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COLUMBUS - Root, Inc. (NASDAQ: ROOT), a technology company known for its insurance solutions, and Hyundai Capital America (HCA) have entered into a strategic partnership aimed at innovating the auto finance and insurance sectors. The collaboration, announced today, intends to combine HCA’s auto financing leadership with Root’s mobile technology and customer-centric insurance models to enhance customer satisfaction and advance industry standards. Root enters this partnership with strong momentum, having achieved a remarkable 227% return over the past six months and maintaining a "Good" financial health score according to InvestingPro analysis.
The partnership is poised to create insurance solutions that leverage data to offer competitive rates tailored to HCA customers’ individual needs, thereby fostering a more personalized and connected experience. With a current market capitalization of $1.95 billion and revenue growth of 159% in the last twelve months, Root demonstrates significant market potential. "We are excited to partner with Hyundai Capital America, a company that shares our passion for innovation and customer-first solutions," said Alex Timm, CEO at Root, Inc. "This partnership allows us to build something unique for HCA drivers, while further diversifying and expanding our insurance offerings across multiple distribution channels." For detailed insights into Root’s valuation and growth metrics, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial health scores and growth projections.
Marcelo Brutti, President and CEO of Hyundai Capital America, emphasized the commitment to customer-centric innovation and technology. "Through this partnership, we aim to unlock new possibilities and improve the ownership journey for our drivers," he said.
The collaboration is expected to make insurance more accessible and personalized, reflecting the way people live and drive today. Both companies share a vision of enhancing the automotive space through technology, data, and customer-focused strategies.
Hyundai Capital America is a leading auto finance company in the U.S., serving Hyundai, Genesis, and Kia brands, and has supported over 2.7 million customers and more than 1,800 dealers nationwide. Root, Inc., based in Columbus, Ohio, has revolutionized insurance through data science and technology, with over 15 million app downloads and more than 30 billion miles of driving data collected. The company maintains a healthy current ratio of 2.38 and generated $195.3 million in levered free cash flow over the last twelve months. InvestingPro subscribers can access 15+ additional key metrics and expert insights about Root’s financial performance and market position.
The release contains forward-looking statements about the potential benefits of the partnership, which are subject to risks, uncertainties, and conditions. These statements do not guarantee future performance and should be considered with caution.
This report is based on a press release statement and aims to provide a factual overview of the strategic partnership between Root, Inc. and Hyundai Capital America.
In other recent news, Root Inc. reported impressive fourth-quarter and full-year 2024 earnings, outperforming analysts’ expectations. The company achieved an earnings per share of $1.30, significantly better than the projected loss of $0.52. Revenue reached $326.7 million, surpassing the forecasted $291.34 million. Root’s net income for the quarter was $22 million, marking a $46 million improvement from the previous year. The company also reported writing $1.3 billion in gross premiums and a 21% year-over-year increase in policies in force, totaling 414,000.
Root Inc. expanded its market reach to cover 76% of the U.S. population and reported a reduction in reinsurance costs. The company’s strategic focus on expanding its market footprint and refining pricing models contributed to these positive results. Analysts from KBW and Wells Fargo noted Root’s strong underwriting performance and the potential for selective rate decreases in certain geographies. Root’s CEO, Alex Timm, emphasized the company’s long-term growth strategy and its commitment to sustainable growth through disciplined underwriting and innovative technology.
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