How AI-Powered Insurance Firm Saw 40% Stock Surge Last Month

Key Points

• Revenue jumped 35% year over year while net loss per share improved from £0.81 to £0.60
• Loss ratio dropped from 79% to 69%, showing more efficient claims management
• After years of disappointing performance, the company’s AI system is finally delivering the efficiency early investors hoped for

Shares of this AI-driven insurance firm rose 40.4% in August 2025, according to S&P Global Market Intelligence data. The company, which uses automated analysis and artificial intelligence rather than human adjusters, impressed the market with stellar earnings.

Impressive Results Squeeze Out Profits

Second-quarter revenues climbed 35% year over year to £164.1 million. The in-force premium—a critical insurance industry metric—showed a robust 29% increase. Most importantly, the net loss ratio fell from 79% to 69%, meaning they’re paying out less in claims per pound of premiums collected.

The bottom line showed a net loss of £0.60 per share, significantly better than the £0.81 loss in the same period last year.

Wall Street had expected a much larger loss of around £0.79 per share on revenues of approximately £160.4 million.

Investors eagerly embraced these improving metrics, sending the stock soaring 29.5% the following day. August’s peak of £60.41 per share marked the highest price the company has seen since November 2021.

AI Finally Learning Its Insurance Lessons

This firm was initially a market darling in 2020 as investors fell for the promise of automated, infallible insurance processes. But it quickly lost favour due to high loss ratios and inefficient operations, while expansion into new insurance types and territories proved frustratingly slow.

That’s changing in 2025. Services are now available across all 50 U.S. states and four European countries, with plans to enter 27 more European nations soon. Their lucrative car insurance is currently offered in just 10 states but is set for expansion.

The company is finally earning market success the honest way—by growing and improving its core business. Overall performance still isn’t stellar, but improving efficiency should change that in the coming years. It simply takes time and massive data to optimise sophisticated AI systems, and their computerised business brain is finally showing the delayed success many predicted.

In essence, the stock appears ready to climb from the deep hole it fell into five years ago. As the AI-driven model proves itself, share prices should follow suit long-term.

Disclaimer: For information purposes only. Past performance is not indicative of future results.