Auto Insurer Root Inc. Reports 12% Increase in Q2 Net Income

Root Inc. reported second quarter 2026 net income of $25.4 million, an increase of 15% over the same period a year ago.

For Q2 the combined ratio came in at 92.1 compared with 95.2 a year ago during the same time.

In a letter to shareholders, Root Inc, the parent of insurtech Root Insurance, said the pace of use of artificial intelligence is “expanding what’s possible.”

“The earliest generations of Root’s models relied on structured data and machine learning to improve pricing accuracy beyond traditional actuarial methods,” said Alex Timm, co-founder and CEO. “Today, advances in AI and foundation models allow us to extract predictive insights directly from complex, unstructured information while meaningfully accelerating feature generation and model development.”

Timm added that Root’s data assets now include 37 billion miles of driving data and more than 900,000 claims filed.

“Many large incumbents have scale and data, but continue to modernize decades-old technology stacks,” Timm said. “Many newer technology companies have modern software capabilities, but lack the regulatory infrastructure, claims experience, underwriting history, and capital foundation required to operate as an insurance carrier at scale.”

“We believe the insurance industry is entering a generational technology paradigm shift, and we are uniquely positioned to lead,” added Timm.

Root now operated in 37 states with the recent addition on New Jersey. Root also announced a partnership with Jerry, an insurance shopping platform, to expand its presence across digital marketplaces. The Columbus, Ohio-based auto insurer reported 483,921 policies in force at the end of Q2, up 6% from last year.

Root said its partnership and independent agent channels represented about 51% of new writings in Q2, up from about 44% in Q2 2025. Timm said the competitive direct channel “remained challenging” but the insurer is maintaining discipline.

“We plan to pursue growth only when it meets our target returns,” he said.

Topics Carriers Auto Profit Loss