The Progressive Corporation (PGR) 2 Nov 222022 Q3 Earnings call transcript

Good morning, and welcome to the Progressive Corporation's Third Quarter Investor Event. The company will not make detailed comments related to quarterly results in addition to those provided in its quarterly report on Form 10-Q and the letter to shareholders, which have been posted to the company's website. Acting as moderator for the event will be Progressive Director of Investor Relations, Doug Constantine.

At this time, I will turn the event over to Mr. Constantine.

good and Austin, you, morning. Thank

for Investor Although leadership dial-in at and presentation instead a instructions often introductory team. schedule a dial-in question-and-answer telephone session of can events a our use by specific our investors.progressive.com/events. CEO XX-minute will Questions quarterly by on we portion include business, only participants. found for asked members Relations The of our event be today's with maybe the comments our be

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

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

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

maybe during damage When their thank even a were for or and into stolen, Hurricane morning This often Good Doug. injured focus Thanks, interact accident joining our us in analyzed. such car property with so their they major Ian. you vehicle as fact worst just their sharper was today. on customers a doing they're us was comes catastrophe day, maybe

by all out those devastation, of footage the While watching the went heart to who affected storm. were my

to a I'm day. truly was Progressive the worst from calamitous such For recover part people millions And proud help of event. it their plays

day ready our people cannot while to was hours the to return start customers to people replace rebuild the more to their as normalcy. as over trust manageable. all possible And always our it are storm, worst Progressive customers in to make for Progressive easy to we lives. to customers help their after Thank what place us X,XXX Within our who had you make lost,

shared of our employees on from. that I'm customers are that letter, and many were Needless the so some Herculean where more very there my our of to many. came In I of behalf proud say, making efforts

single the While, not whole Hurricane the the Ian was was in quarter, largest story. third it event

goal margin Excluding of the work quarter catastrophe significant combat in company-wide X.X of ratio year-over-year to working we've third our combined inflation least improved effects points and X%, auto. at underwriting illustrates of done an achieving our specifically and losses, towards the personal

major with are we our continue to a after loss develops. auto As behind few be of adjust revisions quarter, markets, rates stated the us, so our personal experience exception and first as we the vigilant rate

third increased in total premium the In average plus states at per quarter, impact of XX rates personal about for X% X%. a countrywide auto we of state

to The third action rate countrywide year-to-date our quarter nearly increases brings XX%. rate

to closely to severity goal of continue growth. before true We profit ensure stated our trends we frequency to monitor and stay

We volume, agency rate. increased has and earlier industry, negatively than believe recently initially we which but in more take than So to both XX% impacted shopping direct quoting took opportunities we created have continued Consumer growth. has the channels. rate for more the and

in competitors incredible buying, is quarter's propel expense spend in acquisition for this August in led marketing the to increase spend. of have helped lower planning efficiency beneficiary, growth our and despite back both lower a us as our allowing continued our ratio September and XXXX, competitor on science This of media combination spend advancement and the July, growth. an best a media history we pulled of has prospect and quote volume. to had be compared to as This fact In in channels company's

growth the Auto several negative, still that but coupled new year-over-year channel signs XX% application history. only in we've continued and has September new of in auto quarter conversion, is in the growth by growth the months PIF competitors led rates, application bolstered including retention. to PIF as we've sequential our August by seen The personal quote company's the the Total new sequential of seen improving but growth growth growth to auto led of volume channel improvement growth application now been direct flattening highest in with and in the raised not channel. monthly highest combined agency

are In volatile profitable last state. Ian return we need property The and highlight our mix quarter's call, further incurred business efforts spent about our less losses the Hurricane to to talking growth. to time to taking shift considerable we from

expected, PIF in make this slowed quarter, progress goal. we in the as multiyear As properties in growth

continue of more reflective unabated market. actions, assets non-rate and a rate is Our the work we towards mix with as that

Given this the questions volatile capital. backdrop, industry it's natural facing would regarding only insurance be that

to useful our strong be would capital position. it thought summarize we quickly So

annual consisting view report, capital in of position our As multiple as we layers. discussed our

First, insurance we fast operating adequate below we at combined growing support can as to a as maintain in or our XX subsidiaries, surplus ratio.

additional in that ensures Our a extreme need we that of basis, regulatory XXX contingency will probability and on to model layer than XXX capital excess capital. includes a raise capital less

liquid that company non-insurance quarter is which contingency treasuries. of well access a $X.X at and and to level, short-term being have subsidiary that of billion We the holding end comprised securities due of highly layer mostly we in held is

and of losses or our the temporary rates, incurred significant the portfolio in in extremely investment prepare scenarios over and move to portfolio our interest reducing by the have conservative proactive due interest in of portfolio to is with half at taken we portfolio the X.X have fixed cash we treasuries Throughout While equity rate, portfolio a at end measures the credit year, the years. for various risk. duration quarter

was we as XX- rates. was raise attractive to to average uncertain at X, March it debt to XX-year capital Due took we measure felt an borrowing billion prudent $X.X proactive in highly extra interest very at we have Another of rate. X% viewed what the and outlook,

As combination along borrowing no have rates bond capital primary to we with this rate been -- month have total end at our XX% significant we XX.X%. ratio over to in near-term interest to interest the maturities in that address debt of have we environment, increase September the drivers in higher interest sit, moving the

expect back underwriting gains investment changes time. our We and approach in of XX% portfolio as the bonds us value in to maturity bring bond income below

to near-term capital. the are no or no below currently XX% have further taking and actions We bring for plan need raising additional ratio

now for and Again, thank we'll you take questions. joining us your

Fargo. from proceed. from please comes first Thank our the -- you. Elyse The [Operator question question line comes from Instructions] Wells Greenspan Elyse

states. And perspective you're underlying a first ask to It loss like to expenses. comments out seem in seems to a adjustment you your like in of from some loss and counter trying did of the know on auto auto is the ratio I guys need that of I'm just morning. and component it doesn't in LAE where Good is high does sense in some there had the trend called My question book look September I run not thanks. get them a book. like reference the right property losses. is September queue. rating comments reason at were the in higher a majority Hi, it you that does in little your reference to and

that hoping together? So you of kind can me help I'm tie just

absolutely. Yeah,

me start Elyse Let LAE. the with

include I about lines, LAE special when catastrophe incremental happens. vehicles, So not which when think and much you would auto a there's

built So we for up and are. years team and that we the size now CAT it's years a commensurate to

on incremental that the So LAE CAT cetera. et hotel costs, part happens, when really a travel costs, is

do other And then during to the things. able are year those people

So might as Ian go if catastrophes, work an other to now work that department right in as those they're related aren't events weather then slows in down, the they through salvage. files. in Florida example working But or that salvage there

not So it's incremental. hugely

more side, with We a out the to that that the on appraiser’s $XX it because property of of help use million bit property the $XXX do on claim. million And incremental that adjusters was called some independent because reinsurance. is we the little

a storm we and point wanted will So and that's a that certain And the the developed. will loss, point LAE out. for certain reason as why evolve. We to for it that evolve assess called

of in comfortable. which the is what to comments. said outline opening that's we wanted prefer level. are to going But of we here's have rate to feel the And terms I very perspective that I there think don't high In is rates. a about continue we and apple, this I at, would adequate we're letter do few my at And very where why the that from of do need. and we're markets most I bites to Like smaller where we're take a how in

of new et to have channel, you’d about think So cetera. versus in terms renewal, this

XX% up is X%, So our severity is frequency down aggregate. our in

think So loss ratio. a X% about net

Our is X%. up average premium written

X.X think you of to points earn about So in. to want maybe that

about when and we're don't to adequate. I growth But where we propel we'll in again. to and we the We're try most So confident do we help? venues grow that slow that that I'm think inflation at that are where feel have about believe we I watching rate very good need where feel, Does can closely. our we rates

to trended just not September. like trended was up it in up something underlying that August, last but because there loss follow-up from September a that it look as ratio from But did Yeah. only the

year? relative running So related to hot to was losses there something just September last in

wouldn't I that. into the and this month look into particular much and releasing earnings. one monthly curse in Nothing put is of

severity well, of Okay. see your of guys last prices those and you you Q that, car Thanks. loss the benefit of just this that you as us think are and through we then broken And as to ever values to costs about component come what hear in that I I driven the prices, down could you car guys help out getting know down? elevated my the end the lead guys off mentioned as year question to was about started Have and think can what know your used coming or used second year. we

would But Well, we prices say the trending I although wholesale down, all-time components. are is, they're high. at the at look what still

And continue that we the to demand. especially, think based that losses even of fact I could So have we that in total increase are with Ian, will it there will on Hurricane lot watch so Florida watch a happened that.

try as as So, we can. we break out to much

size rental more of When parts labor we in of vehicles, et rates, terms cost prices, overall we price, cetera. severity, look look at loss at

So, components our we're to and Index and and in if and into trends. there's severity and going to go happens Ian after lot what continue Manheim the watch we'll that that. But, -- see that wait of see watch a we

Thank you Okay. the for color.

Thanks, Elyse.

question is from Michael, Our with Stanley. is Morgan Michael your open. line Phillips next

guess, you're Tricia, seeing can favorable, even Thanks. on the looks wonder that in layers morning. Thanks. work-from-home the of more talk in still you're your some peel how I against for what you if your baking prior current price continue frequency And so than back fact levels? I Good you much about quarters. could book current pricing of and of trends that? sustainability into maybe kind on what for baking you're to in

Michael. Sure

quarter data, it traveled So, miles. the we seeing during quarter, miles about XX%. with we in snapshot flat. What commute stayed about down traveled down XX%. is And that saw we're three miles vehicle Previously, our have was saw

think So queuing queuing your your defined miles from from those of home. home, as XXX

in because that So whatever, before been based their visiting less gas last-minute Day or Labor and were some cars in travel during we those usually think losses. lower doing prices involves of might have that prices, on grandma some people --

losses. congestion, more it's more So, you're going to have come

we So about it that think way.

frequency I returning I Labor of long-term, know trend Day. or think a a where said, because of work companies quarter two, know lot were probably to until after they don't we'll sort

you're September. thinking in So

least to and couple So what like is, see wait that bottomed of out XXXX. if quarters to at that at we'd pre-pandemic a of sort to do look

companies we'll et and And lot think back because flu, think I on their employees often on a forth cetera. and it will bit of a have lot need to how work. more little then of a I confident, too I COVID know And gone feel depend

a quarters, few that's seeing what right data. we're to our So on we're wait now UBI but going

that. Okay and one to clarification

that miles vehicle pre-pandemic or was down frequency traveled mentioned period. was Tricia So referencing XX% the

traveled about back. continue due we to miles we continued it miles travel, time not a interestingly, degree So to is mile that's that mix yet pre-COVID to of to comments some bit believe and Tricia's down vehicle measure has think vehicle come some quite that, relative more and frequency traveled. And the for we is when to than

Yes. Perfect.

about last strategy if talk impact that when a you prices you year of I and don't reverse can guess, our I impacts, know how prices that. for cars Thanks guess car so that that talked Okay. that coming were salvaging about and how either high. of used the of mix there -- was just when of fixing I the of -- kind versus cars down your

So impact change of loss ratio go prices the any and impact of the forward as the changing here? might on strategy because that of last of from -- what's that how high year were we how

Well, cars were It total we strategy. changed them. happened to more more more it were took part expensive, we be expenses. just components -- so did I the that don't know that then to And total them

So we'll cetera. at value of cost then could always account into rental, cash look actual repair, and the the which et vehicle the take

that's And actual assessments. used you cost cars then So when always the you how of make whether those it. new overlay we at look the or

coverages, physical increase the cetera a you around Just similar we clarification Lisa car used a think property a sense question. as Tricia damage since increase collision, et that damage little for in about more. When more is numbers on but both values. increase worth when about walking from had the the fewer total severity cars, so half in was mentioning car of we is car is because That that total

So car go as as of to to up result going prices used you're -- well. repairs are estimates on going your a

little half in coverages seen a are of tease we've to damage to increase sort values. but the increases the walking probably is severity tough out it's So due around physical of

point. Great

right. you. All Thank

Thanks, Michael.

is line Zaremski is BMO. Our with question next Mike, Mike open. your from

any Good kind reside whether equation, you thank color car ex to auto just far. great. the there's offer you're more severity curious Hey, the and maybe so of severity on and used side any if good or Sticking bodily color, of could seeing trends Maybe lots you the prices morning. of broadly?

So Mike? on side, the bodily injury

Correct.

injury the bodily But overall of attorney X% was been in seeing in attorney that the more seen of representation that went pandemic litigation after level tissue and to up necessarily it X% soft range. social to the has kind stable on inflation. actually representation, just We've course out fairly based Yes. X% not more the And range. X% then the we're

considered that around of moving trend be of there of about normal And kind levels, you or more about kind no we think kind materially? pre-pandemic that's should secular a range thinking versus there's when something

during Yes. I and was went mean, there it's pandemic, because hard to none little it up say I then the think or significantly. pretty

of be accurate think say to that pre-pandemic. I yes, would in range So that

to I'm data frequency guys about some advantage frequency feel do non-commuter miles figure when guess, you're it us has vehicle more the guys this? thinking you Okay. take XXXX, kind It's and to great nothing tough versus too back more to of setting stats frequency to again when XXXX maybe just kind definitely very -- can you and today have you allow or -- cycle curious you going changed I maybe just back to out what is do think be rates traveled any does Progressive or on just that you things seeing spike much? are able or versus today does opportunistic, be the you still of agile, now much it you give to commuter trips? And curious

we're I you're well, -- part No, there's the that is so affects about all think many frequency. thinking macroeconomic The time. thinking trends -- it hard

You saw that prices. gas with

of models. And so, a look at lot things I there's our constantly that in think we

encourage approach want to money, think snapshot. they I is for them we are a driving. customers, to our not to if of think, be for best especially the when And pricing thing, that's able us big who use to save people,

than consumers they're driving they sitting long new as our garages, the an take So, we've cars of UBI. a think get in and we they're because, business, their not, business that are that's discount more should in as in if driving uptick And when seen often mix safely. great rate

And follow-up, are time customers? more those Snapshot over slightly non-Snapshot final customers, the profitable just as Thanks. my than

No, Yes. necessarily. not

price we We accurately with data to the can continue we as as have.

states have monitoring to continuous to work an our a set have continuing as an because model, So, I data now continuous to monitoring. across set and we work continues And we ongoing in with with, think, to Snapshot, that we country. will. move to you with roll are and grow snapshot really Early growing. more on the eight Tricia to pricing database and increasing data segmentation weren't noted, get. be completely as curve, consumer accurate we can to We've the good and full more the adoption, the pricing and with we as has gotten if And been comfortable curve, is which to best

Thank you.

Sachs. with line from question Scott is open. Alex, Alex Goldman your is next Our

all and car off accelerator you foot may there's I some bit, different wage increases able Question and drive was that maybe adequacy. the sort at of about decided frequency of price prices a here. pivot take and of to inflation being mean, think non-used better gas time, stick the away. there you Hi. costs little And the When the that, pieces things, looked growth severity sort I of is is Since I risk had growth I those medical that think go the of risk to there's when could that and been it try of impacting sort feeling on a just how and to getting strategy? strategy I change that course? and road into from timing down also, your on benefit a you on mean, that I about been things worse, force think started since pricing. to sort little about items to you that severity of and of the should

Yes.

since we can as ratio. below worked strategy we a at talking combined went years us long-term XXXX, something least that's public a XX. to in had have about first XX That's continue. the We for will started fast as That at/or grow or we XX

actions rate when quickly to smaller to each We we we normally change in we things will as very, talk to in and take So, very believe do take. that diligently this need bites we about We to. last we -- had rate take that. when increases Like, of trends huge decisively year, have. don't we've do we're like to Unfortunately, and take unlike apple, increases watch now in which venue. position a take we the

going have this fast and to hasn't can. XX, to grow maintaining leverage with try as go continue growth unique to combined still we hurricane over get opportunity to to we're strategy so months while we our XX going the as our ratio. changed. So, a we're really few We're Obviously, try to to

in had per lowest we September, XXXX. fact, cost In since our sale

So, we're seeing our because competitors much taking advantage -- the and are really we're seeing advertising really the of aren't great ambient rate, as some growth.

to we going we're to all try about believe that to that do we we grow to pull the have growth. as but talk always as XX fast profit over can the levers we do So,

Got hard help could costs And it. higher helpful. impacts as I us in frame a That's you more on market reinsurance? think we impact potential you reinsurance through property the guess probably And the from side.

you looking some like the commentary reinsurance to through And going cost What do. all of sort wanted and we do how that's sounds some of on non-renew to that when some does of can It that you reasons. quickly through think pivoting for mean slow down of potentially up? just the regulatory your had

the on one that market about so reinsurance to pass I'll I But de-risking I'll is have hit of talk will benefit. say that that sort is are reinsurance hardening. book. able Dave clearly we costs but the on

XX,XXX portfolio a the So, of Florida policies mitigate out -- Florida while. risk. of that out about of moving of goal takes specifically homes our It we talked sort de-risking

XX-day notification We about last talked a period had we So customers. year. our to that

those with left risk how we as a they the May rate policy least a life earnest was long inspection to homeowners at when five that there and had that at know years could allows okay XX,XXX through session allowed the roof, their as we non-renewing old XXXX. on -- is to least we was their in which of know special started us Senate because prove legislative they renew Bill in and then useful of So, there that's roof is. great And us

after a would course, Hurricane of non-renews won't little enter been there bit so and that longer. to than less then, those XXth, cancellations a November it not there's knew be XXth executive XX,XXX September is orders And policies any. be renew we would on able from that are and we Until lifted to Ian So, moratorium lifted. take and

longer we'll say we de-risk bit and that going everyone continue and to that it it's little take get suffice a to us happens. So, to as to that update

builders for I the DPI until will executive home, only and home. of new so say have fire, we new is a order that AX with condo with working them, open we or not lifted. AXX, caveat that insurance homes can open we we have on will for is in new The close brand-new group dwelling some will be so homes be business their select they and not are business and

remain achieving think on I goal our based on country portfolio So, a environment focused the volatile it's of is and we not all punchline the the but areas. across homes risky having our and

reinsurance Dave anything on the to do add So, want you

Thank I be Tricia. trading with them continuous Good we business long with of our try And that relationships Sure have lots note results, plans. big would morning we about and to providers. reinsurance you. just transparent our very stable everyone. a

reinsurance in we likely on up, believe that make that rate we It you. prices. that filings we'll reflected continue get we to and And have that costs next will they're we does so access our confident, Thank to we seem will those as need. our transparency. in the pricing sure as can, through accurately feel quickly based And go that pass favorable to year we

I'd you agreements. also if some add, multiyear that have

us allows bonds. for securities, also will We program if prices. increases us better entire not some of primary in increases into renewal year, up So which our the do also is normally any those given put use to mitigate cap impact you helps and our insurance-linked

that time as reinsurance we're and trying to ensure both coverage and use program our are to for we diversify, for the possible. catastrophe we So stable instruments

Got it. you. Thank

Alex. Thanks,

your line is James. Greg from is question next open. from Greg, Peters Raymond Our

net first the letter, would as Lines as pivot been the to Commercial like can, ratio fast your results. quarter you your is then up have seem know all Good you said, on noise. And in morning. unusual that TNC certainly be the combined the X%, the items to considering results. around that XX. affected I I'd growing And you out And policies, excluding the doesn't for with below guess, question the called third I

So [indiscernible] you it in the the bot up. out, it's some other letter policies of going mentioned, growth in like other the of Can you how is speeding think to emerge the initiatives. you sort -- map not Because down seems that slowing business?

and can I out the Yes, happened we're sort map for what's future. of how positioned

we So, when in pandemic opportunity the had four happened. such an our markets business trucking higher here,

having So sure you're many lots good did as people, ships. of I'm you

obviously, had trucking ways. and in the grew you grew, industry it So different

are spot up. -- had we So, rates

their a lot rate, we own. the there So go from there right a for at to of were carrier it would We able of own to them. and make owner-operators on customer. We had a history leave be and on their this were

beautiful really growth. So, a it's

you that the successful in X%, So lines. look the couple years denominator last unbelievably look been at have even you've commercial of when at because got to

from and of now down couple bit owner pits, -- softened, they're part with GL liability doing non-trucker that some they're when are carriers, carrier where are a we So those those rates of. that we can the have gone keep do those business spot going going little a away coverages, back to carriers and operators they're -- of when not have some

grow. think So to continue we'll we

piece. retention of a that's So more

we're say What the opportunity we is is, commercial. I diversified in that so because have would

or a of units. think years fewer few ago, So we only power wrote -- XX

purchased medium Now to be could fleets. to us we give and opportunity some to went which of large ensure those XX an of able we Protective, then to course,

good really and nearly feel grow. there. we about we that will think to position our in have course, Smart continue of states, So I And XX XX,

is invested Those to ago, trends. the and lines -- we cyclical in linked very we three-plus are know very macroeconomic that this years because commercial things

lines. although, growth commercial grown a So percentage basis, tremendously on in smaller the we've is

to XX-year that out Karen laid to grow to happens. have out plan, We economic team shift tremendous we're a to your a different when there Herd sure able and diversify continue laid plan be a continue have to make

to this the my I'm Okay. I media I guess appreciate detail pivot focused on for plans, is and personal expense ratio question. bill going underwriting talked restriction evaluating In lines the going your letter business. the and there. to about be spend you second

looking You that pre-pandemic. of frequency trends at those type said in you're and your comments

the on the et ratio at and look start ratio your compared I to? lower. look where like you I time as back you auto, it is pre-pandemic up the growth in expense is a it it's in guess ratio, ramping if So your as XXXX-point to plans Today lot might the today. will base should sort up conceivable that here And trending more XXXX expense advertising of the spend where cetera? go we at expense for consider

it's conceivable. very Yes,

the non-acquisition expense and with ratios. ratio expense regular at look we expenses So

the will as can takeaway as we for a spend as to given we believe as it's much long We spend moment, we – XX will efficient.

our we for expense quarter while bullish rates. like competitors' on spending being competitors' ambient and on lower shopping is what because just environment ratio So I now, our this really said, growth and our based we're the in the of

go we So in spend see you if advertising. it yes, up could to continue

spend loss that sure say to constantly acquisition will continue make we're and on to looking our at I more can want do because expense ratio plan the be efficient we both in LAE we or ratio to funnel.

so is have up we could little governor little into spend the is. you a And bit right a of see right XX now. what go that yes, as bit going play the it course, determine we So

the Got for it. Thanks color.

Greg. Thanks,

Our next question is with David Motemaden from Evercore ISI. is open. David, your line

have end that And states of states. I as that said last on local quarter the Tricia was spend think XX media April. you morning. I good to Thanks, don't ad in XX you compared around in How represent? could point not in have color some you stands states And media where at how states share much if do those that local this time? wondering many on premium today? maybe of

our I'll at we less Pat based than exactly. exact let ability I'm to ability XX I of take that. on not get not but believe and the to sure that rate. right look sure though, Again, the our grow number. I'm it's just

the rate, to So where we can we that continue states to can't make not we'll we get everything grow. obviously sure in do

we'll Some rates to the media do we're add earn up spend. local anything? just for to loosen start Pat and want underwriting to guidelines you in waiting and those the

sharing question states most of of about of piece. because the without of premium kind Yes, relevant number your is kind percent

we in of lots is social, The media, digital on mail of local other things that piece that's whether complex it's different seven local space. going paid but there's elements media, say direct

the spend Tricia's afford I think what's is to to calendar the based back targets, to And we will and spend. local on about spend channel relative growth. decide we media spend ultimately when we important and to the get performance the drive to lifetime comment not when spend we the is at on efficient to it's level when versus within spend pretty year where frankly media, to need can dynamic where split that's

efficiency need So loss street couple coast obviously we the high expenses have don't can't some ones ratios optimizing right rates there where given the of a on adequate the now big get under are of our the states, we expected we yet rate losses. that we're our have on and the we because

to states. just rate increasingly, adjustments adequate previously. say is, make had we all And would rates And open expected some for are we additional So what time. than and soon adequate it's longer It's in taking getting get as as I we the we are business. dynamic we

Got in great us debt I'm That's opportunity And it color variable you think you on helpful. the the of, wondering to front sort was we you're, And think that? about that's of year? the capital. and guess, as about how growth about how the position just dividend capital the could I thinking help it. should if you this of, sort Thanks. think about just, guys get to Tricia, also level

absolutely. Yes,

primary to use of the And like especially, should environment. our we're firm. So -- in the best the this is we said what that's to try unique grow do, I to capital say going

stock juncture, or it will don't decision. with Board, either we in leverage we you this in have opportunity them or we at we the whether will conversation this we firm. Board's and ultimately I course, be this a we'll So we'll of say meet dividend take can't buybacks -- we grow every And to again have I that, variable that December. want with if give to time the tell believe can I dividends back advantage not grow, the be

Great. you. Thank

Thanks, David.

next is open. Ransom Gary question your with Gary, Dowling Partners. from Our line is

wanted Good morning. I to revisit the question. go frequency

ago, year a would down it at months. at Q pre-pandemic. about Just have closed bit to we environment in I think about broader frequency because the the probably frequency little me I when year-over-year it a counterintuitive expect increasing. through be and the disclosures six look increasing is being industry in the broadly where I And And to that's looking fact still X%. least at That's not when I'm data available economy thinking actually down actual

seem add so a And possible I different you in or that for can you color might And be to expected. moving if direction might happening? some I be have than wondered why reasons

if XX frequency X% in down versus We're trailing quarter. the for more the XX was nine down the much trailing in at XX you the more range. look the like to And Yes.

how look lower frame frequency, Do want down to comment are John? at we at I time anything other So people but the I have you if you outlined. just can't on look

Yes. Sure.

a to in done door. ensure profitable to have We have business lot coming the we move

to highest producing that to loss when against that frequency So apply first efforts is likely business you the the do seek you're ratios. highest going underwriting

very As frequency challenges some high Pat large we've states. in Callahan also have mentioned, getting fairly that markets had price some as

same perspective, get to our of that is segment drive going or been noted your and well. level on we've the business, there's recognize and where going as I we've growing a to the lot but number that aggregate, mix the shrinking geographically both due in So at with that

positive wondered, have I the about the of something in Snapshot of rate And was All were in too. helpful. the some I to doing. able doing. part that's advertising? an like versus statement there what you a had right. fairly noticed Direct. maybe in But on Actually, And comments market? question is the anyway, whether That's that on I what you've you the general just been It Is uptick the rest another industry the attach of in Q. that for was looked acceptance there product Snapshot do particularly

comments and Pat, then some add anything. add I'll Yeah. if you want general to

business the of our about we And in Snapshot. Snapshot range. in The uptick tickets XX% John We about for have. model, new of of direct seen in continuous talked have new now we an have biggest is low business our XX% using course which

think premium. earned said, hey, about you I I'm not if XX% sure, which is

So to to data. we're excited gather continue that, about

steeper deeper have – either from have participation discount continuous maximum and factors then and we a discount We flat a in surcharge. for the model,

big anything? part can we don't people a do add this believe as they something but see control to about insurance excited cost it. we're where I if you know, their factor, pretty of So that's and Pat, want do

around is then that continuous direct board agents it for Yeah. the distribution their that and because understand echo Snapshot the their both the is in of consumers find and in thing for make would enroll evolution to build agents, clients channel through I obviously experience important. program the getting on easier good a two-stage the we to savings, just in this

of part think is We it process.

products carrier, Snapshot save with greater time. money, And So on resonating, way their continuing on, but agents who But been think, been only sell over some money, behavior. squeezed, and safe when have are and get macroeconomic things experience think they that's invest the from consumers a we believe offer driving wins want and get rate some and to not increase to environment, present our the a to for there's helping. the personalized of we in current seen rewarded shopping, recent we've we an improve consumers, to going also we there that's there's right? number and a save side, the When inflationary is they how direct

similar attach point? – you direct? is at a Is willing on there the Are number this or the XX% the for said rate that to give you're agent

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Thank much. right. you All very

Thanks, Gary.

Josh, next Shanker of question Josh from with Our your is Bank open. is line America.

you. Thank Yeah.

injury XXXX, any health rates And it of insurance that earlier about I'm set liabilities see seems me into while impact could in increase inflationary how this? health we there's on next of Medicare insurance I'm a bodily it which portfolio, built One year's given your duration year. if in lot are the the expert, mean no in And be I and thinking now, the head not right have in may what their might we insurers two, costs, some but could know side year. the the costs in As to they health truth that results? want to next severity is on the

from obviously, we we reserving. the built we bodily our for that What but have watch say I into our injury, that incur would perspective, inflation cost also

data we So that healthcare. build based lot in a including the on what's of happening in and

those So it healthcare industry. in percentages on going what's build based inflationary are overall on the

up, as as in will certainly Yeah factors It's well. picking a be are our dialing we reflecting concern. extent will we those prices to valid managers be soon that into are the in And at it's as something set prices those we pricing reserves, see can. level watching. medical to their inflation rate think product that the our And we I who state the inflation

terms driving people see do the from the their changes saw the pandemic, which is emerging are with driving, over where And where months? last knowledge that in phones your we've are of from XX braking, when been they're we in at distracted got at we or experience we looking the XX trends or hard extent

specifically speak can't I distracted to driving.

had higher. There less those ties off. people. leveled were I levels have think an Speeds were I driving think increase right reached we've They of win. was higher, fatalities

That there's back to more couldn't starting that. are on give congestion there because people be I more the off. to fact number you specific might going but level I think that's work that adequately

Okay. you. I Thank appreciate the answers.

Thanks Josh.

from Credit line Andrew, question Suisse. is your next is Our open. Andrew Kligerman from

Hey in-force good growth. morning. Question policy around

you was fourth color some count said growth and give on that in the think was it the and August Could behind X.X%. September that up in record I in-force that you potential about quarter? have you put numbers levels? Could at policy the quarter, for little a

growth how much numbers renewal I and goes into put don't new can into it. know both business mean, I obviously, I business. PIF

do even renewal So get has of has we of time bit our the leaving is And likelihood a is lot growth of our positive and the insurers shopping think of what I little positive. in. a It to with accruals, period which if takes increase our obviously looks if lower. lot think say it -- we a very an with that is to do they're will

increase business So renewal as that we're seeing well.

should So that and we improve. to the we've bottom reached like growth continue feel perspective start retention PIF from to our

growth? maybe mid-single-digit So least at PIF

I never like to guess.

then two from days you results So have what, today know after November October that weeks and you'll our results. XX

down if my one All is question. right. nearly I went pre-pandemic frequency down right, as against the today's nearly won't at me then it's push apologies anymore. look XX%. another its And I But XX-Qs at if frequency for up, Is and math tell good question, math? I look that

get quickly? very and up a lot. spike before that a business great is and has there question -- changed a But sharply I very to And answer is so, the reason it was to frequency believe the there could maybe reason if mix a

were you the two Tricia over you're look to at know going I it saying quarters. that, next

concerned reason is one be So near-term? And in could math to just my jump two, up it right? point any sharply some is there at the

prices with so and accurate. happens the what say, with bit quarters, but It's to around last is in do really I back dramatically. the has like can more change math stable thing it of can you see Your hard become with so a many fuel change feel globe couple variables. it's been happens because little

literally If once season those. we or work predict basis. those can't We happens, hearing to really where them. can then, next happen. watch can about on COVID we're We have daily from things happens, a those the something those home react And flu do of if variance we

see, several we bit of do I'd like quarters we more to see stability, a believe little but few. more that So at least a

very much. Thanks

Thank you, Andrew.

is next from Kinar question open. Jefferies. your Yaron from Our is Yaron, line

at seen and a on same me. going bit good already morning. car time shop Thank first is prices used and question down up. labor the body you. coming Hi My Excuse we've

of So vehicles question are you percentage total here. seeing maybe it's a two-part One, the drop?

elements be about you used two, handle severity claim body body that shop we of LAE of total labor. shop severity when would thinking a should there honest any the repair claim? and math be Are with of a different versus And be other cars like

is loss on each dependent Well, of the the in what's happening car. severity

of mix a So, some easier losses of dynamic so are hit. there, to kind handle harder going employees that as total again they're and

the in So of washes out sort denominator. that

is, index. say there's it still We're mailing watch some would we I And have takes What prices go time car because supply-demand issue. a continue again, the going to to seen that. used down

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if quantification you it Okay. is incremental Thanks. additional give related and to on the I that beyond I understand And then, incremental. follow-up maybe any don't one so know LAE, can

LAE to try maybe kind expect an got will, But emerge already you did in Ian, LAE still capture this the September, you potentially you for that that September? you or if is would just for another of that part month have additional the IBNR in and be of in of

wanted we part the million indemnity Well, part to retention it the the because September, was for and of for for month the assess LAE. take $XXX

first is number sort will over evolve time. of assessment likely and XX% that So our

the not for auto I piece. meant Sorry, piece, the property

property in piece, the LAE. For terms of

LAE. auto For Yes. piece, the the

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Okay. Thank you.

Thanks.

is Barclays. is Tracy open. Benguigui next line Tracy, from from question The your

you. Thank

seeing the you if new new up you more mostly submission. side. the quote quality your of touch were to on you’re Can auto XX%, business as the wondering, ratio is Your application direct bind I'm growth on changed, seeing?

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in And we books, restrictions fit wouldn't have underwriting I want where -- that’s so and the to other things.

that is So is you good evolves And your we'll tell believe, in that course, of we able underlying second question. of business. that, part a hear the and didn't next to be months. how the coming I

ratio. About quote bind to

Yes. I -- referring was Okay. just

to going comment the was on quickly I -- just

ahead. Go

Tracey. Go bind, got quote to question I've on your ahead.

comment quality build the just comments. Tricia's me just Let on to on

business seen spike So, have in business right? from the significant coming quality and we competitors, which obviously, a incoming is great, regularly we monitor

a rates power profitability. If are our the us base for the rates, the competitors at pushing lifetime segmentation of we risks customers rate shop, select and raising to right right believe helps

place we right writing. at like with want grow we're Tricia quality paranoid business to now. we're the in we're We're is that business always have what of So closely we the look very that And but as we feel right very shedding, getting else comfortable we that business. someone with since and mentioned,

have a on quote-to-bind because different massive of you and moving As there's your obviously, far question, in have customers conversion levels is, ratio increases of dependent shopping, parts rate lot as business competitive tomorrow. our always is motivation what when there, in the mix relative what that's for pricing from, insurance shopping, to comparing today they're pay how they of customer a paying because they're they're prior could shopping versus where you

right to raters accuracy segmentation And a that's us the avoiding comparative rates across create the places, of carriers segmentation, grow where adverse that our competitors. pricing goes and particularly to power we transparency effectively potentially of selection different and enables while agency channel, in the think in where

Okay. But directionally has it changed for you?

prospect dynamic I conversion motivated slide slightly less record Directionally, see we some is more as which prospect does aggregate little. normal conversion are a more recently shoppers is down growth -- a see

cohort take And that terms how do basis, combined think for you Okay. a it'll many on target? policy to then ratio business meet your new

obviously where the will we we'll what decades in think business depends it and the think on we new lifetime Tricia acquiring cohort look basis can for, as at that about ratio how produce quickly gotten efficient And all profit acquire a and we on I question a We've how growth So believe them targets. we new right? lifetime basis combined tax we is spend customers our renewal. grow think at be a and I versus we mentioned about

our that calendar we grow in deliver to ratio we manage it, with your year if as about be So combined and on will there order our we think potentially expenses construct we pressure ensure on expectations. that quickly

you new Okay. And for did can take to you please? comment policy bit how terms that be many of tax not

out. Maybe I can help

policy expectancy have of different segment We different life business. by

a So, stick insured long. call around we what not going and inconsistently they're to SAM customers

Robinsons our going to we of need So, a stick short in lot longer. time. make period XX a very

make we combined a time Robinson. on more So, the XXX ratio up business perhaps lot new for over a to have

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hopefully think dynamic to that's you your if that question. helpful So about

It is. Thank you.

is line be your from question open. Meyer, shall KBW. next from Shields Our Meyer

planned maybe you. I And about think what correctly? profits you to saw what slightly and compared heading that COVID. to into that mostly Thank that to growth see we Great. mentioned price Good curve. John means maybe excess Snapshot directionally faster morning, And the

I say no. would

end the we not when specifically the say So will. that balance if to you the curve would curve, on we of

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understand ends that to it, we accepting are of spectrum. Now price consumers those can it, of both

change So our segments XX target aggregate the doesn't business all at inclusive we this of all of have for Snapshot.

increases. that in to pricing? for embed reverse the the components sensitive base sort exposure significant opportunity to inflationary not taking call, into Okay. you have that Great. second to of the the rate Can you else first talk guess don't I And problem time clarification. Thanks you the the something generally the issue, resis mentioned if same early

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side. rating monthly as are I the increases then John think we with the the talked and dwelling increases incremental that as factors property well on about the

we're on continuous monitoring. piece auto frequency side more ensure, the to going we're responsive is the that Yeah,

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provides in responsive that we today's So than model. a little have more

you Thank Perfect. much. Okay. so

Thank you.

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