InsurTech Lemonade followed 2023—”the year when the plan came together“—with a first quarter 2024 net loss of $47.3 million. The result is about 28 percent better than the same time a year ago and, in a letter to shareholders, Lemonade said it expects breakeven cash flow by the end of 2024.

Lemonade has previously set a breakeven goal of the first half of 2025 but its expectation improved based on “sustained strength in our underlying unit economics, impact of technology on various expense categories, and working capital benefits of our reinsurance structure.”

“By Q1 2025, we expect to be generating positive net cash flow on a consistent basis,” Lemonade said in the letter.

Lemonade said it believes artificial intelligence “has the potential to completely redefine what good looks like in insurance,” and the InsurTech’s use of the tool led to a loss adjustment expense (LAE) ratio of 7.6 in the first quarter. Lemonade said it has halved this ratio in two years.

The insurer’s headcount shrank 11 percent year-over year but inforce premium grew 22 percent to $794 million. “This speaks volumes for the widespread impact of technology throughout the company,” Lemonade said.

Revenue for Q1 was up about 25 percent to $119.1 million and gross profit was $34.7 million—an increase of about $18.2 million from the year prior.

A version of this article was previously published by Insurance Journal