Root, Inc. provides insurance products and services in the United States. It offers automobile and renters insurance primarily through websites, mobile applications, and partnership channels. The company was incorporated in 2015 and is headquartered in Columbus, Ohio.
Root Extends Carvana Embedded Insurance Deal Through 2028
Root, Inc. extended its exclusive embedded insurance partnership with Carvana through at least August 2028, keeping its products integrated into Carvana's vehicle-purchase experience and preserving access to the used-car platform's national buyer base at the point of sale. The extension supports Root's push beyond Direct acquisition as it broadens partnerships and independent-agent distribution; those channels represented about 51% of new writings in the second quarter of 2026, up from about 44% a year earlier, after Root reduced Direct performance marketing as competitors increased spending and lowered prices. The embedded model lets customers purchase and bind coverage within a partner experience without visiting a Root website, which could support policy growth and more efficient customer acquisition if the economics meet Root's target returns. The deal secures distribution access but does not guarantee premium growth, since results depend on Carvana's retail unit volumes and attachment rates; policies in force rose 6.2% year over year to 483,921 at the end of the second quarter, but management expects year-end 2026 policies in force to be relatively flat if current competition persists. Root currently carries a Zacks Rank #3 (Hold), while its Value, Growth, Momentum and VGM scores are all A.
ROOT · Demand · Positive Root extended its exclusive embedded insurance partnership with Carvana through 2028, preserving point-of-sale distribution access to Carvana's national buyer base.
CVNA · · Neutral Carvana is the partner platform in the extended embedded insurance deal; no direct financial impact on Carvana is described.
Root's Combined Ratio Improves to 91.7% as Premium Growth Slows
Root, Inc. reported improved first-half 2026 underwriting economics even as its premium growth cooled, with the net combined ratio improving to 91.7% from 95.4% a year earlier and the net loss and loss adjustment expense ratio improving to 64.1% from 65.1%. Adjusted EBITDA rose to $100.6 million from $69.5 million, and the company ceded about 1.5% of gross premiums earned in the first half, down from 5.8% a year earlier, allowing it to retain more premium. Gross written premium declined 3.7% in the first half of 2026 as Root cut customer acquisition that failed to meet its return thresholds, with direct performance marketing spending falling $35.4 million year over year. Policies in force still increased 6.2% year over year to 483,921 at second-quarter end, but management expects the 2026 year-end count to be relatively flat if current competition persists, while premiums per policy fell to $1,479 from $1,616 and the first-half gross accident-period loss ratio rose to 59.7% from 56%. Partnerships and independent agents represented about 51% of second-quarter new writings, up from about 44% a year earlier, and Root was active in 37 auto insurance markets as of August 2026, covering more than 80% of the U.S. population and targeting a near-national footprint by the end of 2027. Root currently carries a Zacks Rank #3 (Hold), and the Zacks Consensus Estimate for 2026 has risen 36% in the last 30 days.
ROOT · Capital · Positive Root's combined ratio improved to 91.7% and adjusted EBITDA rose to $100.6M from $69.5M
ROOT · Competition · Negative Management expects flat year-end policy count if current competition persists, and gross written premium fell 3.7% as it cut unprofitable acquisition spend
Root and Carvana Extend Embedded Insurance Deal to 2028
Root, Inc. announced the extension of its exclusive embedded insurance partnership with Carvana, securing the agreement through at least August 2028. The partnership, which launched in 2022 as Carvana Insurance Built with Root, has sold more than 200,000 policies in under four years, offering an industry-first three-click insurance purchase at the point of sale. Root's CEO Alex Timm highlighted the program's success in delivering simple, integrated insurance to car shoppers. The renewal underscores the strength of the collaboration between Root's data science platform and Carvana's customer experience.
ROOT · Demand · Positive Root secures its exclusive embedded insurance deal with Carvana through at least August 2028, with over 200,000 policies sold.
CVNA · Demand · Positive Carvana extends its exclusive embedded insurance partnership with Root through 2028, deepening its point-of-sale offering to car buyers.
Root, Inc. announced new rates that will reduce auto insurance premiums for Florida customers by 15% on average, citing the impact of state legal reforms. The company, which has served Florida since 2022 and now covers more than 52,000 policyholders there, says nearly all will see lower premiums, with eligible customers saving about $400 per year, totaling approximately $21 million in annualized savings. Root attributes the reduction to historic legislative reforms enacted in 2022 and 2023 that have lowered litigation-related costs, allowing insurers to price coverage more accurately. Founder and CEO Alex Timm said the company is excited to pass savings on to drivers as Florida's market improves.
ROOT · Pricing · Positive Root cuts Florida auto premiums 15% on average, citing legal reforms that lowered litigation costs and let it price coverage more accurately.
Root Inc. Posts Improved Q2 Results, Maintains Hold Rating
Root Inc. reported second-quarter 2026 results with revenues of $389 million, up 2% year over year, and adjusted EBITDA of $44 million, up 16% year over year. The company's net underwriting margin improved 310 basis points to 7.9%, driven by expense discipline, while policies in force rose 6% to 0.484 million. Root bought back $20 million of shares under its $75 million repurchase authorization. Despite the improvements, Zacks Investment Research maintains a Hold rating on the stock, citing a premium valuation and muted analyst sentiment.
Root expects 2026 policies in force growth to be relatively flat year over year while targeting a national footprint by end of 2027
Root expects its policies in force growth in 2026 to be relatively flat year over year if the current competitive environment persists, while the company targets a national footprint by the end of 2027. In the second quarter, net income increased 15% year-over-year to $25 million, revenue rose 2% to $389 million, and policies in force grew 6% to 484,000. The net combined ratio improved 3 percentage points year-over-year to a 92% net combined ratio, driven by expense discipline. Root launched operations in New Jersey, bringing its presence to 37 states covering over 80% of the addressable population, and announced a partnership with insurance shopping platform Jerry. The company also refinanced its $200 million debt facility and repurchased more than $20 million in shares under a $75 million authorization.
Root partners with Jerry to embed car insurance inside its app
Root announced a partnership with auto and insurance marketplace Jerry to embed data-driven car insurance directly into Jerry's app. The integration is designed to deliver real-time quotes, customizable policies, and policy binding within Jerry's existing user journey. The move expands Root's embedded distribution approach by meeting customers inside a high-intent digital shopping experience. Root comes into this partnership at a share price of $66.21, after a very large 3 year return and a decline of 55.1% over 5 years. The stock has risen 10.3% over the past week and 20.6% over the past month, while being down 6.6% year to date and 46.4% over the past year.
ROOT · Demand · Positive Partnership with Jerry expands distribution, embedding Root's insurance into a high-intent shopping app, likely to increase policy sales.
Jerry · Technology · Positive Jerry integrates Root's data-driven insurance into its app, enhancing its marketplace offering with real-time quotes and policy binding.
United States