Why Shares Of Insurance Company Root Are Soaring Wednesday

Core Insights - Root Inc reported fourth-quarter revenue of $326.7 million, exceeding the Street consensus estimate of $291.0 million [1] - The company achieved fourth-quarter earnings per share of $1.62, surpassing the Street consensus estimate of a loss of 44 cents per share [1] Financial Performance - Policies in force grew by 21% year-over-year in the quarter [2] - Gross premiums written increased by 18% year-over-year in the quarter [2] - Gross accident period losses decreased during the quarter [2] - Root reported a positive net income of $31 million for the full fiscal year, an improvement of $178 million from the previous fiscal year [2] Strategic Outlook - The company described 2024 as "a landmark year," attributing this to difficult decisions made in 2022 and 2023 [3] - Root emphasized that its loss ratio is now among the best in the industry, a result of modern quantitative methods [3] - The company continues to invest in infrastructure and growth, expecting strong results as it gains scale [3] Market Reaction - Root's stock rose by 17.52% to $116 in after-hours trading, with a 52-week trading range of $20.22 to $141.23 [4]