Root Inc (ROOT, Financial) released its Q3 2023 earnings report on November 1, 2023, highlighting significant growth in new writings and an improved loss ratio. The company's performance reflects the effectiveness of its technology and customer value proposition.
Financial Performance
Root Inc (ROOT, Financial) reported a 141% quarter-over-quarter growth in total new writings and a 376% increase over Q3 2022. The gross accident period loss ratio improved by 11 points year-over-year to 68%, driven by advancements in pricing and underwriting. The company's net loss improved by 31% to $46 million, and adjusted EBITDA improved by 58% to a loss of $19 million compared to Q3 2022.
Key Financial Metrics
Gross premiums written increased by 49% to $224 million, and gross premiums earned increased by 3% to $160 million. The renewal premium percentage of gross premiums earned decreased due to new business growth. The gross loss adjustment expenses ratio improved by 1 point to 10%, and the gross profit increased by $20 million to $11 million. The gross combined ratio improved by 12 points to 119%.
Company's Outlook
Root Inc (ROOT, Financial) expects to continue growing policies in force through the end of the year. The company anticipates stable gross loss ratios, resulting in continued reductions in reinsurance costs. Root Inc (ROOT) also plans to take rate actions as needed to keep up with severity and frequency loss trends. The company expects unencumbered cash consumption to be materially lower than 2022.
About Root Inc (ROOT, Financial)
Founded in 2015 and based in Columbus, Ohio, Root Inc (ROOT) is revolutionizing insurance through data science and technology to provide consumers a personalized, easy, and fair experience. The Root app has roughly 12 million app downloads and has collected over 21 billion miles of driving data to inform their insurance offerings.
Explore the complete 8-K earnings release (here) from Root Inc for further details.
