Automobile insurance startup Root Inc sold shares in its initial public offering (IPO) on Tuesday at $27 apiece, above its target range, to raise $724.4 million, the company said.
Root, which has $200 million in debt, sold 26.8 million shares in its IPO. The company had set an initial target price range of $22-$25 per share for a sale of around 24.6 million shares.
In 2019, Root earned $290.2 million in revenue with a net loss of $282.4 million. In the first six months of 2020, the company’s revenue was $245.4 million with a net loss of $144.5 million.
Shares in Root are due to begin trading on the Nasdaq on Wednesday under the symbol “ROOT.”
Goldman Sachs, Morgan Stanley, Barclays and Wells Fargo Securities are the lead underwriters for the offering.
Source: Reuters
Post-VIP Roundtable Thoughts: Unpacking the (false) paradox of efficiency vs experience trade offs in insurance by Rory Yates
By Rory Yates: To discuss and debate this topic we ran a wonderful Insurtech Insights session with Amazon Business in their London HQ, and there was a stellar line up debating this topic, and I was honored to moderate it.
Zurich Strengthens Its Fraud Defences with Quantexa Real-Time AI, Connecting Industry-Wide Claims Data
Zurich Insurance is increasing the power of its real-time fraud detection by becoming the first insurer to partner with Quantexa in the UK.
Allianz Joins The Spark as Member; Sirma Boshnakova Appointed to Global Advisory Board
The Spark, the world’s first Global Prevention Lab, has announced that Allianz has joined as a member, with Sirma Boshnakova, Member of the Board of Management of Allianz SE, appointed to The Spark’s Global Advisory Board. This collaboration represents a major step forward in the insurance industry’s shift towards prevention-first strategies and measurable, sustainable impact.
