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Root Insurance valued at $3.65B after latest funding round

One of the fastest-growing insurance technology startups has now reached a $3.65 billion valuation.

Root Insurance Co. closed its $350 million series E funding round, bringing its total funding to $523 million with an additional $100 million in debt financing. This latest round was led by DST Global and Coatue Management LLC.

The Columbus, Ohio-based property and casualty insurer offers personal auto policies that rely on telematics data, similar to Progressive Corp.'s Snapshot. Though telematics was not a new concept when Root Insurance jumped into the game, the insurtech startup's system differentiated itself by relying exclusively on the driver's smartphone.

Since July 2016, when Root Insurance started writing policies, the startup has seen explosive premium growth. An S&P Global Market Intelligence analysis found that Root Insurance was the third-fastest-growing auto insurer in the U.S. in 2018, by direct premiums written, based on companies that have filed statutory statements.

Root Insurance co-founder and CEO Alex Timm said the latest capital will allow the startup to "extend our innovation lead and accelerate our strategy to transform the car insurance world."

The company recently expanded into its 29th state and is now available to more than 65% of the U.S. driving population. In the first six months of the year, Root Insurance wrote more than $187 million in insurance premiums.