NEW YORK--(BUSINESS WIRE)--Lemonade (NYSE: LMND), the insurance company powered by artificial intelligence and behavioral economics, announced today that its 2020 Giveback for the twelve months ended June 30, 2020, or the 2020 Giveback, amounts to $1,128,110, to be donated to 34 nonprofit organizations chosen by customers.
This year’s Giveback is larger than the previous three years’ combined, and is wide-ranging and global in its impact. The Lemonade community is giving back to COVID-19 relief, youth education, and the homeless, financing racial justice projects, combating police brutality, supporting veterans, and helping prevent LGBTQ+ suicide, among many other causes.
The Lemonade Giveback is part of the company’s socially-impactful business model, in which a portion of underwriting profits go to nonprofits of customers’ choosing. As the Lemonade community grows, so does the potential of the Giveback, and this year’s donation is more than 20x the first one in 2017.
“The global pandemic has hurt so many in so many ways. More than ever, we’re grateful that our business allows us to take care of our customers while they take care of their communities,” said Daniel Schreiber, Lemonade CEO and cofounder. “Many of our customers selected Direct Relief’s COVID response for their Giveback, and in so doing they helped finance medication for 50,000 ICU patients - a hugely impactful move.”
Among many other charities, the 2020 Giveback is being distributed to global organizations supporting educational resources, such as the Malala Fund, UNICEF, and Pencils of Promise, and U.S. based nonprofits tackling poverty, such as Women in Need (WIN) and New Story, and addressing mental health, such as Born This Way Foundation, The Trevor Project, and Objective Zero.
Donations from the Lemonade community are also being channeled to March for Our Lives, advocating for the end of gun violence, ACLU’s Criminal Justice program to end racial inequality, and 350.org, the global grassroots climate movement building a clean energy future for all.
“We are grateful for the groundswell of contributions to the ACLU that the Lemonade community has donated,” said Rebecca Lowell Edwards, Chief Communications Officer for the ACLU. “At a moment of reckoning for racial justice, police abuse, and unprecedented daily threats to the Constitution, we are encouraged by the strong support for civil rights across the country.”
“As one of the first organizations to become a Lemonade Giveback partner in 2017, we have seen firsthand how successful this program can be for nonprofits,” said Muneer Panjwani, VP of Foundation, Government, and Corporate Partnerships of The Trevor Project. “This year’s generous contribution will help us reach even more of the roughly 1.8 million LGBTQ youth who seriously consider suicide in the US each year.”
"350.org is driven by people power, and Lemonade makes it easier for people to do good,” said May Boeve, Executive Director, 350.org. “We are so grateful for the support from Lemonade policyholders. The support proves it's possible to build a fossil-free economy thanks to Lemonade and all of the policyholders that make our grassroots climate campaigns possible."
The 2019 Giveback donated $631,540 to 25 nonprofit organizations chosen by policyholders, whereas the 2018 Giveback stood at $162,135 to 15 nonprofit organizations, and the first annual Giveback in 2017 channeled $53,174 to 14 different charities.
Learn more about the Lemonade Giveback here.
Lemonade offers renters, homeowners, and pet health insurance in the United States, and contents and liability insurance in Germany and the Netherlands, through its full-stack insurance carriers. Powered by artificial intelligence and behavioral economics, Lemonade set out to replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback. Lemonade is currently available for most of the United States, Germany and the Netherlands, and continues to expand globally.
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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements about the future potential for the Giveback. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our history of losses and the fact that we may not achieve or maintain profitability in the future; our ability to retain and expand our customer base; the fact that the “Lemonade” brand may not become as widely known as incumbents’ brands or the brand may become tarnished; the denial of claims or our failure to accurately and timely pay claims; our ability to attain greater value from each user; the novelty of our business model and its unpredictable efficacy and susceptibility to unintended consequences; the possibility that we could be forced to modify or eliminate our Giveback, which could undermine our business model; the results of examinations by our primary state insurance regulator that could result in adverse examinations findings and necessitate remedial actions or give rise to regulatory orders requiring remedial, injunctive, or other corrective action; our limited operating history; our ability to manage our growth effectively; the impact of intense competition in the segments of the insurance industry in which we operate on our ability to attain or increase profitability; the unavailability of reinsurance at current levels and prices, which could limit our ability to write new business; our ability to renew reinsurance contracts on comparable duration and terms to those currently in effect; our exposure to counterparty risks as a result of reinsurance; the loss of personal customer information, damage to our reputation and brand, or harm to our business and operating results as a result of security incidents or real or perceived errors, failures or bugs in our systems, website or app; our actual or perceived failure to protect customer information and other data, respect customers’ privacy, or comply with data privacy and security laws and regulations; our ability to comply with extensive insurance industry regulations and the need to incur additional costs or devote additional resources to comply with changes to existing regulations; our exposure to additional regulatory requirements specific to other vertical markets that we enter or have entered, including auto, pet and life insurance, and the need to devote additional resources to comply with these regulations; and our inability to predict the lasting impacts of COVID-19 to our business in particular, and the global economy generally. These and other important factors are discussed under the caption “Risk Factors” in our final prospectus filed with the SEC on July 2, 2020 pursuant to Rule 424(b)(4) and our other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s beliefs as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.