the growth and diversification of its business, is anticipated to support improving profitability.