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Acquisition of Metromile (Tables) | 9 Months Ended
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Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract] |
Schedule of purchase price for acquisition | Fair value of consideration transferred for the Metromile Acquisition is as follows ($ in millions):
Metromile issued and outstanding stock exchanged for Lemonade common stock (1) |  | $ | 136.9 |
Contingent consideration (2) |  | — |
Metromile vested awards exchanged for Lemonade awards (3) |  | 0.8 |
Total Purchase Consideration |  | $ | 137.7 |
(1) The fair value of 6,901,934 shares issued and exchanged for Lemonade common stock was determined based on the closing price at acquisition date of $19.84, and includes a minimal amount of cash paid in lieu of fractional shares. (2) Contingent consideration represents Metromile's contingently issuable shares that are convertible into Lemonade common stock in accordance with the exchange ratio as set forth in the merger agreement. In accordance with ASC 805-30-25-5, contingent consideration shall be recognized and measured at fair value as of the Acquisition Date. Given that the contingencies are not probable of being met within the contingency period, no fair value was assessed for these Metromile shares. (3) Fair value of replacement awards related to services rendered prior to the Metromile Acquisition are included as part of purchase consideration. The unvested portion of fair value attributable to these replacement awards of $4.3 million comprised of $0.1 million for assumed options and $4.2 million for assumed restricted stock units ("RSUs"), and associated with future service will be recognized as expense over the future service period.
Schedule of recognized identified assets acquired and liabilities assumed | The following table presents the preliminary allocation of purchase consideration recorded on the condensed consolidated balance sheet as of the Acquisition Date ($ in millions):
Assets acquired |  |
Fixed maturities, available for sale, at fair value |  | $ | 1.8 |
Short-term investments |  | 64.2 |
Cash, cash equivalents and restricted cash |  | 98.8 |
Premiums receivable |  | 17.4 |
Reinsurance recoverable |  | 14.5 |
Property and equipment |  | 4.6 |
Value of business acquired ("VOBA") |  | 1.7 |
Intangible assets - technology |  | 28.0 |
Intangible assets - insurance licenses |  | 7.5 |
Other assets |  | 14.7 |
Total assets acquired |  | $ | 253.2 |
Liabilities assumed |  |
Unpaid loss and loss adjustment expenses |  | $ | 84.4 |
Unearned premium |  | 15.1 |
Trade payables |  | 0.8 |
Ceded premium payable |  | 12.0 |
Other liabilities and accrued expenses |  | 22.2 |
Total liabilities assumed |  | $ | 134.5 |
Total identifiable net assets acquired |  | $ | 118.7 |
Total purchase consideration |  | $ | 137.7 |
Goodwill |  | $ | 19.0 |
Finite-lived and indefinite-lived intangible assets acquired as part of business combination | The amounts, based on preliminary valuations and subject to final adjustment, allocated to intangible assets are as follows ($ in millions):
|  | Fair Value |  | Weighted-Average Useful Life
Technology |  | $ | 28.0 |  |  | 3 to 5 years
Insurance licenses |  | 7.5 |  |  | N/A
Total |  | $ | 35.5 |  |  |
Business acquisition, pro forma Information | The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the three and nine months ended September 30, 2022 as if the Metromile Acquisition had occurred on January 1, 2022. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company’s operating results that may have actually occurred had the Metromile Acquisition been completed on January 1, 2022. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the Metromile Acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Metromile.
|  | Three Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2022
Total Revenue |  | $ | 85.1 |  |  | $ | 221.1 |
Net Loss |  | $ | (112.2) |  |  | $ | (316.8) |

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