Root abandons growth-at-all-costs strategy following $126mn Carvana deal
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Root abandons growth-at-all-costs strategy following $126mn Carvana deal

Bernard Goyder
August 13, 2021
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Root has agreed to a $126mn cash injection from auto retailer Carvana, as the auto insurer pledged to keep premium growth in the low single digits during Q3 and shrink its book of business in Q4, in a radical strategic turnaround for the listed InsurTech.

The change in growth forecast comes after Carvana agreed to buy $126mn worth of preferred equity, securities that will be convertible into Root common stock if the company’s share price hits $9 per share.

On

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Bernard Goyder
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