Root (ROOT) 10-Q 9 Nov 22 2022 Q3 Quarterly report Financial data

COVER PAGE

COVER PAGE - shares shares in Millions	9 Months Ended
	Sep. 30, 2022	Nov. 02, 2022
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-39658
Entity Registrant Name	ROOT, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-2717903
Entity Address, Address Line One	80 E. Rich Street
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43215
City Area Code	866
Local Phone Number	980-9431
Title of 12(b) Security	Class A common stock,$0.0001 par value per share
Trading Symbol	ROOT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001788882
Current Fiscal Year End Date	--12-31
Class A Shares
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		9.1
Class B Shares
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		5

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Millions		Sep. 30, 2022	Dec. 31, 2021
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost: $126.6 and $129.5 at September 30, 2022 and December 31, 2021, respectively)		$ 119.7	$ 129.9
Short-term investments (amortized cost: $0.4 and zero at September 30, 2022 and December 31, 2021, respectively)		0.4	0
Other investments		4.4	4.7
Total investments		124.5	134.6
Cash and cash equivalents		819.7	706
Restricted cash		1	1
Premiums receivable, net of allowance of $3.3 and $5.4 at September 30, 2022 and December 31, 2021, respectively		129.9	148.1
Reinsurance recoverable and receivable, net of allowance of $0.1 and $0.2 at September 30, 2022 and December 31, 2021, respectively		136	155
Prepaid reinsurance premiums		86.2	100.8
Other assets		86.9	73.8
Total assets		1,384.2	1,319.3
Liabilities:
Loss and loss adjustment expense reserves		294.2	320.2
Unearned premiums		157.3	180.1
Long-term debt and warrants		293.9	0
Reinsurance premiums payable		110.4	101.6
Accounts payable and accrued expenses		40.1	29.1
Other liabilities		45.4	39.9
Total liabilities		941.3	670.9
Commitments and Contingencies (Note 11)
Redeemable convertible preferred stock, $0.0001 par value, 100.0 shares authorized, 14.1 shares issued and outstanding at September 30, 2022 and December 31, 2021 (liquidation preference of $126.5)		112	112
Stockholders’ equity:
Additional paid-in capital		1,838.2	1,806.1
Accumulated other comprehensive (loss) income		(6.9)	0.4
Accumulated loss		(1,500.4)	(1,270.1)
Total stockholders’ equity		330.9	536.4
Total liabilities, redeemable convertible preferred stock and stockholders’ equity		1,384.2	1,319.3
Class A Shares
Stockholders’ equity:
Common stock, value	[1]	0	0
Class B Shares
Stockholders’ equity:
Common stock, value	[1]	$ 0	$ 0
[1]Reflects the 1-for-18 reverse stock split that became effective August 12, 2022. Refer to Note 2, “Basis of Presentation and Summary of Significant Accounting Policies.”

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED (Parenthetical) shares in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares
Amortized cost, fixed maturities | $	$ 126,600,000	$ 129,500,000
Amortized cost, short term investments | $	400,000	0
Allowance for premiums receivable | $	3,300,000	5,400,000
Allowance for credit loss | $	$ 100,000	$ 200,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100	100
Preferred stock, shares issued (in shares)	14.1	14.1
Preferred stock, shares outstanding (in shares)	14.1	14.1
Preferred stock, liquidation preference | $	$ 126,500,000	$ 126,500,000
Conversion ratio	0.05556
Class A Shares
Common stock, par value (in dollars per share) | $ / shares	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000	1,000
Common stock, shares issued (in shares)	9.1	7.9
Common stock, shares outstanding (in shares)	9.1	7.9
Class B Shares
Common stock, par value (in dollars per share) | $ / shares	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	269	269
Common stock, shares issued (in shares)	5	6.1
Common stock, shares outstanding (in shares)	5	6.1

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - UNAUDITED - USD ($) shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Net premiums earned		$ 68.6	$ 85.1	$ 221.6	$ 225.4
Net investment income		0.9	1	2.2	2.6
Net realized gains on investments		0	0	1.1	2.4
Fee and other income		4.2	7.7	14.6	21.8
Total revenues		73.7	93.8	239.5	252.2
Operating expenses:
Loss and loss adjustment expenses		80.9	114.4	273.3	284.5
Sales and marketing		5.7	65.4	45.8	245.5
Other insurance expense (benefit)		1.1	(4.5)	(5.7)	(3.6)
Technology and development		14.3	18	46.1	49.3
General and administrative		26.4	27.4	86.3	69.8
Total operating expenses		128.4	220.7	445.8	645.5
Operating loss		(54.7)	(126.9)	(206.3)	(393.3)
Interest expense		(9.3)	(6.1)	(24)	(17.9)
Loss before income tax expense		(64)	(133)	(230.3)	(411.2)
Income tax expense		0	0	0	0
Net loss		(64)	(133)	(230.3)	(411.2)
Other comprehensive loss:
Changes in net unrealized losses on investments		(2.3)	(0.5)	(7.3)	(4)
Comprehensive loss		$ (66.3)	$ (133.5)	$ (237.6)	$ (415.2)
Loss per common share: basic (both Class A and B) (in dollars per share)	[1]	$ (4.54)	$ (9.57)	$ (16.45)	$ (29.80)
Loss per common share: diluted (both Class A and B) (in dollars per share)	[1]	$ (4.54)	$ (9.57)	$ (16.45)	$ (29.80)
Weighted-average common shares outstanding: basic (both Class A and B) (in shares)	[1]	14.1	13.9	14	13.8
Weighted-average common shares outstanding: diluted (both Class A and B) (in shares)	[1]	14.1	13.9	14	13.8
[1]Reflects the 1-for-18 reverse stock split that became effective August 12, 2022. Refer to Note 2, “Basis of Presentation and Summary of Significant Accounting Policies.”

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - UNAUDITED (Parenthetical)		9 Months Ended
	Aug. 12, 2022	Sep. 30, 2022
Income Statement [Abstract]
Conversion ratio	0.0556	0.05556

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - UNAUDITED - USD ($) shares in Millions, $ in Millions		Total	Class A Shares	Class B Shares	Class A and Class B Common Stock(1)	[1]	Class A and Class B Common Stock(1) Class A Shares		Class A and Class B Common Stock(1) Class B Shares		Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Loss
Beginning balance (in shares) at Dec. 31, 2020		0
Beginning balance at Dec. 31, 2020		$ 0
Ending balance (in shares) at Sep. 30, 2021		0
Ending balance at Sep. 30, 2021		$ 0
Beginning balance (in shares) at Dec. 31, 2020	[1]						3.3		10.7
Treasury stock, beginning balance (in shares) at Dec. 31, 2020											0.3
Beginning balance at Dec. 31, 2020		1,032.4			$ 0						$ (0.8)	$ 1,775.6	$ 5.6	$ (748)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss		(411.2)												(411.2)
Other comprehensive loss		(4)											(4)
Conversion of Class B to Class A (in shares)	[1]						3.7		(3.7)
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes		4.3										4.3
Reclassification of early-exercised stock options from liabilities		(0.2)										(0.2)
Common stock—share-based compensation expense		14.7										14.7
Ending balance (in shares) at Sep. 30, 2021	[1]						7		7
Treasury stock, ending balance (in shares) at Sep. 30, 2021											0.3
Ending balance at Sep. 30, 2021		$ 636			0						$ (0.8)	1,794.4	1.6	(1,159.2)
Beginning balance (in shares) at Jun. 30, 2021		0
Beginning balance at Jun. 30, 2021		$ 0
Ending balance (in shares) at Sep. 30, 2021		0
Ending balance at Sep. 30, 2021		$ 0
Beginning balance (in shares) at Jun. 30, 2021	[1]						6.3		7.7
Treasury stock, beginning balance (in shares) at Jun. 30, 2021											0.3
Beginning balance at Jun. 30, 2021		762			0						$ (0.8)	1,786.9	2.1	(1,026.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss		(133)												(133)
Other comprehensive loss		(0.5)											(0.5)
Conversion of Class B to Class A (in shares)	[1]						0.7		(0.7)
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes		0.9										0.9
Reclassification of early-exercised stock options from liabilities		(0.9)										(0.9)
Common stock—share-based compensation expense		7.5										7.5
Ending balance (in shares) at Sep. 30, 2021	[1]						7		7
Treasury stock, ending balance (in shares) at Sep. 30, 2021											0.3
Ending balance at Sep. 30, 2021		$ 636			0						$ (0.8)	1,794.4	1.6	(1,159.2)
Beginning balance (in shares) at Dec. 31, 2021		14.1
Beginning balance at Dec. 31, 2021		$ 112
Ending balance (in shares) at Sep. 30, 2022		14.1
Ending balance at Sep. 30, 2022		$ 112
Beginning balance (in shares) at Dec. 31, 2021			7.9	6.1			7.9	[1]	6.1	[1]
Treasury stock, beginning balance (in shares) at Dec. 31, 2021											0
Beginning balance at Dec. 31, 2021		536.4			0						$ 0	1,806.1	0.4	(1,270.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss		(230.3)												(230.3)
Other comprehensive loss		(7.3)											(7.3)
Conversion of Class B to Class A (in shares)	[1]						1.1		(1.1)
Conversion of Class B to Class A		$ 0
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)		0.1					0.1	[1]
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes		$ 0.4										0.4
Reclassification of early-exercised stock options from liabilities		0.1										0.1
Common stock—share-based compensation expense		21.8										21.8
Warrant compensation expense		10.3										10.3
Warrants issuance costs		(1.1)										1.1
Term Loan warrants issued		0.6										0.6
Ending balance (in shares) at Sep. 30, 2022			9.1	5			9.1	[1]	5	[1]
Treasury stock, ending balance (in shares) at Sep. 30, 2022											0
Ending balance at Sep. 30, 2022		$ 330.9			0						$ 0	1,838.2	(6.9)	(1,500.4)
Beginning balance (in shares) at Jun. 30, 2022		14.1
Beginning balance at Jun. 30, 2022		$ 112
Ending balance (in shares) at Sep. 30, 2022		14.1
Ending balance at Sep. 30, 2022		$ 112
Beginning balance (in shares) at Jun. 30, 2022	[1]						8.9		5.2
Treasury stock, beginning balance (in shares) at Jun. 30, 2022											0
Beginning balance at Jun. 30, 2022		388			0						$ 0	1,829	(4.6)	(1,436.4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss		(64)												(64)
Other comprehensive loss		(2.3)											(2.3)
Conversion of Class B to Class A (in shares)	[1]						0.2		(0.2)
Conversion of Class B to Class A		0
Common stock—share-based compensation expense		7.8										7.8
Warrant compensation expense		1.5										1.5
Warrants issuance costs		(0.1)										0.1
Ending balance (in shares) at Sep. 30, 2022			9.1	5			9.1	[1]	5	[1]
Treasury stock, ending balance (in shares) at Sep. 30, 2022											0
Ending balance at Sep. 30, 2022		$ 330.9			$ 0						$ 0	$ 1,838.2	$ (6.9)	$ (1,500.4)
[1]Reflects the 1-for-18 reverse stock split that became effective August 12, 2022. Refer to Note 2, “Basis of Presentation and Summary of Significant Accounting Policies.”

