3 Things – Lemonade Car, AIG & Met Earnings & Liberty Distribution Strategy – 11/05/2021

Hi All!  This week we are following the arrival of Lemonade Car, AIG & Metlife earnings and a new distribution strategy for Liberty.  Here are the three things we learned:


Lemonade Car Arrives

Lemonade launches their auto product this week in Illinois to start but will follow with other states.  They explain the product as having many advantages and differences over traditional personal auto including tech / telematics, social welfare, environmental concern but of course also the typical bundling discounts.  While this may look different and gives them another product to sell their growing customer base, how many people actually buy car insurance online and is the difference enough as to not be looked at as a commodity like others if their price is not the cheapest.


Earnings Back Up Strategy

Another batch of earnings released this week including AIGMetlifeLiberty Mutual & Others.  Both AIG and Met have been on strategies to divest pieces of their business to create focus and that appears to be producing positive results.  That seems contrary to consolidating that has been going on but it may be a strategy that some other may benefit from.  The themes from earnings season continues to be profits but concerns about CATS and cyber risk.


Liberty Distribution Strategy

Speaking of strategy, reading through Liberty’s results makes you think they might want to consider something new.  They have been acquisitive but seem to be dragging on combined ratio and ROE.  Then they announced transition of agents into a digital agency Comparion which could be just what the doctor ordered to help them transition into commissions that could improve their profitability.

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