Lemonade buys auto insurance AI co Metromile
Israel’s digital insurance company Lemonade (NYSE: LMND) today announced the acquisition of data science firm Metromile (Nasdaq: MILE), which focuses on AI for personalized auto insurance. The acquisition is an all-equity transaction that involves fully diluted net worth of approximately $ 500 million, or just over $ 200 million net of cash. Under the terms of the deal, Metromile shareholders will receive Lemonade common stock at a 19: 1 ratio.
Lemonade launches auto insurance
The acquisition comes a week after Lemonade, which already sells home and pet insurance, launched its auto insurance product in Illinois and announced plans to expand the auto insurance to other US states. Metromile is licensed to sell insurance in 49 states and currently operates in 8 of them, said Lemonade co-founder and COO Shai Wininger.
Metromile was a pioneer in digital auto insurance. The San Francisco-based company’s car-mounted precision sensors have made more than 400 million road trips in recent years, spanning billions of miles and sending real-time streams to the Metromile cloud. These are crossed with the actual loss data, which gives accurate forecasts of losses per mile traveled. These algorithms promise to propel Lemonade Car from a newcomer to auto insurance to its forefront.
Lemonade Co-Founder and CEO Daniel Schreiber said, “We launched Lemonade Car last week, and we think you’ll love the look and feel. Open the hood and you will see that it is powered by telematics and designed to learn from the data that it is. This is where Metromile comes in. They’ve come this route billions of times, and their proprietary data and machine learning algorithms can get us through the longest and most expensive parts of the journey. In a large and competitive market like auto insurance, today’s deal is a huge unlock of value for our customers and shareholders. “
Posted by Globes, Israel business news – en.globes.co.il – November 9, 2021.
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