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - UNAUDITED (Parenthetical)		9 Months Ended
	Aug. 12, 2022	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Conversion ratio	0.0556	0.05556

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (230.3)	$ (411.2)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	21.8	14.7
Warrant compensation expense	10.3	0
Depreciation and amortization	9.5	11
Bad debt expense	13.7	14.7
Payment-in-kind interest expense	0	9.3
Net realized gains on investments	(1.1)	(2.4)
Gain on lease modification	(0.2)	0
Change in fair value of equity securities	0	(0.4)
Changes in operating assets and liabilities:
Premiums receivable	4.5	(60.4)
Reinsurance recoverable and receivable	19	(51.6)
Prepaid reinsurance premiums	14.6	(1.9)
Other assets	(11.1)	(1.6)
Losses and loss adjustment expenses reserves	(26)	63.5
Unearned premiums	(22.8)	53.8
Reinsurance premiums payable	8.8	(0.1)
Accounts payable and accrued expenses	17.5	(7.1)
Other liabilities	7.9	5.4
Net cash used in operating activities	(163.9)	(364.3)
Cash flows from investing activities:
Purchases of investments	(30.8)	(10.4)
Proceeds from maturities, call and pay downs of investments	26.7	30.6
Sales of investments	7.1	70.2
Capitalization of internally developed software	(7.4)	(4.8)
Purchases of fixed assets	0	(2.3)
Purchases of indefinite-lived intangible assets and transaction costs	(1.3)	0
Net cash (used in) provided by investing activities	(5.7)	83.3
Cash flows from financing activities:
Proceeds from exercise of stock options and restricted stock units, net of tax proceeds/(withholding)	0.3	3
Proceeds from issuance of debt and related warrants	286	0
Payment of preferred stock and related warrants issuance costs	(3)	0
Repayments of long-term debt	0	(0.7)
Net cash provided by financing activities	283.3	2.3
Net increase (decrease) in cash, cash equivalents and restricted cash	113.7	(278.7)
Cash, cash equivalents and restricted cash at beginning of period	707	1,113.8
Cash, cash equivalents and restricted cash at end of period	$ 820.7	$ 835.1

NATURE OF BUSINESS

NATURE OF BUSINESS	9 Months Ended
	Sep. 30, 2022
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 SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation —In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. All such adjustments are of a normal and recurring nature. These condensed consolidated financial statements are unaudited and, accordingly, should be read in conjunction with the consolidated financial statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 23, 2022, or the 2021 10-K. Basis of Consolidation —The unaudited condensed consolidated financial statements include the accounts of Root, Inc. and its subsidiaries, all of which are wholly owned. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. All intercompany accounts and transactions have been eliminated. Use of Estimates —The preparation of the unaudited condensed consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our unaudited condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, or LAE, allowance for expected credit losses on premium receivables and valuation allowances for income taxes. Reverse Stock Split — In August 2022, a subcommittee of our Board of Directors approved a reverse stock split of our Class A and Class B common stock at a ratio of 1-for-18. On August 12, 2022, we filed a Certificate of Amendment to our Amended and Restated Certificate of Incorporation to effect a 1-for-18 reverse stock split of our Class A and Class B common stock. As a result of the reverse stock split, every 18 shares of our issued or outstanding pre-reverse split common stock of each class were combined into one share of common stock of such class. No fractional shares were issued upon the reverse stock split. On August 15, 2022, our Class A common stock began trading on a split-adjusted basis on the Nasdaq Stock Market. In connection with the reverse stock split, there was no change to the shares authorized or in the par value per share of $0.0001. In addition, there was no change to the number of shares issued or outstanding for our Series A Preferred Stock. The conversion price for our Series A Preferred Stock was adjusted to $162.00 and the exercise price and number of warrant shares for each of our outstanding warrants were also proportionately adjusted. Accordingly, all historical per share data, number of shares outstanding and other common stock equivalents for the periods presented in the accompanying condensed consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the reverse stock split. COVID-19 —In March 2020, the World Health Organization declared COVID-19 to be a global pandemic. 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. Cash, Cash Equivalents and Restricted Cash —The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amount in the condensed consolidated statements of cash flows: As of September 30, December 31, 2022 2021 (dollars in millions) Cash and cash equivalents $ 819.7 $ 706.0 Restricted cash 1.0 1.0 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 820.7 $ 707.0

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	INVESTMENTS The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in millions) Fixed maturities: U.S. Treasury securities and agencies $ 12.6 $ — $ — $ (0.9) $ 11.7 Municipal securities 20.3 — — (1.3) 19.0 Corporate debt securities 55.4 — — (3.1) 52.3 Residential mortgage-backed securities 4.4 — — (0.3) 4.1 Commercial mortgage backed securities 26.1 — — (1.2) 24.9 Other debt obligations 7.8 — — (0.1) 7.7 Total fixed maturities 126.6 — — (6.9) 119.7 Short-term investments 0.4 — — — 0.4 Total $ 127.0 $ — $ — $ (6.9) $ 120.1 December 31, 2021 Amortized Cost Allowance for Expected Credit Losses 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 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 September 30, 2022 and December 31, 2021. We do not intend to sell 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 as of September 30, 2022 and December 31, 2021. Other Investments As of September 30, 2022 and December 31, 2021, other investments related to our private equity investments were $4.4 million and $4.7 million, respectively. We recognized zero and $1.2 million of realized gains for the three and nine months ended September 30, 2022, respectively. We recorded the sale of one of our private equity investments within net realized gains on investments in our condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2022. There were no impairment losses recognized on private equity investments for the three and nine months ended September 30, 2022 and 2021. The following tables reflect the gross unrealized losses and fair value of short-term investments and available-for-sale fixed maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021: September 30, 2022 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (dollars in millions) Fixed maturities: U.S. Treasury securities and agencies $ 4.2 $ (0.1) $ 6.5 $ (0.8) $ 10.7 $ (0.9) Municipal securities 14.7 (0.8) 4.3 (0.5) 19.0 (1.3) Corporate debt securities 47.6 (2.6) 4.7 (0.5) 52.3 (3.1) Residential mortgage-backed securities 1.4 (0.1) 1.7 (0.2) 3.1 (0.3) Commercial mortgage-backed securities 22.3 (0.9) 2.6 (0.3) 24.9 (1.2) Other debt obligations 6.3 (0.1) — — 6.3 (0.1) Total fixed maturities 96.5 (4.6) 19.8 (2.3) 116.3 (6.9) Short-term investments 0.4 — — — 0.4 — Total $ 96.9 $ (4.6) $ 19.8 $ (2.3) $ 116.7 $ (6.9) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (dollars in millions) Fixed maturities: 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 fixed maturities $ 39.7 $ (0.4) $ 16.1 $ (0.4) $ 55.8 $ (0.8) The following table reflects the gross and net realized gains and losses on short-term investments, available-for-sale fixed maturities and other investments that have been included in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Realized gains on investments $ — $ — $ 1.2 $ 2.5 Realized losses on investments — — (0.1) (0.1) Net realized gains on investments $ — $ — $ 1.1 $ 2.4 The following table sets forth the amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities by contractual maturity at September 30, 2022: September 30, 2022 Amortized Cost Fair Value (dollars in millions) Due in one year or less $ 22.9 $ 22.4 Due after one year through five years 80.8 76.0 Due five years through 10 years 10.8 10.0 Due after 10 years 12.5 11.7 Total $ 127.0 $ 120.1 The following table sets forth the components of net investment income for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Interest on bonds $ 0.6 $ 0.6 $ 1.7 $ 1.9 Interest on deposits and cash equivalents 0.6 0.2 1.2 0.8 Other investments (1) — 0.4 — 0.4 Total 1.2 1.2 2.9 3.1 Investment expense (0.3) (0.2) (0.7) (0.5) Net investment income $ 0.9 $ 1.0 $ 2.2 $ 2.6 ______________ (1) Unrealized gains resulting from observable price changes related to our private equity investments. The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at September 30, 2022 and December 31, 2021: September 30, 2022 Amortized Cost Fair Value % of Total S&P Global rating or equivalent (dollars in millions) AAA $ 61.1 $ 57.8 48.1 % AA+, AA, AA-, A-1 17.9 16.9 14.1 A+, A, A- 36.2 34.0 28.3 BBB+, BBB, BBB- 11.8 11.4 9.5 Total $ 127.0 $ 120.1 100.0 % December 31, 2021 Amortized Cost Fair Value % of Total 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 %

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables provide information about our financial assets measured and reported at fair value as of September 30, 2022 and December 31, 2021: September 30, 2022 Level 1 Level 2 Level 3 Total (dollars in millions) Assets Fixed maturities: U.S. Treasury securities and agencies $ 10.0 $ 1.7 $ — $ 11.7 Municipal securities — 19.0 — 19.0 Corporate debt securities — 52.3 — 52.3 Residential mortgage-backed securities — 4.1 — 4.1 Commercial mortgage-backed securities — 24.9 — 24.9 Other debt obligations — 7.7 — 7.7 Total fixed maturities 10.0 109.7 — 119.7 Short-term investments — 0.4 — 0.4 Cash equivalents 124.6 — — 124.6 Total assets at fair value $ 134.6 $ 110.1 $ — $ 244.7 December 31, 2021 Level 1 Level 2 Level 3 Total (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 We estimate the fair value of all our different classes of Level 2 fixed 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. All significant inputs were observable in the active markets. Fair Value of Long-Term Debt The carrying amount of long-term debt is recorded at the unpaid balance, net of debt issuance costs. The fair value of outstanding long-term debt is classified within Level 2 of the fair value hierarchy. The fair value is based on a model referencing observable interest rates and spreads to project and discount cash flows to present value. As of September 30, 2022 and December 31, 2021, the carrying amounts and fair values of these financial instruments were as follows: Carrying Amount as of September 30, 2022 Estimated Fair Value as of September 30, 2022 Carrying Amount as of December 31, 2021 Estimated Fair Value as of December 31, 2021 (dollars in millions) Long-term debt $ 293.9 $ 306.3 $ — $ —

LOSS AND LOSS ADJUSTMENT EXPENS

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES	9 Months Ended
	Sep. 30, 2022
Insurance [Abstract]
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES	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: Nine Months Ended September 30, 2022 2021 (dollars in millions) Gross loss and LAE reserves, January 1 $ 320.2 $ 237.2 Reinsurance recoverable on unpaid losses (79.5) (79.6) Net loss and LAE reserves, January 1 240.7 157.6 Net incurred loss and LAE related to: Current year 273.5 293.8 Prior years (0.2) (9.3) Total incurred 273.3 284.5 Net paid loss and LAE related to: Current year 155.5 150.4 Prior years 135.6 72.6 Total paid 291.1 223.0 Net loss and LAE reserves, September 30 222.9 219.1 Plus reinsurance recoverable on unpaid losses 71.3 81.6 Gross loss and LAE reserves, September 30 $ 294.2 $ 300.7 Incurred losses and LAE attributable to prior accident years was a decrease of $0.2 million and $9.3 million for the nine months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022, the development of incurred losses and LAE related to prior periods was a result of lower-than-expected LAE on prior accident period claims, partially offset by higher-than-expected reported losses on property damage and collision claims due to inflation. For the nine months ended September 30, 2021, the development of incurred losses related to prior periods was primarily due to lower-than-expected reported losses on bodily injury claims, and higher than expected recoveries from subrogation and salvage from 2020 material damage claims.

REINSURANCE

REINSURANCE	9 Months Ended
	Sep. 30, 2022
Insurance [Abstract]
REINSURANCE	REINSURANCE The following table reflects amounts affecting the condensed consolidated statements of operations and comprehensive loss for reinsurance for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Premiums written: Direct $ 139.6 $ 197.0 $ 443.9 $ 576.6 Assumed 11.1 7.6 34.1 7.6 Ceded (81.0) (107.5) (264.5) (306.8) Net premiums written $ 69.7 $ 97.1 $ 213.5 $ 277.4 Premiums earned: Direct $ 144.5 $ 188.5 $ 469.3 $ 529.4 Assumed 10.8 0.9 31.5 0.9 Ceded (86.7) (104.3) (279.2) (304.9) Net premiums earned $ 68.6 $ 85.1 $ 221.6 $ 225.4 Losses and LAE incurred: Direct $ 126.1 $ 193.7 $ 430.0 $ 504.6 Assumed 11.3 1.9 35.7 1.9 Ceded (56.5) (81.2) (192.4) (222.0) Net losses and LAE incurred $ 80.9 $ 114.4 $ 273.3 $ 284.5 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 to the policyholder for such defaulted amounts. Gross written premium by state is as follows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amount % of Total Amount % of Total Amount % of Total Amount % of Total State (dollars in millions) Texas $ 26.2 17.4 % $ 40.4 19.7 % $ 89.5 18.7 % $ 120.8 20.7 % Georgia 15.0 10.0 21.6 10.6 48.8 10.2 61.3 10.5 Colorado 10.3 6.8 9.3 4.5 30.8 6.4 25.7 4.4 Louisiana 8.7 5.8 12.3 6.0 27.6 5.8 32.9 5.6 Pennsylvania 9.1 6.0 11.8 5.8 26.8 5.6 31.5 5.4 Utah 8.0 5.3 9.1 4.4 24.1 5.0 25.6 4.4 Nevada 7.3 4.8 9.5 4.6 23.0 4.8 26.0 4.5 South Carolina 4.5 3.0 8.0 3.9 16.4 3.4 20.6 3.5 Oklahoma 5.2 3.5 6.0 2.9 16.1 3.4 17.5 3.0 Indiana 4.7 3.1 6.0 2.9 14.3 3.0 17.2 2.9 All others states 51.7 34.3 70.6 34.7 160.6 33.7 205.1 35.1 Total $ 150.7 100.0 % $ 204.6 100.0 % $ 478.0 100.0 % $ 584.2 100.0 %

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT In January 2022, we entered into a $300.0 million five-year term loan, or Term Loan, with the principal amount due and payable upon maturity on January 27, 2027. Interest is payable quarterly and is determined on a floating interest rate currently calculated on the Secured Overnight Financing Rate, or SOFR, with a 1.0% floor, plus 9.0%, plus 0.26161% per annum. As part of the loan agreement, we issued warrants to the lender to purchase 0.3 million shares of our Class A common stock at a strike price of $162.00 per share. Such warrants will expire on the later of the repayment in full of the Term Loan or January 27, 2027. The total fair value of these warrants at January 27, 2022 was $0.6 million. The Term Loan contains debt covenants which, among other things, require cash and cash equivalents held in entities other than our insurance subsidiaries to be at least $200.0 million at all times. This threshold may be reduced to $150.0 million under two sets of circumstances: issuing 62,500 insurance policies through our Carvana embedded product and achieving a ratio of direct contribution to gross earned premium of 12%; or ceasing any customer acquisition spend outside of the Carvana commercial agreement and reducing our monthly cash burn to no greater than $12.0 million. Under the latter set of circumstances, we must issue additional warrants to purchase shares of our Class A common stock equal to 1.0% of the aggregate number of issued and outstanding shares of Class A common stock on a fully-diluted basis as of the date the threshold is reduced. The additional warrants, if issued, would have an exercise price equal to the 30-trading day volume weighted average price of the Class A common stock 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 or the date that falls 12 months after the issuance of these warrants. As of September 30, 2022, the fair value of these 1.0% warrants was immaterial to our condensed consolidated financial statements. The following summarizes the carrying value of long-term debt as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (dollars in millions) Term Loan $ 300.0 $ — Accrued interest payable 6.5 — Unamortized discount, debt issuance costs and warrants (12.6) — Total $ 293.9 $ —

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The consolidated effective tax rate was zero for the three and nine months ended September 30, 2022 and 2021, respectively. The difference between these rates and the U.S. federal income tax rate of 21% was primarily due to a full valuation allowance on our U.S. deferred tax assets. As of September 30, 2022 and December 31, 2021, we did not have any unrecognized tax benefits for uncertain tax positions and had no interest or penalties related to uncertain tax positions. During 2022, we performed an estimated ownership change analysis and determined that we have experienced an ownership change under Section 382 of the Internal Revenue Code, or the Code. Accordingly, use of a portion of our net operating losses and tax credit carryforwards are subject to an annual limitation under Section 382 of the Code. We do not expect to lose any deferred tax assets related to our net operating losses as a result of these limitations.

RESTRUCTURING COSTS

RESTRUCTURING COSTS	9 Months Ended
	Sep. 30, 2022
Restructuring and Related Activities [Abstract]
RESTRUCTURING COSTS	RESTRUCTURING COSTS In January 2022, we instituted an organizational realignment, which included an involuntary workforce reduction, due to inflation and loss cost trends and to further drive efficiency and increased focus on our strategic priorities (the “January 2022 Restructuring”). As a result of the January 2022 Restructuring, we incurred severance, benefits and related costs, as well as accelerated expense for software that no longer has economic benefit. Additionally, we ceased using certain floors of our corporate headquarters in Columbus, Ohio. To the extent we had no intent or ability to sublease the space, we accelerated the amortization of the related right-of-use assets, leasehold improvements and furniture and fixtures. For subleased space, we recognized sublease income as an offset to amortization of the right-of-use asset. We do not expect to incur any material additional expenditures in future periods related to the January 2022 Restructuring. The following table displays restructuring costs recorded in general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Restructuring costs: (dollars in millions) Severance, benefits, and related costs (1) $ — $ — $ 5.6 $ — Real estate exit costs — — 2.1 — Software costs — — 0.7 — Total restructuring costs $ — $ — $ 8.4 $ — ______________

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION In August 2022, a subcommittee of our Board of Directors approved a reverse stock split of our Class A and Class B common stock at a ratio of 1-for-18, which became effective on August 12, 2022. Accordingly, all stock, equity award, warrant, and per share amounts have been adjusted to reflect the reverse stock split for all prior periods presented. Warrants In October 2021, 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 is 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 7.2 million shares of Class A common stock. The following table provides the exercise price and shares issued, effected for the reverse stock split: Warrants Exercise Price Shares Issued Short-Term Tranche 1 $ 180.00 2.4 Tranche 2 $ 198.00 3.2 Tranche 3 $ 216.00 1.6 Total Short-Term 7.2 Long-Term Tranche 1 $ 180.00 1.4 Tranche 2 $ 225.00 1.5 Tranche 3 $ 270.00 1.5 Tranche 4 $ 405.00 1.5 Tranche 5 $ 540.00 1.3 Total Long-Term 7.2 As of September 30, 2022, we determined the remaining unvested 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 warrant compensation expense related to these equity-classified warrants based on progress toward completing the integrated automobile insurance solution for Carvana’s car buying platform, or Integrated Platform, and policies originating through the Integrated Platform. During the three months ended September 30, 2022, the Integrated Platform launched and as a result, tranche 1 of our short-term warrants vested. There were no exercises upon vesting and all warrants remain outstanding. All of these warrants are out-of-the-money and therefore have no intrinsic value as of September 30, 2022. The following table displays warrant compensation expense recorded in the condensed consolidated statements of operations and comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Warrant compensation expense: Sales and marketing $ — $ — $ 8.8 $ — Other insurance expense (benefit) 1.5 — 1.5 — Total warrant compensation expense $ 1.5 $ — $ 10.3 $ — As of September 30, 2022, there was $25.4 million of unrecognized compensation cost related to warrants. The remaining costs are expected to be recognized over a period of approximately two years. Employee Share-Based Compensation We maintain an equity incentive plan for the issuance and grant of equity awards (restricted stock, restricted stock units, or RSUs, and incentive and nonqualified stock options) to our officers, directors, employees and certain advisors. As of September 30, 2022, we had 1.6 million common shares authorized and available for issuance under the plan. The following table displays share-based compensation expense recorded in the condensed consolidated statements of operations and comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Share-based compensation expense: Loss and loss adjustment expenses $ 0.2 $ — $ 0.6 $ 0.6 Sales and marketing 0.3 0.4 0.7 0.6 Other insurance expense (benefit) 0.3 0.4 0.8 0.9 Technology and development 1.1 2.9 3.1 4.7 General and administrative 5.9 3.8 16.6 7.9 Total share-based compensation expense $ 7.8 $ 7.5 $ 21.8 $ 14.7 The following table provides total share-based compensation expense by type of award: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Share-based compensation expense: Restricted stock unit expense $ 7.4 $ 6.1 $ 20.5 $ 10.9 Stock option expense 0.4 1.4 1.3 3.8 Total share-based compensation expense $ 7.8 $ 7.5 $ 21.8 $ 14.7 As part of the January 2022 organizational realignment discussed in Note 9, “Restructuring Costs,” we modified certain share-based awards which resulted in zero and $2.1 million of share-based compensation expense recognized in general and administrative expenses during the three and nine months ended September 30, 2022, respectively. As of September 30, 2022, there was $2.7 million and $55.5 million of unrecognized compensation cost related to unvested stock options and RSUs, respectively. The remaining costs are expected to be recognized over a period of approximately four years for unvested stock options and four years for RSUs. Restricted Stock Units A summary of RSU activity for the nine months ended September 30, 2022 is as follows: Nine Months Ended September 30, 2022 Restricted Stock Units Number of Shares Weighted-Average Aggregate Intrinsic Value (in millions, except per share amounts) Nonvested at January 1, 2022 0.5 $ 162.36 $ 27.4 Granted 1.1 34.07 Vested (0.1) 180.18 3.0 Forfeited, expired or canceled (0.2) 114.94 Nonvested at September 30, 2022 1.3 $ 53.90 $ 10.2 Stock Options A summary of option activity for the nine months ended September 30, 2022 is as follows: Nine Months Ended September 30, 2022 Options Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in millions, except exercise price and term amounts) Outstanding and exercisable at January 1, 2022 0.4 $ 42.48 6.12 $ 9.5 Granted — 21.42 Exercised (0.1) 6.60 1.9 Forfeited, expired or canceled (0.1) 83.60 Outstanding and exercisable at September 30, 2022 0.2 $ 39.28 5.99 $ 0.4

