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Schreiber flags Lemonade growth figures in response to criticism

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Lemonade CEO Daniel Schreiber has pointed towards the company’s “explosive” growth as a key differentiator as he defends the company from criticism by short sellers.

In an interview on CNBC, Schreiber noted that it had taken USAA 47 years to reach one million customers, a milestone reached by Lemonade in just four.

He compared the digital transformation going on in the insurance industry to past technological shifts that have transformed other parts of the economy.

“We saw in recent years how people writing moved from paper to digital and how music moved from cassette and CDs to streaming MP3s and how film moved from chemical to digital.”

He said a common theme in all these technological revolutions was that “customers get amazing experience for a fraction of the cost” of what they were paying before.

He said it is now the insurance industry’s turn to witness a “changing of the guard,” with Lemonade leading the charge to digitally transform the industry.

Schreiber denied that the company was maneuvering to defend its stock price against short sellers, having issued $545mn in new shares last week.

“We actually take very little interest in our day-to-day-stock price,” Schreiber said.

He added that his fellow co-founder Shai Winnager had “taken umbrage” at people criticizing the company who had done “less than deep analysis,” producing reports that “weren’t compelling”.

Lemonade shares are currently trading at $150, giving the company a market cap of over $9bn. The company first listed on the New York Stock Exchange at $29 per share in January.

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