The Progressive Corporation (PGR) 3 Nov 212021 Q3 Earnings call transcript

Welcome to The Progressive Corporation's Third Quarter investor event. The Company will not make detailed comments related to the quarterly results.

In addition to those provided in its quarterly report on Form 10-Q and the latter to shareholders, which have been posted to the Company's website, although CEO - will make a brief statement. The Company will then use the remainder of the event to respond to questions. Acting as moderator for the event will be progressive Director of Investor Relations, Doug Constantine. will event I to time, this turn over the Mr. At Constantine.

[indiscernible] and you good Thank morning.

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always, in today's These results and to could management's event. and As discussions include that this forward-looking during events subject statements current to event statements. differ are many may uncertainties actual on risks materially and are from based cause discussed expectations those

concerning the on and supplemented Form second, of information December those on where statements, Report and year factors for available as and XXXX, XX, for forward-looking XXXX we Annual reports third first, is XX-K XX-Q of uncertainties businesses, quarters other our to the by affecting face. of our find discussions ended risks you the the harbor related our challenges risk safe statements discussions will Additional

our will line, conference from question CEO Tricia Tricia. our Griffith Before the to make going comments. first introductory some call

Thanks, you conference welcome joining Doug. Good to appreciate morning Quarter call. us. We and Progressive Third

we're XX through result an years. what's a most needed quarter pandemic ratio our challenges XXX an storm do CR annual our to the effect stated During challenges meet in in to third quarter, fashion, combined in supply our as on with increase The returned And as of the In challenges facing publicly continued driving these the normal is basis. progressive facing head second first expensive an hurricane from and with added customers quarter to call, our habits, to of the we country discussed valuation. history, above goal were the XX challenges Progressive those constraints of as we vehicle these Ida. unprecedented the contributed open on

we taking our XX efforts across of We're our meet our to target. As increases part ensure product lines. rate

the in placed industry in headwinds While meet scrutiny the states, the Auto, entire as average frequency, the Personal X%. increases been buffeted increases to in Personal increase objections the quarter, we've increase rate points and process. by has The in had insurance rates which part Regulators The in higher through X third Commercial on adequate rates points Year-to-date rising work regulators and with been quarter, are in-market and And Auto Lines, pricing, revision severity, were post-pandemic we've real. of seriously. about take the our mandate pressures catastrophes. of weather-related their XX X such, able effective of to X third increased costs. during of to points In regulators an aggregate of Property.

taking the changes seriously and we're reacting So environment in the decisively.

that we're products, of lever address more have to our objective. revisions using suite our rest work across to XXXX ensure the calendar and Underwriting is year meet as of XXXX We we and process another profitability.

premium, Personal taking Auto, Personal underwriting in progress now to targets. changed under the underwriting model, states which our to our CAT state our to been pressure has additional X we hasten to our continue meet X including they several objective. profitability we've where Homeowners, And Lines are advances with exposure, meet Commercial rules In is use our profit steps our for exposure, targeted reduce about further this and the we our high and quarters, underwriting. non-renewals. of representing level accurately exposures In of ensure XX% We dot write to in science

targets. non-renewals need where to to our nontraditional use we meet times there are methods are our not While preferred path,

macroeconomic to reducing Commercial we strong PIF in and continue Xrd year-over-year due of quarter Though the with its Homeowners for-hire business, competitive the we continues growth While find premium double-digit growth. capitalize to premiums growth X%, of product XX% Commercial Lines growth environment Homeowners unfortunate auto on written Personal to third take quarter our double-digit managers X% side the trucking on of and PIF often to landscape written the steps respectively. saw the in profitable grew scour Lines side the Personal see actions both quarter. to largely the effect straight segment. underwriting our the continue opportunities. growth in while recorded growth, of and profitability have growth, Lines

Mike this opportunity to my like our Cherny, for offer Progressive thank to Officer congratulations on and Marketing Claims Finally, President, retirement. planned to again, to our their once take Seeger, their I'd Chief and Jeff contributions

While that task, their up and Mike question. take and presence Thank will replacements Jeff the greatly I'm confident the be to to first I'm are you ready missed.

[ Operator instructions] one follow-up.

first of Wolfe Research. question the Your of from comes Mike line Zaremski

Your line now open. is

of like -pandemic kind feel are levels, bigger of they're for insurance gave color on out taking. guess on Progressive Does increasing? of geek, the focus an guys is the of side. know kind one it -- I missed the I first they continue odd nearing in you be I of on an equation. was I the get plateauing? the But any So as frequencies predicated dives increases the deep accident guess kind and past frequency some pre about of a of, -- side of I question, some -- of guess you rate Is color I a to the severity do. I and the morning. that's there'll know I Good on to hoping of lot lot there. lot think Hi. You insights Auto, uncertainties actions -- the it your Maybe a maybe Personal potential

that have to we to closely from watch then there's react Thanks, have dynamic we data since on usage-based interesting is and watch Mike. much of big trends that this going and to it swiftly again. a insurance especially Yes, we There's share, the do Snapshot. closely, many so to uncertainty that I'd so a we're the data. our really been watch, like because pandemic And couple shifts

at look vehicle we've you down our is quarter, each that haven't in and from There X% they is And the since really PD changed XXXX to The last call. that XXXX and about bigger has picked if traveled, in news X% frequency still watched noticed So baseline. miles we've up. specifically collision.

