Insurer Root slumps on lower policy-in-force guidance

Root

06/08/2026 17:00

** Shares of insurer Root ROOT.O slump 19.5% to $48.5
** Co on Wednesday cut 2026 policies-in-force guidance to flat from its earlier view of 9% growth, due to a competitive environment especially in the direct channel
** "The competitive environment in Direct remained challenging in the second quarter, as carriers increased marketing spend while lowering prices," Alex Timm Co-founder and CEO said
** "When these cycles occur, we remain disciplined. We plan to pursue growth only when it meets our target returns. While that decision can constrain near-term growth, we believe it is the right one for building long-term shareholder value," he added 
** Q2 gross written premium and gross earned premium fell 2% and 1% from a year earlier, respectively
** Including session's moves, ROOT down 32.5% YTD

(Reporting by Pragyan Kalita in Bengaluru)
((Pragyan.Kalita@thomsonreuters.com;))