Root, Inc. Achieves First Profitable Year in 2024

Root, Inc. ( (ROOT) ) has released its Q4 earnings. Here is a breakdown of the information Root, Inc. presented to its investors.

Root, Inc., a technology-driven insurance company based in Columbus, Ohio, specializes in providing personalized and fair insurance experiences through data science and technology. In 2024, Root achieved a significant milestone by reporting its first profitable year, with a gross combined ratio of 94.7% and gross premiums written totaling $1.3 billion. The company reported a GAAP net income of $31 million and an adjusted EBITDA of $112 million, marking a substantial improvement from previous years.

The company’s financial performance in 2024 was bolstered by a 21% increase in policies in force and an 18% rise in gross premiums written in the fourth quarter alone. Root’s gross accident period loss ratio improved to 61.4%, and the net combined ratio improved by 20 points to 91.5%. These results reflect the company’s strategic focus on leveraging its proprietary technology and data science to enhance pricing and underwriting capabilities.

Root’s growth strategy includes expanding its Direct and Partnership channels, with the latter experiencing a 115% increase in new writings year-over-year. The company is committed to enhancing customer experiences through its mobile-first telematics product and seamless embedded insurance solutions. Root’s innovative approach to pricing and underwriting, supported by its high telematics adoption rate, continues to drive competitive advantages in the market.

Looking ahead, Root remains optimistic about its growth prospects, with plans to continue investing in its technology platform and expanding its distribution channels. The company aims to maintain its profitability while exploring new marketing opportunities and refining its pricing models to offer competitive rates to customers. Root’s management is confident in its ability to sustain momentum and achieve long-term success in the insurance industry.