Root reports Q4 results

Root Insurance released its Q4 and full year 2024 results, ending the period with ~415k policies-in-force, a 21% increase compared to Q4 2023. Root added 7.5k policies to its overall count during the quarter.

Gross premiums written increased 66% to $1.3 billion. Renewal premium was 49% of gross premium earned.

Gross combined ratio improved 22 points to 94.7%; net combined ratio improved 37 points to 96.4%.

Root delivered its first profitable year in 2024 with net income of $31 million. After posting a $14 million loss for the first six months, the company generated a $45 million profit during the second half of the year.

Root’s partnership channel has seen new writings increase 115% year-over-year. This channel includes embedded partners and independent agents.

The company spent $37 million and $135 million on sales and marketing during the quarter and year, respectively.

Root’s cash, cash equivalents and restricted cash at the end of year stood at $600 million. The company ended the year with $333 million in unencumbered capital.