The Progressive Corporation (PGR) 27 Feb 242023 Q4 Earnings call transcript

Good morning, and thank you for joining us today for Progressive's Fourth Quarter Investor Event. I am Doug Constantine, Director of Investor Relations, and I will be moderator for today's event. The company will not make detailed statements related to its results in addition to those provided in its annual report on Form 10-K and the letter to shareholders, which have been posted to the company's website.

This quarter includes a presentation on a specific portion of our business, followed by a question-and-answer session with members of our leadership team. The introductory comments and the presentation were previously recorded. leaders previously minutes we for other scheduled and with the of the live members of recorded answers XX our team. the for the of completion our recorded well used remarks, balance questions remarks management Upon as in as featured this event

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

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today. Good you thank for joining morning, us and

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Thank you, Kathy.

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Lori Sean and question the management presenters, Instructions]. please X today's event. order Kathy to answer [Operator concludes questions, This have as and recorded members answer to to follow-up. live yourself now team previously questions only, available The presentation. In Niederst, of as who possible, will audio Q&A Freeman, many portion session our get of limit including We can be the X questions to Lemieux about

our take first will now question. We

line of comes Our first BMO. question from Michael Zaremski with the

of of your of given on profits are going chunk territories. a first healed offensive growth kind regarding some regarding our question good back The the that commentary of the in

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guess I helpful? channel versus think about context be around still any that state thinking is by would direct Or either things? way how you're agency right about So, the or growth, to

Yes. Thanks, Mike.

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heading report are about whole really my excited Obviously, uncertainty. into XXXX. annual theme the for was So we

going to year, So, is Mike, first versus odd the the or comparisons we we're new say, the unfolds, as to we're one will look pretty and say, would year, of see letter you're certain first confident I more should feel much data is some at much and caveat really We growth. uncertainty. I on last when excited. And more starting of app watch quarter quarter this

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XX%. like XX%. fact, up, Direct in new our or the think, XX% Overall, apps In I on up Auto were Side,

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Progressive continuous is letter. sauce My the model I different special and want especially severities tends term frequency say. in time. about It be helpful. is That's to look industry. we the there's it's you to I'm limited be if of follow-up and last regarding than you And your be, definitions. you But some commentary can much Okay. but and the is frequency segmentation use at might I probably, delivery how also product appreciate curious, you know your over better to that this

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are that When you the generally similar we frequency Tricia favorable right. our key I to have some you're customers being are can continuing believe to shift the mix frequency. the more of also business than see even over somewhat drivers, of and you And the industry. our we lower who what to more but look claims industry noted also severity decades, preferred add being

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Morgan of comes Bob Our with line from next Stanley. question Huang the

perspective historical to we ratio? a because, Progressive. think maybe follow-up understand you the target that when about about Maybe more you're just talked lot about it, going think as of like you potential you're of just growth on forecasting about you a modeling on expense level? when expense a one lot, a lot we How a is the there's it like back a comments impact a the well spend on when growth. as of we media how you you thinking to And way say be Can think made for about obviously, should that help ballpark us what earlier drive to plan should to from normalizing

would where rough media They've incredible. a I I levels. on historical mentioned we've say that years to to letter. had back couple, several We've had been more back in pull my Yes,

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Yes.

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all think after for we're stability. some I these all years, looking

thank you that. So for

Thanks, Absolutely. Bob.

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

talk can the about has of has last couple economy the the the over expense done you years, other of question, first ratio? had My what to given scale company growth

the to Well, down always We're out you expenses customers expense economy want. trying schedule, ratio. able what push with to have you'll I think any time and an be our the investments balance

things other like and digital that. So

on you So the I can a continue have that. get, brand lot bigger or expenses investing our in can more you digital to whether do push it's but been think we and customers, you we'll that, the -- for

but We'll And are about we really coverage right And risk. And today One parts that having is little prices. what's of for with continue understanding investing, Mike's X economies prices we of scale. segmentation John expenses. segmentation, rate question, to of broad and what are other for talked our And talked the constantly to earlier is challenging that ourselves we to long competitive as sure. of that's long pillars, for here a the competitive industry-leading about sure. as getting I'm is those balance on other work Sauerland as as bit

sorry. Josh,

on internally call expense we As I our you think what focus ratio. we know, nonacquisition

