The news: Insurance earnings season brought results from public insurtechs, revealing these tech-focused insurers have reached meaningful scale:
- Lemonade, a P&C insurer founded in 2016, is now a $5.1 billion company by market cap with in-force premiums of $1.16 billion in Q3 2025, up from $889 million last year. It offers renter’s insurance, auto insurance, pet insurance, and term life insurance. Lemonade markets AI-driven quoting, underwriting, and claims management, while a social impact program strengthens its brand appeal.
- Root, an auto insurance insurtech, reported $387 million in gross written premiums, up from $332 million in 2024. It uses telematics and analytics to individualize risk and price policies. Root is a “full-stack carrier,” controlling design, underwriting, distribution, and claims, which enables the repricing of policies in real time. It plans to expand to other personal lines.
- Hippo, a property insurance insurtech, is smaller by market cap with a valuation of about $800 million. In Q3 it reported $117.9 million in net written premiums and positive net income. Hippo’s flagship product is homeowner’s insurance, which it prices using analytics based on smart home data. It also provides a service for comparing quotes and “insurance as a service,” renting out its licenses and infrastructure to other insurers.
Digging into the data: Profitability remains elusive for most established insurtechs. Lemonade cut its net loss by nearly half to $38 million, showing improvement but still operating in the red. Root slipped back into a narrow loss ($5.4 million) after turning a profit last year. Hippo offers a brighter picture, posting a profit in Q3 and year to date after losses in 2024.
Our take: Insurtechs have demonstrated that they can scale and they're making progress on the fundamentals of the insurance business—disciplined underwriting, careful expense management, and often improved unit economics. They haven’t unseated incumbents and aren't likely to. But evolving business models, new partnerships, and glimmers of profitability suggest these companies have staying power.