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES 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 and former 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, or the Exchange Act, and Rule 10b-5 thereunder, and of Sections 11 and 15 of the Securities Act of 1933, or the Securities Act, in connection with and following the Company’s initial public offering. The complaint seeks unspecified damages. The defendants have moved to dismiss the claims set forth in the complaint. 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. On June 27, 2022, a verified shareholder derivative complaint was filed against certain of the Company’s current and former officers and directors in the U.S. District Court for the District of Delaware (Case No. 1:22-cv-00865). The Company was named as a nominal defendant. The complaint alleges that defendants made false or misleading statements and omissions of purportedly material fact, in violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, breached their fiduciary duties and/or aided and abetted the breach of fiduciary duties, were unjustly enriched, wasted corporate assets, and are liable under Section 11(f) of the Securities Act, in connection with and following the Company’s initial public offering. 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 currently stayed pending resolution of the motion to dismiss filed by the defendants in the above matter 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 AND AC

OTHER COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
OTHER COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME	OTHER COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table presents the changes in our accumulated other comprehensive (loss) income, or AOCI, for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Beginning balance $ (4.6) $ 2.1 $ 0.4 $ 5.6 Other comprehensive loss before reclassifications (2.3) (0.5) (7.4) (1.6) Net realized losses (gains) on investments reclassified from AOCI to net loss — — 0.1 (2.4) Other comprehensive loss (2.3) (0.5) (7.3) (4.0) Ending balance $ (6.9) $ 1.6 $ (6.9) $ 1.6

LOSS PER SHARE

LOSS PER SHARE	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
LOSS PER SHARE	LOSS PER SHARE In August 2022, a subcommittee of our Board of Directors approved a reverse stock split of our Class A and Class B common stock at a ratio of 1-for-18, which became effective on August 12, 2022. Accordingly, all stock, equity award, warrant, and per share amounts have been adjusted to reflect the reverse stock split for all prior periods presented. The following table displays the computation of basic and diluted loss per share for both Class A and Class B common stock for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions, except per share amounts) Net loss $ (64.0) $ (133.0) $ (230.3) $ (411.2) Weighted-average common shares outstanding: basic and diluted (both Class A and B) 14.1 13.9 14.0 13.8 Loss per common share: basic and diluted (both Class A and B) $ (4.54) $ (9.57) $ (16.45) $ (29.80) We excluded the following potentially dilutive common stock equivalents, presented based on amounts outstanding at each period end, from the computation of diluted loss per share attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect: As of September 30, 2022 2021 (in millions) Options to purchase common stock 0.2 0.4 Nonvested shares subject to repurchase 0.1 0.1 Restricted stock units 1.3 0.5 Redeemable convertible preferred stock (as converted to common stock) 0.8 — Warrants to purchase common stock 7.7 — Total 10.1 1.0

GEOGRAPHICAL BREAKDOWN OF GROSS

GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUM	9 Months Ended
	Sep. 30, 2022
Insurance [Abstract]
GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUM	REINSURANCE The following table reflects amounts affecting the condensed consolidated statements of operations and comprehensive loss for reinsurance for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Premiums written: Direct $ 139.6 $ 197.0 $ 443.9 $ 576.6 Assumed 11.1 7.6 34.1 7.6 Ceded (81.0) (107.5) (264.5) (306.8) Net premiums written $ 69.7 $ 97.1 $ 213.5 $ 277.4 Premiums earned: Direct $ 144.5 $ 188.5 $ 469.3 $ 529.4 Assumed 10.8 0.9 31.5 0.9 Ceded (86.7) (104.3) (279.2) (304.9) Net premiums earned $ 68.6 $ 85.1 $ 221.6 $ 225.4 Losses and LAE incurred: Direct $ 126.1 $ 193.7 $ 430.0 $ 504.6 Assumed 11.3 1.9 35.7 1.9 Ceded (56.5) (81.2) (192.4) (222.0) Net losses and LAE incurred $ 80.9 $ 114.4 $ 273.3 $ 284.5 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 to the policyholder for such defaulted amounts. Gross written premium by state is as follows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amount % of Total Amount % of Total Amount % of Total Amount % of Total State (dollars in millions) Texas $ 26.2 17.4 % $ 40.4 19.7 % $ 89.5 18.7 % $ 120.8 20.7 % Georgia 15.0 10.0 21.6 10.6 48.8 10.2 61.3 10.5 Colorado 10.3 6.8 9.3 4.5 30.8 6.4 25.7 4.4 Louisiana 8.7 5.8 12.3 6.0 27.6 5.8 32.9 5.6 Pennsylvania 9.1 6.0 11.8 5.8 26.8 5.6 31.5 5.4 Utah 8.0 5.3 9.1 4.4 24.1 5.0 25.6 4.4 Nevada 7.3 4.8 9.5 4.6 23.0 4.8 26.0 4.5 South Carolina 4.5 3.0 8.0 3.9 16.4 3.4 20.6 3.5 Oklahoma 5.2 3.5 6.0 2.9 16.1 3.4 17.5 3.0 Indiana 4.7 3.1 6.0 2.9 14.3 3.0 17.2 2.9 All others states 51.7 34.3 70.6 34.7 160.6 33.7 205.1 35.1 Total $ 150.7 100.0 % $ 204.6 100.0 % $ 478.0 100.0 % $ 584.2 100.0 %

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSOn November 9, 2022, we initiated a company-wide involuntary workforce reduction involving approximately 160 employees, which represented approximately 20% of our workforce. The action was taken as part of our efforts to improve efficiency and operating costs, and prioritize resources to further strengthen our pricing and underwriting foundation and the continued development of our embedded products. A majority of the affected employees were notified on November 9, 2022, with most job eliminations effective in November 2022. In the fourth quarter of 2022, we expect to recognize charges of approximately $10.5 million to $11.5 million in general and administrative expenses on the condensed consolidated statements of operations and comprehensive income for severance, benefits and related costs as a result of these actions. Approximately $7.0 million to $7.5 million of these charges are expected to result in cash expenditures in the same period. We also expect to incur approximately $8.0 million to $8.5 million of employee compensation expense, dependent upon continuous employment, recognized ratably through the fourth quarter of 2023, we expect a cash expenditure in the first quarter of 2024. We continue to review the potential impact of the realignment, including additional employee-related costs, and are unable to estimate any additional restructuring costs or charges at this time.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation —In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. All such adjustments are of a normal and recurring nature. These condensed consolidated financial statements are unaudited and, accordingly, should be read in conjunction with the consolidated financial statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 23, 2022, or the 2021 10-K.
Basis of Consolidation	Basis of Consolidation—The unaudited condensed consolidated financial statements include the accounts of Root, Inc. and its subsidiaries, all of which are wholly owned. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP.
Use of Estimates	Use of Estimates —The preparation of the unaudited condensed consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our unaudited condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, or LAE, allowance for expected credit losses on premium receivables and valuation allowances for income taxes. Reverse Stock Split — In August 2022, a subcommittee of our Board of Directors approved a reverse stock split of our Class A and Class B common stock at a ratio of 1-for-18. On August 12, 2022, we filed a Certificate of Amendment to our Amended and Restated Certificate of Incorporation to effect a 1-for-18 reverse stock split of our Class A and Class B common stock. As a result of the reverse stock split, every 18 shares of our issued or outstanding pre-reverse split common stock of each class were combined into one share of common stock of such class. No fractional shares were issued upon the reverse stock split. On August 15, 2022, our Class A common stock began trading on a split-adjusted basis on the Nasdaq Stock Market. In connection with the reverse stock split, there was no change to the shares authorized or in the par value per share of $0.0001. In addition, there was no change to the number of shares issued or outstanding for our Series A Preferred Stock. The conversion price for our Series A Preferred Stock was adjusted to $162.00 and the exercise price and number of warrant shares for each of our outstanding warrants were also proportionately adjusted. Accordingly, all historical per share data, number of shares outstanding and other common stock equivalents for the periods presented in the accompanying condensed consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the reverse stock split.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amount in the condensed consolidated statements of cash flows: As of September 30, December 31, 2022 2021 (dollars in millions) Cash and cash equivalents $ 819.7 $ 706.0 Restricted cash 1.0 1.0 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 820.7 $ 707.0