optimize always scale optimize that. And a we're course, the of side, is and costs. We're relative way the do we media. expense about are where in market lot a to non-acquisition always looking media to of talked of part we ratio on to So rate opportunity adequacy terms looking to

nonacquisition We to have and ratio taking, on investing but relative of successful to non-acquisition opportunities of find our expense we it's expect a continue longer over always to longer lower at to run, Tricia our the run, businesses. structure the balance X in mentioned, look all least X across our you if been in ratio. expense out points drive our cost

and commissions? at seems rate Both does profitable well most commissions the contingent as marketplace as base the is the What to look in question be cycle point now? like for other where this right of My commissions not. competition Progressive

other have too I and have with some different our Pat structures to they can commissions agents platinum have stable, we different speak mean I to think, we I have we also let if we, agent pretty flow. competitors on and programs take and because want specifically ebb I been that. our don't depending a

a competitors lever. as we haven't definitely margin seen Yes. that. cuts And profitability We've restoration commission done use or

cures and and agents which paid component the and having we we've do you're that's have performs a to we a making our when get aligned incentives So correct when business without And structures commission maintained it contingent well. commission. think money, contracts. design, self when doesn't, well, superior because We we're change not

and that market. out had deployed and built in that we So

pulled come think have they who we potentially will want have we to back when long And beyond. agents competitors later that ability back, market know Now in hinder 'XX the their to memories. restore growth in or

segment. Robinson

incent Fair to have So it business. our we to well to comes agencies when marketplace structures monoline as do say. bundle. the for different the commission our for very just clarity, compensating as And independent agents competitive think Platinum we for we're with business bundled

Our of next Bhullar Jimmy question comes the JPMorgan. from line with

as one suppress growth So XQ just your count does after? PIF a growth for we to Or earlier growth? this Should app apply be in trend and year XQ. weaker well mentioned being following will the improve of to it assume similar that in on up where you answers, in tough not app will and that the comparisons comp comparison,

than in apps. going I different expect you're PIF don't think as to of a trend new much

a quarter, actually we New apps slow to XX% I tremendous XX% just was and just Like tried It much. were in growth. direct, up said, so overall.

where seen growth the average you've you and as written to down, or have a able just just year over I of value course, up growth where see little be premium also new because that's a to that of think preferred PIFs, apps But you're unit unit to our are retention. can going stable So to go growth bit want is years not these negative trend. company. And our

is XQ, I outsized. reason of the it wasn't PIF growth was sort was And in but good asking

grew I March X% in in Personal you and think in in January, Auto. XX% February X%

with pretty on I'm It's number, another good of Yes, book PIF the darn that with and I with -- X begins book. impressed would, our with size. anything our pretty growth

started your of sort competitor not repricing marketing pretty your many of to heavy? revise you pull you that you profitability? as I guys But earlier. prices are on competitors spend they're What realize as are market Or then spend, back they are, And on marketing book seeing of in to are continuing raising because just much up terms as tying well behavior. as peers, following

competitors a I to time. that's be the excited it's for we're why but reenter said, believe it. good we everyone, shopping, competitive No, seeing I it's market, about we're ambient and seeing, think a some really still and like going year I think We're

Our Goldman next Robert question Cox comes from the Sachs. of with line

certainly gain you're held time? on you'll Progressive? personal and start share an that be Progressive XXXXs a the short Maybe than little is growth something that? term a the it in leader you here, been not seems market more the for taking structural question around there auto think and with Or early State in Like Progressive hold if ceiling a has like Is already. is off order, can of longer but company view Farm do internal aspirational that share over XX% the can in you bit share

much I underwriting we can mean as we while $X.XX as we grow want least to possibly make of at profit.

out of them to to execute And not passenger on for with we where well. auto of construct going the why AutoQuote will why be it's working -- to kind So -- market. in reasons shop gather since more give business And of us. we understand were is diversify. auto easy that We've where -- that XXXX, money. the is business commercial continue we execute. share, of making That's ago, much had that. private set if premiums we're that as we the this a the used more XXXX, first market we years why They're even heck that we're really home called surpassing we've really need That's understand for we've we as able and addressable ceiling transparent and our getting horizons. And Explorer, also share. been and need can of together to And one can HomeQuote go not we $XX long we're we to save obviously one construct both that be with where lines have extraordinarily as and Explorer invest, growing the that's customers or to a an all Explorer, and is What way on the think to, X we do to XXXX. billion done gain going our McKinsey BusinessQuote across

our we've there, been The Florida also We is where just last exciting but the we horizon week. growing second that have Commercial Lines state XXth our excited we're with coverage in about. some BMTs expansion part entered

We We're So to and obviously so excited larger very that. Protective know, fleets. calling you Fleet just Protective have bought Specialty. Progressive TNC about course, of now And our business.

win, to products unmet believe and those but ancillary those the we then we kind for have further her So products needs think and where that term group. And out. fit that right you Karen X horizon of are the little exciting is those a been have play afield, will really customer bit and expansion believe some we right to and longer

continue we how constantly a in intend outline to share of Board we're to years. grow have and cycle this a in retreat XX across So our market we board X profitable later years, to manner. And do X in fact, week so the years,

team X excited excited in amount years. at given last do the about about that future. any And if in can Cleveland, the there's the team So, we're We're Ohio. of we're it extreme point position the uncertainty in is the it, this here

of And those the through you just on rate for that states? second not states larger first I walk what hoping is the yet you're the us adequate and some just question, Awesome. plan was maybe game could

got typical of We on about just the XX the plus the York, talked agency. you've California a some New of on coast, Jersey, typical, it's we're, think Well, on New states direct California side.

get good We're the for coverage they continued really able each consumer availability to try that. to that underwriting that conversations protect make is want a the want We to the And is to we move because of be love. about profits. So do consumer. all need towards this have things having $X.XX to to they is

So fully to we and that work to open each available be insurance department continue and we're going consumers. need rate to for get those then with the

the line with Forge. from comes of Wells next Greenspan Our Elyse question

and little bit PIF back question, marketing, guess a maybe first tying into My to discussion. going I the the

budget XXXX? be it spend guys you the even to this As out the of trying think you to you acquire customers lay about marketing quarters? year, Like expecting about Tricia, are for think you the X as throughout cadence do during how marketing the

Elyse. Thanks,

marketing spend, the already So like some pre-buy. of we

to other in out of And we the like react will there. sort digital and be happening where then fluid have some that areas can that's we So other environment. what's more

our always be we if going is can the it. our I'm So competitors MPX down, it. really do it our efficient and And what doing. plan. are increase to prospects, is customers game that [ to new do That's with are We're doing our which again, around ] like -- we try it sorry, has feel to

Do not some and the the it's easy books. much continually anything, have make that bringing Pat? want that new So to can an to tweak door question. we as it will already efficient we're sure business be while in you then We on we add

in of heavier we normally do customer pace shopping. because would we QX say I No, QX than in

where And to in Progressive. sure know said, we'll are. people the to just we there's to bring they there lot when So fish market, them available to of want advertise make and Tricia where as fish out a

As we've XXXX. slower up in maybe stated than a this we year, did we're little opening

if up insurance. growth from our of hard market want new we prevails X also provider for people home and perspective, commercial historically we'll or would we more we to spend looking continues, So than QX, on allowables between then have to a probably are will auto been. continue to know But the level that and to capitalize while X a pacing be

our and I opening up forget our is other Yes. don't that and unraveling about non-rate actions. lever,

of different share that's can a a things our play, year. market reason to and in that So we've and got believe lot we this capture to the reason couple of believe,

another avenue continued to that's late do since year. So last that we've

in follow-up, saw And January. you favorable guys then my development

month expectations was frequency the when for would of to late right better a 'XX? just the that's continuation January? in severity you that a have sense in reporting wanting does that while, typically, -- first year, And drove right, get that trend from that what time or there prior I'm some be development For in claims a that driven?

Again, And thing it's was Gary the The were of behalf each let I that X team data will but read Florida. company, we of development, say separate tight. Gary's the the right that do of year pretty it that. I'd Florida. team I It's looks other majority we're but adequately on wouldn't and It's and like do states and decrease. was a every of I'll just at would Yes. play lot the month, pleased his have mostly to make January. out. too Most very January were sure much reserved, favorable obviously, let from. into to month

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

non-rate for the compared just PIF on from non-rate you more growth spend, a rolling think So impactful size unraveling PIF some actions? growth? to spend of been Just growth -- potential those can actions? there or wondering I you impact be relative Tricia, just just to back how to on question historically, from help marketing nonreactions had the can ads has Or bringing up down

to were states. think hard actions our like never on bunch because different of year. different It than do channels. different to really Again, non-rate It's tighter a there's it's I last because feel could we'll we'll we we've I in do, some size quantify hard actions been different and in be products,

it's quantify. hard So to

sure that logically in we're it we we're make not to But doing what trying were it bore. to if to sure the unwind discern very growth, each. would full we reaction, know you reach it's to go able margins. that. What have into we slow system to think doing hard got is target making and We're to profit our does spend But media really now we want do rate a quicker I the that. exactly tight

And PIF looking growth, add, Tricia we year. of more is driver growth. if mentioned, retention looking to stronger And business one I'd this we're new towards rates are, but a PIF stable is far driver, forward as

environments. feeling are adequate in most very We

already expect retention rates as a have certainly better are we are to improvements. continue and to raise -- continuing to place, enjoyed in but we well. retention So improvements, Competitors

well. basis force to a as on through, renewals drive going policy help we be we're the a and competitiveness place, when So growth come think good in in will that

historical into retentions but you my said not at And improving, Where now? that of is And sort think, that well. follow-up a it. Got that just would were is at and in Pat, leads I because we just comp last I are PLEs new think different had quarter, -- just about bit tougher also the thinking retention on as little I a but recognize comp there is levels. apps,

retention? far So we growth. of some drivers Just of how historical of PIF away thinking are sort from through the

here David, we're internally, PLE of top about trailing talk have where head, the the XX my to lifetime we pretty both X I don't historical PLE a And value X the from know we at are of our about month. of but and earned we month premium. David, and excited of that sort trailing

I think we're pretty high.

Yes.

policy getting when We certainly obviously. project at that there. highs our might are not in can't you We But the yet is indicating new for quite And we achieving later all-time that, charts, year. But the life that's what high look be conclude. you trajectory we're our might expectancy. back to

much We to rate environment. we competitive So play in as to again, take rise, have it's as think historically. upon stable to place, The depend to much think and we're having not going we a policyholder will market meaning nearly retention. more continues well the

with question of Tunis Autonomous Ryan comes from the Our next line Research.

little Tricia, bit I you're talk about, Could about how XXXX? you guess, a the in across book, thinking just severity

fact little Yes. I a bit. like the mean, that severity I to seemed moderate

little And When calmer. a you to we seems it's were hoping cars, year, so look by that bit be bit little benign. fixing we're that a affected and at, last

is kind services inflation think mid-single I So auto X and parts of the nearing digits. in auto is

same the perspective. what thinking a [indiscernible] thinking severity we're the watch last with how We'll it. But changed is XX%. that's if did moderate of to benign year. we're, obviously about right So in -- something feel I they way would as I'm and I from I think And kind say X%

rate the year, the shared to a Got of it. early amount year. was over I of with in it taking last expected modest then And you you know think that I year, us be kind

New yes, California, Jersey, rate in at aggregate, just rate Could guess, mentioned what the those, what I give maybe placeholder be get in you us kind you're we'll those You looking to able increases of thinking 'XX? York. terms New for, of in the a aggregate, if in in you're states the

for which Yes. to, is in target for I midst said, to I be say get won't or needs talking is, really it's those I be be like the because each that verification profit rates. that margins, we need open, to unfortunate state. as what share showing our departments We're different our we'll to with able consumers. the of can't and for at can

country, rest the at years. good gotten rate For last feel the we the for the of we several have

so really addition that's in what departments. conversations to our the we're and negotiations And with on focusing

more, it. sneak And I could in. one if with just then progress Robinson. Got it obviously, the

broader auto does? guess Just that broader like I that or what agency geographic heavily kind it your the of of Is looks diversity versus the book book. still book curious like coastal doesn't look

Are you are more the of side you you, talking thinking like property -- are Ryan, the Robinsons?

Auto. the On

seen So the yes, it like more wondering had -- historically coastal, you've look to if because the how agency starting it's the been property, I'm book? of

Yes.

well, to Robinsons I think make -- that we're everywhere. sure trying there's

the getting be a et obviously, them, there more But because think feature states homes, growth. cetera. are into Robinsons we to a I of of So value could property different nonvolatile that, have and yes, insurability

ahead in of in we working We in areas Robinson sure. moving time. book we're you in notices into but go. I to growth January, they But read will -- see to them in growth versus our still time. actually new XXX,XXX app long yes, we those those You'll volatile, Robinsons states But in our the out premium will we over those for plan, our the our we want all from it should those company take bit nonrenew and data another a start and discussed with as that are that growth, our away nonrenewals nonvolatile to PIF little take set mean a way this midst growth if with of May, of of Florida, still some grow were should year. we're

the Citi. of question comes Mike next Ward line Our with from

reserves that are of Just Elyse's Florida feeling how reserves last the guess, Was some in I you And from up on of the following litigation-related those question, year? releases. situation? about kind that

kind a It was couple different of board, mostly across things. floor of to the

some on Bill. were settlements some glass, House from Some

inputs was little see But a want closely because the especially And things ahead positive release, don't skis the we'll Florida. lot been are there we're of tort but that unfold, of couple with I and we're believe, to to can that new, starting my feeling in law of made about a get helpful. the in should change really bit So positive that. we about to that. it's different again, still there's Florida. have we comp watch new of But a the very negligence changes be reform that

frequency very year-to-date? about the Okay. on favorable following frequency, And kind of then curious December. like Just

I a don't, about current XX the you if of that there's because from frequency, terms and I mix. on that this trailing lot into over XX X% at look I data goes were it the at saw quarter would looking in more

We with So a John our tight bit. talked underwriting. about were really little that

less is mix of causes which accidents. preferred So business frequency more our of

to benign. really little December since a hear course, of there. of this in And You'll calendar, changing data But then, a weather a Gregorian was bit in we're lot.

would So last severity. the points a all more XX I But can't would think continue normal et cetera, years, be decline as reverting back predict that, to thinking we couple and frequency every COVID, frequencies of ex our to of of frequency I year. course, or trend of

Our Woods. of next Shields question comes Meyers from Keefe, the line & with Bruyette

quick questions. Two

think the XX% how talked weather you property last above was of the of the in kept Do the the getting in you puzzle about non-cat was issue you price that piece XXXX? Tricia, correctly. sort past, First, that

went a of to that. trying There's weather of, some of just think the things because nonvolatile. thinking was January, I'm I lot in that was actually January of too, to

the just here at just where we earnest, all think I of right kind our able be I And end to weather things into and de-risk the started things across really to were there, say those us in working a especially in segmentation. board lot the of put still states. on But would the there's We really, volatile XXXX. didn't together have the year. We're We So big with nothing rate. of cats. went

Okay.

like your on question Is other with to -- contractual there locations second the The regards data is from PAA. your on to companies? any ability use limitation

Yes.

the very data a just relationships within at -- that, places don't for sure Progressive. make we we are their is it's other We are thing important -- that very and to proprietary share it

So really algorithms think as monthly that a there's actually have for a their because to we've the great example, reports, and worked a partner, long with for data an same ours. is company the with and They're we we bifurcate important time. everyone

with Jefferies. [Operator of the Kinar comes Instructions] line from next question Our Yaron

questions My improving maybe room to first on incremental returns How marketing expense and leave and to ad the Josh's really spend, back question spend on does seeing you there? ties efficiencies of compromising lower ratio. your economies scale much that guys significantly increase without

because like the the would to this compared we're And it expense talking our maybe Well, pretty year, ratio, especially hit probably last expense direct right marketing lower. of points January look directly at some spend. I isn't going compared, low, was it's more X.X I if Especially to comparison. look, ratio you're about that's of

just I will marketing it's that would see So pressure there. be there expense Even the direct spend. spend will ratio. be because on And out efficient the you'll follow though the

ratio December's to If January. you look loss direct at

bit think I a little December was over XX%.

to So start play. see we you're media to media our that into going when put budget

you spend get and ad scale bucket is Can to kind what of other if guess expense so trying ratio we that, that significant back I not is XX% XX%? economies today essentially see which rate Or of fill relevant mix the an is to of the a anymore? I'm is roughly of get ad so to spend we'll XX%, here Right. at probably go back, stuff.

Pat I mean, in. let Yes. I'll add

I rate. bit talked a expense the little nonacquisition John about think too,

I'll in bit. So a little I'll let weigh acquisition. show Pat

spend the to get to be just spend going to to going not We're up are We XX%. to efficient.

we'll we focus new about. Now and and great bringing you are expense That ratio business for of anything? on some be one XX%, then formula. could to add to feel and non-acquisition continue the reason, great thing. to it up Do huge And one part want amounts, gets pressuring we as that

Yes.

business the hierarchy have to order your side. and on pull grow a that's in other characterization to business the is in in the I slow that think spot on we levers order we that of

So all to spending whether we drive to conversion bill it's up favorable doing rates we that would starting a then and verification want with lower plans, if more unable more reducing at those we're opening have grow, or then potentially maybe we're that that reversing at at hierarchy increases, gone ratio. deceiving the to that And right rate But due expense is premiums this is what's point. significantly now. a that's little average level point, the which driving up down

acquire customer lifetime the and claims end. growth against and be an So Tricia's to ratio phenomenal to that our we dollar expect to back going make governed But deliver even to was budget support value can the what in to Progressive the that were basis, the to we customers of where it service spending past. absolute you're where back on ability to of not if got past, get our we is point, we expense by efficiently course, your customer in and sure to

we've we're we're doing the that to that I that unwinding helps So not What some of swinging changes in back hope XX%. is made.

Media, the other a Some costs them. to it obviously, have has little cost greater on expense with associated very side.

manner. analytical just surgical I little it greater appreciation and We in give spend. to how wanted do of a Sorry. an extremely we

customer pricing a in at very finite by our have We segment loads level.

to understand we customer lifetime meet so segment. ratio and combined what And targets we spend on each can our

than customer So, A spend, surgical segment targeting are in an that into product thinking. think approach allowable after point, extremely we and segments being ratio. as we into you're we different are little we to where level. up To going spend I cost that we at go know targeted not we can expense Pat's the have priced the

I I think questions. to the you just was articulated able the way ask than

to So commercial question, switch if the we thank you. My other could book.

there's think volatility importantly, trajectory year, give ratio. with I the both business terms last and you the top where there? you of loss how are TNC of kind update you had you it? maybe in an see more us the the line growth comfortable are Can But you some today, in

Yes.

So and for me the the let talk I'll get -- of Commercial overall, part. kind TNC into about

we especially points our from some bit to ratio -- in a So earn products XX we year. X. positive a yet more perspective, feel And I this expansion business, little are core I with about where then horizon talked commercial combined much in about talked that like for

significant it's Fleet, you think core little our our as think pressure we'll quarter. into Progressive of think some of rate increases important think TNC, play on in to BOP. but The them. strengthen we've to continued business, So and we go this year, Those of have saw reserves, that invest do last TNC, put a ones

go where, in better back first So about it. started us. if you really back we've that go we we with we X that the much have XXXX. the And helped TNC if has companies work learned with. But feel state states That you knowledge total business our between XX in we to

UIM. maturity Jersey of state strengthening, a lot the year in be X So the of to level coverages with in a little And and of New on each states, last reserve and depending happened bit is and happened what California different that. UM

margin. So reach to to that's our rate where working sure right make the get can we're we profit

next Oppenheimer. the Our comes question Phillips of line Michael with from

maybe well, have, just I think I two.

away customers Personal that there's from extent any to sticker Auto the bundle? in you kind mix other? To other more, shock impact Are get is desire if stay hard the have what one the on seeing the one. in of of customers words, versus bundled. Just market In maybe

up for mean, I with it's else. so gone right think much because price are looking I now, everything customers

me you bundle also a really can for shopping. you because The companies. in most So discount market to equate get more people overall do I like hard to just

we them. in get the -- Just their rate and got system can already people and renewals shop get have the to they

care think, get to either of a dictate customers we seeing bills. market I want and to trends get want we lot we bundled in we want But one. get regardless it's based they're on to Obviously, about the So bundle. the the home their really, auto, the

loss you couple in is your did years And thoughts trends then ago? can looking? a separate, Protective any that you just business And that any on there? How Okay. of trends share

Not really. No.

stands smaller the Okay. normal that versus fleets, smaller normal the out commercial Nothing business?

No.

expanded continue We units before continue, to our fleet we'll Protective from XX own grow. power to power XX units. We've

We continue to expand.

acquisition to of continue We in integration positive the the work And really rate we but feel on Progressive we acquisition. that have to about the system Fleet, share. for a the definitely some than nothing more

We & Woods. line the from Shields Meyer have question of a follow-up Bruyette Keefe, with

either Or I into somehow? commissions was wondering that factor profit the whether XX% goal for if ratio combined there target the is PAA just a business?

that. just or come the their auto There's their of that are door The then their commissions with and commissions on rating the based home agreed algorithm. in just we've that companies there, rating course,

contract combined the They flow on ratio. area a in that as expense

of follow-up Elyse Wells line with Fargo. We from question have the a Greenspan

Are you year? comes up program as guys reinsurance any renewal considering making your for this to it changes

tower renewal. and well, program London, our Aggregate Program. you like the And actually, we people up working with is our now, come that. we'll in for in on renewal what talking ] are X cat in June Right reinsurers, outlined with results, we're then K have [ the some was of positive I feel saw June, think the the

Yes.

to will exactly same. we offer can't targeting you the area. be I generally Elyse, So don't think but have us retention definitive of guarantee can anything the in same it generally

We have, as enjoying we decreasing derisked the portfolio been property PMLs.

So that speaking, the focus as helps the the of the we you we today. similar might But at think to much. the of have very program buy June generally and at tower to have cat because can structure what us top of X not is

a follow-up the BMO. Zaremski have with We of from line Michael

Just follow-up. a quick

legislative say, actually that Florida you said recent I positive. are the the a First, you first performs feel I heard time you've it was think

context gave more that it. are home might of You Florida, reforms strategy in meaningful your you which curious, enough cause centric? has But it state the insurance change been, to just around derisking I the some think,

No.

properties, of properties. I Half had, like we is of the We so that puts still litigation anyway those there allows what are the have derisking that think grow of pressure rental me not much being feel when able book. about have Those and the the things book. continue were derisked Florida I coastal should to on think we think property regardless. about to to rest

structure. what anyway, that. I I want that out I So to ahead don't of think to good of and And you I reforms I kind back do for say. get will from I I would it mean be would yes, I think see go of But the my wouldn't the again, want just how course, pans overall out. skis, think that's

it now, sported data with we're So new right good. Again, want it's on give time. derisk I to book. construction some in open we're and seeing believe it. I And to business homes, want some small really that's that we signs for the

the We with have Evercore. from David a follow-up Motemaden line of

rate Just in? is to on How question year. auto last that of of earn points had got a guys much that the still yet XX you personal

I of much Pat, How that think...

renewals. in. we this year know, details, at are we'll X At in increases some and months I'd I X that policy we've for earning big have because but we've to table obviously in probably points don't to the later point, the got, that look rate I got still think X the still XX-month got earn

Got on any in ambient it. just Understood. And several seen over months? then have shopping last shopping the the changes ambient levels, you guys

shopping. ambient in increase the seen We've Yes.

which takes have XX-month I'm policies, our earn the in policies, the have see levers other competitors And when when time and think we of our but that continues. I we like if depends that on all many a system, said, growth. lot some that get it watch we'll we'll has because X-month their competitor so rate Pat to And see have have diminish, for sure obviously some in. more the that's

wrap this. Let's up after

A comes the Ward of line final with Citi. Michael from question

was the it claims I of something Is prop? but value else? Last Or is just number? customer specialist not wondering least. increase in that is that part the property, in that the

not on question. I'm your clear

the specialist increased? On claims property count The noticed. we XX-K

claims. Is that. Operating

growth? head the The count for growth

Yes.

Yes.

ASI, wanted we And adjusters. talent use in-house. through our of we ability are have historically, internally adjusters first independent our we our to that the growing So handle of claims lot were still independent a for to that own handled claims especially bought majority the while when we appraisals,

is the that increase. So

with. book. question is that did yes, understanding to grow property and to But just us that I we Sorry, as talent your understand our have to begin increase

now I the call like would turn to over to back Doug.

question. appears That our final be to

our concludes And over back I'll scripts. closing that for [indiscernible], event. it the hand So you to

gentlemen, concludes now be Relations the Everyone, Quarter replay available next the for Progressive the gentlemen, Investor of you disconnect. of year. day. a and Ladies Investor on will may Corporation's about and Progressive's Fourth Ladies a that Information section the event wonderful have Event. website