MILE - Lemonade: Car Insurance Should Help Drive Growth

• Lemonade has launched its car insurance product and announced the acquisition of Metromile to help accelerate its move into car insurance.
• Investors showed displeasure in the all-stock Metromile deal because the company has poor fundamentals and wasn't considered a success.
• The strategic reasons for the Metromile acquisition include gaining billions of miles driving data, advanced automatic technologies, and deep pricing, and underwriting knowledge.
• With the addition of car insurance, Lemonade now has a complete line of insurance products that can be bundled to consumers, thereby increasing customers' LTV.
• Lemonade is a buy for aggressive growth investors willing to speculate on a very high upside opportunity.

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