Loan & DebtJun 24, 2026, 08:07 AM
Lemonade Secures $250M Growth Financing from Hannover Re
AI Summary
Lemonade, Inc. has entered into a New Business Financing Agreement with Hannover Re (Ireland) DAC to secure up to $250 million in capital. This funding will support the company's sales and marketing growth efforts ("Growth Spend") from January 1, 2027, through December 31, 2028. The agreement outlines monthly financing of up to 80% of Growth Spend, capped at $20 million per customer cohort, with repayment tied to collected premiums plus a rate of return.
Key Highlights
- Lemonade signed a New Business Financing Agreement with Hannover Re on June 22, 2026.
- Hannover Re will provide up to $250 million for Lemonade's sales and marketing growth efforts.
- The funding period is from January 1, 2027, through December 31, 2028.
- Maximum outstanding capital is $150 million from Jan 1, 2027, to Dec 31, 2027.
- Maximum outstanding capital is $250 million from Jan 1, 2028, to Dec 31, 2028.
- Financing covers up to 80% of monthly Growth Spend, not exceeding $20 million per cohort.
- Repayment includes the funding amount plus a rate of return (3-year U.S. T-Bill rate + 5.8%).
Price Impact
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