Although it’s not an industry typically referred to as “hot” or "innovative," those two words could definitely describe parts of the insurance industry in 2024. Among the 80 largest insurance stocks trading on U.S. exchanges, only two have a negative total return this year. On average, these stocks have returned 57% as of the Dec. 4 close, blowing the S&P 500 out of the water.
One company that has had a particularly good year is Lemonade (NYSE: LMND). Shares are up 186% as of the Dec. 4 close. So, what has the market so excited about Lemonade this year? I’ll provide an understanding of what exactly makes this insurance company different and answer that question. I’ll close by providing my view on this financial services stock going forward.
