(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
$0.0001 par value per share |
Large accelerated filer ☐ | |||||
Non-accelerated filer ☐ | Smaller reporting company | ||||
Emerging growth company |
Page | ||||||||
ROOT, INC. AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED | |||||||||||
As of | |||||||||||
March 31, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
(in millions, except par value) | |||||||||||
Assets | |||||||||||
Investments: | |||||||||||
Fixed maturities available-for-sale, at fair value (amortized cost: $ | $ | $ | |||||||||
Short-term investments (amortized cost: $ | |||||||||||
Other investments | |||||||||||
Total investments | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Premiums receivable, net of allowance of $ | |||||||||||
Reinsurance recoverable and receivable, net of allowance of $ | |||||||||||
Prepaid reinsurance premiums | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Loss and loss adjustment expense reserves | $ | $ | |||||||||
Unearned premiums | |||||||||||
Long-term debt and warrants | |||||||||||
Reinsurance premiums payable | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and Contingencies (Note 11) | |||||||||||
Redeemable convertible preferred stock, $ | |||||||||||
Stockholders’ equity: | |||||||||||
Class A common stock, $ | |||||||||||
Class B convertible common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity | $ | $ |
ROOT, INC. AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - UNAUDITED | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions, except per share data) | |||||||||||
Revenues: | |||||||||||
Net premiums earned | $ | $ | |||||||||
Net investment income | |||||||||||
Fee income | |||||||||||
Other income | |||||||||||
Total revenues | |||||||||||
Operating expenses: | |||||||||||
Loss and loss adjustment expenses | |||||||||||
Sales and marketing | |||||||||||
Other insurance expense | |||||||||||
Technology and development | |||||||||||
General and administrative | |||||||||||
Total operating expenses | |||||||||||
Operating income (loss) | ( | ||||||||||
Interest expense | ( | ( | |||||||||
Loss before income tax expense | ( | ( | |||||||||
Income tax expense | |||||||||||
Net loss | ( | ( | |||||||||
Other comprehensive (loss) income: | |||||||||||
Changes in net unrealized (losses) gains on investments | ( | ||||||||||
Comprehensive loss | $ | ( | $ | ( | |||||||
Loss per common share: basic and diluted (both Class A and B) | $ | ( | $ | ( | |||||||
Weighted-average common shares outstanding: basic and diluted (both Class A and B) |
ROOT, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - UNAUDITED | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Convertible Preferred Stock | Class A and Class B Convertible Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Loss | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Class A Shares | Class B Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance—January 1, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock—restricted stock units vesting, net of shares withheld for employee taxes | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock—share-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Warrant compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Warrant issuance costs | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance—March 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance—January 1, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock—share-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Warrant compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Warrant issuance costs | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance—March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ |
ROOT, INC. AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Share-based compensation | |||||||||||
Warrant compensation expense | |||||||||||
Depreciation and amortization | |||||||||||
Bad debt expense | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Premiums receivable | ( | ( | |||||||||
Reinsurance recoverable and receivable | ( | ||||||||||
Prepaid reinsurance premiums | ( | ||||||||||
Other assets | ( | ||||||||||
Losses and loss adjustment expenses reserves | ( | ||||||||||
Unearned premiums | |||||||||||
Reinsurance premiums payable | ( | ( | |||||||||
Accounts payable and accrued expenses | ( | ( | |||||||||
Other liabilities | ( | ||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of investments | ( | ( | |||||||||
Proceeds from maturities, call and pay downs of investments | |||||||||||
Capitalization of internally developed software | ( | ( | |||||||||
Purchases of fixed assets | ( | ||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Taxes paid related to net share settlement of equity awards | ( | ||||||||||
Net cash used in financing activities | ( | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
As of | |||||||||||
March 31, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ | $ |
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Balance, January 1 | $ | $ | |||||||||
Acquisition costs deferred | |||||||||||
Amortization expense | ( | ( | |||||||||
Balance, March 31 | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||
Amortized Cost | Allowance for Expected Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
U.S. Treasury securities and agencies | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Municipal securities | ( | ||||||||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||
Other debt obligations | ( | ||||||||||||||||||||||||||||
Total fixed maturities | ( | ||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Amortized Cost | Allowance for Expected Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
U.S. Treasury securities and agencies | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Municipal securities | ( | ||||||||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||
Other debt obligations | ( | ||||||||||||||||||||||||||||
Total fixed maturities | ( | ||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities and agencies | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Municipal securities | ( | ( | |||||||||||||||||||||||||||||||||
