Is a Lower Combined Ratio Key to ROOT's Profitability?

Key Takeaways Root's net combined ratio improved to 94.2% in 2024, with further gains in early 2025. AI, machine learning and focus on low risk products support Root's pricing efficiency. ROOT shares rose 35.7% YTD. EPS estimates for 2025 and 2026 have moved sharply higher.Root Inc.’s (ROOT) profitability is underpinned by its combined ratio, a key measure of underwriting performance. A combined ratio — defined as sum of loss ratio and expense ratio — below 100% signals underwriting profitability.ROOT is he ...