Root is a technology company revolutionizing personal insurance with a pricing model based upon fairness and a modern customer experience. We believe the $266 billion U.S. auto insurance market is ripe for disruption. The company uses a mobile app; through telematics, data science and smart phone technology, information is gathered about a driver’s performance and that information “allows us to price our customers’ policies more fairly,” according to the prospectus.
From the prospectus: “We have built a company that recognizes each individual is unique and puts customers in control, rewarding them for their actions. For centuries, traditional insurance companies have grouped people into risk pools and long relied on the ‘law of large numbers’ to produce acceptable pricing on an aggregate basis. Fairness at the individual level has been largely ignored.
“Root is different—we use technology to measure risk based on individual performance, prioritizing fairness to the customer.”
The company is licensed in 36 states, currently active in 30 states, and its goal is to be licensed in all 50 states by early 2021.
(**Note: Revenue and net loss figures are for 2019, from the prospectus.)
|Industry:||Insurance - Auto, Home & Renters - Property & Casualty|
|Address||80 E. Rich Street, Suite 500 Columbus, Ohio 43215|
|Phone Number||(866) 980-9431|
|View Prospectus:||ROOT, INC.|
|Revenues||$290.2 mil (last 12 months)|
|Net Income||$-282.4 mil (last 12 months)|
|Price range||$22.00 - $25.00|
|Est. $ Volume||$568.7 mil|
|Manager / Joint Managers||Goldman Sachs/ Morgan Stanley|
|CO-Managers||Barclays/ Wells Fargo Securities/ Credit Suisse/ Deutsche Bank Securities/ Evercore ISI/ Truist Securities/ Cantor/ JMP Securities/ Siebert Williams Shank|
|Expected To Trade:||10/28/2020|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|