This week and last week’s shortened holiday have been packed with news from the industry. Since we’ve been away for awhile we are including some insights that are older than usual featuring insurtech investments, market conditions and a notable earning announcement:
- Two insurtech events of note, Metromile is going public through a blank check company merger. Hippo secures a $350M investment from the venture arm of a large multi-national insurer. The capital infusion will help both to scale and grow levels of maturity to become major players.
- More results are coming in from 2020, a year that has seen a global pandemic and increased frequency in CATs create a difficult environments for everyone in the economy and insurers are no exception. The US P&C industry’s underwriting income falls 86% but combine ratio only ticks up 0.7%. With promise of a vaccines starting to flow this month, we are hopeful that we have weathered this difficult year and 2021 can only be brighter.
- Root announces 3rd quarter earnings that miss expectations. Their stock price is down 48% from IPO price and market cap lowered to $3.5B. There could be optimism as they claim to be using their technology to build a more profitable book of business and have a new shell to use in 48 states. A lower valuation may make sense as it appears it will take time to improve results.
Thank you for following and stay tuned for more updates including solution stories and other thought leadership.