Root, Inc.
| Company type | Public |
|---|---|
| Industry | Insurance |
| Founded | March 2015 |
| Founder | Alex Timm, Dan Manges |
| Headquarters | Columbus, Ohio , United States |
Area served | United States |
Key people | Daniel Rosenthal (former Chief Revenue and Operating Officer until March 23, 2023) |
| Products | Digital car insurance, embedded insurance solutions |
| Website | www |
Root Insurance Company operates as a digital car insurance provider within the United States.
About
Based in Columbus, Ohio, Root Insurance specializes in embedded insurance solutions and grows its product range through strategic alliances. As of December 31, 2022, approximately 35% of its clientele came from key states including Texas, Georgia, and Colorado. By December 31, 2023, the company managed 341,764 active policies and held $678.7 million in cash and cash equivalents.
History
Established in March 2015 by Alex Timm and Dan Manges, Root experienced the retirement of co-founder Dan Manges from his CTO role in 2021, although he continued consulting throughout that year. In August 2021, Root entered a partnership with Carvana to integrate customized auto insurance offerings directly into Carvana’s vehicle purchasing platform, marking Root’s initial embedded insurance collaboration. This deal involved Carvana investing $126 million for a 5% equity stake along with warrants exercisable upon reaching certain milestones.
In January 2022, Root obtained a $300 million term loan with a five-year maturity from BlackRock, due January 2027. On March 23, 2023, Daniel Rosenthal, who served as Chief Revenue and Operating Officer since 2017, stepped down from his position.
Since its initial public offering, Root’s stock value has dropped to less than one-seventh of its original price.
Sponsorships
In December 2020, 23XI Racing revealed Root as a sponsor for the No. 23 Toyota Camry piloted by Bubba Wallace. However, by January 2023, Root concluded its sponsorship arrangement with both 23XI Racing and Wallace. In the same year, Root supported Dreyer & Reinbold Racing and driver Ryan Hunter-Reay during the 2023 Indianapolis 500. Looking ahead to 2024, Root secured a multi-event sponsorship agreement with Chip Ganassi Racing, backing drivers Álex Palou and Marcus Armstrong in the IndyCar Series.