InsurTech Root Files IPO with SEC

On Monday, Root filed to go public, adding a second name to the Insurtech IPO rolls in 2020.

Source: Tech Crunch | Published on October 6, 2020

Lemonade was first out the gate this summer, taking its rental and home insurance business public at an attractive valuation, compared to its revenues and margins as we traditionally understand them. Wall Street was enticed by its growth and burgeoning consumer brand, according to one Insurtech executive TechCrunch spoke to earlier this week.

Root, in contrast, is focused on the automotive market, a lucrative space with a host of incumbent players and startup rivals like MetroMile and Clearcover.

The number of shares to be offered and the price range for the proposed offering have not yet been announced. Root said it intends to list its common stock on the Nasdaq Stock Market, under the ticker symbol ROOT.

Root’s active automobile policies grew from 111,736 in 2018 to 281,310 in 2019. That’s just under 152% growth on a year-over-year basis.

And, Root’s active automobile policies grew from 220,536 on June 30, 2019, to 334,327 on June 30, 2020. That’s just under 52% growth on a year-over-year basis.