we the let So color bit you things a me for. give of little of watch

about So, to quarter points. further X collision that more X, down XX vehicle to than in that and X In miles frequency narrowed narrowed during X, quarter quarter points traveled. X, was points,

at look we So day parts.

day. was across whole During quarter X, narrowing that the

that during morning to the so hour, more think X, we of X saw frequency rush quarter AM narrow During X AM.

because to some well, have congestion the people read return that see evidence Delta a surprising till we the off haven't in most headlines as bit fully variant pushed office. full a little companies to the returned January. While the We to there's because us office it's

taking So at could that kids it so are be our going children school to school. we're back

we're other closely. watching there's variables really So that

what think mean? interesting work. when many is course, see what first to that certainly what going will of on And be to in for that'll return stated an think data I there's to person, the based companies interesting they're be happens be return won't since have lot pandemics. going would every mean to a It quarter flexibility of We single point. think I full XXXX, built

in the sharply up overnight hours. frequency observed have also We

XAM, levels is smaller and both correlated So reopening above X Covid XX%. people pre think weekends like of that weekday a and with XX% of about March driving. frequency amount to to not is the - by Again,

close day-part, by state, BMTs continues each watch to closely. be closely that watching But see miles going So or to not. we're vehicle and etc., gap traveled very we're the on interesting how frequency to will

data from we're watch interesting going Mike? a that. to continue lot that So telematics to we and were our able Does get help of information to

of you to any boss anything down down may, for going -- there look paid conservatism picks? that that. follow-up Progressive I'm catastrophes, clogged thank running Yes, maybe on Progressive's 's paid And be if too of they is we from this I a lot ratios, commercial question, and Company-wide. the you I to for -- levels lot some last that and color being cash of if seeing that's some codes at tensures, are the know on a exclude And in incurred slower. I overall seem if excited My to -- we're points guess be what's -- loss the if

remember. we in consistent with Well, has can reserving, adequate any long to of think our time we be that frame, minimal I for as as and want been variation,

metrics really it's on to at the hard think historical we're when data. rely I looking

or the it you So whether own or underlying it's really you companies paid-to-incurred, at data, look even case to when our hard without having IBNR historical data. compare

severity. All at I ratios about that feel adequate can to and changers attributed very have with We're Progressive the then of in the we're minimal majority when to about a that rebound good and frequency, in for say about half drop, bit. point -- you closure that. So rate Florida we year, increase unfavorable be we change our What would with again, where at, is look those variation.

believe and changed not conservative we model. our there's So don't have we

Thank you.

Thanks, Mike.

of next of line Your question Morgan comes Stanley. the Michael from Phillips

I about the from the environment. your in see regulatory how comments two Tricia, letter preached in risk Thanks. forms Good of morning. you

refunds referring guess, that risks The are or around first on risk? to mandates of so, that's or that I the around -- of profitability XXXX. was might happen possibility rebates one, and kind of guess and is regulatory the real just how mandatory you more if rebates the from I that

swiftly then gave the another the this our $X months. here had billion our we that and more live of top And back the $XXX which as rates by and to industry equated Progressive X%, was I of an X margins. to And referring XX% certainly asymmetry none when our the gave had lifetime hopefully we unprecedented we course, have decrease another that to where over event us customers we to of will million excess in a decreased on fact back. that and

So and are place. that what we And all need rational. we rate. have in because are I we're end. that's open was rates, now sure make make They want consumers. was to we of competitive available referring points, good trends in our XX we're that much different and for to the sure a up want regulators believe And Severity and to

sides. that They the and working that things And sense. to real. the constituents. the I many both with are But got definitely rate they adequate for really what was the their regulators work in we of of there change the data need which again, see sure states majority it's when so, want get with, we're makes want make we go are to referring and swiftly, to rational is And to that is rates

when from just if the that I talk seeing that feels that's there to there give guess the you're real. with don't risk to case? rate are regulators Okay. increases. therefore, side second what we Stepping -- prospective increases and the lasting rate on isn't was you maybe in If severity concerns want line long

either we're there with is get improved. state which Well, regulated, it because ways are and rates different

And so differently. different states at look it

requires state Insurance fill you backwards the like as their look us So of to California, look Department at a templates. to up

behind So, outpacing and while little a actually was picked this frequency, bit countrywide has up is in at California it point.

templates, believe going we're fill on year. claims will rate And those of activity distorted we last happen to What seeing. the based reflective be -- so, is data up you it's the not are when from indications those

rate we'll So and rates in, then show be able in as California. earn and frequency the to that we're templates and to put we'll increase in that able will we adequate be and severity -- trends

marketing For now, to update in slow California spending reduce to our to department. continues that growth, to able and going our we're be

department, is every So every department different. we and little a with work bit

and file use. You have can

work file give rates make each We our on prior street. need good we to data putting with the department can them You feel approval. sure about the they to

it. Good Thank you appreciate very Okay. I colors. much.