Corporate debt securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other debt obligations | ( | ( | |||||||||||||||||||||||||||||||||
Total fixed maturities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities and agencies | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Municipal securities | ( | ( | |||||||||||||||||||||||||||||||||
Corporate debt securities | ( | ( | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other debt obligations | ( | ( | |||||||||||||||||||||||||||||||||
Total fixed maturities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
March 31, 2024 | |||||||||||
Amortized Cost | Fair Value | ||||||||||
(dollars in millions) | |||||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through five years | |||||||||||
Due five years through 10 years | |||||||||||
Due after 10 years | |||||||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Interest on bonds | $ | $ | |||||||||
Interest on deposits and cash equivalents | |||||||||||
Total | |||||||||||
Investment expense | ( | ( | |||||||||
Net investment income | $ | $ |
March 31, 2024 | |||||||||||||||||
Amortized Cost | Fair Value | % of Total Fair Value | |||||||||||||||
(dollars in millions) | |||||||||||||||||
S&P Global rating or equivalent | |||||||||||||||||
AAA | $ | $ | % | ||||||||||||||
AA+, AA, AA-, A-1 | |||||||||||||||||
A+, A, A- | |||||||||||||||||
BBB+, BBB, BBB- | |||||||||||||||||
Total | $ | $ | % |
December 31, 2023 | |||||||||||||||||
Amortized Cost | Fair Value | % of Total Fair Value | |||||||||||||||
(dollars in millions) | |||||||||||||||||
S&P Global rating or equivalent | |||||||||||||||||
AAA | $ | $ | % | ||||||||||||||
AA+, AA, AA-, A-1 | |||||||||||||||||
A+, A, A- | |||||||||||||||||
BBB+, BBB, BBB- | |||||||||||||||||
Total | $ | $ | % |
March 31, 2024 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
U.S. Treasury securities and agencies | $ | $ | $ | $ | |||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Other debt obligations | |||||||||||||||||||||||
Total fixed maturities | |||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
U.S. Treasury securities and agencies | $ | $ | $ | $ | |||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Other debt obligations | |||||||||||||||||||||||
Total fixed maturities | |||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Carrying Amount as of March 31, 2024 | Estimated Fair Value as of March 31, 2024 | Carrying Amount as of December 31, 2023 | Estimated Fair Value as of December 31, 2023 | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Long-term debt | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Gross loss and LAE reserves, January 1 | $ | $ | |||||||||
Reinsurance recoverable on unpaid losses | ( | ( | |||||||||
Net loss and LAE reserves, January 1 | |||||||||||
Net incurred loss and LAE related to: | |||||||||||
Current year | |||||||||||
Prior years | ( | ||||||||||
Total incurred | |||||||||||
Net paid loss and LAE related to: | |||||||||||
Current year | |||||||||||
Prior years | |||||||||||
Total paid | |||||||||||
Net loss and LAE reserves, March 31 | |||||||||||
Plus reinsurance recoverable on unpaid losses | |||||||||||
Gross loss and LAE reserves, March 31 | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Premiums written: | |||||||||||
Direct | $ | $ | |||||||||
Assumed | |||||||||||
Ceded | ( | ( | |||||||||
Net premiums written | $ | $ | |||||||||
Premiums earned: | |||||||||||
Direct | $ | $ | |||||||||
Assumed | |||||||||||
Ceded | ( | ( | |||||||||
Net premiums earned | $ | $ | |||||||||
Losses and LAE incurred: | |||||||||||
Direct | $ | $ | |||||||||
Assumed | |||||||||||
Ceded | ( | ( | |||||||||
Net losses and LAE incurred | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(dollars in millions) | |||||||||||
Term Loan | $ | $ | |||||||||
Accrued interest payable | |||||||||||
Unamortized discount and debt issuance costs and warrants | ( | ( | |||||||||
Total | $ | $ |
Three Months Ended March 31, | Cumulative Incurred Through March 31, 2024 | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(dollars in millions) | |||||||||||||||||
Restructuring costs: | |||||||||||||||||
Employee costs | $ | $ | $ | ||||||||||||||
Real estate exit costs | |||||||||||||||||
Other costs | |||||||||||||||||
Total restructuring costs | $ | $ | $ |
Employee costs | |||||
(dollars in millions) | |||||
Restructuring activity: | |||||
Restructuring liability as of January 1, 2024 | $ | ||||
Expense incurred | |||||
Payments | ( | ||||
Restructuring liability as of March 31, 2024 | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Share-based compensation expense: | |||||||||||
Loss and loss adjustment expenses | $ | $ | |||||||||
Sales and marketing | |||||||||||
Other insurance expense | |||||||||||
Technology and development | |||||||||||
General and administrative | |||||||||||
Total share-based compensation expense | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Share-based compensation expense: | |||||||||||
Restricted stock unit expense | $ | $ | |||||||||
Performance-based restricted stock unit expense | |||||||||||
Stock option expense | |||||||||||
Total share-based compensation expense | $ | $ |
Three Months Ended March 31, 2024 | ||||||||||||||||||||
Restricted Stock Units and Performance-Based Restricted Stock Units | Number of Shares | Weighted-Average Grant Date Fair Value per Share | Aggregate Intrinsic Value | |||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
Nonvested at January 1, 2024 | $ | $ | ||||||||||||||||||
Granted | ||||||||||||||||||||
Vested | ( | |||||||||||||||||||
Forfeited, expired or canceled | ||||||||||||||||||||
Nonvested at March 31, 2024 | $ | $ |
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
Options | Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value | ||||||||||||||||||||||
(in millions, except exercise price and term amounts) | ||||||||||||||||||||||||||
Outstanding and exercisable at January 1, 2024 | $ | $ | ||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||
Exercised | ||||||||||||||||||||||||||
Forfeited, expired or canceled | ||||||||||||||||||||||||||
Outstanding and exercisable at March 31, 2024 | $ | $ | ||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions, except per share amounts) | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Weighted-average common shares outstanding: basic and diluted (both Class A and B) | |||||||||||
