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metromile Metromile Announces Third Quarter 2021 Results November 15 , 2021 SAN FRANCISCO , Nov. 15 , 2021 ( GLOBE NEWSWIRE ) -- Metromile , Inc. ( NASDAQ : MILE , MILEW ) , a leading digital insurance platform and pay - per - mile auto insurer , today announced its results for the third quarter ended September 30 , 2021 . " During the quarter , we continued to make progress on and invest in our growth initiatives , and while our Policies in Force were largely flat for the quarter ending September 30 , 2021 , Policies in Force have now grown for three consecutive months , including October , " said Dan Preston , Chief Executive Officer of Metromile . " We also saw a rising cost of acquisition as we ramped our investment to increase our brand awareness and reinforce trust with customers . Key initiatives included refreshing our messaging to align with drivers ' current needs , expanding our Independent Agent channel with a comparative rater integration , and continued work toward state expansion . Additionally , Metromile Enterprise continues to make progress , signing up new customers like Buckle for its software solutions . " " Loss ratios remained elevated given industry - wide inflation in costs across bodily injury and physical damage , " added Mr. Preston . " Our loss ratio for the quarter of 81.6 % reflects 4.4 points of catastrophe - related costs , with an estimated adjusted 77.2 % loss ratio after removing the effects of Hurricane Ida . We expect our rate filings in progress across most of our footprint will address these higher losses and improve profitability over the course of 2022. " The power of Metromile and Lemonade joining forces On November 8 , 2021 , we , together with Lemonade , Inc. ( " Lemonade " ) , announced a definitive agreement pursuant to which Lemonade will acquire Metromile in an all - stock transaction that implied a fully diluted equity value of approximately $ 500 million . As of September 30 , 2021 , Metromile had net unrestricted cash of approximately $ 160 million , implying an enterprise value of about $ 340 million . The companies have deeply aligned missions and market potential ; together , we believe we can create a far superior outcome for Metromile and Lemonade shareholders alike : • Metromile's ten year track record in data science - powered auto insurance , coupled with Lemonade's well loved brand and high customer trust , position the combined company as the ideal destination for modern drivers everywhere . • Lemonade has a proven track record of cross - selling insurance products to its rapidly growing customer base of nearly 1.4 million customers . • Beyond auto , the combined value proposition offers significant benefits across a customer's lifetime ( renters , home , life , pet ) while broadening the set of advantages against incumbents . • Lastly , given our recent rising customer acquisition costs and the additional capital required , we believe the companies together will gain substantial customer acquisition and cost efficiencies through investments in a single brand , technology , and platform . In sum , our shareholders will now participate in the upside of the combined entity , which we believe will be substantially stronger and differentiated given the massive cross - sell potential , nationwide footprint , strengthened balance sheet , and brand . Moving forward , we will be even better positioned to provide millions of drivers with fairer , more customized insurance based on their own driving . Q3 2021 Results , KPIs and Non - GAAP Financial Measures Policies in Force • Policies in Force as of September 30 , 2021 were 95,238 , compared to 95,314 at the end of the second quarter of 2021 . Premium • Direct Earned Premium in the third quarter of 2021 was $ 28.5 million , a 6.7 % increase from the prior - year period . • Average Annual Premium per Policy , defined as Direct Earned Premium divided by the Average Policies in Force for the period , was $ 1,197 as of September 30 , 2021 , a 6.1 % increase co pared to $ 1,128 on September 30 , 2020 , due to more miles driven on a year - over - year basis . • Premium Run - Rate , defined as ending Policies in Force multiplied by Average Annual Premium per Policy , was $ 114.0 million as of September 30 , 2021 , a 9.5 % increase compared to $ 104.1 million on September 30 , 2020 . Retention • As of September 30 , 2021 , one - year new customer retention was 65 % for policies that completed their second term in the third quarter of 2021. We define retention as the percentage of new customers who remain with us after their first two policy terms , inclusive of all cancellation reasons . • The average policy life expectancy for a new customer was 3 years as of the end of the third quarter of 2021 .