Root, Inc.

Root Insurance is a recently founded car insurance company looking to penetrate into the well-established car insurance market. Root Insurance is powered entirely by their mobile app. It is licensed in 44 states but currently operates in 34 of those states. Root Insurance customers are incentivized through downloading their app and completing certain requirements.

Root Company
TypePublic
Nasdaq: ROOT
IndustryInsurance
FoundedMarch 2015 (2015-03)
FoundersAlex Timm
Dan Manges
Headquarters
Columbus, Ohio
,
United States
Area served
34 States (Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware,Florida,Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Wisconsin West Virginia)
Key people
Alex Timm (CEO)
Megan Binkley (Deputy Chief Financial Officer)
Matt Bonakdarpour (Chief Technology Officer)
ProductsCar insurance, Renters insurance, Homeowners insurance
RevenueDecrease $310.8 Million(2023)
Increase -$297.7 Million(2023)
Number of employees
775 (2023)
Websitewww.joinroot.com
Footnotes / references
[1]

About

Root Insurance headquarters are based out of Columbus, Ohio. Root Insurance largest markets are Texas, Georgia, Colorado, Pennsylvania, Louisiana, Utah and Nevada. [2] Root Insurance remains committed to embedded insurance, which made up for 41% of the companies new writing in Q4 of 2022 via Carvana. As of December 31, 2022, Root had 220,354 policies in force and $762.1 million in cash and cash equivalents. [3]

As of April 4, 2023, Root stock (NASDAQ ROOT) was trading for less than 2% of its IPO price, after accounting for its 1 for 18 reverse stock split in August 2022. It IPO'd in October 2020 for roughly $6 billion; its market cap on April 4, 2023 was less than $64 million.

History

Root Insurance was founded in March, 2015 by Alex Timm and Dan Manges. In 2021, Dan Manges co-founder retired as CTO but remained a consultant to the company through December, 2021.

In August, 2021, Root announced a partnership deal with Carvana to develop personalized auto insurance for Carvana’s car-buying platform. The deal, formed around a $126 million investment fueled by Carvana for a 5% stake in Root initially, including warrants that can be exercised at certain stages when thresholds are struck. The collaboration uses both companies technology to develop an embedded experience for customers when purchasing a car with Carvana.[4]

In January, 2022, Root closed on a $300 million five-year term loan with BlackRock. The maturity of this term loan is January 27, 2027.[5] On March 23, 2023, long-time Root Insurance C-Suite executive, Daniel Rosenthal resigned. [6]

Sponsorships

In December, 2020, 23XI Racing announced that Root will be one of the sponsors of the No. 23 Toyota Camry driven by Bubba Wallace. As of January, 2023, Root is no longer sponsoring 23XI Racing or Bubba Wallace.[7] [8]

References
  1. "Root Insurance Press, Bios & Media | Resources for Journalists". Root Insurance. Retrieved 2019-08-11.
  2. Timm, Alexander (2023-02-23). "FORM 10-K". sec.gov. Retrieved 2023-02-23.
  3. Timm,Alex= Q4.2022 Shareholder Letter|url=https://ir.joinroot.com/static-files/11f3e499-a851-44f9-980d-ab89ac329b76#:~:text=Dear%20Root%20Shareholders&text=Finished%202022%20with%20a%20Q4,been%20experiencing%20an%20overall%20increase.
  4. Williams, Mark. "Carvana to invest $126 million in Root with new partnership". The Columbus Dispatch. Retrieved 2021-12-16.
  5. "Root Announces Closing of New Term Loan Facility with BlackRock". www.globenewswire.com. Retrieved January 26, 2022.{{cite web}}: CS1 maint: url-status (link)
  6. "Dan Rosenthal departing Root Insurance; annual loss narrows Insurance". www.bizjournals.com. Retrieved 2023-02-23.{{cite web}}: CS1 maint: url-status (link)
  7. "23XI Racing announces sponsors". Jayski's Silly Season Site. NASCAR Digital Media, LLC. December 14, 2020. Retrieved December 14, 2020.
  8. "Bubba Wallace Offers No Apologies In Powerful New Ad". BET. October 27, 2020. Retrieved December 16, 2020.
  • Official website
  • Business data for Root Inc.:
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