Mike. Thanks,

Jimmy Your of Bhullar JP next question comes Morgan. from of the line

Good morning. Hi.

your happening even had on like sort have long-term you to the where first it in you goals margin through be prices, I line and country Is what's catching the through a states frequency been to are happens in business. this months been. and your the next six three but overall to process your just Where that are severity, go So, or with the think mentioned the of of up as terms that California? California you longer with and what you already, asked whole Auto getting something could question along have you

about bit wanting and -- longer apple. the continue on Yeah, I think years often last XX it to will little could of a a in depending be states. to think bites actually probably trends that we're bit the carefully. need the little more than take watching talked We've We rate, smaller

last closely, dramatically since year. of So we're watching the so changed March they trends because especially

I trends, that so states. swiftly. going including premium, depending And is average premium, reflects it and to would What into that we'll And written watch lot say change. react can a differently that we're a goes there's those and on

like have the you So a state would might if grow you Florida, rates countrywide. affect there, right average high and have a and premium you that in don't don't written

inputs, many including our so different there's So consumers.

if versus Robinson's, written in So shrink average average have premium that premiums. Sam's also you -- because written if higher you they will a affect

So we the And then question unfold. and information. the to trend seeing they we're more about And with as continue how usage-based then believe shared we're our watch I react we'll those. getting the trends there, will need swiftly again to we'll opening changed

business --obviously, saw the the business, you benefits plus at as it's a own on is I back far realize recently, on margins or just to you're think XXX% to willing as gaps you its I build continue that I be providing weak can margins this you to that ratio? trying auto been business, have underwriting think Property the but a -- profitable other could or Okay. And it that underwrite you're subsidizing remember. Homeowners margins but on combined is then

not writing happy XXX% make at our XX% an we're all to aggregate ratio. combined it We So, a want in products of with there.

has brand, for a it XXX, different are worked. was home we'll them to that year, not do what have it's want and Robinson's but to assure don't fully of But so our to on work, look started We but We want auto lot that. customers you our based We that. our we done bundles, do you think continue at what at none we've great subsidize. if has happened know catastrophes. Again, over of this has I

and in at compare the it of look we're states, more industry actually the competitive. you If very to non-volatile

So different. we knew we something need to do

importantly, nearly we year, we're us next talked to XX our to we've up took more and with or about going a couple bigger customers. X of portfolio a rates, year, our profitability shift of doing the that last to then year is So closer we're points two. cost property things our sharing points, get And this over

some We where had of ASI think catastrophes. have of hail and strong, alley. We've legacy up was the lot Texas, and a really states Louisiana of Florida, through

more business there there. We of because have of more exposure our book is

our the of bit over that volatile the so mean, coastal shifting portfolio, of states. of XX% shift of We're state, the XX% rest rest our country, going the I think be non-volatile state from a non-volatile. catastrophic time the away So is more little portfolio. over the in XX% to to to of

appoint are and I about to reduce to We non-renewals. in remarks movement states my going non-volatile footprint volatile the portfolio. states, in opening some in more And more have those our that make balanced targeted a agent agents talked

around we we We sure that still we that are is we more future, get to balanced a will our really segmentation. should portfolio. work purchased ASI of profitability. We both And to believe on we now -- Progressive that's we're that, now things -- to but focus happy have in Florida. believe are doing commence very besides rate We going that specifically we're start making to home, continued our the the increases, in and mention I in goal

segmentation a auto to certainly like believe to product. big want We're us is enhance going we will that we So those we get continue And piece an where levers it. to to of go. help our have

you. Thank Okay.

Thanks.

David comes Evercore of question of next from the Motemaden Your line ISI.

rates. surprise what's had on is of could you going Wondering through guess, little just putting down haven't like And in taking. is this bit rates and that I were reflection than that Did down? conversion and the that I I changes price rate segment. and Or really you question of little the that in only rates direct actions just the it about some some the to you increasing if is saw competitive just environment down I PIF talk speak of which given more why about a would've a conversion Hi, does just bit the morning. more? expected talk could -- Maybe hit was X% the you're good a around less you're are? not why that just that you much that yet? peers of quarter,

It's a XXXX. of a bunch of including There's happening quarter in what David. great of things was X question, different some timing

our would back So in when I I to new conversion, app. go think about decline

prospect So the side, XXXX. We in on was that agency elevated down XX%. are they about think denominator

quarter year two. virtually back three, quarter in this and we That to there in on pulled So, XXXX, move advertising. shopping was addition, no in then

we was we product the stable, have think competitive So so a do think still side. fairly conversion direct we on

coverage prospects was side, conversion material about down like material rate we tightly may XX% the slightly, ups the based side. the a on In increases, conversion there be really stimulus on States a drops going On bit had timing-wise Michigan put a specifically in talked down is big high to X down where have in was of that last direct we and the And also fact But and based some but year. there's place, agency about overstated, reform. that into That you on were lot. Again, we at underwriting this conversion. lot even restrictions time due

advertising lot has -- new a with to from that the has of reduction been think do has -- to the I apps. do

more more anything? as advertising. about guys add that you reduced our change and conversion, could feel want Do we to rate good as we So come in,

quotes of we're I conversion other getting the could thing across the briefly that that countrywide mix geographies. would is add influence

change. level. had in we at area concerns we in the we're spend in that you So level, to spend the area, at where just previously decrease by simply conversion conversion adjusting ability in have that shut the on reduce by or conversion, and we higher have ad see mix. generate mix an local can that with show that ads changes And a if advertising, then would local will in quotes When the off very total you direct profitability

one rate also side, direct interestingly for on thing can marketing influence your the based sure So but conversion spend. you on is

you're they're we just more thing, naturally your spending fall our add shop. because conversion because less; less, you've simply consumers because goes then would prospects got one I come that when when further spend up motivated to engaged

have what rate will conversion that be would counteracting of increases that offset So a effect some on will doing.

