Insurtech Root Swings to Q2 Profit on Growth in Partnership Channel

Root Inc. swung to second quarter net income of $22 million versus a loss of $7.8 million a year ago during the same time.

Results build off net income of $18.2 million for Q1 2025, reversing a loss of $6.2 million for Q1 2024. Net income as of June 30 was $40.4 million compared with a loss of $14 million at the same point in 2024.

The Columbus, Ohio-based parent company of insurtech Root Insurance said the combined ratio for Q2 was 95.2, an improvement of 7.5 points year-over-year.

Gross premiums written increased 12.3% in Q2 to $346.2 million. Root said its distribution partnership channel tripled new writings in Q2, year-over-year. Partnerships with the likes of Hyundai Capital America, Experian, Caravan Insurance, Goosehead Insurance made up 44% of new writings in Q2 2025.

“Within the partnership channel, our growth continued with the launch of comparative raters serving independent agents and adding more automotive and financial services partners. This channel is critical to our long-term growth strategy,” said Alex Timm, co-founder and CEO of the insurtech, in a letter to shareholders.

Timm told shareholders the auto insurer launched a new pricing model in several states, which is showing signs of improving risk selection. Root recently received approval in Washington and has more filings pending in several other states as it looks to expand.

Root is currently appointed with about 4% of independent agents, according to Timm, and the insurer recently launched its product on comparative raters, EZLynx and PL Rating—used by about half of all independent agents.

“Through these platforms, Root significantly expands its reach, meeting independent agents where they are with a technology that provides increased efficiency to their quote and bind process,” Timm said.

Topics Profit Loss InsurTech Tech