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in millions) Fixed maturities: U.S. Treasury securities and agencies $ 12.6 $ — $ — $ (0.9) $ 11.7 Municipal securities 20.3 — — (1.3) 19.0 Corporate debt securities 55.4 — — (3.1) 52.3 Residential mortgage-backed securities 4.4 — — (0.3) 4.1 Commercial mortgage backed securities 26.1 — — (1.2) 24.9 Other debt obligations 7.8 — — (0.1) 7.7 Total fixed maturities 126.6 — — (6.9) 119.7 Short-term investments 0.4 — — — 0.4 Total $ 127.0 $ — $ — $ (6.9) $ 120.1 December 31, 2021 Amortized Cost Allowance for Expected Credit Losses 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 The following table reflects the gross and net realized gains and losses on short-term investments, available-for-sale fixed maturities and other investments that have been included in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Realized gains on investments $ — $ — $ 1.2 $ 2.5 Realized losses on investments — — (0.1) (0.1) Net realized gains on investments $ — $ — $ 1.1 $ 2.4 The following table sets forth the amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities by contractual maturity at September 30, 2022: September 30, 2022 Amortized Cost Fair Value (dollars in millions) Due in one year or less $ 22.9 $ 22.4 Due after one year through five years 80.8 76.0 Due five years through 10 years 10.8 10.0 Due after 10 years 12.5 11.7 Total $ 127.0 $ 120.1
Schedule of Unrealized Losses	The following tables reflect the gross unrealized losses and fair value of short-term investments and available-for-sale fixed maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021: September 30, 2022 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (dollars in millions) Fixed maturities: U.S. Treasury securities and agencies $ 4.2 $ (0.1) $ 6.5 $ (0.8) $ 10.7 $ (0.9) Municipal securities 14.7 (0.8) 4.3 (0.5) 19.0 (1.3) Corporate debt securities 47.6 (2.6) 4.7 (0.5) 52.3 (3.1) Residential mortgage-backed securities 1.4 (0.1) 1.7 (0.2) 3.1 (0.3) Commercial mortgage-backed securities 22.3 (0.9) 2.6 (0.3) 24.9 (1.2) Other debt obligations 6.3 (0.1) — — 6.3 (0.1) Total fixed maturities 96.5 (4.6) 19.8 (2.3) 116.3 (6.9) Short-term investments 0.4 — — — 0.4 — Total $ 96.9 $ (4.6) $ 19.8 $ (2.3) $ 116.7 $ (6.9) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (dollars in millions) Fixed maturities: 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 fixed maturities $ 39.7 $ (0.4) $ 16.1 $ (0.4) $ 55.8 $ (0.8)
Schedule of Net Investment Income	The following table sets forth the components of net investment income for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Interest on bonds $ 0.6 $ 0.6 $ 1.7 $ 1.9 Interest on deposits and cash equivalents 0.6 0.2 1.2 0.8 Other investments (1) — 0.4 — 0.4 Total 1.2 1.2 2.9 3.1 Investment expense (0.3) (0.2) (0.7) (0.5) Net investment income $ 0.9 $ 1.0 $ 2.2 $ 2.6 ______________ (1) Unrealized gains resulting from observable price changes related to our private equity investments.
Schedule of Credit Ratings	The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at September 30, 2022 and December 31, 2021: September 30, 2022 Amortized Cost Fair Value % of Total S&P Global rating or equivalent (dollars in millions) AAA $ 61.1 $ 57.8 48.1 % AA+, AA, AA-, A-1 17.9 16.9 14.1 A+, A, A- 36.2 34.0 28.3 BBB+, BBB, BBB- 11.8 11.4 9.5 Total $ 127.0 $ 120.1 100.0 % December 31, 2021 Amortized Cost Fair Value % of Total 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 %

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value	The following tables provide information about our financial assets measured and reported at fair value as of September 30, 2022 and December 31, 2021: September 30, 2022 Level 1 Level 2 Level 3 Total (dollars in millions) Assets Fixed maturities: U.S. Treasury securities and agencies $ 10.0 $ 1.7 $ — $ 11.7 Municipal securities — 19.0 — 19.0 Corporate debt securities — 52.3 — 52.3 Residential mortgage-backed securities — 4.1 — 4.1 Commercial mortgage-backed securities — 24.9 — 24.9 Other debt obligations — 7.7 — 7.7 Total fixed maturities 10.0 109.7 — 119.7 Short-term investments — 0.4 — 0.4 Cash equivalents 124.6 — — 124.6 Total assets at fair value $ 134.6 $ 110.1 $ — $ 244.7 December 31, 2021 Level 1 Level 2 Level 3 Total (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
Schedule of Carrying Amounts and Fair Values of Financial Instruments	As of September 30, 2022 and December 31, 2021, the carrying amounts and fair values of these financial instruments were as follows: Carrying Amount as of September 30, 2022 Estimated Fair Value as of September 30, 2022 Carrying Amount as of December 31, 2021 Estimated Fair Value as of December 31, 2021 (dollars in millions) Long-term debt $ 293.9 $ 306.3 $ — $ —

LOSS AND LOSS ADJUSTMENT EXPE_2

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables)	9 Months Ended
	Sep. 30, 2022
Insurance [Abstract]
Schedule of Reconciliation of Reserve Balances for Loss and LAE, Net of Reinsurance	The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance: Nine Months Ended September 30, 2022 2021 (dollars in millions) Gross loss and LAE reserves, January 1 $ 320.2 $ 237.2 Reinsurance recoverable on unpaid losses (79.5) (79.6) Net loss and LAE reserves, January 1 240.7 157.6 Net incurred loss and LAE related to: Current year 273.5 293.8 Prior years (0.2) (9.3) Total incurred 273.3 284.5 Net paid loss and LAE related to: Current year 155.5 150.4 Prior years 135.6 72.6 Total paid 291.1 223.0 Net loss and LAE reserves, September 30 222.9 219.1 Plus reinsurance recoverable on unpaid losses 71.3 81.6 Gross loss and LAE reserves, September 30 $ 294.2 $ 300.7

REINSURANCE (Tables)

REINSURANCE (Tables)	9 Months Ended
	Sep. 30, 2022
Insurance [Abstract]
Schedule of Comprehensive Loss For Reinsurance	The following table reflects amounts affecting the condensed consolidated statements of operations and comprehensive loss for reinsurance for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Premiums written: Direct $ 139.6 $ 197.0 $ 443.9 $ 576.6 Assumed 11.1 7.6 34.1 7.6 Ceded (81.0) (107.5) (264.5) (306.8) Net premiums written $ 69.7 $ 97.1 $ 213.5 $ 277.4 Premiums earned: Direct $ 144.5 $ 188.5 $ 469.3 $ 529.4 Assumed 10.8 0.9 31.5 0.9 Ceded (86.7) (104.3) (279.2) (304.9) Net premiums earned $ 68.6 $ 85.1 $ 221.6 $ 225.4 Losses and LAE incurred: Direct $ 126.1 $ 193.7 $ 430.0 $ 504.6 Assumed 11.3 1.9 35.7 1.9 Ceded (56.5) (81.2) (192.4) (222.0) Net losses and LAE incurred $ 80.9 $ 114.4 $ 273.3 $ 284.5 Gross written premium by state is as follows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amount % of Total Amount % of Total Amount % of Total Amount % of Total State (dollars in millions) Texas $ 26.2 17.4 % $ 40.4 19.7 % $ 89.5 18.7 % $ 120.8 20.7 % Georgia 15.0 10.0 21.6 10.6 48.8 10.2 61.3 10.5 Colorado 10.3 6.8 9.3 4.5 30.8 6.4 25.7 4.4 Louisiana 8.7 5.8 12.3 6.0 27.6 5.8 32.9 5.6 Pennsylvania 9.1 6.0 11.8 5.8 26.8 5.6 31.5 5.4 Utah 8.0 5.3 9.1 4.4 24.1 5.0 25.6 4.4 Nevada 7.3 4.8 9.5 4.6 23.0 4.8 26.0 4.5 South Carolina 4.5 3.0 8.0 3.9 16.4 3.4 20.6 3.5 Oklahoma 5.2 3.5 6.0 2.9 16.1 3.4 17.5 3.0 Indiana 4.7 3.1 6.0 2.9 14.3 3.0 17.2 2.9 All others states 51.7 34.3 70.6 34.7 160.6 33.7 205.1 35.1 Total $ 150.7 100.0 % $ 204.6 100.0 % $ 478.0 100.0 % $ 584.2 100.0 %

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Schedule of Long Term Debt	The following summarizes the carrying value of long-term debt as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (dollars in millions) Term Loan $ 300.0 $ — Accrued interest payable 6.5 — Unamortized discount, debt issuance costs and warrants (12.6) — Total $ 293.9 $ —

RESTRUCTURING COSTS (Tables)

RESTRUCTURING COSTS (Tables)	9 Months Ended
	Sep. 30, 2022
Restructuring and Related Activities [Abstract]
Restructuring Costs	The following table displays restructuring costs recorded in general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Restructuring costs: (dollars in millions) Severance, benefits, and related costs (1) $ — $ — $ 5.6 $ — Real estate exit costs — — 2.1 — Software costs — — 0.7 — Total restructuring costs $ — $ — $ 8.4 $ — ______________