That Got it. makes sense.

So those than this I X much yet? a you has the that's I we like it that. policyholders, I guess, to would've just a just points sense. -- in as on been how the maybe, my expected. for about policyholders still combination you've I And some with sounds talk on just of just that that year Or when year. rate the had conversion rate far guess that think that new need quote the That's look makes just of bit follow-up, helpful. also book. policyholder volume the well of thinking of points understanding well I guess, guess when points X then I My more the as renewal That taken gotten question seeing I this you've I come? is X is could existing about at business, were is resilient so life guess, a some of on on that expectancies, lot how about

could anything. Pat, add and say, you would I Yeah.

yesterday. starting I think that streets rate, had I got so that -- to that's change a had on the yet months. we still think it's X come of old renewed rate because if and the I've today, for I think

won't until it into So But inflationary that then, measures work I -- I Xth that in have we monthly new factors. get over one their earns month. that and then, Xth have some month, rating that

to will and it. that's in on So each one depending we of reasons months so at we auto the passenger timing And get remember, to it when in position continue nimbler really can be need we of And it's so private auto -- X% that so the states continue rate. Thanks, depends our policies earn it's majority policies have why X our different on David. our rate state. to needs, aggregate, different on

Got you. it. Thank

James. Peters comes Your the of next Greg from Raymond line of question

different within commented around you combined could impact Good little you've suppose morning. versus I a I the ratio, this, cohorts. business loss changing the new new a business if the ratio between Because penalty. given an should but just past business softer, moving get parts maybe new if lift in is comments theoretically corresponding know is performance you or renewal, revisit the there in on your

think -- mean, get I question. I I see your Yeah. I

You anything. guys could on add

has agency grail business so lot new put a being it's when why it's and historically books about because and We we understand Your our had in talk start That's different better. customers business it's penalty the to our direct. holy renewal on important. a

of X-months the we're side, first On direct all in policy the direct our marketing costs loading on that side.

So at I think -- when look when -- we new at differently, renewal attest we that, I look PIPs look PIPs. versus

are renewal Our change. still could up. PIPs That

PLE. about I trailing for the We're on question asked still up X% PLE. across both think channels David

So or that paths, hope that different though depending down -- on how much commercial dependent affects need. rate slightly very with That down But some, we're tier maybe new more tiers as marking that on could much And is well. continues. again, XX%. that we we're we so on again, then fluctuate

of need So that into go -- different there's do renewal. that question both did the more answer new lot information? a your And you and factors or

question, always provide the -- information it. does always want while to but I'm And answer if more it welcome you I

The is one about that, talked the business that thing penalty. I new would add you to

mentioned, on huge there's direct as load a course, expense difference. business, Of Tricia

So hundred advertising as well. flows writing as that we're few through an spend customers

getting less spending in on terms in fewer customers So the and set, there's costs. certainly of direct new a benefit

on new the spectrum. on a the end the between of In ratio, loss we Sam the and of see spectrum of end terms Robinson bigger than differential renewal

bigger to side. relative So loss would benefit to the the coming on we would ratio extent are Robinson's, it door a the it have reducing through Sam's

the so our but can also of need flowing renewal going renewal rate customers. of sooner, book less through, far through the have that renewals It's new to the we aggregate, some flow there's it recognize to the and elasticity renewal to you customers, and heavily, heavily through have there's benefit some But is in book, So benefit. coming book. weighted in that the

see and rising on side. sooner the renewal premiums more average will likely you So

the side, On customers are others We'll are other of some new market. it's we'll highly comes need when slower, we probably it. because less a and simply shopping, we elastic move rate. a see marketplace. see there that of to And than a rate little it it or little see We'll options in taking when the faster

changes. So we may the will we think, and least, them competitors seeing we've trends are. the price at seen longer. that take They historically need same are same It

So turning in we while. more other business the competitors see confident and a a experiences, position by very imbalance very the front our the in same and growth But and thing, for bit they again, the growing we good on they catch a back levers advertising up, and do, might see new we're up time have.

I as the same that's Greg, last and we it like back And If thing. Yeah, information? around right more go to XXXX, the we time you would long this, as, you needed be great. rate want did think

We our pricing to usually the great quickly organization, get the have compensation. rates a street able before relatively they're on

turns market and believe hard, positioning the So when what now. we're ourselves that's we're for really more competitive right we

detail-oriented is more question that PIP. you've the about mentioned the -- appreciate second I talking I'm Florida because I guess, color.

us fixes take we of the minute heard a X before going your takes on it apple bites you just it's others. from it's what's you of it's charges that bite It my issue, could finally When couple a and Maybe at that provide perspective specific perspective see got that. that. never for with it we resolved. mentioned -- You've a us

that PIP And left resolves from wondering a to in fourth third more we're going so we're and have I'm issue specific or couple itself. it if adverse inning with before not Florida hits

on forward. just you history some going on So think and what's there about what going

of in such can plaintiffs’ is PIF with terms what Florida mean I there. happen an anomaly bar Yeah,

Different have does determine, we're doing really any getting good we the can then lost our happening. really majority in one affects time can the you fighting? right challenge something and it that's worth because to to exactly? you we of So like now. in go the we state. change about a part the you good, of for if anything, where and are future. feel mean what competitors. a and We appealed That your specifically, have seem if reopen? it through us make competitor What And it anything it's you and the reserving And long? can and of part -- can what a and then loss we lost usually one system, by and then Do it's How of of that challenged. by is the With thinking up a we're about this And one case in competitor then in plaintiff can going. work towards attorneys sure it have wrapped happens do currently, are or try where things always to when Florida, very PIF case lost any state,

tell PIP to of not. It many challenged I of talked what flows what trying to to with our way trying will up or perform can't are as Florida on with do some depending and that insurers more we've tell as it you possible. get that has bigger a maybe We firm we're global settlement wrapped its inexpensive these litigation up wrap quickly of that year. be happens these internally won't and next happens ebbs goes with because it PIP you something about law

this because done than we've you PIP do And like think. the which of a so, cat I almost we're More is this at like other those often with states. you so in And load more Florida differently tell come starting past. does more can we're looking to does is some that -- in

for Thanks answer. it. the Got

Thank you.

question next of comes Your Newsome the Paul of line from Piper Sandler.

product? for I but growth non-renewal you've Thanks impactful product. how questions the in think long X, couple particular. the morning. done non-renewals, time been it's of Good your help. a first home have actually since on new of is And I bundled home on the business a

is obviously, really that Is -- small? you piece pretty important should see the You've guys. it to or in is numbers auto we something

take we are something of on to that what down help sure they've frame customer that a to have look which we a actually to unaffiliated home, lot be roofs to could then updated because to can Florida to we if -- give the their with Well some take we have that we has there's changed We with a while to there continue that And going their number if notice. maybe of it partners if with to non-renewals. take have believe say, they a will wanted see of Department the books? need the we our each customers. customers make work And it's time

of really year. not it you're will of May non-renewals this see first we going significant be unprofitable. So happening because cohort customers really, those to are till next But really, think

so in our addition need non-volatile we And to more get states. there to towards footprint moving

number. our before we're know the think going with work have We a try start we number a to there's exact to to customers. done work lot of obviously with So we we be where then of and

be stay also with the will the customers We to to we'll a options which with there payment new share us. an opt into of is they the -- replacement the Progressive where -- roof schedule, cost give opportunity if some coverage

realize try And don't rate to ever get are usually, enough there. no and be the it, get often couldn't We customers forward, want very we to to you as our on -- start strategy need but ship unprofitable. very this as to rate to do we our an it's -- is we that. start portfolio at to going profitable, them going piece and we why to important and lot to It's never looked close these set we non-renewals whole that's do for something but as do, straight. have a So

for And customers renew, we we'll know us. to exactly don't -- said, Tricia now, as with with to, we're how work customers options and to while trying many we stay have

of was very it's not policies of this geographically. huge is think enforced shift, as but Tricia But should our a single-digit percentage saying, a You a countrywide. shift, low

in volatile volatile footprint want the space, our we to space. while in we So to grow want the reduce less

grow still our in to It's different to aggregate, areas. objective in grow. is So simply

those states. want Great. -- there broad into the on I you'd agent thought from you a the kept would've in a the agents non-coastal lot -- or up in the had that signed the the Outside -- would an national just to thought coastal that comment have signed because up areas Was have on all from of have of And want already Agency these with. perspective growing Distribution you something expanding today I in just years Carrier I of that actually that pretty that you begin earlier agents would've states, pretty earlier up? follow to much result process I you mainly move

It's our purchase. scarcity a original model. and final of was more ASI

agents auto that had we to and or so platinum And sell appointed home.

So we non-volatile of have lot opportunity more to agents states. appoint a platinum the in

what on now. we're right So that's working

Thank Great. Appreciate you. it.

Thanks.

Autonomous. Your next question Tunis comes from line Ryan the of of

clearly, growth been that. It's think, standpoint, -- the I Hey. Thanks. ASI. but value morning. I agents want about a seemingly deal to a from has successful been always proposition Good just

[Indiscernible] insurance Florida and You states Texas. write like guys would good in

to and about geographic reacting two agents our I'm is guess to move the to are book of Robinson's. the in how grow -- and continue going we of is But How and states. given growth think trying we've those Texas? Robinson's Florida in it good to what ASI I kind of most the seen there's

we our Well, on right now states it's have non-volatile XX%. about -- actually

in less states. density last have over have So expanding we been the years to those several

doing this out. with to of take we said think we the gets Insurance make I majority non-renewals There's can that than consumers. of like we can. And We purposely some care that are sure the

bad data. also get they because see the agents think I

can we make we to need we sure us have states, protect those much density that sure those to make only states. for So so in

to So, are the compared XX%. that for that majority states last still outperformed the make to of next Again, couple those but the get us, we to on and got through over to flows Florida that a We're look to And sure mix are our with XX% industry, we big based mix. part, of XX% Texas non-volatile state state years. to at -- couple change everything. that we the going when

sorry ahead. another I foll then, -- go And guess

to Yeah, I something. say going was

a referenced diversifying the have And That's of of reality. say majority been those two little heavier to going sets. was states I ARX/ASI, became the being the we book. owners book we than you in since

to have And Now, wondering a guys we because just sell volatile this states, quarter, that of so maybe little per to other a that selling is done it I'm into just with you a se, the thing guess unfortunately, have bit loss -- to other the Hail and job Even less hasn't -- of some loss recent think home always faster. been insurers. We've wondering book. a a this to one well's states, have the elevated that's was I'm business deal, more not significant done in part I most volatile we realization have not grown your we more great especially Alley, but the come you really diversify but that lot you roll purpose costs the was of to why big are if leader are still is the need I successful. just always guys to reinsurance. more diversify thought overreacting the a reinsurance. been costs Accounts home and

because kind have abandon So couple why from or you simply of that, of an costs move of why extra points away that

-- to going make on the money and was Our be claims service. Robinson, to make was specifically the purposes but on was to to agency loss never more have money to It great it auto channel, a leader. having bundle, a home the have in grow home,

hasn't changed. that So,

make overreacting big to great, X year or and of a doesn't is come it. but money ago, where we're see heavy is pretty part we did So, to might years ago this we're if say we it cause. a Reinsurance struggling continue cats quarter-over-quarter, a I without

we it. want capital sure right we way. our to this we the is way So And the use shareholders to do believe make best that

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that seen so that, haven't in we proactive we managing to it. down We the But want see don't road. be that

as on would investing time top, in our in states John, And that you the features growth mentioned, but I not of have and a volatile it, in period while one product volatile states. I it's segmentation, thing the where about that product book think customers. mentioned we're add risk with we It's less about Tricia and shrinking our accelerating share

think volatile volatile. it volatile don't acceleration business comfortable less growth a of we in until So any of balance or property shape, less as more way, between to a get It's and the temporary in abandoning form. states

Got increases us, that it. disclosed monthly And auto one. how much is from coming rating technical you one of then the quick Of just the rate give that factors?

small A that. of part

Thank you.

next of line the Barclays. Your from of question Tracy comes Benguigui

because practice, simple, to go Good a been morning. it seeing understand that me Could as new. iteration. through how it objections new you doesn't help request increase state seem rate in back-and-forth filing and at We've the works in be process filing you in

previous In discussions. you've to two meantime, been understanding that on just through our your So the settlement submitted hearing for business. looks set postponed walk filings has an to agent rate filing public it's the due your direct Texas, independent like example ongoing of maybe new it in and

be getting limbo long should past requested where the filing I'm a So at how in way dates? state guess effective of is I a

Great question.

a So file-and-use we as Texas state. use

out the put They need We So to them able on the we files were don't to approve street. the put there. filings.

disapproved objections information. disapprove. Objections more can mean means rejections they our want our they rather What don't They filed have of rates. that. not filings for that is However, and

making on all have to our we've the can level. rate supplement, we So support information sure been working with the TDI

have increases, that's one April, fact, couple a ago. X-rate weeks In we a done just since

So, that totaled fourth XX%. quarter, hitting the around into

don't our we So, rate hearing. have

In they we're had more July in on trying many fact, data the there we to a thing. if sending and asking want because back-and-forth and notice of open good right right the they believe you make Company at be TDI Texas. We Again, of and for sure thing. -- we're relationship are want a to the our we do with available information. the filings, long-term our we're to sure they're where the for competitive, and they the issued making do good people filing, competitors rational but with we And look they're for work

but that, the just of a a Objection you is it every Texas. of So gives that bit state of hopefully, is could to little have it, little data. nuance light back-and-forth

Is there of discussions? an back-and-forth expiration those

clock. a Typically, No. reset will it

data the do objection in provision be to filed, some if will certain jobs. provide deemed an transparent we a preserving So than there's where dimmer relationships have But a it states ongoing not with and there's after them date. to great will their be regulators, especially want open the our need they approved questions

Okay. And rider the uniform on largest not but increases, filing rate not is like only insurers and it's the efforts. also, making it looks are the those you're one, auto like lagging

the shopping progress of in can behavior? how increased how increased And uneven do think you impact that like So, about your rate discussions with regulators?

operate in business pretty Well has we some that different environment the competitive models.

structure different a a So there's whether two result, good different a different motivating objectives, profit or as as have stock mutual and targets. Company factors, you examples,

area to that on can. pretty specific can't And mean or Tricia the we growth as but and a as business deliver, operate comment is $X.XX, our our little while we fast grow So we our may profitability said, that consistent. action, is lumpier, generally as

Company. if I and while just different trying think shopping many to XXXX. pick And I up. catch mutual taking time push for Yeah. I tried the one mutuals the the look let's a market insurer. in seemed by last But guess, notice call may rate just It's for not now at asking on maybe questions, to general. increases, I'm that present to are like opportunities but Company

in So general? how about think that do you

go of rates we of larger create that will shopping as up the market. shoppers and share do believe we expect that a fully overall than We enjoy. We

how is a and for generally, So because when shop to buy that us try hardening we're want been for available when market insurance. shopping. good distributed broadly that's where, We and benefit and consumers to there create be

happens. side. bunch model make want on our going some model this for unprofitable side. we be and believe on might change mutual believe during grow we'll prior more make we're a we is the many money But at And going we going the and said going put investment the to really that advertising that that as where and exactly why know, because to we the why still not of business in of rate this we're We the data what positioning turns, back as I that's We're again, of to we're of we're get to years to, but Yeah, they our but many market we want for positions don't with when positioned the are our happens, the but happen we with a a profit question, knowingly book. competitors, that's to underwriting pulling fast as And based where lot on business. We're in see. well on the now on we the shopping a increases. like us can, not ourselves is

Thank you. Okay.

Thanks, Tracy.

Your America. next Bank line question of of Shanker the from of comes Josh

advertising, think the long-term the the Can come is to timing without you business. current likely, we transition your a entirely Even raising coming pin Yeah, is to of is of Progressive who price. that restrictions are business advertising, everything, on still the stickiness tighter question. come what what's -- We How some for and to margins taking do of in really next when to your a come going underpriced and that's that business in in hair because besides as you that have Clearly, and business of doors you because talk not people about would to come X going I business the maybe price? they they are transition? attract Customers of little we that's ive. to books. to underwriting that my the we are at X X to come at Thank the customers not business books think How do Yeah. months. have can competitors much a some have margin try so will the funnel. the get the on are the value about the on

I'll it of get and be in will Some underpriced, it renewal.

industry-leading some and our of will will from what we especially and if they have leave, data shop, that believe be if we okay, it, segmentation, is with they our it's And snapshot. overpriced especially

at business stay So our books the this like all environment doesn't clearly once so based on and many we'll some in come, hit the to an pricing it's to get hard variables on and because in But the want there's happening. brand, industry. people

Yeah. No, I think that's exactly it.

targets, lifetime price these a to our do the we Over hit lifetime expect of customers, do and to model. we

Additionally, a of not now. there's value a in if establishing completely selling other Even growth and to health products relationship them business. priced the with may to target, be these it's they customers thing the not and bad for long-term

acquisition are provider of adjusting I you fairly much, emphasizing find guys strong? you're you customer are prices. looking with Progressive guess, price while to up yet, are than It Sams the your price pick raised in share without it industry months be Can the like good too the capabilities smaller a who prices ahead X feels still Sams, And best a for are a raising their of about going even hasn't so going funnel your Sams or because regardless to the

price be I able out a Yeah, will find there. to think Sams

mostly they're inconsistently down in it really fact, a In shop down price. talked they're and insured one, because new business tests about I little being frequently because they is bit about and Sams

they'll find and about think the price. --the is I then Sams it very yeah, when much So

come back XX we'll to point, to rates, make as lifetime that a priced those be they'll competitively Sams. those us. on At their raise So companies

Ma'am, you much. very thank

Thanks.

question from next the Meyer comes of Your line KBW. Shields of

to can't hope Thanks. would I with the longer disagree than manifest regulators lot sometimes but a it of takes rational, viewpoint being that we your Tricia, as for itself.

we So would clarify and friction increases how of that X% difference to the hoping in indicated rate the from the Progressive of is that so frequency much regulatory severity How you trends that and you've that gotten the I slowing is could infer much retention? between far. was increases maintain

more like to increases we're retention. I than trying we're slow slow talked If California, seeing the increases, mechanism is claims. the in the in Yeah, for because, it's about backward-looking what we not

needed try raise to indications Texas prospectively. examples to get of to rates, gave as country. raise going and either or we or where individual the more California. we've think take think we try a we more. we a But we're bites going really of reduced last against And having timing data, amount at time bit apple. the there. them really will to we the is bit longer, that or But look an in I a priced our I conversation rate so like reduce seen regulator California and rates, little are the we So it's year, of growth won't we'll our small across couple little that

one thing I acceleration The is add there's just Yeah. takes. in our would rate

country, number the of So rates period. as the mentioned the half and in X% year-to-date in we Tricia X QX, about in increased that X% cut

the So year factored And there's were that saw before that's recovery frankly. X months lowering in we real still frequency we there. the of rates,

compared that's XXXX? And Okay. of pricing I to, year guess, end

Correct.

Okay.

about talk Second commercial in you for property? catastrophe exposure small what means question. Can loss homeowners the

our so -- at is small property book very this small The Yeah. juncture. very, commercial

program. are business to XX I now owner's grow in we're And policy we -- our While states trying think

XX now.

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this the we by cue, XX, we've it's meeting. XX the been [Indiscernible] at time have

Yeah.

share of Commercial point, At this need bigger proactively. have business. to that right, We property material. we very it's minimal. it be manage juncture, to at you're that not this far Lines at something will juncture, really exposure Our is And aspire

so Thanks perfect. Okay, much.

comes Fargo. of question from Elyse Wells Greenspan next line of the Your

going question just you severity Auto basis. pull to does the My than morning. these is rate Good third put Personal thanks. on probably earlier more I said the in all Tricia, combined for X to in system. think take that on it weight would for X you are through a call, said months frequency, quarter. you That points X back of Hi, rating still where discussion to the around below the talked

severity, or which bit So, elevated is will time over also assuming severity period get maybe and when that the you that thinking make trends or you point in excessive by a that issues impacted might both. you chain improve, and rates a trends some that supply comment, get approvals of you maybe are are at combination it's the

increase, Pat could again, say happening -- that's it's trend he why on I'll been back and based has. at volatile change so what what's they we for we're prospective would let rate look and following And the will I -- and forth. closely. And need there Well, add it so

we'll So continue, continue we'll point, into trends this get if need to in QX. quarter likely, more will And at the and we we'll that. see rate that probably even fourth

And and where trend far the based to cost. file effective continue trend our our the average as out take revision. on prices revision we setting to rate. continues take expect slow Yeah. price or of be. rate we'll to to date We of that our our trend additional date we we're If If can accelerate, increases. ameliorates, expected we'll not see, for as

group a that to talk Watch if our trends it's be about pricing might often do why that, able take more big it's issue we're we act we're really can a what to not, But rate to little do be do can you more couldn't able get because why that. and that. accordingly. I really bit That's we and so to or important And we going be quickly nimble that's if need and to you to And to decisively. have nimble. way

if them that's prompt as health right? opposed book. rate or doesn't months not it That at your they points XX something the or that's that XX which in waits. for creates months. And to And X renewal to consumers, at the higher, that book get frankly, the small for point overall increase just in they key wait shop somebody individual And a healthy, shopping of are

management, -- also, years. my do in second been we've think is growth back and by given at terms rate, be a shifted you or few how obviously, should about dividend taking. dividend of on a going this is And little in end you're you sorry, rate for seen And ago. then been most loss a the cats and for still profitability a auto This we playing guys year, prospect capital we And home table, have capital still special special the a in question, to year? quarterly trends impacted lighter dividend return years of then the the

Yes.

what to will they on suggest inputs in December we all makes decision So give we're we sense. and one changed the we're can would make We that's program and the dividend from of the at several the the perspective the Board years like share And ago. why reasons determine a variable meeting internally, from throughout aligned the be gain timing year. from ago you it it years what because with what the policy dividend intend ultimately to seeing look that with different we several

for variable will So on they we're working how ultimately, with board, it this be much the year. will in decision their up dividend and believe December the be

the Thanks Okay. for color.

Thanks, Elyse.

from line comes the UBS. Meredith of question of Brian next Your

the Thanks, auto. Trish. personal Back in

here. Just quickly

this elevated a for of kind persist your your you're about you here going So when kind is of kind Do thinking to while? what of severity filing these So levels? inflationary assuming expect rates, of claim expectations severity forward? here environment

play. closely much Well, because we're there's watching so in

October, was to was Manheim severity XX, on up over what of the it up September. weeks XX then at XX%. And as X% then -pandemic collision, October And mean, been you've look the Index. if it's over And the obviously you XX%. now, And watching first XX%. was if up Used example you at Car an it So even look to October pre happened. few up I has

up supply Some -- used on do the and see little supply with of open have We off salvage parts? seen, with a chips. what new so of demand never have to cars frequency the watch happens of that those we've we'll huge increases and returns. bit Does we're

we seen that area. especially What haven't think body relatively flat. labor increasing. right around parts I shops And watch yet They've closely. that you watch been mean, labor to have -- when up going We'll we're talent the in X%. about So in we that, rates seen prices are

is just of parts some of vehicles. expensive Some and expensive inflation, that's inherently that and more

time, things those if So or inflation transitory this sort system. the see is and our are we trend baked have into of the really closely all watching, to we're meetings

Okay. I It be determined guess. has to

Yes.

I look X that enough that call be Look And in time should the I back you'll this If for at different a to way. maybe to Is expect able bit. to get rate return months? to enough guess X just normalized you system generally levels. that we adequate that margins taken 'XX it's 'XX, my all get then happened about to next simplify historically, there around become question, months the it little to to, next anything X way, this it, happened rate to to rate more X

because we XX-month think 'XX I side a Yeah, the was needed rate those policies. different are of little commercial was and most the on bit

be of to, position timeframe, X-month that we've the talking what expect been the objections. we in It this might call was those dates we a provide sooner. lot with have as think in past, take just about that a But little as in I regulatory, hopefully some in longer we more data.

you. Thank Great.

you. Thank

of line Your from Benguigui the Tracy next Barclays. question comes of

another it, as maintaining that you. I'm and taking similar of you combined wondering, are is Thank just on be quarter? question. of apple to that you're where be multiple your future the the want ratio long-term in to you increases, you you're view, X% but loss that more margin? you context getting that for rate into third about thinking took target that Is improvement about Thank agile or more in take as helpful bites hear on your trend Very of thinking

the and look those we're question need those but think we the we now if and I at where with more we on of at improvement that have do It's data sense that prospectively we we believe margins as trends get watching makes the launch of we Brian those just asked some lot and a and inflationary we're more. will will need believe if closely of we'll

We I a We took one rate clarification we've little and heard in points year-to-date. third to And actually half more point continue X to to X of quarter. of we're took we the offer gets is in want -- going to which rates. the points take that One in twice X about Personal took you people X our -- Auto. say country, color. X

when taking you first pricing you you’re whenever see catching from both, or or rate, you're So what priced didn't up you are either for future. the

just previous That's perfect. So the your was in for a the and normally pricing you're pricing not world perfect case. always future,

either pricing. You're little higher low previous a a little or on your

will of XX So it some environment. what severity is and for that adjustment trends of life as that the frequency believe up, frankly. catching in is we forward this catching It's revision be also But rate to looking X, coming months. at up be

to on catching and a degree some into advertising street say a to adequate So the large turn I more is XXXX, other growth clarify have very what that year-to-date -- and going just on on we wanted up, but taken to confident we're ensuring we we've levers. rates to very so it degree,

Yeah, I do of with percentages chain. would would the happened things that I. add happen I gave -- supply obviously, what cars the that so and, used with

because parts will think thought used ever extent. go have that industry that up I to overall, would missed who the

Gary, that that up, XX So things in of was states? the some those are Yes. catching and just X% we're --

I Yes. states. Thank it. XX Appreciate you. Thank recognize you.

you. Thank

concludes will call the our for that We've to over scripts. Deshundra scheduled (ph), I you event. closing and hand back our time, exhausted so

event. of will the replay third-quarter the website be Information available Relations section the Corporation's Progressive Progressive's on next about a concludes Investor year. That of investor for event the

now disconnect. You may