COLUMBUS, Ohio, April 10, 2025 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), the parent company of Root Insurance Company, today announced its plans to host a conference call on Wednesday, May 7, 2025 at 5:00 p.m. Eastern Time to discuss financial results for the first quarter 2025 and provide an update on company operations. The company plans to release its first quarter results in the Investor Relations section of its website at ir.joinroot.com following the close of the financial markets on Wednesday, M ...

Financial Data and Key Metrics Changes - In 2024, the company achieved a gross combined ratio of 95 on $1.3 billion of gross premiums written, generating GAAP net income of $31 million and adjusted EBITDA of $112 million, marking significant improvements from 2023 [8] - For Q4 2024, the company reported net income of $22 million, a $46 million improvement year-over-year, with operating income of $35 million and adjusted EBITDA of $43 million, reflecting increases of $47 million and $43 million year-over-year respectively [20][21] - The gross accident period loss ratio for Q4 was 61%, a 2-point improvement year-over-year, while the growth combined ratio was 91%, a 19-point improvement year-over-year [22] Business Line Data and Key Metrics Changes - Policies in force grew by 21% year-over-year to over 414,000, with a gross loss ratio of 59% and a gross combined ratio of 95% [10] - The company ceded approximately 9% of its gross earned premium in Q4, with a minimal difference of 1 point between gross and net loss ratios [22] Market Data and Key Metrics Changes - The company expanded its reach to 76% of the U.S. population with the recent launch in Minnesota and has filings pending in additional states [14] - The partnership channel saw new writings more than doubling in 2024, with Q4 new writings through this channel representing roughly a third of overall new business [12] Company Strategy and Development Direction - The company aims to accelerate growth by expanding its partnerships channel and reinvesting in the business for long-term returns, emphasizing disciplined underwriting and leveraging technology for pricing and underwriting [9][15] - The focus remains on providing a great customer experience and competitive pricing, with a commitment to maintaining a long-term economic framework for value creation [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth avenues while acknowledging the need for careful monitoring of the competitive landscape and macroeconomic factors [58] - The company anticipates modest rate decreases in certain geographies while still growing its independent agency and partnership channels, which typically have longer retention and higher premiums [29][30] Other Important Information - The company has successfully reduced its run rate interest expense by over 50% and made significant strides in diversifying its distribution channels [10][23] - Management highlighted the importance of maintaining a disciplined approach to customer acquisition costs, which leads to accelerated expense recognition relative to earned premium [21] Q&A Session Summary Question: Direction of premium per policy in the year ahead - Management expects to see modest rate decreases, which may apply pressure to average premiums, but growth in independent agency and partnership channels could keep per policy metrics relatively flat to modestly increasing [29][30] Question: Modeling session rate on premium going forward - Management indicated that session levels of earned premium are expected to remain consistent with Q4 levels around 9% [33][34] Question: Retention levels on recent cohorts - Management noted improvements in retention but did not disclose specific data points, mentioning that the hyper growth penalty has normalized [36] Question: Expected loss ratio trends with rate reductions - Management projects a low-to-mid single-digit loss trend for 2025, with slight increases in the loss ratio expected due to rate decreases [38][40] Question: Earnings trends in 2025 - Management does not manage the company based on quarterly earnings but focuses on lifetime value, expecting continued growth through partnerships and state expansion [42][44] Question: Impact of tariffs - Management is not currently predicting any impacts from tariffs but is prepared to respond quickly if changes occur [46][47] Question: Ad spend strategy for 2025 - The company is shifting towards more mid-to-upper funnel channels while maintaining rigorous measurement of marketing spend effectiveness [51][53] Question: Returns from direct vs. embedded partnership channels - Both channels are operating at target returns, with the embedded channel showing longer retention and higher average premiums [55] Question: Competition dynamics in 2025 - Management expects competition dynamics to remain stable, having observed a slight increase in competition in Q4 [58]

COLUMBUS, Ohio, April 02, 2025 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), a leading technology company powering insurance solutions and the parent company of Root Insurance Company, and Hyundai Capital America (HCA) today announced a strategic partnership to bring innovative solutions and enhanced experiences to HCA customers. This collaboration aims to optimize the strengths of both companies to drive advancements in the auto finance and insurance industries. HCA’s leadership in auto finance, combined ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Shares of ROOT Inc. (ROOT) have skyrocketed 145% year to date, outperforming the industry’s 13% growth, the Finance sector’s rise of 2.5% and the S&P 500 composite’s decline of 4.1%.ROOT shares are trading near the high end of $181.14 of its 52-week range.With a market capitalization of more than $2.7 billion, ROOT provides automobile and renters insurance products. It envisions being the largest and most profitable company in the industry.ROOT Outperforms Industry, Sector & S&P 500 YTD Image Source: Zacks ...

Have you been paying attention to shares of Root, Inc. (ROOT) ? Shares have been on the move with the stock up 30% over the past month. The stock hit a new 52-week high of $158.06 in the previous session. Root, Inc. has gained 112.5% since the start of the year compared to the 2.9% move for the Zacks Finance sector and the 13.9% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't mis ...

Group 1 - Russian President Vladimir Putin expressed agreement in principle with the U.S.-led ceasefire plan supported by Ukraine, emphasizing the need for it to lead to "enduring peace" [1][2] - Putin highlighted that while Russia is in favor of the ceasefire, there are nuances that need to be addressed [2] - U.S. negotiators are currently in Moscow for ceasefire talks following Ukraine's backing of a 30-day ceasefire deal, which is contingent on Moscow's agreement [2]

Since the start of 2024, Root's (ROOT 7.86%) stock has surged 1,262% higher. The surge reflects the disruptive insurance company's solid progress in several key areas. Root has grown its customer base and written more policies. More importantly, it has sharpened its underwriting capabilities, leading to improved profitability.The company has crushed analysts' earnings expectations for several quarters in a row, resulting in a surprising profit in 2024. Root is establishing itself as a contender in the autom ...

Company Overview - Root (NASDAQ: ROOT) is an emerging auto insurance company that recently reported its first profitable quarter, indicating a positive trend in its financial performance [1]. Investment Philosophy - The investment approach focuses on long-term ownership of stocks rather than short-term price predictions, emphasizing valuations over target prices [1]. - The analyst has shifted from a more cautious stance, previously issuing many Sell recommendations, to a simplified approach of "Buy or Don't Buy," with future articles likely to reflect either Buy or Hold ratings [1]. Analyst Position - The analyst holds a beneficial long position in Root shares, indicating confidence in the company's future performance [2].

Company Overview - Root, Inc. is a technology company focused on insurance solutions and is the parent company of Root Insurance, founded in 2015 and based in Columbus, Ohio [4] - The company aims to revolutionize insurance through data science and technology, providing a personalized and fair experience for consumers [4] - The Root app has nearly 15 million downloads and has collected over 30 billion miles of driving data to inform its insurance offerings [4] Industry Participation - Root, Inc. will participate in the 2025 Association of Insurance and Financial Analysts (AIFA) Conference from March 2-4, 2025, in Naples, Florida [1] - Matt LaMalva, Root's Head of Investor Relations and Corporate Development, will join the Insurtech Panel on March 3 at 4:15 p.m. ET, discussing key trends in the Insurtech landscape [2] - The AIFA Conference serves as a premier gathering for leaders in various insurance sectors, including property & casualty, life insurance, reinsurance, and insurance brokerage, to address key issues and opportunities [3]