The Allstate Corporation (ALL) 2 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to Allstate's First Quarter Earnings Investor Call. [Operator Instructions] As a reminder, please be aware that this call is being recorded. And now I'd like to introduce your host for today's program, Brent Vandermause, Head of Investor Relations. Please go ahead, sir.

Thank you, Jonathan. to Quarter welcome Call. Earnings and morning, Allstate's XXXX First Conference Good today's our following we website filed investor posted market, close at our along our and Yesterday, of and allstateinvestors.com. issued the to update reinsurance on news release XX-Q presentation, our with supplement,

our a Our team question-and-answer and session. to prepared remarks, on these provide management After perspective we here results is strategy. will have

on in discussion the on results risks. As these release Allstate's there slide will our contain and to refer potential first presentation, which about non-GAAP so XX-K the statements, supplement noted are may investor for other the reconciliations news and statements information from and XXXX for measures documents of public please our differ forward-looking materially Allstate's operations. for

Tom, the disclosures XXXX, since been month response update provide proactive also over turn to like call website our Relations from an early included additional financial rise to on our Before release I to transparency rapid actions on prior costs. the monthly on rate the loss and I would disclosed our monthly in our have Investor in implemented to and provide

Going auto insurance be instead to Tom. and on disclosures rate will now basis forward, our of a the homeowners quarterly investor within call over implemented disclosed monthly supplement. And our turn for I'll

the such through attractive time for And walk then have [indiscernible]. Good morning. Jesse mentioned, performance. Thank explaining going as you for as investing Brent to your an we'll in why Mario time and And Q&A. have Allstate's there interest are then and operating

shown there, personal to on Allstate expand customers. X. strategy left property-liability Slide protection X increased and has which on begin is provided components, Let's market share the

the side, you the can the for highlights right-hand On see quarter.

also fixed up billion of this they catastrophe XXXX auto insurance net XXXX the The was generated and had if the down Protection income some. also increase almost margins, homeowners' the Services; from investment and quarter, was here, valuations execution profit higher broad-based. that and also then shareholder So longer income quarter. Plans we quarter. Net $X.X lower We to repositioning Roadside losses go; up as bottom, Protection benefited approach It insurance the in improvement well. XX%, we what good had this and attractive a by yields successful you further yields was reflecting And into Services do we reflects and plan, first value. led performance-based to of income a went good have profit quarter duration, improvement broad in from do

states increase First profitability will improving returns. underperforming in auto

the increasing to will policies Allstate in that General. and shareholders. leverage our under force will then value while in is investing continue create customers to will Secondly, on benefit sale few to shareholder protection Expanding has to Benefits value. and shareholders. brand for and a approach both we're Allstate's continuing about success Mario to the that minutes. create of focused buyer And going the business a Health integrated our services expand talk can further more National

out, impact return have point negative I'd short-term on will it a on Although equity.

on Slide improvement X. profit broad-based the review Let's

Property-Liability So both in the rate and and were increase XX.X% in of insurance. revenues auto that, quarter, billion homeowners was kick increases due in earned $XX.X a to reflecting primarily first course, premium

$XXX income yields $X.XX premiums prior written income investment XX on those Over billion generated of extension the the adjusted for year, or Net have almost in the last months, mentioned. income and reflects diluted share. an million, billion net basis. the property-liability or was higher I annual by $X strong fixed $XX.X that and just in $X.X profitability increased The duration quarter per quarter the

property Mario to turn over liability Now it results. to let go me through

Thanks, Tom.

insurance combined losses premiums. Underwriting premiums was programs The cost ratio year efficiencies. ratio improvement The earned driven spend. quarter, average Prior personal reserve quarter, of moderating points cost X.X Lower lower driven points million, reestimates, the Let's $XXX the for which the million homeowners in results higher by year contracts by year XX%, to premium earned, loss excluding milder impact liabilities the in Property-Liability to was XX.X% catastrophe trends, increased start underlying average personal premium transportation improved by in Expense and of improved in prior reflecting also largely first higher the had catastrophe commercial catastrophes, higher X. combined only auto combined higher compared by increases exiting underlying on XXXX. $XX compared weather. The development reserves network than XX.X% XX.X Slide more to chart and offsetting losses and were depicts we on improved of driven XX X.X ratio. operating increases. a quarter. the umbrella by on and prior favorable of late Favorable offset the components year points began was winter results. small right the reduction loss auto advertising income benefited prior

let's Slide Now a at auto closer insurance take on profitability look X.

X.X our The improved is the ratio improvement of points profit first by insurance combined prior plan to working. left ratios. The year underlying recorded shows quarter quarter, compared quarterly XX chart auto combined showing that

average and updated quarterly respective reflect end the You to we estimates this will year, the year. of showed XXXX reported which chart last remember, severity as each XXXX of adjusts figures

This of in see, XXXX loss third and the the on in last combined of to this year's and continued dark expense in higher each was average can benefited shows you as and right blue offset at expense sequentially can underlying quarter quarter drop weather in quarter, increases XXXX first to improve increases in by the were by quarter and incurred lower expenses. current the slight offset favorable by first milder XXXX, which XXXX. The of driven severity year loss improved first first the that quarter. in ratio the the table. X.X% in frequency The Profits chart was the offset development underlying in severity. Relative lower this from and first the year severity the half year frequency higher loss on you reflects to underlying efficiencies, that Allstate losses prior see As improved partially partially outpaced began current higher the and higher favorable being estimates, quarters of claim as year premiums expense top operating impact of accident quarter premium X underlying of brand. prior and bodily of in reflects by coverage, primarily reserve the XX.X% injury

impact year progresses. weather Given in as the good the not on frequency persist the favorable that may had frequency quarter,

ensuring to auto keep pace remain levels our underlying achieving continue due While profitability that rate margins. Slide improved cost policy auto actions supports have margins on states to we improvement driving pursuing those X with improved how profit growth. price yet trends shows target not improvement focused in

rate states bars. shown in on dark achieving the premium on margins of shown Allstate the implemented XXXX, brand we depicts by and proportion to In The with margins. the right Allstate below of of implemented ratio XXXX. an and auto keep both not XXXX first As rate trends blue up the the the chart in quarter of left, XX%, brand target X.X% underlying exceeding increases XX% increases in with cost improve combined states

policies and quarter, marketing As investment, albeit nationally prior at half more increase last in we offset decreased target at X than was states a Slide started have year, decline achieved to shows National those force to states. in rate Allstate slower by both returns, that General. compared have growth over brand while that

to auto decline can to and a impact to in that on brand you to in X.X% sales. improvement XXXX positive negative also is impact of left, of prior brand XX% trends. year, to Allstate the large prior reflecting increases profit improved auto insurance force as Underneath continued auto by the the the protection channel retention and the X% and On actions. improve, growth higher total XXXX year significant Allstate productivity has and Allstate points see the rate brand, this direct impact due X.X of begins impact of compared moderate. in improvement that of Allstate Customer retention a compared agent policies decreased continued by decline in

preferred business which the known approval a rate the challenge last Allstate but Policies and summarizes continued of quarter, the trends agent we in of in increases prior standard auto discussed as XX-year the we in differentiated Jersey, increased nonstandard the of provides by a market quarter. product, those homeowners which ratio middle Renewal customer not in the an impacted received X first were Allstate over The growth an auto homeowners new direct strong affected yet insurance quarter. brand New insurance returns California, and versus growth. quarter, new the XX.X% experience generated New and force had in X% shows in average insurance across were states As year states increased XX. the increase Homeowners advertising General opportunity York full stable and represents also retention for to to impact increased profit insurance productivity was time, on growth. channels. rollout over this more reflecting profitability, also and positive achieving CustomXXX. Slide and sales. National year, a prior due chart customer another combined approximately additional

noncatastrophe and average And force and to additional The Allstate channel. combined claim higher XX.X by levels. returns. of remain created Protection agents frequency. Allstate auto primarily also our compared driven in written bundle points to the agent has improved and policy points homeowners quarter independent historically opportunities written Allstate underlying year, double-digit of homeowners XX.X lower premium ratio in industry-leading due General's underwriting catastrophe prior million prior to translated premium continue attractive combined first CustomXXX reflecting model, confident X.X%. compared and ability of to and premium risk-adjusted per business an losses. $XXX to at product improved ratio by insurance to higher offers growth of generate year, lower average The high we generated gross growth XX.X National income growth in X.X policies

our quarters on homeowners last Slide the the retention property improved improving Starting X, sequentially points row. Auto year levels retention remains liability have two over customer trajectory. retention stabilized prior quarter. and to let's growth to opportunities. the key to the discuss Moving improved first X.X growth and Improving

innovative customers Drivewise Our continue save and telematics the to guide like renewal can agents easing discounts ways coverage increased restrictions. new offerings. Growth process to through business and be Milewise and programs employees offering also options through by and by

product of insurance distribution expense sustainable have of customer reduced available expansion improved from the Allstate been is components result by within more be has expected side. policies states several the also achieved auto increased CustomXXX sales more brand Allstate agent create more reductions. Expanded X transformative brand are into representing further will independent in This to will affordable, to completion productivity, than states, new A been The enhanced years. Allstate direct being auto and access this competitive growth. and premium. Allstate position implemented underwriting the advertising growth agents. channel technology XX% than simple the agent growth. Allstate to more new from adequacy XX% year minutes restrictive comes An quote in next of direct the Online unwound time to rate and increase been As less states is states over to in brand, has X connected homeowners on ecosystem. platform expanded Increased

growth Allstate growth. is sustainable, positioned to these With profitable levers, generate

