Root Inc. reported a first quarter 2026 net income of $35.9 million—the best quarterly result in
the company’s history—compared with net income of $18.4 million for the same period in 2025.
In a letter to shareholders, Root Inc, the parent of insurtech Root Insurance, said it continued inve
stment in its system put on track “to building an entirely automated insurance carrier.”
“From our next generation risk brain in pricing, to our modern, AI-native claims architecture, Roo
t is increasingly becoming a closed loop system capable of rapid decision making and continuous learning,” said Alex Timm, co-founder and CEO.
For Q1 the combined ratio came in at 91.4 compared with 95.6 a year ago during the same time.
Policies in force at the Columbus, Ohio-based auto insurer grew 9% to 495,429 “despite a challenging and increasingly competitive environment,” Timm said.
“Our growth may not always be linear—we expect it will reflect the quality of opportunities availab
le in the market,” he added. Net premiums during Q1 were $383.4 million compared with $392 million last year.
Root said it plans to expand its independent agent distribution channel to 100,000 eligible producers. Timm said Root can appoint agents within 24 hours, and the diff
erentiation of its direct channel translates well to the agency channel, who have “proven very adept at ad
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opting new technologies and many customers value the advice and options by independent agents,
especially customers who have complicated insurance needs.”
In addition, the partnership channel—with the help of relationships with Carvana, Toyota, and Hyund
ai Capital—grew new writings nearly 30% year-over-year.
Now operating in 36 states, Root said it scheduled to arrive in New Jersey in 2026 with Wyomin
g, Massachusetts, North Carolina, Michigan, Idaho, and Maine pending regulatory approval.
“The core activities of what it means to be an insurance company are squarely in the cross hairs
of AI,” Timm wrote. “This is similar to the transition from analog to digital—but at a much more rapid pace. At Root, we are driving toward a fully automated, AI-based, clos
ed-loop insurance platform spanning acquisition, underwriting, pricing, and claims. This integrated sy
stem compounds in value: improvements in claims accuracy enhance pricing precision, stronger
underwriting reduces fraud and loss volatility, and each component reinforces the others.”