Loss per common share: basic and diluted (both Class A and B) | $ | ( | $ | ( |
As of March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Options to purchase common stock | |||||||||||
Nonvested shares subject to repurchase | |||||||||||
RSUs and PSUs | |||||||||||
Redeemable convertible preferred stock (as converted to common stock) | |||||||||||
Warrants to purchase common stock | |||||||||||
Total | |||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
State: | |||||||||||||||||||||||
Texas | $ | % | $ | % | |||||||||||||||||||
Georgia | |||||||||||||||||||||||
South Carolina | |||||||||||||||||||||||
Colorado | |||||||||||||||||||||||
Pennsylvania | |||||||||||||||||||||||
Florida | |||||||||||||||||||||||
Arizona | |||||||||||||||||||||||
Ohio | |||||||||||||||||||||||
Maryland | |||||||||||||||||||||||
Utah | |||||||||||||||||||||||
All others states | |||||||||||||||||||||||
Total | $ | % | $ | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions, except premiums per policy) | |||||||||||
Policies in force | 401,255 | 199,685 | |||||||||
Premiums per policy | $ | 1,482 | $ | 1,292 | |||||||
Premiums in force | $ | 1,189.3 | $ | 516.0 | |||||||
Gross premiums written | $ | 330.7 | $ | 134.7 | |||||||
Gross premiums earned | $ | 275.0 | $ | 130.1 | |||||||
Gross profit | $ | 63.9 | $ | 5.5 | |||||||
Net loss | $ | (6.2) | $ | (40.9) | |||||||
Direct contribution | $ | 80.7 | $ | 18.6 | |||||||
Adjusted EBITDA | $ | 15.1 | $ | (11.3) | |||||||
Net loss and LAE ratio | 72.3 | % | 105.5 | % | |||||||
Net expense ratio | 29.7 | % | 55.7 | % | |||||||
Net combined ratio | 102.0 | % | 161.2 | % | |||||||
Gross loss ratio | 60.6 | % | 71.5 | % | |||||||
Gross LAE ratio | 9.9 | % | 11.2 | % | |||||||
Gross expense ratio | 29.2 | % | 40.3 | % | |||||||
Gross combined ratio | 99.7 | % | 123.0 | % | |||||||
Gross accident period loss ratio | 61.2 | % | 65.6 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Net premiums earned | $ | 230.3 | $ | 60.0 | $ | 170.3 | 283.8 | % | |||||||||||||||
Net investment income | 9.2 | 6.7 | 2.5 | 37.3 | % | ||||||||||||||||||
Fee income | 14.7 | 3.2 | 11.5 | 359.4 | % | ||||||||||||||||||
Other income | 0.7 | 0.2 | 0.5 | 250.0 | % | ||||||||||||||||||
Total revenues | 254.9 | 70.1 | 184.8 | 263.6 | % | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Loss and loss adjustment expenses | 166.4 | 63.3 | 103.1 | 162.9 | % | ||||||||||||||||||
Sales and marketing | 30.4 | 3.6 | 26.8 | 744.4 | % | ||||||||||||||||||
Other insurance expense | 24.6 | 1.3 | 23.3 | 1,792.3 | % | ||||||||||||||||||
Technology and development | 11.0 | 10.2 | 0.8 | 7.8 | % | ||||||||||||||||||
General and administrative | 17.1 | 21.5 | (4.4) | (20.5) | % | ||||||||||||||||||
Total operating expenses | 249.5 | 99.9 | 149.6 | 149.7 | % | ||||||||||||||||||
Operating income (loss) | 5.4 | (29.8) | 35.2 | 118.1 | % | ||||||||||||||||||
Interest expense | (11.6) | (11.1) | (0.5) | 4.5 | % | ||||||||||||||||||
Loss before income tax expense | (6.2) | (40.9) | 34.7 | (84.8) | % | ||||||||||||||||||
Income tax expense | — | — | — | — | % | ||||||||||||||||||
Net loss | (6.2) | (40.9) | 34.7 | (84.8) | % | ||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Changes in net unrealized (losses) gains on investments | (0.8) | 1.1 | (1.9) | (172.7) | % | ||||||||||||||||||
Comprehensive loss | $ | (7.0) | $ | (39.8) | $ | 32.8 | (82.4) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Gross premiums written | $ | 330.7 | $ | 134.7 | $ | 196.0 | 145.5 | % | |||||||||||||||
Ceded premiums written | (46.7) | (69.9) | 23.2 | (33.2) | % | ||||||||||||||||||
Net premiums written | 284.0 | 64.8 | 219.2 | 338.3 | % | ||||||||||||||||||
Gross premiums earned | 275.0 | 130.1 | 144.9 | 111.4 | % | ||||||||||||||||||
Ceded premiums earned | (44.7) | (70.1) | 25.4 | (36.2) | % | ||||||||||||||||||
Net premiums earned | $ | 230.3 | $ | 60.0 | $ | 170.3 | 283.8 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Total revenue | $ | 254.9 | $ | 70.1 | |||||||
Loss and loss adjustment expenses | (166.4) | (63.3) | |||||||||
Other insurance expense | (24.6) | (1.3) | |||||||||
Gross profit | 63.9 | 5.5 | |||||||||
Net investment income | (9.2) | (6.7) | |||||||||
Adjustments from other insurance expense(1) | 20.8 | 13.0 | |||||||||
Ceded premiums earned | 44.7 | 70.1 | |||||||||
Ceded loss and loss adjustment expenses | (27.3) | (44.2) | |||||||||
Net ceding commission and other(2) | (12.2) | (19.1) | |||||||||
Direct contribution | $ | 80.7 | $ | 18.6 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Net loss | $ | (6.2) | $ | (40.9) | |||||||
Adjustments: | |||||||||||
Interest expense | 10.9 | 10.4 | |||||||||
Income tax expense | — | — | |||||||||
Depreciation and amortization | 2.8 | 2.6 | |||||||||
Share-based compensation | 4.6 | 2.1 | |||||||||
Warrant compensation expense | 2.8 | 4.4 | |||||||||
Restructuring costs(1) | 0.1 | 5.6 | |||||||||
Write-offs and other(2) | 0.1 | 4.5 | |||||||||
Adjusted EBITDA | $ | 15.1 | $ | (11.3) |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Net cash provided by (used in) operating activities | $ | 14.5 | $ | (83.7) | |||||||
Net cash (used in) provided by investing activities | (52.3) | 0.9 | |||||||||
Net cash used in financing activities | (0.4) | — |
Incorporation by Reference | |||||||||||||||||||||||
Exhibit Number | Description of Exhibit | Form | SEC File Number | Exhibit | Filing Date | Filed Herewith | |||||||||||||||||
3.1 | 8-K | 001-39658 | 3.1 | October 30, 2020 | |||||||||||||||||||
3.2 | 8-K | 001-39658 | 3.1 | August 15, 2022 | |||||||||||||||||||
3.3 | 10-K | 001-39658 | 3.3 | February 22, 2023 | |||||||||||||||||||
3.4 | 8-K | 001-39658 | 3.1 | October 1, 2021 | |||||||||||||||||||
4.1 | S-1/A | 333-249332 | 4.1 | October 20, 2020 | |||||||||||||||||||
4.2 | 8-K | 001-39658 | 4.1 | October 1, 2021 | |||||||||||||||||||
4.3 | 8-K | 001-39658 | 4.1 | January 27, 2022 | |||||||||||||||||||
4.4 | 8-K | 001-39658 | 4.2 | January 27, 2022 | |||||||||||||||||||
31.1 | X | ||||||||||||||||||||||
31.2 | X | ||||||||||||||||||||||
32.1* | X | ||||||||||||||||||||||
101.INS | Inline XBRL Instance Document | ||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | ||||||||||||||||||||||
Root, Inc. | |||||||||||||||||||||||
Date: April 30, 2024 | By: | /s/ Alexander Timm | |||||||||||||||||||||
Alexander Timm | |||||||||||||||||||||||
Chief Executive Officer and Director | |||||||||||||||||||||||
(Principal Executive Officer) | |||||||||||||||||||||||
Date: April 30, 2024 | By: | /s/ Megan Binkley | |||||||||||||||||||||
Megan Binkley | |||||||||||||||||||||||
Chief Financial Officer | |||||||||||||||||||||||
(Principal Financial Officer) | |||||||||||||||||||||||
Date: April 30, 2024 | By: | /s/ Ryan Forish | |||||||||||||||||||||
Ryan Forish | |||||||||||||||||||||||
Chief Accounting Officer | |||||||||||||||||||||||
(Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Root, Inc.; | |||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting ((as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: April 30, 2024 | /s/ Alexander Timm | |||||||
Alexander Timm | ||||||||
Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) |
1 | I have reviewed this quarterly report on Form 10-Q of Root, Inc.; | |||||||
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4 | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting ((as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
5 | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: April 30, 2024 | /s/ Megan Binkley | |||||||
Megan Binkley | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
1 | The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2024 to which this certification is attached as Exhibit 32.1 (the “Periodic Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and | |||||||
2 | The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Alexander Timm | ||||||||||||||
Alexander Timm | ||||||||||||||
Chief Executive Officer and Director | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
/s/ Megan Binkley | ||||||||||||||
Megan Binkley | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
NATURE OF BUSINESS |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS Root, Inc. is a holding company which, directly or indirectly, maintains 100% ownership of each of its subsidiaries, including, among others, Root Insurance Company and Root Property & Casualty Insurance Company, both Ohio-domiciled insurance companies, and Root Reinsurance Company, Ltd., a Cayman Islands-domiciled reinsurance company, together with Root, Inc., “we,” “us” or “our.” We were formed in 2015 and began writing personal auto insurance in July 2016. We are a technology company operating primarily a direct-to-consumer model with the majority of our personal insurance customers acquired through mobile apps. We offer auto and renters insurance products underwritten by Root Insurance Company and Root Property & Casualty Insurance Company.
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation—In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. All such adjustments are of a normal and recurring nature. These condensed consolidated financial statements are unaudited and, accordingly, should be read in conjunction with the consolidated financial statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission, or SEC, on February 21, 2024. Basis of Consolidation—The unaudited condensed consolidated financial statements include the accounts of Root, Inc. and its subsidiaries, all of which are wholly owned. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. All intercompany accounts and transactions have been eliminated. Use of Estimates—The preparation of the unaudited condensed consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our unaudited condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, or LAE, valuation allowances for income taxes and allowance for expected credit losses on premium receivables and reinsurance recoverables. Cash, Cash Equivalents and Restricted Cash—The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amount in the condensed consolidated statements of cash flows:
Deferred Policy Acquisition Costs—The following tables provides a reconciliation of the beginning and ending deferred policy acquisition costs, net of accumulated amortization, reported in other assets within the condensed consolidated balance sheets as of March 31, 2024 and 2023:
Upcoming Accounting Pronouncements—In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU looks to provide improvements to the segment disclosure by providing users with more decision-useful information about reportable segments in a public entity. The main provisions require a company to disclose, on an annual and interim basis, significant expenses included within each reported measure of segment profit or loss, an amount for other segment items by reportable segment and a description of its composition. It also requires all annual disclosures about a reportable segments’ profit or loss and assets to be reported on an interim basis. Although we operate in only one reporting segment, we are still required to provide all the disclosures required by this ASU and all existing segment disclosures in Topic 280. The ASU is to be applied retrospectively to all prior periods presented in the financial statements with an effective date for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of this ASU. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU looks to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The main provisions to the rate reconciliation disclosure require public entities on an annual basis to: disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The main provisions to the income taxes paid disclosure require that all entities disclose on an annual basis: the amount of income taxes paid disaggregated by federal, state and foreign taxes and the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid meets a quantitative threshold. This ASU also requires all entities to disclose: income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign and income tax expense (benefit) from continuing operations disaggregated by federal, state and foreign. This ASU is to be applied on a prospective basis with an effective date for all public entities for annual periods beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of this ASU.
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at March 31, 2024 and December 31, 2023 are as follows:
Management reviewed the available-for-sale securities at each balance sheet date to consider whether it was necessary to recognize a credit loss as of March 31, 2024 and December 31, 2023. We do not intend to sell the securities and it is not more likely than not that we will be required to sell the securities before recovery. Management concluded that the available-for-sale securities’ unrealized losses were due to non-credit related factors and, therefore, there was no allowance for credit loss as of March 31, 2024 and December 31, 2023. The following tables reflect the gross unrealized losses and fair value of short-term investments and available-for-sale fixed maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2024 and December 31, 2023:
Other Investments As of March 31, 2024 and December 31, 2023, other investments related to our private equity investments were $4.4 million. There were no realized or unrealized gains and losses or impairment losses recognized on private equity investments for the three months ended March 31, 2024 and 2023. There were no realized gains or losses on short-term investments, available-for-sale fixed maturities and other investments for the three months ended March 31, 2024 and 2023. The following table sets forth the amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities by contractual maturity at March 31, 2024:
The following table sets forth the components of net investment income for the three months ended March 31, 2024 and 2023:
The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at March 31, 2024 and December 31, 2023:
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables provide information about our financial assets measured and reported at fair value as of March 31, 2024 and December 31, 2023:
We estimate the fair value of all our different classes of Level 2 fixed maturities and short-term investments by using quoted prices from a combination of an independent pricing vendor or broker/dealer, pricing models, quoted prices of securities with similar characteristics or discounted cash flows. All significant inputs were observable in the active markets. Fair Value of Long-Term Debt The carrying amount of long-term debt is recorded at the unpaid balance, net of discount and debt issuance costs. The fair value of outstanding long-term debt is classified within Level 2 of the fair value hierarchy. The fair value is based on a model referencing observable interest rates and spreads to project and discount cash flows to present value. As of March 31, 2024 and December 31, 2023, the carrying amounts and fair values of these financial instruments were as follows: The carrying amounts of other short-term financial instruments approximates their fair value due to their short-term nature.
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LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:
Incurred losses and LAE attributable to prior accident years was a decrease of $3.0 million and an increase of $1.4 million for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024, the development of incurred losses and LAE related to prior periods was primarily driven by lower-than-expected reported losses from accident year 2023. For the three months ended March 31, 2023, the development of incurred losses and LAE related to prior periods was primarily driven by higher-than-expected reported losses on material damage claims due to higher vehicle repair costs and higher-than-expected LAE on prior accident period claims.
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REINSURANCE |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REINSURANCE | REINSURANCE The following table reflects amounts affecting the condensed consolidated statements of operations and comprehensive loss for reinsurance for the three months ended March 31, 2024 and 2023:
In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, we would be liable to the policyholder for such defaulted amounts. GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTENGross premiums written by state is as follows for the three months ended March 31, 2024 and 2023:
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LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT In January 2022, we entered into a $300.0 million five-year term loan, or Term Loan, with the principal amount due and payable upon maturity on January 27, 2027. Interest is payable quarterly and is determined on a floating interest rate currently calculated on the Secured Overnight Financing Rate, or SOFR, with a 1.0% floor, plus 9.0%. The following summarizes the carrying value of long-term debt and warrants as of March 31, 2024 and December 31, 2023:
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The consolidated effective tax rate was zero for the three months ended March 31, 2024 and 2023. The difference between these rates and the U.S. federal income tax rate of 21% was primarily due to a full valuation allowance on our U.S. deferred tax assets. As of March 31, 2024 and December 31, 2023, we did not have any unrecognized tax benefits for uncertain tax positions and had no interest or penalties related to uncertain tax positions.
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RESTRUCTURING COSTS |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING COSTS | RESTRUCTURING COSTS In 2022, we conducted strategic initiatives to reduce operating costs, improve efficiency, and increase focus on our strategic priorities. These initiatives resulted in restructuring actions that included a reduction in workforce levels, contract terminations, and in certain instances, a reduction in office space. These restructuring actions include the following costs: Employee costs—consist of severance, benefits, share-based compensation, and employee compensation expense dependent upon continuous employment for certain employees and related employee costs. Real estate exit costs—consist of real estate exit costs primarily related to accelerated amortization of right-of-use assets, leasehold improvements and furniture and fixtures. Other costs—primarily consist of contract termination costs incurred as part of our efforts to improve efficiency and reduce operating costs and accelerated expense for software that no longer has economic benefit. As of March 31, 2024, we do not expect to incur any additional material expenditures in future periods related to restructuring actions that have occurred. The following table displays restructuring costs recorded in general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss:
The following table displays a rollforward of the accrual for restructuring costs recorded in accounts payable and accrued expenses on the condensed consolidated balance sheets:
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SHARE-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Warrants In October 2021, we issued Carvana eight tranches of warrants, comprised of three tranches of “short-term warrants” and five tranches of “long-term warrants,” with the opportunity to purchase a maximum of 7.2 million shares of Class A common stock. As of March 31, 2024, we determined the remaining unvested short-term warrants were probable of vesting. Under that scenario, it is not a possible outcome for the long-term warrants to also vest, so they are considered not probable of vesting. We recognized warrant compensation expense related to these equity-classified warrants based on policies originating through the integrated automobile insurance solution for Carvana’s online buying platform. All of these warrants are out-of-the-money and therefore have no intrinsic value as of March 31, 2024. We recognized warrant compensation expense of $2.8 million and $4.4 million for the three months ended March 31, 2024 and 2023, respectively. Warrant compensation expense is recorded in other insurance expense in the condensed consolidated statements of operations and comprehensive loss. As of March 31, 2024, there was $1.0 million of unrecognized compensation cost related to warrants. The remaining costs are expected to be recognized in the second quarter of 2024. Employee Share-Based Compensation We maintain an equity incentive plan, or the Plan, for the issuance and grant of equity awards (restricted stock, restricted stock units, or RSUs, PSUs, and incentive and nonqualified stock options) to our officers, directors, employees and certain advisors. As of March 31, 2024, we had 1.9 million common shares available for issuance under the Plan. When these RSU and PSU awards vest, we fund the related payroll tax withholding and remittance obligations by either (i) withholding shares of our Class A common stock that have otherwise been issued with respect to such awards and pay the relevant tax authorities in cash to satisfy such tax obligations, or (ii) allow holders of such awards to pay us an amount in cash, via a broker, sufficient to cover the applicable tax withholding obligations. We recognize the related tax withholding liability for employee taxes on the date of the event triggering the measurement and payment of the tax to the taxing authority, which is the vesting date. The following table displays share-based compensation expense recorded in the condensed consolidated statements of operations and comprehensive loss:
The following table provides total share-based compensation expense by type of award:
As of March 31, 2024, there was $0.8 million, $15.8 million, and $1.7 million of unrecognized compensation cost related to unvested stock options, RSUs, and PSUs, respectively. The remaining costs are expected to be recognized over a period of approximately two years for unvested stock options, four years for RSUs and three years for PSUs. Restricted Stock Units and Performance-Based Restricted Stock Units A summary of RSU and PSU activity for the three months ended March 31, 2024 is as follows:
Stock Options A summary of option activity for the three months ended March 31, 2024 is as follows:
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES From time to time, we are party to litigation and legal proceedings relating to our business operations. While the outcome of all legal actions is not presently determinable, except as disclosed below, we do not believe that we are party to any current or pending legal action that could reasonably be expected to have a material adverse effect on our financial condition or results of operations and cash flow. On December 19, 2022, a purported class action complaint was filed against the Company’s subsidiary, Root Insurance Company, in the U.S. District Court for the Western District of Texas (Case No. 1:22-cv-01328-LY) by an individual on her behalf and further claiming to represent a putative class of insureds. The complaint alleges that Root Insurance Company breached its insurance contract and violated specific provisions of the Texas Prompt Payment of Claims Act for an alleged failure to include sales tax in total loss vehicle settlements. The complaint seeks damages to include payment of alleged benefits owed under the policy, in addition to pre- and post-judgment interest and attorneys fees on behalf of the named plaintiff and the putative class members. Root Insurance Company’s motion to dismiss the claims set forth in the complaint was granted and the lawsuit was dismissed with prejudice on August 22, 2023, which dismissal has been appealed. The Company believes that the claims in this lawsuit are without merit and intends to defend against them vigorously. The lawsuit is in its early stages. Therefore, at this time, we cannot predict the outcome or estimate the likelihood or magnitude of our possible or potential loss contingency. On June 27, 2022, a verified shareholder derivative complaint was filed against certain of the Company’s current and former officers and directors in the U.S. District Court for the District of Delaware (Case No. 1:22-cv-00865). The Company was named as a nominal defendant. The complaint alleges that defendants made false or misleading statements and omissions of purportedly material fact, in violation of Section 10(b) of the Securities Exchange Act of 1934, or the Exchange Act, and Rule 10b-5 thereunder, breached their fiduciary duties and/or aided and abetted the breach of fiduciary duties, were unjustly enriched, wasted corporate assets, and are liable under Section 11(f) of the Securities Act of 1933, or the Securities Act, in connection with and following the Company’s initial public offering. The complaint seeks unspecified damages. The Company believes that the claims in this lawsuit are without merit and intends to defend against them vigorously. The lawsuit is currently stayed pending final resolution of the below matter and, at this time, we cannot predict the outcome or estimate the likelihood or magnitude of our possible or potential loss contingency. On March 19, 2021, a purported class action complaint was filed against the Company and certain of its current and former officers and directors in the U.S. District Court for the Southern District of Ohio (Case No. 2:21-cv-01197) on behalf of certain Root shareholders. The complaint alleged that defendants made false or misleading statements and omissions of purportedly material fact, in violation of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 thereunder, and of Sections 11 and 15 of the Securities Act in connection with and following the Company’s initial public offering. The complaint sought unspecified damages. The defendants’ motion to dismiss the claims set forth in the complaint was granted and the lawsuit was dismissed with prejudice on March 31, 2023, which dismissal was affirmed on April 29, 2024, by the United States Court of Appeals for the Sixth Circuit. Should plaintiffs further appeal, the Company intends to continue to vigorously defend against the allegations. We cannot predict the outcome or estimate the likelihood or magnitude of our possible or potential loss contingency. We are contingently liable for possible future assessments under regulatory requirements for insolvencies and impairments of unaffiliated insurance companies.
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LOSS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOSS PER SHARE | LOSS PER SHARE The following table displays the computation of basic and diluted loss per share for both Class A and Class B common stock for the three months ended March 31, 2024 and 2023:
We excluded the following potentially dilutive common stock equivalents, presented based on amounts outstanding at each period end, from the computation of diluted loss per share attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect:
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GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN | REINSURANCE The following table reflects amounts affecting the condensed consolidated statements of operations and comprehensive loss for reinsurance for the three months ended March 31, 2024 and 2023:
In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, we would be liable to the policyholder for such defaulted amounts. GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTENGross premiums written by state is as follows for the three months ended March 31, 2024 and 2023:
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net loss | $ (6.2) | $ (40.9) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation—In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. All such adjustments are of a normal and recurring nature. These condensed consolidated financial statements are unaudited and, accordingly, should be read in conjunction with the consolidated financial statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission, or SEC, on February 21, 2024.
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Basis of Consolidation | Basis of Consolidation—The unaudited condensed consolidated financial statements include the accounts of Root, Inc. and its subsidiaries, all of which are wholly owned. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. All intercompany accounts and transactions have been eliminated.
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Use of Estimates | Use of Estimates—The preparation of the unaudited condensed consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our unaudited condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, or LAE, valuation allowances for income taxes and allowance for expected credit losses on premium receivables and reinsurance recoverables.
