State Auto Financial (STFC) 12 May 202020 Q1 Earnings call transcript

Thank you for standing by. At this time all parties are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Today's call is being recorded. [Operator Instructions]

to Natalie call Schoolcraft. like of to now Relations, Investor would turn over the Director I Thank you. ahead. go Please

Kim Thank you, Senior by Shelby. quarter Good us & who who of Vice morning, everyone. Welcome Matt CAO, and Officer, to conference Investment and join Berkey; today; Senior Labs, Commercial State and Mike Pollak, unable President Jason Today, Personal CFO, Scott Senior Officer, of President President was of English, and XXXX Matt subbing President to call. I'm Director Lines President; Chairman, joined Managing for Auto Analytics, our Chief Data Garland; is Vice Vice CEO, Jones. Mrozek; & LaRocco; Vice and earnings our first Actuarial Steve Chief

remarks, for lines prepared our questions. the open we'll After

include involve in contained may Our in our uncertainties discussed press and Such with as statements. well our materially results may by Commission. of of statements, as forward-looking of Exchange from and number release, comments risk risk types those quarterly and the forward-looking which today actual end the performance. a financial at factors their filings may differ factors annual factors our are affect projections future which to cause or Securities nature, These

containing information on of our stateauto.com with are Financial website our section. along schedules release financial reconciliations available and certain the included supplemental of other measures, non-GAAP press as part under Investors

Chairman, call STFC's LaRocco. over President the turn to CEO, I'll and Now, Mike

Thanks, Natalie, good and morning everyone.

the observations comments I to some want hope and everyone healthy. on COVID. begin First, is phone and safe I on with

I day, The was digital emphasize work. move that enough significance State not that about remiss made this a years. the remote a the cannot to workforce. talking be foundation our I to Auto to over X one team. Within transitioned by of last we company possible our would start

and are service the met remote Auto was that with in working of struggling spoken handling struggled a folks I've break claims I for know with XX world. policyholders. over sales, many in this our and in last State business, effectively competitors I've and the There As years agents no

that so transition unique at other seamless The was culture the we Auto. factor the State have made

need They the nimbly remotely Our customers their was and allowed and what to prioritized Most culture, family work at meet needed time. their the them move. which meet the first, did made challenging this embraced to associates importantly, our personal needs places needs. to

of made as customers orders possible. we of As slowdown. company, decisions when flexibility work payment economic need regarding We a knew to our who some payments, fees were the quickly the customers struggling with plans and and stay-at-home financially result very a

be right While, impact, thing it do. some financial there to was would the

time premium X beyond not of would or on time, did fair, it deciding clear before impact driven. of term miles took of just since with continue things action critical return based months. benefit seem the about thoughtful coronavirus well We because to short a was before more Being of any due quickly. being fewer program changing were so premium couple bit a return was a the X taking Offering months

offering discount their last at this two a premium premium full by allow or one better giving our a beyond next rather personal and renewal. part may of the a only well the will credit. approved than pandemic Xst June recognize return spring fact renewal larger plan regulators, the X% to by provide that months' of the Our their on partial us tow as policyholders beginning began If auto discount will

usage-based this part smart harsh selections usage. increase second of seen in choice. to encourage a have was our that announcing we a telematics insurance Since COVID adoption The plan an telematics. and is plan, of is awakening

and customers had issue of healthy, and has the on result focus taking to especially aware our legal COVID, and business are be of insurance. a threat safe care we of regulatory sure have as associates interruption While been making of our

commercial include require Our physical virus policies and property also a them direct exclusion. loss to many of or damage

We limited, or through expanded is unless confident artificially a national legal in precedent, mandate. that BI governmental very are exposure program, changes

workers' paying claims are frontline Regarding from who this on medical the professionals compensation, the we support of battle. of

unprecedented Of Overall, total that we of related times course, about premium and hope we our associates, simply limited, in our and comp agents our have medical policyholders written approximately continue overall, of adjusted exposure in healthy. stay classes. XX% is X% very is well net and these to safe and

quarter and the three quarter points total. tornado losses. the severely point Nashville three these and an was by the specifically This for The of large three loss losses. on X.X large high of that in XQ had points X.X was commercial ratio points those impacted losses an activity versus X.X tornado cats our unusually Overall, on of quarter accounted It 'XX. XX.X driven level in impact were by