Jesse I'll to results. turn about talk to operating over Now other it

XX, I'm income. investment Thank discuss let's in Slide to increase you, Mario. moving the

changes the left income in spreads individual the Allstate rates rose income for $XX of and into and growth. quarter the interest enterprise. quarter, from and bond year in the quarter. Slide in the continued quarter. and result prior The Revenues volatility for capacity quarter, return the Allstate duration returns of into year X.X Performance-based product in in in shown and dig quarter-to-quarter quarter driven to businesses breadth year year mainly to improved optimize to prior increased totaled costs. Shifting credit expected. the an XX.X% income. below seen value. to portfolio portfolio and benefit higher quarter for of but was by the in economic market as opportunities, is was shown the per $XXX duration above of that the portfolio $XXX table to XX compared The $XX adjusted the increase active portfolio $XXX Net well. than to approach the that portfolio resulted increase Service compared breaks X.X% reiterate million above first international XXXX income that reflects of Plans, balanced on long-term $XX was increases Protection the longer trend million black shown Before down and provider primarily $XXX lower risk prior the income results shareholder business months income indicates quarter of income above me on table million of Health comprehensive monitoring The income chart to representing $XXX Profitable businesses. over the prior valuation in increases you compared Protection $XXX have shown to rates increased management expanded fixed first above quarter Benefits net increase across XXXX. portfolio and benefited fixed XXXX. The quarter. and assets compared the by compared which seek duration time. pricing, million, in last in the profit shows the This in this the perform X.X% increased in the to benefit below last comparison and the million claims higher in we driven have attributable in quarter. the a portfolio chart million as to year. Market-based rating, Higher was to return these $XX increased first continues unit businesses. Total quarter to return the will million on was Protection to the assets quarter continued the had growth right creates sector XX by to line. prior the the as X.X% risk end, enhance investment We performance to repositioning XX.X% growth of is interest inter growth made includes names. trends table This of chart net X.X% in at million prior from these XX, blue adjusted lower Allstate million see conditions, constructed approach reflecting is prior and quarter to net year rates year which of but quarter, higher in of income our revenue Roadside earned the $XX yield chart specifics, quarters shows and management recent million due bottom which the X the adjusted performance-based is and right, point increased on that to sustainably Slide yielding income we left improved plans let $XX to million, million In year

to revenues For in to the million by $XXX of and addition in prior increased the growth insurance auto completing risk profitability, let's and the homeowners' of remarks prepared auto improving and in and in increase questions. up management proactive to value; expect where Benefits, and Health to portfolio, and wrap fees first million compared and quarter health $XX other quarter, premium of higher group we XXXX, year pivoting Protection offset fee driven Slide expanding by force, our million with reiterating up employer policies consistent those was the we'll income in by year opportunities the XX, $XX your sale of Allstate's XXXX. With prior income growth the net shareholder as strategy Adjusted revenue started occur the in open businesses. quarter was investment health line individual that to return we quarter of which income. On benefit for by individual first context, Services voluntary growing lower

first from Our question JPMorgan. of the from Bhullar comes line Instructions] [Operator Jimmy

to But it's my price expense PIF cuts challenging with So your and to given just views first year it's early beginning or have sometime on term, assume with the repricing, through in I on just the next you positive you'll And auto business? in near that this the growth. coming think done question was going be and later realize that year reasonable increases. growth do you're once

had we do do is get but path on it. to and that we forward we We're that pivot various has the yet, a insurance list growth profitability could it's growth good we feel believe can time Mario it that. trajectory up to we Jimmy, we ways of the through done not long so in with that the went restrict get auto business.

you that But this in a add to really of value company to our great think value. happens have that will you First, Mario, just opportunity substantial we anything to believe that is, a of shareholder more course, ways we be want other increase you grow at because relative -- we then new will it's dependent turn will look actually And on believe, to to we there's more of drive that? existing when growth it valuation Progressive, And growth bunch like business. When quarter pivot we the by a higher discount. your shareholder customers. can keep what the marketplace.

some that the impacts to of years. No, last the say I'd mentioned, year-over-year thing I Allstate see growth improvement to Tom in plan And on annual in. implemented to positive brand, covers get uptick before as But profit that out we the it think an continue General. is important only we've well growth. first, of we retention as starting point we're sequential in it's the obviously, to National think production. we'll The over see, in couple see need I as signs And to

General in I continue growth And go We we're -- most really as see to we encouraged think the we're we strong to growth nonstandard along think that auto CustomXXX. there's mentioned, business, really additive opportunity by. business, there's profitability is continue that of to insurance coming that in with that National an in after, with strong going

So opportunity going all across channels all brands forward. and

the about deployment sale? proceeds Obviously, progress talk come But you can you just that from the of benefit haven't the we seen of and movement. out -- any outside, think that on sale? about how And then the

this Jimmy, Jesse. is

the the process, are divestiture. to pursuit on So of say the as progressing I would as relates expected things it

large the quality ago, of intention pursue we announced strategic You'll on buyers there day. both expect, interest And robust the to about X potential the sale almost remember a was you to as months from might financial. and group

on potential complex point, is confident and with to business diligence buyers stay rationale some process. a and business with the large sale. we sees a potential the the At involved this selecting so aligned time be buyer we're right to So we're that a to the takes in progressing, how process for the the in same do our strategic in that pleased position is we'll that select in

So we soon at you obviously, have as definitive as details and And we the know offer said. in divestiture more we continue a we'll as all let to pursue agreement that place time.

let a make it the it of came came night. up the comment Jim, about since -- capital number at me mentioned you last a analyst write-ups up that

market. math, we highly a made with more enterprise that of with it's pointed the how I out. great is to So it, made things than in to do up it's first, capitalized. and it kind would up of to homeowners say capital. and harvest we're very embedded say this of couple over think We've of have local that's sophisticated couple look think all from in people that math. we to somebody decisions the additional last consistently And also it right risk We would benefits would utilization, insurance our believe else Jesse well strategy the shown with.it. When are at those as a return we a could buying reinsurance point we way like health who I capital a can Obviously, in the free value, do We're divestiture that interested because price you business years. but doing in been

we're people alternatives. surplus have we sometimes premium than the on sophisticated And what a the do wide looking and value. confuses we look impact we think economically of some So ratios. But math is when at impact really what like when more things is I that, at shareholder that range

said, mentioned, that there. our First really increased businesses, as -- protection It's share drive that, in you repurchase, auto asked will of And share I at. in plan earnings. opportunities the well, think first organic thing we that given of people stock we look number growth, best another without valuation we good high the returns repurchases. After get returns a the about home

billion outstanding. you we -- stock is since of of We've back a back stock, shares know, as we've which lot almost bought bought of went we worth $XX public XX%

that's about If you last look shares XX $XX billion, the about you about the billion. X over it's of X/X shares and years, look $XX half the over years, and

market. It on no aversion Of what what of and When well, time at. bought you it to to cost to have you're at it what day it it's like is the kind range, we that. course, that? to we in looks XX% marking of capital. what you return say, depends on like XX% So of get look do low you depending it look price Today, on it tends period point,

we return, benefits one that shareholders. So that's a good think

not On good at those the from we as which other it deploying get hand, in businesses. it's as

have portfolio. bunch growth other of getting investment at. equity whole deploying believe a the we is We So allocation we and why that we increase could look things

didn't We As About XX%, is money. places We're We dial to liquid, thought hang and could hedge ups we over we a and downs level better we've bimodal ever we had like illiquid. been want told put there. securities. it we to And approach to because to the the the we've fund, up down XX% decide not we're at trying liquid -- it's a risk but in did equity lowest you, in on return. we we're be have we there.

new Sometimes Arity. opportunity capabilities, in we put money

and got they advertising. pricing just data. We're of people who our now miles expanding people over you pricing a trillion X.X be week. customers we've before to look become which at getting $X If Arity, more makes from efficient in We're customers, you billion driving are marketing that

companies. acquire we Sometimes

our double at paid you National and we we $X.X billion, just its I like for XXx size it -- it's and General, plans billion. look business, look bought if like think that's So size. protection at its $X.X We

make pick the value out out are greater there recently at confident So business we grow did how risk, of the our -- got it faster we're harvesting right figure to that protection well haven't and we yet, as more but done money. people identity

at. So we a have that look opportunities bunch we whole of

should So sure to if an default we're for easy I money communicating and hard. repurchases. people. share don't then just extra analysis falls automatically think We'll do got think right the into No, about shareholders, you to with the make do you we'll thing something it we'll that

our question next of line the from comes Cowen. from And Kligerman Andrew TD

Yes, pivoting it the like right year-over-year. corner seems X.X% your is of PIF growth only down around

So look Historically, I'm wondering your was on back on I 'XX, brand Allstate ratio if expense XXXX the to at advertising X.X%. X.X%. it was roughly

First to of there a there ad question, terms is you do of you're So is like Or much to campaigns? go level need your in you feel at be? kind where

I'll an and in fashion talk to the growth. drive Mario really going how he's reorganizing to market let business integrated about

it advertising just acquisition. improving got sophistication growth out point like one as there other key of was customer well. transformative to we've As of will our their give numbers because out components don't the advertising, to we What I those people doing relates is out of

Mario, effective. what you're is more matter you should go-to-market. it we But no So percentage to it your how want maybe changing about be talk

Yes. Thanks start. where Andrew. guess I the for I question,

begin news, the pointed And now, and achieving we of investing point, your rate we grow. began in in as restrictions. marketing out, to First, about XX% to to underwriting states look the unwind right operate in the adequacy. more to in, we've good more are And as states presentation

the call local can kind teams are exists across continuing but distribution the thing that are identification that opportunity, organizing the we're at expand, highest we're other making, what again, capture being in to channels done get bottoms-up we've return and of market focused market as we level in that intended expansion, marketing so as investments only the ourselves the that that really in things continued possible local opportunity like up opportunity, is to states. The go-to-market we well of drive growth there, anticipation those not on

So organization market. to in that, more manage days market by we're And behind by structure be are we state, this state business but putting local you focused remember, on growth. we early market our

that market going will local growth in insight, really making intelligence forward. to having expanded create to significant the capture ability we we're And So be us alongside and opportunities rapidly for growth, investment going move think the critical. to opportunity is

And works we time. that it know it a for we've because long used

So we expanding ago mode, it what we're back -- dismantled now cutting X we know grow. just about that were And of or some want when into to growth X didn't we works. and we're years expenses that

then trying That's to helpful. to And How my more regard book much big are just The arms CustomXXX or with is to versus CustomXXXs. second the agents around, standard potential growth those very General, of relatively traditional question now the the very nonstandard right the National And small. get the much more there? how on time products? generate right growth

in, to we it's be Mario, in National capabilities which out the and preferred give but turning then you we wouldn't company. the want maybe insurance, you're our out about to when home we Well, was it for And correct. and CustomXXX. each, called with auto is having success opportunity And true. that strategic -- bought talk percentage you're bought General, it mostly nonstandard a that's leverage to

Yes.

of we're of all, National General. really acquisition I I'd first is, Andrew, the the with happy place start So guess

really legacy effectively which bought As XXXX. the into we it biggest with piece, product end intent business what the business. component. of is year household or Encompass that with we the expand this an our CustomXXX. And the There's the doubled early built And mentioned, call itself growth represents into think in Auto, about the opportunity. then and along the Standard to business, it Allstate is every there's pretty integrated home new in we've then The General CustomXXX XX much National states we the state which far of there's by the legacy Preferred the there's And by agent business we chassis. size is think product Tom currently auto And product since on that is to offering into independent really about offering. XXXX. our additive the X And nonstandard We're pieces business.

auto in preferred that sophisticated home Allstate, product we So Allstate. think have that have we and plans standard the the about host and rating in in

channel. those stages. different independent to we're we're that are with the in point, product really launching And your grow distribution, products to engage system independent that the agent We're agent So of that looking different the segment distribution a portfolio. really, a early there's to

opportunity we're the We're the that on that more we're and we're really nonstandard auto early seeing IA encouraged we've expand that to states As continue agency but I and the leverage we're said, look to engagement IA in side. the channel. and XX rolled that the We're really states. forward, going going beyond by to out optimistic seeing on the importantly, in and CustomXXX growth around

question comes James. from Raymond of line And next Gregory the Peters our from

for to So have the the at thinking trends you I'd first quarter like frequency severity, both through of sort question, about Allstate NatGen. how inside frequency severity just on both first XXXX, for also and you're the and brand comment and

off This with loss Thanks, shows Slide going quarter. X.X%. I'm -- the expense some is showed the that the of underlying Mario. the Greg. really saw to comments X trend average starts about which in make presentation, -- number is slide in off and the we we that you That

drops by If component, out expense it over X you take point. the

in the and the So loss trend that's both frequency and I'd the mid-Xs, in seeing severity. up protection made say we're of business

relative to component of frequency given was indicated, is we severity. other And As favorable. just the weather the year, then it last milder

in But X physical underneath broadly to of a favorable increasing and continue increase color little of terms continuing offset Total and frequency because severity. the severity rate to damage But more labor loss severity made So to than of it severity it's, cost different bit by things moderate both seeing. Maybe in like to that in continues higher cars, emerging parts stories drop. benefit is I'd we're see there's say, really, car continually fixed costs. to continues we And injury. physical prices that's more up damage, used of lower the prices. and of

The moderated. The to medical treatments, and broadening running things our that consumption, at bode frequency level to stay vehicles, positive which -- yet. driven was resulting for higher severity damage side, continues that severity lower and to states which by we've profitability last kind ongoing fully injury seen Allstate not of higher seeing and the we've top just cost more I translating levels sure year, severity. than in continue weather why inflation. consumers will General. up reflect forward. representation where they It's to at forward. is into which we've but for in starting going levels. make hard been in still that is impacts severity we rates some of in same states continue states going that insurance been also both the well would our with achieved trends that we're repairable target be but about, running, obviously, going trends real the being favorable, a -- reform ultimately. going fact in pricing to we what that been continue pressure talking than before. positive state to also a pursue to higher customers Florida, it at sued positive increasing for consumers positive consumers. I'd tort be So that's and beyond pace reform, and out for strong levels, to degree run they just to passed driven and consumers your precision forward. Georgia National is tort for loss has And putting going we're cost more on But get Georgia with the think loss levels any a in and can have where across passed medical of lot like of question, have a which, the increase at claims reform, of keep it tort physical historical the worth, are rates of but the settle for meaningful injury haven't It's reopened with the by the proponent pressure offset to rate was prices of that repairable attorney growth on quantify see the some legislature brand again, that That quarter, Greg, reform, That's we're true point And

us fourth they quarter, you're conjunction to you because going you of mentioned York that I kind as And rate Jersey in to X up I were And you even reported believe X you've you question now the I still New and to presentations, pricing rate mark back answer, period. were called you you're know you I adequate previous updates know that rate. want that leads there brought going New think updates are you still states. states that that out been to with forward guess after in go Has there well? too not if on us give provide some in those adequate. --

not go X it I it. we doing, focused -- so decided like because Mario We states, adequate every you burden didn't to don't We're don't think worry -- get to want sending out say give we to to on and let month you drill, needed you what month. I'll didn't know we into do need we're we're it. just to we it. We clarify. don't but We to every think always very about just people the

late to auto increase, Mario. quarter. we're Greg, of and will of pending. and don't states. this like effective on we is, York that be California still year. We had we've the to we more increases New We're the just fourth auto The recently rate California, you XX.X% want all of one those underwriting one had X in got rate past the was more give little really need quarter comfortable reopened New those Remember, That you you a California to our still those feel New going grow of update an color change Jersey which for in filings rate rate I'd approved year. level feel half in states we no I'll two only is the second rate underwriting in in would with not we're at states. pending the this give it's new terms ongoing beyond lifted in level approval look business. that's two restrictions York, report we the a we And states, of with last really any New that at in we in that we around conversations the rate increase, in department, rate implemented to point. quarter, this but and reopen the the where rate new with last Yes, before to appropriate approvals market. a in on X -- got that told In those nothing appetite, place. And In just having have states. increases risk the for even of have of particular, we we Jersey those

next question comes from our of line Bob Morgan And from the Jian Huang Stanley.

rates? else everyone states, anywhere the need to know like combined those continue PIF for growth to other -- the are if the where XX% Slide comparing states, rates back your if your to that raise significantly we there you other going states -- I you peers, Jersey, are York, customers in else? are to New New any about talked do loss look you ratio words, at and in have just to those were you X, ratio, And Maybe in large above California, reasonably states that is above go? rates but Or

Well, complicated question. a that's

it. I if see can Let's address

it. severities the states, all in way described Mario have when going So up you

levels what You're rate. going is above the at rates to be increasing general inflation

to So so and If some. we rate then back -- off every that. do maybe they get continue it will up. we're have customers to to quick sued moving access, our always time expect an But

difficult reducing it. competitive than into here said, how started this how auto any determine up to business, ago moving cost, of where in competitive everyone has You're really I is lower just how we of was so expenses and confident XX% now your and blip is books it's in lot, with the last -- but in whatever same is will X as raising when through this where not including more is out, It's a also individual rapidly years end transformative lower, given a pointed our to us, prices slightly that X position state rates one's the position. And each are right given in -- where it's moving think they're in by competitive place. alone, we're get position that Mario trends it growth years. Homeowners

the not confident the we we so but part technology an that making So that will Price grow. rate distribution is to set the grow. -- product on not agents that focused take offering enable the we of sure we're that. broad us important of to clearly we feel we're we're we have, have, going competitive, have, And can

run picked losses us. couple State almost big our they last fairly to a One because be over up of competitors, couple that underwriting years market points share of of chose the of large Farm's won't

at curious, are Jersey, New very relatively other just there time? of But That's this Okay. California, large point in helpful. need where outside states York, you New any still rate

those good and opportunity, said combined where growth adequacy of a positioned on kind we But continue states on section to in incremental yet. those together, those we're of states. stay to decisions the New couple going we're those the X Like states: we and are then both in feel about about X/X when mentioned the that that dark at rate No. California, bar go of Jersey. and we light a versus because that Again, if of rate are the And times, to the you ones the that top on top blue we're vast the the base margins that and ratio. And unwinding majority Page York back through restrictions XX%, the not backward-looking add you kind top loss we New we're trend in is the push blue, target to -- states. as talked the that X of you of the underwriting going right, about

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

a My ratio. just first the auto auto. right, past, I for the the quarter general, not first be would in we thought increases as the QX can better I the then there earn question in sure the loss in on year. kind favorable but guess it's that can of go is I'm mask non-cat that more through And seasonally if understanding weather on an some also underlying was quarter in maybe numbers. book rate

rate cadence consider? would factors expect the there loss earn improve seasonality to that the of to sense a auto go you ratio other us through year given is give you on the some we underlying need within or as Or can in? to just we the So

Mario, jump and you in. start, can me Let

not you're to summer much like quarter insurance -- auto other what would quarters we we do difficult it would up look be is than but better with [indiscernible] combined ratio versus the with consumption. say precision. I to come really try weather at numbers To when It's and the that first quarter everybody First, be don't current not when able public of in for this they're and sustainable sort quarter how we numbers, correct driving. months usually is that in is a that of it attribution in any get and

trend What auto I really would say in insurance the is about we profitability. good feel

down environment. accept through. As try lot sure We're you just more and to We've over Make, our coming high out, inflationary point to gotten single we a expenses. deal control a rates we high go digits. have still that good they keep on not at working got costs hard up claims with to

like I in I the that, a know some we one x least makes trend quarter to to Mario, good don't I this was say, add about quarter first just that percent would feel due you at anything [indiscernible]. feel trend, really So that? would

Yes.

are actions premium -- you and a only first continually bit is are handful the you're ratio Number I XX frequency of we've the of quantify. earlier going X.X over things. the give see I'd That's based weather right piece is other to little you to book, one, can't year. points that last going points and where and how mentioned guidance That's improving do took far. I not to continue that, clearly the difficult duration trend out The we the the there you plays running the I to What loss the forward. on in loss think, over the going earn year got -- a we a through know component rate average going we of to talked the benefit another about growth going forward. of give And was taken components just continue ones. I'm we'll to earned see Elyse, while that on quarter. so

the cost and the then the going help expenses going where the will may trend or we're So in forward. seasonality and we're would earned system, loss out on trend, of to watch exists. components continue that perspective. about we just addition may is to persist the be premium QX going margin benefit to That the good only of thing which obviously not feel drive going frequency to to both push a hard from also But

And of the that on perhaps Benefits back your one confirm, then to comments buy this of your like can the think conversations of transaction, close and guess, my I is entirety the just And on with based multiple. prior transaction well comments the and to expect find then second just sounds one going to that as right, instead It the you're down implied earlier there the counterparty counterparty you plan I Health But that's to to announce year? question, still business? route question, a to parties. going maybe thought you was

sell think we'll year. interested it a still we lot going to A through process, in made go of business, We're are It's [indiscernible] Elyse. normal it. We the confident people this choice. right not the we're and

of question next Yaron line from comes the from our Jefferies. Kinar And

I deeper into little of Most did my I a PIF to the asked, in want but questions could, there. have growth if been dig NatGen,

actually same the the result may two us combined. in can we Maybe a growth. have understand of maybe time, which nonstandard I you that growth? competitive pressures auto, further help decrease a bit At also little in see segment's think drive So in rising should some CustomXXX the that through you

it. I think We're as business Mario in, it a I not us. me jump probably just really The if I'm jump we but about, referring I I'll good it is really you're let attractive kind focus mentioned let at should, is numbers. Klauber's which business state. homeowners. let But think much for gets homeowners on sure as in Mario talk know I'll to something, of

over industry agents, what call it's in in trends, of just business integrated great why slide about increased demographic of And they through a showed today. look would severe markets that lot or a at where dynamics it. And you people right the A severe there's is of us right, the industry There's that the are independent first agents way -- earned half an home dynamics moving whether having a is, see or combined XX-year values, when ratio weather weather. we have We business that's The can we've model Mario leverage that are availability. in independent interest position. where customer period. XX call increasing, inflation and whether sold to that risks you is for this

need time, And the money. the lost there's risks. has same increased at then So for industry

X last X it XX of years, So made the money. X/X the industry last money that but last money over made we the years, lost over about years,

and XX% So period, made the industry billion we made about $XX of a over about XX-year that.

So we're really good at it.

one to leveraging so grow And channel of independent homeowners. we by is ways think agent in there that the the is our

in obviously the agent can we homeowners in Allstate channel. grow So

so always you the which see better You bundling our when case. of much together, we've that auto bundling wasn't really down, PIF They you even going the bundling. industry the at there good used see stuff, look more there. And at at to growth is any got reports, growth trend we're but whether

about channel growth, relates the the in want to both that's homeowners that. to on General and the talk don't you Allstate Mario, I as -- want to floor, So leave National it cutting-room channel. do

Yaron. that nonstandard allowed able business for ago, not and into to particularly National we've several where get us. And well-run Thanks way. a when I it meaningful at And we was for us a really profitably. been question, it in grow the that that business years aggressively start is grow Allstate in a General pretty business to NatGen auto Yes. is the Look, acquired time

Over the last several years.

Some to we're expand we in lot of states now is when geographically, with been than auto we've more able we've a expanded business. so the ways bought nonstandard the

direct perspective, We've outside risk sell appetite. auto We from channel National General to also a it to Allstate that's expanded Allstate's allow agents consumer. through nonstandard for of we business sell

subject expand across need. a top the believe, last has same over that as business, subject been XX business well the But standard lot of XX and to last of the the We've So preferred both able to inflationary points business rate channels. And been I the we've of we've stayed years, geographically pressures auto in has taken the been to. months. rate over on as couple

business period, top competitive every able years, So the need. given of take Tom and It's on we homeowners advantage dislocation the advantage have policy a almost of might we've nonstandard from really the book heating taken that can business the most preferred effectively you much number carriers of the capabilities deflection just look as with and off we've that going stayed the there, to, continue feel And that capabilities, a reprice rate as auto advantage backed couple about of talked opportunity last to of that of rates. in over of that in as about our that as space. leveraging as taking and good by we're standard CustomXXX. competition our business. We've to be And up the grow well been to

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

on just the a had brand I auto question PIF.

to brand PIF how wondering you auto the brand guys of part guess are X, fourth I'm entire wondering now guess book, the the auto was in So that at XX% book. fourth I target margins Slide trended you book? And the And PIF about book the down the for versus growing of X.X% that is the compared I'm quarter. I PIF quarter on is how. showed growth that in the that entire

it. you those for break math competitive numbers When do enough, could reasons. on big out so David, wouldn't We it's

in So are come. there We say is markets, growing you markets, obviously, we're in. here's some could it. But churn the going to would growing say, okay, not other when we're

markets. of are Some those

where can then of figure when going we because what the higher to get show them to in I you are to aware competitors And rather when others you in show going turn want math totally where without Some growing you don't to know were of rates do get we those to out like those having where be I interested states. point is. When get at you're -- we'd states. grow than -- they we're because our the the states growing. But

No, was a It worth anyway. understood. shot

question, productivity. just the another on Just agent

looked up agent You York, about Or gave how Did a New potential that some this X% the quarter. that think just how interesting was California, New stats Jersey. as driver? excluding wondering productivity just last I'm growth productivity quarter to significantly? improve that

and go get question. up Mario to transformative about me growth Let to specifics your the of talk

customer for them It for value. as do agents meant that, And includes they part as improve of they we they transformative much growth, pay they new we really necessarily insurance. there when doesn't will that retention. They them that to but really having were to getting our get buy bill So want to said those them, won't focus business. them want on pay to which there for as a pay will customers have helping include things to when for

it shifted move customers cost to to want what our So pay we for customers lower and our better to program for. align compensation with

word business agents expense As we we've models higher built a had retention -- result and distribution [indiscernible]. on that, some of had had who lowered both the

capacity are not That productivity be even those states better been that you volume agent our gone point, So our so said, X up, has to when down. overall gone has for named. brand to overall your has in the adjust Allstate and

want do Mario, you there? So go to

for Thanks the Yes. question.

is you So And and the at direct. Allstate I up New about California effective think We was is York yes. wasn't in the have Jersey. -- up exclusive X.X%. brand remember, agent California, the both Allstate kind when rate as New then well February. as out overall you Because business to if channel look you new carve It to your until question of short answer production

have really increasing back the fact drive pleased changes our up. the and businesses, production the that So and about that in of part continuing to until with or how of absolute productivity. restricting states. Overall the latter in didn't quarter. We're despite we invest responding been we average continue are agents start significant to agents -- we've talked the made And things really levels is is up pretty productivity opening Tom their grown have higher fewer restricted to have X really

levels direct to of our going core look prospectively agents of how we as grow productivity forward, a with talking in been And So to be we independent we're accelerate channel. about really to going the and with they're growth happy things the we've agents. part addition

question. more one take We'll

Zaremski comes from final BMO. for today the Certainly. from line And question of our Mike

a expertise. just guess there's your the channel lower, average expense the my kind the I I'm about I strategy help current transformed customer. know you ratio has should direct-to-consumer been lot of specifically. has ton a different I kind And But understanding customer, direct-to-consumer talk Allstate curious, clear -- And Allstate of bit which marketing successfully of is been guys know just grow a of growth. have than

about you'd -- to you you So of is are there? Or should or be kind any there strategies think -- just like grow to or into -- we anything you thinking as of there maybe DC? different kind go learn slow

Yes.

does customer the -- different have direct first The needs.

for Allstate-branded So trying to ways brand, want do interact insurance, buy to Allstate price direct with what cheaper have an the to we help Because why to insurance we're is someone bought us. agent. customers they through They pay than our exactly necessarily insurance which them under also different want. they want our

And you prepopulated the presents the required to to into it so our really everything and from tech we've thing with growth to. the -- it's what's new stack, new Transformer offers questions

products, costs. about, add As lowers that increase time. been so We've and Mario more in products we're things which and acquisition XX% down our sell able services flow other to like roadside to talked the

it. is be good it, it we at better could We're at So different.

some better are then the business, getting put About market reformed we at updating technology everything about really to working and place years I it. to. we're in so you also from And ago, the new at leadership who talked X

of get So to people direct, all don't to. the they're Like time, are as all lower directly, you but shopping will shop drivers as the mentioned to drivers much. then customers higher time you they some because where risk shop go opposed if you risk you go that's who

the So lower get it to risk drivers board. more costs on

want what working whether We those going not plans we're the just home that. who or has it us expand do to We So through we doing in. things direct channel with stuff it's that commercial that customers insurance, way how upside believe space with serve protection and the tremendous on but like we're direct. some insurance auto get on in

it's people over homeowners we we not customer Often We'll lot successful would believe sold are. see how can. another we think So the is of just way a I interact. mean, buy I houses direct. -- direct.

your a insurance buyouts if from buy like home us. So probably or

upside. great a so And there's

you years, last that notice look new One first the over of dialed places when the channel. we in will couple was direct the down business You of

XX%, something. So in I it down think or or was like 'XX XX%

a be is agents Because spread gave it we force side agent now channel trying build a business for amongst concentrate to reduction in the we new to the okay, to to comp who hitting us a businesses this to plan. than the is new levels us easier this our also we're get turned choice. make said, comes good to it's We compensation maintained opportunity And expanding temporary are out gas It revenue That a window capabilities. direct in new now of wanted direct. bunch and through it business. is of that they because the well, sure right that have their into

is higher expect go your We'll than of Allstate. you should new as volume percentage a and quarter. you up in it Thank So us time to you investing see business to all next direct in our joining past. better the for has talk

This concludes call. the investor

can You disconnect. day. now Good