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Stockholders' Equity Note, Warrants or Rights	The following table provides the exercise price and shares issued, effected for the reverse stock split: Warrants Exercise Price Shares Issued Short-Term Tranche 1 $ 180.00 2.4 Tranche 2 $ 198.00 3.2 Tranche 3 $ 216.00 1.6 Total Short-Term 7.2 Long-Term Tranche 1 $ 180.00 1.4 Tranche 2 $ 225.00 1.5 Tranche 3 $ 270.00 1.5 Tranche 4 $ 405.00 1.5 Tranche 5 $ 540.00 1.3 Total Long-Term 7.2
Schedule of Share-Based Compensation Expense	The following table displays warrant compensation expense recorded in the condensed consolidated statements of operations and comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Warrant compensation expense: Sales and marketing $ — $ — $ 8.8 $ — Other insurance expense (benefit) 1.5 — 1.5 — Total warrant compensation expense $ 1.5 $ — $ 10.3 $ — The following table displays share-based compensation expense recorded in the condensed consolidated statements of operations and comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Share-based compensation expense: Loss and loss adjustment expenses $ 0.2 $ — $ 0.6 $ 0.6 Sales and marketing 0.3 0.4 0.7 0.6 Other insurance expense (benefit) 0.3 0.4 0.8 0.9 Technology and development 1.1 2.9 3.1 4.7 General and administrative 5.9 3.8 16.6 7.9 Total share-based compensation expense $ 7.8 $ 7.5 $ 21.8 $ 14.7 The following table provides total share-based compensation expense by type of award: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Share-based compensation expense: Restricted stock unit expense $ 7.4 $ 6.1 $ 20.5 $ 10.9 Stock option expense 0.4 1.4 1.3 3.8 Total share-based compensation expense $ 7.8 $ 7.5 $ 21.8 $ 14.7
Summary of RSU Activity	A summary of RSU activity for the nine months ended September 30, 2022 is as follows: Nine Months Ended September 30, 2022 Restricted Stock Units Number of Shares Weighted-Average Aggregate Intrinsic Value (in millions, except per share amounts) Nonvested at January 1, 2022 0.5 $ 162.36 $ 27.4 Granted 1.1 34.07 Vested (0.1) 180.18 3.0 Forfeited, expired or canceled (0.2) 114.94 Nonvested at September 30, 2022 1.3 $ 53.90 $ 10.2
Summary of Option Activity	A summary of option activity for the nine months ended September 30, 2022 is as follows: Nine Months Ended September 30, 2022 Options Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in millions, except exercise price and term amounts) Outstanding and exercisable at January 1, 2022 0.4 $ 42.48 6.12 $ 9.5 Granted — 21.42 Exercised (0.1) 6.60 1.9 Forfeited, expired or canceled (0.1) 83.60 Outstanding and exercisable at September 30, 2022 0.2 $ 39.28 5.99 $ 0.4

OTHER COMPREHENSIVE LOSS AND _2

OTHER COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Schedule of AOCI	The following table presents the changes in our accumulated other comprehensive (loss) income, or AOCI, for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Beginning balance $ (4.6) $ 2.1 $ 0.4 $ 5.6 Other comprehensive loss before reclassifications (2.3) (0.5) (7.4) (1.6) Net realized losses (gains) on investments reclassified from AOCI to net loss — — 0.1 (2.4) Other comprehensive loss (2.3) (0.5) (7.3) (4.0) Ending balance $ (6.9) $ 1.6 $ (6.9) $ 1.6

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2022
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 three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions, except per share amounts) Net loss $ (64.0) $ (133.0) $ (230.3) $ (411.2) Weighted-average common shares outstanding: basic and diluted (both Class A and B) 14.1 13.9 14.0 13.8 Loss per common share: basic and diluted (both Class A and B) $ (4.54) $ (9.57) $ (16.45) $ (29.80)
Schedule of Anti-Dilutive Securities	We excluded the following potentially dilutive common stock equivalents, presented based on amounts outstanding at each period end, from the computation of diluted loss per share attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect: As of September 30, 2022 2021 (in millions) Options to purchase common stock 0.2 0.4 Nonvested shares subject to repurchase 0.1 0.1 Restricted stock units 1.3 0.5 Redeemable convertible preferred stock (as converted to common stock) 0.8 — Warrants to purchase common stock 7.7 — Total 10.1 1.0

GEOGRAPHICAL BREAKDOWN OF GRO_2

GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUM (Tables)	9 Months Ended
	Sep. 30, 2022
Insurance [Abstract]
Schedule of Direct and Assumed Written Premiums	The following table reflects amounts affecting the condensed consolidated statements of operations and comprehensive loss for reinsurance for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars in millions) Premiums written: Direct $ 139.6 $ 197.0 $ 443.9 $ 576.6 Assumed 11.1 7.6 34.1 7.6 Ceded (81.0) (107.5) (264.5) (306.8) Net premiums written $ 69.7 $ 97.1 $ 213.5 $ 277.4 Premiums earned: Direct $ 144.5 $ 188.5 $ 469.3 $ 529.4 Assumed 10.8 0.9 31.5 0.9 Ceded (86.7) (104.3) (279.2) (304.9) Net premiums earned $ 68.6 $ 85.1 $ 221.6 $ 225.4 Losses and LAE incurred: Direct $ 126.1 $ 193.7 $ 430.0 $ 504.6 Assumed 11.3 1.9 35.7 1.9 Ceded (56.5) (81.2) (192.4) (222.0) Net losses and LAE incurred $ 80.9 $ 114.4 $ 273.3 $ 284.5 Gross written premium by state is as follows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amount % of Total Amount % of Total Amount % of Total Amount % of Total State (dollars in millions) Texas $ 26.2 17.4 % $ 40.4 19.7 % $ 89.5 18.7 % $ 120.8 20.7 % Georgia 15.0 10.0 21.6 10.6 48.8 10.2 61.3 10.5 Colorado 10.3 6.8 9.3 4.5 30.8 6.4 25.7 4.4 Louisiana 8.7 5.8 12.3 6.0 27.6 5.8 32.9 5.6 Pennsylvania 9.1 6.0 11.8 5.8 26.8 5.6 31.5 5.4 Utah 8.0 5.3 9.1 4.4 24.1 5.0 25.6 4.4 Nevada 7.3 4.8 9.5 4.6 23.0 4.8 26.0 4.5 South Carolina 4.5 3.0 8.0 3.9 16.4 3.4 20.6 3.5 Oklahoma 5.2 3.5 6.0 2.9 16.1 3.4 17.5 3.0 Indiana 4.7 3.1 6.0 2.9 14.3 3.0 17.2 2.9 All others states 51.7 34.3 70.6 34.7 160.6 33.7 205.1 35.1 Total $ 150.7 100.0 % $ 204.6 100.0 % $ 478.0 100.0 % $ 584.2 100.0 %

NATURE OF BUSINESS (Details)

NATURE OF BUSINESS (Details)	Sep. 30, 2022
Root Insurance Company
Schedule of Equity Method Investments [Line Items]
Ownership percentage (as percent)	100%
Root Property & Casualty Insurance Company
Schedule of Equity Method Investments [Line Items]
Ownership percentage (as percent)	100%
Root Reinsurance Company, Ltd.
Schedule of Equity Method Investments [Line Items]
Ownership percentage (as percent)	100%

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reverse Stock Split (Details)		9 Months Ended
	Aug. 12, 2022 shares	Sep. 30, 2022	Aug. 15, 2022 $ / shares
Class of Stock [Line Items]
Conversion ratio	0.0556	0.05556
Conversion of stock, shares converted | shares	18
Conversion of stock, shares issued | shares	1
Common stock, par value (in dollars per share) | $ / shares			$ 0.0001
Series A Convertible Preferred Stock
Class of Stock [Line Items]
Exercise price (in dollars per share) | $ / shares			$ 162

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 819.7	$ 706
Restricted cash	1	1
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$ 820.7	$ 707	$ 835.1	$ 1,113.8

INVESTMENTS - Amortized Cost an

INVESTMENTS - Amortized Cost and Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 127	$ 129.5
Allowance for Expected Credit Losses	0	0
Gross Unrealized Gains	0	1.2
Gross Unrealized Losses	(6.9)	(0.8)
Fair Value	120.1	129.9
U.S. Treasury securities and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	12.6	23.7
Allowance for Expected Credit Losses	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(0.9)	(0.4)
Fair Value	11.7	23.3
Municipal securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	20.3	20.4
Allowance for Expected Credit Losses	0	0
Gross Unrealized Gains	0	0.3
Gross Unrealized Losses	(1.3)	(0.1)
Fair Value	19	20.6
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	55.4	48.2
Allowance for Expected Credit Losses	0	0
Gross Unrealized Gains	0	0.7
Gross Unrealized Losses	(3.1)	(0.2)
Fair Value	52.3	48.7
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4.4	3.5
Allowance for Expected Credit Losses	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(0.3)	0
Fair Value	4.1	3.5
Commercial mortgage backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	26.1	30.2
Allowance for Expected Credit Losses	0	0
Gross Unrealized Gains	0	0.2
Gross Unrealized Losses	(1.2)	(0.1)
Fair Value	24.9	30.3
Other debt obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	7.8	3.5
Allowance for Expected Credit Losses	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(0.1)	0
Fair Value	7.7	3.5
Total fixed maturities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	126.6
Allowance for Expected Credit Losses	0
Gross Unrealized Gains	0
Gross Unrealized Losses	(6.9)
Fair Value	119.7	$ 129.9
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	0.4
Allowance for Expected Credit Losses	0
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	$ 0.4

INVESTMENTS - Other Investments

INVESTMENTS - Other Investments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Other investments	$ 4,400,000		$ 4,400,000		$ 4,700,000
Realized gains on investments	$ 0	$ 0	$ 1,200,000	$ 2,500,000

INVESTMENTS - Unrealized Losses

INVESTMENTS - Unrealized Losses (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	$ 96.9	$ 39.7
Less than 12 months, unrealized loss	(4.6)	(0.4)
12 months or more, fair value	19.8	16.1
12 months or more, unrealized loss	(2.3)	(0.4)
Total, fair value	116.7	55.8
Total, unrealized loss	(6.9)	(0.8)
U.S. Treasury securities and agencies
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	4.2	7.5
Less than 12 months, unrealized loss	(0.1)	(0.1)
12 months or more, fair value	6.5	14
12 months or more, unrealized loss	(0.8)	(0.3)
Total, fair value	10.7	21.5
Total, unrealized loss	(0.9)	(0.4)
Municipal securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	14.7	8.9
Less than 12 months, unrealized loss	(0.8)	(0.1)
12 months or more, fair value	4.3	0
12 months or more, unrealized loss	(0.5)	0
Total, fair value	19	8.9
Total, unrealized loss	(1.3)	(0.1)
Corporate debt securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	47.6	12.7
Less than 12 months, unrealized loss	(2.6)	(0.1)
12 months or more, fair value	4.7	1.6
12 months or more, unrealized loss	(0.5)	(0.1)
Total, fair value	52.3	14.3
Total, unrealized loss	(3.1)	(0.2)
Residential mortgage-backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	1.4	1.9
Less than 12 months, unrealized loss	(0.1)	0
12 months or more, fair value	1.7	0.5
12 months or more, unrealized loss	(0.2)	0
Total, fair value	3.1	2.4
Total, unrealized loss	(0.3)	0
Commercial mortgage backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	22.3	8.7
Less than 12 months, unrealized loss	(0.9)	(0.1)
12 months or more, fair value	2.6	0
12 months or more, unrealized loss	(0.3)	0
Total, fair value	24.9	8.7
Total, unrealized loss	(1.2)	$ (0.1)
Other debt obligations
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	6.3
Less than 12 months, unrealized loss	(0.1)
12 months or more, fair value	0
12 months or more, unrealized loss	0
Total, fair value	6.3
Total, unrealized loss	(0.1)
Total fixed maturities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	96.5
Less than 12 months, unrealized loss	(4.6)
12 months or more, fair value	19.8
12 months or more, unrealized loss	(2.3)
Total, fair value	116.3
Total, unrealized loss	(6.9)
Short-term investments
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	0.4
Less than 12 months, unrealized loss	0
12 months or more, fair value	0
12 months or more, unrealized loss	0
Total, fair value	0.4
Total, unrealized loss	$ 0

