Antonio, great article, as usual! As a former actuary, I'm particularly interested in these type of new insurance companies and I'm sure they'll take over the old ones in relatively close future. We have a few in France that are already becoming a threat for the older insurance companies.
A few remarks after looking at the numbers, it's funny that their net loss ratios is sometimes higher than their gross loss ratios. If you're losing money with your reinsurance strategy, you better have a good investment policy. But because the business is short-tailed, I don't see how they could get substantial revenues from investing their premium.
Also, it's interesting to see that both the customer count and revenue per customer grew, but the premium revenue and annuity is flat YoY.
Have a great weekend.
PS: Thanks for the book reco in the intro I'll check it out
Thanks a lot, friend! I find those observations curious too. I think the company is correctly sharing economies of scale, but I´m not sure that they´re able to price risk accurately at all at the moment.
Antonio, great article, as usual! As a former actuary, I'm particularly interested in these type of new insurance companies and I'm sure they'll take over the old ones in relatively close future. We have a few in France that are already becoming a threat for the older insurance companies.
A few remarks after looking at the numbers, it's funny that their net loss ratios is sometimes higher than their gross loss ratios. If you're losing money with your reinsurance strategy, you better have a good investment policy. But because the business is short-tailed, I don't see how they could get substantial revenues from investing their premium.
Also, it's interesting to see that both the customer count and revenue per customer grew, but the premium revenue and annuity is flat YoY.
Have a great weekend.
PS: Thanks for the book reco in the intro I'll check it out
Thanks a lot, friend! I find those observations curious too. I think the company is correctly sharing economies of scale, but I´m not sure that they´re able to price risk accurately at all at the moment.
Thanks, Alanzinho! They did say that and indeed, I´ve been overly conservative when analyzing the B/S - perhaps a subconscious survival mechanism.
I´m looking forward to their next investor event. Definitely looking fwd to getting more insights on the AI + their culture.