Root, Inc. announced its financial results for the fourth quarter and full year ended December 31, 2024, achieving its first full year of GAAP net income profitability with $31 million in net income and $112 million in adjusted EBITDA for 2024. The company also reported $79 million in operating income for the full year, marking a significant turnaround from previous periods.
For the fourth quarter of 2024, Root reported net income of $22 million, operating income of $35 million, and adjusted EBITDA of $43 million. The company demonstrated strong growth, with gross premiums written increasing 66% year-over-year for the full year and policies in force growing 21%. The Partnership channel was a key driver, with new writings increasing 115% year-over-year.
Underwriting performance remained strong, evidenced by a gross accident period loss ratio of 58.9% for the full year 2024 and 61.4% for Q4 2024. The gross combined ratio for the full year was 94.7%, illustrating the efficiency of acquisition investment and fixed expenses. Root also highlighted the launch of the sixth version of its pricing model, which is expected to improve predictive power by 7%.
The successful refinancing of its term loan in October 2024 is expected to reduce interest expense by approximately 50% on a run-rate basis in 2025, further strengthening the company's financial position. Root ended the year with $333 million in unencumbered capital, positioning the company from a position of strength for future growth and continued investment in its business and infrastructure.
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