Root promoted CFO Daniel Rosenthal to the new position of Chief Revenue and Operating Officer, an organizational change the Ohio-based digital auto insurer is pursuing to help accelerate growth.
In his new position, Rosenthal will oversee areas such as performance marketing and growth, corporate strategy, business development, and insurance, including underwriting and pricing initiatives.
Root CEO Alex Timm said that the new position will help the company strengthen its focus on reaching customers in multiple ways.
“As we continue to connect with customers through a variety of new and existing channels, [Rosenthal] will be instrumental in driving Root’s growth and success,” Timm said in prepared remarks.
Among new customer initiatives: Root disclosed in August in its 2021 second quarter shareholder letter that it would be scaling its internal sales agent program and piloting a program to provide its digital auto and other coverage through independent licensed agents.
In his role as CFO, Rosenthal has guided Root through several funding rounds, including the company’s IPO in October 2020. Since August 2019, he has overseen the finance, legal, risk and government affairs teams. Root said he will continue his CFO duties during the search for a replacement.
Rosenthal joined the Root Board of Directors in 2017. Before Root, Rosenthal held leadership positions at innovative firms in the aviation industry, according to the company. In 2009, he co-founded Milestone Aviation Group, which GE Capital acquired for $1.8 billion in 2015. Subsequently, Rosenthal served as Chairman, President and Chief Executive Officer of Milestone as well as EVP of Financing and Products for GE Capital Aviation Services (GECAS). Prior to Milestone, Rosenthal spent four years at NetJets, where he held various leadership roles, and worked as an attorney at Williams & Connolly LLP.
Root reported a $178.6 million net loss in the 2021 second quarter, compared to a $32 million net loss the previous year. The company has made steady traction growing its premium volume, thanks in part to rate hikes and new initiatives. But it has been growing rapidly in order to reach scale, a costly strategy used by many InsurTechs. The company also dealt with higher costs for repairs, used vehicles and a return to pre-pandemic miles driven.
Source: Root