3 Things – 3 Things – Trov/Travelers, Root/Lemonade Earnings & A Bundle – 02/25/2022

Greetings Friends.  Woah!  There was a lot to unpack this week, a flurry of earnings news continues (most incumbents are raking in profits and lowering their combined ratios), Travelers acquires Trov and more things that would fit into the usual list of 3 so the last one is a bundle.  Here are the three things we learned:


Travelers Acquires Trov’s Technology

Trov a name brand in insurtech agreed to sell their technology to Travelers for an undisclosed sum.  Travelers will be able to use these acquired assets to enhance their digital engagement capabilities.  Trov pioneered innovative digital concepts such as on-demand and micro insurance policies.  The personal lines business can use to build onto existing capabilities and the brand, track record & financial strength to evolve the customer experience.


Root & Lemonade Earnings

We are pretty sure both Root and Lemonade have not released earnings on the same day at the same time before.  So needless to say with all of the other announcements coming this week there was a lot to digest.  Root is still fundamentally flawed and seems to be pegging their hopes on the Carvana relationship bringing the right customers to improve their book.  Lemonade has spent significant resources to go from only renter’s to a personal lines carrier with home, auto, pet and life insurance.  The bottom line is they both have to spend between $1.58 and $1.85 for every $1.00 of premium they collect and show no signs of reversing that anytime soon, not how you make money in insurance.


Everything Else .. 

Home / auto insurtech Branch has found a good partner for capacity instead of ceding 75-80% of their premium in a quota share to reinsurers like others.. a smart move that will enable their growth.

Experian has started to integrate Gabi showing their users auto insurance quote comparisons with the ‘you too can save’ messaging.

A new insurtech Nirvana announced their public launch and $22M Series A raise.  They have a telematics-based trucking / fleet commercial auto product in the works.

Thank you for following us, we appreciate your feedback and continued support.  Stay tuned for more info to come.  Until next week… stay safe, stay productive!