LMND · CIK 1691421
What Lemonade, Inc. told the SEC could break it.
Lemonade's disclosures cluster on geographic concentration of both its risk and its operations. Its premium base is concentrated in three states — California, New York and Texas were about 45% of 2025 gross written premium (California alone ~21.9%) — so a major catastrophe or adverse rate action in any would hit results disproportionately, and its California homeowners exposure already drew a $6.9 million California FAIR Plan wildfire assessment in early 2025 (only partly recoverable). At the same time, core functions sit in Israel — its co-founders, much of its product-development staff and support operations, and roughly 310 employees — so regional conflict or military call-ups could disrupt development and support.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Geographic concentration
- Operational concentration in Israel (R&D, co-founders) amid regional conflictmedium
Key Lemonade operations are concentrated in Israel — its co-founders, much of its product-development staff, help desk and online sales support, and ~310 full-time employees as of year-end 2025 — so escalating Israel–Iran tensions, military reserve call-ups or regional conflict could disrupt its product development and support functions.
“We maintain offices in Israel and some of our officers, employees and directors are located in Israel, including our Co-Founders and some of our product development staff, help desk and online sales support operations. As of December 31, 2025, we had approximately 310 full-time employees in Israel.”
- Premium concentration in California, New York & Texas (45% of GWP)medium
About 45% of Lemonade's 2025 gross written premium (California alone ~21.9%) comes from just three states — California, New York and Texas — so a major catastrophe in any of them, or adverse regulatory/rate action there, would disproportionately hit losses and revenue.
“Approximately 45% of our gross written premium for the year ended December 31, 2025 originated from customers in California, New York, and Texas.”
SEC filing →As of 2026
Climate & physical
- California wildfire catastrophe — FAIR Plan assessmentsmedium
Lemonade's California homeowners exposure subjects it to California FAIR Plan assessments when that catastrophe pool cannot cover wildfire losses; it was assessed $6.9 million in February 2025 (with ~$19.6 million tied to related catastrophe events), recoverable only up to 50% via multi-year recoupment, so future wildfire seasons could drive further assessment costs.
“Additionally, the Company received a $6.9 million assessment from the California FAIR Plan in February 2025, which was paid and expensed in the first quarter of 2025.”
SEC filing →As of 2026
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