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Upcoming Accounting Pronouncements | Upcoming Accounting Pronouncements—In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU looks to provide improvements to the segment disclosure by providing users with more decision-useful information about reportable segments in a public entity. The main provisions require a company to disclose, on an annual and interim basis, significant expenses included within each reported measure of segment profit or loss, an amount for other segment items by reportable segment and a description of its composition. It also requires all annual disclosures about a reportable segments’ profit or loss and assets to be reported on an interim basis. Although we operate in only one reporting segment, we are still required to provide all the disclosures required by this ASU and all existing segment disclosures in Topic 280. The ASU is to be applied retrospectively to all prior periods presented in the financial statements with an effective date for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of this ASU. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU looks to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The main provisions to the rate reconciliation disclosure require public entities on an annual basis to: disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The main provisions to the income taxes paid disclosure require that all entities disclose on an annual basis: the amount of income taxes paid disaggregated by federal, state and foreign taxes and the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid meets a quantitative threshold. This ASU also requires all entities to disclose: income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign and income tax expense (benefit) from continuing operations disaggregated by federal, state and foreign. This ASU is to be applied on a prospective basis with an effective date for all public entities for annual periods beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of this ASU.
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amount in the condensed consolidated statements of cash flows:
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Deferred Policy Acquisition Costs | The following tables provides a reconciliation of the beginning and ending deferred policy acquisition costs, net of accumulated amortization, reported in other assets within the condensed consolidated balance sheets as of March 31, 2024 and 2023:
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INVESTMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of AFS Debt Securities | The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at March 31, 2024 and December 31, 2023 are as follows:
The following table sets forth the amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities by contractual maturity at March 31, 2024:
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Schedule of Unrealized Losses | The following tables reflect the gross unrealized losses and fair value of short-term investments and available-for-sale fixed maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2024 and December 31, 2023:
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Schedule of Net Investment Income | The following table sets forth the components of net investment income for the three months ended March 31, 2024 and 2023:
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Schedule of Credit Ratings | The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at March 31, 2024 and December 31, 2023:
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value | The following tables provide information about our financial assets measured and reported at fair value as of March 31, 2024 and December 31, 2023:
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Schedule of Carrying Amounts and Fair Values of Financial Instruments | As of March 31, 2024 and December 31, 2023, the carrying amounts and fair values of these financial instruments were as follows:
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LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Reserve Balances for Loss and LAE, Net of Reinsurance | The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:
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REINSURANCE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Comprehensive Loss For Reinsurance | The following table reflects amounts affecting the condensed consolidated statements of operations and comprehensive loss for reinsurance for the three months ended March 31, 2024 and 2023:
Gross premiums written by state is as follows for the three months ended March 31, 2024 and 2023:
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LONG-TERM DEBT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long Term Debt | The following summarizes the carrying value of long-term debt and warrants as of March 31, 2024 and December 31, 2023:
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RESTRUCTURING COSTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Costs | The following table displays restructuring costs recorded in general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss:
The following table displays a rollforward of the accrual for restructuring costs recorded in accounts payable and accrued expenses on the condensed consolidated balance sheets:
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SHARE-BASED COMPENSATION (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-Based Compensation Expense | The following table displays share-based compensation expense recorded in the condensed consolidated statements of operations and comprehensive loss:
The following table provides total share-based compensation expense by type of award:
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Schedule of RSU Activity | A summary of RSU and PSU activity for the three months ended March 31, 2024 is as follows:
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Schedule of Option Activity | A summary of option activity for the three months ended March 31, 2024 is as follows:
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LOSS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The following table displays the computation of basic and diluted loss per share for both Class A and Class B common stock for the three months ended March 31, 2024 and 2023:
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Schedule of Anti-Dilutive Securities | We excluded the following potentially dilutive common stock equivalents, presented based on amounts outstanding at each period end, from the computation of diluted loss per share attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect:
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GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Direct and Assumed Premiums Written | The following table reflects amounts affecting the condensed consolidated statements of operations and comprehensive loss for reinsurance for the three months ended March 31, 2024 and 2023:
Gross premiums written by state is as follows for the three months ended March 31, 2024 and 2023:
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 640.5 | $ 678.7 | ||
Restricted cash | 1.0 | 1.0 | ||
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 641.5 | $ 679.7 | $ 680.3 | $ 763.1 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Policy Acquisition Costs (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
