Press Release: Root, Inc. Schedules Conference Call To Discuss 2025 Fourth Quarter And Full Year Financial Results

Looking back on property & casualty insurance stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Old Republic International and its peers.

Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards.

The 33 property & casualty insurance stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 14.9%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Old Republic International

Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.

Old Republic International reported revenues of $2.32 billion, up 8.2% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ book value per share estimates and a solid beat of analysts’ revenue estimates.

Interestingly, the stock is up 2.5% since reporting and currently trades at $43.05.

Best Q3: Root

Pioneering a data-driven approach that rewards good driving habits, Root is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.

Root reported revenues of $387.8 million, up 26.9% year on year, outperforming analysts’ expectations by 4.5%. The business had an incredible quarter with a beat of analysts’ EPS and net premiums earned estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 20.7% since reporting. It currently trades at $71.

Weakest Q3: Progressive

Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.

Progressive reported revenues of $22.51 billion, up 14.2% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS and book value per share estimates.

As expected, the stock is down 15.7% since the results and currently trades at $202.71.

Read our full analysis of Progressive’s results here.

Skyward Specialty Insurance

Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.

Skyward Specialty Insurance reported revenues of $382.5 million, up 27.1% year on year. This result surpassed analysts’ expectations by 14.3%. It was a stunning quarter as it also recorded an impressive beat of analysts’ net premiums earned and revenue estimates.

The stock is flat since reporting and currently trades at $46.52.

Read our full, actionable report on Skyward Specialty Insurance here, it’s free.

W. R. Berkley

Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.

W. R. Berkley reported revenues of $3.77 billion, up 10.8% year on year. This number beat analysts’ expectations by 1.7%. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ book value per share estimates and EPS in line with analysts’ estimates.

The stock is down 7.2% since reporting and currently trades at $68.38.

Read our full, actionable report on W. R. Berkley here, it’s free.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Assurant and the rest of the property & casualty insurance stocks fared in Q3.

Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards.

The 33 property & casualty insurance stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 14.9%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Assurant

With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.

Assurant reported revenues of $3.23 billion, up 8.9% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and net premiums earned estimates.

Interestingly, the stock is up 10.7% since reporting and currently trades at $237.54.

Best Q3: Root

Pioneering a data-driven approach that rewards good driving habits, Root is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.

Root reported revenues of $387.8 million, up 26.9% year on year, outperforming analysts’ expectations by 4.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.5% since reporting. It currently trades at $72.09.

Weakest Q3: Progressive

Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.

Progressive reported revenues of $22.51 billion, up 14.2% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ book value per share estimates.

As expected, the stock is down 15.1% since the results and currently trades at $203.99.

Read our full analysis of Progressive’s results here.

Erie Indemnity

Operating under a unique business model dating back to 1925, Erie Indemnity serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.

Erie Indemnity reported revenues of $1.07 billion, up 6.7% year on year. This result lagged analysts' expectations by 1.6%. Overall, it was a slower quarter as it also produced a miss of analysts’ revenue estimates and a narrow beat of analysts’ EPS estimates.

The stock is down 8.6% since reporting and currently trades at $283.12.

Read our full, actionable report on Erie Indemnity here, it’s free.

Allstate

Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.

Allstate reported revenues of $17 billion, up 3.8% year on year. This print surpassed analysts’ expectations by 1.5%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.

The stock is flat since reporting and currently trades at $196.12.

Read our full, actionable report on Allstate here, it’s free.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Fidelity National Financial and the rest of the property & casualty insurance stocks fared in Q3.

Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards.

The 33 property & casualty insurance stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 14.9%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Fidelity National Financial

Issuing more title insurance policies than any other company in the United States, Fidelity National Financial provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary.

Fidelity National Financial reported revenues of $4.03 billion, up 11.9% year on year. This print exceeded analysts’ expectations by 13%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ revenue and EPS estimates.

Chris Blunt, F&G's Chief Executive Officer, said, "We delivered outstanding third quarter results highlighted by record assets under management before flow reinsurance of $71 billion fueled by one of our best sales quarters in history, the launch of our new reinsurance sidecar, and strong performance across our business through the third quarter as we execute on our strategy and make continued progress towards our 2023 Investor Day targets. Our business continues to benefit from increased scale and disciplined expense management, as our ratio of operating expense to AUM before flow reinsurance has improved to 52 basis points, down 10 basis points from the third quarter of 2024, with further improvement expected by the end of the year. Our high quality investment portfolio is performing well and credit related impairments remain below our pricing assumption. F&G is becoming a more fee based, higher margin and capital light business as we leverage our position as one of the industry's largest sellers of annuities and life insurance."

The stock is down 3.2% since reporting and currently trades at $52.79.

Best Q3: Root

Pioneering a data-driven approach that rewards good driving habits, Root is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.

Root reported revenues of $387.8 million, up 26.9% year on year, outperforming analysts’ expectations by 4.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.5% since reporting. It currently trades at $72.09.

Weakest Q3: Progressive

Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.

Progressive reported revenues of $22.51 billion, up 14.2% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ book value per share estimates.

As expected, the stock is down 15.1% since the results and currently trades at $203.99.

Read our full analysis of Progressive’s results here.

Allstate

Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.

Allstate reported revenues of $17 billion, up 3.8% year on year. This number topped analysts’ expectations by 1.5%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.

The stock is flat since reporting and currently trades at $196.12.

Read our full, actionable report on Allstate here, it’s free.

Bowhead Specialty

Named after the Arctic bowhead whale known for navigating challenging waters, Bowhead Specialty Holdings is a specialty insurance company that provides customized coverage for complex and high-risk commercial sectors.

Bowhead Specialty reported revenues of $143.9 million, up 23.3% year on year. This print beat analysts’ expectations by 1.2%. It was a strong quarter as it also recorded a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

The stock is up 4.1% since reporting and currently trades at $25.36.

Read our full, actionable report on Bowhead Specialty here, it’s free.

What Happened?

Shares of digital auto insurance company Root fell 5.6% in the afternoon session after a Wells Fargo analyst lowered the price target on the stock. 

The analyst cut the price target to $75.00 from $96.00, a reduction of nearly 22%. While the bank maintained its "Equal-Weight" rating, the lower target signaled a more cautious view of the company's prospects. The move appeared to reflect wider concerns about Root's financial position. The company had experienced a decline in operating cash flow and a decrease in its available capital, raising questions among some observers about its financial stability and flexibility.

What Is The Market Telling Us

Root’s shares are extremely volatile and have had 56 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock dropped 10.2% on the news that its third-quarter earnings report showed a net loss, which overshadowed beats on revenue and earnings per share (EPS). 

The company initially saw its stock rise after it posted revenue of $387.8 million and an EPS of -$0.35, both of which were better than analysts had predicted. However, the positive sentiment did not last as investors looked closer at the company's operational performance. Root's combined ratio, a key measure of an insurer's profitability from its daily operations, came in at 102%. 

A ratio above 100% indicates an underwriting loss, meaning the company paid out more in claims and expenses than it earned in premiums. This result was also 11 percentage points worse than in the same quarter last year, suggesting deteriorating profitability. The stock's subsequent drop suggested investors were more focused on this underlying weakness than the headline beats.

Root is up 4.9% since the beginning of the year, but at $74.35 per share, it is still trading 58.2% below its 52-week high of $177.69 from March 2025. Investors who bought $1,000 worth of Root’s shares 5 years ago would now be looking at an investment worth $178.43.