Root

Inside P&C’s morning summary of the key stories to get you up to speed fast.

The suit is related to the violation of a non-disclosure agreement between the parties.

“Tomorrow will be a better day.” “Next year will be a better year.” “The coming decade will be when this industry realizes its true potential.” We hear the same for most public enterprises.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

There has been no official response from Root, but Inside P&C took a look at the company reportedly making the takeover bid, Embedded Insurance.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

This would be a premium to Root’s closing price on Tuesday of $6.02 per share, which gives the company a market value just north of $80mn, significantly below its peak of roughly $7.5bn.

InsurTechs are still the most heavily shorted among P&C names, though they likely have been beneficiaries of a short squeeze for most of 2023.

InsurTech carriers pivot to profitability vs growth.

The company is seeing high single-digit loss cost trends, so the carrier will file for rate ‘even in states where we at target’.

The InsurTech slashed its operating loss by 59% year on year to $29.8mn, as gross loss ratio narrowed by 12.6 points to 71.5%.

Root’s challenges generate lessons for other InsurTechs, as its stock value crash leads to a management exodus, and the banking collapse dries up funding needed to balance cash burn.