<div>
  <ul>
    <li>
      <p>
        Root Insurance reported a loss per share of USD 2.55 in Q2 2023, compared to a loss of USD 6.77 in the prior year and beating analysts' estimated loss per share of USD 3.03. The company incurred a net loss of USD 36.7 million during the quarter, compared to a loss of USD 95.5 million in Q2 2022.
      </p>
    </li>
    <li>
      <p>
        Root&rsquo;s gross loss ratio improved by 21.5 percentage points (pp) to 65.5% in Q2 2023, compared to 87.0% over the same period last year. The company attributes the lower net losses to a combination of improved pricing decisions and underwriting advancements, as well as expense management. Its overall operating expenses fell 40.0% YoY to USD 100.0 million during the quarter.&nbsp;
      </p>
    </li>
    <li>
      <p>
        Root&rsquo;s gross written premiums (GWP) increased by 3.5% YoY to USD 145.0 million in Q2 2023, primarily due to a rise in the premium per auto policy, despite a decline in premiums in force. As of June 2023, the company had 203,840 auto policies in force (down 31.5% YoY), while the premium per auto policy increased 20.4% YoY to USD 1,353 in Q2 2023. Root&rsquo;s total revenue for the quarter amounted to USD 74.8 million (down 7.0% YoY), beating analyst estimates by 13.0%.
      </p>
    </li>
    <li>
      <p>
        Renewal premium percentage of gross premiums earned decreased by 3 pp to 72% during the quarter, primarily due to the growth of new business. Throughout the quarter, Root's direct channel experienced significant growth in new underwritings, accounting for 83% of all new underwritings, while its embedded channel accounted for the remaining 17%. It also reported that the customer adoption rate had tripled with its first embedded partner, 
        <a href="https://sp-edge.com/updates/11900">
          Carvana
        </a>
        .
      </p>
    </li>
    <li>
      <p>
        Furthermore, at the quarter's conclusion, Root launched its latest segmentation model, leveraging data gathered from policyholders to refine pricing accuracy. The company claims that this model is significantly more sophisticated, incorporating nearly double the proprietary data and surpassing its predecessors in risk segmentation capabilities, demonstrating a 17% greater predictive capacity compared to the former model. Root anticipates that it will encompass 75% of new businesses by the end of 2023.
      </p>
    </li>
    <li>
      <p>
        Root Insurance has not provided specific guidance for Q3 2023 or the full year. However, it expects continued growth in new writings for the second half of 2023, supported by an increased, but well-managed customer acquisition expense. It also expects its loss ratio to remain favorable and its operating results to improve. However, the company projects an elevated level of unencumbered cash burn in H2 2023 compared to H1 2023, but projects full-year cash burn to be much lower than 2022.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


<div>
  <p>
    <a href="https://ir.joinroot.com/static-files/362fc010-f0ab-401d-abc0-561f8a98b227">
      Earnings release 
    </a>
  </p>
</div>


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