Earnings

The company’s Q3 organic growth decelerated 8.6 points sequentially and 15.2 points year-on-year to 13.7%.

Q3 reserve releases were driven by an improvement in claims developments in most lines of its long-tail unit, as well as in its energy and property lines in the short-tail book.

The gross and net losses represented 52 points of the gross loss ratio and 44 points of the net loss ratio.

Total revenues at the Chicago-based wholesale broker increased 16.7% to $412mn from Q3 last year, driven by the expansion of the E&S market, organic growth and M&A.

The company retained $10mn of $27mn in gross losses from Ian, which accounted for 3.4 points on the loss ratio.

The Illinois-based carrier said its crop insurance business contributed almost 40% of the growth in the region.

The CEO added that Root was in a “very conservative stance” with its loss trend assumption, as the actual numbers seen right now were lower.

Floridians had a hard quarter, but they are fighting to regain stability after Ian.

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The executive added that the company's expected retention from a second event is estimated at $31.8mn.

The company reported a 56.8% improvement YoY in its operating losses along with a 33% decline in auto policies in force.

Overall, the carrier posted $408mn of cat and man-made losses in Q3, up from $333mn a year earlier, of which $297mn related to Hurricane Ida and the European floods.