Insurtech company Root partnered with Hyundai Capital America, the captive finance arm of Hyundai Motor Group, in a move aimed at offering data-driven, competitive auto insurance rates directly to car buyers.
The agreement extends Root’s reach in the automotive space and aligns with its ongoing strategy to scale through embedded and partnership-based distribution. Hyundai Capital America provides financing for Hyundai, Kia, and Genesis vehicles.
“This collaboration further diversifies and expands Root’s offerings across distribution channels,” said Alex Timm, Root’s co-founder and CEO. “Our partnership channel has seen new writings increase 115% year-over-year as our pipeline continues to expand across the automotive, financial services, and agent sub-channels.”
Timm emphasized that partnerships and embedded insurance remain central to Root’s customer acquisition strategy. “Building differentiated access to customers remains a core pillar of our company strategy. As the partnership channel grows, we plan to continue to eliminate friction in the purchase experience by moving partners to fully embedded experiences,” he said.
The Hyundai partnership follows a year of strong financial performance for Root. The company reported $22.1 million in net income for the fourth quarter of 2024, compared to a $24 million net loss a year earlier.
For the full year, Root posted $30.9 million in net income, reversing a $147.4 million net loss in 2023. Net premiums earned jumped to $299.7 million in Q4, up from $176 million, while the combined ratio improved significantly to 91.5 from 111.9.
The collaboration with Hyundai reflects Root’s broader push to capture market share in the auto insurance landscape, where embedded and partner-driven solutions are gaining traction among both insurers and auto manufacturers.
Shares of Root traded at $124.78 on the afternoon of April 2, down 2.97% from the previous close.
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