Shares of insurer Root ROOT.O slump 19.5% to $48.5.
The company on Wednesday cut its 2026 policies-in-force guidance to flat from its earlier view of 9% growth, due to a competitive environment especially in the direct channel.
"The competitive environment in Direct remained challenging in the second quarter, as carriers increased marketing spend while lowering prices," Alex Timm, co-founder and CEO, said.
"When these cycles occur, we remain disciplined. We plan to pursue growth only when it meets our target returns. While that decision can constrain near-term growth, we believe it is the right one for building long-term shareholder value," he added.
Q2 gross written premium and gross earned premium fell 2% and 1% from a year earlier, respectively.
Including session's moves, ROOT is down 32.5% year to date.
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