0001788882-20-000016 | 10-Q | XBRL Viewer

Investments, Debt and Equity Securities [Abstract]

CAPITAL STOCK

CAPITAL STOCKAs of September 30, 2020 and December 31, 2019, our certificate of incorporation, as amended and restated, authorized 40.5 million of Series A preferred voting stock, 41.8 million Series B preferred voting stock, 35.4 million Series C voting preferred shares, 19.6 million of Series D preferred voting stock and 32.7 million and 30.1 million of Series E preferred voting stock, respectively. All classes of stock have a par value of $0.0001 per share. The redeemable convertible preferred stock is recorded in mezzanine equity because while it is not mandatorily

redeemable, it will become redeemable at the option of the preferred stockholders upon the occurrence of a deemed liquidation event that is considered not solely within our control.

As of September 30, 2020 and December 31, 2019, our certificate of incorporation, as amended and restated, authorized 269.0 million and 266.0 million common shares of voting stock shares of par value $0.0001 per share common stock, respectively. The voting, dividend, and liquidation rights of the holders of the common stock are subject to and qualified by the rights, powers, and preferences of the holders of the preferred stock.

The following table displays our capital stock as of September 30, 2020 and December 31, 2019:


	September 30, 2020				December 31, 2019
	Shares Authorized	Shares Issued and Outstanding	Carrying Value		Shares Authorized	Shares Issued and Outstanding	Carrying Value		Common Stock Issuable Upon Conversion	Conversion Price Per Share	Redeemable on or After
	(in millions, except per share amounts)
Common Stock-Voting(1)	269.0	42.5	$	—	266.0	44.4	$	—	—
Preferred Stock(1)
Preferred-Series A Redeemable Convertible(2)	40.5	40.0	$	5.1	40.5	40.0	$	5.1	40.0	$0.03 - $0.29	September 6, 2026
Preferred-Series B Redeemable Convertible	41.8	41.7	33.7		41.8	41.7	33.7		41.7	0.81	September 6, 2026
Preferred-Series C Redeemable Convertible - Voting	35.4	35.4	50.9		35.4	35.4	50.9		35.4	1.44	September 6, 2026

Preferred-Series D Redeemable Convertible	19.6	19.3	99.9		19.6	19.3	99.9		19.3	5.17	September 6, 2026
Preferred-Series E Redeemable Convertible(3)	32.7	25.4	370.8		30.1	22.5	370.8		25.4	7.78 - 16.49	September 6, 2026
Total Preferred Stock	170.0	161.8	$	560.4	167.4	158.9	$	560.4	161.8

_______________

(1)All classes of stock have a par value of $0.0001 per share.

(2)Shares issued for Series A-1 had a conversion price of $0.03. Shares issued for Series A-2 had a conversion price of $0.11. Shares issued for Series A-3 had a conversion price of $0.29. Collectively these shares are referred to as Series A.

(3)Shares issued for Series E had a conversion price of $16.49. Shares issued for Series E-1 had a conversion price of $7.78. Collectively these shares are referred to as Series E.


	September 30, 2020						December 31, 2019
	Shares Authorized	Shares Issued and Outstanding	Carrying Value		Redemption Value		Shares Authorized	Shares Issued and Outstanding	Carrying Value		Redemption Value
	(in millions, except per share amounts)
Preferred Stock(1)
Preferred-Series A Redeemable Convertible	40.5	40.0	$	5.1	$	5.0	40.5	40.0	$	5.1	$	5.0
Preferred-Series B Redeemable Convertible	41.8	41.7	33.7		33.8		41.8	41.7	33.7		33.8
Preferred-Series C Redeemable Convertible - Voting	35.4	35.4	50.9		51.0		35.4	35.4	50.9		51.0

Preferred-Series D Redeemable Convertible	19.6	19.3	99.9		100.0		19.6	19.3	99.9		100.0
Preferred-Series E Redeemable Convertible	32.7	25.4	370.8		407.7		30.1	22.5	370.8		360.0
Total Preferred Stock	170.0	161.8	$	560.4	$	597.5	167.4	158.9	$	560.4	$	549.8

_______________

____________

(1)All classes of stock have a par value of $0.0001 per share.

SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 0.8	$ 0.3	$ 27.0	$ 9.4
Loss and loss adjustment expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.0	0.0	0.5	0.0
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.0	0.0	1.0	0.0
Other insurance expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.0	0.0	1.0	0.0
Technology and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.2	0.0	5.4	0.0
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 0.6	$ 0.3	$ 19.1	$ 9.4

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2020

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, 2020 and December 31, 2019 are as follows:


	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Bonds and short-term investments:
U.S. Treasury securities and agencies	$	5.1	$	0.1	$	—	$	5.2
Municipal securities	20.2		0.8		—		21.0
Corporate debt securities	95.8		3.1		—		98.9
Residential mortgage-backed securities	11.1		0.1		(0.1)		11.1
Commercial mortgage backed securities	57.9		1.2		(0.1)		59.0
Other debt obligations	28.8		0.5		—		29.3
Total	$	218.9	$	5.8	$	(0.2)	$	224.5

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Bonds and short-term investments:
U.S. Treasury securities and agencies	$	12.7	$	0.1	$	—	$	12.8
Municipal securities	10.2		0.1		—		10.3
Corporate debt securities	38.8		0.4		(0.1)		39.1
Residential mortgage-backed securities	3.3		—		—		3.3
Commercial mortgage backed securities	31.5		0.1		(0.1)		31.5
Other debt obligations	25.7		0.1		—		25.8
Total	$	122.2	$	0.8	$	(0.2)	$	122.8

The amortized cost and fair value of short-term investments and fixed maturity securities by contractual maturity at September 30, 2020 and December 31, 2019 are as follows:


	September 30, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(dollars in millions)
Due in one year or less	$	13.7	$	13.9	$	14.3	$	14.3
Due after one year through five years	149.9		154.6		81.6		82.1
Due five years through 10 years	18.1		18.4		4.9		4.9
Due after 10 years	37.2		37.6		21.4		21.5
Total	$	218.9	$	224.5	$	122.2	$	122.8

Schedule of unrealized losses

The following tables reflect the gross unrealized losses, fair value on bonds, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020 and December 31, 2019:


	September 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Bonds:

Municipal securities	$	2.7	$	—	$	—	$	—	$	2.7	$	—
Corporate debt securities	7.6		—		—		—		7.6		—
Residential mortgage-backed securities	6.8		(0.1)		—		—		6.8		(0.1)
Commercial mortgage-backed securities	3.6		(0.1)		—		—		3.6		(0.1)

Total bonds	$	20.7	$	(0.2)	$	—	$	—	$	20.7	$	(0.2)


	December 31, 2019
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Bonds:

Municipal securities	$	5.5	$	—	$	—	$	—	$	5.5	$	—
Corporate debt securities	12.8		(0.1)		—		—		12.8		(0.1)
Residential mortgage-backed securities	1.9		—		—		—		1.9		—
Commercial mortgage-backed securities	24.5		(0.1)		—		—		24.5		(0.1)
Other debt obligations	7.4		—		—		—		7.4		—
Total bonds	$	52.1	$	(0.2)	$	—	$	—	$	52.1	$	(0.2)

Schedule of net investment income

The following table sets forth the components of net investment income for the three months and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars in millions)
Interest on bonds	$	1.1	$	(0.8)	$	3.2	$	1.0
Interest on deposits and cash equivalents	0.1		2.0		1.4		2.0
Total	1.2		1.2		4.6		3.0
Investment expense	(0.1)		(0.1)		(0.3)		(0.2)
Net investment income	$	1.1	$	1.1	$	4.3	$	2.8

Schedule of credit ratings

The following tables summarize the credit ratings of investments at September 30, 2020 and December 31, 2019:


	September 30, 2020
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	113.3	$	115.5	51.4	%
AA+, AA, AA-, A-1	19.4		20.1		9.0
A+, A, A-	65.0		66.9		29.8
BBB+, BBB, BBB-	21.2		22.0		9.8
Total	$	218.9	$	224.5	100.0	%


	December 31, 2019
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	78.8	$	79.0	64.3	%
AA+, AA, AA-, A-1	8.7		8.8		7.2
A+, A, A-	26.6		26.9		21.9
BBB+, BBB, BBB-	8.1		8.1		6.6
Total	$	122.2	$	122.8	100.0	%

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.

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Gross loss and LAE reserves, January 1			$ 140.7	$ 33.3
Reinsurance recoverable on unpaid losses			(18.9)	(11.4)
Net loss and LAE reserves, January 1			121.8	21.9
Net incurred loss and LAE related to:
Current year			282.0	204.4
Prior years			21.3	6.1
Total incurred	$ 76.1	$ 100.9	303.3	210.5
Net paid loss and LAE related to:
Current year			165.8	125.2
Prior years			100.4	23.3
Total paid			266.2	148.5
Net loss and LAE reserves, September 30	158.9	83.9	158.9	83.9
Plus reinsurance recoverable on unpaid losses	66.4	26.5	66.4	26.5
Gross loss and LAE reserves, September 30	$ 225.3	$ 110.4	$ 225.3	$ 110.4

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2020
Accounting Policies [Abstract]
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.
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, premium write-offs and valuation allowances for income taxes.
Other Insurance Expense	Other Insurance Expense—Other insurance expense includes underwriting expenses; credit card and policy processing expenses; premium write-offs; insurance license expenses; and salaries, health benefits, bonuses, employee retirement plan related expenses, share-based compensation expenses, and overhead allocated based on headcount related to actuarial and certain data science activities. Other insurance expense also includes amortization of deferred acquisition costs like premium taxes and report costs related to the successful acquisition of a policy. Other insurance expense is expensed as incurred, except for costs related to deferred acquisition costs that are capitalized and subsequently amortized over the same period in which the related premiums are earned. These expenses are also recognized net of ceding commissions earned from our quota share reinsurance agreements. The ceding commission provides for reimbursement of both direct and other periodic acquisition costs, including certain underwriting and marketing costs, and is presented as a reduction of other insurance expense. Under our new quota share reinsurance structure effective July 1, 2020, which is on a loss occurring basis, we began ceding approximately 70% of direct earned premiums to our third-party reinsurers. We recognize ceding commissions in proportion to recognition of the direct written premiums during the quarter, including the remaining unearned premiums on ceded policies upon the inception of our new quota share reinsurance agreement.
Deferred Offering Costs	Deferred Offering Costs—Deferred offering costs, which primarily consist of legal, accounting, and other third-party fees directly related to our initial public offering, or IPO, are capitalized as incurred. Upon consummation of the IPO, these deferred offering costs were offset against the IPO proceeds.
Recently Adopted Financial Accounting Standards/Upcoming Accounting Pronouncements	Recently Adopted Financial Accounting Standards—In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. We early adopted ASU 2018-15 on January 1, 2020. The adoption of this standard did not have a material impact on our condensed consolidated financial statements or notes to the condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. The amendments in the update simplify the accounting for income taxes by, among other things, removing the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items like comprehensive income, and recognizing franchise tax that is partially based on income as an income-based tax. We early adopted ASU 2019-12 on January 1, 2020. The adoption of this standard did not have a material impact on our condensed consolidated financial statements or notes to the condensed consolidated financial statements. Upcoming Accounting Pronouncements—We currently qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012, whereby we have the option to adopt new or revised accounting guidance within the same time periods as private companies. We have elected this option, but may ultimately determine it is preferable to take advantage of early adoption provisions offered within the applicable guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The main provision of ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The effective date of ASU 2016-02 is for annual reporting periods beginning after December 15, 2021, and interim reporting periods beginning after December 15, 2022. We are currently evaluating the impact of this ASU. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends previous guidance on the impairment of financial instruments by adding an impairment model that allows an entity to recognize expected credit losses as an allowance rather than impairing as they are incurred. The new guidance is intended to reduce complexity of credit impairment models and result in a more timely recognition of expected credit losses. The effective date of ASU 2016-13 is for reporting periods beginning after December 15, 2022. We are currently evaluating the impact of this ASU.

CAPITAL STOCK - Schedule of Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Equity [Abstract]
Common stock, shares authorized (in shares)	269.0		266.0
Common stock, shares issued (in shares)	42.5		44.4
Common stock, shares outstanding (in shares)	42.5		44.4
Carry value	$ 0.0		$ 0.0
Temporary Equity [Line Items]
Shares authorized (in shares)	170.0		167.4
Shares issued (in shares)	161.8		158.9
Shares outstanding (in shares)	161.8	161.8	158.9	158.9	136.4	136.4
Carrying value	$ 560.4	$ 560.4	$ 560.4	$ 560.7	$ 189.6	$ 189.6
Common stock issuable upon conversion (in shares)	161.8
Par value (in dollars per share)	$ 0.0001		$ 0.0001
Redemption Value	$ 597.5		$ 549.8
Series A Preferred Stock
Temporary Equity [Line Items]
Shares authorized (in shares)	40.5		40.5
Shares issued (in shares)	40.0		40.0
Shares outstanding (in shares)	40.0		40.0
Carrying value	$ 5.1		$ 5.1
Common stock issuable upon conversion (in shares)	40.0
Redemption Value	$ 5.0		$ 5.0
Series A Preferred Stock \| Minimum
Temporary Equity [Line Items]
Conversion price per share (in dollars per share)	$ 0.03
Series A Preferred Stock \| Maximum
Temporary Equity [Line Items]
Conversion price per share (in dollars per share)	0.29
Series A-1 Preferred Stock
Temporary Equity [Line Items]
Conversion price per share (in dollars per share)	0.03		$ 0.03
Series A-2 Preferred Stock
Temporary Equity [Line Items]
Conversion price per share (in dollars per share)	0.11		0.11
Series A-3 Preferred Stock
Temporary Equity [Line Items]
Conversion price per share (in dollars per share)	$ 0.29		$ 0.29
Series B Preferred Stock
Temporary Equity [Line Items]
Shares authorized (in shares)	41.8		41.8
Shares issued (in shares)	41.7		41.7
Shares outstanding (in shares)	41.7		41.7
Carrying value	$ 33.7		$ 33.7
Common stock issuable upon conversion (in shares)	41.7
Conversion price per share (in dollars per share)	$ 0.81
Redemption Value	$ 33.8		$ 33.8
Series C Preferred Stock
Temporary Equity [Line Items]
Shares authorized (in shares)	35.4		35.4
Shares issued (in shares)	35.4		35.4
Shares outstanding (in shares)	35.4		35.4
Carrying value	$ 50.9		$ 50.9
Common stock issuable upon conversion (in shares)	35.4
Conversion price per share (in dollars per share)	$ 1.44
Redemption Value	$ 51.0		$ 51.0
Series D Preferred Stock
Temporary Equity [Line Items]
Shares authorized (in shares)	19.6		19.6
Shares issued (in shares)	19.3		19.3
Shares outstanding (in shares)	19.3		19.3
Carrying value	$ 99.9		$ 99.9
Common stock issuable upon conversion (in shares)	19.3
Conversion price per share (in dollars per share)	$ 5.17
Redemption Value	$ 100.0		$ 100.0
Series E Preferred Stock
Temporary Equity [Line Items]
Shares authorized (in shares)	32.7		30.1
Shares issued (in shares)	25.4		22.5
Shares outstanding (in shares)	25.4		22.5
Carrying value	$ 370.8		$ 370.8
Common stock issuable upon conversion (in shares)	25.4
Conversion price per share (in dollars per share)	$ 16.49		$ 16.49
Redemption Value	$ 407.7		$ 360.0
Series E Preferred Stock \| Minimum
Temporary Equity [Line Items]
Conversion price per share (in dollars per share)	$ 7.78
Series E Preferred Stock \| Maximum
Temporary Equity [Line Items]
Conversion price per share (in dollars per share)	16.49
Series E-1 Preferred Stock
Temporary Equity [Line Items]
Conversion price per share (in dollars per share)	$ 7.78		$ 7.78

OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ (487.2)	$ (189.5)	$ (374.0)	$ (102.7)
Net current period other comprehensive income	0.1	0.1	5.0	0.8
Ending balance	(570.4)	(289.2)	(570.4)	(289.2)
Change in net unrealized gains on investment:
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	5.5	0.7	0.6	0.0
Other comprehensive income before reclassifications	0.2	0.1	5.2	0.8
Realized gains on investments reclassified from AOCI to net income	(0.1)	0.0	(0.2)	0.0
Net current period other comprehensive income	0.1	0.1	5.0	0.8
Ending balance	$ 5.6	$ 0.8	$ 5.6	$ 0.8

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Exercise price of warrants (in dollars per share)	$ 0.0001		$ 0.0001
Net loss	$ (85.2)	$ (100.2)	$ (229.7)	$ (197.2)
Weighted-average common shares outstanding: basic and diluted (in shares)	38.8	34.8	38.7	32.9
Loss per common share: basic and diluted (in dollars per share)	$ (2.20)	$ (2.88)	$ (5.94)	$ (5.99)

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
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-Subparagraph (SX 210.9-04(22))
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
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-Paragraph 11
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-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

LONG-TERM DEBT - Narrative (Details) - USD ($)	1 Months Ended	9 Months Ended
LONG-TERM DEBT - Narrative (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Letters of credit outstanding	$ 0	$ 0
Accrued interest payable	7,700,000	7,700,000	$ 900,000
Term loan \| Amended Term Loan A \| Wells Fargo, Barclays, Morgan Stanley and Deutsche Bank
Debt Instrument [Line Items]
Debt amount	$ 13,500,000	13,500,000
Term loan \| Amended Term Loan B \| Wells Fargo, Barclays, Morgan Stanley and Deutsche Bank
Debt Instrument [Line Items]
Increase in interest rate	3.50%
Accrued interest payable	$ 7,600,000	$ 7,600,000	$ 800,000
Term loan \| Amended Term Loan B \| LIBOR \| Wells Fargo, Barclays, Morgan Stanley and Deutsche Bank
Debt Instrument [Line Items]
Variable rate percentage		10.50%
Line of Credit \| Amended Term Loan A \| Revolving Loan \| Wells Fargo, Barclays, Morgan Stanley and Deutsche Bank
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 100,000,000	$ 100,000,000
Unused fee percentage	0.50%
Line of Credit \| Amended Term Loan A \| Letter of Credit \| Wells Fargo, Barclays, Morgan Stanley and Deutsche Bank
Debt Instrument [Line Items]
Average daily amount fee percentage	4.00%
Fronting fee percentage	0.125%

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES There are no litigation matters outstanding or pending that will have a material effect on our financial position or results of operations. We are contingently liable for possible future assessments under regulatory requirements for insolvencies and impairments of unaffiliated insurance companies.

INCOME TAXES (Details)	3 Months Ended	9 Months Ended
INCOME TAXES (Details)	Sep. 30, 2020	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate	0.00%	0.00%
Federal income tax rate		21.00%

LONG-TERM DEBT

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

LONG-TERM DEBT

The following summarizes the carrying value of long-term debt and warrants as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	(dollars in millions)
Term Loan A	$	99.8	$	99.5
Term Loan B	100.0		100.0
Warrants	36.3		20.3


Total	236.1		219.8

Accrued interest payable	7.7		0.9
Unamortized discount and debt issuance costs	(23.8)		(28.5)
Total	$	220.0	$	192.2

In September 2020, we amended Term Loan A to add new financial institutions (Wells Fargo, Barclays, Morgan Stanley and Deutsche Bank) to the syndicate in the amount of $13.5 million and extended the maturity of Term Loan A to October 15, 2021. As a part of the amended Term Loan A, the syndicate committed, pro rata, to a new $100 million revolving loan, all of which was available to borrow as of September 30, 2020. Commitment fees accrue at 0.50% per annum on the daily amount of unused revolver and is paid quarterly. For any amounts drawn on the revolving loan, interest accrues and is paid consistent with Term Loan A. In addition, there is a letter of credit fee of 4% per annum on the average daily amount of issued letters of credit against the revolver and a 0.125% per annum fronting fee based on the average daily amount of letter of credit exposure. We have no letters of credit outstanding as of September 30, 2020.

In order to amend Term Loan A, we also amended Term Loan B as the terms are pari passu. Notable changes to Term Loan B include removal of the pay-down requirement after the completion of our IPO, an interest rate increase of 3.5% (to 3-month LIBOR plus an applicable margin of 10.5%) starting March 2021, and elimination of payment-in-kind, or PIK, interest after October 15, 2021.

We currently pay interest pursuant to the terms of the loan agreements and have the option to PIK on Term Loan B until October 15, 2021. PIK interest is added to the principal balance every 3 months until we no longer PIK interest, at which point interest is paid quarterly. We have elected to PIK interest on Term Loan B from the original date of closing through September 30, 2020. Deferred PIK interest was $7.6 million and $0.8 million as of September 30, 2020 and December 31, 2019.

GEOGRAPHICAL BREAKDOWN OF DIRECT WRITTEN PREMIUM

9 Months Ended

Sep. 30, 2020

GEOGRAPHICAL BREAKDOWN OF DIRECT WRITTEN PREMIUM

Direct written premium (“DWP”) by state is as follows:


	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	Amount		% of DWP		Amount		% of DWP		Amount		% of DWP		Amount		% of DWP
State	(dollars in millions)
Texas	$	35.2	21.4	%	$	23.6	19.7	%	$	100.4	21.3	%	$	68.1	22.2	%
Georgia	18.8		11.4		11.6		9.7		56.4		12.0		23.2		7.5
Kentucky	7.8		4.7		11.5		9.6		27.7		5.9		34.1		11.1
Pennsylvania	7.9		4.8		7.1		5.9		23.1		4.9		17.2		5.6
Arizona	7.9		4.8		7.5		6.3		22.9		4.9		18.8		6.1
Missouri	7.5		4.6		5.8		4.8		21.1		4.5		15.4		5.0
Louisiana	8.0		4.9		4.7		3.9		20.6		4.4		10.1		3.3
Utah	6.9		4.2		4.8		4.0		19.1		4.1		12.2		4.0
Ohio	5.6		3.4		6.4		5.4		16.6		3.5		17.2		5.6
Oregon	6.5		4.0		3.1		2.6		16.3		3.5		7.8		2.5
All others states	52.5		31.8		33.5		28.1		146.9		31.0		83.3		27.1
Total	$	164.6	100.0	%	$	119.6	100.0	%	$	471.1	100.0	%	$	307.4	100.0	%

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The consolidated effective tax rate was 0.0% for all periods for the three months and nine months ended September 30, 2020 and 2019. 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, 2020, we did not have any unrecognized tax benefits for uncertain tax positions and had no interest or penalties related to uncertain tax positions.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Schedule of earnings per share

RELATED PARTY LOANS (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2020	May 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Total share-based compensation expense			$ 0.8	$ 0.3	$ 27.0	$ 9.4
Unrecognized compensation cost, period of recognition					6 years
Affiliated entity
Related Party Transaction [Line Items]
Related party loans outstanding			$ 3.4		$ 3.4		$ 4.3
Affiliated entity \| Weighted-average interest rate of loans receivable
Related Party Transaction [Line Items]
Interest rate					2.87%		2.80%
Affiliated entity \| Unvested shares accepted for settlement of loan
Related Party Transaction [Line Items]
Related party transaction, shares (in shares)		0.3
Affiliated entity \| Vested shares accepted for settlement of loan
Related Party Transaction [Line Items]
Related party transaction, shares (in shares)		0.1
Affiliated entity \| Extinguishment of related party loan and accrued interest
Related Party Transaction [Line Items]
Amount of related party transaction		$ 0.9
Affiliated entity \| Recognition of treasury stock
Related Party Transaction [Line Items]
Amount of related party transaction		$ 0.7
Subsequent event \| Affiliated entity
Related Party Transaction [Line Items]
Number of options vested (in shares)	0.5
Unrecognized compensation cost	$ 3.1
Subsequent event \| Affiliated entity \| Incremental share-based compensation cost
Related Party Transaction [Line Items]
Expenses with related party	3.4
Subsequent event \| Options \| Affiliated entity
Related Party Transaction [Line Items]
Total share-based compensation expense	$ 0.3
Unrecognized compensation cost, period of recognition	6 years

INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Investment Income [Line Items]
Total	$ 1.2	$ 1.2	$ 4.6	$ 3.0
Investment expense	(0.1)	(0.1)	(0.3)	(0.2)
Net investment income	1.1	1.1	4.3	2.8
Bonds
Net Investment Income [Line Items]
Total	1.1	(0.8)	3.2	1.0
Deposits and cash equivalents
Net Investment Income [Line Items]
Total	$ 0.1	$ 2.0	$ 1.4	$ 2.0

SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions	Sep. 30, 2020 USD ($)
Accounting Policies [Abstract]
Percentage of direct earned premiums ceded	70.00%
Deferred offering costs	$ 0.7

FAIR VALUE OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Assets
AFS securities	$ 224.5	$ 122.8
Cash equivalents	167.7	316.6
Total Assets at fair value	392.2	439.4
Liabilities
Warrant liability	36.3	20.3
Total Liabilities at fair value	36.3	20.3
Fixed maturities
Assets
AFS securities	222.0	119.3
Short-term investments
Assets
AFS securities	2.5	3.5
Level 1
Assets
Cash equivalents	167.7	316.6
Total Assets at fair value	172.9	329.4
Liabilities
Warrant liability	0.0	0.0
Total Liabilities at fair value	0.0	0.0
Level 1 \| Fixed maturities
Assets
AFS securities	2.7	9.8
Level 1 \| Short-term investments
Assets
AFS securities	2.5	3.0
Level 2
Assets
Cash equivalents	0.0	0.0
Total Assets at fair value	219.3	110.0
Liabilities
Warrant liability	0.0	0.0
Total Liabilities at fair value	0.0	0.0
Level 2 \| Fixed maturities
Assets
AFS securities	219.3	109.5
Level 2 \| Short-term investments
Assets
AFS securities	0.0	0.5
Level 3
Assets
Cash equivalents	0.0	0.0
Total Assets at fair value	0.0	0.0
Liabilities
Warrant liability	36.3	20.3
Total Liabilities at fair value	36.3	20.3
Level 3 \| Fixed maturities
Assets
AFS securities	0.0	0.0
Level 3 \| Short-term investments
Assets
AFS securities	$ 0.0	$ 0.0

COVER PAGE - shares	9 Months Ended
COVER PAGE - shares	Sep. 30, 2020	Nov. 24, 2020
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
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
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Title of 12(b) Security	Class A common stock,$0.0001 par value per share
Trading Symbol	ROOT
Security Exchange Name	NASDAQ
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001788882
Current Fiscal Year End Date	--12-31
Class A Common Stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		59,443,588
Class B Common Stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		191,354,938

LOSS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

The following table displays the computation of basic and diluted loss per share of common stock:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions, except per share amounts)
Net loss	$	(85.2)	$	(100.2)	$	(229.7)	$	(197.2)
Weighted-average common shares outstanding: basic and diluted	38.8		34.8		38.7		32.9
Loss per common share: basic and diluted	$	(2.20)	$	(2.88)	$	(5.94)	$	(5.99)

Schedule of anti-dilutive securities

We excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:


	As of September 30,
	2020	2019
	(in millions)
Options to purchase common stock	11.6	11.9
Redeemable convertible preferred stock (as converted to common stock)	161.8	158.9
Warrants to purchase redeemable convertible preferred stock (as converted to common stock)	0.6	0.6
	174.0	171.4

LOSS PER SHARE

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

LOSS PER SHARE

EPS is presented for both basic EPS and diluted EPS. We compute basic EPS by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. In addition to common shares outstanding, the computation of basic EPS includes instruments for which the holder has (or is deemed to have) the present rights as of the end of the reporting period to share in current period earnings (loss) with common stockholders (i.e., participating securities and common shares that are currently issuable for little or no cost to the holder). We also include in the denominator of our basic EPS computation the weighted-average number of shares of common stock that would be issued upon the full exercise of the warrants. These warrants have an insignificant exercise price of $0.0001 per share and are therefore considered outstanding common shares for computation of basic EPS.

Diluted EPS includes all the components of basic EPS, plus the dilutive effect of common stock equivalents such as convertible securities and stock options, but excludes those common stock equivalents from the calculation of diluted EPS when the effect of inclusion, assessed individually, would be anti-dilutive. The calculation of income available to common stockholders and EPS is based on the underlying premise that all income after payment of dividends on preferred shares is available to and will be distributed to the common stockholders.

The following table displays the computation of basic and diluted loss per share of common stock:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions, except per share amounts)
Net loss	$	(85.2)	$	(100.2)	$	(229.7)	$	(197.2)
Weighted-average common shares outstanding: basic and diluted	38.8		34.8		38.7		32.9
Loss per common share: basic and diluted	$	(2.20)	$	(2.88)	$	(5.94)	$	(5.99)


	As of September 30,
	2020	2019
	(in millions)
Options to purchase common stock	11.6	11.9
Redeemable convertible preferred stock (as converted to common stock)	161.8	158.9
Warrants to purchase redeemable convertible preferred stock (as converted to common stock)	0.6	0.6
	174.0	171.4

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Amortized cost, fixed maturities	$ 216.4	$ 118.7
Amortized cost, short term investments	2.5	3.5
Allowance for premiums receivable	$ 7.1	$ 2.0
Temporary equity, par value (in dollars per share)	$ 0.0001	$ 0.0001
Temporary equity, shares outstanding (in shares)	161.8	158.9
Temporary equity, shares issued (in shares)	161.8	158.9
Temporary equity, liquidation preference	$ 597.5	$ 549.8
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	42.5	44.4
Common stock, shares outstanding (in shares)	42.5	44.4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (229.7)	$ (197.2)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	1.9	0.8
Tender offer	25.1	8.6
Depreciation and amortization	10.6	2.4
Bad debt expense	16.7	5.4
Warrants fair value adjustment	16.0	0.0
Payment-in-kind interest expense	6.8	0.0
Realized gains on investments	(0.2)	0.0
SAFE fair value adjustment	0.0	11.2
Changes in operating assets and liabilities:
Premiums receivable	(32.4)	(66.7)
Reinsurance recoverable	(78.8)	(22.3)
Prepaid reinsurance premiums	(101.7)	(6.2)
Deferred acquisition costs	1.5	(1.6)
Other assets	(9.6)	(0.6)
Losses and loss adjustment expenses reserves	84.6	77.2
Unearned premiums	19.7	74.1
Reinsurance premiums payable	140.7	25.4
Accounts payable and accrued expenses	31.6	15.9
Other liabilities	2.4	1.0
Net cash used in operating activities	(94.8)	(72.6)
Cash flows from investing activities:
Purchases of investments	(138.1)	(104.3)
Proceeds from maturities, call and pay downs of investments	31.2	29.9
Sales of investments	9.4	0.0
Capitalization of internally developed software	(3.9)	(4.1)
Purchases of fixed assets	(1.7)	(3.8)
Net cash used in investing activities	(103.1)	(82.3)
Cash flows from financing activities:
Proceeds from exercise of stock options	1.4	1.8
Proceeds from issuance of preferred stock, net	0.0	349.9
Purchase of treasury stock	(0.2)	0.0
Proceeds from debt issuance	13.5	100.0
Debt issuance costs	(1.4)	(2.7)
Repayments of long-term debt	(13.2)	(15.3)
Proceeds from SAFE	0.0	10.0
Net cash provided by financing activities	0.1	443.7
Net (decrease) increase in cash, cash equivalents and restricted cash	(197.8)	288.8
Cash, cash equivalents and restricted cash at beginning of year	416.6	122.3
Cash, cash equivalents and restricted cash at end of year	218.8	411.1
Supplemental disclosures:
Interest paid	3.3	2.8
Income taxes paid	0.0	0.0
Leasehold improvements - non-cash	0.0	0.4
Purchase of treasury stock - non-cash	$ 0.5	$ 0.0

INVESTMENTS - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
INVESTMENTS - Narrative (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Net realized gains	$ 100,000	$ 0	$ 200,000	$ 0

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of fair value

The following tables provide information about our financial assets and liabilities measured and reported at fair value:


	September 30, 2020
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities	$	2.7	$	219.3	$	—	$	222.0
Short-term investments	2.5		—		—		2.5
Cash equivalents	167.7		—		—		167.7
Total Assets at fair value	$	172.9	$	219.3	$	—	$	392.2
Liabilities
Warrant liability	$	—	$	—	$	36.3	$	36.3
Total Liabilities at fair value	$	—	$	—	$	36.3	$	36.3

	December 31, 2019
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities	$	9.8	$	109.5	$	—	$	119.3
Short-term investments	3.0		0.5		—		3.5
Cash equivalents	316.6		—		—		316.6
Total Assets at fair value	$	329.4	$	110.0	$	—	$	439.4
Liabilities
Warrant liability	$	—	$	—	$	20.3	$	20.3
Total Liabilities at fair value	$	—	$	—	$	20.3	$	20.3

Schedule of carrying amounts and fair values of financial instruments

As of September 30, 2020 and December 31, 2019 the carrying amounts and fair values of these financial instruments were as follows:


	Carrying amount as of September 30, 2020		Estimated Fair Value as of September 30, 2020		Carrying amount as of December 31, 2019		Estimated Fair Value as of December 31, 2019
	(dollars in millions)
Long-term debt	$	184.4	$	207.7	$	172.7	$	200.8

NATURE OF BUSINESS (Details)	Sep. 30, 2020 state
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of customers acquired through mobile applications	75.00%
Number of states auto policies written	30
Number of states licensed to write auto policies	6
Number of states renter's insurance written	9

RELATED PARTY LOANS	9 Months Ended
RELATED PARTY LOANS	Sep. 30, 2020
Related Party Transactions [Abstract]
RELATED PARTY LOANS	RELATED PARTY LOANS As of September 30, 2020 and December 31, 2019, there were related party loans outstanding with several key employees of $3.4 million with a weighted-average interest rate of 2.87% and $4.3 million with a weighted-average interest rate of 2.80%, respectively. In May 2020, we settled a related party loan by accepting 0.3 million unvested shares and 0.1 million vested shares in exchange for the full repayment of the related $0.9 million related party loan and accrued interest. We recognized $0.7 million of treasury stock as a result. In October 2020, our Board of Directors approved the forgiveness of all outstanding principal and accrued but unpaid interest for each of the remaining related party loans. As the exercise price had effectively been reduced to zero, the forgiveness was accounted for as a modification of the stock options. An incremental share-based compensation cost of $3.4 million was determined based on the difference in the fair value of the options immediately prior to the modification and the modified fair value. Based on 0.5 million shares having vested as of the date of forgiveness, we recognized $0.3 million of share-based compensation expense in October 2020. The remaining $3.1 million share-based compensation expense will be recognized ratably over the remaining vesting period of 6 years.

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables)

9 Months Ended

Sep. 30, 2020

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,
	2020		2019
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	140.7	$	33.3
Reinsurance recoverable on unpaid losses	(18.9)		(11.4)
Net loss and LAE reserves, January 1	121.8		21.9
Net incurred loss and LAE related to:
Current year	282.0		204.4
Prior years	21.3		6.1
Total incurred	303.3		210.5
Net paid loss and LAE related to:
Current year	165.8		125.2
Prior years	100.4		23.3
Total paid	266.2		148.5
Net loss and LAE reserves, September 30	158.9		83.9
Plus reinsurance recoverable on unpaid losses	66.4		26.5
Gross loss and LAE reserves, September 30	$	225.3	$	110.4

SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATIONWe maintain an equity incentive plan, the 2015 Equity Incentive Plan, or the 2015 Plan, for the issuance and grant of equity awards (restricted stock, restricted stock units, and incentive and nonqualified stock options) to our officers, directors, employees and certain consultants. As of September 30, 2020, the number of shares authorized under the 2015 Plan was 45.4 million authorized common shares.

A summary of option activity for the nine months ended September 30, 2020 is as follows:


	September 30, 2020
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, 2020	12.3	$	1.42	8.22	70.4
Granted	1.5	7.76
Exercised	(1.5)	0.79
Forfeited, expired or canceled	(0.7)	5.05
Outstanding and exercisable at September 30, 2020	11.6	2.20		7.82	124.2

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars in millions)
Share-based compensation expense:
Loss and loss adjustment expenses	$	—	$	—	$	0.5	$	—
Sales and marketing	—		—		1.0		—
Other insurance expense	—		—		1.0		—
Technology and development	0.2		—		5.4		—
General and administrative	0.6		0.3		19.1		9.4
Total share-based compensation expense	$	0.8	$	0.3	$	27.0	$	9.4

In March 2020, a current investor completed a tender offer for common stock from vested shareholders, many of whom were employees or members of the Board of Directors. To encourage participation, the tender offer was made at a price in excess of the fair value of our common stock. As a result, we recognized $25.1 million of share-based compensation expense during the nine months ended September 30, 2020. As of September 30, 2020, there was $9.6 million of total unrecognized compensation cost related to share-based compensation. The remaining cost is expected to be recognized over a period of six years.

The 2015 Plan permits the optionee to early exercise to obtain preferred tax treatment before the completion of the award’s requisite service or vesting period. If the employee terminates employment before the end of this period, the 2015 Plan requires us to repurchase the shares at the exercise price of the award. The repurchase feature is used to require the employee to remain through the requisite service or vesting period to receive the full economic benefit of the award.

Given the repurchase feature functions as a forfeiture provision for nonvested shares, we record the exercise cost of nonvested shares as a deposit liability for those shares settling in cash. As the shares vest, the deposit liability is reduced and additional paid-in capital is increased. As of September 30, 2020 and December 31, 2019, the early exercise deposit liability was $1.4 million and $1.5 million, respectively, and is included in other liabilities on the condensed consolidated balance sheets.

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS In October 2020, our Board of Directors approved the forgiveness of all outstanding principal and accrued but unpaid interest for each of the remaining related party loans. Refer to Note 10 for further discussion. In October 2020, our Board of Directors authorized additional shares bringing our total authorized shares to 1,000.0 million of Class A common stock, 269.0 million shares of Class B Common Stock and 100.0 million shares of Preferred Stock. All classes of stock have a par value of $0.0001 per share. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes and is convertible at any time into one share of Class A common stock. All shares of our capital stock outstanding immediately prior to our IPO, were reclassified into shares of our Class B common stock. In October 2020,we completed our initial public offering of common stock, or IPO, which resulted in the issuance and sale of 24.2 million shares of common stock at the IPO price of $27.00, Concurrently, we issued and sold 18.5 million shares of our Class A common stock in private placements. We received net proceeds of $1.1 billion after deducting certain underwriting discounts and commissions and other offering costs of $53.4 million. In connection with the IPO, our outstanding convertible preferred stock converted into shares of Class B common stock and the 2.8 million liability classified warrants were exercised. Upon conversion of the convertible preferred stock, we reclassified the carrying value of the convertible preferred stock to common stock and additional paid-in capital. We adjusted the warrants to fair value immediately prior to their exercise which resulted in $38.7 million of interest expense recognized in October 2020. Upon exercise of the warrants, we reclassified the carrying value of the warrants from long-term debt and warrants to common stock and additional paid-in capital. In October 2020, our board of directors adopted and our stockholders approved the 2020 Equity Incentive Plan (the “2020 Plan”), which became effective as of October 28, 2020, our IPO date. The 2020 Plan provides for the issuance of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards, and other awards. The number of shares initially reserved for issuance under the 2020 Plan is 41.2 million shares, inclusive of available shares previously reserved for issuance under the 2015 Plan. In addition, the number of shares reserved for issuance under the 2020 Plan is subject to an annual increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, in an amount equal to 4% of the total number of shares of capital stock outstanding on December 31st of the preceding year. Our board of directors may act prior to January 1st of a given year to provide that the increase for such year will be a lesser number of shares of Class A common stock. The aggregate maximum number of shares of Class A common stock that may be issued pursuant to the exercise of incentive stock options is 120.0 million shares. In October 2020, our board of directors adopted and our stockholders approved the 2020 Employee Stock Purchase Plan (the “ESPP”), which became effective immediately prior to our IPO date. The number of shares of Class A common stock initially reserved for issuance under the ESPP is limited to 5.0 million shares. In addition, the number of shares reserved for issuance under the ESPP is subject to an annual increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, in an amount equal to the lesser of (i) 1% of the total number of shares of capital stock outstanding on December 31st of the preceding year and (ii) 7.5 million shares of Class A common stock. Our board of directors may act prior to January 1st of a given year to provide that the increase for such year will be a lesser number of shares of Class A common stock. In November 2020, we acquired a shell insurance company for $22.8 million, which included cash, cash equivalents, and accrued investment income of $14.4 million and insurance license indefinite-lived intangibles of $8.4 million. This acquisition will expand our ability to sell personal auto insurance in 48 states and the District of Columbia. Subsequent events have been evaluated through December 2, 2020, which is the date the financial statements were available to be issued.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - UNAUDITED - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net premiums earned	$ 44.9	$ 75.8	$ 278.4	$ 174.4
Net investment income	1.1	1.1	4.3	2.8
Net realized gains on investments	0.1	0.0	0.2	0.0
Fee income	4.4	2.7	13.0	6.5
Total revenue	50.5	79.6	295.9	183.7
Operating expenses:
Loss and loss adjustment expenses	76.1	100.9	303.3	210.5
Sales and marketing	36.9	34.4	90.1	73.6
Other insurance (benefit) expense	(26.3)	15.2	0.3	34.1
Technology and development	12.9	7.0	40.2	15.4
General and administrative	16.6	9.0	58.8	31.4
Total operating expenses	116.2	166.5	492.7	365.0
Interest expense	19.5	13.3	32.9	15.9
Loss before income tax expense	(85.2)	(100.2)	(229.7)	(197.2)
Income tax expense	0.0	0.0	0.0	0.0
Net loss	(85.2)	(100.2)	(229.7)	(197.2)
Other comprehensive income:
Changes in unrealized gain on investments	0.1	0.1	5.0	0.8
Comprehensive loss	$ (85.1)	$ (100.1)	$ (224.7)	$ (196.4)
Loss per common share: basic and diluted (in dollars per share)	$ (2.20)	$ (2.88)	$ (5.94)	$ (5.99)
Weighted-average common shares outstanding: basic and diluted (in shares)	38.8	34.8	38.7	32.9

GEOGRAPHICAL BREAKDOWN OF DIRECT WRITTEN PREMIUM (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Effects of Reinsurance [Line Items]
Direct premiums written	$ 164.6	$ 119.6	$ 471.1	$ 307.4
Texas
Effects of Reinsurance [Line Items]
Direct premiums written	35.2	23.6	100.4	68.1
Georgia
Effects of Reinsurance [Line Items]
Direct premiums written	18.8	11.6	56.4	23.2
Kentucky
Effects of Reinsurance [Line Items]
Direct premiums written	7.8	11.5	27.7	34.1
Pennsylvania
Effects of Reinsurance [Line Items]
Direct premiums written	7.9	7.1	23.1	17.2
Arizona
Effects of Reinsurance [Line Items]
Direct premiums written	7.9	7.5	22.9	18.8
Missouri
Effects of Reinsurance [Line Items]
Direct premiums written	7.5	5.8	21.1	15.4
Louisiana
Effects of Reinsurance [Line Items]
Direct premiums written	8.0	4.7	20.6	10.1
Utah
Effects of Reinsurance [Line Items]
Direct premiums written	6.9	4.8	19.1	12.2
Ohio
Effects of Reinsurance [Line Items]
Direct premiums written	5.6	6.4	16.6	17.2
Oregon
Effects of Reinsurance [Line Items]
Direct premiums written	6.5	3.1	16.3	7.8
All others states
Effects of Reinsurance [Line Items]
Direct premiums written	$ 52.5	$ 33.5	$ 146.9	$ 83.3
Geographic Concentration Risk \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	100.00%	100.00%	100.00%	100.00%
Geographic Concentration Risk \| Texas \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	21.40%	19.70%	21.30%	22.20%
Geographic Concentration Risk \| Georgia \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	11.40%	9.70%	12.00%	7.50%
Geographic Concentration Risk \| Kentucky \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.70%	9.60%	5.90%	11.10%
Geographic Concentration Risk \| Pennsylvania \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.80%	5.90%	4.90%	5.60%
Geographic Concentration Risk \| Arizona \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.80%	6.30%	4.90%	6.10%
Geographic Concentration Risk \| Missouri \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.60%	4.80%	4.50%	5.00%
Geographic Concentration Risk \| Louisiana \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.90%	3.90%	4.40%	3.30%
Geographic Concentration Risk \| Utah \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.20%	4.00%	4.10%	4.00%
Geographic Concentration Risk \| Ohio \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	3.40%	5.40%	3.50%	5.60%
Geographic Concentration Risk \| Oregon \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.00%	2.60%	3.50%	2.50%
Geographic Concentration Risk \| All others states \| Direct Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	31.80%	28.10%	31.00%	27.10%

OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

9 Months Ended

Sep. 30, 2020

OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents the changes in our accumulated other comprehensive income, or AOCI, for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars in millions)
Change in net unrealized gains on investment:
Beginning balance	$	5.5	$	0.7	$	0.6	$	—
Other comprehensive income before reclassifications	0.2		0.1		5.2		0.8
Realized gains on investments reclassified from AOCI to net income	(0.1)		—		(0.2)		—
Net current period other comprehensive income	0.1		0.1		5.0		0.8
Ending balance	$	5.6	$	0.8	$	5.6	$	0.8

CAPITAL STOCK (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of temporary equity

Schedule of stock

The following table displays our capital stock as of September 30, 2020 and December 31, 2019:


	September 30, 2020				December 31, 2019
	Shares Authorized	Shares Issued and Outstanding	Carrying Value		Shares Authorized	Shares Issued and Outstanding	Carrying Value		Common Stock Issuable Upon Conversion	Conversion Price Per Share	Redeemable on or After
	(in millions, except per share amounts)
Common Stock-Voting(1)	269.0	42.5	$	—	266.0	44.4	$	—	—
Preferred Stock(1)
Preferred-Series A Redeemable Convertible(2)	40.5	40.0	$	5.1	40.5	40.0	$	5.1	40.0	$0.03 - $0.29	September 6, 2026
Preferred-Series B Redeemable Convertible	41.8	41.7	33.7		41.8	41.7	33.7		41.7	0.81	September 6, 2026
Preferred-Series C Redeemable Convertible - Voting	35.4	35.4	50.9		35.4	35.4	50.9		35.4	1.44	September 6, 2026

Preferred-Series D Redeemable Convertible	19.6	19.3	99.9		19.6	19.3	99.9		19.3	5.17	September 6, 2026
Preferred-Series E Redeemable Convertible(3)	32.7	25.4	370.8		30.1	22.5	370.8		25.4	7.78 - 16.49	September 6, 2026
Total Preferred Stock	170.0	161.8	$	560.4	167.4	158.9	$	560.4	161.8

_______________

(1)All classes of stock have a par value of $0.0001 per share.

(3)Shares issued for Series E had a conversion price of $16.49. Shares issued for Series E-1 had a conversion price of $7.78. Collectively these shares are referred to as Series E.

The following table displays our capital stock as of September 30, 2020 and December 31, 2019:


	September 30, 2020				December 31, 2019
	Shares Authorized	Shares Issued and Outstanding	Carrying Value		Shares Authorized	Shares Issued and Outstanding	Carrying Value		Common Stock Issuable Upon Conversion	Conversion Price Per Share	Redeemable on or After
	(in millions, except per share amounts)
Common Stock-Voting(1)	269.0	42.5	$	—	266.0	44.4	$	—	—
Preferred Stock(1)
Preferred-Series A Redeemable Convertible(2)	40.5	40.0	$	5.1	40.5	40.0	$	5.1	40.0	$0.03 - $0.29	September 6, 2026
Preferred-Series B Redeemable Convertible	41.8	41.7	33.7		41.8	41.7	33.7		41.7	0.81	September 6, 2026
Preferred-Series C Redeemable Convertible - Voting	35.4	35.4	50.9		35.4	35.4	50.9		35.4	1.44	September 6, 2026

Preferred-Series D Redeemable Convertible	19.6	19.3	99.9		19.6	19.3	99.9		19.3	5.17	September 6, 2026
Preferred-Series E Redeemable Convertible(3)	32.7	25.4	370.8		30.1	22.5	370.8		25.4	7.78 - 16.49	September 6, 2026
Total Preferred Stock	170.0	161.8	$	560.4	167.4	158.9	$	560.4	161.8

_______________

(1)All classes of stock have a par value of $0.0001 per share.

(3)Shares issued for Series E had a conversion price of $16.49. Shares issued for Series E-1 had a conversion price of $7.78. Collectively these shares are referred to as Series E.


	September 30, 2020						December 31, 2019
	Shares Authorized	Shares Issued and Outstanding	Carrying Value		Redemption Value		Shares Authorized	Shares Issued and Outstanding	Carrying Value		Redemption Value
	(in millions, except per share amounts)
Preferred Stock(1)
Preferred-Series A Redeemable Convertible	40.5	40.0	$	5.1	$	5.0	40.5	40.0	$	5.1	$	5.0
Preferred-Series B Redeemable Convertible	41.8	41.7	33.7		33.8		41.8	41.7	33.7		33.8
Preferred-Series C Redeemable Convertible - Voting	35.4	35.4	50.9		51.0		35.4	35.4	50.9		51.0

Preferred-Series D Redeemable Convertible	19.6	19.3	99.9		100.0		19.6	19.3	99.9		100.0
Preferred-Series E Redeemable Convertible	32.7	25.4	370.8		407.7		30.1	22.5	370.8		360.0
Total Preferred Stock	170.0	161.8	$	560.4	$	597.5	167.4	158.9	$	560.4	$	549.8

_______________

____________

(1)All classes of stock have a par value of $0.0001 per share.

FAIR VALUE OF FINANCIAL INSTRUMENTS

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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+ Details

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2020
Accounting Policies [Abstract]
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 notes included in the final prospectus dated October 27, 2020, as filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933 on October 29, 2020. 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, premium write-offs and valuation allowances for income taxes. COVID-19—In December 2019, COVID-19 was first reported in Wuhan, China and in March 2020, the World Health Organization declared a global pandemic. The global pandemic has severely impacted businesses worldwide, including within the insurance industry. We have been impacted by certain individual state bulletins that outline COVID-19 premium relief efforts, including restrictions on the ability to cancel policies for non-payment, requirements to defer insurance premium payments for up to 60 days and restrictions on increasing policy premiums. COVID-19 has impacted and may further impact the broader economic environment, including negatively impacting unemployment levels, economic growth, the proper functioning of financial and capital markets and interest rates. As the COVID-19 pandemic continues to develop, there is uncertainty around the severity and duration of the pandemic and the pandemic’s potential impact on our business and our financial performance. Other Insurance Expense—Other insurance expense includes underwriting expenses; credit card and policy processing expenses; premium write-offs; insurance license expenses; and salaries, health benefits, bonuses, employee retirement plan related expenses, share-based compensation expenses, and overhead allocated based on headcount related to actuarial and certain data science activities. Other insurance expense also includes amortization of deferred acquisition costs like premium taxes and report costs related to the successful acquisition of a policy. Other insurance expense is expensed as incurred, except for costs related to deferred acquisition costs that are capitalized and subsequently amortized over the same period in which the related premiums are earned. These expenses are also recognized net of ceding commissions earned from our quota share reinsurance agreements. The ceding commission provides for reimbursement of both direct and other periodic acquisition costs, including certain underwriting and marketing costs, and is presented as a reduction of other insurance expense. Under our new quota share reinsurance structure effective July 1, 2020, which is on a loss occurring basis, we began ceding approximately 70% of direct earned premiums to our third-party reinsurers. We recognize ceding commissions in proportion to recognition of the direct written premiums during the quarter, including the remaining unearned premiums on ceded policies upon the inception of our new quota share reinsurance agreement. Deferred Offering Costs—Deferred offering costs, which primarily consist of legal, accounting, and other third-party fees directly related to our initial public offering, or IPO, are capitalized as incurred. Upon consummation of the IPO, these deferred offering costs were offset against the IPO proceeds. Deferred offering costs were $0.7 million as of September 30, 2020. Recently Adopted Financial Accounting Standards—In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. We early adopted ASU 2018-15 on January 1, 2020. The adoption of this standard did not have a material impact on our condensed consolidated financial statements or notes to the condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. The amendments in the update simplify the accounting for income taxes by, among other things, removing the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items like comprehensive income, and recognizing franchise tax that is partially based on income as an income-based tax. We early adopted ASU 2019-12 on January 1, 2020. The adoption of this standard did not have a material impact on our condensed consolidated financial statements or notes to the condensed consolidated financial statements. Upcoming Accounting Pronouncements—We currently qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012, whereby we have the option to adopt new or revised accounting guidance within the same time periods as private companies. We have elected this option, but may ultimately determine it is preferable to take advantage of early adoption provisions offered within the applicable guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The main provision of ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The effective date of ASU 2016-02 is for annual reporting periods beginning after December 15, 2021, and interim reporting periods beginning after December 15, 2022. We are currently evaluating the impact of this ASU. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends previous guidance on the impairment of financial instruments by adding an impairment model that allows an entity to recognize expected credit losses as an allowance rather than impairing as they are incurred. The new guidance is intended to reduce complexity of credit impairment models and result in a more timely recognition of expected credit losses. The effective date of ASU 2016-13 is for reporting periods beginning after December 15, 2022. We are currently evaluating the impact of this ASU.

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

The following tables provide information about our financial assets and liabilities measured and reported at fair value:


	September 30, 2020
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities	$	2.7	$	219.3	$	—	$	222.0
Short-term investments	2.5		—		—		2.5
Cash equivalents	167.7		—		—		167.7
Total Assets at fair value	$	172.9	$	219.3	$	—	$	392.2
Liabilities
Warrant liability	$	—	$	—	$	36.3	$	36.3
Total Liabilities at fair value	$	—	$	—	$	36.3	$	36.3

	December 31, 2019
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities	$	9.8	$	109.5	$	—	$	119.3
Short-term investments	3.0		0.5		—		3.5
Cash equivalents	316.6		—		—		316.6
Total Assets at fair value	$	329.4	$	110.0	$	—	$	439.4
Liabilities
Warrant liability	$	—	$	—	$	20.3	$	20.3
Total Liabilities at fair value	$	—	$	—	$	20.3	$	20.3

We estimate the fair value of all our different classes of Level 2 fixed maturities and short-term investments by using a combination of an independent pricing vendor or broker/dealer, pricing models, quoted prices of securities with similar characteristics or discounted cash flows.

We have financial liabilities categorized as level 3 in the table above for warrants issued and outstanding. To calculate the fair value we utilized the Black-Scholes Merton, or BSM, approach. The significant inputs in calculating the fair value of the warrants were the current price from the most recently completed Internal Revenue Code 409a valuation, or 409a, the current risk-free rate used by the United States Treasury, the expected term and the volatility assumption. The BSM calculation yielded a fair value of $12.9699 per share for each of the 2.8 million warrants. During the three and nine months ended September 30, 2020, we recognized a $13.7 million and $16.0 million adjustment to the fair value of the warrants within interest expense of our condensed consolidated statements of operations and comprehensive loss.

The carrying amount of long-term debt is recorded at historical amounts. 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, 2020 and December 31, 2019 the carrying amounts and fair values of these financial instruments were as follows:


	Carrying amount as of September 30, 2020		Estimated Fair Value as of September 30, 2020		Carrying amount as of December 31, 2019		Estimated Fair Value as of December 31, 2019
	(dollars in millions)
Long-term debt	$	184.4	$	207.7	$	172.7	$	200.8

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

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.

Share-based Payment Arrangement [Abstract]

SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended	9 Months Ended
	Nov. 30, 2020 USD ($) state	Oct. 31, 2020 USD ($) vote $ / shares shares	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 state $ / shares shares	Dec. 31, 2019 $ / shares shares
Subsequent Event [Line Items]
Common stock, shares authorized (in shares)					269,000,000.0	266,000,000.0
Shares authorized (in shares)					170,000,000.0	167,400,000
Par value (in dollars per share) \| $ / shares					$ 0.0001	$ 0.0001
Common stock, par value (in dollars per share) \| $ / shares					$ 0.0001	$ 0.0001
Stock issuance costs \| $			$ 0.1	$ 0.1
Number of states auto policies written \| state					30
Subsequent event
Subsequent Event [Line Items]
Shares authorized (in shares)		100,000,000.0
Par value (in dollars per share) \| $ / shares		$ 0.0001
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0001
Proceeds from sale of stock \| $		$ 1,100.0
Stock issuance costs \| $		$ 53.4
Number of warrants exercised (in shares)		2,800,000
Interest expense recognized \| $		$ 38.7
Number of states auto policies written \| state	48
Subsequent event \| Shell insurance company
Subsequent Event [Line Items]
Purchase price \| $	$ 22.8
Cash, cash equivalents and investment income acquired \| $	14.4
Indefinite-lived asset acquired \| $	$ 8.4
Subsequent event \| 2020 Equity Incentive Plan
Subsequent Event [Line Items]
Shares authorized (in shares)		41,200,000
Annual shares increase, percentage of outstanding stock		4.00%
Subsequent event \| 2020 ESPP
Subsequent Event [Line Items]
Shares authorized (in shares)		5,000,000.0
Annual shares increase, percentage of outstanding stock		1.00%
Subsequent event \| IPO \| Common stock
Subsequent Event [Line Items]
Stock sold in transaction (in shares)		24,200,000
Price of stock sold (in dollars per share) \| $ / shares		$ 27.00
Class A Common Stock \| Subsequent event
Subsequent Event [Line Items]
Common stock, shares authorized (in shares)		1,000,000,000.0
Votes per share \| vote		1
Class A Common Stock \| Subsequent event \| 2020 Equity Incentive Plan
Subsequent Event [Line Items]
Maximum shares allowed to be issued (in shares)		120,000,000.0
Class A Common Stock \| Subsequent event \| 2020 ESPP
Subsequent Event [Line Items]
Shares outstanding, annual shares increase (in shares)		7,500,000
Class A Common Stock \| Subsequent event \| Private placement
Subsequent Event [Line Items]
Stock sold in transaction (in shares)		18,500,000
Class B Common Stock \| Subsequent event
Subsequent Event [Line Items]
Common stock, shares authorized (in shares)		269,000,000.0
Votes per share \| vote		10

LONG-TERM DEBT - Schedule Of Debt (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total	$ 236.1	$ 219.8
Accrued interest payable	7.7	0.9
Unamortized discount and debt issuance costs	(23.8)	(28.5)
Total	220.0	192.2
Term loan \| Term Loan A
Debt Instrument [Line Items]
Total	99.8	99.5
Term loan \| Term Loan B
Debt Instrument [Line Items]
Total	100.0	100.0
Warrants
Debt Instrument [Line Items]
Total	$ 36.3	$ 20.3

SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2020

Summary of option activity

A summary of option activity for the nine months ended September 30, 2020 is as follows:


	September 30, 2020
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, 2020	12.3	$	1.42	8.22	70.4
Granted	1.5	7.76
Exercised	(1.5)	0.79
Forfeited, expired or canceled	(0.7)	5.05
Outstanding and exercisable at September 30, 2020	11.6	2.20		7.82	124.2

Schedule of share-based compensation expense

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars in millions)
Share-based compensation expense:
Loss and loss adjustment expenses	$	—	$	—	$	0.5	$	—
Sales and marketing	—		—		1.0		—
Other insurance expense	—		—		1.0		—
Technology and development	0.2		—		5.4		—
General and administrative	0.6		0.3		19.1		9.4
Total share-based compensation expense	$	0.8	$	0.3	$	27.0	$	9.4

LOSS PER SHARE - Schedule of Anti-Dilutive Securities (Details) - shares shares in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	174.0	171.4
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	11.6	11.9
Redeemable convertible preferred stock (as converted to common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	161.8	158.9
Warrants to purchase redeemable convertible preferred stock (as converted to common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	0.6	0.6

LONG-TERM DEBT (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of long term debt

The following summarizes the carrying value of long-term debt and warrants as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	(dollars in millions)
Term Loan A	$	99.8	$	99.5
Term Loan B	100.0		100.0
Warrants	36.3		20.3


Total	236.1		219.8

Accrued interest payable	7.7		0.9
Unamortized discount and debt issuance costs	(23.8)		(28.5)
Total	$	220.0	$	192.2

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

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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT - UNAUDITED (Parenthetical) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 0.1	$ 0.1

INVESTMENTS - Credit Ratings (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 218.9	$ 122.2
Fair Value	$ 224.5	$ 122.8
AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage	100.00%	100.00%
AAA
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 113.3	$ 78.8
Fair Value	$ 115.5	$ 79.0
AAA \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage	51.40%	64.30%
AA+, AA, AA-, A-1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 19.4	$ 8.7
Fair Value	$ 20.1	$ 8.8
AA+, AA, AA-, A-1 \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage	9.00%	7.20%
A+, A, A-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 65.0	$ 26.6
Fair Value	$ 66.9	$ 26.9
A+, A, A- \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage	29.80%	21.90%
BBB+, BBB, BBB-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 21.2	$ 8.1
Fair Value	$ 22.0	$ 8.1
BBB+, BBB, BBB- \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage	9.80%	6.60%

GEOGRAPHICAL BREAKDOWN OF DIRECT WRITTEN PREMIUM (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of direct premiums written

Direct written premium (“DWP”) by state is as follows:


	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	Amount		% of DWP		Amount		% of DWP		Amount		% of DWP		Amount		% of DWP
State	(dollars in millions)
Texas	$	35.2	21.4	%	$	23.6	19.7	%	$	100.4	21.3	%	$	68.1	22.2	%
Georgia	18.8		11.4		11.6		9.7		56.4		12.0		23.2		7.5
Kentucky	7.8		4.7		11.5		9.6		27.7		5.9		34.1		11.1
Pennsylvania	7.9		4.8		7.1		5.9		23.1		4.9		17.2		5.6
Arizona	7.9		4.8		7.5		6.3		22.9		4.9		18.8		6.1
Missouri	7.5		4.6		5.8		4.8		21.1		4.5		15.4		5.0
Louisiana	8.0		4.9		4.7		3.9		20.6		4.4		10.1		3.3
Utah	6.9		4.2		4.8		4.0		19.1		4.1		12.2		4.0
Ohio	5.6		3.4		6.4		5.4		16.6		3.5		17.2		5.6
Oregon	6.5		4.0		3.1		2.6		16.3		3.5		7.8		2.5
All others states	52.5		31.8		33.5		28.1		146.9		31.0		83.3		27.1
Total	$	164.6	100.0	%	$	119.6	100.0	%	$	471.1	100.0	%	$	307.4	100.0	%

FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Warrant fair value (in dollars per share)	$ 12.9699	$ 12.9699
Warrants outstanding (in shares)	2.8	2.8
Adjustment to fair value of warrants	$ 13.7	$ 16.0	$ 0.0

INVESTMENTS - Unrealized Losses (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	$ 20.7	$ 52.1
Less than 12 Months, Unrealized Loss	(0.2)	(0.2)
12 Months or More, Fair Value	0.0	0.0
12 Months or More, Unrealized Loss	0.0	0.0
Total, Fair Value	20.7	52.1
Total, Unrealized Loss	(0.2)	(0.2)
Municipal securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	2.7	5.5
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	2.7	5.5
Total, Unrealized Loss	0.0	0.0
Corporate debt securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	7.6	12.8
Less than 12 Months, Unrealized Loss	0.0	(0.1)
12 Months or More, Fair Value	0.0	0.0
12 Months or More, Unrealized Loss	0.0	0.0
Total, Fair Value	7.6	12.8
Total, Unrealized Loss	0.0	(0.1)
Residential mortgage-backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	6.8	1.9
Less than 12 Months, Unrealized Loss	(0.1)	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	6.8	1.9
Total, Unrealized Loss	(0.1)	0.0
Commercial mortgage backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	3.6	24.5
Less than 12 Months, Unrealized Loss	(0.1)	(0.1)
12 Months or More, Fair Value	0.0	0.0
12 Months or More, Unrealized Loss	0.0	0.0
Total, Fair Value	3.6	24.5
Total, Unrealized Loss	$ (0.1)	(0.1)
Other debt obligations
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value		7.4
Less than 12 Months, Unrealized Loss		0.0
12 Months or More, Fair Value		0.0
12 Months or More, Unrealized Loss		0.0
Total, Fair Value		7.4
Total, Unrealized Loss		$ 0.0

SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 0.8	$ 0.3	$ 27.0	$ 9.4
Unrecognized compensation cost	9.6		$ 9.6
Unrecognized compensation cost, period of recognition			6 years
Tender offer \| Common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense			$ 25.1
Other liabilities
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise deposit liability	$ 1.4		$ 1.4		$ 1.5
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)	45.4		45.4

INVESTMENTS

9 Months Ended

Sep. 30, 2020

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, 2020 and December 31, 2019 are as follows:


	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Bonds and short-term investments:
U.S. Treasury securities and agencies	$	5.1	$	0.1	$	—	$	5.2
Municipal securities	20.2		0.8		—		21.0
Corporate debt securities	95.8		3.1		—		98.9
Residential mortgage-backed securities	11.1		0.1		(0.1)		11.1
Commercial mortgage backed securities	57.9		1.2		(0.1)		59.0
Other debt obligations	28.8		0.5		—		29.3
Total	$	218.9	$	5.8	$	(0.2)	$	224.5

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Bonds and short-term investments:
U.S. Treasury securities and agencies	$	12.7	$	0.1	$	—	$	12.8
Municipal securities	10.2		0.1		—		10.3
Corporate debt securities	38.8		0.4		(0.1)		39.1
Residential mortgage-backed securities	3.3		—		—		3.3
Commercial mortgage backed securities	31.5		0.1		(0.1)		31.5
Other debt obligations	25.7		0.1		—		25.8
Total	$	122.2	$	0.8	$	(0.2)	$	122.8


	September 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Bonds:

Municipal securities	$	2.7	$	—	$	—	$	—	$	2.7	$	—
Corporate debt securities	7.6		—		—		—		7.6		—
Residential mortgage-backed securities	6.8		(0.1)		—		—		6.8		(0.1)
Commercial mortgage-backed securities	3.6		(0.1)		—		—		3.6		(0.1)

Total bonds	$	20.7	$	(0.2)	$	—	$	—	$	20.7	$	(0.2)


	December 31, 2019
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Bonds:

Municipal securities	$	5.5	$	—	$	—	$	—	$	5.5	$	—
Corporate debt securities	12.8		(0.1)		—		—		12.8		(0.1)
Residential mortgage-backed securities	1.9		—		—		—		1.9		—
Commercial mortgage-backed securities	24.5		(0.1)		—		—		24.5		(0.1)
Other debt obligations	7.4		—		—		—		7.4		—
Total bonds	$	52.1	$	(0.2)	$	—	$	—	$	52.1	$	(0.2)

There were no other-than-temporary impairments recognized in the nine months ended September 30, 2020 or 2019, respectively.

The amortized cost and fair value of short-term investments and fixed maturity securities by contractual maturity at September 30, 2020 and December 31, 2019 are as follows:


	September 30, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(dollars in millions)
Due in one year or less	$	13.7	$	13.9	$	14.3	$	14.3
Due after one year through five years	149.9		154.6		81.6		82.1
Due five years through 10 years	18.1		18.4		4.9		4.9
Due after 10 years	37.2		37.6		21.4		21.5
Total	$	218.9	$	224.5	$	122.2	$	122.8

Net realized gains on short-term investments and fixed maturity securities were $0.1 million and zero for the three months ended September 30, 2020 and 2019, respectively. Net realized gains on short-term investments and fixed maturity securities were $0.2 million and zero for the nine months ended September 30, 2020 and 2019, respectively.

The following table sets forth the components of net investment income for the three months and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars in millions)
Interest on bonds	$	1.1	$	(0.8)	$	3.2	$	1.0
Interest on deposits and cash equivalents	0.1		2.0		1.4		2.0
Total	1.2		1.2		4.6		3.0
Investment expense	(0.1)		(0.1)		(0.3)		(0.2)
Net investment income	$	1.1	$	1.1	$	4.3	$	2.8

The following tables summarize the credit ratings of investments at September 30, 2020 and December 31, 2019:


	September 30, 2020
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	113.3	$	115.5	51.4	%
AA+, AA, AA-, A-1	19.4		20.1		9.0
A+, A, A-	65.0		66.9		29.8
BBB+, BBB, BBB-	21.2		22.0		9.8
Total	$	218.9	$	224.5	100.0	%


	December 31, 2019
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	78.8	$	79.0	64.3	%
AA+, AA, AA-, A-1	8.7		8.8		7.2
A+, A, A-	26.6		26.9		21.9
BBB+, BBB, BBB-	8.1		8.1		6.6
Total	$	122.2	$	122.8	100.0	%

INVESTMENTS - Contractual Maturity (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost
Due in one year or less	$ 13.7	$ 14.3
Due after one year through five years	149.9	81.6
Due five years through 10 years	18.1	4.9
Due after 10 years	37.2	21.4
Total	218.9	122.2
Fair Value
Due in one year or less	13.9	14.3
Due after one year through five years	154.6	82.1
Due five years through 10 years	18.4	4.9
Due after 10 years	37.6	21.5
Total investments	$ 224.5	$ 122.8

OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of AOCI

The following table presents the changes in our accumulated other comprehensive income, or AOCI, for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars in millions)
Change in net unrealized gains on investment:
Beginning balance	$	5.5	$	0.7	$	0.6	$	—
Other comprehensive income before reclassifications	0.2		0.1		5.2		0.8
Realized gains on investments reclassified from AOCI to net income	(0.1)		—		(0.2)		—
Net current period other comprehensive income	0.1		0.1		5.0		0.8
Ending balance	$	5.6	$	0.8	$	5.6	$	0.8

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

9 Months Ended

Sep. 30, 2020