Root, Inc. shares have fallen 12% over the past month as slower premium growth and higher loss costs weighed on an otherwise profitable quarter. Gross written premium declined 1.9% year over year to $339.7 million in the second quarter of 2026, and management expects year-end 2026 policies in force to be relatively flat if current direct auto competition persists. Profitability held up, with second-quarter net income up 15.5% to $25.4 million, adjusted EBITDA up 16.5% to $43.8 million, and the net combined ratio improving 310 basis points to 92.1%; for the first half of 2026, adjusted EBITDA reached $100.6 million versus $69.5 million a year earlier. The gross accident-period loss ratio rose to 61.6% from 57.4% a year earlier on vehicle repair costs, medical inflation and channel mix, and management expects the usual seasonal rise in loss ratios in the second half of 2026. Root plans to launch its next predictive pricing model in the fourth quarter of 2026, with a more material impact expected in 2027, while its exclusive embedded insurance partnership with Carvana, which surpassed 200,000 policies sold, now runs through at least August 2028.
American Integrity Insurance Group, Inc.
Heritage Insurance Hldgs Inc
Mercury General Corporation
Root Inc
Carvana Co
Caesars Entertainment Corporation