Root, Inc. ( (ROOT) ) has realeased its Q3 earnings. Here is a breakdown of the information Root, Inc. presented to its investors.
Root, Inc., a technology-driven insurance company, leverages data science to offer personalized insurance solutions primarily in the auto insurance sector. In its latest earnings report, Root announced achieving net income profitability for the first time in its history during the third quarter of 2024, highlighting a pivotal moment in its operational journey.
The company reported a net income of $23 million, with significant improvements in its financial metrics, including a 48% increase in gross premiums written to $332 million and a gross combined ratio improvement to 89.2%. The Partnership channel showed substantial growth, with new writings up 131% year-over-year. Additionally, Root successfully refinanced its debt, reducing interest expenses by approximately 50%, which has enhanced its earnings profile.
Key financial achievements included a 57% increase in policies in force, reaching 407,313, and gross premiums earned nearly doubling to $317 million. The company also improved its gross accident period loss ratio to 58.4% and reported an adjusted EBITDA of $42 million, reflecting a marked improvement over the previous year.
Looking ahead, Root remains committed to maintaining strong underwriting discipline and optimizing marketing investments. The company is poised to focus on profitable growth, leveraging its technology and data science capabilities to provide competitive pricing and exceptional customer experiences. Root’s management is optimistic about continuing this momentum, building on its solid financial foundation.
