Slide 1: Meet Root 2024 Company Overview
Meet Root 2024 Company Overview
Slide 2: Forward-looking statements
Confidential | Do Not Distribute Forward-looking statements This presentation contains forward-looking statements relating to, among other things, the future performance of Root and its consolidated subsidiaries that are based on Root’s current expectations, forecasts, and assumptions, and involve r
Slide 3: Investment highlights
Investment highlights 3 1 Largest auto insurtech in the country and one of the best loss ratios in the industry Grew new writings ~5x in Q4 2023 compared to the previous year while delivering one of the best loss ratios in the industry Key Highlights Results 2 Proprietary tech platform and data scie
Slide 4: Root by the numbers
Root by the numbers 4 $783M 2023 Gross Written Premium 66% Industry-leading Gross Accident Period Loss Ratio in 20233 $300B+ Market size, massive opportunity2 25B Miles of driving data as of March 2024 47 sec As little as 47-second purchase time ~5x New Writings Growth YoY 55% Policies-in-Force grow
Slide 5: Auto insurance is a massive market with transformations in consumer behavior and technology
33% 16% 51% Auto insurance is a massive market with transformations in consumer behavior and technology 5 ● $300B+1 market and the largest property and casualty line of business ● Typically the first insurance purchase for most consumers ● Mandatory purchase under most state laws ● Top 10 carriers a
Slide 6: Long-term goal: be the #1 personal lines insurance provider in the U.S.
6 Long-term goal Be the #1 personal lines insurance provider in the U.S. How we’re doing it World-class data science and technology
Slide 7: Strong performance in both growth and loss ratio puts the company on trajectory to build market share profitably
Strong performance in both growth and loss ratio puts the company on trajectory to build market share profitably 7 ● Diversified distribution in D2C and partnerships allows for long-term growth and drove >100% growth YoY in Q4 2023 - D2C mobile app creates streamlined and easy to use telematics expe
Slide 8: Technology creates delightful customer experiences across direct to consumer and embedded products
Technology creates delightful customer experiences across our direct to consumer and embedded products 8 Partnerships: B2B Our modern tech stack seamlessly integrates into existing platforms, with integrations ranging from marketing partnerships to fully embedded platforms across automotive, financi
Slide 9: Our differentiated data science and technology assets are the bedrock of our competitive advantage
Our differentiated data science and technology assets are the bedrock of our competitive advantage Highly granular machine learning models systematically target the best customers and automate growth/profit tradeoffs. Embedded suite of APIs allows partners to flexibly quote and bind at point of vehi
Slide 10: Better risk score drives better pricing
Better risk score drives better pricing As we grow our data sets, our algorithms get smarter, allowing us to grow faster 10 Increasing data drives better risk scores Better pricing leads to better customer experience Better customer experience drives growth Growth creates more data
Slide 11: Multiple levers for long-term growth across direct, partnerships, and geographic expansion
Multiple levers for long-term growth across direct, partnerships, and geographic expansion 11 Machine learning marketing fuels mobile-first experience Growing footprint creates key growth opportunity Embedded technology powers partnership distribution ● Root and Carvana exclusively partnered to deve
Slide 12: Industry-leading gross accident period loss ratio demonstrates differentiated pricing technology
Industry-leading gross accident period loss ratio demonstrates differentiated pricing technology 12 Continued improvement in underwriting results across market cycles and macro events Accident Period Loss Ratio as of 12/31/23 Before COVID, as the company continually scaled data sets and retrained al
Slide 13: Consistent improvements driving the company toward profitability
Consistent improvements driving the company toward profitability 13 Net Loss and Adjusted EBITDA Disciplined approach to underwriting, capital, and expense management has put us on path to profitability
Slide 14: Strong and experienced management team leading the charge
Strong and experienced management team leading the charge Alex Timm Co-founder & Chief Executive Officer Founded Root in 2015, worked at Nationwide Insurance as a senior strategy consultant for P&C lines, Fellow of the Casualty Actuarial Society, and member of the American Academy of Actuaries. Mark
Slide 15: Appendix
>> Appendix
Slide 16: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA Unencumbered capital: We define unencumbered capital as unrestricted cash and cash equivalents held outside of our regulated insurance entities. This amount includes borrowed funds that are subject to certain minimum liquidity covenants. Adjusted EBITDA: