0001628280-22-003524 | 10-K | XBRL Viewer

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CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost: $129.5 and $215.4 at December 31, 2021 and December 31, 2020, respectively)	$ 129,900,000	$ 221,000,000.0
Short-term investments (amortized cost: zero and $3.0 at December 31, 2021 and December 31, 2020, respectively)	0	3,000,000.0
Other investments	4,700,000	500,000
Total investments	134,600,000	224,500,000
Cash and cash equivalents	706,000,000.0	1,112,800,000
Restricted cash	1,000,000.0	1,000,000.0
Premiums receivable, net of allowance of $5.4 and $3.5 at December 31, 2021 and December 31, 2020, respectively	148,100,000	130,100,000
Reinsurance recoverable, net of allowance of $0.2 and zero at December 31, 2021 and December 31, 2020, respectively	155,000,000.0	124,800,000
Prepaid reinsurance premiums	100,800,000	112,800,000
Other assets	73,800,000	56,300,000
Total assets	1,319,300,000	1,762,300,000
Liabilities:
Loss and loss adjustment expense reserves	320,200,000	237,200,000
Unearned premiums	180,100,000	157,100,000
Long-term debt and warrants	0	188,200,000
Reinsurance premiums payable	101,600,000	89,100,000
Accounts payable and accrued expenses	29,100,000	48,000,000.0
Other liabilities	39,900,000	10,300,000
Total liabilities	670,900,000	729,900,000
Commitments and Contingencies (Note 12)
Redeemable convertible preferred stock, $0.0001 par value, 14.1 and zero shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively (liquidation preference of $126.5 and zero, respectively) (Note 10)	112,000,000.0	0
Stockholders’ equity:
Treasury stock, at cost	0	(800,000)
Additional paid-in capital	1,806,100,000	1,775,600,000
Accumulated other comprehensive income	400,000	5,600,000
Accumulated loss	(1,270,100,000)	(748,000,000.0)
Total stockholders’ equity	536,400,000	1,032,400,000
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	1,319,300,000	1,762,300,000
Class A Common Stock
Stockholders’ equity:
Common stock	0	0
Class B Common Stock
Stockholders’ equity:
Common stock	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Amortized cost, fixed maturities	$ 129,500,000	$ 215,400,000
Amortized cost, short term investments	0	3,000,000.0
Allowance for premiums receivable	5,400,000	3,500,000
Allowance for credit loss	$ 200,000	$ 0
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock issued (in shares)	14,100,000	0
Preferred stock, outstanding (in shares)	14,100,000	0
Preferred stock, liquidation preference	$ 126,500,000	$ 0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	142,900,000	59,400,000
Common stock, shares outstanding (in shares)	142,900,000	59,400,000
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	109,900,000	192,200,000
Common stock, shares outstanding (in shares)	109,900,000	192,200,000

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Net premiums earned	$ 310.3	$ 322.5	$ 275.3
Net investment income	5.0	5.4	5.2
Net realized gains on investments	2.4	0.3	0.0
Fee income	20.9	17.4	9.7
Other income	6.8	1.2	0.0
Total revenues	345.4	346.8	290.2
Operating expenses:
Loss and loss adjustment expenses	392.3	362.8	321.4
Sales and marketing	270.2	139.7	109.6
Other insurance expense (benefit)	5.0	(1.8)	52.3
Technology and development	65.5	52.9	24.0
General and administrative	97.6	78.5	43.0
Total operating expenses	830.6	632.1	550.3
Operating loss	(485.2)	(285.3)	(260.1)
Interest expense	(20.0)	(77.7)	(22.3)
Loss on early extinguishment of debt	(15.9)	0.0	0.0
Loss before income tax expense	(521.1)	(363.0)	(282.4)
Income tax expense	0.0	0.0	0.0
Net loss	(521.1)	(363.0)	(282.4)
Other comprehensive (loss) income:
Changes in net unrealized (losses) gains on investments	(5.2)	5.0	0.6
Comprehensive loss	$ (526.3)	$ (358.0)	$ (281.8)
Loss per common share, basic (in dollars per share)	$ (2.09)	$ (4.81)	$ (8.33)
Loss per common share, diluted (in dollars per share)	$ (2.09)	$ (4.81)	$ (8.33)
Weighted-average common shares outstanding, basic (in shares)	249.2	75.5	33.9
Weighted-average common shares outstanding, diluted (in shares)	249.2	75.5	33.9

CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Series E Preferred Stock	Preferred Stock	Class A and Class B Common Stock	Class A and Class B Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Class A and Class B Common Stock Class A Common Stock	Class A and Class B Common Stock Class A Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Class A and Class B Common Stock Class B Common Stock	Class A and Class B Common Stock Class B Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury Stock	Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-In Capital	Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Loss	Accumulated Loss Cumulative Effect, Period of Adoption, Adjustment	Accumulated Loss Cumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance (in shares) at Dec. 31, 2018	136.4
Beginning balance at Dec. 31, 2018	$ 189.6
Increase (Decrease) in Temporary Equity [Roll Forward]
Preferred stock—issued, net of issuance costs (in shares)				21.2
Preferred stock—issued, net of issuance costs				$ 349.6
Preferred stock—SAFE conversion (in shares)				1.3
Preferred stock—SAFE conversion				$ 21.2
Ending balance (in shares) at Dec. 31, 2019	158.9
Ending balance at Dec. 31, 2019	$ 560.4
Beginning balance (in shares) at Dec. 31, 2018								0.0		41.5
Treasury stock, beginning balance (in shares) at Dec. 31, 2018												4.5
Beginning balance at Dec. 31, 2018	(102.7)					$ 0.0						$ (0.1)		$ 0.0		$ 0.0		$ (102.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(282.4)																	(282.4)
Changes in other comprehensive income	0.6															0.6
Tender offer and subsequent conversion (Note 11)	8.6													8.6
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)										2.9
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes	1.9													1.9
Reclassification of early-exercised stock option to liabilities	(1.4)													(1.4)
Common stock—share-based compensation expense	1.4													1.4
Treasury stock, ending balance (in shares) at Dec. 31, 2019												4.5
Ending balance (in shares) at Dec. 31, 2019								0.0		44.4
Ending balance at Dec. 31, 2019	$ (374.0)					0.0						$ (0.1)		10.5		0.6		(385.0)
Increase (Decrease) in Temporary Equity [Roll Forward]
Change in Accounting Principle, Type [Extensible Enumeration]	Accounting Standards Update 2016-13
Tender offer and subsequent conversion (Note 11) (in shares)	2.9
Conversion of redeemable convertible preferred stock to common stock from IPO (in shares)	161.8
Conversion of redeemable convertible preferred stock to common stock from IPO	$ 560.4
Ending balance (in shares) at Dec. 31, 2020	0.0		0.0
Ending balance at Dec. 31, 2020	$ 0.0		$ 0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(363.0)																	(363.0)
Changes in other comprehensive income	5.0															5.0
Tender offer and subsequent conversion (in shares)										(2.9)
Tender offer and subsequent conversion (Note 11)	25.1													25.1
Conversion of redeemable convertible preferred stock to common stock from IPO (in shares)										161.8
Conversion of redeemable convertible preferred stock to common stock from IPO	560.4													560.4
Common stock—issuance of shares from IPO and concurrent private placement, net of issuance costs (in shares)								42.7
Common stock—issuance of shares from IPO and concurrent private placement, net of issuance costs	1,098.1													1,098.1
Conversion of Class B to Class A common stock (in shares)								16.7		(16.7)
Warrants exercise (in shares)										3.3
Warrants exercise	$ 75.2													75.2
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)	2.8									2.8
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes	$ 1.9													1.9
Reclassification of early-exercised stock option to liabilities (in shares)										(0.1)
Reclassification of early-exercised stock option to liabilities	0.2													0.2
Common stock—share-based compensation expense	3.7													3.7
Settlement of related party loan (in shares)										(0.4)		0.1
Settlement of related party loan	(0.2)											$ (0.7)		0.5
Treasury stock, ending balance (in shares) at Dec. 31, 2020												4.6	4.6
Ending balance (in shares) at Dec. 31, 2020								59.4	59.4	192.2	192.2
Ending balance at Dec. 31, 2020	1,032.4	$ (1.0)	$ 1,031.4			0.0	$ 0.0					$ (0.8)	$ (0.8)	1,775.6	$ 1,775.6	5.6	$ 5.6	(748.0)	$ (1.0)	$ (749.0)
Increase (Decrease) in Temporary Equity [Roll Forward]
Preferred stock—issued, net of issuance costs (in shares)					14.1
Preferred stock—issued, net of issuance costs					$ 126.5
Preferred stock and related warrants issuance costs	$ (14.5)
Ending balance (in shares) at Dec. 31, 2021	14.1
Ending balance at Dec. 31, 2021	$ 112.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(521.1)																	(521.1)
Changes in other comprehensive income	$ (5.2)															(5.2)
Conversion of Class B to Class A common stock (in shares)								81.5		(81.5)
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)	2.8							2.4		0.5
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes	$ 4.4													4.4
Reclassification of early-exercised stock option to liabilities (in shares)								(0.4)		(1.3)
Reclassification of early-exercised stock option to liabilities	(0.2)													(0.2)
Common stock—share-based compensation expense	19.3													19.3
Warrant compensation expense	8.8													8.8
Treasury Stock retired (in shares)												(4.6)
Retirement of treasury shares	0.0											$ 0.8		(0.8)
Preferred stock and related warrants issuance costs	(1.0)													(1.0)
Treasury stock, ending balance (in shares) at Dec. 31, 2021												0.0
Ending balance (in shares) at Dec. 31, 2021								142.9		109.9
Ending balance at Dec. 31, 2021	$ 536.4					$ 0.0						$ 0.0		$ 1,806.1		$ 0.4		$ (1,270.1)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (521.1)	$ (363.0)	$ (282.4)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	19.3	3.7	1.4
Warrant compensation expense	8.8	0.0	0.0
Tender offer	0.0	25.1	8.6
Depreciation and amortization	16.6	15.6	4.9
Bad debt expense	20.9	23.6	9.0
Loss on early extinguishment of debt	15.9	0.0	0.0
SAFE fair value adjustment	0.0	0.0	11.2
Warrants fair value adjustment	0.0	54.7	0.0
Paid-in-kind interest expense	10.6	9.1	0.8
Paid-in-kind interest paid	(20.5)	0.0	0.0
Net realized gains on investments	(2.4)	(0.3)	0.0
Change in fair value of equity securities	(3.8)	0.0	0.0
Changes in operating assets and liabilities:
Premiums receivable	(39.7)	(31.0)	(96.7)
Reinsurance recoverable	(30.4)	(99.5)	(9.2)
Prepaid reinsurance premiums	12.0	(95.4)	(4.6)
Other assets	0.8	(21.7)	(3.7)
Losses and loss adjustment expenses reserves	83.0	96.5	107.4
Unearned premiums	23.0	11.7	98.1
Reinsurance premiums payable	12.5	63.4	6.1
Accounts payable and accrued expenses	(19.2)	18.2	19.2
Other liabilities	10.3	2.1	2.7
Net cash used in operating activities	(403.4)	(287.2)	(127.2)
Cash flows from investing activities:
Purchases of investments	(17.0)	(158.4)	(138.1)
Proceeds from maturities, call and pay downs of investments	34.7	42.5	36.2
Sales of investments	70.4	17.9	0.0
Purchases of indefinite-lived intangible assets and transaction costs	0.0	(8.9)	0.0
Capitalization of internally developed software	(6.6)	(5.4)	(5.5)
Purchases of fixed assets	(4.6)	(1.8)	(6.6)
Net cash provided by (used in) investing activities	76.9	(114.1)	(114.0)
Cash flows from financing activities:
Proceeds from exercise of stock options and restricted stock units, net of tax proceeds/(withholding)	3.2	2.1	1.9
Proceeds from issuance of common stock from IPO and concurrent private placements, net of issuance costs	0.0	1,098.1	0.0
Proceeds from issuance of preferred stock and related warrants	126.5	0.0	349.6
Payment of preferred stock and related warrants issuance costs	(10.5)	0.0	0.0
Proceeds from issuance of debt and related warrants, net of issuance costs	0.0	12.0	189.5
Repayments of long-term debt	(199.5)	(13.5)	(15.5)
Proceeds from SAFE	0.0	0.0	10.0
Purchases of treasury stock	0.0	(0.2)	0.0
Net cash (used in) provided by financing activities	(80.3)	1,098.5	535.5
Net (decrease) increase in cash, cash equivalents and restricted cash	(406.8)	697.2	294.3
Cash, cash equivalents and restricted cash at beginning of year	1,113.8	416.6	122.3
Cash, cash equivalents and restricted cash at end of year	$ 707.0	$ 1,113.8	$ 416.6

NATURE OF BUSINESS	12 Months Ended
NATURE OF BUSINESS	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NATURE OF BUSINESSRoot, Inc. is a holding company which, directly or indirectly, maintains 100% ownership of each of its subsidiaries, including, among others, Root Insurance Company, an Ohio-domiciled insurance company; Root Property & Casualty Insurance Company, a Delaware-domiciled insurance company; and Root Reinsurance Company, Ltd., a Cayman Islands-domiciled reinsurance company; together with Root, Inc. “we,” “us” or “our.” We were formed in 2015 and began writing personal auto insurance in July 2016. We are a technology company operating a primarily direct-to-consumer model with the majority of our personal insurance customers acquired through mobile applications. We offer auto and renters insurance products underwritten by Root Insurance Company and Root Property & Casualty Insurance Company.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation—The 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. To conform to the current year presentation, certain prior year amounts have been reclassified.

Use of Estimates—The preparation of 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 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 consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, or LAE, premium write-offs, fair value of warrants, intangible asset impairment and valuation allowance for income taxes.

COVID-19—In March 2020, the World Health Organization declared COVID-19 to be a global pandemic. The pandemic and related measures taken to contain the spread of COVID-19, such as government-mandated business closures, orders to “shelter in place” and travel and transportation restrictions, have negatively affected the U.S. and global economies, disrupted global supply chains, and led to unemployment. We, and other businesses within the insurance industry have been impacted by certain individual state bulletins that were issued in 2020 and outlined COVID-19-related 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. The COVID-19 pandemic and governmental responses thereto have impacted and may further impact the broader economic environment, including creating or exacerbating supply chain disruptions and inflation and negatively impacting unemployment levels, economic growth, the proper functioning of financial and capital markets and interest rates. As a result of certain factors related to the COVID-19 global pandemic we continue to file in multiple states to establish rates that more closely follow the evolving loss cost trends. As the COVID-19 pandemic continues, there is uncertainty around the severity and duration of the pandemic and the pandemic’s potential impact on our business and our financial performance. Accordingly, we cannot predict the impact that it may have on our future results of operations and financial condition.

Debt and Equity Issuance Costs—Debt and equity issuance costs, which primarily consist of advisor, legal, accounting, and other third-party fees directly related to issuing debt and equity instruments, are capitalized as other assets in our consolidated balance sheets as incurred. We incurred such costs in connection with our investment agreement we entered into with Carvana on August 21, 2021, or the Investment Agreement, and term loan agreement. Upon close of the related transaction, these deferred issuance costs are generally offset against the related proceeds. Debt issuance costs are subsequently amortized over the term of the financing agreement as interest expense on the consolidated statements of operations and comprehensive loss.

Asset Acquisition—In November 2020, we acquired all of the authorized, issued and outstanding shares of Catlin Indemnity Company, renamed Root Property & Casualty, for $22.8 million, which included cash, cash equivalents, and accrued investment income of $14.4 million and insurance license indefinite-lived intangible assets of $8.4 million. The transaction costs associated with this acquisition were $0.5 million and were allocated to the insurance license indefinite-lived intangible assets acquired. This acquisition will expand our ability to sell personal auto insurance in 48 states and the District of Columbia.

We accounted for the acquisition of Root Property & Casualty as an asset acquisition because substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets (the insurance licenses) and the acquisition of Root Property & Casualty did not include an input and a substantive process that together significantly contribute to the ability to create outputs and therefore does not meet the definition of a business under GAAP. Accordingly, we recognized the acquired assets at fair value as of the acquisition date, with transaction costs allocated to the insurance license indefinite-lived intangible assets.

Indefinite-Lived Intangible Assets—In connection with the acquisition of Root Property & Casualty, we recognized insurance licenses of $8.9 million, including transaction costs, as of December 31, 2021 and 2020 in other assets in our consolidated balance sheets. We incur a minimal fee to renew each license. These intangible assets are not amortized, but instead are tested for impairment annually or when indicators of impairment exist. The impairment test for indefinite-lived intangibles involves first assessing qualitative factors to determine if it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If so, then a quantitative test is performed to compare the estimated fair value of the indefinite-lived intangible asset to the respective asset's carrying amount. The evaluation requires the use of estimates and significant judgments and considers the weight of evidence and significance of all identified events and circumstances and most relevant drivers of fair value, both positive and negative, in determining whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. No impairment was recognized for 2021 or 2020.

Segment Information—Our chief operating decision maker is the Chief Executive Officer. The chief operating decision maker manages operations, allocates resources, and evaluates financial performance on a company-wide basis. We operate in one reporting segment providing direct-to-consumer insurance products to customers.

Statement of Cash Flows—The supplemental disclosures for cash and non-cash flows for the years ended December 31, 2021, 2020 and 2019 are as follows:


	2021		2020		2019
	(in millions)
Supplemental disclosures:
Interest paid	$	23.9	$	4.5	$	4.3
Federal income taxes paid	—		—		—
Leasehold improvements - non-cash	1.5		—		1.5
Conversion of debt to preferred stock - non-cash	—		—		11.2
Conversion of preferred stock to common stock - non-cash	—		560.4		—
Conversion of warrants to common stock - non-cash	—		75.0		—
Lease liabilities arising from obtaining right-of-use asset	9.9		—		—
Investment Agreement issuance costs - non-cash	9.1		—		—
Purchases of treasury stock - non-cash	—		0.5		—

Cash, Cash Equivalents and Restricted Cash—Cash consists of cash on deposit. Cash equivalents are short-term, highly liquid investments that mature within three months from the date of origination and are principally stated at amortized cost, which approximates their fair value. Restricted cash consists of amounts held by a financial institution to satisfy letter of credit requirements for certain property leases.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amount in the consolidated statements of cash flows:


	2021		2020
	(in millions)
Cash and cash equivalents	$	706.0	$	1,112.8
Restricted cash	1.0		1.0
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	707.0	$	1,113.8

Book Overdraft—If checks are issued in excess of the amount of cash on hand, a book overdraft shall be reclassified to accounts payable on the consolidated balance sheets. When a check is issued whereby a disbursement account is used to write the check, but the account is not funded until the check is presented for payment this "negative cash" balance is included in cash and cash equivalents on the consolidated balance sheets, if the funding account has sufficient funds.

Investments—Investments in debt securities are classified as short-term and available-for-sale securities and are carried at fair value with any unrealized gains and losses, net of taxes, recorded as a component of accumulated other comprehensive income.

Management regularly reviews our securities for signs of impairment, an assessment requiring significant management judgment. Beginning with our adoption of Financial Accounting Standards Board, or FASB, Accounting Standard Update, or ASU, No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments as of January 1, 2021, the criteria that management considers are the financial condition of the issuer, including receipt of scheduled principal and interest cash flows, fair value of a security that has fallen below the amortized value, maturity dates, current economic conditions and intent to sell, including if it is more likely than not that we will be required to sell the security before recovery. We then assess whether the decline in value is due to non-credit related or credit related factors. Non-credit related declines in market value are recorded as unrealized losses in accumulated other comprehensive income. If we determine that the decline is credit related, we establish an allowance for credit losses equal to the difference between the discounted cash flow model and the amortized value, which is recorded in net realized gains (losses) on investments in our consolidated statements of operations and comprehensive loss. This allowance may be subsequently adjusted for recoveries or further credit losses.

Prior to January 1, 2021, we were under an incurred loss model whereby we reviewed our securities for signs of other than temporary impairment. The criteria were similar to those noted above, except we also considered the length of time a security was in an unrealized loss position. When a debt security was determined to have an other than temporary impairment, the impairment charge was separated into an amount representing the credit loss, which would be recognized in earnings as a realized loss and the amount related to non-credit factors, which would be recognized in other comprehensive income. Subsequent recoveries of other than temporary impairment were not recognized. No such credit losses were recognized in 2021, nor were there other than temporary impairments recognized in 2020 or 2019.

Other investments primarily consist of private equity investments without a readily determinable fair value. We elected to account for these investments at cost minus any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. Such changes are accounted for within net investment income on our consolidated statements of operations and comprehensive loss.

We also invest in Low Income Housing Tax Credits, or LIHTC, projects by way of investing in a limited liability entity to offset Georgia premium taxes. The purpose of these investments is to encourage private capital investments into regions within Georgia that are in need of economic development, while providing tax credits and operating loss tax benefits to investors. We account for this investment using the cost method because our interest in the limited liability entity is so minor that we have virtually no influence over the entity’s operating and financial policies. When we utilize the tax credits, the associated investment becomes impaired. Impairment of the investment is recognized within net investment income in our consolidated statements of operations and comprehensive loss.

Fair Value Measurements—Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are:

Level 1 - Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices in active markets for identical assets and liabilities.

Level 2 - Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data.

Level 3 - Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

Premiums, Premiums Receivable and Premium Write-offs—Premiums written are deferred and earned pro rata over the policy period. Unearned premium is established to cover the unexpired portion of premiums written. A premium deficiency, as measured on a gross basis, is recorded when the sum of expected losses, LAE, unamortized acquisition costs and maintenance costs exceed the recorded unearned premium reserve and anticipated investment income. A premium deficiency reserve is recognized as a reduction of deferred acquisition costs and, if necessary, by accruing an additional liability for the deficiency, with a corresponding charge to operations. We did not record a premium deficiency reserve in 2021, 2020 or 2019.

In August 2021, we commenced a fronting arrangement with an unaffiliated Texas county mutual insurance company, or the fronting carrier. We route all of our new auto policies, and, over time, expect to route certain renewal auto policies, in Texas through the fronting carrier whereby we assume 100% of the related premium and losses on those policies. The fronting arrangement allows us to have greater rating and underwriting flexibility. Premiums assumed are deferred and earned pro rata over the policy period. Unearned premium is established to cover the unexpired portion of premiums assumed.

Premiums receivable represents premiums written but not yet collected. Generally, premiums are collected prior to providing risk coverage, minimizing our exposure to credit risk. Due to a variety of factors, certain premiums billed may not be collected, for which we establish an allowance for doubtful accounts based primarily on an analysis of historical collection experience, adjusted for current economic conditions. Allowance for credit losses was $5.4 million and $3.5 million as of December 31, 2021 and 2020, respectively, on the consolidated balance sheets. A policy is considered past due on the first day after its due date and policies greater than 90 days past due are written-off. We recognized bad debt expense of $20.9 million, $23.6 million and $9.0 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Fee Income—Fee income consists of the flat fee we charge to those policyholders who pay premiums on an installment basis. The fee relates to the additional administrative costs associated with processing more frequent billings. We recognize this fee income in the period in which we process each installment.

Other Income—Other income primarily comprises revenue earned from distributing website and app policy inquiry leads in geographies where we do not have a presence, recognized when we generate the lead; commissions earned for homeowners policies placed with third-party insurance companies where we have no exposure to the insured risk, recognized on the effective date of the associated policy; and sale of enterprise technology products to provide telematics-based data collection and trip tracking, recognized ratably as the service is performed.

Sales and Marketing—Sales and marketing expenses includes spend related to performance and embedded channels, channel media, advertising, branding, public relations, consumer insights and referral fees. These expenses also include related employee costs including salaries, health benefits, bonuses, employee retirement plan related expenses and employee share-based compensation expense, or Personnel Costs, and overhead allocated based on

headcount, or Overhead. It also includes warrant compensation expense related to our embedded channel. We incur sales and marketing expenses for all product offerings. Sales and marketing costs are expensed as incurred.

Other Insurance Expense (Benefit)—Other insurance expense (benefit) includes underwriting expenses, credit card and policy processing expenses, premium write-offs, insurance license expenses, and Personnel Costs and Overhead related to actuarial and certain data science activities. Other insurance expense (benefit) also includes amortization of deferred acquisition costs like premium taxes and report costs related to the successful acquisition of a policy. Other insurance expense (benefit) 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 (benefit).

Technology and development—Technology and development expense consists of software development costs related to our mobile app and homegrown information technology systems; third-party services related to infrastructure support; Personnel Costs and Overhead for engineering, product, technology, and certain data science activities; and amortization of internally developed software. Technology and development is expensed as incurred, except for development and testing costs related to internally developed software that are capitalized and subsequently amortized over the expected useful life.

General and Administrative—General and administrative expenses primarily relate to external professional service expenses; Personnel Costs and Overhead for corporate functions; and depreciation expense for computers, furniture and other fixed assets. General and administrative expenses are expensed as incurred.

Policy Acquisition Costs—Acquisition costs consist primarily of premium taxes, certain marketing costs and underwriting expenses, and fronting carrier commissions, net of ceding commissions, related to the successful acquisition of new or renewal business. They are deferred and amortized over the same period in which the related premiums are earned. Ceding commissions relating to reinsurance agreements are recorded as a reimbursement for both deferrable and non-deferrable acquisition costs. The portion of the ceding commission that is equal to the pro rata share of acquisition costs based on quota share percentage is recorded as an offset to the gross deferred acquisition costs. Any portion of the ceding commission that exceeds the acquisition costs of the business ceded is recorded as excess ceding commission, a deferred liability, and amortized over the same period in which the related premiums are earned. Deferred acquisition costs, net of accumulated amortization, was $2.8 million and $1.7 million as of December 31, 2021 and 2020, respectively.We amortized deferred acquisition costs of $26.4 million, $17.1 million and $12.2 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Loss and Loss Adjustment Expense and Reserves—Loss and LAE reserves include an amount determined using adjuster determined case-base estimates for reported claims and actuarial determined unpaid claim estimates using past experience and historical emergence patterns for unreported losses and LAE. These reserves are a liability established to cover the estimated ultimate cost to settle insured losses. The estimation of the liability for loss and LAE reserves is complex and includes subjective considerations and management’s judgement. The actuarial methods to determine unpaid loss estimates consider loss trends, contract interpretation, mix of business, regulatory environment, economic conditions, inflation and other risk factors impacting claims settlement. The method used to estimate unpaid LAE liability is based on claims transaction data, including the relative cost of adjusting and settling a range of claim types from express material damage claims to more complex injury cases. There is considerable uncertainty associated with the actuarial estimates, and therefore no assurance can be made that the ultimate unpaid claim liability will not vary materially from such estimates. These loss estimates are continually reviewed by management and adjusted as necessary, with adjustments included in the period determined and recorded in loss and LAE on our consolidated statements of operations and comprehensive loss. As such, loss and LAE reserves represent management’s best estimate of the ultimate liability related to reported and unreported claims.

Our loss and LAE reserves are recorded gross of reinsurance and net of amounts expected to be received from salvage (the amount recovered from a total loss claims expense) and subrogation (the right to recover payments from third parties).

Loss and LAE is recorded net of amounts ceded to reinsurers. We enter into reinsurance contracts to limit our exposure to potential losses as well as to provide additional capacity for growth. These expenses are a function of the size and term of the insurance policies we write and the loss experience associated with the underlying risks. Loss and LAE may be paid out over a period of years. Various other expenses incurred during claims processing are allocated to LAE. These amounts include claims Personnel Costs, software expense, internally developed software amortization, and Overhead.

Reinsurance—In the ordinary course of business, we cede and retrocede a portion of our business written and assumed, respectively, to reinsurers to limit the maximum net loss potential arising from large risks and catastrophes. These arrangements, known as treaties, provide for reinsurance coverage on quota-share and excess-of-loss basis. All reinsurance contracts provide for indemnification against loss or liability relating to insurance risk and have been accounted for as reinsurance. Although the ceding of reinsurance does not discharge us from our primary liability to the policyholder, the insurance company that assumes the coverage assumes the related liability. Amounts recoverable from and payable to reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business. Reinsurance premiums, commissions and expense reimbursements related to reinsured business are accounted for on a basis consistent with the basis used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of premiums earned and are recognized over the remaining policy period based on the reinsurance protection provided. Amounts applicable to reinsurance ceded for unearned premium reserves are reported as a prepaid reinsurance premiums asset in the accompanying consolidated balance sheets and as reduction of unearned premiums in Note 6, “Reinsurance.” Ceding commissions received in connection with reinsurance ceded have been accounted for as a reduction of other insurance (benefit) expense in the consolidated statements of operations and comprehensive loss.

Some of our reinsurance agreements provide for adjustment of commissions or amount of coverage based on loss experience. We recognize the asset or liability arising from these adjustable features in the period the adjustment occurs, which is calculated based on experience to-date under the agreement.

In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, we would be liable for such defaulted amounts. We evaluate and monitor the financial condition associated with our reinsurers in order to minimize our exposure to significant losses from reinsurer insolvencies. We obtain our reinsurance from a diverse group of reinsurers and monitor concentration as well as financial strength ratings of the reinsurers to minimize counterparty credit risk. To recognize this risk of credit loss, we have established an allowance for credit losses based on the probability of default and the expected loss given default as influenced by factors such as the reinsurer’s credit rating and average life of our reinsurance recoverables. Allowance for credit losses was $0.2 million and zero as of December 31, 2021 and 2020, respectively.

Income Taxes—For the 2021 tax year, Root, Inc. will file a consolidated federal income tax return with Caret Holdings, Inc., Root Insurance Company, Root Property & Casualty, Root Lone Star Insurance Agency, Inc, and Root Reinsurance Company, Ltd. The consolidated return also includes Root Insurance Agency, LLC, Root Enterprise, LLC and Root Scout, LLC, which are disregarded entities under Caret Holdings, Inc. for federal income tax purposes.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are recognized to the extent that there is sufficient positive evidence, as allowed under the Accounting Standard Codification, or ASC, 740, Income Taxes, to support the recoverability of those deferred tax assets. We establish a valuation allowance to the extent that there is insufficient evidence to support the recoverability of the deferred tax asset under ASC 740. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. If it is determined that the deferred tax assets would be realizable in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. A valuation allowance of $255.0 million and $137.3 million was established as of December 31, 2021 and 2020, respectively. Further details are discussed in Note 9, "Income Taxes."

We recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained under examination by the appropriate taxing authority. Interest and penalties on our reserve for uncertain tax positions are recognized as a component of tax expense. As of December 31, 2021 and 2020, we did not have any unrecognized tax benefits for uncertain tax positions and had no accrued interest or penalties related to uncertain tax positions.

Internally Developed Software—We review our software development activity and capitalize costs during the application development phase under ASC 350-40, Internal-Use Software. These costs are amortized on a straight-line basis over a five-year period. Internally developed software costs are assessed for impairment at least quarterly, which also ensures that the assets are still in service. If there are assets identified as no longer in use, the remaining unamortized costs will be fully amortized. We amortized internally developed software of $3.7 million, $2.4 million and $1.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. The capitalized cost and accumulated amortization of internally developed software at December 31, 2021 and 2020 are as follows:


	2021		2020
	(dollars in millions)
Internally developed software	$	20.5	$	13.9
Accumulated amortization	(8.0)		(4.3)
Internally developed software, net	$	12.5	$	9.6

Fixed Assets—Fixed Assets are carried at cost, net of accumulated depreciation. We capitalize purchases of fixed assets with costs greater than $1,000, including computers, furniture, and leasehold improvements. Depreciation on computers and furniture is recognized on a straight-line basis over a useful life of three years and five years, respectively. Depreciation on leasehold improvements is recognized on a straight-line basis over the shorter of their useful life or the life of the lease. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. For the years ended December 31, 2021, 2020 and 2019, depreciation expense was $4.6 million, $3.1 million and $1.7 million, respectively. The capitalized cost and accumulated depreciation of fixed assets at December 31, 2021 and 2020 are as follows:


	2021		2020
	(dollars in millions)
Computers	$	7.0	$	4.5
Furniture	3.4		3.4
Leasehold improvements	9.8		6.3
Total fixed assets, at cost	$	20.2	$	14.2
Accumulated depreciation	(9.9)		(5.3)
Fixed assets, net	$	10.3	$	8.9

Employee Share-Based Compensation—We award share-based compensation, including stock options with only a service condition, stock options with service and performance conditions, restricted stock units, or RSUs, and restricted stock, to our officers, directors, employees, and certain advisors through approval from the Compensation

Committee of the Board of Directors. We have also granted warrants to purchase shares of the Company’s Class A common stock to Carvana, which vest based upon achievement of certain performance conditions.

Share-based compensation expense is recognized based on the grant date fair value of the awards, which is determined using the Black-Scholes Merton, or BSM, option-pricing model. The BSM option pricing model requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the options, the risk-free interest rate for a period that approximates the expected term of the option, and our expected dividend yield. The fair value of common stock underlying the stock options, restricted stock and RSUs granted before our initial public offering, or IPO, had historically been determined by our Board of Directors, with input from management, and considering third-party valuations of our common stock. Because there had been no public market for our common stock, our Board of Directors had determined its fair value at the time of grant of the pre-IPO option by considering a number of objective and subjective factors, including financing investment rounds, operating and financial performance, the lack of liquidity of share capital and general and industry specific economic outlook, among other factors. Our Board of Directors determined the fair value of common stock based on valuations performed using the Option Pricing Method and the Probability Weighted Expected Return Method subject to relevant facts and circumstances. In connection with our IPO, our common stock became listed on the Nasdaq Global Select Market and we use these market prices for the fair value of our common shares. Stock options are generally exercisable for a period up to ten years from the grant date.

We recognize forfeitures as they occur, which generally results in the reversal of previously recognized expense for nonvested awards. In the event of an involuntary termination that results in the cancellation of an award, the remaining unrecognized compensation cost for the entire award is recognized in the period of cancellation. If the award is cancelled and concurrently replaced upon termination, it follows modification accounting, typically as a Type III improbable-to-probable modification whereby it is effectively treated as a forfeiture and new grant as of the date of termination.

Stock options with only a service condition generally vest over four years - 25% cliff vests after one year and approximately 2% vests each month over three years thereafter. Stock options with service and performance conditions generally vest ratably over a four-year period assuming achievement of the performance conditions. The compensation expense associated with nonvested stock options that have performance conditions is dependent on our periodic assessment of the probability of the performance conditions being achieved. If deemed probable, we recognize compensation expense on a straight-line basis over the requisite service period. If a performance condition is no longer probable of achievement, any previously recognized compensation expense is reversed and no subsequent compensation expense is recognized until achievement is once again probable, at which point a cumulative catch-up is recognized. RSUs generally vest over four years - 25% cliff vests after one year and approximately 2% vests each month over three years thereafter. Certain other RSUs vest in accordance with one of the following patterns: over four years - 25% cliff vests after one year and in equal increments quarterly over three years thereafter, over four years in equal quarterly increments, or fully cliff vest after one year. We generally recognize share-based compensation expense ratably over the respective vesting period.

Warrant Compensation—In October 2021, we closed the Investment Agreement with the Carvana Group, LLC, or Carvana, that included the issuance of 14.1 million shares of redeemable convertible preferred stock designated as the Series A Convertible Preferred Stock and the issuance of eight tranches of warrants to purchase shares of the Company’s Class A common stock. As part of the investment agreement, we and Carvana also entered into a five-year commercial agreement whereby our auto insurance products will be embedded into Carvana’s online car buying platform, or Integrated Platform. The commercial agreement provides for agent commissions payable to Carvana for policy origination and an enterprise total loss replacement vehicle solution.

The Carvana warrants compensation expense is recognized based on the grant date fair value of the award, which was determined using a Monte Carlo simulation in a risk-neutral framework, as contemplated in the Income Approach of valuation. Specifically, future equity is simulated in each period assuming a Geometric Brownian Motion. We considered the features of the warrants and the interdependency of exercise decisions between the Short-Term Warrants and the Long-Term Warrants in using the Monte Carlo simulation in order to determine the optimum exercise decision. The optimum exercise decision was made by choosing the option which would give the highest aggregate expected value to the holder in each of the 100,000 simulated paths. The payoff of each path is

then calculated based on the simulated equity and discounted back to time zero using the applicable risk-free rates. The fair value of the warrants are then calculated as the average value from all simulation paths.

Employing a Monte Carlo simulation with Geometric Brownian Motion requires a range of inputs for each uncertain variable, and establishing linkage between the assumptions, if necessary. Inputs and assumptions used in our analysis included our stock price at grant date, exercise prices, the term of the warrants, equity volatility, risk-free rate and dividend yield. Additional considerations included a discount for lack of marketability resulting from Carvana’s five-year lock-up period.

These warrants vest as the parties’ develop an integrated automobile insurance solution for Carvana’s online car buying platform, or the Integrated Platform, and insurance sales through the Integrated Platform. The associated compensation expense is dependent on our periodic assessment of the probability of the milestones being achieved. If deemed probable, we recognize compensation expense on a pro-rata basis considering progress toward achieving the milestones. If a performance condition is no longer probable of achievement, any previously recognized compensation expense is reversed and no subsequent compensation expense is recognized until achievement is once again probable, at which point a cumulative catch-up is recognized. In determining the classification as equity, we followed guidance issued within FASB ASC 480, Distinguishing Liabilities from Equity, and FASB ASC 815, Derivatives and Hedging.

For additional information refer to Note 11, “Share-Based Compensation.”

Net Loss Per Share—Net loss per share, or EPS, results are a key indicator of the overall performance relative to each share of our outstanding common stock. Basic EPS share for both Class A and Class B common stock is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares vested and outstanding during the period. In addition to common shares outstanding, the computation of basic EPS includes instruments for which the holder is deemed to have the present rights to share in current period earnings (loss) with common stockholders. Accordingly, the warrants issued in connection with our Term Loan B were included in the 2020 and 2019 weighted-average number of common shares outstanding because they had an insignificant exercise price of $0.0001 per share and were therefore considered outstanding common shares for computation of basic EPS.

Diluted EPS for both Class A and Class B common stock includes all the components of basic EPS, plus the dilutive effect of common stock equivalents, but excludes those common stock equivalents from the calculation of diluted EPS when the effect of inclusion, assessed individually, would be anti-dilutive. Notable dilutive securities relevant to our operations are stock options, performance stock options, nonvested shares subject to repurchase, restricted stock units, warrants and redeemable convertible preferred stock.

We have operated at a loss for the years ended December 31, 2021, 2020 and 2019. Therefore, the conversion of common stock equivalents would increase the denominator of the EPS calculation and create a lower loss per share. Therefore, these common stock equivalents are considered antidilutive and diluted EPS is equal to basic EPS. Losses are allocated equally between both classes of common stock because they are entitled to the same liquidation and dividend rights.

Recently Adopted Accounting Pronouncements and Registrant Filing Status—Prior to December 31, 2021, we qualified as an “emerging growth company,” or EGC, under the Jumpstart Our Business Startups Act of 2012, or JOBS Act. We previously elected to adopt certain new or revised accounting guidance within the same time period as private companies as permitted by our status as an EGC.

We became a large accelerated filer on December 31, 2021, and lost our status as an EGC. Accordingly, we will follow the adoption criteria of public companies for new accounting pronouncements beginning with this Annual Report on Form 10-K. Prior to this Annual Report on Form 10-K, our financial statements did not reflect adoption of certain amended guidance that public companies generally may have been required to adopt, but we were not required to adopt based on our EGC status.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends previous guidance on the

impairment measurement of financial assets, including reinsurance recoverables, available-for-sale securities, and premium receivables, by requiring an entity to recognize an allowance for expected credit losses as a contra asset, rather than impairment as losses are incurred. The amended guidance is intended to result in more timely recognition of expected credit losses and enhance the accounting and disclosure of credit losses on financial assets. The ASU requires a cumulative-effect change to retained earnings (accumulated loss) in the period of adoption and prospective changes on previously recorded impairments, to the extent applicable.

As a result of losing EGC status as of December 31, 2021, and because ASU 2016-13 may only be adopted as of the beginning of a fiscal year, we adopted this ASU effective January 1, 2021 using a modified retrospective approach. We recognized a $1.0 million cumulative effect transition adjustment to beginning accumulated loss relating to $0.8 million for current expected credit losses on our premiums receivable and $0.2 million for current expected credit losses on our reinsurance recoverables. The adoption of the accounting guidance did not have a material impact on our available-for-sale securities.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or ASU 2016-02. The main provision of ASU 2016-02 requires the recognition of right-of-use lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The guidance also requires disclosures that meet the objective of enabling financial statement users to assess the amount, timing, and uncertainty of related cash flows. We adopted ASU 2016-02 on January 1, 2021.

We elected various practical expedients which include: not applying the amended lease accounting guidance to comparative periods; including the carry forward of our leases without reassessing whether any contracts are leases or contain leases, lease classification and initial direct costs; and excluding leases with a term of 12 months or less from lease liability and right-of-use asset recognition. We did not elect the hindsight practical expedient.

Our lease agreements contain lease components and non-lease components, both of which we have elected to account for as a single lease component for our real estate asset class. Operating lease expense for operating lease right-of-use assets is recognized on a straight-line basis over the lease term, which may include options to extend or terminate the lease when it is reasonably certain to do so and there is a significant economic incentive to exercise that option.

Upon adoption of ASU 2016-02, we recognized an operating lease liability of $16.2 million and corresponding right-of-use asset of $9.9 million, which includes the effect of $6.3 million from reclassifying previously recognized deferred rent and lease exit liabilities as an offset, in accordance with the transition guidance. These lease assets and liabilities are recorded as other assets and other liabilities on the condensed consolidated balance sheets. This transition adjustment was reflected as a non-cash transaction in our condensed consolidated statements of cash flows. The transition did not have a material impact on our results of operations, liquidity or debt covenant compliance under our debt agreements during the year. For additional information refer to Note 8, “Leases.”

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). The main provisions of ASU 2020-06 removes certain bifurcation models for convertible debt instruments and convertible preferred stock. Therefore, the embedded conversion feature no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in-capital. The amendment also removes certain settlement criteria that were required to be met in order for a contract to qualify for the derivative scope exception and to be classified as equity. In addition, the amendment expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share calculations that are impacted by the amendments. We elected to early adopt this update on January 1, 2021 using the modified retrospective approach. This adoption did not have a material impact on our consolidated financial statements.

INVESTMENTS

12 Months Ended

Dec. 31, 2021

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 December 31, 2021 and 2020 are as follows:



	2021
	Amortized Cost		Allowance for Expected Credit Losses(1)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
U.S. Treasury securities and agencies	$	23.7	$	—	$	—	$	(0.4)	$	23.3
Municipal securities	20.4		—		0.3		(0.1)		20.6
Corporate debt securities	48.2		—		0.7		(0.2)		48.7
Residential mortgage-backed securities	3.5		—		—		—		3.5
Commercial mortgage backed securities	30.2		—		0.2		(0.1)		30.3
Other debt obligations	3.5		—		—		—		3.5


Total	$	129.5	$	—	$	1.2	$	(0.8)	$	129.9

_______________

(1) We adopted ASU 2016-13 and the related amendments as of January 1, 2021. For additional information refer to Note 2, “Basis of Presentation and Summary of Significant Accounting Policies.”


	2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
U.S. Treasury securities and agencies	$	16.9	$	0.1	$	—	$	17.0
Municipal securities	22.6		0.8		—		23.4
Corporate debt securities	87.5		3.1		(0.1)		90.5
Residential mortgage-backed securities	7.8		—		—		7.8
Commercial mortgage backed securities	57.1		1.3		—		58.4
Other debt obligations	23.5		0.4		—		23.9
Total fixed maturities	215.4		5.7		(0.1)		221.0
Short-term investments	3.0		—		—		3.0
Total	$	218.4	$	5.7	$	(0.1)	$	224.0

Management reviewed the available-for-sale securities at each balance sheet date to consider whether it was necessary to recognize a credit loss as of December 31, 2021 or other-than-temporary impairment as of December 31, 2020 related to any of the above securities. We do not intend on selling the investments and it is not more likely than not that we will be required to sell the security before recovery. Management concluded that the available-for-sale securities’ unrealized losses were due to non-credit related factors and, therefore, there was no allowance for credit loss recognized for the year ended December 31, 2021 and no other-than-temporary impairments recognized for the year ended December 31, 2020.

Other Investments

As of December 31, 2021 and 2020, other investments related to our private equity investments were $4.7 million and $0.5 million, respectively. We recognized $3.8 million of unrealized gains in 2021 resulting from observable price changes within net investment income in our consolidated statements of operations and comprehensive loss. There were no realized gains or impairment losses recognized on these investments for the years ended December 31, 2021 and 2020.

The following tables reflect the gross unrealized losses and fair value of bonds, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2021 and 2020:


	2021
	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:
U.S. Treasury securities and agencies	$	7.5			$	(0.1)	$	14.0	$	(0.3)	$	21.5	$	(0.4)
Municipal securities	8.9				(0.1)		—		—		8.9		(0.1)
Corporate debt securities	12.7				(0.1)		1.6		(0.1)		14.3		(0.2)
Residential mortgage-backed securities	1.9				—		0.5		—		2.4		—
Commercial mortgage-backed securities	8.7				(0.1)		—		—		8.7		(0.1)

Total bonds	$	39.7			$	(0.4)	$	16.1	$	(0.4)	$	55.8	$	(0.8)

	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:
U.S. Treasury securities and agencies	$	15.7	$	—	$	—	$	—	$	—	$	15.7	$	—
Municipal securities	2.3				—		—		—		2.3		—
Corporate debt securities	2.9				(0.1)		—		—		2.9		(0.1)
Residential mortgage-backed securities	3.7				—		—		—		3.7		—
Commercial mortgage-backed securities	4.9				—		—		—		4.9		—
Other debt obligations	0.1				—		—		—		0.1		—
Total bonds	$	29.6			$	(0.1)	$	—	$	—	$	29.6	$	(0.1)

The following table reflects the gross and net realized gains and losses on short-term investments and fixed maturities that have been included in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
	(dollars in millions)
Realized gains on investments	$	2.5	$	0.5	$	—
Realized losses on investments	(0.1)		(0.2)		—
Net realized gains on investments	$	2.4	$	0.3	$	—

The following table sets forth the amortized cost and fair value of short-term investments and fixed maturity securities by contractual maturity at December 31, 2021:


	2021
	Amortized Cost		Fair Value
	(dollars in millions)
Due in one year or less	$	24.6	$	24.5
Due after one year through five years	83.5		83.9
Due five years through 10 years	7.8		7.8
Due after 10 years	13.6		13.7
Total	$	129.5	$	129.9

The following table sets forth the components of net investment income for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
	(dollars in millions)
Interest on bonds	$	2.4	$	4.2	$	1.8
Interest on deposits and cash equivalents	1.1		1.7		3.8
Other investments	3.8		—		—
Total	7.3		5.9		5.6
Investment expense	(2.3)		(0.5)		(0.4)
Net investment income	$	5.0	$	5.4	$	5.2

The following tables summarize the credit ratings of investments at December 31, 2021 and 2020


	December 31, 2021
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	70.9	$	70.8	54.5	%
AA+, AA, AA-, A-1	14.7		14.8		11.4
A+, A, A-	33.4		33.6		25.9
BBB+, BBB, BBB-	10.5		10.7		8.2
Total	$	129.5	$	129.9	100.0	%


	December 31, 2020
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	116.5	$	118.7	53.0	%
AA+, AA, AA-, A-1	22.7		23.3		10.4
A+, A, A-	57.5		59.4		26.5
BBB+, BBB, BBB-	21.7		22.6		10.1
Total	$	218.4	$	224.0	100.0	%

Pursuant to certain regulatory requirements, we are required to hold assets on deposit with various state insurance departments for the benefit of policyholders. These special deposits are included in fixed maturities available-for-sale on the consolidated balance sheets. As of December 31, 2021 and 2020, these required deposits had an amortized cost of $13.4 million and $12.8 million, respectively, and fair value of $13.8 million and $13.6 million, respectively.

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables provide information about our financial assets measured and reported at fair value as of December 31, 2021 and 2020:


	2021
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities and agencies	$	22.6	$	0.7	$	—	$	23.3
Municipal securities	—		20.6		—		20.6
Corporate debt securities	—		48.7		—		48.7
Residential mortgage-backed securities	—		3.5		—		3.5
Commercial mortgage-backed securities	—		30.3		—		30.3
Other debt obligations	—		3.5		—		3.5
Total fixed maturities	22.6		107.3		—		129.9

Cash equivalents	127.0		—		—		127.0
Total Assets at fair value	$	149.6	$	107.3	$	—	$	256.9

	2020
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities and agencies	$	17.0	$	—	$	—	$	17.0
Municipal securities	—		23.4		—		23.4
Corporate debt securities	—		90.5		—		90.5
Residential mortgage-backed securities	—		7.8		—		7.8
Commercial mortgage-backed securities	—		58.4		—		58.4
Other debt obligations	—		23.9		—		23.9
Total fixed maturities	17.0		204.0		—		221.0
Short-term investments	2.2		0.8		—		3.0
Cash equivalents	568.4		—		—		568.4
Total Assets at fair value	$	587.6	$	204.8	$	—	$	792.4

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

Private Equity Investments Measured at Fair Value on a Non-Recurring Basis

Private equity investments that have been remeasured during the period due to an observable event or impairment are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the investments we hold. See Note 3, “Investments,” for further information on our private equity investments.

Fair Value of Long-Term Debt

The carrying amount of long-term debt is recorded at historical amounts. The fair value of outstanding long-term debt as of December 31, 2020 was classified within Level 2 of the fair value hierarchy. The fair value was based on a model referencing observable interest rates and spreads to project and discount cash flows to present value. There was no outstanding long-term debt as of December 31, 2021, see Note 7, “Long-term Debt,” for further information. As of December 31, 2021 and 2020, the carrying amounts and fair values of these financial instruments were as follows:


	Carrying amount as of December 31, 2021		Estimated Fair Value as of December 31, 2021		Carrying amount as of December 31, 2020		Estimated Fair Value as of December 31, 2020
	(dollars in millions)
Long-term debt	$	—	$	—	$	188.2	$	209.0

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

- Definition

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

+ References + Details

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:


	2021		2020		2019
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	237.2	$	140.7	$	33.3
Reinsurance recoverable on unpaid losses	(79.6)		(18.9)		(11.4)
Net loss and LAE reserves, January 1	157.6		121.8		21.9
Net incurred loss and LAE related to:
Current year	405.9		341.9		312.6
Prior years	(13.6)		20.9		8.8
Total incurred	392.3		362.8		321.4
Net paid loss and LAE related to:
Current year	226.4		216.3		194.6
Prior years	82.8		110.7		26.9
Total paid	309.2		327.0		221.5
Net loss and LAE reserves, December 31	240.7		157.6		121.8
Plus reinsurance recoverable on unpaid losses	79.5		79.6		18.9
Gross loss and LAE reserves, December 31	$	320.2	$	237.2	$	140.7

Incurred losses and LAE attributable to prior accident years was a decrease of $13.6 million and an increase of $20.9 million and $8.8 million during 2021, 2020 and 2019, respectively.

The decrease to incurred losses for prior accident years in 2021 of approximately $13.6 million was primarily due to lower-than-expected reported losses on bodily injury claims, and higher than expected subrogation and salvage recoveries from accident year 2020 material damage claims. The year ended December 31, 2020 also included development of incurred losses related to accident years 2019 and prior as a result of a change in estimate. The adjustments recorded in the year ended December 31, 2020 were necessary in order to effectuate management’s best estimate for determining the estimated ultimate cost of settling claims using our knowledge and experience about past and current events and developments.

The increase to incurred losses for prior accident years in 2020 of approximately $20.9 million was primarily due to higher than estimated reported losses for bodily injury claims, as well as higher loss emergence on collision claims from prior accident years due to a slower cycle time for reported claims.

The increase to incurred losses for prior accident years in 2019 of approximately $8.8 million was primarily due to higher than estimated reported losses from bodily injury, uninsured and under-insured bodily injury, and property damage coverages.

The following table shows incurred and paid losses and allocated loss adjustment expenses, or ALAE, development by accident year for private passenger auto in aggregate, cumulative claim frequency is defined as the number of reported claims at the claim level which includes reported claims that do not result in a liability:


Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021		IBNR		Reported Claims(1)
			(dollars in millions)
2017	$	1.2	$	1.1	$	1.1	$	1.1	$	1.1	$	—	553
2018			42.3		48.3		49.6		48.7		0.4		18,105
2019					287.3		306.3		304.7		2.8		90,105
2020							295.9		287.7		10.6		117,028
2021									341.6		62.9		146,270
Total									$	983.8	$	76.7	372,061

Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021
			(dollars in millions)
2017	$	0.6	$	0.9	$	1.0	$	1.1	$	1.1
2018			20.6		44.6		48.1		48.1
2019					177.0		277.7		296.2
2020							182.0		238.5
2021									179.4
Total									$	763.3
Loss and ALAE reserves—net of reinsurance									$	220.5

_______________

(1) Reported by claim event.

The following table sets forth the reconciliation of the claims development tables to the balance sheet losses and ALAE reserves, with separate disclosure of unallocated LAE, or ULAE, and reinsurance recoverable on unpaid losses for the years ended December 31:


	2021		2020
	(dollars in millions)
Loss and ALAE reserves—net of reinsurance	$	220.5	$	144.0
ULAE reserves—net of reinsurance	20.2		13.6
Reinsurance recoverables on unpaid losses	79.5		79.6
Total loss and LAE reserves—gross of reinsurance	$	320.2	$	237.2

The following table sets forth the historical average annual percentage payout of incurred losses and ALAE (claims duration), net of reinsurance, as of December 31, 2021:


Year	1		2		3		4		5
Incremental Paid(1)	54.1	%	32.3	%	7.4	%	4.5	%	—	%

_______________

(1) Supplemental information and unauditedSTATUTORY FINANCIAL INFORMATIONRoot Insurance Company and Root Property & Casualty, or our insurance subsidiaries, are required to prepare statutory financial statements in conformity with the basis of accounting practices prescribed or permitted by the Ohio DOI and Delaware DOI, respectively. Ohio and Delaware have adopted the NAIC Accounting Practices and

Procedures Manual as the basis of their statutory accounting practices. Root Insurance Company and Root Property & Casualty maintained statutory capital and surplus as of December 31, 2021 and 2020 and had statutory net loss for the years ended December 31, 2021, 2020 and 2019 as follows:


	Statutory Net Loss						Statutory Capital and Surplus
	2021		2020		2019(1)		2021		2020
	(in millions)
Root Insurance Company	$	(126.9)	$	(123.8)	$	(157.6)	$	91.5	$	100.1
Root Property & Casualty	(33.4)		(25.5)		—		21.8		16.3
Total	$	(160.3)	$	(149.3)	$	(157.6)	$	113.3	$	116.4

_______________

(1) Root Property and Casualty was acquired during the year-ended December 31, 2020; as such, statutory net loss is not included in periods prior to the acquisition.

The payment of dividends by Root Insurance Company and Root Property & Casualty are subject to restrictions set forth in the insurance laws and regulations of the States of Ohio and Delaware, respectively, or the insurance laws. The insurance laws require domestic insurance companies to notify the supervisory superintendent, commissioner and/or director to seek prior regulatory approval to pay a dividend or distribute cash or other property if the fair market value thereof, together with that of other dividends or distributions made in the preceding twelve months, exceeds the greater of (1) 10% of statutory-basis policyholders' surplus as of the prior December 31st or (2) the statutory-basis net income of the insurer as of the prior December 31st. During the years ended December 31, 2021, 2020 and 2019, we did not pay any dividends.

The insurance laws also require domestic insurers to seek prior regulatory approval for any dividend paid from other than earned surplus. Earned surplus is defined under the insurance laws as the amount equal to our unassigned funds as set forth in its most recent statutory financial statements, including net unrealized capital gains and losses. Additionally, following any dividend, an insurers policyholder surplus must be reasonable in relation to the insurer's outstanding liabilities and adequate for its financial needs.

The NAIC Risk-Based Capital, or RBC, model law requires every insurer to calculate its total adjusted capital and RBC requirement to ensure insurer solvency. Regulatory guidelines provide for an insurance commissioner to intervene if the insurer experiences financial difficulty, as evidenced by a company's total adjusted capital falling below established relationships to required RBC. The model includes components for asset risk, underwriting risk, credit risk and other factors. The State of Ohio and the State of Delaware impose minimum RBC requirements that are developed by the NAIC. The formulas in the model for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, all of which require specified corrective action. The statutory surplus for Root Insurance Company and Root Property & Casualty exceeded the minimum RBC requirements for the years ended December 31, 2021 and 2020.

REINSURANCE

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

REINSURANCE

The following table reflects amounts affecting the consolidated balance sheets and statements of operations and comprehensive loss for reinsurance as of and for the years ended December 31:


	2021		2020		2019
	(dollars in millions)
Loss and LAE reserves:
Direct	$	313.2	$	237.2	$	140.7
Assumed	7.0		—		—
Ceded	(79.5)		(79.6)		(18.9)
Net loss and LAE reserves	$	240.7	$	157.6	$	121.8
Unearned premiums:
Direct	$	170.6	$	157.1	$	145.4
Assumed	9.5		—		—
Ceded	(100.8)		(112.8)		(17.4)
Net unearned premiums	$	79.3	$	44.3	$	128.0
Premiums written:
Direct	$	725.9	$	616.8	$	451.1
Assumed	16.7		—		—
Ceded	(397.3)		(378.0)		(82.3)
Net premiums written	$	345.3	$	238.8	$	368.8
Premiums earned:
Direct	$	712.3	$	605.2	$	352.9
Assumed	7.3		—		—
Ceded	(409.3)		(282.7)		(77.6)
Net premiums earned	$	310.3	$	322.5	$	275.3
Losses and LAE incurred:
Direct	$	683.9	$	557.6	$	395.0
Assumed	10.9		—		—
Ceded	(302.5)		(194.8)		(73.6)
Net losses and LAE incurred	$	392.3	$	362.8	$	321.4

If our reinsurance was cancelled at December 31, 2021 and 2020, the maximum amount of return ceded commissions due with the return of unearned premiums would have been $26.5 million and $27.2 million, respectively. Our reinsurance recoverable on unpaid losses gross of the provision for loss corridor, loss ratio caps and allowance for credit losses was $160.7 million and $109.1 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, we recorded a provision for sliding scale commission of zero and $8.1 million, respectively, in reinsurance premiums payable on the consolidated balance sheets. As of December 31, 2021 and 2020, a provision for loss corridor of $80.4 million and $29.5 million, respectively, was recorded as a contra-asset in reinsurance recoverable on the consolidated balance sheets.

GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUMGross written premium by state is as follows for the years ended December 31, 2021, 2020 and 2019:


	For the Years Ended December 31,
	2021				2020				2019
	Amount		% of Total		Amount		% of Total		Amount		% of Total
State	(dollars in millions)
Texas(1)	$	152.3	20.5	%	$	132.5	21.5	%	$	94.7	21.0	%
Georgia	79.2		10.7		72.4		11.7		44.0		9.8
Louisiana	42.2		5.7		28.0		4.5		15.3		3.4
Pennsylvania	39.8		5.4		30.2		4.9		25.2		5.6
Utah	33.8		4.6		26.0		4.2		17.6		3.9
Nevada	33.6		4.5		19.1		3.1		2.4		0.5
Colorado	33.5		4.5		20.2		3.3		8.1		1.8
South Carolina	26.3		3.5		9.6		1.6		14.4		3.2
Missouri	24.7		3.3		26.8		4.3		22.0		4.9
Arizona	23.5		3.2		28.4		4.6		26.7		5.9
All others states	253.7		34.1		223.6		36.3		180.7		40.0
Total	$	742.6	100.0	%	$	616.8	100.0	%	$	451.1	100.0	%

______________(1) Includes assumed premiums, which commenced during the year ended December 31, 2021. Assumed written premium for the year ended December 31, 2021 was $16.7 million.

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

LONG-TERM DEBT

LONG-TERM DEBTThe Term Loan A was a term loan with a group of syndicated financial institutions that matured on October 15, 2021. Interest was paid monthly and was determined on a floating interest rate calculated on the one-month LIBOR plus an applicable margin of 4%. As a part of the amended the Term Loan A, the syndicate committed, pro rata, to a $100 million revolving loan, which also expired on October 15, 2021. Commitment fees accrued at 0.50% per annum on the daily amount of unused revolving loan and was paid quarterly. For any amounts drawn on the revolving loan, interest accrued and was paid consistent with the Term Loan A. In addition, there was 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. Upon the maturity of Term Loan A, we repaid the outstanding Term Loan A principal balance of $98.8 million and accrued interest and fees of $0.2 million. We had no letters of credit outstanding or amounts drawn against the revolving loan on the date of termination.

The Term Loan B was a note we issued to a private equity investor that had a maturity date of November 25, 2024. We extinguished the Term Loan B on November 8, 2021. Interest was determined on a floating interest rate calculated on the three-month LIBOR plus an applicable margin of 10.5%. We paid interest pursuant to the terms of the loan agreement and had the option to pay-in-kind, or PIK, on the Term Loan B until October 15, 2021. PIK interest was added to the principal balance every three months until we no longer elected to PIK interest, at which point interest would be paid quarterly. We had elected to PIK interest on the Term Loan B from the original date of closing through October 15, 2021.

As a part of the Term Loan B, we issued warrants to purchase 2.8 million shares of our common stock with a strike price of $0.0001 per share and an expiration date of November 25, 2026. These warrants were classified as liabilities within long-term debt on the consolidated balance sheets because they could be settled with a variable number of our shares. Upon the completion of our IPO in 2020, all warrants were exercised and shares of Class B common stock were issued. As a result, the warrant liability was remeasured immediately prior to the IPO and reclassified to additional paid-in capital on our consolidated balance sheets. During the year ended December 31, 2021 and 2020, we recognized an adjustment of zero and $54.7 million, respectively, to the fair value of the warrants within interest expense of our consolidated statements of operations and comprehensive loss.

On November 8, 2021, we extinguished the Term Loan B for $120.9 million, consisting of $100.0 million principal balance and $20.9 million of accrued interest, including PIK interest, and fees. We also amortized the remaining unamortized discount and debt and warrant issuance costs, all of which resulted in a loss on early extinguishment of debt of $15.9 million that was recognized in our consolidated statements of operations and comprehensive loss for the year ended December 31, 2021.

The following summarizes the carrying value of long-term debt and warrants as of December 31, 2021 and 2020:


	2021		2020
	(dollars in millions)
Term Loan A	$	—	$	99.5
Term Loan B	—		100.0



Total	—		199.5

Accrued interest payable	—		10.2
Unamortized discount and debt and warrant issuance costs	—		(21.5)
Total	$	—	$	188.2

On January 26, 2022, we entered into a $300.0 million term loan, including the issuance of warrants, which matures on January 27, 2027. For further information, see Note 17, “Subsequent Events.”

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

We primarily have operating leases for offices that support our corporate, claims and customer service functions. We determine if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating lease right-of-use assets and corresponding operating lease liabilities are recognized upon the commencement date based primarily on the present value of lease payments over the lease term. We use the implicit rate of the lease, if it is readily determinable, in determining the present value of lease payments. Our leases

generally do not provide an implicit rate. Therefore, we use a collateralized incremental borrowing rate that incorporates information available at commencement date, including our company-specific interest rates from recent debt issuances, which we adjusted to obtain our company-specific interest rate risk. We also leverage commercial mortgage-backed securities, or CMBS, rates, for transactions with similar values, origination dates, geographies and property types as the respective lease, which are adjusted using linear interpolation if the lease term falls between the published CMBS terms. As of December 31, 2021, our leases had a weighted-average discount rate of 10.8%. Our leases have remaining lease terms from approximately one year up to approximately six years with a weighted-average remaining lease term of 4.4 years as of December 31, 2021.

As of December 31, 2021, we recognized an operating lease liability of $14.1 million and corresponding right-of-use asset of $5.1 million. Operating lease liabilities are included in other liabilities and operating lease right-of-use assets are included in other assets in our consolidated balance sheets. For the year ended December 31, 2021, we recognized operating lease costs of $5.0 million, inclusive of the Easton facility exit expense discussed below. Variable lease expense and short-term lease expense recognized during the year ended December 31, 2021 were not material. Moreover, we recognized operating cash flows paid for amounts included in the measurement of operating lease liabilities of $3.8 million.

We recently announced a new initiative that empowers employees to work where it works best on an individual level. Based on resulting feedback, we started evaluating office space needs and closed our Easton facility in Columbus, Ohio. Our Easton facility has no future economic benefit, so we determined the cease-use date occurred in December 2021. Accordingly, we accelerated the amortization of the remaining right-of-use asset and recognized $2.0 million of lease expense within general and administrative expenses in our consolidated statements of operations and comprehensive loss for the year ended December 31, 2021.

We also sublease certain office space, resulting in sublease income. Sublease income and the related assets and cash flows are not material to our consolidated financial statements as of and for the year ended December 31, 2021. Sublease income is recognized as a reduction to operating lease expense in our consolidated statements of operations and comprehensive loss.

Future lease payments as of December 31, 2021 were as follows:


	Operating Leases
	(dollars in millions)
2022	$	4.3
2023	4.4
2024	4.3
2025	1.5
2026	1.5
2027 and thereafter	1.6
Total future lease payments	17.6
Less: imputed interest	(3.5)
Total lease liabilities	$	14.1

As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020 under the prior lease accounting guidance, the following table summarizes, by remaining maturity, future commitments related to operating leases and other arrangements as of December 31, 2020:


	Operating Leases
	(dollars in millions)
2021	$	3.9
2022	4.4
2023	4.4
2024	4.3
2025	1.5
2026 and thereafter	3.1
Total	$	21.6

Base rent and related rent expenses were $4.8 million and $2.4 million for the years ended December 31, 2020 and 2019, respectively.

INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

We had no income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
	(dollars in millions)
Current:
Federal	$	—	$	—	$	—
State	—		—		—

Total current	—		—		—
Deferred:
Federal	—		—		—
State	—		—		—

Total deferred	—		—		—
Total income tax expense (benefit)	$	—	$	—	$	—

The income tax expense (benefit) differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% in 2021, 2020 and 2019 to pretax income as a result of the following:


	2021				2020				2019
	(dollars in millions)
Loss before income taxes	$	(521.1)			$	(363.0)			$	(282.4)
Statutory U.S. federal income tax benefit	(109.4)		21.0	%	(76.2)		21.0	%	(59.3)		21.0	%
Valuation allowance on deferred tax assets	116.7		(22.4)		61.5		(16.9)		57.4		(20.3)
Warrants fair value adjustment	—		—		11.5		(3.2)		—		—
Share-based compensation	(3.3)		0.6		5.0		(1.4)		1.7		(0.6)
Nondeductible compensation	1.8		(0.3)		—		—		—		—
State net operating loss	(4.9)		0.9		(3.1)		0.9		(2.2)		0.8
Other	(0.9)		0.2		1.3		(0.4)		2.4		(0.9)
Income tax expense (benefit)	$	—	—	%	$	—	—	%	$	—	—	%

The following table sets forth the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020:


	2021		2020
	(dollars in millions)
Deferred tax assets:
Unpaid losses and loss adjustment expenses	$	2.5	$	1.5
Unearned premium reserves	3.8		1.9
Nondeductible accruals	0.5		0.9
Deferred rent	2.0		1.4
Research and development credits	0.9		0.9
Disallowed interest carryforward	9.6		3.7
Bad debt expense	1.2		0.8

Excess ceding commission	2.2		—
Deferred compensation	2.5		1.4
Stock compensation	5.4		0.5
Other	2.6		0.6
State net operating loss carryforward	10.2		5.3
Net operating loss carryforward	217.4		124.1
Gross deferred assets	260.8		143.0
Less valuation allowance	(255.0)		(137.3)
Total deferred tax assets, less valuation allowance	5.8		5.7
Deferred tax liabilities:
Internally developed software	2.7		2.1
Fixed assets	2.2		1.9
Deferred acquisition costs	0.6		0.4
Unrealized gains	0.1		1.2
Other	0.2		0.1
Deferred tax liabilities	5.8		5.7
Net deferred tax asset	$	—	$	—

The above amounts were calculated in accordance with ASC 740, Income Taxes. The application of ASC 740 requires a company to evaluate the recoverability of deferred tax assets and to establish a valuation allowance if necessary to reduce the carrying value of the deferred tax asset to an amount which is more likely than not to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance we include many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) the timing of expected reversal; (4) taxable income in prior carry back years as well as projected taxable earnings exclusive of reversing temporary differences and carry forwards; (5) the length of time that carryovers can be used; (6) unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that we would employ to avoid a tax benefit expiring unused. Although lack of realization is not assured, we believe it is more likely than not that the deferred tax assets will not be realized. As such, a valuation allowance of $255.0 million has been established.

We have carryforwards related to net operating losses of $1,042.6 million, of which $496.1 million begin to expire in tax years 2035 through 2041, with the remaining $546.5 million carried forward indefinitely. We also have carryforwards for credits related to research and development costs of $0.9 million which expire between tax years 2036 through 2038, and state operating losses of $113.8 million which expire between tax years 2029 through 2041.

We file a consolidated federal income tax return and certain state income tax returns. Tax years 2018 and forward are still subject to U.S. federal examinations. The federal statute of limitations is generally three years. Currently all state income and franchise tax returns are within each taxing authorities statute of limitations and are still subject to examination.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 21
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
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-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

CAPITAL STOCK	12 Months Ended
CAPITAL STOCK	Dec. 31, 2021
Equity [Abstract]
Capital Stock	Capital Stock In October 2021, we issued redeemable convertible preferred stock to Carvana pursuant to the Investment Agreement. We received $126.5 million of gross proceeds from the issuance of 14.1 million shares of redeemable convertible preferred stock designated as the Series A Preferred Stock and issued Carvana eight tranches of warrants to purchase shares of the Company’s Class A common stock. Further details on the warrants are discussed in Note 11, "Share-Based Compensation." In connection with the Investment Agreement, we incurred issuance costs of $19.6 million, $9.0 million of which are contingent upon the success of the Investment Agreement as measured by achievement of certain warrant vesting milestones. We allocated the issuance costs between the preferred stock and the warrants based on their relative fair values. The warrants are recognized on a pro-rata basis considering Carvana’s progress toward achieving the milestones, and the allocated issuance costs are reclassified from other assets to contra-equity on that same pro-rata basis. As of December 31, 2021, issuance costs were recognized in our consolidated balance sheets as follows: $14.5 million as contra-redeemable convertible preferred stock; $1.0 million as contra-additional paid-in capital; and $4.1 million as other assets. The carrying value of our preferred stock was $112.0 million as of December 31, 2021. In October 2021, our Board of Directors approved the retirement of 4.6 million shares of Class A common stock that were held in treasury at $0.8 million. In October 2020, we completed our IPO, which resulted in the issuance and sale of 24.2 million shares of Class A 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 $57.5 million. All shares of our common stock and redeemable convertible preferred stock outstanding immediately prior to our IPO were converted into shares of our Class B common stock, and all warrants were exercised into shares of Class B common stock. In October 2020, our Board of Directors approved our amended and restated certificate of incorporation, which 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. As of December 31, 2021, the Company had issued and outstanding: 142.9 million shares of Class A common stock, 109.9 million shares of Class B common stock, and 14.1 million shares of preferred stock that had a redemption value of $126.5 million. The voting, dividend and liquidation rights of the holders of our Class A and Class B common stock are subject to and qualified by the rights, powers, and preferences of the holders of the preferred stock. Other rights, privileges, and preferences of our capital stock are as follows: Dividends—Class A and Class B common stock are entitled to the same dividend rights. We shall not declare, pay, or set aside any dividends on shares of any other class or series of capital stock unless the holders of the preferred stock then outstanding shall first receive, or simultaneously receive, a dividend. Beginning after the fifth anniversary of the Integrated Platform becoming available to customers, Series A Preferred Stockholders are entitled to receive, when, as and if declared by the Board of Directors, a dividend at an annual rate of 5% of the liquidation preference per share of Series A Preferred Stock, if our 90-day volume-weighted average price, or VWAP, per share of Class A common stock is below the conversion price at that time. Voting Rights—Our Class B common stock has ten votes per share and our Class A common stock has one vote per share. Holders of preferred stock are entitled to vote, together with the holders of Class A common stock and Class B common stock, on an as-converted basis on all matters submitted to a vote of the holders of Class A common stock and Class B common stock. Liquidation Preferences—In the event of any voluntary or involuntary liquidation, dissolution, or winding up of our business, after payment or provision for payment of the debts and other liabilities of the Company, the holders of Series A Preferred Stock are entitled to receive, before any distribution out of the assets of the Company may be made to or set aside for the holders of any common stock, an amount per share equal to the greater of (i) $9.00 per share plus the amount of any accrued but unpaid dividends thereon as of such date and (ii) the amount such preferred stockholders would have received had they, immediately prior to such an event, converted such shares of Series A Preferred Stock into Class A common stock. Thereafter, holders of Class A and Class B common stock are entitled to any remaining proceeds on a pro-rata basis. Class A and Class B common stock are entitled to the same liquidation rights. Conversion and Transfer—Each share of Class B common stock is convertible at any time into one share of Class A common stock. Future transfers by holders of our Class B common stock will generally result in those shares converting into shares of our Class A common stock, subject to limited exceptions, such as certain transfers effected for tax or estate planning purposes. Series A Preferred Stock shall be convertible, at the option of the holder thereof, at any time, or from time to time, into shares of Class A common stock at a conversion rate equal to the liquidation preference divided by the conversion price. As of December 31, 2021, the conversion price was $9.00 per share and the Series A Preferred Stock was convertible into 14.1 million shares of Class A common stock. To the extent that such conversion would cause the holder to hold in excess of 9.9% of the voting stock, such conversion would be subject to approval from (a) the Delaware Insurance Commissioner and (b) the Ohio Director of Insurance. Redemption and Balance Sheet Classification—The redeemable convertible preferred stock is classified as mezzanine equity because while it is not mandatorily redeemable, it will become convertible or redeemable at the option of the preferred stockholder in connection with any change of control of the Company, which is considered not solely within our control.

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

2020 Equity Incentive Plan

We maintain an equity incentive plan, the 2020 Equity Incentive Plan, or the 2020 Plan, for the issuance and grant of equity awards (restricted stock, RSUs, and incentive and nonqualified stock options) to our officers, directors, employees and certain advisors. As of December 31, 2021, the number of shares authorized under the 2020 Plan was 53.8 million Class A common shares, inclusive of available shares previously reserved for issuance under the 2015 Equity Incentive Plan, or the 2015 Plan, and subject to increase for awards previously issued under the 2015 Plan which are forfeited or lapse unexercised. In addition, this reserve will automatically increase on January 1 of each year, which commenced on January 1, 2021 and will end 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. However, the Board 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 shares. 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. As of December 31, 2021, the number of shares available for issuance under the 2020 Plan was 21.9 million.

In October 2020, our Board of Directors adopted and our stockholders approved the 2020 Employee Stock Purchase Plan, or 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.

2015 Equity Incentive Plan

In 2015, the Board of Directors of the Company adopted the 2015 Plan under which the Company could grant equity awards (restricted stock, and incentive and nonqualified stock options) to its officers, directors, employees and certain advisors. In October 2020, this plan was superseded by the 2020 Plan and all reserved shares under the 2015 Plan were transferred to the 2020 Plan.

Warrants

As part of the Investment Agreement discussed in Note 10, “Capital Stock,” we issued Carvana eight tranches of warrants, comprised of three tranches of “short-term warrants” and five tranches of “long-term warrants.” However, the exercisability of certain tranches are subject to Carvana’s decision to exercise certain other tranches. If Carvana exercises short-term tranches, then long-term tranche 1 warrants are cancelled and the remaining long-term tranches would be reduced such that Carvana will have the opportunity to purchase a maximum of 129.1 million shares of Class A common stock.

As of December 31, 2021, we determined that all short-term warrants were probable of vesting. Under that scenario, it is not a possible outcome for the long-term warrants to also vest, so they are considered not probable of vesting. We recognized $8.8 million of warrant compensation expense related to these equity-classified warrants based on progress toward completing the Integrated Platform. This expense is included in sales and marketing of our consolidated statements of operations and comprehensive loss. All of these warrants are out-of-the-money and therefore have no intrinsic value as of December 31, 2021.

The short-term warrants will expire three years following the earlier of the date of completion of the Integrated Platform and 18 months following closing of the Investment Agreement, such earlier date, the Reference Date, and the long-term warrants will expire five years after the Reference Date. The following table provides other key terms of the warrants:



Warrants	Exercise Price		Shares Issued (in millions)	Grant Date Fair Value per Share		Vesting Condition
Short-Term
Tranche 1	$	10.00	42.6	$	0.42	Completing the Integrated Platform
Tranche 2	$	11.00	57.8	$	0.37	50,000 policy originations
Tranche 3	$	12.00	28.7	$	0.18	75,000 policy originations
Total Short-Term			129.1

Long-Term
Tranche 1	$	10.00	25.8	$	0.42	100,000 policy originations
Tranche 2	$	12.50	26.9	$	0.35	200,000 policy originations
Tranche 3	$	15.00	27.1	$	0.24	300,000 policy originations
Tranche 4	$	22.50	26.1	$	0.09	400,000 policy originations
Tranche 5	$	30.00	23.2	$	0.04	500,000 policy originations
Total Long-Term			129.1

The fair value of the warrants is estimated on the date of grant using a Monte Carlo simulation with Geometric Brownian Motion that uses certain inputs, assumptions and estimates, as follows: expected term of five years, based on the contractual term of the warrants; risk-free interest rate of 0.9%, based on U.S. Constant Maturity Yield Curve over a similar term; dividend rate of 0.0%, based on our historical and expected future dividend payouts, which may be subject to change in the future; and volatility of 45%, based on historical and implied volatility of comparable

publicly held companies, because we did not have sufficient company-specific volatility at the time of grant, and other factors.

Employee Share-Based Compensation

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


	Years Ended December 31,
	2021		2020		2019
	(dollars in millions)
Share-based compensation expense:
Loss and loss adjustment expenses	$	1.5	$	0.6	$	—
Sales and marketing	1.0		1.0		—
Other insurance expense (benefit)	1.6		1.0		—
Technology and development	4.5		5.8		—
General and administrative	10.7		20.4		10.0
Total share-based compensation expense	$	19.3	$	28.8	$	10.0

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


	Years Ended December 31,
	2021		2020		2019
	(dollars in millions)
Share-based compensation expense:
Restricted stock unit expense	$	14.9	$	0.6	$	—
Stock option expense	4.4		28.2		10.0
Total share-based compensation expense	$	19.3	$	28.8	$	10.0

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. In February 2019, a similar tender offer by another investor was completed. As a result, we recognized $25.1 million and $8.6 million of share-based compensation expense related to these tender offers during the years ended December 31, 2020 and 2019, respectively.

As of December 31, 2021, there was $4.8 million, $35.7 million and $66.1 million of unrecognized compensation cost related to unvested stock options, warrants and RSUs, respectively. The remaining costs are expected to be recognized over a period of five years for unvested stocks options, two years for warrants and four years for RSUs.

Restricted Stock Units

A summary of RSU activity for the year ended December 31, 2021 is as follows:


Restricted Stock Units	Number of Shares	Weighted-Average Grant Date Fair Value per Share		Aggregate Intrinsic Value
	(in millions, except exercise price)
Nonvested at January 1, 2020	—	$	—	$	—
Granted	0.4	17.72
Vested	—	7.25		0.3
Forfeited, expired or canceled	—	22.89
Nonvested at December 31, 2020	0.4	18.41		$	6.2
Granted	12.2	9.17
Vested	(0.1)	18.09		1.0
Forfeited, expired or canceled	(3.6)	10.24
Nonvested at December 31, 2021	8.9	$	9.02	$	27.4

Stock Options

A summary of option activity for the years ended December 31, 2021 and 2020 is as follows:


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 at January 1, 2020	12.3	$	1.42	8.22	$	70.4
Granted	1.6	7.76
Exercised	(2.8)	0.70			41.5
Forfeited, expired or canceled	(0.7)	5.00
Outstanding at December 31, 2020	10.4	$	2.39	7.75	$	137.7
Granted	—	10.82
Exercised	(2.8)	1.68			24.1
Forfeited, expired or canceled	(1.1)	4.44
Outstanding at December 31, 2021	6.5	2.36		6.12	$	9.5

A summary of total options outstanding and exercisable at December 31, 2021:


	Options Outstanding and Exercisable
Options	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in Years)
	(in millions, except exercise price and term amounts)
Range of Exercise Prices:
$0.01 - $1.00	2.7	$	0.30	4.76
$1.00 - $2.50	2.8	$	2.40	7.20
$2.50 - $13.00	1.0	$	7.67	6.86

The 2020 Plan permits the optionee to early exercise options 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 2020 and 2015 Plans allow us to repurchase the shares, at our option, at the exercise price of the

award. The repurchase feature is used to incentivize 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 December 31, 2021 and 2020, the early exercise deposit liability was $0.1 million and $1.3 million, respectively, and is included in other liabilities on the consolidated balance sheets.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

During the normal course of business, we enter into various agreements to purchase services, primarily data and information technology based services, that are enforceable and legally binding. Certain supply contracts contain penalty provisions for early termination, in addition to variable costs that are based on volume and usage. We do not expect to incur penalty payments under these provisions that would materially affect our financial position, results of operations or cash flows.

The following table summarizes, by remaining maturity, future commitments related to other arrangements as of December 31, 2021:


	Purchase Obligations
	(dollars in millions)
2022	$	8.1
2023	4.8
2024	0.9
2025	0.6
2026 and thereafter	—
Total	$	14.4

From time to time, we are party to litigation and legal proceedings relating to our business operations. Except as disclosed below, we do not believe that we are party to any current or pending legal action that could reasonably be expected to have a material adverse effect on our financial condition or results of operations and cash flow.

On March 19, 2021, a purported class action complaint was filed against the Company and certain of its current officers and directors in the U.S. District Court for the Southern District of Ohio (Case No. 2:21-cv-01197) on behalf of certain Root shareholders. The complaint alleges that defendants made false or misleading statements and omissions of purportedly material fact, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and of Sections 11 and 15 of the Securities Act of 1933, in connection with and following the Company’s IPO. The complaint seeks unspecified damages. The Company believes that the claims in this lawsuit are without merit and intends to defend against them vigorously. The lawsuit is in the early stages and, at this time, we are unable to predict the outcome and we cannot estimate the likelihood or magnitude of our possible or potential loss contingency.

We are contingently liable for possible future assessments under regulatory requirements for insolvencies and impairments of unaffiliated insurance companies.

OTHER COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

OTHER COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents the changes in our accumulated other comprehensive income, or AOCI, for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
	(dollars in millions)

Accumulated other comprehensive income beginning balance	$	5.6	$	0.6	$	—
Other comprehensive (loss) income before reclassifications	(2.8)		5.3		0.6
Net realized gains on investments reclassified from AOCI to net loss	(2.4)		(0.3)		—
Net current period other comprehensive (loss) income	(5.2)		5.0		0.6
Accumulated other comprehensive income ending balance	$	0.4	$	5.6	$	0.6

LOSS PER SHARE

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

LOSS PER SHARE

The following table displays the computation of basic and diluted loss per share for both Class A and Class B common stock for the years ended December 31, 2021, 2020 and 2019:


	For the Years Ended December 31,
	2021		2020		2019
	(in millions, except per share amounts)
Net loss	$	(521.1)	$	(363.0)	$	(282.4)
Weighted-average common shares outstanding: basic and diluted (both Class A and B)	249.2		75.5		33.9
Loss per common share: basic and diluted (both Class A and B)	$	(2.09)	$	(4.81)	$	(8.33)

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


	As of December 31,
	2021	2020	2019
	(in millions)
Options to purchase common stock	6.5	10.4	12.3
Nonvested shares subject to repurchase	2.2	5.0	7.2
Restricted stock units	8.9	0.4	—
Redeemable convertible preferred stock (as converted to common stock)	14.1	—	158.9
Warrants to purchase common stock(1)	129.1	—	—
Warrants to purchase redeemable convertible preferred stock (as converted to common stock)	—	—	0.6
Total	160.8	15.8	179.0

_______________

(1) Warrants outstanding as of December 31, 2021 would result in a maximum of 129.1 million shares of Class A common stock, if they vest and are fully exercised by Carvana for cash.

STATUTORY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

STATUTORY FINANCIAL INFORMATION

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:


	2021		2020		2019
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	237.2	$	140.7	$	33.3
Reinsurance recoverable on unpaid losses	(79.6)		(18.9)		(11.4)
Net loss and LAE reserves, January 1	157.6		121.8		21.9
Net incurred loss and LAE related to:
Current year	405.9		341.9		312.6
Prior years	(13.6)		20.9		8.8
Total incurred	392.3		362.8		321.4
Net paid loss and LAE related to:
Current year	226.4		216.3		194.6
Prior years	82.8		110.7		26.9
Total paid	309.2		327.0		221.5
Net loss and LAE reserves, December 31	240.7		157.6		121.8
Plus reinsurance recoverable on unpaid losses	79.5		79.6		18.9
Gross loss and LAE reserves, December 31	$	320.2	$	237.2	$	140.7

Incurred losses and LAE attributable to prior accident years was a decrease of $13.6 million and an increase of $20.9 million and $8.8 million during 2021, 2020 and 2019, respectively.


Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021		IBNR		Reported Claims(1)
			(dollars in millions)
2017	$	1.2	$	1.1	$	1.1	$	1.1	$	1.1	$	—	553
2018			42.3		48.3		49.6		48.7		0.4		18,105
2019					287.3		306.3		304.7		2.8		90,105
2020							295.9		287.7		10.6		117,028
2021									341.6		62.9		146,270
Total									$	983.8	$	76.7	372,061

Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021
			(dollars in millions)
2017	$	0.6	$	0.9	$	1.0	$	1.1	$	1.1
2018			20.6		44.6		48.1		48.1
2019					177.0		277.7		296.2
2020							182.0		238.5
2021									179.4
Total									$	763.3
Loss and ALAE reserves—net of reinsurance									$	220.5

_______________

(1) Reported by claim event.


	2021		2020
	(dollars in millions)
Loss and ALAE reserves—net of reinsurance	$	220.5	$	144.0
ULAE reserves—net of reinsurance	20.2		13.6
Reinsurance recoverables on unpaid losses	79.5		79.6
Total loss and LAE reserves—gross of reinsurance	$	320.2	$	237.2

The following table sets forth the historical average annual percentage payout of incurred losses and ALAE (claims duration), net of reinsurance, as of December 31, 2021:


Year	1		2		3		4		5
Incremental Paid(1)	54.1	%	32.3	%	7.4	%	4.5	%	—	%

_______________


	Statutory Net Loss						Statutory Capital and Surplus
	2021		2020		2019(1)		2021		2020
	(in millions)
Root Insurance Company	$	(126.9)	$	(123.8)	$	(157.6)	$	91.5	$	100.1
Root Property & Casualty	(33.4)		(25.5)		—		21.8		16.3
Total	$	(160.3)	$	(149.3)	$	(157.6)	$	113.3	$	116.4

_______________

(1) Root Property and Casualty was acquired during the year-ended December 31, 2020; as such, statutory net loss is not included in periods prior to the acquisition.

GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUM

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUM

REINSURANCE

The following table reflects amounts affecting the consolidated balance sheets and statements of operations and comprehensive loss for reinsurance as of and for the years ended December 31:


	2021		2020		2019
	(dollars in millions)
Loss and LAE reserves:
Direct	$	313.2	$	237.2	$	140.7
Assumed	7.0		—		—
Ceded	(79.5)		(79.6)		(18.9)
Net loss and LAE reserves	$	240.7	$	157.6	$	121.8
Unearned premiums:
Direct	$	170.6	$	157.1	$	145.4
Assumed	9.5		—		—
Ceded	(100.8)		(112.8)		(17.4)
Net unearned premiums	$	79.3	$	44.3	$	128.0
Premiums written:
Direct	$	725.9	$	616.8	$	451.1
Assumed	16.7		—		—
Ceded	(397.3)		(378.0)		(82.3)
Net premiums written	$	345.3	$	238.8	$	368.8
Premiums earned:
Direct	$	712.3	$	605.2	$	352.9
Assumed	7.3		—		—
Ceded	(409.3)		(282.7)		(77.6)
Net premiums earned	$	310.3	$	322.5	$	275.3
Losses and LAE incurred:
Direct	$	683.9	$	557.6	$	395.0
Assumed	10.9		—		—
Ceded	(302.5)		(194.8)		(73.6)
Net losses and LAE incurred	$	392.3	$	362.8	$	321.4

GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUMGross written premium by state is as follows for the years ended December 31, 2021, 2020 and 2019:


	For the Years Ended December 31,
	2021				2020				2019
	Amount		% of Total		Amount		% of Total		Amount		% of Total
State	(dollars in millions)
Texas(1)	$	152.3	20.5	%	$	132.5	21.5	%	$	94.7	21.0	%
Georgia	79.2		10.7		72.4		11.7		44.0		9.8
Louisiana	42.2		5.7		28.0		4.5		15.3		3.4
Pennsylvania	39.8		5.4		30.2		4.9		25.2		5.6
Utah	33.8		4.6		26.0		4.2		17.6		3.9
Nevada	33.6		4.5		19.1		3.1		2.4		0.5
Colorado	33.5		4.5		20.2		3.3		8.1		1.8
South Carolina	26.3		3.5		9.6		1.6		14.4		3.2
Missouri	24.7		3.3		26.8		4.3		22.0		4.9
Arizona	23.5		3.2		28.4		4.6		26.7		5.9
All others states	253.7		34.1		223.6		36.3		180.7		40.0
Total	$	742.6	100.0	%	$	616.8	100.0	%	$	451.1	100.0	%

______________(1) Includes assumed premiums, which commenced during the year ended December 31, 2021. Assumed written premium for the year ended December 31, 2021 was $16.7 million.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS In January 2022, we entered into a $300.0 million five-year term loan with BlackRock. In connection with this term loan, we incurred debt discount and issuance costs of approximately $15.2 million. Interest equal to SOFR plus 9.0% plus 0.26161% per annum is payable quarterly, in cash. As part of the loan agreement, BlackRock received warrants to purchase 5.7 million shares of Class A common stock at $9.00 per share. Such warrants will expire on the later of the repayment in full of the term loan and January 27, 2027. Under certain contingent scenarios, BlackRock may also receive additional warrants to purchase shares of Class A common stock equal to 1.0% of the aggregate number of issued and outstanding shares of our common stock on a fully-diluted basis as of the triggering date. The additional warrants, if issued, would have an exercise price equal to the 30-trading day volume weighted average price as of the trading day immediately prior to the triggering date. The additional warrants will expire on the later of the repayment in full of the term loan, January 27, 2027 and the date that falls 12 months after the issuance of these warrants. On January 20, 2022, in response to inflation and loss cost trends and to further drive efficiency and increased focus on our strategic priorities, we instituted an organizational realignment, including an involuntary workforce reduction affecting approximately 330 employees, which represented approximately 20% of our workforce. The majority of the reduction was driven by optimizing certain sales and claims departments, especially claims support staff in first notice of loss. These departments saw a reduced workload that corresponded with the strategic reduction in marketing spend and lower claims volume in the second half of the year. A majority of the affected employees were notified on January 20, 2022, with most job eliminations effective in January 2022. In the first quarter of 2022, we have recognized charges of $6.8 million for severance, benefits and related costs as a result of these actions, of which $4.3 million of these charges are expected to result in cash expenditures. Additionally, we expect to incur real estate exit costs comprising accelerated amortization of certain right of use assets and related leasehold improvements and furniture and fixtures of approximately $2.4 million. We continue to review the potential impact of the realignment, including additional facility lease exits and employee-related costs, and are unable to estimate any additional restructuring costs or charges at this time.

Schedule II: Condensed Combined Financial Information of Registrant

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Schedule II: Condensed Combined Financial Information of Registrant


ROOT, INC. and CARET HOLDINGS, INC.
Schedule II: Condensed Combined Financial Information of Registrant
Balance Sheets (Parent Company)
(in millions, except par value)
	As of December 31,
	2021		2020
Assets
Other investments	$	4.7	$	0.5
Cash and cash equivalents	432.3		1,043.1
Restricted cash	1.0		1.0
Investments in subsidiaries	—		115.0




Other assets	49.3		34.6
Intercompany receivable	261.8		43.3
Total Assets	$	749.1	$	1,237.5
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Liabilities:


Long-term debt and warrants	$	—	$	188.2

Investments in subsidiaries	58.5		—
Accounts payable and accrued expenses	8.8		8.2
Other liabilities	24.5		8.7
Intercompany payable	8.9		—
Total liabilities	100.7		205.1
Commitments and Contingencies
Redeemable convertible preferred stock, $0.0001 par value, 14.1 and zero shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively (liquidation preference of $126.5 and zero, respectively)	112.0		—
Stockholders’ equity:
Class A common stock, $0.0001 par value, 142.9 and 59.4 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively	—		—
Class B common stock, $0.0001 par value, 109.9 and 192.2 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively	—		—
Treasury stock, at cost	—		(0.8)
Additional paid-in capital	1,806.1		1,775.6
Accumulated other comprehensive income	0.4		5.6
Accumulated loss	(1,270.1)		(748.0)
Total stockholders’ equity	536.4		1,032.4
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	$	749.1	$	1,237.5

See Notes to Condensed Combined Financial Statements


ROOT, INC. and CARET HOLDINGS, INC.
Schedule II: Condensed Combined Financial Information of Registrant
Statements of Operations and Comprehensive Loss (Parent Company)
(in millions)
	For the Years Ended December 31,
	2021		2020		2019
Revenue:
Net investment income	$	4.6	$	0.9	$	1.6
Total revenue	4.6		0.9		1.6
Operating expenses:
Sales and marketing	10.0		—		—
Other insurance expense	2.9		—		—
Technology and development	42.5		19.5		3.5
General and administrative	5.3		37.8		15.7
Total operating expenses	60.7		57.3		19.2
Operating loss	(56.1)		(56.4)		(17.6)
Interest expense	(20.0)		(77.7)		(22.3)
Loss on early extinguishment of debt	(15.9)		—		—
Loss before income tax expense	(92.0)		(134.1)		(39.9)
Income tax expense	—		—		—
Net loss before equity net loss of subsidiaries	(92.0)		(134.1)		(39.9)
Net loss of subsidiaries	(429.1)		(228.9)		(242.5)
Net loss	(521.1)		(363.0)		(282.4)
Other comprehensive (loss) income:
Other comprehensive (loss) income of subsidiaries	(5.2)		5.0		0.6
Comprehensive loss	$	(526.3)	$	(358.0)	$	(281.8)

See Notes to Condensed Combined Financial Statements


ROOT, INC. and CARET HOLDINGS, INC.
Schedule II: Condensed Combined Financial Information of Registrant
Statements of Cash Flows (Parent Company)
(in millions)
	For the Years Ended December 31,
	2021		2020		2019
Cash flows from operating activities:
Net loss	$	(521.1)	$	(363.0)	$	(282.4)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	19.3		3.7		1.4
Warrant compensation expense	8.8		—		—
Tender offer	—		25.1		8.6
Depreciation and amortization, net	13.1		11.8		3.5

Change in equity in subsidiaries	429.1		228.9		242.5
Loss on early extinguishment of debt	15.9		—		—
SAFE fair value adjustment	—		—		11.2
Warrants fair value adjustment	—		54.7		—
Paid-in kind interest expense	10.6		9.1		0.8
Paid-in-kind interest paid	(20.5)		—		—
Change in fair value of equity securities	(3.8)		—		—
Changes in operating assets and liabilities:




Other assets	4.2		(15.5)		(1.2)



Accounts payable and accrued expenses	0.4		3.8		4.9
Other liabilities	(3.5)		2.1		0.6
Intercompany, net	(209.6)		(23.6)		(7.2)
Net cash used in operating activities	(257.1)		(62.9)		(17.3)
Cash flows from investing activities:
Purchases of investments	(0.4)		(0.5)		—
Proceeds from maturities, call and pay downs of fixed maturities available-for-sale	—		—		1.7
Capitalization of internally developed software	(6.6)		(5.4)		(3.9)
Purchases of fixed assets	(4.6)		(1.8)		(6.5)
Investment in subsidiaries	(261.8)		(201.9)		(333.0)
Net cash used in investing activities	(273.4)		(209.6)		(341.7)
Cash flows from financing activities:
Proceeds from issuance of common stock from IPO and concurrent private placements, net of issuance cost	—		1,098.1		—
Proceeds from exercise of stock options and restricted stock units, net of tax proceeds/(withholding)	3.2		2.1		1.9
Proceeds from issuance of preferred stock and related warrants	126.5		—		349.6
Payment of preferred stock and related warrants issuance costs	(10.5)		—		—
Proceeds from debt and warrants issuance, net of issuance cost	—		12.0		189.5
Repayments of long-term debt	(199.5)		(13.5)		(15.5)
Proceeds from SAFE	—		—		10.0

Purchases of treasury stock	—		(0.2)		—
Net cash (used in) provided by financing activities	(80.3)		1,098.5		535.5
Net (decrease) increase in cash and cash equivalents	(610.8)		826.0		176.5
Cash, cash equivalents and restricted cash at beginning of year	1,044.1		218.1		41.6
Cash, cash equivalents and restricted cash at end of year	$	433.3	$	1,044.1	$	218.1

See Notes to Condensed Combined Financial Statements

ROOT, INC. and CARET HOLDINGS, INC.

Notes to Condensed Combined Financial Statements (Parent Company)

1. Business

Caret Holdings, Inc. is a holding company which was formed in 2015 to develop and launch a direct-to-consumer personal automobile insurance and mobile technology company. In August 2019 a new holding company, Root, Inc. was formed, which became the parent of Caret Holdings, Inc. and maintains 100% ownership of Caret Holdings, Inc.

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Combination—The condensed combined financial statements include the accounts of Root, Inc. and its wholly owned subsidiary, Caret Holdings, Inc., and are prepared in accordance with accounting principles generally accepted in the United States. All intercompany accounts and transactions have been eliminated. These financial statements have been combined in order to present comparative parent company financial statements for 2021, 2020 and 2019 and should be read in conjunction with our consolidated financial statements.

Use of Estimates—The preparation of condensed combined 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 condensed financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Statement of Cash Flows—The supplemental disclosures for cash and non-cash flows for the years ended December 31, 2021, 2020 and 2019 are as follows:


	2021		2020		2019
	(in millions)
Supplemental disclosures:
Interest paid	$	23.9	$	4.5	$	4.3
Federal income taxes paid	—		—		—
Leasehold improvements - non-cash	1.5		—		1.5
Conversion of debt to preferred stock - non-cash	—		—		11.2
Conversion of preferred stock to common stock - non-cash	—		560.4		—
Conversion of warrants to common stock - non-cash	—		75.0		—
Lease liabilities arising from obtaining right-of-use asset	9.9		—		—
Carvana investment agreement issuance costs - non-cash	9.1		—		—
Purchases of treasury stock - non-cash	—		0.5		—

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed combined balance sheets that sum to the total of the same such amount in the condensed combined statements of cash flows:


	2021		2020
	(in millions)
Cash and cash equivalents	$	432.3	$	1,043.1
Restricted cash	1.0		1.0
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	433.3	$	1,044.1

Investments in Subsidiaries—As of December 31, 2021, Caret Holdings, Inc had a negative investment in subsidiaries balance of $58.5 million primarily related to accumulated losses from subsidiaries. In accordance with applicable accounting guidance, we reclassified the negative investment in subsidiaries balance to the liabilities section of our combined balance sheet.

3. Guarantees

Root, Inc. entered into an agreement with the Superintendent of Insurance, State of Ohio, (the “Superintendent”) guaranteeing that Root Insurance Company will maintain certain capital and surplus requirements or risk-based capital levels, whichever is greater, and such additional surplus as the Superintendent requires. The guarantee remains in effect until such time as the Superintendent may release Root, Inc. in writing.

4. Subsequent Events

In January 2022, we entered into a $300.0 million five-year term loan with BlackRock. In connection with this term loan, we incurred debt discount and issuance costs of approximately $15.2 million. Interest equal to SOFR plus 9.0% plus 0.26161% per annum is payable quarterly, in cash. As part of the loan agreement, BlackRock received warrants to purchase 5.7 million shares of Class A common stock at $9.00 per share. Such warrants will expire on the later of the repayment in full of the term loan and January 27, 2027. Under certain contingent scenarios, BlackRock may also receive additional warrants to purchase shares of Class A common stock equal to 1.0% of the aggregate number of issued and outstanding shares of our common stock on a fully-diluted basis as of the triggering date. The additional warrants, if issued, would have an exercise price equal to the 30-trading day volume weighted average price as of the trading day immediately prior to the triggering date. The additional warrants will expire on the later of the repayment in full of the term loan, January 27, 2027 and the date that falls 12 months after the issuance of these warrants.

On January 20, 2022, in response to inflation and loss cost trends and to further drive efficiency and increased focus on our strategic priorities, we instituted an organizational realignment, including an involuntary workforce reduction affecting approximately 330 employees, which represented approximately 20% of our workforce. The majority of the reduction was driven by optimizing certain sales and claims departments, especially claims support staff in first notice of loss. These departments saw a reduced workload that corresponded with the strategic reduction in marketing spend and lower claims volume in the second half of the year. A majority of the affected employees were notified on January 20, 2022, with most job eliminations effective in January 2022.In the first quarter of 2022, we have recognized charges of $6.8 million for severance, benefits and related costs as a result of these actions, of which $4.3 million of these charges are expected to result in cash expenditures. Additionally, we expect to incur real estate exit costs comprising accelerated amortization of certain right of use assets and related leasehold improvements and furniture and fixtures of approximately $2.4 million. We continue to review the potential impact of the realignment, including additional facility lease exits and employee-related costs, and are unable to estimate any additional restructuring costs or charges at this time.

Schedule V: Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule V: Valuation and Qualifying Accounts


ROOT, INC. AND SUBSIDIARIES
Schedule V: Valuation and Qualifying Accounts
For the Years Ended December 31, 2021, 2020 and 2019 (in millions)

			Additions
	Balance at beginning of period		Charged to costs and expenses		Charge to other accounts(1)		Deductions		Balance at end of period
Year Ended December 31, 2019
Valuation allowance for deferred tax assets	$	19.4	$	57.4	$	—	$	—	$	76.8
Allowance for premium receivables	$	—	$	9.0	$	—	$	(7.0)	$	2.0

Year Ended December 31, 2020
Valuation allowance for deferred tax assets	$	76.8	$	61.5	$	(1.0)	$	—	$	137.3
Allowance for premium receivables	$	2.0	$	23.6	$	—	$	(22.1)	$	3.5

Year Ended December 31, 2021
Valuation allowance for deferred tax assets	$	137.3	$	116.7	$	1.0	$	—	$	255.0
Allowance for premium receivables	$	3.5	$	20.9	$	0.8	$	(19.8)	$	5.4
Allowance for reinsurance recoverables	$	—	$	—	$	0.2	$	—	$	0.2

______________(1) We adopted ASU 2016-13 and the related amendments as of January 1, 2021. We recognized a $1.0 million cumulative effect transition adjustment to beginning accumulated loss relating to $0.8 million for current expected credit losses on our premium receivable and $0.2 million for current expected credit losses on our reinsurance recoverable.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and Consolidation—The 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.
Consolidation	To conform to the current year presentation, certain prior year amounts have been reclassified.
Use of Estimates	Use of Estimates—The preparation of 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 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 consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, or LAE, premium write-offs, fair value of warrants, intangible asset impairment and valuation allowance for income taxes.
Debt and Equity Issuance Costs	Debt and Equity Issuance Costs—Debt and equity issuance costs, which primarily consist of advisor, legal, accounting, and other third-party fees directly related to issuing debt and equity instruments, are capitalized as other assets in our consolidated balance sheets as incurred. We incurred such costs in connection with our investment agreement we entered into with Carvana on August 21, 2021, or the Investment Agreement, and term loan agreement. Upon close of the related transaction, these deferred issuance costs are generally offset against the related proceeds. Debt issuance costs are subsequently amortized over the term of the financing agreement as interest expense on the consolidated statements of operations and comprehensive loss.
Asset Acquisition	We accounted for the acquisition of Root Property & Casualty as an asset acquisition because substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets (the insurance licenses) and the acquisition of Root Property & Casualty did not include an input and a substantive process that together significantly contribute to the ability to create outputs and therefore does not meet the definition of a business under GAAP. Accordingly, we recognized the acquired assets at fair value as of the acquisition date, with transaction costs allocated to the insurance license indefinite-lived intangible assets.
Indefinite-Lived Intangible Assets	Indefinite-Lived Intangible Assets—In connection with the acquisition of Root Property & Casualty, we recognized insurance licenses of $8.9 million, including transaction costs, as of December 31, 2021 and 2020 in other assets in our consolidated balance sheets. We incur a minimal fee to renew each license. These intangible assets are not amortized, but instead are tested for impairment annually or when indicators of impairment exist. The impairment test for indefinite-lived intangibles involves first assessing qualitative factors to determine if it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If so, then a quantitative test is performed to compare the estimated fair value of the indefinite-lived intangible asset to the respective asset's carrying amount. The evaluation requires the use of estimates and significant judgments and considers the weight of evidence and significance of all identified events and circumstances and most relevant drivers of fair value, both positive and negative, in determining whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. No impairment was recognized for 2021 or 2020.
Segment Information	Segment Information—Our chief operating decision maker is the Chief Executive Officer. The chief operating decision maker manages operations, allocates resources, and evaluates financial performance on a company-wide basis. We operate in one reporting segment providing direct-to-consumer insurance products to customers.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash—Cash consists of cash on deposit. Cash equivalents are short-term, highly liquid investments that mature within three months from the date of origination and are principally stated at amortized cost, which approximates their fair value. Restricted cash consists of amounts held by a financial institution to satisfy letter of credit requirements for certain property leases.
Book Overdraft	Book Overdraft—If checks are issued in excess of the amount of cash on hand, a book overdraft shall be reclassified to accounts payable on the consolidated balance sheets. When a check is issued whereby a disbursement account is used to write the check, but the account is not funded until the check is presented for payment this "negative cash" balance is included in cash and cash equivalents on the consolidated balance sheets, if the funding account has sufficient funds.
Investments	Investments—Investments in debt securities are classified as short-term and available-for-sale securities and are carried at fair value with any unrealized gains and losses, net of taxes, recorded as a component of accumulated other comprehensive income. Management regularly reviews our securities for signs of impairment, an assessment requiring significant management judgment. Beginning with our adoption of Financial Accounting Standards Board, or FASB, Accounting Standard Update, or ASU, No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments as of January 1, 2021, the criteria that management considers are the financial condition of the issuer, including receipt of scheduled principal and interest cash flows, fair value of a security that has fallen below the amortized value, maturity dates, current economic conditions and intent to sell, including if it is more likely than not that we will be required to sell the security before recovery. We then assess whether the decline in value is due to non-credit related or credit related factors. Non-credit related declines in market value are recorded as unrealized losses in accumulated other comprehensive income. If we determine that the decline is credit related, we establish an allowance for credit losses equal to the difference between the discounted cash flow model and the amortized value, which is recorded in net realized gains (losses) on investments in our consolidated statements of operations and comprehensive loss. This allowance may be subsequently adjusted for recoveries or further credit losses. Prior to January 1, 2021, we were under an incurred loss model whereby we reviewed our securities for signs of other than temporary impairment. The criteria were similar to those noted above, except we also considered the length of time a security was in an unrealized loss position. When a debt security was determined to have an other than temporary impairment, the impairment charge was separated into an amount representing the credit loss, which would be recognized in earnings as a realized loss and the amount related to non-credit factors, which would be recognized in other comprehensive income. Subsequent recoveries of other than temporary impairment were not recognized. No such credit losses were recognized in 2021, nor were there other than temporary impairments recognized in 2020 or 2019. Other investments primarily consist of private equity investments without a readily determinable fair value. We elected to account for these investments at cost minus any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. Such changes are accounted for within net investment income on our consolidated statements of operations and comprehensive loss. We also invest in Low Income Housing Tax Credits, or LIHTC, projects by way of investing in a limited liability entity to offset Georgia premium taxes. The purpose of these investments is to encourage private capital investments into regions within Georgia that are in need of economic development, while providing tax credits and operating loss tax benefits to investors. We account for this investment using the cost method because our interest in the limited liability entity is so minor that we have virtually no influence over the entity’s operating and financial policies. When we utilize the tax credits, the associated investment becomes impaired. Impairment of the investment is recognized within net investment income in our consolidated statements of operations and comprehensive loss.
Fair Value Measurements	Fair Value Measurements—Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are: Level 1 - Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices in active markets for identical assets and liabilities. Level 2 - Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data. Level 3 - Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.
Premiums Earned	Premiums, Premiums Receivable and Premium Write-offs—Premiums written are deferred and earned pro rata over the policy period. Unearned premium is established to cover the unexpired portion of premiums written. A premium deficiency, as measured on a gross basis, is recorded when the sum of expected losses, LAE, unamortized acquisition costs and maintenance costs exceed the recorded unearned premium reserve and anticipated investment income. A premium deficiency reserve is recognized as a reduction of deferred acquisition costs and, if necessary, by accruing an additional liability for the deficiency, with a corresponding charge to operations. We did not record a premium deficiency reserve in 2021, 2020 or 2019. In August 2021, we commenced a fronting arrangement with an unaffiliated Texas county mutual insurance company, or the fronting carrier. We route all of our new auto policies, and, over time, expect to route certain renewal auto policies, in Texas through the fronting carrier whereby we assume 100% of the related premium and losses on those policies. The fronting arrangement allows us to have greater rating and underwriting flexibility. Premiums assumed are deferred and earned pro rata over the policy period. Unearned premium is established to cover the unexpired portion of premiums assumed.
Premiums Receivable	Premiums receivable represents premiums written but not yet collected. Generally, premiums are collected prior to providing risk coverage, minimizing our exposure to credit risk. Due to a variety of factors, certain premiums billed may not be collected, for which we establish an allowance for doubtful accounts based primarily on an analysis of historical collection experience, adjusted for current economic conditions.
Premium Write-offs	A policy is considered past due on the first day after its due date and policies greater than 90 days past due are written-off.
Fee and Other Income	Fee Income—Fee income consists of the flat fee we charge to those policyholders who pay premiums on an installment basis. The fee relates to the additional administrative costs associated with processing more frequent billings. We recognize this fee income in the period in which we process each installment. Other Income—Other income primarily comprises revenue earned from distributing website and app policy inquiry leads in geographies where we do not have a presence, recognized when we generate the lead; commissions earned for homeowners policies placed with third-party insurance companies where we have no exposure to the insured risk, recognized on the effective date of the associated policy; and sale of enterprise technology products to provide telematics-based data collection and trip tracking, recognized ratably as the service is performed.
Sales and Marketing	Sales and Marketing—Sales and marketing expenses includes spend related to performance and embedded channels, channel media, advertising, branding, public relations, consumer insights and referral fees. These expenses also include related employee costs including salaries, health benefits, bonuses, employee retirement plan related expenses and employee share-based compensation expense, or Personnel Costs, and overhead allocated based on headcount, or Overhead. It also includes warrant compensation expense related to our embedded channel. We incur sales and marketing expenses for all product offerings. Sales and marketing costs are expensed as incurred.General and Administrative—General and administrative expenses primarily relate to external professional service expenses; Personnel Costs and Overhead for corporate functions; and depreciation expense for computers, furniture and other fixed assets. General and administrative expenses are expensed as incurred.
Other Insurance Expense (Benefit)	Other Insurance Expense (Benefit)—Other insurance expense (benefit) includes underwriting expenses, credit card and policy processing expenses, premium write-offs, insurance license expenses, and Personnel Costs and Overhead related to actuarial and certain data science activities. Other insurance expense (benefit) also includes amortization of deferred acquisition costs like premium taxes and report costs related to the successful acquisition of a policy. Other insurance expense (benefit) 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 (benefit).
Technology and development	Technology and development—Technology and development expense consists of software development costs related to our mobile app and homegrown information technology systems; third-party services related to infrastructure support; Personnel Costs and Overhead for engineering, product, technology, and certain data science activities; and amortization of internally developed software. Technology and development is expensed as incurred, except for development and testing costs related to internally developed software that are capitalized and subsequently amortized over the expected useful life.
General and Administrative	Sales and Marketing—Sales and marketing expenses includes spend related to performance and embedded channels, channel media, advertising, branding, public relations, consumer insights and referral fees. These expenses also include related employee costs including salaries, health benefits, bonuses, employee retirement plan related expenses and employee share-based compensation expense, or Personnel Costs, and overhead allocated based on headcount, or Overhead. It also includes warrant compensation expense related to our embedded channel. We incur sales and marketing expenses for all product offerings. Sales and marketing costs are expensed as incurred.General and Administrative—General and administrative expenses primarily relate to external professional service expenses; Personnel Costs and Overhead for corporate functions; and depreciation expense for computers, furniture and other fixed assets. General and administrative expenses are expensed as incurred.
Policy Acquisition Costs	Policy Acquisition Costs—Acquisition costs consist primarily of premium taxes, certain marketing costs and underwriting expenses, and fronting carrier commissions, net of ceding commissions, related to the successful acquisition of new or renewal business. They are deferred and amortized over the same period in which the related premiums are earned. Ceding commissions relating to reinsurance agreements are recorded as a reimbursement for both deferrable and non-deferrable acquisition costs. The portion of the ceding commission that is equal to the pro rata share of acquisition costs based on quota share percentage is recorded as an offset to the gross deferred acquisition costs. Any portion of the ceding commission that exceeds the acquisition costs of the business ceded is recorded as excess ceding commission, a deferred liability, and amortized over the same period in which the related premiums are earned. Deferred acquisition costs, net of accumulated amortization, was $2.8 million and $1.7 million as of December 31, 2021 and 2020, respectively.
Loss and Loss Adjustment Expense and Reserves	Loss and Loss Adjustment Expense and Reserves—Loss and LAE reserves include an amount determined using adjuster determined case-base estimates for reported claims and actuarial determined unpaid claim estimates using past experience and historical emergence patterns for unreported losses and LAE. These reserves are a liability established to cover the estimated ultimate cost to settle insured losses. The estimation of the liability for loss and LAE reserves is complex and includes subjective considerations and management’s judgement. The actuarial methods to determine unpaid loss estimates consider loss trends, contract interpretation, mix of business, regulatory environment, economic conditions, inflation and other risk factors impacting claims settlement. The method used to estimate unpaid LAE liability is based on claims transaction data, including the relative cost of adjusting and settling a range of claim types from express material damage claims to more complex injury cases. There is considerable uncertainty associated with the actuarial estimates, and therefore no assurance can be made that the ultimate unpaid claim liability will not vary materially from such estimates. These loss estimates are continually reviewed by management and adjusted as necessary, with adjustments included in the period determined and recorded in loss and LAE on our consolidated statements of operations and comprehensive loss. As such, loss and LAE reserves represent management’s best estimate of the ultimate liability related to reported and unreported claims. Our loss and LAE reserves are recorded gross of reinsurance and net of amounts expected to be received from salvage (the amount recovered from a total loss claims expense) and subrogation (the right to recover payments from third parties). Loss and LAE is recorded net of amounts ceded to reinsurers. We enter into reinsurance contracts to limit our exposure to potential losses as well as to provide additional capacity for growth. These expenses are a function of the size and term of the insurance policies we write and the loss experience associated with the underlying risks. Loss and LAE may be paid out over a period of years. Various other expenses incurred during claims processing are allocated to LAE. These amounts include claims Personnel Costs, software expense, internally developed software amortization, and Overhead.
Reinsurance	Reinsurance—In the ordinary course of business, we cede and retrocede a portion of our business written and assumed, respectively, to reinsurers to limit the maximum net loss potential arising from large risks and catastrophes. These arrangements, known as treaties, provide for reinsurance coverage on quota-share and excess-of-loss basis. All reinsurance contracts provide for indemnification against loss or liability relating to insurance risk and have been accounted for as reinsurance. Although the ceding of reinsurance does not discharge us from our primary liability to the policyholder, the insurance company that assumes the coverage assumes the related liability. Amounts recoverable from and payable to reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business. Reinsurance premiums, commissions and expense reimbursements related to reinsured business are accounted for on a basis consistent with the basis used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of premiums earned and are recognized over the remaining policy period based on the reinsurance protection provided. Amounts applicable to reinsurance ceded for unearned premium reserves are reported as a prepaid reinsurance premiums asset in the accompanying consolidated balance sheets and as reduction of unearned premiums in Note 6, “Reinsurance.” Ceding commissions received in connection with reinsurance ceded have been accounted for as a reduction of other insurance (benefit) expense in the consolidated statements of operations and comprehensive loss. Some of our reinsurance agreements provide for adjustment of commissions or amount of coverage based on loss experience. We recognize the asset or liability arising from these adjustable features in the period the adjustment occurs, which is calculated based on experience to-date under the agreement. In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, we would be liable for such defaulted amounts. We evaluate and monitor the financial condition associated with our reinsurers in order to minimize our exposure to significant losses from reinsurer insolvencies. We obtain our reinsurance from a diverse group of reinsurers and monitor concentration as well as financial strength ratings of the reinsurers to minimize counterparty credit risk. To recognize this risk of credit loss, we have established an allowance for credit losses based on the probability of default and the expected loss given default as influenced by factors such as the reinsurer’s credit rating and average life of our reinsurance recoverables. Allowance for credit losses was $0.2 million and zero as of December 31, 2021 and 2020, respectively.
Income Taxes	Income Taxes—For the 2021 tax year, Root, Inc. will file a consolidated federal income tax return with Caret Holdings, Inc., Root Insurance Company, Root Property & Casualty, Root Lone Star Insurance Agency, Inc, and Root Reinsurance Company, Ltd. The consolidated return also includes Root Insurance Agency, LLC, Root Enterprise, LLC and Root Scout, LLC, which are disregarded entities under Caret Holdings, Inc. for federal income tax purposes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent that there is sufficient positive evidence, as allowed under the Accounting Standard Codification, or ASC, 740, Income Taxes, to support the recoverability of those deferred tax assets. We establish a valuation allowance to the extent that there is insufficient evidence to support the recoverability of the deferred tax asset under ASC 740. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. If it is determined that the deferred tax assets would be realizable in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. A valuation allowance of $255.0 million and $137.3 million was established as of December 31, 2021 and 2020, respectively. Further details are discussed in Note 9, "Income Taxes."We recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained under examination by the appropriate taxing authority. Interest and penalties on our reserve for uncertain tax positions are recognized as a component of tax expense.
Internally Developed Software	Internally Developed Software—We review our software development activity and capitalize costs during the application development phase under ASC 350-40, Internal-Use Software. These costs are amortized on a straight-line basis over a five-year period. Internally developed software costs are assessed for impairment at least quarterly, which also ensures that the assets are still in service. If there are assets identified as no longer in use, the remaining unamortized costs will be fully amortized.
Fixed Assets	Fixed Assets—Fixed Assets are carried at cost, net of accumulated depreciation. We capitalize purchases of fixed assets with costs greater than $1,000, including computers, furniture, and leasehold improvements. Depreciation on computers and furniture is recognized on a straight-line basis over a useful life of three years and five years, respectively. Depreciation on leasehold improvements is recognized on a straight-line basis over the shorter of their useful life or the life of the lease. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.
Employee Share-Based Compensation	Employee Share-Based Compensation—We award share-based compensation, including stock options with only a service condition, stock options with service and performance conditions, restricted stock units, or RSUs, and restricted stock, to our officers, directors, employees, and certain advisors through approval from the Compensation Committee of the Board of Directors. We have also granted warrants to purchase shares of the Company’s Class A common stock to Carvana, which vest based upon achievement of certain performance conditions. Share-based compensation expense is recognized based on the grant date fair value of the awards, which is determined using the Black-Scholes Merton, or BSM, option-pricing model. The BSM option pricing model requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the options, the risk-free interest rate for a period that approximates the expected term of the option, and our expected dividend yield. The fair value of common stock underlying the stock options, restricted stock and RSUs granted before our initial public offering, or IPO, had historically been determined by our Board of Directors, with input from management, and considering third-party valuations of our common stock. Because there had been no public market for our common stock, our Board of Directors had determined its fair value at the time of grant of the pre-IPO option by considering a number of objective and subjective factors, including financing investment rounds, operating and financial performance, the lack of liquidity of share capital and general and industry specific economic outlook, among other factors. Our Board of Directors determined the fair value of common stock based on valuations performed using the Option Pricing Method and the Probability Weighted Expected Return Method subject to relevant facts and circumstances. In connection with our IPO, our common stock became listed on the Nasdaq Global Select Market and we use these market prices for the fair value of our common shares. Stock options are generally exercisable for a period up to ten years from the grant date. We recognize forfeitures as they occur, which generally results in the reversal of previously recognized expense for nonvested awards. In the event of an involuntary termination that results in the cancellation of an award, the remaining unrecognized compensation cost for the entire award is recognized in the period of cancellation. If the award is cancelled and concurrently replaced upon termination, it follows modification accounting, typically as a Type III improbable-to-probable modification whereby it is effectively treated as a forfeiture and new grant as of the date of termination. Stock options with only a service condition generally vest over four years - 25% cliff vests after one year and approximately 2% vests each month over three years thereafter. Stock options with service and performance conditions generally vest ratably over a four-year period assuming achievement of the performance conditions. The compensation expense associated with nonvested stock options that have performance conditions is dependent on our periodic assessment of the probability of the performance conditions being achieved. If deemed probable, we recognize compensation expense on a straight-line basis over the requisite service period. If a performance condition is no longer probable of achievement, any previously recognized compensation expense is reversed and no subsequent compensation expense is recognized until achievement is once again probable, at which point a cumulative catch-up is recognized. RSUs generally vest over four years - 25% cliff vests after one year and approximately 2% vests each month over three years thereafter. Certain other RSUs vest in accordance with one of the following patterns: over four years - 25% cliff vests after one year and in equal increments quarterly over three years thereafter, over four years in equal quarterly increments, or fully cliff vest after one year. We generally recognize share-based compensation expense ratably over the respective vesting period. Warrant Compensation—In October 2021, we closed the Investment Agreement with the Carvana Group, LLC, or Carvana, that included the issuance of 14.1 million shares of redeemable convertible preferred stock designated as the Series A Convertible Preferred Stock and the issuance of eight tranches of warrants to purchase shares of the Company’s Class A common stock. As part of the investment agreement, we and Carvana also entered into a five-year commercial agreement whereby our auto insurance products will be embedded into Carvana’s online car buying platform, or Integrated Platform. The commercial agreement provides for agent commissions payable to Carvana for policy origination and an enterprise total loss replacement vehicle solution. The Carvana warrants compensation expense is recognized based on the grant date fair value of the award, which was determined using a Monte Carlo simulation in a risk-neutral framework, as contemplated in the Income Approach of valuation. Specifically, future equity is simulated in each period assuming a Geometric Brownian Motion. We considered the features of the warrants and the interdependency of exercise decisions between the Short-Term Warrants and the Long-Term Warrants in using the Monte Carlo simulation in order to determine the optimum exercise decision. The optimum exercise decision was made by choosing the option which would give the highest aggregate expected value to the holder in each of the 100,000 simulated paths. The payoff of each path is then calculated based on the simulated equity and discounted back to time zero using the applicable risk-free rates. The fair value of the warrants are then calculated as the average value from all simulation paths. Employing a Monte Carlo simulation with Geometric Brownian Motion requires a range of inputs for each uncertain variable, and establishing linkage between the assumptions, if necessary. Inputs and assumptions used in our analysis included our stock price at grant date, exercise prices, the term of the warrants, equity volatility, risk-free rate and dividend yield. Additional considerations included a discount for lack of marketability resulting from Carvana’s five-year lock-up period. These warrants vest as the parties’ develop an integrated automobile insurance solution for Carvana’s online car buying platform, or the Integrated Platform, and insurance sales through the Integrated Platform. The associated compensation expense is dependent on our periodic assessment of the probability of the milestones being achieved. If deemed probable, we recognize compensation expense on a pro-rata basis considering progress toward achieving the milestones. If a performance condition is no longer probable of achievement, any previously recognized compensation expense is reversed and no subsequent compensation expense is recognized until achievement is once again probable, at which point a cumulative catch-up is recognized. In determining the classification as equity, we followed guidance issued within FASB ASC 480, Distinguishing Liabilities from Equity, and FASB ASC 815, Derivatives and Hedging.
Net Loss Per Share	Net Loss Per Share—Net loss per share, or EPS, results are a key indicator of the overall performance relative to each share of our outstanding common stock. Basic EPS share for both Class A and Class B common stock is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares vested and outstanding during the period. In addition to common shares outstanding, the computation of basic EPS includes instruments for which the holder is deemed to have the present rights to share in current period earnings (loss) with common stockholders. Accordingly, the warrants issued in connection with our Term Loan B were included in the 2020 and 2019 weighted-average number of common shares outstanding because they had an insignificant exercise price of $0.0001 per share and were therefore considered outstanding common shares for computation of basic EPS. Diluted EPS for both Class A and Class B common stock includes all the components of basic EPS, plus the dilutive effect of common stock equivalents, but excludes those common stock equivalents from the calculation of diluted EPS when the effect of inclusion, assessed individually, would be anti-dilutive. Notable dilutive securities relevant to our operations are stock options, performance stock options, nonvested shares subject to repurchase, restricted stock units, warrants and redeemable convertible preferred stock. We have operated at a loss for the years ended December 31, 2021, 2020 and 2019. Therefore, the conversion of common stock equivalents would increase the denominator of the EPS calculation and create a lower loss per share. Therefore, these common stock equivalents are considered antidilutive and diluted EPS is equal to basic EPS. Losses are allocated equally between both classes of common stock because they are entitled to the same liquidation and dividend rights.
Recently Adopted Accounting Pronouncements and Registrant Filing Status	Recently Adopted Accounting Pronouncements and Registrant Filing Status—Prior to December 31, 2021, we qualified as an “emerging growth company,” or EGC, under the Jumpstart Our Business Startups Act of 2012, or JOBS Act. We previously elected to adopt certain new or revised accounting guidance within the same time period as private companies as permitted by our status as an EGC. We became a large accelerated filer on December 31, 2021, and lost our status as an EGC. Accordingly, we will follow the adoption criteria of public companies for new accounting pronouncements beginning with this Annual Report on Form 10-K. Prior to this Annual Report on Form 10-K, our financial statements did not reflect adoption of certain amended guidance that public companies generally may have been required to adopt, but we were not required to adopt based on our EGC status. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends previous guidance on the impairment measurement of financial assets, including reinsurance recoverables, available-for-sale securities, and premium receivables, by requiring an entity to recognize an allowance for expected credit losses as a contra asset, rather than impairment as losses are incurred. The amended guidance is intended to result in more timely recognition of expected credit losses and enhance the accounting and disclosure of credit losses on financial assets. The ASU requires a cumulative-effect change to retained earnings (accumulated loss) in the period of adoption and prospective changes on previously recorded impairments, to the extent applicable. As a result of losing EGC status as of December 31, 2021, and because ASU 2016-13 may only be adopted as of the beginning of a fiscal year, we adopted this ASU effective January 1, 2021 using a modified retrospective approach. We recognized a $1.0 million cumulative effect transition adjustment to beginning accumulated loss relating to $0.8 million for current expected credit losses on our premiums receivable and $0.2 million for current expected credit losses on our reinsurance recoverables. The adoption of the accounting guidance did not have a material impact on our available-for-sale securities. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or ASU 2016-02. The main provision of ASU 2016-02 requires the recognition of right-of-use lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The guidance also requires disclosures that meet the objective of enabling financial statement users to assess the amount, timing, and uncertainty of related cash flows. We adopted ASU 2016-02 on January 1, 2021. We elected various practical expedients which include: not applying the amended lease accounting guidance to comparative periods; including the carry forward of our leases without reassessing whether any contracts are leases or contain leases, lease classification and initial direct costs; and excluding leases with a term of 12 months or less from lease liability and right-of-use asset recognition. We did not elect the hindsight practical expedient. Our lease agreements contain lease components and non-lease components, both of which we have elected to account for as a single lease component for our real estate asset class. Operating lease expense for operating lease right-of-use assets is recognized on a straight-line basis over the lease term, which may include options to extend or terminate the lease when it is reasonably certain to do so and there is a significant economic incentive to exercise that option. Upon adoption of ASU 2016-02, we recognized an operating lease liability of $16.2 million and corresponding right-of-use asset of $9.9 million, which includes the effect of $6.3 million from reclassifying previously recognized deferred rent and lease exit liabilities as an offset, in accordance with the transition guidance. These lease assets and liabilities are recorded as other assets and other liabilities on the condensed consolidated balance sheets. This transition adjustment was reflected as a non-cash transaction in our condensed consolidated statements of cash flows. The transition did not have a material impact on our results of operations, liquidity or debt covenant compliance under our debt agreements during the year. For additional information refer to Note 8, “Leases.” In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). The main provisions of ASU 2020-06 removes certain bifurcation models for convertible debt instruments and convertible preferred stock. Therefore, the embedded conversion feature no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in-capital. The amendment also removes certain settlement criteria that were required to be met in order for a contract to qualify for the derivative scope exception and to be classified as equity. In addition, the amendment expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share calculations that are impacted by the amendments. We elected to early adopt this update on January 1, 2021 using the modified retrospective approach. This adoption did not have a material impact on our consolidated financial statements.

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

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of capitalized computer software

The capitalized cost and accumulated amortization of internally developed software at December 31, 2021 and 2020 are as follows:


	2021		2020
	(dollars in millions)
Internally developed software	$	20.5	$	13.9
Accumulated amortization	(8.0)		(4.3)
Internally developed software, net	$	12.5	$	9.6

Schedule of fixed assets

The capitalized cost and accumulated depreciation of fixed assets at December 31, 2021 and 2020 are as follows:


	2021		2020
	(dollars in millions)
Computers	$	7.0	$	4.5
Furniture	3.4		3.4
Leasehold improvements	9.8		6.3
Total fixed assets, at cost	$	20.2	$	14.2
Accumulated depreciation	(9.9)		(5.3)
Fixed assets, net	$	10.3	$	8.9

Schedule of supplemental disclosures

The supplemental disclosures for cash and non-cash flows for the years ended December 31, 2021, 2020 and 2019 are as follows:


	2021		2020		2019
	(in millions)
Supplemental disclosures:
Interest paid	$	23.9	$	4.5	$	4.3
Federal income taxes paid	—		—		—
Leasehold improvements - non-cash	1.5		—		1.5
Conversion of debt to preferred stock - non-cash	—		—		11.2
Conversion of preferred stock to common stock - non-cash	—		560.4		—
Conversion of warrants to common stock - non-cash	—		75.0		—
Lease liabilities arising from obtaining right-of-use asset	9.9		—		—
Investment Agreement issuance costs - non-cash	9.1		—		—
Purchases of treasury stock - non-cash	—		0.5		—

Schedule of cash and cash equivalents


	2021		2020
	(in millions)
Cash and cash equivalents	$	706.0	$	1,112.8
Restricted cash	1.0		1.0
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	707.0	$	1,113.8

Schedule of cash and cash equvalents


	2021		2020
	(in millions)
Cash and cash equivalents	$	706.0	$	1,112.8
Restricted cash	1.0		1.0
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	707.0	$	1,113.8

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of AFS debt securities

The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at December 31, 2021 and 2020 are as follows:



	2021
	Amortized Cost		Allowance for Expected Credit Losses(1)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
U.S. Treasury securities and agencies	$	23.7	$	—	$	—	$	(0.4)	$	23.3
Municipal securities	20.4		—		0.3		(0.1)		20.6
Corporate debt securities	48.2		—		0.7		(0.2)		48.7
Residential mortgage-backed securities	3.5		—		—		—		3.5
Commercial mortgage backed securities	30.2		—		0.2		(0.1)		30.3
Other debt obligations	3.5		—		—		—		3.5


Total	$	129.5	$	—	$	1.2	$	(0.8)	$	129.9

_______________

(1) We adopted ASU 2016-13 and the related amendments as of January 1, 2021. For additional information refer to Note 2, “Basis of Presentation and Summary of Significant Accounting Policies.”


	2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
U.S. Treasury securities and agencies	$	16.9	$	0.1	$	—	$	17.0
Municipal securities	22.6		0.8		—		23.4
Corporate debt securities	87.5		3.1		(0.1)		90.5
Residential mortgage-backed securities	7.8		—		—		7.8
Commercial mortgage backed securities	57.1		1.3		—		58.4
Other debt obligations	23.5		0.4		—		23.9
Total fixed maturities	215.4		5.7		(0.1)		221.0
Short-term investments	3.0		—		—		3.0
Total	$	218.4	$	5.7	$	(0.1)	$	224.0


	2021		2020		2019
	(dollars in millions)
Realized gains on investments	$	2.5	$	0.5	$	—
Realized losses on investments	(0.1)		(0.2)		—
Net realized gains on investments	$	2.4	$	0.3	$	—

The following table sets forth the amortized cost and fair value of short-term investments and fixed maturity securities by contractual maturity at December 31, 2021:


	2021
	Amortized Cost		Fair Value
	(dollars in millions)
Due in one year or less	$	24.6	$	24.5
Due after one year through five years	83.5		83.9
Due five years through 10 years	7.8		7.8
Due after 10 years	13.6		13.7
Total	$	129.5	$	129.9

Schedule of unrealized losses


	2021
	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:
U.S. Treasury securities and agencies	$	7.5			$	(0.1)	$	14.0	$	(0.3)	$	21.5	$	(0.4)
Municipal securities	8.9				(0.1)		—		—		8.9		(0.1)
Corporate debt securities	12.7				(0.1)		1.6		(0.1)		14.3		(0.2)
Residential mortgage-backed securities	1.9				—		0.5		—		2.4		—
Commercial mortgage-backed securities	8.7				(0.1)		—		—		8.7		(0.1)

Total bonds	$	39.7			$	(0.4)	$	16.1	$	(0.4)	$	55.8	$	(0.8)

	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:
U.S. Treasury securities and agencies	$	15.7	$	—	$	—	$	—	$	—	$	15.7	$	—
Municipal securities	2.3				—		—		—		2.3		—
Corporate debt securities	2.9				(0.1)		—		—		2.9		(0.1)
Residential mortgage-backed securities	3.7				—		—		—		3.7		—
Commercial mortgage-backed securities	4.9				—		—		—		4.9		—
Other debt obligations	0.1				—		—		—		0.1		—
Total bonds	$	29.6			$	(0.1)	$	—	$	—	$	29.6	$	(0.1)

Schedule of net investment income

The following table sets forth the components of net investment income for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
	(dollars in millions)
Interest on bonds	$	2.4	$	4.2	$	1.8
Interest on deposits and cash equivalents	1.1		1.7		3.8
Other investments	3.8		—		—
Total	7.3		5.9		5.6
Investment expense	(2.3)		(0.5)		(0.4)
Net investment income	$	5.0	$	5.4	$	5.2

Schedule of credit ratings

The following tables summarize the credit ratings of investments at December 31, 2021 and 2020


	December 31, 2021
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	70.9	$	70.8	54.5	%
AA+, AA, AA-, A-1	14.7		14.8		11.4
A+, A, A-	33.4		33.6		25.9
BBB+, BBB, BBB-	10.5		10.7		8.2
Total	$	129.5	$	129.9	100.0	%


	December 31, 2020
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	116.5	$	118.7	53.0	%
AA+, AA, AA-, A-1	22.7		23.3		10.4
A+, A, A-	57.5		59.4		26.5
BBB+, BBB, BBB-	21.7		22.6		10.1
Total	$	218.4	$	224.0	100.0	%

- Definition

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

+ References + Details

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of fair value of assets and liabilities

The following tables provide information about our financial assets measured and reported at fair value as of December 31, 2021 and 2020:


	2021
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities and agencies	$	22.6	$	0.7	$	—	$	23.3
Municipal securities	—		20.6		—		20.6
Corporate debt securities	—		48.7		—		48.7
Residential mortgage-backed securities	—		3.5		—		3.5
Commercial mortgage-backed securities	—		30.3		—		30.3
Other debt obligations	—		3.5		—		3.5
Total fixed maturities	22.6		107.3		—		129.9

Cash equivalents	127.0		—		—		127.0
Total Assets at fair value	$	149.6	$	107.3	$	—	$	256.9

	2020
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
U.S. Treasury securities and agencies	$	17.0	$	—	$	—	$	17.0
Municipal securities	—		23.4		—		23.4
Corporate debt securities	—		90.5		—		90.5
Residential mortgage-backed securities	—		7.8		—		7.8
Commercial mortgage-backed securities	—		58.4		—		58.4
Other debt obligations	—		23.9		—		23.9
Total fixed maturities	17.0		204.0		—		221.0
Short-term investments	2.2		0.8		—		3.0
Cash equivalents	568.4		—		—		568.4
Total Assets at fair value	$	587.6	$	204.8	$	—	$	792.4

Schedule of carrying amounts and fair values of financial instruments

As of December 31, 2021 and 2020, the carrying amounts and fair values of these financial instruments were as follows:


	Carrying amount as of December 31, 2021		Estimated Fair Value as of December 31, 2021		Carrying amount as of December 31, 2020		Estimated Fair Value as of December 31, 2020
	(dollars in millions)
Long-term debt	$	—	$	—	$	188.2	$	209.0

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables)

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Schedule of ALAE by accident year


Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021		IBNR		Reported Claims(1)
			(dollars in millions)
2017	$	1.2	$	1.1	$	1.1	$	1.1	$	1.1	$	—	553
2018			42.3		48.3		49.6		48.7		0.4		18,105
2019					287.3		306.3		304.7		2.8		90,105
2020							295.9		287.7		10.6		117,028
2021									341.6		62.9		146,270
Total									$	983.8	$	76.7	372,061

Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021
			(dollars in millions)
2017	$	0.6	$	0.9	$	1.0	$	1.1	$	1.1
2018			20.6		44.6		48.1		48.1
2019					177.0		277.7		296.2
2020							182.0		238.5
2021									179.4
Total									$	763.3
Loss and ALAE reserves—net of reinsurance									$	220.5

_______________

(1) Reported by claim event.

Reconciliation of claims development to liability


Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021		IBNR		Reported Claims(1)
			(dollars in millions)
2017	$	1.2	$	1.1	$	1.1	$	1.1	$	1.1	$	—	553
2018			42.3		48.3		49.6		48.7		0.4		18,105
2019					287.3		306.3		304.7		2.8		90,105
2020							295.9		287.7		10.6		117,028
2021									341.6		62.9		146,270
Total									$	983.8	$	76.7	372,061

Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021
			(dollars in millions)
2017	$	0.6	$	0.9	$	1.0	$	1.1	$	1.1
2018			20.6		44.6		48.1		48.1
2019					177.0		277.7		296.2
2020							182.0		238.5
2021									179.4
Total									$	763.3
Loss and ALAE reserves—net of reinsurance									$	220.5

_______________

(1) Reported by claim event.

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:


	2021		2020		2019
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	237.2	$	140.7	$	33.3
Reinsurance recoverable on unpaid losses	(79.6)		(18.9)		(11.4)
Net loss and LAE reserves, January 1	157.6		121.8		21.9
Net incurred loss and LAE related to:
Current year	405.9		341.9		312.6
Prior years	(13.6)		20.9		8.8
Total incurred	392.3		362.8		321.4
Net paid loss and LAE related to:
Current year	226.4		216.3		194.6
Prior years	82.8		110.7		26.9
Total paid	309.2		327.0		221.5
Net loss and LAE reserves, December 31	240.7		157.6		121.8
Plus reinsurance recoverable on unpaid losses	79.5		79.6		18.9
Gross loss and LAE reserves, December 31	$	320.2	$	237.2	$	140.7


	2021		2020
	(dollars in millions)
Loss and ALAE reserves—net of reinsurance	$	220.5	$	144.0
ULAE reserves—net of reinsurance	20.2		13.6
Reinsurance recoverables on unpaid losses	79.5		79.6
Total loss and LAE reserves—gross of reinsurance	$	320.2	$	237.2

Schedule of historical claims

The following table sets forth the historical average annual percentage payout of incurred losses and ALAE (claims duration), net of reinsurance, as of December 31, 2021:


Year	1		2		3		4		5
Incremental Paid(1)	54.1	%	32.3	%	7.4	%	4.5	%	—	%

_______________

(1) Supplemental information and unaudited

REINSURANCE (Tables)

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Schedule of direct premiums written

The following table reflects amounts affecting the consolidated balance sheets and statements of operations and comprehensive loss for reinsurance as of and for the years ended December 31:


	2021		2020		2019
	(dollars in millions)
Loss and LAE reserves:
Direct	$	313.2	$	237.2	$	140.7
Assumed	7.0		—		—
Ceded	(79.5)		(79.6)		(18.9)
Net loss and LAE reserves	$	240.7	$	157.6	$	121.8
Unearned premiums:
Direct	$	170.6	$	157.1	$	145.4
Assumed	9.5		—		—
Ceded	(100.8)		(112.8)		(17.4)
Net unearned premiums	$	79.3	$	44.3	$	128.0
Premiums written:
Direct	$	725.9	$	616.8	$	451.1
Assumed	16.7		—		—
Ceded	(397.3)		(378.0)		(82.3)
Net premiums written	$	345.3	$	238.8	$	368.8
Premiums earned:
Direct	$	712.3	$	605.2	$	352.9
Assumed	7.3		—		—
Ceded	(409.3)		(282.7)		(77.6)
Net premiums earned	$	310.3	$	322.5	$	275.3
Losses and LAE incurred:
Direct	$	683.9	$	557.6	$	395.0
Assumed	10.9		—		—
Ceded	(302.5)		(194.8)		(73.6)
Net losses and LAE incurred	$	392.3	$	362.8	$	321.4

Gross written premium by state is as follows for the years ended December 31, 2021, 2020 and 2019:


	For the Years Ended December 31,
	2021				2020				2019
	Amount		% of Total		Amount		% of Total		Amount		% of Total
State	(dollars in millions)
Texas(1)	$	152.3	20.5	%	$	132.5	21.5	%	$	94.7	21.0	%
Georgia	79.2		10.7		72.4		11.7		44.0		9.8
Louisiana	42.2		5.7		28.0		4.5		15.3		3.4
Pennsylvania	39.8		5.4		30.2		4.9		25.2		5.6
Utah	33.8		4.6		26.0		4.2		17.6		3.9
Nevada	33.6		4.5		19.1		3.1		2.4		0.5
Colorado	33.5		4.5		20.2		3.3		8.1		1.8
South Carolina	26.3		3.5		9.6		1.6		14.4		3.2
Missouri	24.7		3.3		26.8		4.3		22.0		4.9
Arizona	23.5		3.2		28.4		4.6		26.7		5.9
All others states	253.7		34.1		223.6		36.3		180.7		40.0
Total	$	742.6	100.0	%	$	616.8	100.0	%	$	451.1	100.0	%

______________(1) Includes assumed premiums, which commenced during the year ended December 31, 2021. Assumed written premium for the year ended December 31, 2021 was $16.7 million

LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of long term debt

The following summarizes the carrying value of long-term debt and warrants as of December 31, 2021 and 2020:


	2021		2020
	(dollars in millions)
Term Loan A	$	—	$	99.5
Term Loan B	—		100.0



Total	—		199.5

Accrued interest payable	—		10.2
Unamortized discount and debt and warrant issuance costs	—		(21.5)
Total	$	—	$	188.2

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
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-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
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-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
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-URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28551-108399

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
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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
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21538-112644

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21475-112644

+ Details

LEASES (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of future lease payments

Future lease payments as of December 31, 2021 were as follows:


	Operating Leases
	(dollars in millions)
2022	$	4.3
2023	4.4
2024	4.3
2025	1.5
2026	1.5
2027 and thereafter	1.6
Total future lease payments	17.6
Less: imputed interest	(3.5)
Total lease liabilities	$	14.1

Schedule of future minimum rental payments for operating leases


	Operating Leases
	(dollars in millions)
2021	$	3.9
2022	4.4
2023	4.4
2024	4.3
2025	1.5
2026 and thereafter	3.1
Total	$	21.6

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

We had no income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
	(dollars in millions)
Current:
Federal	$	—	$	—	$	—
State	—		—		—

Total current	—		—		—
Deferred:
Federal	—		—		—
State	—		—		—

Total deferred	—		—		—
Total income tax expense (benefit)	$	—	$	—	$	—

Schedule of effective income tax reconciliation

The income tax expense (benefit) differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% in 2021, 2020 and 2019 to pretax income as a result of the following:


	2021				2020				2019
	(dollars in millions)
Loss before income taxes	$	(521.1)			$	(363.0)			$	(282.4)
Statutory U.S. federal income tax benefit	(109.4)		21.0	%	(76.2)		21.0	%	(59.3)		21.0	%
Valuation allowance on deferred tax assets	116.7		(22.4)		61.5		(16.9)		57.4		(20.3)
Warrants fair value adjustment	—		—		11.5		(3.2)		—		—
Share-based compensation	(3.3)		0.6		5.0		(1.4)		1.7		(0.6)
Nondeductible compensation	1.8		(0.3)		—		—		—		—
State net operating loss	(4.9)		0.9		(3.1)		0.9		(2.2)		0.8
Other	(0.9)		0.2		1.3		(0.4)		2.4		(0.9)
Income tax expense (benefit)	$	—	—	%	$	—	—	%	$	—	—	%

Schedule of deferred tax assets and liabilities

The following table sets forth the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020:


	2021		2020
	(dollars in millions)
Deferred tax assets:
Unpaid losses and loss adjustment expenses	$	2.5	$	1.5
Unearned premium reserves	3.8		1.9
Nondeductible accruals	0.5		0.9
Deferred rent	2.0		1.4
Research and development credits	0.9		0.9
Disallowed interest carryforward	9.6		3.7
Bad debt expense	1.2		0.8

Excess ceding commission	2.2		—
Deferred compensation	2.5		1.4
Stock compensation	5.4		0.5
Other	2.6		0.6
State net operating loss carryforward	10.2		5.3
Net operating loss carryforward	217.4		124.1
Gross deferred assets	260.8		143.0
Less valuation allowance	(255.0)		(137.3)
Total deferred tax assets, less valuation allowance	5.8		5.7
Deferred tax liabilities:
Internally developed software	2.7		2.1
Fixed assets	2.2		1.9
Deferred acquisition costs	0.6		0.4
Unrealized gains	0.1		1.2
Other	0.2		0.1
Deferred tax liabilities	5.8		5.7
Net deferred tax asset	$	—	$	—

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Summary of warrants issued

The following table provides other key terms of the warrants:



Warrants	Exercise Price		Shares Issued (in millions)	Grant Date Fair Value per Share		Vesting Condition
Short-Term
Tranche 1	$	10.00	42.6	$	0.42	Completing the Integrated Platform
Tranche 2	$	11.00	57.8	$	0.37	50,000 policy originations
Tranche 3	$	12.00	28.7	$	0.18	75,000 policy originations
Total Short-Term			129.1

Long-Term
Tranche 1	$	10.00	25.8	$	0.42	100,000 policy originations
Tranche 2	$	12.50	26.9	$	0.35	200,000 policy originations
Tranche 3	$	15.00	27.1	$	0.24	300,000 policy originations
Tranche 4	$	22.50	26.1	$	0.09	400,000 policy originations
Tranche 5	$	30.00	23.2	$	0.04	500,000 policy originations
Total Long-Term			129.1

Schedule of share-based compensation expense

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


	Years Ended December 31,
	2021		2020		2019
	(dollars in millions)
Share-based compensation expense:
Loss and loss adjustment expenses	$	1.5	$	0.6	$	—
Sales and marketing	1.0		1.0		—
Other insurance expense (benefit)	1.6		1.0		—
Technology and development	4.5		5.8		—
General and administrative	10.7		20.4		10.0
Total share-based compensation expense	$	19.3	$	28.8	$	10.0

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


	Years Ended December 31,
	2021		2020		2019
	(dollars in millions)
Share-based compensation expense:
Restricted stock unit expense	$	14.9	$	0.6	$	—
Stock option expense	4.4		28.2		10.0
Total share-based compensation expense	$	19.3	$	28.8	$	10.0

Summary of RSU activity

Restricted Stock Units

A summary of RSU activity for the year ended December 31, 2021 is as follows:


Restricted Stock Units	Number of Shares	Weighted-Average Grant Date Fair Value per Share		Aggregate Intrinsic Value
	(in millions, except exercise price)
Nonvested at January 1, 2020	—	$	—	$	—
Granted	0.4	17.72
Vested	—	7.25		0.3
Forfeited, expired or canceled	—	22.89
Nonvested at December 31, 2020	0.4	18.41		$	6.2
Granted	12.2	9.17
Vested	(0.1)	18.09		1.0
Forfeited, expired or canceled	(3.6)	10.24
Nonvested at December 31, 2021	8.9	$	9.02	$	27.4

Summary of option activity

A summary of option activity for the years ended December 31, 2021 and 2020 is as follows:


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 at January 1, 2020	12.3	$	1.42	8.22	$	70.4
Granted	1.6	7.76
Exercised	(2.8)	0.70			41.5
Forfeited, expired or canceled	(0.7)	5.00
Outstanding at December 31, 2020	10.4	$	2.39	7.75	$	137.7
Granted	—	10.82
Exercised	(2.8)	1.68			24.1
Forfeited, expired or canceled	(1.1)	4.44
Outstanding at December 31, 2021	6.5	2.36		6.12	$	9.5

Schedule of exercise price range

A summary of total options outstanding and exercisable at December 31, 2021:


	Options Outstanding and Exercisable
Options	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in Years)
	(in millions, except exercise price and term amounts)
Range of Exercise Prices:
$0.01 - $1.00	2.7	$	0.30	4.76
$1.00 - $2.50	2.8	$	2.40	7.20
$2.50 - $13.00	1.0	$	7.67	6.86

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of purchase obligations

The following table summarizes, by remaining maturity, future commitments related to other arrangements as of December 31, 2021:


	Purchase Obligations
	(dollars in millions)
2022	$	8.1
2023	4.8
2024	0.9
2025	0.6
2026 and thereafter	—
Total	$	14.4

OTHER COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Schedule of AOCI

The following table presents the changes in our accumulated other comprehensive income, or AOCI, for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
	(dollars in millions)

Accumulated other comprehensive income beginning balance	$	5.6	$	0.6	$	—
Other comprehensive (loss) income before reclassifications	(2.8)		5.3		0.6
Net realized gains on investments reclassified from AOCI to net loss	(2.4)		(0.3)		—
Net current period other comprehensive (loss) income	(5.2)		5.0		0.6
Accumulated other comprehensive income ending balance	$	0.4	$	5.6	$	0.6

LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of earnings per share

The following table displays the computation of basic and diluted loss per share for both Class A and Class B common stock for the years ended December 31, 2021, 2020 and 2019:


	For the Years Ended December 31,
	2021		2020		2019
	(in millions, except per share amounts)
Net loss	$	(521.1)	$	(363.0)	$	(282.4)
Weighted-average common shares outstanding: basic and diluted (both Class A and B)	249.2		75.5		33.9
Loss per common share: basic and diluted (both Class A and B)	$	(2.09)	$	(4.81)	$	(8.33)

Schedule of anti-dilutive securities


	As of December 31,
	2021	2020	2019
	(in millions)
Options to purchase common stock	6.5	10.4	12.3
Nonvested shares subject to repurchase	2.2	5.0	7.2
Restricted stock units	8.9	0.4	—
Redeemable convertible preferred stock (as converted to common stock)	14.1	—	158.9
Warrants to purchase common stock(1)	129.1	—	—
Warrants to purchase redeemable convertible preferred stock (as converted to common stock)	—	—	0.6
Total	160.8	15.8	179.0

_______________

(1) Warrants outstanding as of December 31, 2021 would result in a maximum of 129.1 million shares of Class A common stock, if they vest and are fully exercised by Carvana for cash.

STATUTORY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Schedule of statutory financial information

Root Insurance Company and Root Property & Casualty maintained statutory capital and surplus as of December 31, 2021 and 2020 and had statutory net loss for the years ended December 31, 2021, 2020 and 2019 as follows:


	Statutory Net Loss						Statutory Capital and Surplus
	2021		2020		2019(1)		2021		2020
	(in millions)
Root Insurance Company	$	(126.9)	$	(123.8)	$	(157.6)	$	91.5	$	100.1
Root Property & Casualty	(33.4)		(25.5)		—		21.8		16.3
Total	$	(160.3)	$	(149.3)	$	(157.6)	$	113.3	$	116.4

_______________(1) Root Property and Casualty was acquired during the year-ended December 31, 2020; as such, statutory net loss is not included in periods prior to the acquisition.

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUM (Tables)

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Schedule of gross premiums written

The following table reflects amounts affecting the consolidated balance sheets and statements of operations and comprehensive loss for reinsurance as of and for the years ended December 31:


	2021		2020		2019
	(dollars in millions)
Loss and LAE reserves:
Direct	$	313.2	$	237.2	$	140.7
Assumed	7.0		—		—
Ceded	(79.5)		(79.6)		(18.9)
Net loss and LAE reserves	$	240.7	$	157.6	$	121.8
Unearned premiums:
Direct	$	170.6	$	157.1	$	145.4
Assumed	9.5		—		—
Ceded	(100.8)		(112.8)		(17.4)
Net unearned premiums	$	79.3	$	44.3	$	128.0
Premiums written:
Direct	$	725.9	$	616.8	$	451.1
Assumed	16.7		—		—
Ceded	(397.3)		(378.0)		(82.3)
Net premiums written	$	345.3	$	238.8	$	368.8
Premiums earned:
Direct	$	712.3	$	605.2	$	352.9
Assumed	7.3		—		—
Ceded	(409.3)		(282.7)		(77.6)
Net premiums earned	$	310.3	$	322.5	$	275.3
Losses and LAE incurred:
Direct	$	683.9	$	557.6	$	395.0
Assumed	10.9		—		—
Ceded	(302.5)		(194.8)		(73.6)
Net losses and LAE incurred	$	392.3	$	362.8	$	321.4

Gross written premium by state is as follows for the years ended December 31, 2021, 2020 and 2019:


	For the Years Ended December 31,
	2021				2020				2019
	Amount		% of Total		Amount		% of Total		Amount		% of Total
State	(dollars in millions)
Texas(1)	$	152.3	20.5	%	$	132.5	21.5	%	$	94.7	21.0	%
Georgia	79.2		10.7		72.4		11.7		44.0		9.8
Louisiana	42.2		5.7		28.0		4.5		15.3		3.4
Pennsylvania	39.8		5.4		30.2		4.9		25.2		5.6
Utah	33.8		4.6		26.0		4.2		17.6		3.9
Nevada	33.6		4.5		19.1		3.1		2.4		0.5
Colorado	33.5		4.5		20.2		3.3		8.1		1.8
South Carolina	26.3		3.5		9.6		1.6		14.4		3.2
Missouri	24.7		3.3		26.8		4.3		22.0		4.9
Arizona	23.5		3.2		28.4		4.6		26.7		5.9
All others states	253.7		34.1		223.6		36.3		180.7		40.0
Total	$	742.6	100.0	%	$	616.8	100.0	%	$	451.1	100.0	%

______________(1) Includes assumed premiums, which commenced during the year ended December 31, 2021. Assumed written premium for the year ended December 31, 2021 was $16.7 million

NATURE OF BUSINESS (Details)	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Ownership percentage	100.00%

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Nov. 30, 2020 USD ($) state	Dec. 31, 2021 USD ($) segment $ / shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Asset Acquisition [Line Items]
Purchases of indefinite-lived intangible assets and transaction costs		$ 0.0	$ (8.9)	$ 0.0
Impairment of intangible assets		$ 0.0	0.0
Number of reportable segments \| segment		1
Allowance for premiums receivable		$ 5.4	3.5
Bad debt expense		20.9	23.6	9.0
Deferred policy acquisition cost		2.8	1.7
Amortization of deferred acquisition costs		26.4	17.1	12.2
Valuation allowance		$ 255.0	137.3
Amortization period		5 years
Amortization expense		$ 3.7	2.4	1.4
Depreciation expense		$ 4.6	3.1	$ 1.7
Exercise price of warrants (in dollars per share) \| $ / shares		$ 0.0001
Computers
Asset Acquisition [Line Items]
Useful life		3 years
Furniture
Asset Acquisition [Line Items]
Useful life		5 years
Catlin
Asset Acquisition [Line Items]
Purchase consideration	$ 22.8
Cash, cash equivalents, and accrued investment income acquired	14.4
Indefinite-lived intangible assets acquired	8.4
Payment to acquire assets	$ 0.5
Number of states auto policies written \| state	48
Root Property & Casualty
Asset Acquisition [Line Items]
Purchases of indefinite-lived intangible assets and transaction costs		$ 8.9	$ 8.9

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Interest paid	$ 23.9	$ 4.5	$ 4.3
Federal income taxes paid	0.0	0.0	0.0
Leasehold improvements - non-cash	1.5	0.0	1.5
Conversion of debt to preferred stock - non-cash			11.2
Conversion of preferred stock to common stock - non-cash	0.0	560.4	0.0
Conversion of warrants to common stock - non-cash	0.0	75.0	0.0
Lease liabilities arising from obtaining right-of-use asset	9.9	0.0	0.0
Investment Agreement issuance costs - non-cash	9.1	0.0	0.0
Purchases of treasury stock - non-cash	$ 0.0	$ 0.5	$ 0.0

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Cash and cash equivalents	$ 706.0	$ 1,112.8
Restricted cash	1.0	1.0
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 707.0	$ 1,113.8	$ 416.6	$ 122.3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Internally Developed Software (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Internally developed software	$ 20.5	$ 13.9
Accumulated amortization	(8.0)	(4.3)
Internally developed software, net	$ 12.5	$ 9.6

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fixed Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total fixed assets, at cost	$ 20.2	$ 14.2
Accumulated depreciation	(9.9)	(5.3)
Fixed assets, net	10.3	8.9
Computers
Property, Plant and Equipment [Line Items]
Total fixed assets, at cost	7.0	4.5
Furniture
Property, Plant and Equipment [Line Items]
Total fixed assets, at cost	3.4	3.4
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total fixed assets, at cost	$ 9.8	$ 6.3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Employee Share-Based Compensation (Details)	12 Months Ended
	Dec. 31, 2021 shares	Oct. 31, 2021 tranche shares	Oct. 01, 2021 tranche	Dec. 31, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock issued (in shares)	14,100,000			0
Preferred stock, outstanding (in shares)	14,100,000			0
Carvana
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock issued (in shares)		14,100,000
Number of tranches \| tranche		8	8
Investment agreement, term of agreement		5 years
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable period	10 years
Vesting period	4 years
Service and performance period	4 years
Options \| Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Vesting percentage	25.00%
Options \| Tranche 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Vesting percentage	2.00%
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
RSUs \| Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Vesting percentage	25.00%
RSUs \| Tranche 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Vesting percentage	2.00%
Other Certain RSUs 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Other Certain RSUs 1 \| Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Vesting percentage	25.00%
Other Certain RSUs 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Other Certain RSUs 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASUs (Details) - USD ($)	Jan. 01, 2021	Dec. 31, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for premiums receivable		$ 5,400,000	$ 3,500,000
Provision for loss corridor		200,000	$ 0
Total lease liabilities		14,100,000
Right-of-use asset		$ 5,100,000
Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Transition adjustment	$ 1,000,000.0
Allowance for premiums receivable	800,000
Provision for loss corridor	200,000
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total lease liabilities	16,200,000
Right-of-use asset	9,900,000
Reclassification of deferred rent and lease liabilities	$ 6,300,000

INVESTMENTS - Amortized Cost and Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Total Amortized cost	$ 129.5	$ 218.4
Allowance for Expected Credit Losses	0.0
Gross Unrealized Gains	1.2	5.7
Gross Unrealized Losses	(0.8)	(0.1)
Fair Value	129.9	224.0
Fixed maturities
Debt Securities, Available-for-sale [Line Items]
Total Amortized cost		215.4
Gross Unrealized Gains		5.7
Gross Unrealized Losses		(0.1)
Fair Value	129.9	221.0
U.S. Treasury securities and agencies
Debt Securities, Available-for-sale [Line Items]
Total Amortized cost	23.7	16.9
Allowance for Expected Credit Losses	0.0
Gross Unrealized Gains	0.0	0.1
Gross Unrealized Losses	(0.4)	0.0
Fair Value	23.3	17.0
Municipal securities
Debt Securities, Available-for-sale [Line Items]
Total Amortized cost	20.4	22.6
Allowance for Expected Credit Losses	0.0
Gross Unrealized Gains	0.3	0.8
Gross Unrealized Losses	(0.1)	0.0
Fair Value	20.6	23.4
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Total Amortized cost	48.2	87.5
Allowance for Expected Credit Losses	0.0
Gross Unrealized Gains	0.7	3.1
Gross Unrealized Losses	(0.2)	(0.1)
Fair Value	48.7	90.5
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Total Amortized cost	3.5	7.8
Allowance for Expected Credit Losses	0.0
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	0.0	0.0
Fair Value	3.5	7.8
Commercial mortgage backed securities
Debt Securities, Available-for-sale [Line Items]
Total Amortized cost	30.2	57.1
Allowance for Expected Credit Losses	0.0
Gross Unrealized Gains	0.2	1.3
Gross Unrealized Losses	(0.1)	0.0
Fair Value	30.3	58.4
Other debt obligations
Debt Securities, Available-for-sale [Line Items]
Total Amortized cost	3.5	23.5
Allowance for Expected Credit Losses	0.0
Gross Unrealized Gains	0.0	0.4
Gross Unrealized Losses	0.0	0.0
Fair Value	$ 3.5	23.9
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Total Amortized cost		3.0
Gross Unrealized Gains		0.0
Gross Unrealized Losses		0.0
Fair Value		$ 3.0

INVESTMENTS- Other investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Other investments	$ 4.7	$ 0.5
Unrealized gains	$ 3.8

INVESTMENTS - Unrealized Losses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	$ 39.7	$ 29.6
Less than 12 months, unrealized loss	(0.4)	(0.1)
12 Months or more, fair value	16.1	0.0
12 months or more, unrealized loss	(0.4)	0.0
Total, fair value	55.8	29.6
Total, unrealized loss	(0.8)	(0.1)
Realized gains on investments	2.5	0.5	$ 0.0
Realized losses on investments	(0.1)	(0.2)	0.0
Net realized gains on investments	2.4	0.3	$ 0.0
U.S. Treasury securities and agencies
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	7.5	15.7
Less than 12 months, unrealized loss	(0.1)	0.0
12 Months or more, fair value	14.0	0.0
12 months or more, unrealized loss	(0.3)	0.0
Total, fair value	21.5	15.7
Total, unrealized loss	(0.4)	0.0
Municipal securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	8.9	2.3
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	8.9	2.3
Total, unrealized loss	(0.1)	0.0
Corporate debt securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	12.7	2.9
Less than 12 months, unrealized loss	(0.1)	(0.1)
12 Months or more, fair value	1.6	0.0
12 months or more, unrealized loss	(0.1)	0.0
Total, fair value	14.3	2.9
Total, unrealized loss	(0.2)	(0.1)
Residential mortgage-backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	1.9	3.7
Less than 12 months, unrealized loss	0.0	0.0
12 Months or more, fair value	0.5	0.0
12 months or more, unrealized loss	0.0	0.0
Total, fair value	2.4	3.7
Total, unrealized loss	0.0	0.0
Commercial mortgage backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	8.7	4.9
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	8.7	4.9
Total, unrealized loss	$ (0.1)	0.0
Other debt obligations
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value		0.1
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		0.1
Total, unrealized loss		$ 0.0

INVESTMENTS - Contractual Maturity (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Amortized Cost
Due in one year or less, amortized cost	$ 24.6
Due after one year through five years, amortized cost	83.5
Due five years through 10 years, amortized cost	7.8
Due after 10 years, amortized cost	13.6
Total Amortized cost	129.5	$ 218.4
Fair Value
Due in one year or less, fair value	24.5
Due after one year through five years, fair value	83.9
Due five years through 10 years, fair value	7.8
Due after 10 years, fair value	13.7
Total investments	$ 129.9	$ 224.0

INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net Investment Income [Line Items]
Total	$ 7.3	$ 5.9	$ 5.6
Investment expense	(2.3)	(0.5)	(0.4)
Net investment income	5.0	5.4	5.2
Interest on bonds
Net Investment Income [Line Items]
Total	2.4	4.2	1.8
Interest on deposits and cash equivalents
Net Investment Income [Line Items]
Total	1.1	1.7	3.8
Other investments
Net Investment Income [Line Items]
Total	$ 3.8	$ 0.0	$ 0.0

INVESTMENTS - Credit Ratings (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 129.5	$ 218.4
Fair Value	$ 129.9	$ 224.0
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	$ 70.9	$ 116.5
Fair Value	$ 70.8	$ 118.7
AAA \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage	54.50%	53.00%
AA+, AA, AA-, A-1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 14.7	$ 22.7
Fair Value	$ 14.8	$ 23.3
AA+, AA, AA-, A-1 \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage	11.40%	10.40%
A+, A, A-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 33.4	$ 57.5
Fair Value	$ 33.6	$ 59.4
A+, A, A- \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage	25.90%	26.50%
BBB+, BBB, BBB-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 10.5	$ 21.7
Fair Value	$ 10.7	$ 22.6
BBB+, BBB, BBB- \| AFS securities \| Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage	8.20%	10.10%

INVESTMENTS - Special Deposits (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Amortized costs of special deposits	$ 13.4	$ 12.8
Fair of special deposits	$ 13.8	$ 13.6

FAIR VALUE OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Assets
AFS securities	$ 129.9	$ 224.0
Cash equivalents	127.0	568.4
Total Assets at fair value	256.9	792.4
U.S. Treasury securities and agencies
Assets
AFS securities	23.3	17.0
Municipal securities
Assets
AFS securities	20.6	23.4
Corporate debt securities
Assets
AFS securities	48.7	90.5
Residential mortgage-backed securities
Assets
AFS securities	3.5	7.8
Commercial mortgage backed securities
Assets
AFS securities	30.3	58.4
Other debt obligations
Assets
AFS securities	3.5	23.9
Fixed maturities
Assets
AFS securities	129.9	221.0
Short-term investments
Assets
AFS securities		3.0
Level 1
Assets
Cash equivalents	127.0	568.4
Total Assets at fair value	149.6	587.6
Level 1 \| U.S. Treasury securities and agencies
Assets
AFS securities	22.6	17.0
Level 1 \| Municipal securities
Assets
AFS securities	0.0	0.0
Level 1 \| Corporate debt securities
Assets
AFS securities	0.0	0.0
Level 1 \| Residential mortgage-backed securities
Assets
AFS securities	0.0	0.0
Level 1 \| Commercial mortgage backed securities
Assets
AFS securities	0.0	0.0
Level 1 \| Other debt obligations
Assets
AFS securities	0.0	0.0
Level 1 \| Fixed maturities
Assets
AFS securities	22.6	17.0
Level 1 \| Short-term investments
Assets
AFS securities		2.2
Level 2
Assets
Cash equivalents	0.0	0.0
Total Assets at fair value	107.3	204.8
Level 2 \| U.S. Treasury securities and agencies
Assets
AFS securities	0.7	0.0
Level 2 \| Municipal securities
Assets
AFS securities	20.6	23.4
Level 2 \| Corporate debt securities
Assets
AFS securities	48.7	90.5
Level 2 \| Residential mortgage-backed securities
Assets
AFS securities	3.5	7.8
Level 2 \| Commercial mortgage backed securities
Assets
AFS securities	30.3	58.4
Level 2 \| Other debt obligations
Assets
AFS securities	3.5	23.9
Level 2 \| Fixed maturities
Assets
AFS securities	107.3	204.0
Level 2 \| Short-term investments
Assets
AFS securities		0.8
Level 3
Assets
Cash equivalents	0.0	0.0
Total Assets at fair value	0.0	0.0
Level 3 \| U.S. Treasury securities and agencies
Assets
AFS securities	0.0	0.0
Level 3 \| Municipal securities
Assets
AFS securities	0.0	0.0
Level 3 \| Corporate debt securities
Assets
AFS securities	0.0	0.0
Level 3 \| Residential mortgage-backed securities
Assets
AFS securities	0.0	0.0
Level 3 \| Commercial mortgage backed securities
Assets
AFS securities	0.0	0.0
Level 3 \| Other debt obligations
Assets
AFS securities	0.0	0.0
Level 3 \| Fixed maturities
Assets
AFS securities	$ 0.0	0.0
Level 3 \| Short-term investments
Assets
AFS securities		$ 0.0

FAIR VALUE OF FINANCIAL INSTRUMENTS - Long Term Debt (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt outstanding	$ 0	$ 188,200,000
Level 2 \| Carrying amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	0	188,200,000
Level 2 \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 0	$ 209,000,000.0

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES-Schedule of Reserve Balance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Gross loss and LAE reserves, January 1	$ 237.2	$ 140.7	$ 33.3
Reinsurance recoverable on unpaid losses	(79.6)	(18.9)	(11.4)
Net loss and LAE reserves, January 1	157.6	121.8	21.9
Net incurred loss and LAE related to:
Current year	405.9	341.9	312.6
Prior years	(13.6)	20.9	8.8
Total incurred	392.3	362.8	321.4
Net paid loss and LAE related to:
Current year	226.4	216.3	194.6
Prior years	82.8	110.7	26.9
Total paid	309.2	327.0	221.5
Net loss and LAE reserves	240.7	157.6	121.8
Plus reinsurance recoverable on unpaid losses	79.5	79.6	18.9
Gross loss and LAE reserves, December 31	$ 320.2	$ 237.2	$ 140.7

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Insurance [Abstract]
Incurred losses and LAE attributable to prior accident years	$ (13.6)	$ 20.9	$ 8.8

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - LAE by Accident Year (Details) $ in Millions	Dec. 31, 2021 USD ($) state claim	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	$ 983.8
IBNR	$ 76.7
Reported Claims \| claim	372,061
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 763.3
Loss and ALAE reserves—net of reinsurance	220.5
2017
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	1.1	$ 1.1	$ 1.1	$ 1.1	$ 1.2
IBNR	$ 0.0
Reported Claims \| state	553
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 1.1	1.1	1.0	0.9	$ 0.6
2018
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	48.7	49.6	48.3	42.3
IBNR	$ 0.4
Reported Claims \| claim	18,105
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 48.1	48.1	44.6	$ 20.6
2019
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	304.7	306.3	287.3
IBNR	$ 2.8
Reported Claims \| claim	90,105
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 296.2	277.7	$ 177.0
2020
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	287.7	295.9
IBNR	$ 10.6
Reported Claims \| claim	117,028
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 238.5	$ 182.0
2021
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	341.6
IBNR	$ 62.9
Reported Claims \| claim	146,270
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 179.4

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Reconciliation (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Insurance [Abstract]
Loss and ALAE reserves—net of reinsurance	$ 220.5	$ 144.0
ULAE reserves—net of reinsurance	20.2	13.6
Reinsurance recoverables on unpaid losses	79.5	79.6	$ 18.9	$ 11.4
Loss and loss adjustment expense reserves	$ 320.2	$ 237.2	$ 140.7	$ 33.3

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Historical Claims (Details)	Dec. 31, 2021
Insurance [Abstract]
Incremental Paid, Year 1	54.10%
Incremental Paid, Year 2	32.30%
Incremental Paid, Year 3	7.40%
Incremental Paid, Year 4	4.50%
Incremental Paid, Year 5	0.00%

REINSURANCE (Details) - USD ($) $ in Millions	12 Months Ended
REINSURANCE (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loss and LAE reserves:
Direct	$ 313.2	$ 237.2	$ 140.7
Assumed	7.0	0.0	0.0
Ceded	(79.5)	(79.6)	(18.9)	$ (11.4)
Net loss and LAE reserves	240.7	157.6	121.8	$ 21.9
Unearned premiums:
Direct	170.6	157.1	145.4
Assumed	9.5	0.0	0.0
Ceded	(100.8)	(112.8)	(17.4)
Net unearned premiums	79.3	44.3	128.0
Premiums written:
Direct	725.9	616.8	451.1
Assumed	16.7	0.0	0.0
Ceded	(397.3)	(378.0)	(82.3)
Net premiums written	345.3	238.8	368.8
Premiums earned:
Direct	712.3	605.2	352.9
Assumed	7.3	0.0	0.0
Ceded	(409.3)	(282.7)	(77.6)
Net premiums earned	310.3	322.5	275.3
Losses and LAE incurred:
Direct	683.9	557.6	395.0
Assumed	10.9	0.0	0.0
Ceded	(302.5)	(194.8)	(73.6)
Net losses and LAE incurred	392.3	362.8	$ 321.4
Maximum amount of ceded commissions returned	26.5	27.2
Reinsurance recoverable unpaid losses	160.7	109.1
Provision for sliding scale commissions	0.0	8.1
Provision for loss corridor	$ 80.4	$ 29.5

LONG-TERM DEBT - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions			12 Months Ended
	Nov. 08, 2021	Oct. 15, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 31, 2022
Debt Instrument [Line Items]
Exercise price of warrants (in dollars per share)			$ 0.0001
Adjustment to fair value of warrants			$ 0	$ 54,700,000	$ 0
Loss on early extinguishment of debt			$ (15,900,000)	$ 0	$ 0
Common stock
Debt Instrument [Line Items]
Warrants outstanding (in shares)			2.8
Exercise price of warrants (in dollars per share)			$ 0.0001
Amended Term Loan B \| Term loan \| LIBOR
Debt Instrument [Line Items]
Variable rate percentage	10.50%
Term Loan A \| Term loan \| LIBOR
Debt Instrument [Line Items]
Variable rate percentage			4.00%
Term Loan \| Subsequent event
Debt Instrument [Line Items]
Debt amount						$ 300,000,000
Revolving Loan \| Amended Term Loan A \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 100,000,000
Unused fee percentage			0.50%
Repayment of debt		$ 98,800,000
Payment of accrued interest and fees		$ 200,000
Revolving Loan \| Amended Term Loan B \| Line of Credit
Debt Instrument [Line Items]
Repayment of debt	$ 100,000,000
Payment of accrued interest and fees	20,900,000
Retirement of debt	$ 120,900,000
Letter of Credit \| Amended Term Loan A \| Line of Credit
Debt Instrument [Line Items]
Average daily amount fee percentage			4.00%
Fronting fee percentage			0.125%
Letters of credit outstanding			$ 0

LONG-TERM DEBT - Schedule Of Debt (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total	$ 0	$ 199,500,000
Accrued interest payable	0	10,200,000
Unamortized discount and debt and warrant issuance costs	0	(21,500,000)
Total	0	188,200,000
Term loan \| Term Loan A
Debt Instrument [Line Items]
Total	0	99,500,000
Term loan \| Term Loan B
Debt Instrument [Line Items]
Total	$ 0	$ 100,000,000.0

- Definition

+ References + Details

LEASES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
LEASES - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Weighted average discount rate ( in percent)	10.80%
Weighted average remaining lease term	4 years 4 months 24 days
Total lease liabilities	$ 14.1
Right-of-use asset	5.1
Operating lease, cost	5.0
Operating lease, liabilities	$ 3.8
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets
Rent expense		$ 4.8	$ 2.4
General and administrative
Lessee, Lease, Description [Line Items]
Lease expense due to early termination	$ 2.0
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	6 years

LEASES - Future Lease Payments (Details) $ in Millions	Dec. 31, 2021 USD ($)
Leases [Abstract]
2022	$ 4.3
2023	4.4
2024	4.3
2025	1.5
2026	1.5
2027 and thereafter	1.6
Total future lease payments	17.6
Less: imputed interest	(3.5)
Total lease liabilities	$ 14.1

LEASES - Operating Lease Maturities (Details) $ in Millions	Dec. 31, 2020 USD ($)
Leases [Abstract]
2021	$ 3.9
2022	4.4
2023	4.4
2024	4.3
2025	1.5
2026 and thereafter	3.1
Total	$ 21.6

INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal	$ 0.0	$ 0.0	$ 0.0
State	0.0	0.0	0.0
Total current	0.0	0.0	0.0
Deferred:
Federal	0.0	0.0	0.0
State	0.0	0.0	0.0
Total deferred	0.0	0.0	0.0
Total income tax expense (benefit)	$ 0.0	$ 0.0	$ 0.0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Effective Income Tax Reconciliation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (521.1)	$ (363.0)	$ (282.4)
Amount
Statutory U.S. federal income tax benefit	(109.4)	(76.2)	(59.3)
Valuation allowance on deferred tax assets	116.7	61.5	57.4
Warrants fair value adjustment	0.0	11.5	0.0
Share-based compensation	(3.3)	5.0	1.7
Nondeductible compensation	1.8	0.0	0.0
State net operating loss	(4.9)	(3.1)	(2.2)
Other	(0.9)	1.3	2.4
Total income tax expense (benefit)	$ 0.0	$ 0.0	$ 0.0
Percent
Statutory U.S. federal income tax benefit	21.00%	21.00%	21.00%
Valuation allowance on deferred tax assets	(22.40%)	(16.90%)	(20.30%)
Warrants fair value adjustment	0.00%	(3.20%)	0.00%
Share-based compensation	0.60%	(1.40%)	(0.60%)
Nondeductible compensation	(0.30%)	0.00%	0.00%
State net operating loss	0.90%	0.90%	0.80%
Other	0.20%	(0.40%)	(0.90%)
Income tax expense (benefit)	0.00%	0.00%	0.00%

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Unpaid losses and loss adjustment expenses	$ 2.5	$ 1.5
Unearned premium reserves	3.8	1.9
Nondeductible accruals	0.5	0.9
Deferred rent	2.0	1.4
Research and development credits	0.9	0.9
Disallowed interest carryforward	9.6	3.7
Bad debt expense	1.2	0.8
Excess ceding commission	2.2	0.0
Deferred compensation	2.5	1.4
Stock compensation	5.4	0.5
Other	2.6	0.6
State net operating loss carryforward	10.2	5.3
Net operating loss carryforward	217.4	124.1
Gross deferred assets	260.8	143.0
Less valuation allowance	(255.0)	(137.3)
Total deferred tax assets, less valuation allowance	5.8	5.7
Deferred tax liabilities:
Internally developed software	2.7	2.1
Fixed assets	2.2	1.9
Deferred acquisition costs	0.6	0.4
Unrealized gains	0.1	1.2
Other	0.2	0.1
Deferred tax liabilities	5.8	5.7
Net deferred tax asset	$ 0.0	$ 0.0

INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Federal income tax rate	21.00%	21.00%	21.00%
Valuation allowance	$ 255.0	$ 137.3
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	1,042.6
Net operating loss carryforwards, subject to expiration	496.1
Net operating loss carryforwards, not subject to expiration	546.5
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	113.8
Research and development costs
Operating Loss Carryforwards [Line Items]
Tax credit carryforwards	$ 0.9

CAPITAL STOCK (Details) $ / shares in Units, $ in Millions	1 Months Ended		12 Months Ended
CAPITAL STOCK (Details) $ / shares in Units, $ in Millions	Oct. 31, 2021 USD ($) tranche $ / shares shares	Oct. 31, 2020 USD ($) vote $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($)	Oct. 01, 2021 tranche	Dec. 31, 2018 USD ($)
Temporary Equity [Line Items]
Preferred stock issued (in shares)			14,100,000	0
Preferred stock, outstanding (in shares)			14,100,000	0
Debt issuance costs \| $	$ 19.6
Carrying value \| $			$ 112.0	$ 0.0	$ 560.4		$ 189.6
Treasury Stock retired (in shares)	4,600,000
Retirement of treasury shares \| $	$ 0.8		0.0
Issuance costs \| $			10.5	0.0	$ 0.0
Shares authorized (in shares)		100,000,000
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0001
Par value (in dollars per share) \| $ / shares		$ 0.0001
Preferred stock, liquidation preference \| $			$ 126.5	$ 0.0
Preferred stock, dividend percentage			5.00%
Ownership percentage			100.00%
Root, Inc
Temporary Equity [Line Items]
Ownership percentage			9.90%
Carvana
Temporary Equity [Line Items]
Preferred stock issued (in shares)	14,100,000
Number of tranches \| tranche	8					8
Common stock, shares issued (in shares)			14,100,000
Conversion price (usd per share) \| $ / shares	$ 9.00		$ 9.00
IPO
Temporary Equity [Line Items]
Proceeds from sale of stock \| $		$ 1,100.0
Issuance costs \| $		$ 57.5
Common stock \| IPO
Temporary Equity [Line Items]
Stock sold in transaction (in shares)		24,200,000
Price of stock sold (in dollars per share) \| $ / shares		$ 27.00
Redeemable convertible preferred stock (as converted to common stock)
Temporary Equity [Line Items]
Debt issuance costs \| $			$ 14.5
Additional Paid-In Capital
Temporary Equity [Line Items]
Debt issuance costs \| $			1.0
Other Assets
Temporary Equity [Line Items]
Debt issuance costs \| $			$ 4.1
Short Term Warrant
Temporary Equity [Line Items]
Number of tranches \| tranche						3
Debt issuance costs \| $	$ 9.0
Class A Common Stock
Temporary Equity [Line Items]
Common stock, shares authorized (in shares)		1,000,000,000
Common stock, par value (in dollars per share) \| $ / shares			$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)			142,900,000	59,400,000
Common stock, shares outstanding (in shares)			142,900,000	59,400,000
Voting rights \| vote		1
Conversion of Stock			1
Carry value \| $			$ 0.0	$ 0.0
Class A Common Stock \| Private placement
Temporary Equity [Line Items]
Stock sold in transaction (in shares)		18,500,000
Class B Common Stock
Temporary Equity [Line Items]
Common stock, shares authorized (in shares)		269,000,000
Common stock, par value (in dollars per share) \| $ / shares			$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)			109,900,000	192,200,000
Common stock, shares outstanding (in shares)			109,900,000	192,200,000
Voting rights \| vote		10
Carry value \| $			$ 0.0	$ 0.0
Series A Preferred Stock \| Carvana
Temporary Equity [Line Items]
Proceeds from issuance of convertible stock \| $	$ 126.5

SHARE-BASED COMPENSATION - Narrative (Details) $ in Millions		3 Months Ended	12 Months Ended
	Oct. 01, 2021 tranche shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Oct. 31, 2021 tranche	Oct. 31, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense			$ 19.3	$ 28.8	$ 10.0
Carvana
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche	8					8
Short Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche	3
Expiration period	3 years	18 months
Long Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche	5
Expiration period	5 years
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense			4.4	28.2	10.0
Unrecognized compensation cost, options		$ 4.8	$ 4.8
Remaining cost to be recognized			5 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense			$ 14.9	0.6	0.0
Unrecognized compensation cost		66.1	$ 66.1
Remaining cost to be recognized			4 years
Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term			5 years
Risk free interest rate			0.90%
Expected dividend rate			0.00%
Expected volatility rate			45.00%
Total share-based compensation expense			$ 8.8
Unrecognized compensation cost		$ 35.7	$ 35.7
Remaining cost to be recognized			2 years
Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) \| shares	129,100,000
Class A Common Stock \| Short Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) \| shares		129,100,000	129,100,000
Class A Common Stock \| Long Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) \| shares		129,100,000	129,100,000
Tender offer \| Common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense				25.1	$ 8.6
Other liabilities
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise deposit liability		$ 0.1	$ 0.1	$ 1.3
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) \| shares		53,800,000	53,800,000
Annual shares increase, percentage of outstanding stock		4.00%	4.00%
Shares available for issuance (in shares) \| shares		21,900,000	21,900,000
2020 Plan \| Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares allowed to be issued (in shares) \| shares		120,000,000	120,000,000
2020 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual shares increase, percentage of outstanding stock							1.00%
2020 ESPP \| Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) \| shares							5,000,000
Shares outstanding, annual shares increase (in shares) \| shares							7,500,000

SHARE-BASED COMPENSATION- Schedule of Warrants (Details) - $ / shares shares in Millions	12 Months Ended
	Dec. 31, 2021	Oct. 01, 2021
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 0.0001
Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)		129.1
Short Term Warrant \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	129.1
Short Term Warrant \| Tranche 1
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 10.00
Short Term Warrant \| Tranche 1 \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	42.6
Grant date fair value per share (in dollars per share)	$ 0.42
Short Term Warrant \| Tranche 2
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 11.00
Short Term Warrant \| Tranche 2 \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	57.8
Grant date fair value per share (in dollars per share)	$ 0.37
Short Term Warrant \| Tranche 3
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 12.00
Short Term Warrant \| Tranche 3 \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	28.7
Grant date fair value per share (in dollars per share)	$ 0.18
Long Term Warrant \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	129.1
Long Term Warrant \| Tranche 1
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 10.00
Long Term Warrant \| Tranche 1 \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	25.8
Grant date fair value per share (in dollars per share)	$ 0.42
Long Term Warrant \| Tranche 2
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 12.50
Long Term Warrant \| Tranche 2 \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	26.9
Grant date fair value per share (in dollars per share)	$ 0.35
Long Term Warrant \| Tranche 3
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 15.00
Long Term Warrant \| Tranche 3 \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	27.1
Grant date fair value per share (in dollars per share)	$ 0.24
Long Term Warrant \| Tranche 4
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 22.50
Long Term Warrant \| Tranche 4 \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	26.1
Grant date fair value per share (in dollars per share)	$ 0.09
Long Term Warrant \| Tranche 5
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 30.00
Long Term Warrant \| Tranche 5 \| Class A Common Stock
Class of Warrant or Right [Line Items]
Shares issued (in shares)	23.2
Grant date fair value per share (in dollars per share)	$ 0.04

SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 19.3	$ 28.8	$ 10.0
RSUs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	14.9	0.6	0.0
Options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	4.4	28.2	10.0
Loss and loss adjustment expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	1.5	0.6	0.0
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	1.0	1.0	0.0
Other insurance (benefit) expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	1.6	1.0	0.0
Technology and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	4.5	5.8	0.0
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 10.7	$ 20.4	$ 10.0

SHARE-BASED COMPENSATION - RSU Activity (Details) - RSUs - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Number of Shares
Beginning balance (in shares)	0.4	0.0
Granted (in shares)	12.2	0.4
Vested (in shares)	(0.1)	0.0
Forfeited, expired or canceled (in shares)	(3.6)	0.0
Ending balance (in shares)	8.9	0.4
Weighted-Average Grant Date Fair Value per Share
Beginning balance, weighted-average grant date fair value (in dollars per shares)	$ 18.41	$ 0
Granted, weighted-average grant date fair value (in dollars per shares)	9.17	17.72
Vested, weighted-average grant date fair value (in dollars per shares)	18.09	7.25
Forfeited, expired or canceled, weighted-average grant date fair value (in dollars per share)	10.24	22.89
Ending balance, weighted-average grant date fair value (in dollars per shares)	$ 9.02	$ 18.41
Aggregate Intrinsic Value
Beginning balance	$ 6.2	$ 0.0
Vested	1.0	0.3
Ending balance	$ 27.4	$ 6.2

SHARE-BASED COMPENSATION - Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of Shares
Outstanding, beginning balance (in shares)	10.4	12.3
Granted (in shares)	0.0	1.6
Exercised (in shares)	(2.8)	(2.8)
Forfeited, expired or canceled (in shares)	(1.1)	(0.7)
Outstanding, ending balance (in shares)	6.5	10.4	12.3
Weighted-Average Exercise Price
Outstanding, beginning balance, weighted-average exercise price (in dollars per share)	$ 2,390,000	$ 1,420,000
Granted, weighted-average exercise price (in dollars per share)	10.82	7,760,000
Exercised, weighted-average exercise price (in dollars per share)	1.68	700,000
Forfeited, expired and canceled, weighted-average exercise price (in dollars per share)	4.44	5,000,000.00
Outstanding, ending balance, weighted-average exercise price (in dollars per share)	$ 2.36	$ 2,390,000	$ 1,420,000
Outstanding, weighted-average remaining contractual term (in years)	6 years 1 month 13 days	7 years 9 months	8 years 2 months 19 days
Outstanding, aggregate intrinsic value	$ 9.5	$ 137.7	$ 70.4
Exercised, aggregate intrinsic value	$ 24.1	$ 41.5

SHARE-BASED COMPENSATION - Exercise Price Range (Details)	12 Months Ended
	Dec. 31, 2021 $ / shares shares
$0.01 - $1.00
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range, min (in dollars per share)	$ 0.01
Exercise price range, max (in dollars per share)	$ 1.00
Options outstanding, number of shares (in shares) \| shares	2,700,000
Options outstanding, weighted-average exercise price (in dollars per share)	$ 0.30
Options outstanding, weighted-average remaining contractual term (in years)	4 years 9 months 3 days
Options exercisable, number of shares (in shares) \| shares	2,700,000
Options exercisable, weighted-average exercise price (in dollars per share)	$ 0.30
Options exercisable, weighted-average remaining contractual term (in years)	4 years 9 months 3 days
$1.00 - $2.50
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range, min (in dollars per share)	$ 1.00
Exercise price range, max (in dollars per share)	$ 2.50
Options outstanding, number of shares (in shares) \| shares	2,800,000
Options outstanding, weighted-average exercise price (in dollars per share)	$ 2.40
Options outstanding, weighted-average remaining contractual term (in years)	7 years 2 months 12 days
Options exercisable, number of shares (in shares) \| shares	2,800,000
Options exercisable, weighted-average exercise price (in dollars per share)	$ 2.40
Options exercisable, weighted-average remaining contractual term (in years)	7 years 2 months 12 days
$2.50 - $13.00
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range, min (in dollars per share)	$ 2.50
Exercise price range, max (in dollars per share)	$ 13.00
Options outstanding, number of shares (in shares) \| shares	1,000,000.0
Options outstanding, weighted-average exercise price (in dollars per share)	$ 7.67
Options outstanding, weighted-average remaining contractual term (in years)	6 years 10 months 9 days
Options exercisable, number of shares (in shares) \| shares	1,000,000.0
Options exercisable, weighted-average exercise price (in dollars per share)	$ 7.67
Options exercisable, weighted-average remaining contractual term (in years)	6 years 10 months 9 days

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Dec. 31, 2021 USD ($)
Purchase Obligations
2022	$ 8.1
2023	4.8
2024	0.9
2025	0.6
2026 and thereafter	0.0
Total	$ 14.4

OTHER COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,032.4	$ (374.0)	$ (102.7)
Net current period other comprehensive (loss) income	(5.2)	5.0	0.6
Ending balance	536.4	1,032.4	(374.0)
Change in net unrealized gains on investment:
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	5.6	0.6	0.0
Other comprehensive (loss) income before reclassifications	(2.8)	5.3	0.6
Net realized gains on investments reclassified from AOCI to net loss	(2.4)	(0.3)	0.0
Net current period other comprehensive (loss) income	(5.2)	5.0	0.6
Ending balance	$ 0.4	$ 5.6	$ 0.6

- Definition

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.

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+ Details

LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Net loss	$ (521.1)	$ (363.0)	$ (282.4)
Weighted-average common shares outstanding, basic (in shares)	249.2	75.5	33.9
Weighted-average common shares outstanding, diluted (in shares)	249.2	75.5	33.9
Loss per common share, basic (in dollars per share)	$ (2.09)	$ (4.81)	$ (8.33)
Loss per common share, diluted (in dollars per share)	$ (2.09)	$ (4.81)	$ (8.33)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

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

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+ Details

LOSS PER SHARE - Schedule of Anti-Dilutive Securities (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	160.8	15.8	179.0
Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Warrants outstanding (in shares)	129.1
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	6.5	10.4	12.3
Nonvested shares subject to repurchase
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	2.2	5.0	7.2
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	8.9	0.4	0.0
Redeemable convertible preferred stock (as converted to common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	14.1	0.0	158.9
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	129.1	0.0	0.0
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 (in shares)	0.0	0.0	0.6

STATUTORY FINANCIAL INFORMATION (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statutory Accounting Practices [Line Items]
Total	$ (160.3)	$ (149.3)	$ (157.6)
Statutory Capital and Surplus	$ 113.3	$ 116.4

GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUM (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Effects of Reinsurance [Line Items]
Gross premiums written	$ 742.6	$ 616.8	$ 451.1
Texas
Effects of Reinsurance [Line Items]
Gross premiums written	152.3	132.5	94.7
Georgia
Effects of Reinsurance [Line Items]
Gross premiums written	79.2	72.4	44.0
Louisiana
Effects of Reinsurance [Line Items]
Gross premiums written	42.2	28.0	15.3
Pennsylvania
Effects of Reinsurance [Line Items]
Gross premiums written	39.8	30.2	25.2
Utah
Effects of Reinsurance [Line Items]
Gross premiums written	33.8	26.0	17.6
Nevada
Effects of Reinsurance [Line Items]
Gross premiums written	33.6	19.1	2.4
Colorado
Effects of Reinsurance [Line Items]
Gross premiums written	33.5	20.2	8.1
South Carolina
Effects of Reinsurance [Line Items]
Gross premiums written	26.3	9.6	14.4
Missouri
Effects of Reinsurance [Line Items]
Gross premiums written	24.7	26.8	22.0
Arizona
Effects of Reinsurance [Line Items]
Gross premiums written	23.5	28.4	26.7
All others states
Effects of Reinsurance [Line Items]
Gross premiums written	$ 253.7	$ 223.6	$ 180.7
Geographic Concentration Risk \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	100.00%	100.00%	100.00%
Geographic Concentration Risk \| Texas \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	20.50%	21.50%	21.00%
Geographic Concentration Risk \| Georgia \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	10.70%	11.70%	9.80%
Geographic Concentration Risk \| Louisiana \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	5.70%	4.50%	3.40%
Geographic Concentration Risk \| Pennsylvania \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	5.40%	4.90%	5.60%
Geographic Concentration Risk \| Utah \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.60%	4.20%	3.90%
Geographic Concentration Risk \| Nevada \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.50%	3.10%	0.50%
Geographic Concentration Risk \| Colorado \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	4.50%	3.30%	1.80%
Geographic Concentration Risk \| South Carolina \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	3.50%	1.60%	3.20%
Geographic Concentration Risk \| Missouri \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	3.30%	4.30%	4.90%
Geographic Concentration Risk \| Arizona \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	3.20%	4.60%	5.90%
Geographic Concentration Risk \| All others states \| Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage	34.10%	36.30%	40.00%

SUBSEQUENT EVENTS (Details) $ / shares in Units, shares in Millions		1 Months Ended
	Jan. 20, 2022 USD ($) numberOfEmployee	Jan. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($)
Subsequent Event [Line Items]
Unamortized discount and debt issuance costs			$ 0	$ 21,500,000
Exercise price of warrants (in dollars per share) \| $ / shares			$ 0.0001
Subsequent event
Subsequent Event [Line Items]
Debt instrument, term		5 years
Additional warrant to purchase shares (in percent)		1.00%
Number of positions eliminated \| numberOfEmployee	330
Percentage of positions eliminated	20.00%
Accelerated amortization	$ 2,400,000
Subsequent event \| Employee Severance
Subsequent Event [Line Items]
Restructuring charges		$ 6,800,000
Payments for restructuring		4,300,000
Subsequent event \| Term Loan
Subsequent Event [Line Items]
Debt amount		300,000,000
Unamortized discount and debt issuance costs		$ 15,200,000
Interest rate (in percent)		0.26161%
Subsequent event \| Class A Common Stock
Subsequent Event [Line Items]
Warrants outstanding (in shares) \| shares		5.7
Exercise price of warrants (in dollars per share) \| $ / shares		$ 9.00
Subsequent event \| SOFR \| Term Loan
Subsequent Event [Line Items]
Variable rate percentage		9.00%

Schedule II: Condensed Combined Financial Information of Registrant - Balance Sheet (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Other investments	$ 4,700,000	$ 500,000
Cash and cash equivalents	706,000,000.0	1,112,800,000
Restricted cash	1,000,000.0	1,000,000.0
Other assets	73,800,000	56,300,000
Total assets	1,319,300,000	1,762,300,000
Liabilities:
Long-term debt and warrants	0	188,200,000
Accounts payable and accrued expenses	29,100,000	48,000,000.0
Other liabilities	39,900,000	10,300,000
Total liabilities	670,900,000	729,900,000
Commitments and Contingencies (Note 12)
Redeemable convertible preferred stock, $0.0001 par value, 14.1 and zero shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively (liquidation preference of $126.5 and zero, respectively) (Note 10)	112,000,000.0	0	$ 560,400,000	$ 189,600,000
Stockholders’ equity:
Treasury stock, at cost	0	(800,000)
Additional paid-in capital	1,806,100,000	1,775,600,000
Accumulated other comprehensive income	400,000	5,600,000
Accumulated loss	(1,270,100,000)	(748,000,000.0)
Total stockholders’ equity	536,400,000	1,032,400,000	$ (374,000,000.0)	$ (102,700,000)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	1,319,300,000	1,762,300,000
Class A Common Stock
Stockholders’ equity:
Common stock	0	0
Class B Common Stock
Stockholders’ equity:
Common stock	0	0
Parent Company
Assets
Other investments	4,700,000	500,000
Cash and cash equivalents	432,300,000	1,043,100,000
Restricted cash	1,000,000.0	1,000,000.0
Investments in subsidiaries	0	115,000,000.0
Other assets	49,300,000	34,600,000
Intercompany receivable	261,800,000	43,300,000
Total assets	749,100,000	1,237,500,000
Liabilities:
Long-term debt and warrants	0	188,200,000
Investments in subsidiaries	58,500,000	0
Accounts payable and accrued expenses	8,800,000	8,200,000
Other liabilities	24,500,000	8,700,000
Intercompany payable	8,900,000	0
Total liabilities	100,700,000	205,100,000
Commitments and Contingencies (Note 12)
Redeemable convertible preferred stock, $0.0001 par value, 14.1 and zero shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively (liquidation preference of $126.5 and zero, respectively) (Note 10)	112,000,000.0	0
Stockholders’ equity:
Treasury stock, at cost	0	(800,000)
Additional paid-in capital	1,806,100,000	1,775,600,000
Accumulated other comprehensive income	400,000	5,600,000
Accumulated loss	(1,270,100,000)	(748,000,000.0)
Total stockholders’ equity	536,400,000	1,032,400,000
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	749,100,000	1,237,500,000
Parent Company \| Class A Common Stock
Stockholders’ equity:
Common stock	0	0
Parent Company \| Class B Common Stock
Stockholders’ equity:
Common stock	$ 0	$ 0

Schedule II: Condensed Combined Financial Information of Registrant - Balance Sheet Additional (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
Condensed Balance Sheet Statements, Captions [Line Items]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock issued (in shares)	14,100,000	0
Preferred stock, outstanding (in shares)	14,100,000	0
Preferred stock, liquidation preference	$ 126.5	$ 0.0
Common stock, par value (in dollars per share)			$ 0.0001
Class A Common Stock
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	142,900,000	59,400,000
Common stock, shares outstanding (in shares)	142,900,000	59,400,000
Class B Common Stock
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	109,900,000	192,200,000
Common stock, shares outstanding (in shares)	109,900,000	192,200,000
Parent Company
Condensed Balance Sheet Statements, Captions [Line Items]
Preferred stock issued (in shares)	14,100,000	0
Preferred stock, outstanding (in shares)	14,100,000	0

Schedule II: Condensed Combined Financial Information of Registrant - Statement of Operations and Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Net investment income	$ 5.0	$ 5.4	$ 5.2
Total revenues	345.4	346.8	290.2
Operating expenses:
Sales and marketing	270.2	139.7	109.6
Other insurance expense (benefit)	5.0	(1.8)	52.3
Technology and development	65.5	52.9	24.0
General and administrative	97.6	78.5	43.0
Total operating expenses	830.6	632.1	550.3
Operating loss	(485.2)	(285.3)	(260.1)
Interest expense	(20.0)	(77.7)	(22.3)
Loss on early extinguishment of debt	(15.9)	0.0	0.0
Income tax expense	0.0	0.0	0.0
Net loss	(521.1)	(363.0)	(282.4)
Comprehensive loss	(526.3)	(358.0)	(281.8)
Parent Company
Revenues:
Net investment income	4.6	0.9	1.6
Total revenues	4.6	0.9	1.6
Operating expenses:
Sales and marketing	10.0	0.0	0.0
Other insurance expense (benefit)	2.9	0.0	0.0
Technology and development	42.5	19.5	3.5
General and administrative	5.3	37.8	15.7
Total operating expenses	60.7	57.3	19.2
Operating loss	(56.1)	(56.4)	(17.6)
Interest expense	(20.0)	(77.7)	(22.3)
Loss on early extinguishment of debt	(15.9)	0.0	0.0
Loss before income tax expense	(92.0)	(134.1)	(39.9)
Income tax expense	0.0	0.0	0.0
Net loss before equity net loss of subsidiaries	(92.0)	(134.1)	(39.9)
Net loss of subsidiaries	(429.1)	(228.9)	(242.5)
Net loss	(521.1)	(363.0)	(282.4)
Other comprehensive (loss) income of subsidiaries	(5.2)	5.0	0.6
Comprehensive loss	$ (526.3)	$ (358.0)	$ (281.8)

Schedule II: Condensed Combined Financial Information of Registrant - Statement of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (521.1)	$ (363.0)	$ (282.4)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	19.3	3.7	1.4
Warrant compensation expense	8.8	0.0	0.0
Tender offer	0.0	25.1	8.6
Depreciation and amortization	16.6	15.6	4.9
Loss on early extinguishment of debt	15.9	0.0	0.0
SAFE fair value adjustment	0.0	0.0	11.2
Warrants fair value adjustment	0.0	54.7	0.0
Paid-in-kind interest expense	10.6	9.1	0.8
Paid-in-kind interest paid	(20.5)	0.0	0.0
Change in fair value of equity securities	(3.8)	0.0	0.0
Changes in operating assets and liabilities:
Other assets	0.8	(21.7)	(3.7)
Accounts payable and accrued expenses	(19.2)	18.2	19.2
Other liabilities	10.3	2.1	2.7
Net cash used in operating activities	(403.4)	(287.2)	(127.2)
Cash flows from investing activities:
Purchases of investments	(17.0)	(158.4)	(138.1)
Proceeds from maturities, call and pay downs of investments	34.7	42.5	36.2
Capitalization of internally developed software	(6.6)	(5.4)	(5.5)
Purchases of fixed assets	(4.6)	(1.8)	(6.6)
Net cash provided by (used in) investing activities	76.9	(114.1)	(114.0)
Cash flows from financing activities:
Proceeds from issuance of common stock from IPO and concurrent private placements, net of issuance costs	0.0	1,098.1	0.0
Issuance costs	10.5	0.0	0.0
Proceeds from issuance of debt and related warrants, net of issuance costs	0.0	12.0	189.5
Repayments of long-term debt	(199.5)	(13.5)	(15.5)
Proceeds from SAFE	0.0	0.0	10.0
Purchases of treasury stock	0.0	(0.2)	0.0
Net cash (used in) provided by financing activities	(80.3)	1,098.5	535.5
Net (decrease) increase in cash, cash equivalents and restricted cash	(406.8)	697.2	294.3
Cash, cash equivalents and restricted cash at beginning of year	1,113.8	416.6	122.3
Cash, cash equivalents and restricted cash at end of year	707.0	1,113.8	416.6
Supplemental disclosures:
Interest paid	23.9	4.5	4.3
Federal income taxes paid	0.0	0.0	0.0
Leasehold improvements - non-cash	1.5	0.0	1.5
Conversion of debt to preferred stock - non-cash			11.2
Conversion of preferred stock to common stock - non-cash	0.0	560.4	0.0
Conversion of warrants to common stock - non-cash	0.0	75.0	0.0
Lease liabilities arising from obtaining right-of-use asset	9.9	0.0	0.0
Investment Agreement issuance costs - non-cash	9.1	0.0	0.0
Purchases of treasury stock - non-cash	0.0	0.5	0.0
Cash and cash equivalents	706.0	1,112.8
Restricted cash	1.0	1.0
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	707.0	1,113.8	416.6
Parent Company
Cash flows from operating activities:
Net loss	(521.1)	(363.0)	(282.4)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	19.3	3.7	1.4
Warrant compensation expense	8.8	0.0	0.0
Tender offer	0.0	25.1	8.6
Depreciation and amortization	13.1	11.8	3.5
Change in equity in subsidiaries	429.1	228.9	242.5
Loss on early extinguishment of debt	15.9	0.0	0.0
SAFE fair value adjustment	0.0	0.0	11.2
Warrants fair value adjustment	0.0	54.7	0.0
Paid-in-kind interest expense	10.6	9.1	0.8
Paid-in-kind interest paid	(20.5)	0.0	0.0
Change in fair value of equity securities	(3.8)	0.0	0.0
Changes in operating assets and liabilities:
Other assets	4.2	(15.5)	(1.2)
Accounts payable and accrued expenses	0.4	3.8	4.9
Other liabilities	(3.5)	2.1	0.6
Intercompany, net	(209.6)	(23.6)	(7.2)
Net cash used in operating activities	(257.1)	(62.9)	(17.3)
Cash flows from investing activities:
Purchases of investments	(0.4)	(0.5)	0.0
Proceeds from maturities, call and pay downs of investments	0.0	0.0	1.7
Capitalization of internally developed software	(6.6)	(5.4)	(3.9)
Purchases of fixed assets	(4.6)	(1.8)	(6.5)
Investment in subsidiaries	(261.8)	(201.9)	(333.0)
Net cash provided by (used in) investing activities	(273.4)	(209.6)	(341.7)
Cash flows from financing activities:
Proceeds from issuance of common stock from IPO and concurrent private placements, net of issuance costs	0.0	1,098.1	0.0
Proceeds from exercise of stock options and restricted stock units, net of tax proceeds/(withholding)	3.2	2.1	1.9
Proceeds from issuance of preferred stock and related warrants	126.5	0.0	349.6
Issuance costs	(10.5)	0.0	0.0
Proceeds from issuance of debt and related warrants, net of issuance costs	0.0	12.0	189.5
Repayments of long-term debt	(199.5)	(13.5)	(15.5)
Proceeds from SAFE	0.0	0.0	10.0
Purchases of treasury stock	0.0	(0.2)	0.0
Net cash (used in) provided by financing activities	(80.3)	1,098.5	535.5
Net (decrease) increase in cash, cash equivalents and restricted cash	(610.8)	826.0	176.5
Cash, cash equivalents and restricted cash at beginning of year	1,044.1	218.1	41.6
Cash, cash equivalents and restricted cash at end of year	433.3	1,044.1	218.1
Supplemental disclosures:
Interest paid	23.9	4.5	4.3
Federal income taxes paid	0.0	0.0	0.0
Leasehold improvements - non-cash	1.5	0.0	1.5
Conversion of debt to preferred stock - non-cash	0.0	0.0	11.2
Conversion of preferred stock to common stock - non-cash	0.0	560.4	0.0
Conversion of warrants to common stock - non-cash	0.0	75.0	0.0
Lease liabilities arising from obtaining right-of-use asset	9.9	0.0	0.0
Investment Agreement issuance costs - non-cash	9.1	0.0	0.0
Purchases of treasury stock - non-cash	0.0	0.5	0.0
Cash and cash equivalents	432.3	1,043.1
Restricted cash	1.0	1.0
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 433.3	$ 1,044.1	$ 218.1

Schedule II: Condensed Combined Financial Information of Registrant - Additional Information (Details) $ / shares in Units, shares in Millions		1 Months Ended
	Jan. 20, 2022 numberOfEmployee	Jan. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($)
Subsequent Event [Line Items]
Unamortized discount and debt issuance costs			$ 0	$ 21,500,000
Exercise price of warrants (in dollars per share) \| $ / shares			$ 0.0001
Parent Company
Subsequent Event [Line Items]
Investments in subsidiaries			$ 58,500,000	$ 0
Subsequent event
Subsequent Event [Line Items]
Debt instrument, term		5 years
Additional warrant to purchase shares (in percent)		1.00%
Number of positions eliminated \| numberOfEmployee	330
Percentage of positions eliminated	20.00%
Subsequent event \| Employee Severance
Subsequent Event [Line Items]
Restructuring charges		$ 6,800,000
Payments for restructuring		4,300,000
Subsequent event \| Term Loan
Subsequent Event [Line Items]
Debt amount		300,000,000
Unamortized discount and debt issuance costs		$ 15,200,000
Interest rate (in percent)		0.26161%
Subsequent event \| Class A Common Stock
Subsequent Event [Line Items]
Warrants outstanding (in shares) \| shares		5.7
Exercise price of warrants (in dollars per share) \| $ / shares		$ 9.00
Subsequent event \| SOFR \| Term Loan
Subsequent Event [Line Items]
Variable rate percentage		9.00%

Schedule V: Valuation and Qualifying Accounts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2021
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Allowance for premiums receivable	$ 5,400,000	$ 3,500,000
Provision for loss corridor	200,000	0
Accounting Standards Update 2016-13
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Transition adjustment				$ 1,000,000.0
Allowance for premiums receivable				800,000
Provision for loss corridor				$ 200,000
Valuation allowance for deferred tax assets
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	137,300,000	76,800,000	$ 19,400,000
Charged to costs and expenses	116,700,000	61,500,000	57,400,000
Charge to other accounts	1,000,000.0	(1,000,000.0)	0
Deductions	0	0	0
Balance at end of period	255,000,000.0	137,300,000	76,800,000
Allowance for premium receivables
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	3,500,000	2,000,000.0	0
Charged to costs and expenses	20,900,000	23,600,000	9,000,000.0
Charge to other accounts	800,000	0	0
Deductions	(19,800,000)	(22,100,000)	(7,000,000.0)
Balance at end of period	5,400,000	3,500,000	$ 2,000,000.0
Allowance for reinsurance recoverables
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	0
Charged to costs and expenses	0
Charge to other accounts	200,000
Deductions	0
Balance at end of period	$ 200,000	$ 0