Root reports Q2’24 results

Root Insurance released its Q2 2024 results, ending the quarter with ~406k policies in force, an increase of 5k policies and 202k policies compared to Q1 2024 and Q2 2023, respectively.

Gross premiums written increased 113% to $308 million compared to the same period last year.

Renewal premium was 45% of gross premiums earned.

Gross accident period loss ratio improved 2 points to 62.4% compared to the same period last year.

Net combined ratio improved 48 points to 102.7% compared to the same period last year.

Net loss improved 79% to $8 million compared to the same period last year, generating operating income of $4 million and adjusted EBITDA of $12 million.

Premium per policy was $1,522, a 12% increase compared to Q2 2023.

Root’s partnership channel, which includes direct integrations and independent agents, accounted for 17% of new writings. The company says that it has more than a dozen partners and a strong pipeline of opportunities. Root added that it is excited to share more details on its agent partners in the coming weeks.

The company spent $34.2 million on sales and marketing during the quarter, and $64.6 million for the first six month of the year.

Unencumbered capital at the end of the quarter was $447 million.