segment
|
Mar. 31, 2023
USD ($)
|
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Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, January 1 | $ 18.0 | $ 6.7 |
Acquisition costs deferred | 10.0 | 4.8 |
Amortization expense | (6.6) | (2.6) |
Balance, March 31 | $ 21.4 | $ 8.9 |
Number of reportable segments | segment | 1 |
INVESTMENTS - Other Investments (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
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Investments, Debt and Equity Securities [Abstract] | |||
Other investments | $ 4,400,000 | $ 4,400,000 | |
Realized gains (losses) on investments | $ 0 | $ 0 |
INVESTMENTS - Contractual Maturity (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Amortized Cost | ||
Due in one year or less | $ 36.0 | |
Due after one year through five years | 137.5 | |
Due five years through 10 years | 24.3 | |
Due after 10 years | 21.5 | |
Amortized Cost | 219.3 | $ 169.3 |
Fair Value | ||
Due in one year or less | 35.6 | |
Due after one year through five years | 135.2 | |
Due five years through 10 years | 24.2 | |
Due after 10 years | 21.0 | |
Total | $ 216.0 | $ 166.8 |
INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Net Investment Income [Line Items] | ||
Realized gain value | $ 9.8 | $ 6.8 |
Investment expense | (0.6) | (0.1) |
Net investment income | 9.2 | 6.7 |
Interest on bonds | ||
Net Investment Income [Line Items] | ||
Realized gain value | 1.7 | 0.9 |
Interest on deposits and cash equivalents | ||
Net Investment Income [Line Items] | ||
Realized gain value | $ 8.1 | $ 5.9 |
FAIR VALUE OF FINANCIAL INSTRUMENTS - Long Term Debt (Details) - Level 2 - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 299.3 | $ 299.0 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 304.8 | $ 305.2 |
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Schedule of Reserve Balance (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
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Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Gross loss and LAE reserves, January 1 | $ 284.2 | $ 287.4 | ||
Reinsurance recoverable on unpaid losses | (43.8) | (76.4) | ||
Net loss and LAE reserves, January 1 | 275.5 | 185.9 | $ 240.4 | $ 211.0 |
Net incurred loss and LAE related to: | ||||
Current year | 169.4 | 61.9 | ||
Prior years | (3.0) | 1.4 | ||
Total incurred | 166.4 | 63.3 | ||
Net paid loss and LAE related to: | ||||
Current year | 52.1 | 24.4 | ||
Prior years | 79.2 | 64.0 | ||
Total paid | 131.3 | 88.4 | ||
Net loss and LAE reserves, March 31 | 275.5 | 185.9 | ||
Plus reinsurance recoverable on unpaid losses | 46.5 | 73.7 | ||
Gross loss and LAE reserves, March 31 | $ 322.0 | $ 259.6 |
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Insurance [Abstract] | ||
Incurred losses and LAE attributable to prior accident years | $ (3.0) | $ 1.4 |
REINSURANCE- Schedule of Comprehensive Loss For Reinsurance (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Premiums written: | ||
Direct | $ 272.9 | $ 123.8 |
Assumed | 57.8 | 10.9 |
Ceded | (46.7) | (69.9) |
Net premiums written | 284.0 | 64.8 |
Premiums earned: | ||
Direct | 228.4 | 120.1 |
Assumed | 46.6 | 10.0 |
Ceded | (44.7) | (70.1) |
Net premiums earned | 230.3 | 60.0 |
Losses and LAE incurred: | ||
Direct | 162.2 | 99.8 |
Assumed | 31.5 | 7.7 |
Ceded | (27.3) | (44.2) |
Net losses and LAE incurred | $ 166.4 | $ 63.3 |
LONG-TERM DEBT - Narrative (Details) - Term Loan - USD ($) |
1 Months Ended | |
---|---|---|
Jan. 27, 2022 |
Jan. 31, 2022 |
|
SOFR | ||
Debt Instrument [Line Items] | ||
Debt instrument, floor interest rate (in percent) | 1.00% | |
Variable rate percentage (in percent) | 9.00% | |
Secured debt | ||
Debt Instrument [Line Items] | ||
Debt amount | $ 300,000,000 | |
Debt instrument, term | 5 years |
LONG-TERM DEBT - Schedule of Long Term Debt (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Accrued interest payable | $ 7.5 | $ 7.9 |
Unamortized discount and debt issuance costs and warrants | (8.2) | (8.9) |
Total | 299.3 | 299.0 |
Secured debt | Term Loan | ||
Debt Instrument [Line Items] | ||
Term Loan | $ 300.0 | $ 300.0 |
INCOME TAXES (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 0.00% | 0.00% |
Federal income tax rate (in percent) | 21.00% |
RESTRUCTURING COSTS - Restructuring Costs Recorded In Consolidated Statements Of Operations And Comprehensive Loss (Details) - General and administrative - USD ($) $ in Millions |
3 Months Ended | 27 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
|
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring costs | $ 0.1 | $ 5.6 | $ 29.9 |
Employee costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring costs | 0.1 | 2.3 | 23.3 |
Real estate exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring costs | 0.0 | 0.0 | 2.1 |
Other costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring costs | $ 0.0 | $ 3.3 | $ 4.5 |
RESTRUCTURING COSTS - Restructuring Costs Recorded In Consolidated Balance Sheets (Details) - Employee costs $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Restructuring activity: | |
Restructuring liability, beginning balance | $ 8.3 |
Expense incurred | 0.1 |
Payments | (8.4) |
Restructuring liability, ending balance | $ 0.0 |
SHARE-BASED COMPENSATION - RSU Activity (Details) - Restricted stock unit expense $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
$ / shares
shares
| |
Number of Shares | |
Beginning balance (in shares) | shares | 1.9 |
Granted (in shares) | shares | 0.0 |
Vested (in shares) | shares | (0.1) |
Forfeited, expired or canceled (in shares) | shares | 0.0 |
Ending balance (in shares) | shares | 1.8 |
Weighted-Average Grant Date Fair Value per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 14.47 |
Granted (in dollars per share) | $ / shares | 9.06 |
Vested (in dollars per share) | $ / shares | 45.94 |
Forfeited, expired or canceled (in dollars per share) | $ / shares | 16.50 |
Ending balance (in dollars per share) | $ / shares | $ 12.77 |
Aggregate Intrinsic Value | |
Beginning balance | $ | $ 20.3 |
Vested | $ | 1.1 |
Ending balance | $ | $ 112.5 |
SHARE-BASED COMPENSATION - Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Number of Shares | ||
Outstanding, beginning balance (in shares) | 0.1 | |
Granted (in shares) | 0.0 | |
Exercised (in shares) | 0.0 | |
Forfeited, expired or canceled (in shares) | 0.0 | |
Outstanding, ending balance (in shares) | 0.1 | 0.1 |
Weighted-Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 33.68 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Forfeited, expired and canceled (in dollars per share) | 43.20 | |
Outstanding, ending balance (in dollars per share) | $ 33.68 | $ 33.68 |
Outstanding, weighted-average remaining contractual term (in years) | 4 years 14 days | 4 years 3 months 14 days |
Outstanding, aggregate intrinsic value | $ 5.6 | $ 0.5 |
Exercised, aggregate intrinsic value | $ 0.0 |
LOSS PER SHARE - Schedule of Basic and Diluted Loss per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Net loss | $ (6.2) | $ (40.9) |
Weighted-average common shares outstanding: basic (both Class A and B) (in shares) | 14.6 | 14.2 |
Weighted-average common shares outstanding: diluted (both Class A and B) (in shares) | 14.6 | 14.2 |
Loss per common share: basic (both Class A and B) (in dollars per share) | $ (0.42) | $ (2.88) |
Loss per common share: diluted (both Class A and B) (in dollars per share) | $ (0.42) | $ (2.88) |
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