INVESTMENTS - Gross and Net Rea

INVESTMENTS - Gross and Net Realized Gains and Losses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Realized gains on investments	$ 0	$ 0	$ 1,200,000	$ 2,500,000
Realized losses on investments	0	0	(100,000)	(100,000)
Net realized gains on investments	$ 0	$ 0	$ 1,100,000	$ 2,400,000

INVESTMENTS - Contractual Matur

INVESTMENTS - Contractual Maturity (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Amortized Cost
Due in one year or less	$ 22.9
Due after one year through five years	80.8
Due five years through 10 years	10.8
Due after 10 years	12.5
Amortized Cost	127	$ 129.5
Fair Value
Due in one year or less	22.4
Due after one year through five years	76
Due five years through 10 years	10
Due after 10 years	11.7
Total	$ 120.1	$ 129.9

INVESTMENTS - Net Investment In

INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net Investment Income [Line Items]
Realized gain value	$ 1.2	$ 1.2	$ 2.9	$ 3.1
Investment expense	(0.3)	(0.2)	(0.7)	(0.5)
Net investment income	0.9	1	2.2	2.6
Interest on bonds
Net Investment Income [Line Items]
Realized gain value	0.6	0.6	1.7	1.9
Interest on deposits and cash equivalents
Net Investment Income [Line Items]
Realized gain value	0.6	0.2	1.2	0.8
Other investments
Net Investment Income [Line Items]
Realized gain value	$ 0	$ 0.4	$ 0	$ 0.4

INVESTMENTS - Credit Ratings (D

INVESTMENTS - Credit Ratings (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 127	$ 129.5
Fair Value	$ 120.1	$ 129.9
AFS securities | Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	100%	100%
AAA
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 61.1	$ 70.9
Fair Value	$ 57.8	$ 70.8
AAA | AFS securities | Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	48.10%	54.50%
AA+, AA, AA-, A-1
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 17.9	$ 14.7
Fair Value	$ 16.9	$ 14.8
AA+, AA, AA-, A-1 | AFS securities | Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	14.10%	11.40%
A+, A, A-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 36.2	$ 33.4
Fair Value	$ 34	$ 33.6
A+, A, A- | AFS securities | Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	28.30%	25.90%
BBB+, BBB, BBB-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 11.8	$ 10.5
Fair Value	$ 11.4	$ 10.7
BBB+, BBB, BBB- | AFS securities | Credit rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	9.50%	8.20%

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
AFS securities	$ 120.1	$ 129.9
Cash equivalents	124.6	127
Total assets at fair value	244.7	256.9
U.S. Treasury securities and agencies
Assets
AFS securities	11.7	23.3
Municipal securities
Assets
AFS securities	19	20.6
Corporate debt securities
Assets
AFS securities	52.3	48.7
Residential mortgage-backed securities
Assets
AFS securities	4.1	3.5
Commercial mortgage backed securities
Assets
AFS securities	24.9	30.3
Other debt obligations
Assets
AFS securities	7.7	3.5
Total fixed maturities
Assets
AFS securities	119.7	129.9
Short-term investments
Assets
AFS securities	0.4
Level 1
Assets
Cash equivalents	124.6	127
Total assets at fair value	134.6	149.6
Level 1 | U.S. Treasury securities and agencies
Assets
AFS securities	10	22.6
Level 1 | Municipal securities
Assets
AFS securities	0	0
Level 1 | Corporate debt securities
Assets
AFS securities	0	0
Level 1 | Residential mortgage-backed securities
Assets
AFS securities	0	0
Level 1 | Commercial mortgage backed securities
Assets
AFS securities	0	0
Level 1 | Other debt obligations
Assets
AFS securities	0	0
Level 1 | Total fixed maturities
Assets
AFS securities	10	22.6
Level 1 | Short-term investments
Assets
AFS securities	0
Level 2
Assets
Cash equivalents	0	0
Total assets at fair value	110.1	107.3
Level 2 | U.S. Treasury securities and agencies
Assets
AFS securities	1.7	0.7
Level 2 | Municipal securities
Assets
AFS securities	19	20.6
Level 2 | Corporate debt securities
Assets
AFS securities	52.3	48.7
Level 2 | Residential mortgage-backed securities
Assets
AFS securities	4.1	3.5
Level 2 | Commercial mortgage backed securities
Assets
AFS securities	24.9	30.3
Level 2 | Other debt obligations
Assets
AFS securities	7.7	3.5
Level 2 | Total fixed maturities
Assets
AFS securities	109.7	107.3
Level 2 | Short-term investments
Assets
AFS securities	0.4
Level 3
Assets
Cash equivalents	0	0
Total assets at fair value	0	0
Level 3 | U.S. Treasury securities and agencies
Assets
AFS securities	0	0
Level 3 | Municipal securities
Assets
AFS securities	0	0
Level 3 | Corporate debt securities
Assets
AFS securities	0	0
Level 3 | Residential mortgage-backed securities
Assets
AFS securities	0	0
Level 3 | Commercial mortgage backed securities
Assets
AFS securities	0	0
Level 3 | Other debt obligations
Assets
AFS securities	0	0
Level 3 | Total fixed maturities
Assets
AFS securities	0	$ 0
Level 3 | Short-term investments
Assets
AFS securities	$ 0

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Long Term Debt (Details) - Level 2 - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Carrying amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 293.9	$ 0
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 306.3	$ 0

LOSS AND LOSS ADJUSTMENT EXPE_3

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Gross loss and LAE reserves, January 1			$ 320.2	$ 237.2
Reinsurance recoverable on unpaid losses			(79.5)	(79.6)
Net loss and LAE reserves, January 1	$ 222.9	$ 219.1	222.9	219.1	$ 240.7	$ 157.6
Net incurred loss and LAE related to:
Current year			273.5	293.8
Prior years			(0.2)	(9.3)
Total incurred	80.9	114.4	273.3	284.5
Net paid loss and LAE related to:
Current year			155.5	150.4
Prior years			135.6	72.6
Total paid			291.1	223
Net loss and LAE reserves, September 30	222.9	219.1	222.9	219.1
Plus reinsurance recoverable on unpaid losses	71.3	81.6	71.3	81.6
Gross loss and LAE reserves, September 30	$ 294.2	$ 300.7	$ 294.2	$ 300.7

LOSS AND LOSS ADJUSTMENT EXPE_4

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract]
Incurred losses and LAE attributable to prior accident years	$ 0.2	$ 9.3

REINSURANCE (Details)

REINSURANCE (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Premiums written:
Direct	$ 139.6	$ 197	$ 443.9	$ 576.6
Assumed	11.1	7.6	34.1	7.6
Ceded	(81)	(107.5)	(264.5)	(306.8)
Net premiums written	69.7	97.1	213.5	277.4
Premiums earned:
Direct	144.5	188.5	469.3	529.4
Assumed	10.8	0.9	31.5	0.9
Ceded	(86.7)	(104.3)	(279.2)	(304.9)
Net premiums earned	68.6	85.1	221.6	225.4
Losses and LAE incurred:
Direct	126.1	193.7	430	504.6
Assumed	11.3	1.9	35.7	1.9
Ceded	(56.5)	(81.2)	(192.4)	(222)
Total incurred	$ 80.9	$ 114.4	$ 273.3	$ 284.5

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details) $ / shares in Units, shares in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2022 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) insurance_policy	Sep. 30, 2021	Sep. 30, 2022 USD ($) insurance_policy state	Sep. 30, 2021	Jun. 27, 2022 USD ($)
Debt Instrument [Line Items]
Trading days weighted average price | state				30
Fair value of warrants percentage (in percent)		1%		1%
Gross Written Premiums | Geographic Concentration Risk
Debt Instrument [Line Items]
Concentration percentage (in percent)		100%	100%	100%	100%
Class A Shares
Debt Instrument [Line Items]
Warrants outstanding (in shares) | shares	0.3
Exercise price (in dollars per share) | $ / shares	$ 162
Fair value of warrants						$ 600,000
Warrants issued and outstanding shares percentage (in percent)		1%		1%
Term Loan
Debt Instrument [Line Items]
Stated percentage (in percent)	0.26161%
Insurance subsidiaries amount				$ 200,000,000
Term Loan | Covenant Scenario 1
Debt Instrument [Line Items]
Insurance subsidiaries amount				$ 150,000,000
Debt instrument, issued shares insurance policies (in shares) | insurance_policy		62,500		62,500
Term Loan | Covenant Scenario 1 | Gross Written Premiums | Geographic Concentration Risk
Debt Instrument [Line Items]
Concentration percentage (in percent)				12%
Term Loan | Covenant Scenario 2
Debt Instrument [Line Items]
Debt instrument, covenant compliance, maximum monthly cash spend		$ 12,000,000		$ 12,000,000
Term Loan | Secured debt
Debt Instrument [Line Items]
Debt amount	$ 300,000,000
Debt instrument, term	5 years
Term Loan | SOFR
Debt Instrument [Line Items]
Debt instrument, floor interest rate (in percent)	1%
Variable rate percentage (in percent)	9%

LONG-TERM DEBT - Schedule Of De

LONG-TERM DEBT - Schedule Of Debt (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Accrued interest payable	$ 6.5	$ 0
Unamortized discount, debt issuance costs and warrants	(12.6)	0
Total	293.9	0
Secured debt | Term Loan
Debt Instrument [Line Items]
Term Loan	$ 300	$ 0

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	0%	0%	0%	0%
Federal income tax rate (in percent)			21%

RESTRUCTURING COSTS (Details)

RESTRUCTURING COSTS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]
Cash expenditures	$ 0.1		$ 3.5
General and administrative
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	0	$ 0	8.4	$ 0
Severance, benefits, and related costs | General and administrative
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	0	0	5.6	0
Real estate exit costs | General and administrative
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	0	0	2.1	0
Software costs | General and administrative
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	$ 0	$ 0	$ 0.7	$ 0

