Full-Time
Posted on 10/3/2025
Direct-to-consumer auto insurer with telematics
$165.2k - $188k/yr
Remote in USA
Remote
| , |
Root Insurance sells auto insurance through a digital-first, direct-to-consumer model. A smartphone app collects driving data to calculate a personalized premium, and customers purchase and manage coverage online without traditional agents. By using telematics and avoiding agents, it lowers costs and passes savings to customers, focusing on fair pricing for good drivers. Its goal is to make auto insurance affordable and easy to use for good drivers through a data-driven, online experience.
Company Size
1,001-5,000
Company Stage
IPO
Headquarters
Columbus, Ohio
Founded
2015
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Flexible Work Hours
Remote Work Options
Health Insurance
401(k) Retirement Plan
Paid Sick Leave
Paid Holidays
Root reported Q4 revenues of $397 million, up 21.5% year on year, exceeding analyst expectations by 3.3%. The technology-driven auto insurer, which uses mobile apps and data science to price policies based on individual driving behaviour, also beat analysts' EPS and net premiums earned estimates. Despite the strong results, Root's shares have fallen 26.5% since reporting and currently trade at $44.87. The 33 property and casualty insurance stocks tracked reported a strong Q4 overall, with revenues beating consensus estimates by 2.9% as a group. However, share prices across the sector have declined 8% on average since the latest earnings results. Root pioneered a data-driven approach to auto insurance that rewards good driving habits.
Root Inc., a US-based insurance provider, reported record 2025 results with revenue growing 29% and net income reaching $40 million, up 30% year-over-year. Gross Written Premium rose 16%, whilst policies in force doubled compared to 2024. The company finished the year with $312 million in unencumbered capital and expanded coverage to 80% of the US population. AI-driven pricing models increased customer lifetime values by over 20%. Root also secured partnerships including a telematics-based insurance initiative with Toyota. Despite full-year Adjusted EBITDA reaching $132 million, Q4 net income declined $17 million to $5 million due to reinvestment in marketing and partnerships. The company expects lower net income in 2026 as it prioritises new business acquisition.
Root, a digital auto insurance company, reported fourth-quarter revenue of $397 million, exceeding analyst estimates by 3.3% and growing 21.5% year-on-year. The company's shares jumped 12.2% following the results. Net premiums earned reached $367.3 million, beating estimates of $355.2 million with 22.6% year-on-year growth. Root posted a GAAP profit of $0.31 per share, significantly above the consensus estimate of negative $0.48 per share. The combined ratio came in at 99.7%, beating analyst expectations of 105%. The company, which uses mobile apps and data science to price policies based on individual driving behaviour, has grown revenue at a 34.3% compound annual growth rate over the past five years. Root's market capitalisation stands at $896.6 million.
On September 23, the company's subsidiary, Root Insurance, announced its entry into Washington state.
Armstrong is no stranger to Root Insurance having been with the organization while competing with Chip Ganassi Racing.