Who could’ve seen this coming?
There was a period of time when insurtech startups actually selling their own insurance products were hot tickets in the private and public markets. Things have changed.
The venture-backed insurtech rollout to the public markets was lengthy. Lemonade, which sells rental insurance, went public in early July 2020. Root, which focuses on auto insurance, went out in October of the same year. Metromile, also in auto insurance, went public via a SPAC in February 2021. And, finally, Hippo, focused on home coverage, went public via a blank check company in August of last year.
It was quite the run of liquidity for companies that racked up impressive venture backing in their early days.
Since those debuts, however, the public markets have not proved kind. Metromile announced that it would sell itself to Lemonade after losing nearly all of its value; today, Metromile is worth around $2 per share, down from a 52-week high of just over $20 per share.
Its peers also struggled. Lemonade has seen its value erode from just over $188 per share to $38.68 as of the time of writing. Root is worth $3.16 per share, down from a 52-week high of $25.63. Hippo is down to $2.62 per share from $15 per share at its peak. We’ve covered the carnage over the last few quarters.
And then there’s Oscar Health, a consumer health coverage company that had one hell of an IPO. Our take on its pricing was a bit rude, as you might recall: