Root
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The governance practices at Lemonade, Root and Metromile are distinctly “management-friendly” and bear some resemblance to tech disruptors outside the industry. -
After the high of a “successful” IPO, Root has quickly been introduced to the less fun sides of being a public company.
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The share price of the Ohio-based carrier had dropped to $15.26 by midday.
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The CEO said that state-wide expansion would be a “substantial growth lever” for the business.
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The CEO said that state-wide expansion would be a “substantial growth lever” for the business.
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Root’s loss ratio fell 23.5 points to 89.8% in Q3, while its loss adjustment expenses improved 3 points to 9.9%.
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The bank is among Wall Street institutions sounding a note of cautious optimism as they begin to cover the InsurTech.
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But for its stock valuation and ~$650mn to $750mn in new cash proceeds, Root seems in every way like a business in crisis based on its fundamentals.
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Shares hit a high of $28.58 at 12:15, New York time, before returning to their opening levels.
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The carrier raises almost $655mn through the sale of new shares, while existing investors sell another $70mn of stock.
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The IPO plans to raise around $600mn in fresh capital.
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Progressive’s September results were strong. The firm reported $0.57 in operating EPS, up 48.7% YoY, and saw a headline combined of 88.3% (down -4pts YoY).
Related
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February 26, 2025 -
InsurTech stock prices surge, plummet after Q2 earnings results
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