Root Inc., the parent company of Root Insurance based in Columbus, Ohio, reported a strong financial turnaround in the second quarter of 2025. The company posted a net income of $22 million for Q2, a significant improvement from a loss of $7.8 million during the same period last year. This follows a solid first quarter, where Root earned $18.2 million compared to a loss of $6.2 million in the first quarter of 2024. Overall, Root’s net income reached $40.4 million by the end of June, reversing a $14 million loss from mid-2024.
The insurer also saw a boost in its core business, with gross premiums written rising 12.3% in the second quarter to $346.2 million. A major driver of this growth was the company’s distribution partnerships, which tripled new business compared to the previous year. These partnerships now make up 44% of new policies and include well-known names like Hyundai Capital America, Experian, Caravan Insurance, and Goosehead Insurance.
Root CEO Alex Timm highlighted the importance of these partnerships to the company’s future. The firm recently launched comparative raters on platforms such as EZLynx and PL Rating, tools used by around half of independent agents nationally. This move expands Root’s reach, allowing it to connect more efficiently with independent insurance agents across the country. Currently, Root is appointed with roughly 4% of independent agents, and the new platforms aim to increase that number.
In addition, Root is rolling out a new pricing model in several states that has shown early signs of helping the company better select risk. It has secured approval for this model in Washington and is waiting on approvals in other states to expand further.
Root’s combined ratio for the quarter improved by 7.5 points year-over-year, ending at 95.2. This metric signals better underwriting performance and cost control. After weathering losses in previous years, Root’s latest results suggest the company is on a more stable and profitable path as it grows through new partnerships and smarter pricing strategies.