Auto performance. it the quarter with another continue to have State competitive agents our digital embraced how compensation lines emerged creative Excluding lines, way personal well have as an in lines Commercial excellent we again as platform and solid workers' of of another All once how the except indicator quarter another led insurance. commercial growth, had excellent was for player. as and cats, innovative, demonstrate P&C

These line to of steps leakage In pricing us improving to across of reducing return meaningfully profitability complete lead largest we our with driven, along and I bold initially had an miles underwriting aggressive earlier took the the to should personal lines, actions, than model. our anticipated. and process reduction

continues perform strong with quarter Homeowners to another well growth. of

of piece to our important spread business an strategy. of of Our our in growth line across majority begun this supporting states, has

left year. of rollout. by is begin digital are to launch which we compensation, the our should platform stages workers' The last end the only the of in Finally, product

to move COVID demonstrate took a digital. long this As well prepared shorter Auto just is I've State accomplishment said amazing how company on have and transition and an in previous this Sadly, of for calls, this completely to period we to future. time digital has successful a it made

quarter, has of have done quality the we what we been first the As clearer. never entered

And the over call I'll with that Matt. turn to

unrealized diluted per per at net amounts. of quarter net be $X.XX first fully of equity first XXXX. of share a which per fully to Thanks, Earlier reported fully invested in in the first quarter to On reported morning XXXX assets good losses impact and unrealized in income of compared compared diluted The reported $X.XX XXXX on loss of other ago compared share seen comparing these share the quarter income Mike, of the an of by we and to diluted can we gains of securities time $X.XX. per loss year we operating today net $X.XX everyone. a basis, today, share

XXXX $XX first XXXX For will $XXX.X million I unrealized basis, pretax unrealized further gains. included the first investments on of included million quarter of the of on in moment. a loss net while comment quarter of a losses, investment

a first QX net increase compared The quarter, ratio showed was to first ratio. last premiums from were was GAAP for the XXX.X%, strong quarter year underwriting combined in higher GAAP a it greater written year's we QX combined last a The was growth X.X of negatively ago. this than year's quarter X.X% XXXX points results cat catastrophe our loss by of ratio losses. impacted XX.X% While amount

X.X to loss segment of auto catastrophe year's to with quarter, in As less XXXX offsetting XX.X% increased and Mike to the our statutory to of the a reported combined loss a quarter of a grew both development year ago, development first QX first statutory non-cat mentioned, increase reserve by to a On results. point the segment year prior home, cat ratio in XXXX in XX.X% compared X.X driven current XQ XXXX. combined The the ratio line favorable improved of was contributed in X.X the a first Nashville improved year adverse ratio, contributed points ratio ratio. ratio the The as combined XX.X% of first also of the expense quarter and loss also LAE in tornado combined in year quarter compared point. basis, compared XXXX this personal last

severity, was damage injury fourth claims. and The in higher than in third accident in injury, development particularly by property party personal year adverse bodily protection, property liability quarter adverse XXXX The from to higher related was the driven severity XXXX for auto and homeowners expected development primarily Michigan. on

auto and on this results of from miles claims benefited all trends in fewer early more lower trends attributed have personal levels coverages of comments. XXXX on to will premium for quarter driven. First his Kim Garland

ratio The first stable XXXX. XX.X which losses, lines ratio catastrophe ratio compared of of were of the while first Commercial commercial quarter expense the XX.X% in was non-cat headline points, XXX% quarter lines XXX.X% combined the grew in to reported compared the of the XXXX compared with for to XXXX. combined statutory a for quarter ratio loss improved of quarter statutory and relatively first the quarter and to a increased

the added reasonably the Nashville, to was quite significant, of storm quarter reserves the release, consistent Tennessee in were XX first total for disclosed year resulting to XX.X individual As in commercial The be commercial combined year in losses Nashville ago. press storm favorable the occurred lines and that Development March early ratio. in overall X our a continues prior the of combined from this commercial points loss to lines segment ratio. total point year with adding

