Root Shares Jump 25% After 1Q Revenue, Gross Premiums Beat Estimates
Dow Jones05-01
Shares of Root on Tuesday climbed 25% to $87 in post-market trading after the insurance company reported a larger-than-expected jump in first-quarter revenue with higher gross premiums written.
The company reported quarterly revenue of $254.9 million from $70.1 million for the same period a year earlier. Analysts polled by FactSet had forecast lower revenue of $204 million.
Its gross premiums written rose to $330.7 million from $134.7 million a year ago and ahead of the $267.9 million expected by Wall Street.
Root also said that its disciplined focus on unit economics, underwriting outcomes, and expense management helped it post a narrower loss of $6.2 million from a loss of $40.9 million a year ago.
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