Lemonade warns that increased spending will hurt its near-term profit

Lemonade Inc., a tech-powered insurance provider, said Tuesday it would spend more on growth this year, a move it said would hurt profits in the months ahead following a year of “extraordinary challenges” in the insurance industry. In a letter to shareholders, management said Lemonade LMND, +8.44%planned to “roughly double” its growth budget this year from the $55 million it spent in 2023. “As the universe of products and geographies where we are rate-adequate expan