Again, catastrophe continues in be of middle All XXX which to compensation, losses will workers' in provide was the market. his combined market a products exception with in X commercial produced Kim which quarter comments prepared of by X impacted below all, remarks. challenging ratios the disproportionately additional and

markets. quite in the impact results COVID-XX on future on impact expected has and investments aware had everyone For quarter, economic the and of is its current

partnerships COVID. class would gas include was are the an of involved I and STFC's weakness the before showing does portfolio master or point limited oil that asset like to emergence industry MLPs out and equity in that

methodically the as market exit a class have evolves. few over We months the to made decision this next

value million recognized of million gain losses and realized XX, investment quarter As losses, both statement first unrealized securities included of of income XXXX the are in totaled of market we of caption, loss. in and $XX.X $XX.X XXXX, December which in net the the these million $X.X

highly carried as portfolio results low immediate XXXX of yields, a market X liquid ensure values securities expenses. and historically but our are We materially net portion relatively value March Exiting over our availability years. the rates $XX.X on and still market their investments short in market reinvestment is dropped the the at this to to of claims income as dividend of MLPs asset levels. The totaled have to put investment These million. past expected pay investment pressure term XX, portfolio class historically of our in funds above maintain

intended Bank Auto On million loan Federal March subsidiary Home principal the agreement entered State a P&C is $XX XX rate X interest provide with and the due The STFC year, corporate and this Loan at loan, uncertainties into matures owned points. through which additional its this general liquidity annual year, basis market amount XX wholly September for of volatility. in short of to of to an is term purposes of on

renew recently recoveries losses reinsurance limits as of each exhausted X, Nashville, incepted We XXXX property our last on Tennessee treaty XX-month July provided loss with generated typically activity the treaty by completed the months a per-risk Finally, we renewed XXXX. from X. treaties commercial property The X, of July X April the along that per-risk XXXX.

a retention is additional basis, The same million and with of to limits from million an million. million the a on $X $XX layer the $X group $XX million XX-month $X $XX term layer. million excess $XX of excess We treaty retained expanded million which

million the XX.X% excess $XX $X on co-participating $X excess million million are layer. the XX% and $XX million We on

over call the turn I'll that, Kim. to With

Matt, morning through parts There them Thanks and I'll all. lot are you try and walk quarter. moving this of good everyone.

had Our first premium a and had written lines growth growth versus premium ratio Combined lines of with lines Commercial of growth of combined and commercial written of XX.X% XX.X% a a results 'XX. with lines first quarter had the XX.X%, personal following. ratio overall of combined XX.X%. and of personal ratio XXX.X% lines quarter 'XX commercial of personal lines of premium are combined XXX.X% written

fire tornadoes start the to understanding results loss. first our middle large Nashville the with market The and place as for quarter 'XX

Our catastrophe were a was commercial This $XX.X million. for losses us. Nashville catastrophe primarily

on of two by underwritten, done risks risk were and These miles make one driven middle Nashville two a priced Our tornado. the and up postmortem $XX.X appropriately. losses million on engineered the losses that catastrophe were One of single total. a on were We've of Nashville. rare quite East the market side large they and losses West side these for apart, XX

learnings on Carolina it million. North had also $X.X We not loss first The which was market middle for but on quarter perfectly large postmortem a in were this fire the in from was risk and this There adequately, us postmortem risk. evaluated showed worth priced. the that

consideration, The on X are middle and the from commercial the to core fire events into includes comfortable lines combined ratio Taking XX points points footing. additional these of our sound market loss. storm large related commercial is XXX.X% an that Nashville business we

first of we performance second the and of the quarter is will have parts, then the each The cover COVID. understand impact part impact of product, understanding results seen the two April on the I results. our what of product COVID our product including core 'XX to in the in

versus produced ratio of quarter lines in personal premium 'XX versus combined Our 'XX. quarter business the and 'XX first first increase our quarter 'XX XX.X% quarter first of XX.X% first XX.X% written

a we rate force 'XX, exclude level business For a XX.X% and are of quarter growth premium our personal XXX; legacy new rate a of business; X%, written results the and minus policies combined rate minus first growth of if a minus in growth auto XX.X%. retention ratio of Georgia X.X% count of X.X%,

quarter auto XXX.X with was the result shared personal this poor ratio combined issues. our address last our at and and plans quarter Recall, to 'XX these drivers fourth poor of I you very action

on progress these actions. an the Here's of update

results higher the seeing spectrum. at more are has rates new the Early shifted ratios for for business X Xth and the auto We preferred also. risks pricing as rates Connect new X.X in Xrd. Connect dates mix updated and and end March model. are risk have we and implemented business states May the personal preferred effective X.X improved preferred our of risks between more risks closure on with auto increases personal lowers ultrapreferred promising

of in has early reduced stopped pricing March, business our the that old state. as changes we of in had filters new in early been we These implementation In implementing operational launches to we identified. that introduced Connect X.X the states filters some Also, quoting Connect believe by operational in underpriced nonstandard X.X implemented, began not business nonstandard these about March, where the are where we we XX%. were had close model. filters our being gaps The removed

of We and types are seeing have changes impact these operational changes on from than auto personal changes these our impact results. faster can immediate that rate recognize a

auto and April are first down second a is until the that of option only program, tag has dongle option. have been first a seen, In quarter on quarter level. telematics plug-in implemented second 'XX, early plus Miles including this adoption the offered encouraging. the we Our had as smartphone of option, 'XX, a COVID The at following. impact personal stabilized driven results XX% have of about we

meaningfully Newly reported unchanged. Preferred down. business personal new auto are claims are volumes

which Connect XXXX. a personal includes approval, volumes State for term filters to And is In Xst, business discount miles first as from policy to entire State In auto X response Our all lower regulatory to an one-time subject which discount for policyholder, new nonstandard every term. claim reoffering and introduction nonstandard A of Together volumes, Auto the June but developed telematics down, these premium COVID This of reduced renewal, of program, at the the COVID. next driven the we X% Auto for not are pieces. are immediate policyholders and XX%

be telematics the to program, the after estimate the impact our We see. not in important believe in telematics we days of of appropriately will with push a will We driven more selected important, of our what no an telematics know because we the the in renewal world. around wide million we discount allows is additional match to also knows discount plus approach, renewal enrollments. possible return one an levels. variety announcement how adoption seen And that we historical unknown, in be reductions. much risk will early premium rate to post-COVID telematics impact But increase a rate be across will telematics have because at scenarios. Telematics of $XX us The do at miles

Our moment. X last for work this prepared telematics on years us the over has

Texas growth a rate count Our of rate first policies retention quarter a homeowners' new written of growth growth XX.X%. that the first our disproportionate be that of a May. shared XXXX a quarter, represented first effective quarter I force the in implemented total XX.X%, rate business. we change amount Dallas-Fort premium a counties Worth for of are book State XX.X%; ratio level combined quarter, XX% of of Auto's 'XX, in In and rate of of will XX% of of 'XX, homeowners in business a in Last XX.X%; results

finished of more homeowners, impact year, states results pricing this have roll best other also making on the on should including the minimal. been Connect risks, COVID of has accelerate growth We homeowners' out Texas. work will version our next on Version X.X the us homeowners in competitive The than that later April our which model,

are impact. weather has claims Spring significant reported stable. more been Newly a

and mandates business during impact the these year. related April If The have times X legislators. of debt. more volumes for insurance New the X the bad cancellations than biggest on for higher the of and State homeowners This these very week XXth is state premiums our and mandates. due COVID week been show percentage biggest volume a received, periods was by past this. in stable of over last are unknown non-payment. dramatically and premium our state is and state of start moratoriums of quote XX payments to as non-renewals of of this Since post-COVID not risk weeks. as the will regulators payment examples the lines highest up is states COVID, with eventually grace personal

these potential bad of bubble a debt monitoring are states. the in We

drivers delivery or was contract. auto is for Also, personal coverage provide biggest requirement in for auto this of state mandates to expand example under the the what the coverage personal contract. priced The beyond commercial contemplated to

$XXX,XXX. XXXX, XXXX debt bad quarterly our incurred average and was around In

which million includes the to bad of debt workers' quarters. of million, for XXXX track important was comp the a metric large next charge and charges Bad be debt COVID-related quarter $X.X of $XXX,XXX. incurred non-COVID $X.X will an first Our few over

a keeping running. appropriate take resilience commercial channel is creativity partners work We a commitment of over accomplished onto the they independent another it and their operations the in point to amazing moment shown moving grit to one. last our lines, They proof admire Before what and weeks. have is is X the agency that our independent have it and and recognize agency wise

a first first For commercial a of XXX.X lines, premium in first 'XX. quarter increased the XXX versus written and quarter XX.X% produced ratio 'XX quarter combined 'XX 'XX quarter versus first

and to the discussed combined added storms commercial loss the large Nashville As earlier, fire ratio. XX points our

the Our includes for middle which for the growth premium XX.X%. XX% of And new for of retention results market a total combined a quarter, XXX.X, XX of storms of a loss. large points are and X growth ratio rate Nashville premium written level fire and business XX.X%; points

losses launched Connect market We the we in in with has first to and Despite large feedback the the position of business. Indiana, first been 'XX quarter, middle state, our early middle our be pleased continue positive. quarter market

For and small growth written 'XX, rate a premium of a are of growth XX.X; of first quarter XX% ratio a premium business retention total commercial our of combined rate new X.X%; XX.X%. results level

are with business. small the and position We progress commercial of our pleased

this during interruption. that at of business about and on this biggest There is The market declined by and around COVID for middle seen, issue to stabilized April not that discussion other results is COVID we impact discussed. have middle submissions have much add carriers The that we including have can commercial market not is small and XX% level. small already have commercial

Two of note. things are worthy

terms is single the every at of or for the and facts whether determine First, claim look of claim we to look not. the policy the covered we the at claim

many a require of commercial direct to exclusion. Second, also fiscal or policies loss and virus damage these include our property,

a growth and XXX% business level of commercial results our auto of new combined of premium a rate XX.X%; ratio 'XX, quarter first XX.X%. growth premium are For rate total written XX.X%; of retention

commercial We auto are pleased with our position and of progress business.

more level. is declined have XX% level. this about auto XX% following. to seen, we or The Certain this down by Submissions as have are driving are Miles at on commercial April between COVID less industries impact than stabilized stabilized others. results, of XX% and and including have at have driven that

about Certain is over only Illinois And X%, claims insurance is others. more is Texas down relatively driving is X%, down finance about Ohio commercial are while are while is down down are Michigan less XX%. Construction flat. auto down over and meaningfully XX%. states XX%. newly over down. or reported than

workers' first level rate total retention a are a our compensation of XX% minus XX.X%. combined quarter 'XX, results a growth rate and written of ratio new a XXX.X%; premium X.X; premium of For growth business of

The comp bad related includes expense of comp expense ratio book. our debt to X.X workers' net a points

the We Connect workers' be our comp schedule our on integrated to comp to our how commercial continues core systems pleased products. continue and more with become are workers' with build of business with rest

we of by following. workers' have impact this including XX% have results, The seen, April COVID Submissions declined stabilized and is on that the about level. have compensation at

overall. of reported The compensation Newly of by workers' scope that creating COVID issue for biggest changes claims some states expand compensability. down the are that is made workers' have compensation workers' compensation presumptions coverage

not to cover increase, increased set of issues. When developed will is insurers allowed offer certain are set the creates to rates rates are rates of to and covered it the that expanded not either expanded, claims coverage. need and coverage be issues, affordability claims, when availability is or are Insurance a

up of workers' another Other essential premium. compensation workers medical make of Nursing XX% XX% offices and compensation homes, hospitals make our premium. workers' our up

core are watching we principle risk. the make the doing and are true they with of react will matching states insurance We stay closely that to ensure as rate what to changes

ranch in a business For ranch are and first terrific State farm history written XX.X%; results and initial XX.X%. the business up growth XX.X%; XXX% of growth total retention of launched rate X states. a premium and results of premium we In Auto. in and just month ranch being farm ended the Connect our XXXX The March new of new a level first quarter farm of are 'XX, ratio 'XX, and of quarter of rate largest combined

been Quotes have ranch, and client been in The reported stable, volumes stable minimal. COVID business more factor. post-COVID, April weather has been results has new spring including had impact are newly significant a on of farm

claim, Despite 'XX, large quarter was in Auto. State new quarter cat the the progress market middle headline underwriting loss the in Nashville of fire XXXX first a month meaningful largest was by history March business quarter the driven of first 'XX and of the for progress our in profitability initial were addressing And XX% state issues. for quickly market and did The we Connect not operational and made personal was transitioned the a model work-from-home auto the a launches ranch miss and farm accomplished. Connect business Meaningful company. to middle beat.

I everything State of with enough last Auto cannot have are done They our this thank through associates weeks. for seven grit that the time grace. they leading period and

With that line we'll the open questions. for

[Operator first question Instructions] Paul from Newsome. Your comes

how economy, just read hit for big activities? revenue the business the tied early Any in to commercial lines other things could are workers' given be and like especially comp on the

Paul, first, in commentary. Kim? Kim I'll I'll lean add then to some ask

hard Yeah. the Could repeat I'm question? sorry, Paul, we had time you a hearing you.

tied economic the of what revenue comp on things impact and other the commercial to were like workers' they're Sure. could and in activity I'm be lines economy interested there? employment

So, are I the we what in early varies line. by seeing days think

continued So in our volumes and business actually new to strong stay commercial is actually April. increased auto

also so, the side been And commercial ranch strong. and farm has is, on

and we've of go not results April will sort use we there. today, so anything So, and seen just for

XX%. BOP, our CPP, date commercial To seen our impact think is I small business, middle compensation. and XX% submissions meaningful more workers' business, probably to we down market around the have

more pipeline probably the but in is true market, long. middle is this Now

X X a submission may turn until months later, new sometimes policy so in June. for we submissions or will the to show into it'll a not May and us So, up in volumes decrease business get

for without that. new XX%, happens XX% While follows down But sometimes BOP are would that more given guess probably that one workers' submissions and to comp quickly. business it

our to salespeople are seeing. their we're out there new after what best not That's it, business doing Although, going a have decline.

such relationship sort the a personal size tied windfall, discount your peers of I that just anticipate will Is they it's a of lot they're driven. should think lower way, rebate the in be little wondering giving of tied about? there's so we bit your have if because different the to what lines any side, miles a On structures, of the

up Paul, and Kim this bit. is can start Mike, follow I'll a little

if of as very trying directly folks I well, type seen. the of have seen tie reduction to mean, in I suggestions terms are some range, return premium think huge to it's more even precisely activity of did I try miles short I've driven of in know difficult organizations to claims seen the the that are which a and to different I've others anybody you we rebate in during giving. and driven. best at doing the obviously not faced were looked the surprised that. credits challenge We when behavior with our look what at miles has we The COVID, reduction X-month was the

on longer. recognize it the the is be of time full a impact focused it were more going And across One, an we discount to of driven And that that dollars were they again with folks policy thought a to were the you was amount to on small bases. those miles on going very per us just couple fair two, policy premium. to months. see And was broader clear

a to thorough driven, you're is going claims of the claims just pretty the straight line very So, did of to not indicators miles impact the team and draw early analysis get. indeed yes, try return Kim premium at. getting. in the difficult but of and his we're between we number But of look to it terms a

dollars. you So our we in frankly premium to to to thought we be chose on more now? quite and would improvement their appropriate a Kim, give felt look want policyholders tag was them what that fair we

Thanks Yes. Sure. Mike.

did, in think we XX%. work personal I our is the target combined ratio auto for

up have to we us not get on -- best are to but would that to would lose have based not XXs either. to did And try we did data our be but combined so, period not going a the again, with models plan and Right? perfect, a the that want XX% of time. money, a trying in We produce ratio we're over come

of -- The is, different -- is most time be the time up telematics, less. is job, open risk of of will period on start if more with this see time, get match rate period we plays when to push get individuals, how historical back will are time to drive that is probably right things on out thing because, a to this because to hardest during levels it then and states going the the it eager or that's and their to differently. Different depending that period behave

So having sort get be right. just the hard going was and thread a like approach, blanket that of to really felt more needle to

be on slower based a And opening so it's algorithm. of that telematics, with miles discounts if general driven telematics being deeper in will part than our

And so self-adjusting. it's a almost bit

that Now know insurer or we perfectly we it on that. keep that no that being or will watch so we other predict get right, perfectly can said,

Thank you. Stay safe everyone.

Jon. Thanks

next Larry Your Instructions] from Greenberg. [Operator comes question

good if elaborate interruption. you wondering just Hi, could I'm to related business your comments on morning.

You might many just you talked think, more you damage physical in little have then the And provide said, mean Can a trigger. color bit many also a on comment? exclusion. about I what virus that

I here. Kim Again, Yes. anything will I start screw up can correct and

obviously, the of is or all physical our eliminates and in having these obviously, wording that, of policies and claims protects -- from First of limits, the having been 'requirement' exposure. of all, damage types -- on our itself us

those language a -- Larry, I at claims specific probably, think claims little are look of number virus a and and been Then the you to think I we've viewpoint half there policies in addition And have from the have our our also over it received if denied. of that, it's around exclusion.

of pretty very is business in Our that, that. we of firm is and have situation end point this don't We our when interruption. it clear view with at point to coverage the comes I day view. feel the comfortable that mean, of pretty

talking you and I that terms an and about looking and seeing I and mean in businesses to bit APCIA. chatted that government from you're of as some through We're to here, industry, said that that of I'm a ways supporting them about away this Now, that, think the from the the of, process. plans small try doesn't little especially, at past, support State having kind Auto getting in

And coverage I this interruption from think in that point face Auto's situation this that it's comes business that nor reality with intended just never view. it's how when priced. coverage But a just to this State was it of was we COVID, not

comfortable So tag at you want to on don't in Kim position. I we are know very that our all. to

I'll try you maybe more. Yes, little give Larry, let a me, and bit

and all. about, So BOP policies, don't of have have business when so XX% we think just interruption coverage all at our like of them we CPP

So you a can then think the of that about virus of cohort. exclusion. have policies And a all X/X of

then add the that have explicit we don't virus total an if the damage interruption have policies, that and the up business about and remainder up our ones BOP exclusion, So of and coverage XX% the requirement. physical makes that have CPP ones

predominantly anything bit And there? if be elaborate more potentially know you issues lingering to just but could mentioned it I in you the on little wondering Michigan, auto a adverse seemed the has And book. development that

Kim?

Yes.

across it I not, we is don't lingering no. you think, interesting wouldn't, geeky want. right. short saw what think, a I But than issues. So would go detailed might this or couple I I quarter might I little a answer was is more coverages, think

just some handful in which for saw claims of settled were older we that uninsured So more. motorists, a

that does sometimes just not. that like So sort that's of happens, sometimes

in which lot think growing saw some we HIP, Michigan. tend not a We've I to we been see. in

And looking injury as our a in so the sort thing keep again, the and is, of things we are of prior probably as actuary. that's, a of into. do the then, that, something that's I sort reserve eye one we was others are life we So normal bodily on

those right. time get change, any COVID, And dial you an and in to that event so patterns like have trying and so

I but happened There bit a what quarter. don't that's this that color, So know with little is helps. if reserving more

no Speakers do queue. in any remarks? have There closing the questions you other are

continue is and on stay keeping policyholders This as very call, we're challenging the this associates, most and or healthy wish again, and well our I time. And, everyone eye proud importantly safe want hope our how on responded agents. during quarter, to an to just we've the Mike. our of and

So thank and you all today for safe. your stay time

and have in second Thanks forward everyone our call, August which call, XXXX. continued is Thank you Financial conference Auto and quarter for of your Corporation. to for on again support scheduled a you State questions, day. and for with X, wonderful our earnings in for speaking interest currently look participating We Thursday, your