0001628280-24-044321 | 10-Q | XBRL Viewer

RESTRUCTURING COSTS

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Beginning 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 September 30, 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 income (loss):


	Three Months Ended September 30,				Nine Months Ended September 30,				Cumulative Incurred Through September 30, 2024
	2024		2023		2024		2023
	(dollars in millions)
Restructuring costs:
Employee costs	$	—	$	1.8	$	0.1	$	5.9	$	23.3
Real estate exit costs	—		—		—		—		2.1
Other costs	—		0.1		—		3.5		4.5
Total restructuring costs	$	—	$	1.9	$	0.1	$	9.4	$	29.9

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:


	Employee costs
	(dollars in millions)
Restructuring activity:
Restructuring liability as of January 1, 2024	$	8.3
Expense incurred	0.1

Payments	(8.4)
Restructuring liability as of September 30, 2024	$	—

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2024

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:


	As of
	September 30,		December 31,
	2024		2023
	(dollars in millions)
Cash and cash equivalents	$	674.8	$	678.7
Restricted cash	1.0		1.0
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$	675.8	$	679.7

Deferred Policy Acquisition Costs

The following table 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 September 30, 2024 and 2023:


	2024		2023
	(dollars in millions)
Balance, January 1	$	18.0	$	6.7
Acquisition costs deferred	32.3		28.5
Amortization expense	(23.8)		(20.4)
Balance, September 30	$	26.5	$	14.8

SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 4.3	$ 4.7	$ 12.7	$ 12.4
Restricted stock unit expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	4.0	4.4	11.6	11.4
Performance-based restricted stock unit expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.2	0.1	0.7	0.1
Stock option expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.1	0.2	0.4	0.9
Loss and loss adjustment expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.6	0.2	1.4	0.5
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.2	0.1	0.5	0.3
Other insurance expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.2	0.1	0.5	0.4
Technology and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.8	0.9	2.3	2.4
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 2.5	$ 3.4	$ 8.0	$ 8.8

SUBSEQUENT EVENTS (Details) - USD ($)	1 Months Ended
SUBSEQUENT EVENTS (Details) - USD ($)	Oct. 30, 2024	Jan. 31, 2022	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023
Subsequent Event [Line Items]
Unamortized debt discount and issuance costs				$ 6,700,000	$ 8,900,000
Term Loan \| Secured debt
Subsequent Event [Line Items]
Debt amount		$ 300,000,000.0
Variable rate percentage (in percent)		9.00%
Debt instrument, floor interest rate (in percent)		1.00%
Amended Term Loan \| Secured debt \| Forecast
Subsequent Event [Line Items]
Unamortized debt discount and issuance costs			$ 3,000,000
Amended Term Loan C, Extinguished And Modified \| Secured debt \| Forecast
Subsequent Event [Line Items]
Unamortized debt discount and issuance costs			$ 5,500,000
Subsequent event \| Term Loan \| Secured debt
Subsequent Event [Line Items]
Extinguishment of debt, amount	$ 237,100,000
Subsequent event \| Amended Term Loan C, Modification \| Secured debt
Subsequent Event [Line Items]
Debt amount	62,900,000
Subsequent event \| Amended Term Loan C, Black Rock Funds \| Secured debt
Subsequent Event [Line Items]
Debt amount	137,100,000
Subsequent event \| Amended Term Loan \| Secured debt
Subsequent Event [Line Items]
Debt amount	$ 200,000,000
Debt instrument, floor interest rate (in percent)	1.00%
Subsequent event \| Amended Term Loan \| Secured debt \| Minimum
Subsequent Event [Line Items]
Variable rate percentage (in percent)	5.25%
Subsequent event \| Amended Term Loan \| Secured debt \| Maximum
Subsequent Event [Line Items]
Variable rate percentage (in percent)	6.00%

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ 8.8	$ (123.4)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Share-based compensation	12.7	12.4
Warrant compensation expense	3.8	13.3
Depreciation and amortization	12.1	8.2
Bad debt expense	22.7	10.6
Gain on lease modification	0.0	(0.3)
Changes in operating assets and liabilities:
Premiums receivable	(84.3)	(83.9)
Reinsurance recoverable and receivable	(35.3)	8.5
Prepaid reinsurance premiums	10.4	38.1
Other assets	(23.1)	10.6
Losses and loss adjustment expenses reserves	108.2	(30.9)
Unearned premiums	70.7	82.4
Reinsurance premiums payable	(8.2)	(48.0)
Accounts payable and accrued expenses	(1.9)	9.6
Other liabilities	29.9	13.1
Net cash provided by (used in) operating activities	126.5	(79.7)
Cash flows from investing activities:
Purchases of investments	(147.7)	(61.7)
Proceeds from maturities, calls and pay downs of investments	40.5	22.3
Sales of investments	0.5	0.5
Capitalization of internally developed software	(7.0)	(7.1)
Purchases of fixed assets	(0.4)	(0.2)
Net cash used in investing activities	(114.1)	(46.2)
Cash flows from financing activities:
Taxes paid related to net share settlement of equity awards	(13.3)	(0.9)
Payment of preferred stock and related warrants issuance costs	(3.0)	0.0
Net cash used in financing activities	(16.3)	(0.9)
Net decrease in cash, cash equivalents and restricted cash	(3.9)	(126.8)
Cash, cash equivalents and restricted cash at beginning of period	679.7	763.1
Cash, cash equivalents and restricted cash at end of period	$ 675.8	$ 636.3

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income (loss)	$ 22.8	$ (45.8)	$ 8.8	$ (123.4)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

SHARE-BASED COMPENSATION - RSU Activity (Details) - Restricted stock unit expense $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Number of Shares
Beginning balance (in shares) \| shares	1.9
Granted (in shares) \| shares	0.3
Vested (in shares) \| shares	(0.7)
Forfeited, expired or canceled (in shares) \| shares	(0.1)
Ending balance (in shares) \| shares	1.4
Weighted-Average Grant Date Fair Value per Share
Beginning balance (in dollars per share) \| $ / shares	$ 14.47
Granted (in dollars per share) \| $ / shares	48.63
Vested (in dollars per share) \| $ / shares	16.67
Forfeited, expired or canceled (in dollars per share) \| $ / shares	17.11
Ending balance (in dollars per share) \| $ / shares	$ 19.56
Aggregate Intrinsic Value
Beginning balance \| $	$ 20.3
Vested \| $	38.0
Ending balance \| $	$ 54.7

NATURE OF BUSINESS (Details)	Sep. 30, 2024
Root Insurance Company
Schedule of Equity Method Investments [Line Items]
Ownership percentage (as percent)	100.00%
Root Property & Casualty Insurance Company
Schedule of Equity Method Investments [Line Items]
Ownership percentage (as percent)	100.00%
Root Reinsurance Company, Ltd.
Schedule of Equity Method Investments [Line Items]
Ownership percentage (as percent)	100.00%

EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

The following table displays the computation of basic and diluted EPS for both Class A and Class B common stock for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in millions, except per share amounts)
Numerator:
Net income (loss)	$	22.8	$	(45.8)	$	8.8	$	(123.4)
Less: Undistributed income allocated to participating securities	(1.1)		—		(0.5)		—
Net income (loss) attributable to common shareholders	21.7		(45.8)		8.3		(123.4)
Denominator:
Weighted-average common shares outstanding: basic (both Class A and B)	15.0		14.5		14.8		14.4
Effect of dilutive securities:
RSUs and PSUs	1.0		—		1.1		—
Redeemable convertible preferred stock	0.8		—		0.8		—

Stock options	0.1		—		0.1		—

Weighted-average common shares outstanding: diluted (both Class A and B)	16.9		14.5		16.8		14.4
Earnings (loss) per common share (both Class A and B):
Basic	$	1.45	$	(3.16)	$	0.56	$	(8.57)
Diluted	$	1.35	$	(3.16)	$	0.52	$	(8.57)

For the three and nine months ended September 30, 2023, we operated at a loss and therefore, the conversion of common stock equivalents would increase the denominator of the diluted EPS calculation and create a lower loss per share. Therefore, these common stock equivalents are considered anti-dilutive and diluted EPS is equal to basic EPS.

We excluded the following potentially dilutive common stock equivalents, presented based on amounts outstanding at each period end, from the computation of diluted EPS attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
	(in millions)
Options to purchase common stock	—	0.1	—	0.1
Nonvested shares subject to repurchase	—	0.1	—	0.1
RSUs and PSUs	0.1	2.0	0.1	2.0
Redeemable convertible preferred stock (as converted to common stock)	—	0.8	—	0.8
Warrants to purchase common stock	7.7	7.7	7.7	7.7
Total	7.8	10.7	7.8	10.7

INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net Investment Income [Line Items]
Realized gain value	$ 11.3	$ 9.3	$ 31.6	$ 23.1
Investment expense	(3.3)	(0.3)	(4.4)	(0.6)
Net investment income	8.0	9.0	27.2	22.5
Interest on bonds
Net Investment Income [Line Items]
Realized gain value	2.6	1.4	6.6	3.3
Interest on deposits and cash equivalents
Net Investment Income [Line Items]
Realized gain value	$ 8.7	$ 7.9	$ 25.0	$ 19.8

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The consolidated effective tax rate was zero for the three and nine months ended September 30, 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 September 30, 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.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

SHARE-BASED COMPENSATION - Narrative (Details) shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($)	Oct. 31, 2021 tranche shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 4,300,000	$ 4,700,000	$ 12,700,000	$ 12,400,000
2020 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) \| shares	1.9		1.9
Other insurance expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 200,000	100,000	$ 500,000	400,000
Warrant \| Other insurance expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	0	5,000,000.0	3,800,000	13,300,000
Stock option expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	100,000	200,000	400,000	900,000
Unrecognized compensation cost, options	600,000		$ 600,000
Unrecognized compensation cost, period of recognition			2 years
Restricted stock unit expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	4,000,000.0	4,400,000	$ 11,600,000	11,400,000
Unrecognized compensation cost	21,600,000		$ 21,600,000
Unrecognized compensation cost, period of recognition			3 years
Performance-based restricted stock unit expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	200,000	$ 100,000	$ 700,000	$ 100,000
Unrecognized compensation cost	$ 1,200,000		$ 1,200,000
Unrecognized compensation cost, period of recognition			3 years
Class A Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) \| shares					7.2
Short Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche					3
Long Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche					5
Carvana
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche					8

RESTRUCTURING COSTS (Tables)

9 Months Ended

Sep. 30, 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 income (loss):


	Three Months Ended September 30,				Nine Months Ended September 30,				Cumulative Incurred Through September 30, 2024
	2024		2023		2024		2023
	(dollars in millions)
Restructuring costs:
Employee costs	$	—	$	1.8	$	0.1	$	5.9	$	23.3
Real estate exit costs	—		—		—		—		2.1
Other costs	—		0.1		—		3.5		4.5
Total restructuring costs	$	—	$	1.9	$	0.1	$	9.4	$	29.9

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:


	Employee costs
	(dollars in millions)
Restructuring activity:
Restructuring liability as of January 1, 2024	$	8.3
Expense incurred	0.1

Payments	(8.4)
Restructuring liability as of September 30, 2024	$	—

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables)

9 Months Ended

Sep. 30, 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:


	Nine Months Ended September 30,
	2024		2023
	(dollars in millions)
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	240.4		211.0
Net incurred loss and LAE related to:
Current year	549.1		209.2
Prior years	(7.9)		(0.6)
Total incurred	541.2		208.6
Net paid loss and LAE related to:
Current year	293.2		87.4
Prior years	146.3		117.3
Total paid	439.5		204.7
Net loss and LAE reserves, September 30	342.1		214.9
Plus reinsurance recoverable on unpaid losses	50.3		41.6
Gross loss and LAE reserves, September 30	$	392.4	$	256.5

INVESTMENTS

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at September 30, 2024 and December 31, 2023 are as follows:


	September 30, 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	$	33.7	$	—	$	0.6	$	—	$	34.3
Municipal securities	23.4		—		0.3		(0.4)		23.3
Corporate debt securities	104.2		—		1.4		(0.6)		105.0
Residential mortgage-backed securities	20.7		—		0.3		(0.1)		20.9
Commercial mortgage-backed securities	52.0		—		0.7		(0.4)		52.3
Other debt obligations	30.1		—		0.3		—		30.4
Total fixed maturities	264.1		—		3.6		(1.5)		266.2
Short-term investments	8.6		—		—		—		8.6
Total	$	272.7	$	—	$	3.6	$	(1.5)	$	274.8

	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	$	14.6	$	—	$	0.1	$	(0.1)	$	14.6
Municipal securities	24.8		—		0.1		(0.8)		24.1
Corporate debt securities	66.3		—		0.2		(1.3)		65.2
Residential mortgage-backed securities	12.0		—		0.1		(0.2)		11.9
Commercial mortgage-backed securities	30.4		—		0.1		(0.7)		29.8
Other debt obligations	20.3		—		0.1		(0.1)		20.3
Total fixed maturities	168.4		—		0.7		(3.2)		165.9
Short-term investments	0.9		—		—		—		0.9
Total	$	169.3	$	—	$	0.7	$	(3.2)	$	166.8

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 September 30, 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 September 30, 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 September 30, 2024 and December 31, 2023:


	September 30, 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	$	2.2	$	—	$	2.5	$	—	$	4.7	$	—
Municipal securities	0.1		—		11.2		(0.4)		11.3		(0.4)
Corporate debt securities	14.2		—		23.2		(0.6)		37.4		(0.6)
Residential mortgage-backed securities	1.6		—		1.7		(0.1)		3.3		(0.1)
Commercial mortgage-backed securities	6.2		—		8.8		(0.4)		15.0		(0.4)
Other debt obligations	0.9		—		2.3		—		3.2		—
Total fixed maturities	25.2		—		49.7		(1.5)		74.9		(1.5)
Short-term investments	1.0		—		—		—		1.0		—
Total	$	26.2	$	—	$	49.7	$	(1.5)	$	75.9	$	(1.5)

	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	$	1.7	$	—	$	2.4	$	(0.1)	$	4.1	$	(0.1)
Municipal securities	3.1		—		15.1		(0.8)		18.2		(0.8)
Corporate debt securities	13.4		—		35.1		(1.3)		48.5		(1.3)
Residential mortgage-backed securities	4.1		—		1.9		(0.2)		6.0		(0.2)
Commercial mortgage-backed securities	9.1		(0.1)		13.4		(0.6)		22.5		(0.7)
Other debt obligations	4.4		—		4.4		(0.1)		8.8		(0.1)
Total fixed maturities	35.8		(0.1)		72.3		(3.1)		108.1		(3.2)
Short-term investments	0.3		—		—		—		0.3		—
Total	$	36.1	$	(0.1)	$	72.3	$	(3.1)	$	108.4	$	(3.2)

Other Investments

As of September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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 September 30, 2024:


	September 30, 2024
	Amortized Cost		Fair Value
	(dollars in millions)
Due in one year or less	$	37.0	$	36.9
Due after one year through five years	174.2		175.8
Due five years through 10 years	30.2		30.8
Due after 10 years	31.3		31.3
Total	$	272.7	$	274.8

The following table sets forth the components of net investment income for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)
Interest on bonds	$	2.6	$	1.4	$	6.6	$	3.3
Interest on deposits and cash equivalents	8.7		7.9		25.0		19.8

Total	11.3		9.3		31.6		23.1
Investment expense	(3.3)		(0.3)		(4.4)		(0.6)
Net investment income	$	8.0	$	9.0	$	27.2	$	22.5

The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at September 30, 2024 and December 31, 2023:


	September 30, 2024
	Amortized Cost		Fair Value		% of Total Fair Value
	(dollars in millions)
S&P Global rating or equivalent
AAA	$	69.3	$	69.7	25.4	%
AA+, AA, AA-, A-1	114.5		115.7		42.1
A+, A, A-	69.5		69.9		25.4
BBB+, BBB, BBB-	19.4		19.5		7.1
Total	$	272.7	$	274.8	100.0	%


	December 31, 2023
	Amortized Cost		Fair Value		% of Total Fair Value
	(dollars in millions)
S&P Global rating or equivalent
AAA	$	53.0	$	52.1	31.2	%
AA+, AA, AA-, A-1	59.4		58.8		35.3
A+, A, A-	42.1		41.2		24.7
BBB+, BBB, BBB-	14.8		14.7		8.8
Total	$	169.3	$	166.8	100.0	%

FAIR VALUE OF FINANCIAL INSTRUMENTS - Long Term Debt (Details) - Level 2 - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Carrying amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 300.9	$ 299.0
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 307.9	$ 305.2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 674.8	$ 678.7
Restricted cash	1.0	1.0
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$ 675.8	$ 679.7	$ 636.3	$ 763.1

INVESTMENTS - Credit Ratings (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 272.7	$ 169.3
Fair Value	274.8	166.8
AAA
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	69.3	53.0
Fair Value	$ 69.7	$ 52.1
AAA \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	25.40%	31.20%
AA+, AA, AA-, A-1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 114.5	$ 59.4
Fair Value	$ 115.7	$ 58.8
AA+, AA, AA-, A-1 \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	42.10%	35.30%
A+, A, A-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 69.5	$ 42.1
Fair Value	$ 69.9	$ 41.2
A+, A, A- \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	25.40%	24.70%
BBB+, BBB, BBB-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 19.4	$ 14.8
Fair Value	$ 19.5	$ 14.7
BBB+, BBB, BBB- \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	7.10%	8.80%
Standard & Poor's Global Rating, Total \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	100.00%	100.00%

REINSURANCE (Tables)

9 Months Ended

Sep. 30, 2024

Insurance [Abstract]

Schedule of Comprehensive Income (Loss) For Reinsurance

The following table reflects amounts affecting the condensed consolidated statements of operations and comprehensive income (loss) for reinsurance for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)










Premiums written:
Direct	$	270.9	$	192.7	$	793.9	$	444.6
Assumed	60.8		31.5		176.7		59.3
Ceded	(27.1)		(22.3)		(118.4)		(159.4)
Net premiums written	$	304.6	$	201.9	$	852.2	$	344.5
Premiums earned:
Direct	$	258.6	$	141.6	$	739.7	$	381.9
Assumed	58.4		18.2		160.3		39.5
Ceded	(37.7)		(59.8)		(128.8)		(197.5)
Net premiums earned	$	279.3	$	100.0	$	771.2	$	223.9
Losses and LAE incurred:
Direct	$	168.2	$	106.8	$	504.0	$	297.1
Assumed	39.1		13.4		115.7		29.8
Ceded	(22.8)		(34.4)		(78.5)		(118.3)
Net losses and LAE incurred	$	184.5	$	85.8	$	541.2	$	208.6

Gross premiums written by state is as follows for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
	(dollars in millions)
State:
Texas	$	63.6	19.2	%	$	36.8	16.4	%	$	186.9	19.3	%	$	80.1	15.9	%
Georgia	38.6		11.6		26.3		11.7		119.1		12.3		56.0		11.1
Florida	27.6		8.3		2.9		1.3		71.6		7.4		6.7		1.3
Colorado	19.3		5.8		15.3		6.8		54.8		5.6		37.8		7.5
Pennsylvania	19.1		5.8		12.1		5.4		54.4		5.6		29.0		5.8
South Carolina	14.5		4.4		11.8		5.3		46.1		4.7		28.6		5.7
Arizona	12.1		3.6		11.0		4.9		38.7		4.0		21.7		4.3
California	15.7		4.7		2.1		0.9		29.8		3.1		5.4		1.1
Ohio	9.0		2.7		8.4		3.7		29.1		3.0		16.9		3.4
Maryland	8.4		2.5		6.7		3.0		26.3		2.7		13.0		2.6
All others states	103.8		31.4		90.8		40.6		313.8		32.3		208.7		41.3
Total	$	331.7	100.0	%	$	224.2	100.0	%	$	970.6	100.0	%	$	503.9	100.0	%

REINSURANCE

9 Months Ended

Sep. 30, 2024

Insurance [Abstract]

REINSURANCE


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)










Premiums written:
Direct	$	270.9	$	192.7	$	793.9	$	444.6
Assumed	60.8		31.5		176.7		59.3
Ceded	(27.1)		(22.3)		(118.4)		(159.4)
Net premiums written	$	304.6	$	201.9	$	852.2	$	344.5
Premiums earned:
Direct	$	258.6	$	141.6	$	739.7	$	381.9
Assumed	58.4		18.2		160.3		39.5
Ceded	(37.7)		(59.8)		(128.8)		(197.5)
Net premiums earned	$	279.3	$	100.0	$	771.2	$	223.9
Losses and LAE incurred:
Direct	$	168.2	$	106.8	$	504.0	$	297.1
Assumed	39.1		13.4		115.7		29.8
Ceded	(22.8)		(34.4)		(78.5)		(118.3)
Net losses and LAE incurred	$	184.5	$	85.8	$	541.2	$	208.6

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 WRITTEN

Gross premiums written by state is as follows for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
	(dollars in millions)
State:
Texas	$	63.6	19.2	%	$	36.8	16.4	%	$	186.9	19.3	%	$	80.1	15.9	%
Georgia	38.6		11.6		26.3		11.7		119.1		12.3		56.0		11.1
Florida	27.6		8.3		2.9		1.3		71.6		7.4		6.7		1.3
Colorado	19.3		5.8		15.3		6.8		54.8		5.6		37.8		7.5
Pennsylvania	19.1		5.8		12.1		5.4		54.4		5.6		29.0		5.8
South Carolina	14.5		4.4		11.8		5.3		46.1		4.7		28.6		5.7
Arizona	12.1		3.6		11.0		4.9		38.7		4.0		21.7		4.3
California	15.7		4.7		2.1		0.9		29.8		3.1		5.4		1.1
Ohio	9.0		2.7		8.4		3.7		29.1		3.0		16.9		3.4
Maryland	8.4		2.5		6.7		3.0		26.3		2.7		13.0		2.6
All others states	103.8		31.4		90.8		40.6		313.8		32.3		208.7		41.3
Total	$	331.7	100.0	%	$	224.2	100.0	%	$	970.6	100.0	%	$	503.9	100.0	%

SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 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 income (loss):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)
Share-based compensation expense:
Loss and loss adjustment expenses	$	0.6	$	0.2	$	1.4	$	0.5
Sales and marketing	0.2		0.1		0.5		0.3
Other insurance expense	0.2		0.1		0.5		0.4
Technology and development	0.8		0.9		2.3		2.4
General and administrative	2.5		3.4		8.0		8.8
Total share-based compensation expense	$	4.3	$	4.7	$	12.7	$	12.4

The following table provides total share-based compensation expense by type of award:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)
Share-based compensation expense:
Restricted stock unit expense	$	4.0	$	4.4	$	11.6	$	11.4
Performance-based restricted stock unit expense	0.2		0.1		0.7		0.1
Stock option expense	0.1		0.2		0.4		0.9
Total share-based compensation expense	$	4.3	$	4.7	$	12.7	$	12.4

Schedule of RSU Activity

A summary of RSU and PSU activity for the nine months ended September 30, 2024 is as follows:


	Nine Months Ended September 30, 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	1.9	$	14.47	$	20.3
Granted	0.3	48.63
Vested	(0.7)	16.67		38.0
Forfeited, expired or canceled	(0.1)	17.11
Nonvested at September 30, 2024	1.4	$	19.56	$	54.7

Schedule of Option Activity

A summary of option activity for the nine months ended September 30, 2024 is as follows:


	Nine Months Ended September 30, 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	0.1	$	33.68	4.29	$	0.5
Granted	—	—
Exercised	—	7.05			123.6
Forfeited, expired or canceled	—	82.00
Outstanding and exercisable at September 30, 2024	0.1	$	33.99	3.55	$	2.9

LONG-TERM DEBT - Narrative (Details) - Term Loan - Secured debt	1 Months Ended
	Jan. 31, 2022 USD ($)
Debt Instrument [Line Items]
Debt amount	$ 300,000,000.0
Debt instrument, term	5 years
Debt instrument, floor interest rate (in percent)	1.00%
Variable rate percentage (in percent)	9.00%
Written notice period	3 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Effects of Reinsurance [Line Items]
Total	$ 331.7	$ 224.2	$ 970.6	$ 503.9
Texas
Effects of Reinsurance [Line Items]
Total	63.6	36.8	186.9	80.1
Georgia
Effects of Reinsurance [Line Items]
Total	38.6	26.3	119.1	56.0
Florida
Effects of Reinsurance [Line Items]
Total	27.6	2.9	71.6	6.7
Colorado
Effects of Reinsurance [Line Items]
Total	19.3	15.3	54.8	37.8
Pennsylvania
Effects of Reinsurance [Line Items]
Total	19.1	12.1	54.4	29.0
South Carolina
Effects of Reinsurance [Line Items]
Total	14.5	11.8	46.1	28.6
Arizona
Effects of Reinsurance [Line Items]
Total	12.1	11.0	38.7	21.7
California
Effects of Reinsurance [Line Items]
Total	15.7	2.1	29.8	5.4
Ohio
Effects of Reinsurance [Line Items]
Total	9.0	8.4	29.1	16.9
Maryland
Effects of Reinsurance [Line Items]
Total	8.4	6.7	26.3	13.0
All others states
Effects of Reinsurance [Line Items]
Total	$ 103.8	$ 90.8	$ 313.8	$ 208.7
Geographic Concentration Risk \| Gross Written Premiums \| United States
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	100.00%	100.00%	100.00%	100.00%
Geographic Concentration Risk \| Gross Written Premiums \| Texas
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	19.20%	16.40%	19.30%	15.90%
Geographic Concentration Risk \| Gross Written Premiums \| Georgia
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	11.60%	11.70%	12.30%	11.10%
Geographic Concentration Risk \| Gross Written Premiums \| Florida
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	8.30%	1.30%	7.40%	1.30%
Geographic Concentration Risk \| Gross Written Premiums \| Colorado
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	5.80%	6.80%	5.60%	7.50%
Geographic Concentration Risk \| Gross Written Premiums \| Pennsylvania
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	5.80%	5.40%	5.60%	5.80%
Geographic Concentration Risk \| Gross Written Premiums \| South Carolina
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	4.40%	5.30%	4.70%	5.70%
Geographic Concentration Risk \| Gross Written Premiums \| Arizona
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	3.60%	4.90%	4.00%	4.30%
Geographic Concentration Risk \| Gross Written Premiums \| California
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	4.70%	0.90%	3.10%	1.10%
Geographic Concentration Risk \| Gross Written Premiums \| Ohio
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	2.70%	3.70%	3.00%	3.40%
Geographic Concentration Risk \| Gross Written Premiums \| Maryland
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	2.50%	3.00%	2.70%	2.60%
Geographic Concentration Risk \| Gross Written Premiums \| All others states
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	31.40%	40.60%	32.30%	41.30%

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 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

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Amortized cost, fixed maturities	$ 264.1	$ 168.4
Amortized cost, short term investments	8.6	0.9
Allowance for premiums receivable	7.2	4.0
Allowance for credit loss	$ 1.8	$ 1.8
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100.0	100.0
Preferred stock, shares issued (in shares)	14.1	14.1
Preferred stock, shares outstanding (in shares)	14.1	14.1
Preferred stock, liquidation preference	$ 126.5	$ 126.5
Class A Shares
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000.0	1,000.0
Common stock, shares issued (in shares)	10.6	9.5
Common stock, shares outstanding (in shares)	10.6	9.5
Class B Shares
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	269.0	269.0
Common stock, shares issued (in shares)	4.4	5.0
Common stock, shares outstanding (in shares)	4.4	5.0

RESTRUCTURING COSTS - Restructuring Costs Recorded In Consolidated Statements Of Operations And Comprehensive Income (Loss) (Details) - General and administrative - USD ($) $ in Millions	3 Months Ended		9 Months Ended		33 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	$ 0.0	$ 1.9	$ 0.1	$ 9.4	$ 29.9
Employee costs
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	0.0	1.8	0.1	5.9	23.3
Real estate exit costs
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	0.0	0.0	0.0	0.0	2.1
Other costs
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	$ 0.0	$ 0.1	$ 0.0	$ 3.5	$ 4.5

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - UNAUDITED - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues:
Net premiums earned	$ 279.3	$ 100.0	$ 771.2	$ 223.9
Net investment income	8.0	9.0	27.2	22.5
Fee income	17.1	6.2	48.4	13.2
Other income	1.3	0.1	3.0	0.6
Total revenues	305.7	115.3	849.8	260.2
Operating expenses:
Loss and loss adjustment expenses	184.5	85.8	541.2	208.6
Sales and marketing	34.0	13.1	98.6	22.8
Other insurance expense	22.4	18.3	75.1	22.2
Technology and development	12.9	11.1	38.6	32.4
General and administrative	17.5	21.0	52.7	63.2
Total operating expenses	271.3	149.3	806.2	349.2
Operating income (loss)	34.4	(34.0)	43.6	(89.0)
Interest expense	(11.6)	(11.8)	(34.8)	(34.4)
Income (loss) before income tax expense	22.8	(45.8)	8.8	(123.4)
Income tax expense	0.0	0.0	0.0	0.0
Net income (loss)	22.8	(45.8)	8.8	(123.4)
Less: Undistributed income allocated to participating securities	(1.1)	0.0	(0.5)	0.0
Net income (loss) attributable to common shareholders	21.7	(45.8)	8.3	(123.4)
Other comprehensive income (loss):
Changes in net unrealized gains (losses) on investments	5.5	(0.7)	4.6	(0.8)
Comprehensive income (loss)	$ 28.3	$ (46.5)	$ 13.4	$ (124.2)
Earnings (loss) per common share: basic (both Class A and B) (in dollars per share)	$ 1.45	$ (3.16)	$ 0.56	$ (8.57)
Earnings (loss) per common share: diluted (both Class A and B) (in dollars per share)	$ 1.35	$ (3.16)	$ 0.52	$ (8.57)
Weighted-average common shares outstanding: basic (both Class A and B) (in shares)	15.0	14.5	14.8	14.4
Weighted-average common shares outstanding: diluted (both Class A and B) (in shares)	16.9	14.5	16.8	14.4

REINSURANCE- Schedule of Comprehensive Income (Loss) For Reinsurance (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Premiums written:
Direct	$ 270.9	$ 192.7	$ 793.9	$ 444.6
Assumed	60.8	31.5	176.7	59.3
Ceded	(27.1)	(22.3)	(118.4)	(159.4)
Net premiums written	304.6	201.9	852.2	344.5
Premiums earned:
Direct	258.6	141.6	739.7	381.9
Assumed	58.4	18.2	160.3	39.5
Ceded	(37.7)	(59.8)	(128.8)	(197.5)
Net premiums earned	279.3	100.0	771.2	223.9
Losses and LAE incurred:
Direct	168.2	106.8	504.0	297.1
Assumed	39.1	13.4	115.7	29.8
Ceded	(22.8)	(34.4)	(78.5)	(118.3)
Net losses and LAE incurred	$ 184.5	$ 85.8	$ 541.2	$ 208.6

EARNINGS (LOSS) PER SHARE (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share

The following table displays the computation of basic and diluted EPS for both Class A and Class B common stock for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in millions, except per share amounts)
Numerator:
Net income (loss)	$	22.8	$	(45.8)	$	8.8	$	(123.4)
Less: Undistributed income allocated to participating securities	(1.1)		—		(0.5)		—
Net income (loss) attributable to common shareholders	21.7		(45.8)		8.3		(123.4)
Denominator:
Weighted-average common shares outstanding: basic (both Class A and B)	15.0		14.5		14.8		14.4
Effect of dilutive securities:
RSUs and PSUs	1.0		—		1.1		—
Redeemable convertible preferred stock	0.8		—		0.8		—

Stock options	0.1		—		0.1		—

Weighted-average common shares outstanding: diluted (both Class A and B)	16.9		14.5		16.8		14.4
Earnings (loss) per common share (both Class A and B):
Basic	$	1.45	$	(3.16)	$	0.56	$	(8.57)
Diluted	$	1.35	$	(3.16)	$	0.52	$	(8.57)

Schedule of Anti-Dilutive Securities


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
	(in millions)
Options to purchase common stock	—	0.1	—	0.1
Nonvested shares subject to repurchase	—	0.1	—	0.1
RSUs and PSUs	0.1	2.0	0.1	2.0
Redeemable convertible preferred stock (as converted to common stock)	—	0.8	—	0.8
Warrants to purchase common stock	7.7	7.7	7.7	7.7
Total	7.8	10.7	7.8	10.7

INVESTMENTS - Amortized Cost and Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 272.7	$ 169.3
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	3.6	0.7
Gross Unrealized Losses	(1.5)	(3.2)
Fair Value	274.8	166.8
U.S. Treasury securities and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	33.7	14.6
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	0.6	0.1
Gross Unrealized Losses	0.0	(0.1)
Fair Value	34.3	14.6
Municipal securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	23.4	24.8
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	0.3	0.1
Gross Unrealized Losses	(0.4)	(0.8)
Fair Value	23.3	24.1
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	104.2	66.3
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	1.4	0.2
Gross Unrealized Losses	(0.6)	(1.3)
Fair Value	105.0	65.2
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	20.7	12.0
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	0.3	0.1
Gross Unrealized Losses	(0.1)	(0.2)
Fair Value	20.9	11.9
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	52.0	30.4
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	0.7	0.1
Gross Unrealized Losses	(0.4)	(0.7)
Fair Value	52.3	29.8
Other debt obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	30.1	20.3
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	0.3	0.1
Gross Unrealized Losses	0.0	(0.1)
Fair Value	30.4	20.3
Total fixed maturities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	264.1	168.4
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	3.6	0.7
Gross Unrealized Losses	(1.5)	(3.2)
Fair Value	266.2	165.9
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	8.6	0.9
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	0.0	0.0
Fair Value	$ 8.6	$ 0.9

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
INCOME TAXES (Details)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	0.00%	0.00%	0.00%	0.00%
Federal income tax rate (in percent)			21.00%

COVER PAGE - shares shares in Millions	9 Months Ended
COVER PAGE - shares shares in Millions	Sep. 30, 2024	Oct. 23, 2024
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-39658
Entity Registrant Name	ROOT, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-2717903
Entity Address, Address Line One	80 E. Rich Street
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43215
City Area Code	866
Local Phone Number	980-9431
Title of 12(b) Security	Class A common stock,$0.0001 par value per share
Trading Symbol	ROOT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001788882
Current Fiscal Year End Date	--12-31
Class A Shares
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		10.7
Class B Shares
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		4.4

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS In October 2024, we entered into the Amended Term Loan that resulted in extinguishment of $237.1 million of the Term Loan, modification of $62.9 million of the Term Loan, and new borrowings of $137.1 million from new BlackRock funds. The resulting principal amount under the Amended Term Loan is $200.0 million and has a maturity date of October 29, 2030. Interest is variable and calculated quarterly between SOFR plus 5.25% and SOFR plus 6.00%, with a SOFR floor of 1.00%, based upon the debt-to-capital ratio payable quarterly, in cash. In connection with the Amended Term Loan, during the fourth quarter of 2024 we expensed approximately $5.5 million of unamortized debt discount and issuance costs related to the extinguishment; and we incurred approximately $3.0 million of debt discount and issuance costs related to the new borrowings, most of which will be capitalized and amortized over the life of the Amended Term Loan.

SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

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 June 30, 2024, all of the short-term warrants have vested and all of the respective compensation cost has been recognized. While the short-term warrants are vested and outstanding, 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 September 30, 2024.

We recognized warrant compensation expense of zero and $5.0 million for the three months ended September 30, 2024 and 2023, respectively. We recognized warrant compensation expense of $3.8 million and $13.3 million for the nine months ended September 30, 2024 and 2023, respectively. Warrant compensation expense is recorded in other insurance expense in the condensed consolidated statements of operations and comprehensive income (loss).

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, performance-based restricted stock units, or PSUs, and incentive and nonqualified stock options) to our officers, directors, employees and certain advisors. As of September 30, 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 would have otherwise been issued with respect to such awards and pay the relevant tax authorities in cash to satisfy such tax obligations or (ii) allowing 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 obligation to satisfy the employee portion of tax withholding in the event of net share settlement is reflected as a reduction of additional paid-in capital in our condensed consolidated balance sheets.

The following table displays share-based compensation expense recorded in the condensed consolidated statements of operations and comprehensive income (loss):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)
Share-based compensation expense:
Loss and loss adjustment expenses	$	0.6	$	0.2	$	1.4	$	0.5
Sales and marketing	0.2		0.1		0.5		0.3
Other insurance expense	0.2		0.1		0.5		0.4
Technology and development	0.8		0.9		2.3		2.4
General and administrative	2.5		3.4		8.0		8.8
Total share-based compensation expense	$	4.3	$	4.7	$	12.7	$	12.4

The following table provides total share-based compensation expense by type of award:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)
Share-based compensation expense:
Restricted stock unit expense	$	4.0	$	4.4	$	11.6	$	11.4
Performance-based restricted stock unit expense	0.2		0.1		0.7		0.1
Stock option expense	0.1		0.2		0.4		0.9
Total share-based compensation expense	$	4.3	$	4.7	$	12.7	$	12.4

As of September 30, 2024, there was $0.6 million, $21.6 million, and $1.2 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, and three years for RSUs and PSUs.

Restricted Stock Units and Performance-Based Restricted Stock Units

A summary of RSU and PSU activity for the nine months ended September 30, 2024 is as follows:


	Nine Months Ended September 30, 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	1.9	$	14.47	$	20.3
Granted	0.3	48.63
Vested	(0.7)	16.67		38.0
Forfeited, expired or canceled	(0.1)	17.11
Nonvested at September 30, 2024	1.4	$	19.56	$	54.7

Stock Options

A summary of option activity for the nine months ended September 30, 2024 is as follows:


	Nine Months Ended September 30, 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	0.1	$	33.68	4.29	$	0.5
Granted	—	—
Exercised	—	7.05			123.6
Forfeited, expired or canceled	—	82.00
Outstanding and exercisable at September 30, 2024	0.1	$	33.99	3.55	$	2.9

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 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.
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.
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.
Legal and Other Contingencies	Legal and Other Contingencies—From time to time, we are party to litigation and legal proceedings relating to our business operations. We consider legal actions relating to claims made in the ordinary course of seeking indemnification for a loss covered by the insurance policy in establishing loss and LAE reserves. In the ordinary course of business, we also face certain lawsuits that seek damages beyond policy limits, or extra-contractual claims. We continually evaluate potential liabilities and reserves for litigation and other matters using the guidance issued in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, Topic 450, Contingencies. Under this guidance, we may only record reserves for a loss if as of the date the financial statements are issued or available to be issued, the likelihood of occurrence is deemed probable and we can reasonably estimate the amount of the loss. When disclosing litigation, claims or other matters where a material loss is judged to be reasonably possible, we will disclose an estimated range of loss or state that an estimate cannot be made. We consider each matter using this guidance and record reserves for losses as warranted by establishing a reserve in loss and loss adjustment expense reserves for extra-contractual claims and other liabilities for class action, other non-claims related lawsuits and other matters in our condensed consolidated balance sheets. Any non-reinsurance related recoveries are recognized as other assets in our condensed consolidated balance sheets. We record amounts within loss and loss adjustment expenses for extra-contractual claims and general and administrative for class action and other non-claims related lawsuits in our condensed consolidated statements of operations and comprehensive income (loss). For other recoveries, we record these amounts in the same account as the initial expense in our condensed consolidated statements of operations and comprehensive income (loss). Further details are discussed in Note 11, “Commitments and Contingencies.”
Earnings (Loss) Per Share	Earnings (Loss) Per Share—Earnings (loss) per share, or EPS, results are a key indicator of the overall performance relative to each share of our outstanding common stock. Basic earnings per share is calculated using the two-class method. Undistributed earnings are allocated to participating securities based on the extent to which each class may share in earnings as if all the earnings for the period have been distributed. Basic earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Common shares, when contingencies, such as vesting requirements, exist and have not been satisfied, are excluded from basic earnings per share. Our Class A and Class B common stock are entitled to the same liquidation and dividend rights and therefore earnings are allocated equally. Our redeemable convertible preferred stock and nonvested shares subject to repurchase are considered to be participating securities because they participate in dividends that are non-forfeitable and distributions with common stock. Diluted EPS for both Class A and Class B common stock includes all the components of basic EPS, plus the dilutive effect of common stock equivalents, but excludes those common stock equivalents from the calculation of diluted EPS when the effect of inclusion, assessed individually, would be anti-dilutive. The dilutive effect of stock options, nonvested shares subject to repurchase, restricted stock units, or RSUs, performance-based restricted stock units, or PSUs, and warrants are calculated using the treasury stock method. The dilutive effect of redeemable convertible preferred stock is calculated using the if-converted method. For periods in which we operate at a loss, the conversion of common stock equivalents would increase the denominator of the diluted earnings per share calculation and create a lower loss per share. Therefore, these common stock equivalents are considered antidilutive and diluted EPS is equal to basic EPS. Participating securities do not participate in losses and therefore losses are not allocated in the two-class method. Further details are discussed in Note 12, “Earnings (Loss) Per Share.”
Upcoming Accounting Pronouncements	Upcoming Accounting Pronouncements—In November 2023, the 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, a description of its composition and the title and position of the Chief Operating Decision Maker, or CODM, with an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding to allocate resources. 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. This 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 will adopt this ASU in the fourth quarter of 2024 on a retrospective basis. We have currently identified the Chief Executive Officer as our CODM and net income (loss), as reported on the condensed consolidated statement of operations and comprehensive income (loss), as our reported measure of segment profit or loss. We are currently evaluating the other impacts 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. This ASU only requires additional disclosure, will not have an impact on our results of operations or financial condition, and is not expected to have a material impact on the Notes to Condensed Consolidated Financial Statements.

SHARE-BASED COMPENSATION - Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 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)	7.05
Forfeited, expired and canceled (in dollars per share)	82.00
Outstanding, ending balance (in dollars per share)	$ 33.99	$ 33.68
Outstanding, weighted-average remaining contractual term (in years)	3 years 6 months 18 days	4 years 3 months 14 days
Outstanding, aggregate intrinsic value	$ 2.9	$ 0.5
Exercised, aggregate intrinsic value	$ 123.6

NATURE OF BUSINESS	9 Months Ended
NATURE OF BUSINESS	Sep. 30, 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.

LONG-TERM DEBT - Schedule of Long Term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Accrued interest payable	$ 7.6	$ 7.9
Unamortized discount and debt issuance costs and warrants	(6.7)	(8.9)
Total	300.9	299.0
Secured debt \| Term Loan
Debt Instrument [Line Items]
Term Loan	$ 300.0	$ 300.0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount of unamortized debt discount (premium) and debt issuance costs.

+ References + Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

EARNINGS (LOSS) PER SHARE - Schedule of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net income (loss)	$ 22.8	$ (45.8)	$ 8.8	$ (123.4)
Less: Undistributed income allocated to participating securities	(1.1)	0.0	(0.5)	0.0
Net income (loss) attributable to common shareholders	$ 21.7	$ (45.8)	$ 8.3	$ (123.4)
Denominator:
Weighted-average common shares outstanding: basic (both Class A and B) (in shares)	15.0	14.5	14.8	14.4
Effect of dilutive securities:
Redeemable convertible preferred stock (in shares)	0.8	0.0	0.8	0.0
Weighted-average common shares outstanding: diluted (both Class A and B) (in shares)	16.9	14.5	16.8	14.4
Earnings (loss) per common share (both Class A and B):
Basic (in usd per share)	$ 1.45	$ (3.16)	$ 0.56	$ (8.57)
Diluted (in usd per share)	$ 1.35	$ (3.16)	$ 0.52	$ (8.57)
RSUs and PSUs
Effect of dilutive securities:
RSUs, PSUs and Stock options (in shares)	1.0	0.0	1.1	0.0
Stock options
Effect of dilutive securities:
RSUs, PSUs and Stock options (in shares)	0.1	0.0	0.1	0.0

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Schedule of Reserve Balance (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
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	$ 342.1	$ 214.9	342.1	214.9	$ 240.4	$ 211.0
Net incurred loss and LAE related to:
Current year			549.1	209.2
Prior years			(7.9)	(0.6)
Total incurred	184.5	85.8	541.2	208.6
Net paid loss and LAE related to:
Current year			293.2	87.4
Prior years			146.3	117.3
Total paid			439.5	204.7
Net loss and LAE reserves, September 30	342.1	214.9	342.1	214.9
Plus reinsurance recoverable on unpaid losses	50.3	41.6	50.3	41.6
Gross loss and LAE reserves, September 30	$ 392.4	$ 256.5	$ 392.4	$ 256.5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Policy Acquisition Costs (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, January 1	$ 18.0	$ 6.7
Acquisition costs deferred	32.3	28.5
Amortization expense	(23.8)	(20.4)
Balance, September 30	$ 26.5	$ 14.8
Number of reportable segments \| segment	1

- Definition

Amount of amortization expense (reversal of expense) for deferred policy acquisition costs.

+ References + Details

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN (Tables)

9 Months Ended

Sep. 30, 2024

Insurance [Abstract]

Schedule of Direct and Assumed Premiums Written


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)










Premiums written:
Direct	$	270.9	$	192.7	$	793.9	$	444.6
Assumed	60.8		31.5		176.7		59.3
Ceded	(27.1)		(22.3)		(118.4)		(159.4)
Net premiums written	$	304.6	$	201.9	$	852.2	$	344.5
Premiums earned:
Direct	$	258.6	$	141.6	$	739.7	$	381.9
Assumed	58.4		18.2		160.3		39.5
Ceded	(37.7)		(59.8)		(128.8)		(197.5)
Net premiums earned	$	279.3	$	100.0	$	771.2	$	223.9
Losses and LAE incurred:
Direct	$	168.2	$	106.8	$	504.0	$	297.1
Assumed	39.1		13.4		115.7		29.8
Ceded	(22.8)		(34.4)		(78.5)		(118.3)
Net losses and LAE incurred	$	184.5	$	85.8	$	541.2	$	208.6

Gross premiums written by state is as follows for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
	(dollars in millions)
State:
Texas	$	63.6	19.2	%	$	36.8	16.4	%	$	186.9	19.3	%	$	80.1	15.9	%
Georgia	38.6		11.6		26.3		11.7		119.1		12.3		56.0		11.1
Florida	27.6		8.3		2.9		1.3		71.6		7.4		6.7		1.3
Colorado	19.3		5.8		15.3		6.8		54.8		5.6		37.8		7.5
Pennsylvania	19.1		5.8		12.1		5.4		54.4		5.6		29.0		5.8
South Carolina	14.5		4.4		11.8		5.3		46.1		4.7		28.6		5.7
Arizona	12.1		3.6		11.0		4.9		38.7		4.0		21.7		4.3
California	15.7		4.7		2.1		0.9		29.8		3.1		5.4		1.1
Ohio	9.0		2.7		8.4		3.7		29.1		3.0		16.9		3.4
Maryland	8.4		2.5		6.7		3.0		26.3		2.7		13.0		2.6
All others states	103.8		31.4		90.8		40.6		313.8		32.3		208.7		41.3
Total	$	331.7	100.0	%	$	224.2	100.0	%	$	970.6	100.0	%	$	503.9	100.0	%

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost: $264.1 and $168.4 at September 30, 2024 and December 31, 2023, respectively)	$ 266.2	$ 165.9
Short-term investments (amortized cost: $8.6 and $0.9 at September 30, 2024 and December 31, 2023, respectively)	8.6	0.9
Other investments	4.4	4.4
Total investments	279.2	171.2
Cash and cash equivalents	674.8	678.7
Restricted cash	1.0	1.0
Premiums receivable, net of allowance of $7.2 and $4.0 at September 30, 2024 and December 31, 2023, respectively	308.7	247.1
Reinsurance recoverable and receivable, net of allowance of $1.8 at September 30, 2024 and December 31, 2023	160.6	125.3
Prepaid reinsurance premiums	37.8	48.2
Other assets	99.8	76.2
Total assets	1,561.9	1,347.7
Liabilities:
Loss and loss adjustment expense reserves	392.4	284.2
Unearned premiums	354.4	283.7
Long-term debt and warrants	300.9	299.0
Reinsurance premiums payable	46.2	54.4
Accounts payable and accrued expenses	64.0	65.6
Other liabilities	110.1	83.1
Total liabilities	1,268.0	1,070.0
Commitments and Contingencies (Note 11)
Redeemable convertible preferred stock, $0.0001 par value, 100.0 shares authorized, 14.1 shares issued and outstanding at September 30, 2024 and December 31, 2023 (redemption value of $126.5)	112.0	112.0
Stockholders’ equity:
Additional paid-in capital	1,883.8	1,883.4
Accumulated other comprehensive income (loss)	2.1	(2.5)
Accumulated loss	(1,704.0)	(1,715.2)
Total stockholders’ equity	181.9	165.7
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	1,561.9	1,347.7
Class A Shares
Stockholders’ equity:
Common stock, value	0.0	0.0
Class B Shares
Stockholders’ equity:
Common stock, value	$ 0.0	$ 0.0

FAIR VALUE OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Assets
AFS securities	$ 274.8	$ 166.8
Cash equivalents	416.6	439.6
Total assets at fair value	691.4	606.4
U.S. Treasury securities and agencies
Assets
AFS securities	34.3	14.6
Municipal securities
Assets
AFS securities	23.3	24.1
Corporate debt securities
Assets
AFS securities	105.0	65.2
Residential mortgage-backed securities
Assets
AFS securities	20.9	11.9
Commercial mortgage-backed securities
Assets
AFS securities	52.3	29.8
Other debt obligations
Assets
AFS securities	30.4	20.3
Total fixed maturities
Assets
AFS securities	266.2	165.9
Short-term investments
Assets
AFS securities	8.6	0.9
Level 1
Assets
Cash equivalents	416.6	439.6
Total assets at fair value	458.6	453.8
Level 1 \| U.S. Treasury securities and agencies
Assets
AFS securities	33.6	13.3
Level 1 \| Municipal securities
Assets
AFS securities	0.0	0.0
Level 1 \| Corporate debt securities
Assets
AFS securities	0.0	0.0
Level 1 \| Residential mortgage-backed securities
Assets
AFS securities	0.0	0.0
Level 1 \| Commercial mortgage-backed securities
Assets
AFS securities	0.0	0.0
Level 1 \| Other debt obligations
Assets
AFS securities	0.0	0.0
Level 1 \| Total fixed maturities
Assets
AFS securities	33.6	13.3
Level 1 \| Short-term investments
Assets
AFS securities	8.4	0.9
Level 2
Assets
Cash equivalents	0.0	0.0
Total assets at fair value	232.8	152.6
Level 2 \| U.S. Treasury securities and agencies
Assets
AFS securities	0.7	1.3
Level 2 \| Municipal securities
Assets
AFS securities	23.3	24.1
Level 2 \| Corporate debt securities
Assets
AFS securities	105.0	65.2
Level 2 \| Residential mortgage-backed securities
Assets
AFS securities	20.9	11.9
Level 2 \| Commercial mortgage-backed securities
Assets
AFS securities	52.3	29.8
Level 2 \| Other debt obligations
Assets
AFS securities	30.4	20.3
Level 2 \| Total fixed maturities
Assets
AFS securities	232.6	152.6
Level 2 \| Short-term investments
Assets
AFS securities	0.2	0.0
Level 3
Assets
Cash equivalents	0.0	0.0
Total assets at fair value	0.0	0.0
Level 3 \| U.S. Treasury securities and agencies
Assets
AFS securities	0.0	0.0
Level 3 \| Municipal securities
Assets
AFS securities	0.0	0.0
Level 3 \| Corporate debt securities
Assets
AFS securities	0.0	0.0
Level 3 \| Residential mortgage-backed securities
Assets
AFS securities	0.0	0.0
Level 3 \| Commercial mortgage-backed securities
Assets
AFS securities	0.0	0.0
Level 3 \| Other debt obligations
Assets
AFS securities	0.0	0.0
Level 3 \| Total fixed maturities
Assets
AFS securities	0.0	0.0
Level 3 \| Short-term investments
Assets
AFS securities	$ 0.0	$ 0.0

INVESTMENTS - Unrealized Losses (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	$ 26.2	$ 36.1
Less than 12 months, unrealized loss	0.0	(0.1)
12 months or more, fair value	49.7	72.3
12 months or more, unrealized loss	(1.5)	(3.1)
Total, fair value	75.9	108.4
Total, unrealized loss	(1.5)	(3.2)
U.S. Treasury securities and agencies
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	2.2	1.7
Less than 12 months, unrealized loss	0.0	0.0
12 months or more, fair value	2.5	2.4
12 months or more, unrealized loss	0.0	(0.1)
Total, fair value	4.7	4.1
Total, unrealized loss	0.0	(0.1)
Municipal securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	0.1	3.1
Less than 12 months, unrealized loss	0.0	0.0
12 months or more, fair value	11.2	15.1
12 months or more, unrealized loss	(0.4)	(0.8)
Total, fair value	11.3	18.2
Total, unrealized loss	(0.4)	(0.8)
Corporate debt securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	14.2	13.4
Less than 12 months, unrealized loss	0.0	0.0
12 months or more, fair value	23.2	35.1
12 months or more, unrealized loss	(0.6)	(1.3)
Total, fair value	37.4	48.5
Total, unrealized loss	(0.6)	(1.3)
Residential mortgage-backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	1.6	4.1
Less than 12 months, unrealized loss	0.0	0.0
12 months or more, fair value	1.7	1.9
12 months or more, unrealized loss	(0.1)	(0.2)
Total, fair value	3.3	6.0
Total, unrealized loss	(0.1)	(0.2)
Commercial mortgage-backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	6.2	9.1
Less than 12 months, unrealized loss	0.0	(0.1)
12 months or more, fair value	8.8	13.4
12 months or more, unrealized loss	(0.4)	(0.6)
Total, fair value	15.0	22.5
Total, unrealized loss	(0.4)	(0.7)
Other debt obligations
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	0.9	4.4
Less than 12 months, unrealized loss	0.0	0.0
12 months or more, fair value	2.3	4.4
12 months or more, unrealized loss	0.0	(0.1)
Total, fair value	3.2	8.8
Total, unrealized loss	0.0	(0.1)
Total fixed maturities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	25.2	35.8
Less than 12 months, unrealized loss	0.0	(0.1)
12 months or more, fair value	49.7	72.3
12 months or more, unrealized loss	(1.5)	(3.1)
Total, fair value	74.9	108.1
Total, unrealized loss	(1.5)	(3.2)
Short-term investments
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	1.0	0.3
Less than 12 months, unrealized loss	0.0	0.0
12 months or more, fair value	0.0	0.0
12 months or more, unrealized loss	0.0	0.0
Total, fair value	1.0	0.3
Total, unrealized loss	$ 0.0	$ 0.0

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Insurance [Abstract]
Incurred losses and LAE attributable to prior accident years	$ (7.9)	$ (0.6)

LONG-TERM DEBT

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

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 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 Term Loan can be repaid at anytime through the maturity date without a prepayment premium, provided that we give at least three business days’ written notice.

The following summarizes the carrying value of long-term debt and warrants as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
	(dollars in millions)





Term Loan	$	300.0	$	300.0


Accrued interest payable	7.6		7.9
Unamortized discount and debt issuance costs and warrants	(6.7)		(8.9)
Total	$	300.9	$	299.0

In September 2024, we entered into the first amendment to the Term Loan, which among other things, provides greater flexibility for investments in future insurance subsidiaries.

In October 2024, we entered into the second amendment to the Term Loan, or Amended Term Loan, which extinguished and modified portions of the Term Loan, including the interest rate, while also providing for new borrowings. For additional information refer to Note 14, “Subsequent Events.”

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/470/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

+ Details

RESTRUCTURING COSTS - Restructuring Costs Recorded In Consolidated Balance Sheets (Details) - Employee costs $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)
Restructuring activity:
Restructuring liability, beginning balance	$ 8.3
Expense incurred	0.1
Payments	(8.4)
Restructuring liability, ending balance	$ 0.0

EARNINGS (LOSS) PER SHARE - Schedule of Anti-Dilutive Securities (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	7.8	10.7	7.8	10.7
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.0	0.1	0.0	0.1
Nonvested shares subject to repurchase
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.0	0.1	0.0	0.1
RSUs and PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.1	2.0	0.1	2.0
Redeemable convertible preferred stock (as converted to common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.0	0.8	0.0	0.8
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	7.7	7.7	7.7	7.7

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2024 and December 31, 2023:


	September 30, 2024
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities and agencies	$	33.6	$	0.7	$	—	$	34.3
Municipal securities	—		23.3		—		23.3
Corporate debt securities	—		105.0		—		105.0
Residential mortgage-backed securities	—		20.9		—		20.9
Commercial mortgage-backed securities	—		52.3		—		52.3
Other debt obligations	—		30.4		—		30.4
Total fixed maturities	33.6		232.6		—		266.2
Short-term investments	8.4		0.2		—		8.6
Cash equivalents	416.6		—		—		416.6
Total assets at fair value	$	458.6	$	232.8	$	—	$	691.4




	December 31, 2023
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities and agencies	$	13.3	$	1.3	$	—	$	14.6
Municipal securities	—		24.1		—		24.1
Corporate debt securities	—		65.2		—		65.2
Residential mortgage-backed securities	—		11.9		—		11.9
Commercial mortgage-backed securities	—		29.8		—		29.8
Other debt obligations	—		20.3		—		20.3
Total fixed maturities	13.3		152.6		—		165.9
Short-term investments	0.9		—		—		0.9
Cash equivalents	439.6		—		—		439.6
Total assets at fair value	$	453.8	$	152.6	$	—	$	606.4

Schedule of Carrying Amounts and Fair Values of Financial Instruments

As of September 30, 2024 and December 31, 2023, the carrying amounts and fair values of these financial instruments were as follows:


	Carrying Amount as of September 30, 2024		Estimated Fair Value as of September 30, 2024		Carrying Amount as of December 31, 2023		Estimated Fair Value as of December 31, 2023
	(dollars in millions)
Long-term debt	$	300.9	$	307.9	$	299.0	$	305.2

INVESTMENTS - Other Investments (Details) - USD ($)	3 Months Ended		9 Months Ended
INVESTMENTS - Other Investments (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Other investments	$ 4,400,000		$ 4,400,000		$ 4,400,000
Realized gains (losses) on investments	$ 0	$ 0	$ 0	$ 0

INVESTMENTS - Contractual Maturity (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 37.0
Due after one year through five years	174.2
Due five years through 10 years	30.2
Due after 10 years	31.3
Amortized Cost	272.7	$ 169.3
Fair Value
Due in one year or less	36.9
Due after one year through five years	175.8
Due five years through 10 years	30.8
Due after 10 years	31.3
Total	$ 274.8	$ 166.8

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

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.

Legal and Other Contingencies—From time to time, we are party to litigation and legal proceedings relating to our business operations. We consider legal actions relating to claims made in the ordinary course of seeking indemnification for a loss covered by the insurance policy in establishing loss and LAE reserves. In the ordinary course of business, we also face certain lawsuits that seek damages beyond policy limits, or extra-contractual claims.

We continually evaluate potential liabilities and reserves for litigation and other matters using the guidance issued in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, Topic 450, Contingencies. Under this guidance, we may only record reserves for a loss if as of the date the financial statements are issued or available to be issued, the likelihood of occurrence is deemed probable and we can reasonably estimate the amount of the loss. When disclosing litigation, claims or other matters where a material loss is judged to be reasonably possible, we will disclose an estimated range of loss or state that an estimate cannot be made. We consider each matter using this guidance and record reserves for losses as warranted by establishing a reserve in loss and loss adjustment expense reserves for extra-contractual claims and other liabilities for class action, other non-claims related lawsuits and other matters in our condensed consolidated balance sheets. Any non-reinsurance related recoveries are recognized as other assets in our condensed consolidated balance sheets. We record amounts within loss and loss adjustment expenses for extra-contractual claims and general and administrative for class action and other non-claims related lawsuits in our condensed consolidated statements of operations and comprehensive income (loss). For other recoveries, we record these amounts in the same account as the initial expense in our condensed consolidated statements of operations and comprehensive income (loss). Further details are discussed in Note 11, “Commitments and Contingencies.”

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:


	As of
	September 30,		December 31,
	2024		2023
	(dollars in millions)
Cash and cash equivalents	$	674.8	$	678.7
Restricted cash	1.0		1.0
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$	675.8	$	679.7

Deferred Policy Acquisition Costs—The following table 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 September 30, 2024 and 2023:


	2024		2023
	(dollars in millions)
Balance, January 1	$	18.0	$	6.7
Acquisition costs deferred	32.3		28.5
Amortization expense	(23.8)		(20.4)
Balance, September 30	$	26.5	$	14.8

Earnings (Loss) Per Share—Earnings (loss) per share, or EPS, results are a key indicator of the overall performance relative to each share of our outstanding common stock. Basic earnings per share is calculated using the two-class method. Undistributed earnings are allocated to participating securities based on the extent to which each class may share in earnings as if all the earnings for the period have been distributed. Basic earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Common shares, when contingencies, such as vesting requirements, exist and have not been satisfied, are excluded from basic earnings per share.

Our Class A and Class B common stock are entitled to the same liquidation and dividend rights and therefore earnings are allocated equally. Our redeemable convertible preferred stock and nonvested shares subject to repurchase are considered to be participating securities because they participate in dividends that are non-forfeitable and distributions with common stock.

Diluted EPS for both Class A and Class B common stock includes all the components of basic EPS, plus the dilutive effect of common stock equivalents, but excludes those common stock equivalents from the calculation of diluted EPS when the effect of inclusion, assessed individually, would be anti-dilutive. The dilutive effect of stock options, nonvested shares subject to repurchase, restricted stock units, or RSUs, performance-based restricted stock units, or PSUs, and warrants are calculated using the treasury stock method. The dilutive effect of redeemable convertible preferred stock is calculated using the if-converted method.

For periods in which we operate at a loss, the conversion of common stock equivalents would increase the denominator of the diluted earnings per share calculation and create a lower loss per share. Therefore, these common stock equivalents are considered antidilutive and diluted EPS is equal to basic EPS. Participating securities do not participate in losses and therefore losses are not allocated in the two-class method. Further details are discussed in Note 12, “Earnings (Loss) Per Share.”

Upcoming Accounting Pronouncements—In November 2023, the 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, a description of its composition and the title and position of the Chief Operating Decision Maker, or CODM, with an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding to allocate resources. 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.

This 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 will adopt this ASU in the fourth quarter of 2024 on a retrospective basis. We have currently identified the Chief Executive Officer as our CODM and net income (loss), as reported on the condensed consolidated statement of operations and comprehensive income (loss), as our reported measure of segment profit or loss. We are currently evaluating the other impacts 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. This ASU only requires additional disclosure, will not have an impact on our results of operations or financial condition, and is not expected to have a material impact on the Notes to Condensed Consolidated Financial Statements.

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2024 and December 31, 2023 are as follows:


	September 30, 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	$	33.7	$	—	$	0.6	$	—	$	34.3
Municipal securities	23.4		—		0.3		(0.4)		23.3
Corporate debt securities	104.2		—		1.4		(0.6)		105.0
Residential mortgage-backed securities	20.7		—		0.3		(0.1)		20.9
Commercial mortgage-backed securities	52.0		—		0.7		(0.4)		52.3
Other debt obligations	30.1		—		0.3		—		30.4
Total fixed maturities	264.1		—		3.6		(1.5)		266.2
Short-term investments	8.6		—		—		—		8.6
Total	$	272.7	$	—	$	3.6	$	(1.5)	$	274.8

	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	$	14.6	$	—	$	0.1	$	(0.1)	$	14.6
Municipal securities	24.8		—		0.1		(0.8)		24.1
Corporate debt securities	66.3		—		0.2		(1.3)		65.2
Residential mortgage-backed securities	12.0		—		0.1		(0.2)		11.9
Commercial mortgage-backed securities	30.4		—		0.1		(0.7)		29.8
Other debt obligations	20.3		—		0.1		(0.1)		20.3
Total fixed maturities	168.4		—		0.7		(3.2)		165.9
Short-term investments	0.9		—		—		—		0.9
Total	$	169.3	$	—	$	0.7	$	(3.2)	$	166.8

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 September 30, 2024:


	September 30, 2024
	Amortized Cost		Fair Value
	(dollars in millions)
Due in one year or less	$	37.0	$	36.9
Due after one year through five years	174.2		175.8
Due five years through 10 years	30.2		30.8
Due after 10 years	31.3		31.3
Total	$	272.7	$	274.8

Schedule of Unrealized Losses


	September 30, 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	$	2.2	$	—	$	2.5	$	—	$	4.7	$	—
Municipal securities	0.1		—		11.2		(0.4)		11.3		(0.4)
Corporate debt securities	14.2		—		23.2		(0.6)		37.4		(0.6)
Residential mortgage-backed securities	1.6		—		1.7		(0.1)		3.3		(0.1)
Commercial mortgage-backed securities	6.2		—		8.8		(0.4)		15.0		(0.4)
Other debt obligations	0.9		—		2.3		—		3.2		—
Total fixed maturities	25.2		—		49.7		(1.5)		74.9		(1.5)
Short-term investments	1.0		—		—		—		1.0		—
Total	$	26.2	$	—	$	49.7	$	(1.5)	$	75.9	$	(1.5)

	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	$	1.7	$	—	$	2.4	$	(0.1)	$	4.1	$	(0.1)
Municipal securities	3.1		—		15.1		(0.8)		18.2		(0.8)
Corporate debt securities	13.4		—		35.1		(1.3)		48.5		(1.3)
Residential mortgage-backed securities	4.1		—		1.9		(0.2)		6.0		(0.2)
Commercial mortgage-backed securities	9.1		(0.1)		13.4		(0.6)		22.5		(0.7)
Other debt obligations	4.4		—		4.4		(0.1)		8.8		(0.1)
Total fixed maturities	35.8		(0.1)		72.3		(3.1)		108.1		(3.2)
Short-term investments	0.3		—		—		—		0.3		—
Total	$	36.1	$	(0.1)	$	72.3	$	(3.1)	$	108.4	$	(3.2)

Schedule of Net Investment Income

The following table sets forth the components of net investment income for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)
Interest on bonds	$	2.6	$	1.4	$	6.6	$	3.3
Interest on deposits and cash equivalents	8.7		7.9		25.0		19.8

Total	11.3		9.3		31.6		23.1
Investment expense	(3.3)		(0.3)		(4.4)		(0.6)
Net investment income	$	8.0	$	9.0	$	27.2	$	22.5

Schedule of Credit Ratings

The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at September 30, 2024 and December 31, 2023:


	September 30, 2024
	Amortized Cost		Fair Value		% of Total Fair Value
	(dollars in millions)
S&P Global rating or equivalent
AAA	$	69.3	$	69.7	25.4	%
AA+, AA, AA-, A-1	114.5		115.7		42.1
A+, A, A-	69.5		69.9		25.4
BBB+, BBB, BBB-	19.4		19.5		7.1
Total	$	272.7	$	274.8	100.0	%


	December 31, 2023
	Amortized Cost		Fair Value		% of Total Fair Value
	(dollars in millions)
S&P Global rating or equivalent
AAA	$	53.0	$	52.1	31.2	%
AA+, AA, AA-, A-1	59.4		58.8		35.3
A+, A, A-	42.1		41.2		24.7
BBB+, BBB, BBB-	14.8		14.7		8.8
Total	$	169.3	$	166.8	100.0	%

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (a)
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN

9 Months Ended

Sep. 30, 2024

Insurance [Abstract]

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN

REINSURANCE


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(dollars in millions)










Premiums written:
Direct	$	270.9	$	192.7	$	793.9	$	444.6
Assumed	60.8		31.5		176.7		59.3
Ceded	(27.1)		(22.3)		(118.4)		(159.4)
Net premiums written	$	304.6	$	201.9	$	852.2	$	344.5
Premiums earned:
Direct	$	258.6	$	141.6	$	739.7	$	381.9
Assumed	58.4		18.2		160.3		39.5
Ceded	(37.7)		(59.8)		(128.8)		(197.5)
Net premiums earned	$	279.3	$	100.0	$	771.2	$	223.9
Losses and LAE incurred:
Direct	$	168.2	$	106.8	$	504.0	$	297.1
Assumed	39.1		13.4		115.7		29.8
Ceded	(22.8)		(34.4)		(78.5)		(118.3)
Net losses and LAE incurred	$	184.5	$	85.8	$	541.2	$	208.6

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN

Gross premiums written by state is as follows for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
	(dollars in millions)
State:
Texas	$	63.6	19.2	%	$	36.8	16.4	%	$	186.9	19.3	%	$	80.1	15.9	%
Georgia	38.6		11.6		26.3		11.7		119.1		12.3		56.0		11.1
Florida	27.6		8.3		2.9		1.3		71.6		7.4		6.7		1.3
Colorado	19.3		5.8		15.3		6.8		54.8		5.6		37.8		7.5
Pennsylvania	19.1		5.8		12.1		5.4		54.4		5.6		29.0		5.8
South Carolina	14.5		4.4		11.8		5.3		46.1		4.7		28.6		5.7
Arizona	12.1		3.6		11.0		4.9		38.7		4.0		21.7		4.3
California	15.7		4.7		2.1		0.9		29.8		3.1		5.4		1.1
Ohio	9.0		2.7		8.4		3.7		29.1		3.0		16.9		3.4
Maryland	8.4		2.5		6.7		3.0		26.3		2.7		13.0		2.6
All others states	103.8		31.4		90.8		40.6		313.8		32.3		208.7		41.3
Total	$	331.7	100.0	%	$	224.2	100.0	%	$	970.6	100.0	%	$	503.9	100.0	%

LONG-TERM DEBT (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Long Term Debt

The following summarizes the carrying value of long-term debt and warrants as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
	(dollars in millions)





Term Loan	$	300.0	$	300.0


Accrued interest payable	7.6		7.9
Unamortized discount and debt issuance costs and warrants	(6.7)		(8.9)
Total	$	300.9	$	299.0

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.5-02(22))
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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - UNAUDITED - USD ($) shares in Millions, $ in Millions	Total	Class A Shares	Class B Shares	Class A and Class B Convertible Common Stock	Class A and Class B Convertible Common Stock Class A Shares	Class A and Class B Convertible Common Stock Class B Shares	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Loss
Beginning balance (in shares) at Dec. 31, 2022	14.1
Beginning balance at Dec. 31, 2022	$ 112.0
Ending balance (in shares) at Sep. 30, 2023	14.1
Ending balance at Sep. 30, 2023	$ 112.0
Beginning balance (in shares) at Dec. 31, 2022					9.2	5.0
Beginning balance at Dec. 31, 2022	277.1			$ 0.0			$ 1,850.7	$ (5.8)	$ (1,567.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(123.4)								(123.4)
Other comprehensive income (loss)	(0.8)							(0.8)
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)					0.3
Common stock—share-based compensation expense	12.4						12.4
Warrant compensation expense	13.3						13.3
Warrant issuance costs	(1.5)						(1.5)
Ending balance (in shares) at Sep. 30, 2023					9.5	5.0
Ending balance at Sep. 30, 2023	$ 177.1			0.0			1,874.9	(6.6)	(1,691.2)
Beginning balance (in shares) at Jun. 30, 2023	14.1
Beginning balance at Jun. 30, 2023	$ 112.0
Ending balance (in shares) at Sep. 30, 2023	14.1
Ending balance at Sep. 30, 2023	$ 112.0
Beginning balance (in shares) at Jun. 30, 2023					9.4	5.0
Beginning balance at Jun. 30, 2023	214.4			0.0			1,865.7	(5.9)	(1,645.4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(45.8)								(45.8)
Other comprehensive income (loss)	(0.7)							(0.7)
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)					0.1
Common stock—share-based compensation expense	4.7						4.7
Warrant compensation expense	5.0						5.0
Warrant issuance costs	(0.5)						(0.5)
Ending balance (in shares) at Sep. 30, 2023					9.5	5.0
Ending balance at Sep. 30, 2023	$ 177.1			0.0			1,874.9	(6.6)	(1,691.2)
Beginning balance (in shares) at Dec. 31, 2023	14.1
Beginning balance at Dec. 31, 2023	$ 112.0
Ending balance (in shares) at Sep. 30, 2024	14.1
Ending balance at Sep. 30, 2024	$ 112.0
Beginning balance (in shares) at Dec. 31, 2023		9.5	5.0		9.5	5.0
Beginning balance at Dec. 31, 2023	165.7			0.0			1,883.4	(2.5)	(1,715.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	8.8								8.8
Other comprehensive income (loss)	$ 4.6							4.6
Conversion of Class B to Class A (in shares)					0.6	(0.6)
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)	0.0				0.5
Common stock—restricted stock units vesting, net of shares withheld for employee taxes	$ (13.3)						(15.7)		2.4
Common stock—share-based compensation expense	12.7						12.7
Warrant compensation expense	3.8						3.8
Warrant issuance costs	(0.4)						(0.4)
Ending balance (in shares) at Sep. 30, 2024		10.6	4.4		10.6	4.4
Ending balance at Sep. 30, 2024	$ 181.9			0.0			1,883.8	2.1	(1,704.0)
Beginning balance (in shares) at Jun. 30, 2024	14.1
Beginning balance at Jun. 30, 2024	$ 112.0
Ending balance (in shares) at Sep. 30, 2024	14.1
Ending balance at Sep. 30, 2024	$ 112.0
Beginning balance (in shares) at Jun. 30, 2024					10.6	4.4
Beginning balance at Jun. 30, 2024	151.3			0.0			1,881.5	(3.4)	(1,726.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	22.8								22.8
Other comprehensive income (loss)	5.5							5.5
Common stock—restricted stock units vesting, net of shares withheld for employee taxes	(2.0)						(2.0)
Common stock—share-based compensation expense	4.3						4.3
Ending balance (in shares) at Sep. 30, 2024		10.6	4.4		10.6	4.4
Ending balance at Sep. 30, 2024	$ 181.9			$ 0.0			$ 1,883.8	$ 2.1	$ (1,704.0)

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables provide information about our financial assets measured and reported at fair value as of September 30, 2024 and December 31, 2023:


	September 30, 2024
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities and agencies	$	33.6	$	0.7	$	—	$	34.3
Municipal securities	—		23.3		—		23.3
Corporate debt securities	—		105.0		—		105.0
Residential mortgage-backed securities	—		20.9		—		20.9
Commercial mortgage-backed securities	—		52.3		—		52.3
Other debt obligations	—		30.4		—		30.4
Total fixed maturities	33.6		232.6		—		266.2
Short-term investments	8.4		0.2		—		8.6
Cash equivalents	416.6		—		—		416.6
Total assets at fair value	$	458.6	$	232.8	$	—	$	691.4




	December 31, 2023
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities and agencies	$	13.3	$	1.3	$	—	$	14.6
Municipal securities	—		24.1		—		24.1
Corporate debt securities	—		65.2		—		65.2
Residential mortgage-backed securities	—		11.9		—		11.9
Commercial mortgage-backed securities	—		29.8		—		29.8
Other debt obligations	—		20.3		—		20.3
Total fixed maturities	13.3		152.6		—		165.9
Short-term investments	0.9		—		—		0.9
Cash equivalents	439.6		—		—		439.6
Total assets at fair value	$	453.8	$	152.6	$	—	$	606.4

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 September 30, 2024 and December 31, 2023, the carrying amounts and fair values of these financial instruments were as follows:


	Carrying Amount as of September 30, 2024		Estimated Fair Value as of September 30, 2024		Carrying Amount as of December 31, 2023		Estimated Fair Value as of December 31, 2023
	(dollars in millions)
Long-term debt	$	300.9	$	307.9	$	299.0	$	305.2

The carrying amounts of other short-term financial instruments approximates their fair value due to their short-term nature.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 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 if concluded adversely could reasonably be expected to have a material adverse effect on our financial condition or results of operations and cash flow. 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. The plaintiffs filed a petition for a writ of certiorari on August 28, 2024 with the United States Supreme Court, which defendants have opposed. 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.

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

9 Months Ended

Sep. 30, 2024

Insurance [Abstract]

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:


	Nine Months Ended September 30,
	2024		2023
	(dollars in millions)
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	240.4		211.0
Net incurred loss and LAE related to:
Current year	549.1		209.2
Prior years	(7.9)		(0.6)
Total incurred	541.2		208.6
Net paid loss and LAE related to:
Current year	293.2		87.4
Prior years	146.3		117.3
Total paid	439.5		204.7
Net loss and LAE reserves, September 30	342.1		214.9
Plus reinsurance recoverable on unpaid losses	50.3		41.6
Gross loss and LAE reserves, September 30	$	392.4	$	256.5

Incurred losses and LAE attributable to prior accident years was a decrease of $7.9 million and $0.6 million for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, the development of incurred losses and LAE related to prior periods was primarily driven by lower-than-expected reported losses and LAE from accident year 2023 on both liability and physical damage coverages. For the nine months ended September 30, 2023, the development of incurred losses and LAE related to prior periods was a result of lower-than-expected reported losses on injury coverages, partially offset by losses on commutations of certain reinsurance agreements and higher-than-expected LAE in prior accident periods.