Root reports Q1 results

Root Insurance released its Q1 2025 results, ending the period with ~454k policies-in-force, a 13% increase compared to Q1 2024. Root added 39k policies to its overall count during the quarter.

Gross premiums written increased 24% YoY to $411 million.

Net loss and LAE ratio improved 8 points YoY to 64%.

Net combined ratio improved 6 points YoY to 96%.

The company spent $51.5 million on sales and marketing during the quarter, a 69% increase compared to Q1 2024.

Root generated a net income of $18 million during the quarter, which marks the third consecutive quarter of profitable results.

The partnership channel, which includes embedded partners and independent agents, more than doubled new writings YoY.

As of March 31, 2025, Root had $609.4 million in cash and cash equivalents, of which $347.3 million was held outside of regulated insurance entities.