Root (ROOT) bills itself as “a technology company revolutionizing personal insurance with a pricing model based upon fairness and a modern customer experience.” The company wants to list on the Nasdaq under the “ROOT” ticker.
Root says it’s the only property and casualty insurance carrier with “a scaled proprietary telematics solution” that prices an entire book of business. The company has a large proprietary data set of miles driven, driving behavior, and associated claims.
The insurer is currently licensed in 36 states (active in 30) and hopes to be in every state by early next year.
Financials: 2018 revenue was $43.3M with a $69.1M net loss. 2019 had $290.2M in sales and a $282.4M loss. For H1 2020, revenue was $245.4M and a $144.5M loss.
Dragoneer Investment has agreed to purchase up to $250M in Class A stock at the IPO price in a private placement that will close right after the main offering.
The filing includes the $100M placeholder, meaning the offering is targeting the lower nine-figure range.
Root has a Class A and Class B structure with the former holding one vote per share and the latter 10 votes.
The company says all shares of its capital stock outstanding immediately prior to the offering (including shares held by execs, directors, and affiliates) and all shares issuable on the conversion of outstanding preferred stock will be reclassified into Class B shares immediately prior to the offering’s completion.
Root will fill in the percentage of Class B voting power at a later date.
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Here’s a look at Root’s direct written premium growth and renewal data from the S-1 filing: