Root (ROOT) 6 May 212021 Q1 Earnings call transcript

Company Profile

Participants

Alexander Timm	executive
Daniel Rosenthal	executive
Michael Phillips	analyst
Ross Sandler	analyst
Yaron Kinar	analyst
Phil Stefano	analyst
David Motemaden	analyst
Matthew Carletti	analyst
Elyse Greenspan	analyst
Joshua Shanker	analyst
Brian Meredith	analyst
Joshua Siegler	analyst
Ryan Tunis	analyst
Robert Zeller	analyst

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Root, Inc.

First Quarter 2021 Earnings Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Joe Laroche, Director of Investor Relations. Thank you.

begin. may You

Joe Laroche

Co-Founder thank letter hosting and XXXX joining today. Root Alex us results. Chief Dan Good Officer. Last its Financial call you financial to is evening, Timm, are call this on a quarter CEO; discuss Root and Participating Rosenthal, shareholder morning, issued today's for and announcing its earnings first results.

Commission. our items our annual ended be filed for to a you information about with financial While for we ended document, to Exchange on the this report the XXXX, more December and report that Form read call Form Securities XX-K XX, quarter the discussed within XX-Q for XX, will our encourage performance, reflect on also year March complete quarterly XXXX, and

assumptions. of remind performance, financial on our Please to and information are note Before that of matters of include management's and as no may a want that current will call call, new which begin, revise discussed goals we this operating statements the today's I obligation this occur. related our result beliefs based forward-looking reflect undertake to as you business outlook, opinions to that and developments these on forward-looking statements we date

are could to other today. those from statements results uncertainties to materially factors risks cause and Forward-looking subject various that differ actual described our expected and

risks number In may significantly that addition, our a impact and we of subject results. are business financial to

be you well while conference our the evening. you of during factors, this see measures company's available cause under remind the Investor description differ to we would also reviewing released risk A ended as the XX-K of please some that Root's our discuss detailed factors non-GAAP call letter section. I yesterday Relations on call, will XX, shareholder like the more website statements from our of these replay will to performance. results that a December will our a where as materially review year For actual for discussion XXXX, could Form

the and historic nearest the filings website letter call posted CEO. the Root's shareholder will the and with measures can find now turn our measure to those are reconciliation the to of Timm, our Co-Founder Alex on You ir.joinroot.com. I at which non-GAAP in comparable GAAP over SEC,

Alexander Timm

I'll and Thanks, On data context efficiency. insights improve I'll additional and call, how talk today's increasingly our advantage QX be we around operations providing to Joe. share Root's are growth drive science I'll into leveraging also customers, QX deep turn profitability. over about Then elevating our financials creating how our competitors. deliver call we're experience dive path separation the into and to the a for Dan I'll we from sustained to further to performance.

the first quarter. time contribution. did this was in direct For a $XXX while premiums million This over ever, of generated year-over-year increase. And written XX% in $XX a direct we million delivering Root

This by improvements no execution. was driven primarily profitability accident. in increase our loss disciplined, Our focused direct the It was is ratio. in result of

the this World mandated As build a the our entirely and founded creating disrupt $XXX Root of improving insurance industry increasingly in our all billion datasets, highly advanced we economics more company predictive better founded creating dominated algorithms, the By enabling to is belief we and an for bias product and Driving have consumers. from We this ground own were based prices technology are who our is to the work eliminating prices can based lower Root, II. At discrimination Keep better and unit create built experiences War technology learning. at insurance up for on data an industry. by consumers. by continue our government. and machine predictive commitment on that we auto before competitors, we mind, fundamentally algorithms,

product the process fast. by is response and fastest moment the So for specifically our powered consumers platform what mobile of QX. our the biggest an customers that experience. This claims makes delivered turnaround offers makes claims we claims system easy The times that of times and for means the industry. proprietary is in in claims automation insurance this Root double-click let me truth on one what in

us fully And our want and that people delivering to claims a be notifying half We customers. If enables on XXXX an the of between competitors. all to are to reduced accident to days fairly in treated beginning autonomous cash of our to of to way estimate life. deserve put have time time our hands taught work our the seconds. us we our anything, customers customer experience in of aspects from This well and us the in the it's

that as use advocacy perpetuates. We QX, we these from bias a on leaders a year, efforts detailed rating report that credit industry initiative, and We have of we called a the score upon consumers bias and groups the of using to The the toward comes removing And the a doubled-down industry see in unique experiences Drop with address and the we kicking announced align variable. of sense work are increasingly commissioners, and to out is state a shift. Washington from bias, our state call bright right. the light against on score Score of ruled And releasing away values credit score credit Root that industry off state keep leaning what's and products the brands, has on of To request arc to ability giants' both. injustice beginning insurance public choosing recently of issue. own that toward a to change price reliance credit to variable. fairness. The on and the grassroots today their industry rating campaign inherent last in and the In put consumers as tide score a to industry world this, the know evolve we're credit educating

ago, few Association credit-based Commissioners of scores. National insurance discriminatory a racially Insurance the use Just address weeks the advocacy to asked groups XX of

of measuring with risk this ways shaking As will of other clear the swell industry support it's that win. grows, for change those

us Our so. firmly data positions science leads to do

control everything science this at investors, putting engineering and turn hands Dan. the we I'm team while expertise products long-term the continued over in for fuel the we of to data do our We'll of growth As the sustainable thankful back prices, drive continue better consumer, will and I'll profit. our build to into we continue that, applying call through customers. With and to our our support do. better

Daniel Rosenthal

Thanks, Alex, good everyone. and morning,

first how was proud both ground profitability successful and a hit we are of the our The quarter XXXX growth really one our measures, running. across of and team

GAAP full results are our evening in the we shareholder published find here contained will You highlights. and yesterday letter financial some

This due contribution above Also, loss period for particularly to QX. a written $XXX a ratio quarter, business, really growth of the sequential million approximately was $XX to may April development, improvement that I the first impact year-over-year been ratio Adjusting timing accident against XXXX have XX-point QX to XX% we our key from earned strong, represents accident XX% profitability, believe contribution, as of related a driven The and XX% in March above. our $XXX improvement government Direct loss including On quarter. to some premium prior pulled year-over-year of the quarter increased premium profitability of improvement result for the million loss and grew line, primarily loss the direct was and top million, premium the covered a was XX% direct growth, million. Shifting as noise quarter, written direct period million was $XXX by the the XXXX. direct we improvement from direct contribution million. May $XX QX earned over demand direct for direct big removing of XX%, X-point forward from the stimulus. XXXX, totaled for in year-over-year pandemic. Direct impacting development, to XX% $XX the the of a premium year was first QX direct prior for XXXX. favorable also primarily of metric ratio

are seasonally out momentum return tends stimulus our That to impact fueled And created providing goals. marketing work first us, great shopping. of stronger environment to growth The and for be demand. towards the quarter car customers has a as

the spend a business state profile Invest our to and end, To long-term As of our our can CAC we're heavily acquisition the of Alex QX we results, mentioned, we customer loss the intact. QX. has and significantly investing call while our to in QX over approach ratio mentioned our ensure that build on Test continued keeping continued contributed broader scale to activity that set channels. We management in this acquisition

ratio. seasoned are better We seasoned along completed adjusting we at a business expansion portfolio. state premiums in filings. seasoned X Team our of pricing premiums earned successfully sequentially level, drove managing management the In additional the seasoned states portfolio and with investment loss in This a to where state quarter, QX state added XX% to an The targeted necessary.

writing markets, existing step in states. have So a now required operate Licensure for in XX now good pricing at licenses states. new is of and expanding hard to the the momentum product, our the process into work policies, first models quarter, We lot states. and and we're the we are we have and to necessary filing multiple forms in our first of in challenging

X, new reinsurance we in our partners, to names. We manage treaty months. We you capital as run By includes able on successfully coming placed will were me on is multiyear end, to components alignment that I terms have reinsurance our more direct panel that also attain with business To we line a well am on to April all which shifting guidance on and and a a share the by with current of that call. building pleased it's the few basis, here the the to team progress our with relationships my better we the announce of business. QX and reinsurance in better date provided as a

a about key strength as We our breadth reinsurance programs and capital of of are they excited the component structure. remain

demand we the solid accident We what quarter. right of advantage period ratio. direct in contribution and loss and we in first improvement grew We our are way, a the business environment accomplished strong by very taking encouraged delivered

our is your delivering shared. With results expectations to not laser-focused have QX and business Our and That a model does look that forward said, X year that make, on demonstrate questions. remains I Alex working. we our the that, team quarter

Operator

Your Michael Phillips question first Stanley. Instructions] with from Morgan is [Operator

Michael Phillips

Dan to sure understand just comments I Alex, as last and quarter. just I make want quarter compared to this

it to your quarter, semantics you want focus wanted what it I'm but might national quarter, to was states and licensed way new in that a think Is in licensed thinking states on where state, a that was starting every a is just -- this in. model few confident Is to the forms or go expansion about there have getting roll like can those that just in a you're XX now on said, launching bit okay. and licenses you slowdown difference? launch in out that of new plan. almost it Last simply go? be I it Or And you make of out was -- sure. to and states, model it newer proven I new you've in felt and ready every in But you're now XX the pricing you and the states?

Daniel Rosenthal

This thanks No. We've for the Dan, Mike. got question. you, and is

is in be on from process. call. the nothing able And talked that's in with And our answer, positive work advanced know, that that the as product what XX are of utilized forms means in filing actively is now in market as call. is of is in and QX night So Mike, that secure on all now. telematics that to you us, Root states short writing said, we about as QX the X different to several our and for The last line what talked the we our pricing step And and we and to of have the Shell in, begin put disclosing we entity policies. the licenses about all what that is we are models the states, process we

Michael Phillips

Good. Okay.

newer that now when have of model what do in states? in So you're pricing the is expand new models into you forms it of that filing you were say means you last the and process that quarter that quarter this you to the several states, and -- confidence that saying in

Daniel Rosenthal

Absolutely. That's right.

don't It's that have something the years. of a control deeply process. invested you part the the know, regulators. As we necessary It's in we over

conversations NAIC. not in in Alex process are a have the And we wonderful an in those actively of is a regulatory Head still writing where Regulatory as in but process We Relations, you well, actuary, which, unique, state. states that the helps it's as of who's is engaged each are yet policies. himself quite know, former the President we

Michael Phillips

Okay.

question second just The comments. is then on

second of want X on before, is, one What here we if those, are this marketing for better your about listed margins driving this does but you on or more good You reasons why focus that? that I marketing can can, X are different maybe the a quarter. How characteristics? targeted talked How improved characteristics. and to improving drill focus better I doing initiatives your -- you mean? into to targeting for down you targeted

Alexander Timm

of is that Absolutely. we're the in channels. It's mix more the marketing platforms And has and more to make the customers. models more our as the comes ratio has really through time. allowed put those fine-tune that focused we've a right leverage business inside we to loss to the our channels and a more all we've which good and of ability book sure and more our those at across And on us rich right gotten data question. What data order to lower us of that platforms preferred right data, have marketing digital those toward grown, allowed of skew showing customer ad and marketing the toward to is effectively science

Operator

question with Barclays. Ross from next Your is Sandler

Ross Sandler

I'll growth. leave the to insurance question but experts, questions just about had the a

auto the marketing that of your efficiency just getting. PIF nice mentioned up sequentially. was pretty And some So you you're

turned how there? we that do going retention that? are net how rates talk forward? expect rates, the should retention kind the sequential about then corner, the and we you Have of improvement about trending? we And So adds Any can think on

Daniel Rosenthal

This Ross. Thanks, Dan. is

PIF, on we about have line everything first, on calls. prior with think So what talked in is I

with mentioned gave we are on the executing year, and I with additional line for into prior drive guidance plan focused line well. earlier. quarters first prior We're And states as by rest growth the PIF direct the growth will all of our that this moving that retention growth on of as our the the in written year. We quarter. We're calls. Similarly, in premium rates we are focused in saw encouraged on later that

talked you'll As pay we've And as retention. we talked about, Ross, strategies that you time, are on in loss that for with we same -- to enhancing at multiple you're new growth up it but influx show to expect as see time, and numbers, have happen. about, off that, the deploying writings know, we you're seeing strategies an will of our the focused And ratio. the associated those see going takes impact

over we out headwinds on ratio associated have the what with ratio call continue playing net-net we year to will loss with QX the these you the see and loss about that the course So tailwinds consistent show of talked that improvement.

Operator

with Your next Sachs. question Goldman is from Yaron Kinar

Yaron Kinar

this come that still are First shopping you pull some actually into intact? of the you the result you to you -- Do question, forward year in do I do April-May expectations put quarter? that your the Or expect think the could then behavior guess, differently, next of in think in ahead outlook? quarter. Or slowdown full

Daniel Rosenthal

Yaron. Thanks,

providing quarterly we've not know, habit of you As made clear the guidance. in we're

So in QX. I'm on not versus going to QX too focus much

demand we believe, March, April of a forward mentioned, stimulus. pull and from you the part associated into with in see government did as Although, we May,

is model provided the our annual path just that we'll, the The something a And we an focused the our done we're before, here, that guidance course, been outlook, plan, X with never know, as something from you. we're by know business disruptive what that first working. XXXX on quarter consistent our But guidance results. removed come in first update, doing We expectations. executing exceeded than quarter if as February. little writing and and to encouraged the we policy, on has ago. The more X is back year of far you months issued changes we're As our years from warrants

Yaron Kinar

percentage any you continued premiums premiums may realize move of end there XX% but we directionally, earned of considering a would talking a quantify about see it saw to nice the of ends that are growth? as are earned this Okay. move And or appreciated. the that to you there maybe or the -- us can up of I book, there we little be bit help where book, XX% of think the accelerate help kind clearly at book, a to maybe total of much that of quarter. up is offer you the trying try XX% pressure, seasoned Can XXXX,

Daniel Rosenthal

Yaron. Thanks,

are states with that investment around less you're just with regulators about that I show put line I with it growth, work Part able the will so goal our we will our -- states and sustainable, into of our quickly be or get seasoned trend pricing working can and they have think uncertainty all our we're in more seasoned to of that in will with of to is market, repeatable seeing to that yet happen where our our see ultimately continue. course, will the talked how continue states on models how is to market. states. states is We've expect the consistent telematics become states models Because, we not that, that seasoned that before, that growth up. as seasoned you focused regulators seasoned, into become as

Yaron Kinar

Got there? try sneak X to development, drove if it. just in can talk about I I'll maybe Prior you more, may. release the what year

Daniel Rosenthal

was Yaron, Yes. particularly, of tied work trends team, injury It's particularly year looking claims, and to fiscal bodily as our continued development at you expect reserving different by most just, XXXX. would of and it

Operator

Bank. from [Operator is And Stefano with Instructions] question Deutsche Phil your next

Phil Stefano

reinsurance I Dan, update the on treaty renewal. the appreciate

What the how participants? conversations from the terms renewal were conditions think went talk we maybe reinsurance session with kind And theoretical. the to the you quick can date, XX% and as a way share? Just us in Is right more then new getting panel? or then you the to pushback about combined about of feedback and think the quota numbers type the the question about the

Daniel Rosenthal

quarter was rate the our Yes, Phil. back expectations about QX and the with for XX%, and cession was in Thanks, on we line what that call. talked

coming talked back are with If partners. report did in X. we the very The and XX% about you'll that that year, rate number of panel we treaty. that then cession a in great letter the that completed still July the building in treaty. We're up you got half we we new pleased that and trend to second line both Xst to recall, And existing placed terms are referenced. treaty We've we closer the have on April includes to successfully obviously the out reinsurers down the the of that as favorable

And see treaty from a we've did so the it's with consistent multiyear X-year talked We about. improve. we and treaty the economics overall saw strategy to move that treaty reinsurance all a our

Phil Stefano

do a faster and claims to on And product. improves than about claim just move were claims that gears autonomous to quality testing experience which going we process the I side side, this efficacy or for processing. think process understood as think bit talk of opportunity us Is payments? guess, claim there an that payment Okay. how payments Can to switching past control on the the for review the the back is I done? is mean you I this? the user about Do intended? is past you sample the I average working that it?

Alexander Timm

devices short can close and do are it the over The throughout of don't all looking is, that and age. always a quantitative we what that actually, of holds Absolutely. machine the because this we the better so happy a defect always and to close at process because compare that both that machine actually be we faster control bad yes, we us a We're lots very happen close also set, and get what versus we can do entire The actually That where that things claims with doing. it monitoring will not in testing do manner. look A/B you time if claims, claims. originally sorts Claims cheaper generally doing way the claim. process. so the And we humans allows answer is at humans and can there's detection is have

So the we're from a is lot benefiting actually that severity automation. seeing of

Operator

with Evercore question Your is ISI. from Motemaden David next

David Motemaden

A couple guess, I questions from of for me. first, Dan.

insight It it is forward it any like demand helped And sounds I which well to have as just the Dan, I'm checks benefit. wondering, size being stimulus you as this guess, helping seasonality, there way into impact pull having PIF. guys the PIF on like sounds a on some growth? a pulled Just pretty you mentioned also forward. good

if us. And what to wondering in loss you that the for if it just I XX% you I benefit So And 'XX? year ratio, size secondly, wondering I'm continuing see on X-point was how guess the year-over-year? ratio, the on period mix accident benefit compares guys specifically, full XX-year look good the from got loss direct to ratio the could to loss improve.

Daniel Rosenthal

Thanks, David.

we're demand. question, first the forward pull on the the So not sizing of

a I we'll get the strategies our an it And lot as quarter test think, you lot come the really to of impact. it as stimulus as significant enough, imagine, understanding live. to brand. wanted the well of that come that, our well front, was and the convey as it. and we're we'll that about letter on seeing both fruits progresses, marketing you traditional of marketing work a talk better as including can we doing But David, in both had second and a back frankly, forward. as And we're performance we're around the We And think that doing investing.

it's As loss far the very ratio, from period interesting. as accident

would we quarter earlier when you be history. in the had when more premium an think the see I percentage renewal writings obviously first in in $XXX of our And a the a bit impact first still back we direct that earned our in thought quarter, bigger. quarter QX, million as growth first talked company of new percentage

which the mix in, line that the and loss see is well management ratio work prior but XX-year that loss new offset in going conversation are as we is short writings the on some there's you going investing the state by in segmentation to see -- those you quarters, ratio so the of earn the as season, to and have question term, and drive And no this that focus as will a with growth, are on believe, start we pressure the significant seasoned is year in conversation states. to of

Operator

next from [ (sic) Fargo. And with Elyse is with question from Your question JMP is ]. Securities Carletti next JPMorgan Matt Securities Greenspan your Wells

Matthew Carletti

I feature I Matt the little letter, Carletti with noticed yet have test feedback JMP been. noted the as was in about kind called and app, touched but test could or there particularly, the in churn the drive read-throughs converting that drive new Checkpoints. with Securities. on are to of particularly cited, has staying the bit a you the you any lift with a the hoping on in engagement talk people impact might sticking that, a you that of on and what terms I policyholder?

Alexander Timm

Absolutely.

So features, they're improve And we ways scores test making includes driving, can and material for continue a engage how see the and lots lot features of to you period, uplift that they're different review. on progressing engagement. rewards, as on it sure consumers drive driving to those during there's it things And we like throughout includes that how your that includes that those we understand that focus iterate badges, in process.

engaging So X things. test period. And people that app during opening app, the does drive that the with

conversion rates. it first, definitely The increases the

correlation there disproportionately. are mentioned retention. more will engaged, consumers is engagement to is and long-term the between post-bind more then and And as you So is a second purchase tend what they

new day really shift believe that's that more more And And what and continue we discover to product day. we every we so continue features as the invest features. app, continue to we do to to will here rapidly in all and

Matthew Carletti

the if some of severity been severity and then upticks kind in year. pool X And can, the some other quarter of could I for Great. how just open maybe really trends and question. the of more companies' things talk labor influences the later the eyes There's insurance other, reopening calls towards on and on economy have during other

your apart Just curious when view auto versus is on of dealing that? that set what and kind matter what insurer Root guys' the with average might

Alexander Timm

we of time. trends have as and and see a in we seen monitor the To that the come rate acceleration trends monitor all rich because much such lots most data through and the allows though, not that our we claims which on data because that we basically -- mobile installed, claims data quickly, to we will bake I have, claims -- and trends severity date -- we're have us settle the our of for our certainly say particular monitor To levels. We're in severity claims. through, app, and constantly app mobile data faster. date, partly real-time in we will because on gives we frequency come the consumers better obviously, appropriately so -- that our seeing. severity The particular us, so that

so we rate. would that through, see And take data we come as

Operator

Your Fargo. next question is from Elyse Greenspan Wells with

Elyse Greenspan

So on things. the my of marketing first question was side

sense. guys about there mentioned, in you bigger as So positive pull are guys growth, I some guess, still was right, growth the forward, but it sounds like you

to still of continue we ramp expect to up? marketing should kind so And

Daniel Rosenthal

consistent prior talked Thanks, had we've Elyse. the out in is first calls. that what on Yes, expected. everything as sense And played we about quarter with

and slightly on the more still to track sales are We year. marketing our than spend for double

We channels. diversifying focused investing in on our marketing are

previously after awareness nothing doing front, of the terms Root some that really we're We seeing real and the spend are in brand. success of authenticity brand on having of

so as growth acquisition that make. of And to this talked been customer but And continuing in the by is these quarter cost we investments as bit into about, result our the a right investments. fourth are we the are those has coming a encouraged year, and elevated

Elyse Greenspan

quarter for set was, should that as the full stronger assuming when was where kind then mentioned we stronger in think, about perhaps QX. being seasonality you, guide bit of was last I other had QX, year, direct it just seasonally the there get a contribution that not think the weaker? that I the Great. then that little are in. quarters seasonally more for you hoping inferred to And And I'm then color And as strong direct the a built guide but contribution there.

Daniel Rosenthal

well. business to Thanks, with fair book to is in seasonality some the there as say that ratio obviously, respect the and, is loss Elyse. It Root

Root our is in in than or have curve, still a is on to and of think for the the legacy of developing going the be year. different more insurers, been growth writings sense or XX that so I new around significant situation who that XXX is a years, bit growth impacted throughout by book

what guide for intended really today. the it that's so and year, our continues February assumed back that in and And

year make. new and leads that again, that loss guidance. for But the will management significantly I progresses, direct writings put to that Overall, said, expect are the and we'll in season that we the when together, you by year, slightly. guide the grow as ratio segmentation, state as elevate offset that the confident state contribution our We will that -- investments that,

Elyse Greenspan

And guess, could last one sneak in. one, then I if I it

that in? of, the lay see updating year then But like at which sense. guess, after you're -- certain in comes Or annual there is plan in said process to you X out the year and guidance point is quarters? will So a you'll makes quarterly, guidance a just of it how the I just see update so not the guidance kind

Daniel Rosenthal

where we We in it's on the and latter, Yes, about good our feel February, on plan. put focused that's forward We're executing is. really Elyse. the focus our plan that

But that really we staying if it. earlier, laser-focused said plan. something will point, you and our talk I of course, update, dramatically about this are back warrants come As changes on to an at we

Operator

America. is question Shanker Josh next with Bank Your from of

Joshua Shanker

at I back who than drivers equivalent noncontinuous Do of insurance come your with bought yet in those check. proportion a into assume individuals reserved after you auto books that the of of a half the customers are the the drivers they for telematics drivers were a books put to high those on ratio a who funnel? on coverage, higher And score? have formerly loss most or of receiving March, terms In stimulus the

Alexander Timm

is Alex. So this

So first, for set -- because obviously future our we reserves don't reserves claims.

So the cohort of prior reserves a on there those not would would and a from reflect be material at accidents, time. the this books March portion

and we've place of cohort, think in the unit terms ratio pricing of performance loss and those got that cohorts. we economic In underwriting for right

make okay. that's long cost. is believe how appropriate acquisition We if customers. you continuously acquiring we know that period think the believe how who them to going for don't to we of time, insured necessarily at are so to know And think we us we We somebody sure we're with a price those be customer

of there's again, past And know segmentation they're currently so because different, those accidents. with we important. loss that's customers, part fully are don't not for customers. see reserves, would anything reflected those and reason like reserves loss the so wrong that think that you is We we the -- why also our We but on

Joshua Shanker

drivers than would that cohort time, that a have different or... score broad expect over a those drivers of telematics you And

Alexander Timm

we created actually, No. is telematics such. independent, as The and

cells is rating So we lot of saw useful. telematics, then If be of telematics correlation telematics between and as a rating independent nearly wouldn't cells. the

Joshua Shanker

on impacting Okay. and in on And you us Georgia, what's update policy that's going how then could your count?

Daniel Rosenthal

states. into is increase get in working you've new and that imagine Georgia That calls a Josh. Dan. Yes, that I special We will that regulator. on seen our we filing Georgia, had Georgia, or in been is includes to approved continue Thanks, pending a states and This today evolve. the had put, rate sauce state. season by unseasoned Simply prior mentioned which to are

work of growth we And we with will Georgia something are focus you we in looked in feel that the performance we that's that's increase go we the be are work And that the And that's as models, rate in Georgia. our see at on and in right now there underwriting. in the so we that the fixed, Georgia, is there. process evaluated in underpriced it regulator very and going as we have back, improved done the our if why And way. you fixing. And and previously, important. And were

Joshua Shanker

gross I sales give X:XX, in. would policies I a in issued that satisfying? newly you item us tracking guys us in a your thing that adds. way other show can it's in one there a know know don't serve as sneak or if you number not policy financials us to -- I given number point new Is that's that

Daniel Rosenthal

is discern our with S-X. in we disclosures. in that basically on information. what show from you as guided quarters prior is touch don't line retention as But I've do a what we that of -- think you lot I to well that, can And with is Josh, Yes, our

components the make disclosure there lot PIF that a put and of our out up. around have it We different

Operator

next Your with Brian UBS. Meredith from question is

Brian Meredith

you. for here ones quick of couple A

curious, on for claims that, going challenges well just Metromile that they're premium What's announced your First that as start one, as payments payments. thoughts accepting that? this morning to Bitcoin now Any presents?

Alexander Timm

we to there whatever and now. This be do for is just asking We right challenges sure make our see that could as that certainly that think We we payment see don't Alex. when accepting really although are Bitcoin, consumers talk really fun but transact with really be demand about we strong a consumers this just Bitcoin consumer wanting a think about, item and options. focused to payment flexibility real point. it at there we're to might And don't

Brian Meredith

anything my guess where I'm from just and in back miles consumer product than to driving the And different? period now all transitioning of was be affecting because Are been different is very today. just habits there seeing driven sudden your driving where curious, miles a I kind as of of may people then XX second XXXX? telematics have work that how low And Great. kind kind may very, a Okay. during they XXXX you we're question, of weren't of kind

Alexander Timm

making that's that pre-COVID And monitoring they're are, good mileage. now. algorithms our at seen again, overreacting the basically We've impacts in And so seen rebound like book are monitor a feel out. pandemic, of where levels. the closely. also, We in general done And great that we've where very our through I to question. we were sure that mileage weren't the dips we scores, temporary Well, fully COVID we to recover in mileage about point. we've this said, We coming

Operator

with Josh Cantor Our next Siegler from Fitzgerald. is question

Joshua Siegler

moving rate you we'll new approaching color how existing Can provide increases some and states be forward, pricing ones? and in both base on

Alexander Timm

Absolutely. The state is approach segmented on individual basis. very a way we that pricing

a have take. not do and we to where is. the Right national we our or now, we that's So what state believe take trends overall claim rate are what management do function we really looks each in cost where about state, therefore, built headed, need out that at that have constantly indication we feel good

to expect a can us adjustments continue forward. on state fine-tune basis, going per make You though, to

Joshua Siegler

impact also data for your really attract for and the ability telematics the I wondering, recent national... on update to Great. does Apple privacy both was phone, how

Alexander Timm

rollouts something with -- is had lots time. systems with long rollout changes. We of privacy actually we've of This the dealt different for mini have -- new a iOS the

we haven't manage us, impact. really, rollout were And a to well. there. we XX.X, it seen For material quite We went iOS through able the

So consumers. seen our in the we falloff data of from have sharing a not material

Operator

Tunis Your with Autonomous. Ryan is next question from

Ryan Tunis

of just stuff the I question, forward some the guess, growth. pull my is So with on

You a you of similar number ago. a quarter added year PIFs that this did

on spent You about twice marketing. much as

down bit, my I if So pull guess on? average trying like spending -- some little cost CAC but the related? there's more wouldn't question assume you you on marketing that fact I per the is would little advertising that guess this I'm is just efficiency, bit this going just just. think you is assume is why understand that a to is forward you're Like a why up you ad about a less stimulus is bit. why efficiency think

Alexander Timm

at true the industry or the stimulus it's true generally be in season would whether company tax every Seasonality, broadly. is year and

So we would that. see

look sure appropriately have cost, of particularly managing the -- economics customer we're CAC. business isolation. year, the terms to of unit manage so really acquisition in we ratios at and in, last we're bringing that we relative lifetime also we loss the the we're in bringing terms that to that target it mix value acquisition that We can cost make customer don't compared in In of to

So just isolation. look again at CAC in don't we

have stay months. cost X have many know for and us for we a higher decades that who customer going with to customers are customer for We decades. should much acquisition That stay us with might

that's data on a the right in basically to of the we why our isolation. science launched bid platforms so And can't we lot our that of reason for that allow right models just part for the us have marketing And look amount at consumers.

forward, the We some of to sort that pull is do year is happen. to we impact pull there forward the with something Again, terms it of every it In demand. that seasonality believe that, had that stimulus. expect

Daniel Rosenthal

standpoint. way a on saw to just conversion expand this quickly is we just that, from that The And show is up Dan. really

that March. brand believe forward building As Alex we channel the into on very expense, and look saw, where is diversity conversion as things we well obviously, the touched track of we we timing impact at And of some conversion. that of just of carefully the that's one as pulling

Ryan Tunis

more at vehicle we've we'd have much Got as just, I as seen fallen from the, frequency, the it. underwriters about up guess, thinking And all are obviously, thought. miles driven hasn't

a in I frequency quarter. a results type you event? kind little the the in what talk bit of Texas the think of February, freezing maybe Texas helped a has Can little about just benefit you gotten have you from might first saw bit industry thought from you standpoint,

Alexander Timm

Absolutely.

do Texas the freezing we certainly event So weather. not did help, because cover

In lost material that in sort being obviously of or a So saw time, you also power. and see period events of demand with because frequency. during with the frequency. driver -- that of see Texas, things, don't actually increased winter a in But we people a of forward, lots any those reduction general, sorts we will going

Operator

Our next Youssef from is Truist. question with Squali

Robert Zeller

for Robert, on Youssef. is This

retention quarter on if thus and how wondering in you far in maybe or Just policies trended touch can have the enforced April? growth

Daniel Rosenthal

about today first We're Robert. the talking here Thanks, quarter.

to the the So the time thus we're in saw into PIF we I first came up by our showing loss second growth in far showing don't quarter, want Obviously, premium, at quarter. development written in in get encouraged that up the ratio that down. same direct

Operator

there participating. are And this conference questions for Ladies this call. further concludes no at gentlemen, today's you Thank and time.

disconnect. may You now

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