SHARE-BASED COMPENSATION - Narr

SHARE-BASED COMPENSATION - Narrative (Details) shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($)	Oct. 31, 2021 tranche shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 7,800,000	$ 7,500,000	$ 21,800,000	$ 14,700,000
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	5,900,000	3,800,000	16,600,000	7,900,000
General and Administrative Expense | Organizational Realignment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 0		$ 2,100,000
Short Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches | tranche					3
Shares issued (in shares) | shares	7.2		7.2
Long Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches | tranche					5
Shares issued (in shares) | shares	7.2		7.2
Carvana
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches | tranche					8
Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 25,400,000		$ 25,400,000
Unrecognized compensation cost, period of recognition			2 years
Total share-based compensation expense	1,500,000	0	$ 10,300,000	0
Stock option expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, period of recognition			4 years
Unrecognized compensation cost, options	2,700,000		$ 2,700,000
Total share-based compensation expense	400,000	1,400,000	1,300,000	3,800,000
Restricted stock unit expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	55,500,000		$ 55,500,000
Unrecognized compensation cost, period of recognition			4 years
Total share-based compensation expense	$ 7,400,000	$ 6,100,000	$ 20,500,000	$ 10,900,000
Class A Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) | shares					7.2
2020 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) | shares	1.6		1.6

SHARE-BASED COMPENSATION - Warr

SHARE-BASED COMPENSATION - Warrants or Rights (Details) shares in Millions	Sep. 30, 2022 $ / shares shares
Short Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	7.2
Short Term Warrant | Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) | $ / shares	$ 180
Shares issued (in shares)	2.4
Short Term Warrant | Tranche 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) | $ / shares	$ 198
Shares issued (in shares)	3.2
Short Term Warrant | Tranche 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) | $ / shares	$ 216
Shares issued (in shares)	1.6
Long Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	7.2
Long Term Warrant | Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) | $ / shares	$ 180
Shares issued (in shares)	1.4
Long Term Warrant | Tranche 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) | $ / shares	$ 225
Shares issued (in shares)	1.5
Long Term Warrant | Tranche 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) | $ / shares	$ 270
Shares issued (in shares)	1.5
Long Term Warrant | Tranche 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) | $ / shares	$ 405
Shares issued (in shares)	1.5
Long Term Warrant | Tranche 5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) | $ / shares	$ 540
Shares issued (in shares)	1.3

SHARE-BASED COMPENSATION - Wa_2

SHARE-BASED COMPENSATION - Warrant Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 7.8	$ 7.5	$ 21.8	$ 14.7
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	0.3	0.4	0.7	0.6
Other insurance expense (benefit)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	0.3	0.4	0.8	0.9
Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	1.5	0	10.3	0
Warrant | Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	0	0	8.8	0
Warrant | Other insurance expense (benefit)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 1.5	$ 0	$ 1.5	$ 0

SHARE-BASED COMPENSATION - Shar

SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 7.8	$ 7.5	$ 21.8	$ 14.7
Restricted stock unit expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	7.4	6.1	20.5	10.9
Stock option expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.4	1.4	1.3	3.8
Loss and loss adjustment expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.2	0	0.6	0.6
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.3	0.4	0.7	0.6
Other insurance expense (benefit)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0.3	0.4	0.8	0.9
Technology and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	1.1	2.9	3.1	4.7
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 5.9	$ 3.8	$ 16.6	$ 7.9

SHARE-BASED COMPENSATION - RSU

SHARE-BASED COMPENSATION - RSU Activity (Details) - Restricted stock unit expense $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Number of Shares
Beginning balance (in shares) | shares	0.5
Granted (in shares) | shares	1.1
Vested (in shares) | shares	(0.1)
Forfeited, expired or canceled (in shares) | shares	(0.2)
Ending balance (in shares) | shares	1.3
Weighted-Average Grant Date Fair Value per Share
Beginning balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 162.36
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	34.07
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares	180.18
Forfeited, expired or canceled, weighted-average grant date fair value (in dollars per share) | $ / shares	114.94
Ending balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 53.90
Aggregate Intrinsic Value
Beginning balance | $	$ 27.4
Vested | $	3
Ending balance | $	$ 10.2

SHARE-BASED COMPENSATION - Opti

SHARE-BASED COMPENSATION - Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Number of Shares
Outstanding, beginning balance (in shares)	0.4
Granted (in shares)	0
Exercised (in shares)	(0.1)
Forfeited, expired or canceled (in shares)	(0.1)
Outstanding, ending balance (in shares)	0.2	0.4
Weighted-Average Exercise Price
Outstanding, beginning balance, weighted-average exercise price (in dollars per share)	$ 42.48
Granted, weighted-average exercise price (in dollars per share)	21.42
Exercised, weighted-average exercise price (in dollars per share)	6.60
Forfeited, expired and canceled, weighted-average exercise price (in dollars per share)	83.60
Outstanding, ending balance, weighted-average exercise price (in dollars per share)	$ 39.28	$ 42.48
Outstanding, weighted-average remaining contractual term (in years)	5 years 11 months 26 days	6 years 1 month 13 days
Outstanding, aggregate intrinsic value	$ 0.4	$ 9.5
Exercised, aggregate intrinsic value	$ 1.9

OTHER COMPREHENSIVE LOSS AND _3

OTHER COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 388	$ 762	$ 536.4	$ 1,032.4
Other comprehensive loss	(2.3)	(0.5)	(7.3)	(4)
Ending balance	330.9	636	330.9	636
Change in net unrealized gains (losses) on investments:
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(4.6)	2.1	0.4	5.6
Other comprehensive loss before reclassifications	(2.3)	(0.5)	(7.4)	(1.6)
Net realized losses (gains) on investments reclassified from AOCI to net loss	0	0	0.1	(2.4)
Other comprehensive loss	(2.3)	(0.5)	(7.3)	(4)
Ending balance	$ (6.9)	$ 1.6	$ (6.9)	$ 1.6

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) $ / shares in Units, shares in Millions, $ in Millions			3 Months Ended		9 Months Ended
		Aug. 12, 2022	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares
Earnings Per Share [Abstract]
Conversion ratio		0.0556			0.05556
Net loss | $			$ (64)	$ (133)	$ (230.3)	$ (411.2)
Weighted-average common shares outstanding: basic (both Class A and B) (in shares) | shares	[1]		14.1	13.9	14	13.8
Weighted-average common shares outstanding: diluted (both Class A and B) (in shares) | shares	[1]		14.1	13.9	14	13.8
Loss per common share: basic (both Class A and B) (in dollars per share) | $ / shares	[1]		$ (4.54)	$ (9.57)	$ (16.45)	$ (29.80)
Loss per common share: diluted (both Class A and B) (in dollars per share) | $ / shares	[1]		$ (4.54)	$ (9.57)	$ (16.45)	$ (29.80)
[1]Reflects the 1-for-18 reverse stock split that became effective August 12, 2022. Refer to Note 2, “Basis of Presentation and Summary of Significant Accounting Policies.”

LOSS PER SHARE - Schedule of An

LOSS PER SHARE - Schedule of Anti-Dilutive Securities (Details) - shares shares in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	10.1	1
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.2	0.4
Nonvested shares subject to repurchase
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.1	0.1
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	1.3	0.5
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)	0.8	0
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	7.7	0

GEOGRAPHICAL BREAKDOWN OF GRO_3

GEOGRAPHICAL BREAKDOWN OF GROSS WRITTEN PREMIUM (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Effects of Reinsurance [Line Items]
Total	$ 150.7	$ 204.6	$ 478	$ 584.2
Assumed	11.1	7.6	34.1	7.6
Texas
Effects of Reinsurance [Line Items]
Total	26.2	40.4	89.5	120.8
Georgia
Effects of Reinsurance [Line Items]
Total	15	21.6	48.8	61.3
Colorado
Effects of Reinsurance [Line Items]
Total	10.3	9.3	30.8	25.7
Louisiana
Effects of Reinsurance [Line Items]
Total	8.7	12.3	27.6	32.9
Pennsylvania
Effects of Reinsurance [Line Items]
Total	9.1	11.8	26.8	31.5
Utah
Effects of Reinsurance [Line Items]
Total	8	9.1	24.1	25.6
Nevada
Effects of Reinsurance [Line Items]
Total	7.3	9.5	23	26
South Carolina
Effects of Reinsurance [Line Items]
Total	4.5	8	16.4	20.6
Oklahoma
Effects of Reinsurance [Line Items]
Total	5.2	6	16.1	17.5
Indiana
Effects of Reinsurance [Line Items]
Total	4.7	6	14.3	17.2
All others states
Effects of Reinsurance [Line Items]
Total	$ 51.7	$ 70.6	$ 160.6	$ 205.1
Geographic Concentration Risk | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	100%	100%	100%	100%
Geographic Concentration Risk | Texas | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	17.40%	19.70%	18.70%	20.70%
Geographic Concentration Risk | Georgia | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	10%	10.60%	10.20%	10.50%
Geographic Concentration Risk | Colorado | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	6.80%	4.50%	6.40%	4.40%
Geographic Concentration Risk | Louisiana | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	5.80%	6%	5.80%	5.60%
Geographic Concentration Risk | Pennsylvania | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	6%	5.80%	5.60%	5.40%
Geographic Concentration Risk | Utah | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	5.30%	4.40%	5%	4.40%
Geographic Concentration Risk | Nevada | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	4.80%	4.60%	4.80%	4.50%
Geographic Concentration Risk | South Carolina | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	3%	3.90%	3.40%	3.50%
Geographic Concentration Risk | Oklahoma | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	3.50%	2.90%	3.40%	3%
Geographic Concentration Risk | Indiana | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	3.10%	2.90%	3%	2.90%
Geographic Concentration Risk | All others states | Gross Written Premiums
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	34.30%	34.70%	33.70%	35.10%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Millions		3 Months Ended			9 Months Ended
	Nov. 09, 2022 employee	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Subsequent Event [Line Items]
Cash expenditures			$ 0.1		$ 3.5
Total share-based compensation expense			$ 7.8	$ 7.5	$ 21.8	$ 14.7
Minimum | Forecast
Subsequent Event [Line Items]
Severance, benefits, and related costs		$ 10.5
Cash expenditures		7
Total share-based compensation expense		8
Maximum | Forecast
Subsequent Event [Line Items]
Severance, benefits, and related costs		11.5
Cash expenditures		7.5
Total share-based compensation expense		$ 8.5
Subsequent event
Subsequent Event [Line Items]
Workforce reduction | employee	160
Workforce reduction, percent	20%