ROOT - Earnings call transcript Q1 2022

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Root, Inc.

First Quarter 2022 Earnings Conference Call. [Operator Instructions]. At this time, I would like to turn the conference over to Ms. begin. may you Patrick, Christine

Christine Patrick

Timm, Good morning, is quarter us Root and are for earnings Rosenthal, and Chief Operating thank this call you Officer Alex call hosting today's first Revenue Participating joining and to CEO; results. Dan Officer. today. Chief on and Co-Founder discuss XXXX its

a Bonakdarpour, its Officer. of and Frank Officer; results. portion question-and-answer presenters Last the Technology Root call, our announcing will Chief Chief Insurance shareholder be During the joined financial evening, issued by letter Matt Palmer,

While we within complete this XXXX that document, information about will reflect call items you our for our also read more financial to XX-K. performance, Form encourage

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

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

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

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

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

Alexander Timm

Thank to company of difficult first company. as one the a took the position continue environments to In you, aggressive quarter, the weather we've to most actions Christine. seen we young

products first Our on our through expenses, end marketing best VX reducing customers. than led and tamping continue exclusive embedded changing on spend growth of on for the partnership, the Carvana after preservation we X announcing the customers. us time, focus progress and the At very underwriting tightening capital segments to of special, profitable fixed dramatically to the down technology available least our make to our makes world-class roughly rapidly of business. same XX% what was At the of rates, building quarter, product less months

In addition, of we coming resulting to volume made flow, improvements from XX% in new channel. further our this together product premium

be to X a link has integrated platform. Carvana's from We buying leaving letter. quarter's allow product, expect experience. launch reduced which XX quarter. built quote shareholder the with found product capabilities screens This more in and and will version of down second number this X. the experience now demonstration elevated embedded before This version invite a the of Insurance to in with We've Root a this delivered I latest to customer of customers initial to through the checkout Carvana VX you to our down to without can VX's

a the foundation highly defensible fully product. growth our laying for channel embedded with are We

works that to at all occurs purchasing the We to of to that of In the the experience transform believe best product addition, customer. insurance we offer brokerage are customers. we trend time a are for building to a beginning one experience the complementary growing at Carvana a embedded

Our offering seamless, embedded developer a Powering our frictionless meet allows simple experience. our industry-leading and to their technology experience. with in is need, customers of time Root

We less than have hour. vision a offering an something developer in clear implement to embedded that can any make our

progress improvement we believe underwriting, faster strengthening actions on in resulted further the technology, industry-leading to a growth. results competition. than which the will ratio. During our We color these through a on able our improve will our loss better defensible XX-point materially while in move on are underwriting building products more focus actions. has we quarter, made give Dan With building customer sequential

quarters. turn the Rob's looks Dan, team Officer. turn as very forward investors. I'm work day. industry to executive to pivotal success. our experience and Dan. for I'll our every employees thankful Bateman the in call our deep to it trust I'm expertise appreciate that to the will future hard of I over company's and I And and that, tenacity presenting the in He with over customers demonstrate Before be in insurance significant to Financial driving Chief excited welcome financial Rob the

Daniel Rosenthal

Thanks, Alex, morning, good and everyone.

of the Our results our embedded for XXXX developing underwriting quarter offering. significant strides our in forward and reflected performance strengthening first

full evening, to in few a of give You we we the the key but GAAP financial letter results wanted will contained our highlights. shareholder find published yesterday

line, On the declined top $XXX to X% million. premium written year-over-year gross

not reflects XX-point leveraging our business responded quickly partially XXXX sequential to of level improvement Shifting the shopping year-over-year profitability. with retention loss the our the for and quickly peers. most The XXXX, increased Our being QX more by a by most to and recent believe of anticipated. business lower million. seasonal have was and pandemic. market marketing By and changes rate experiencing offset XX% period affected improvement than modern infrastructure, of underwriting premium ratio quarter, $XXX first the by volume year, top in compared XXXX, we first new significantly a is of are getting trends decline more into quarter improvement from the behavior. accident new than driven XX-point versus We gross Gross a earned increased spend originally quarter first X% line

our be rate Our technology advantage process. in filing can seen

a to better model, have of XX% environment analysis predicting First, rapidly this, losses. change our self-service fully pricing built workflows Through roughly automated. our with make we we can rating improvements

able into with performance $XX noncash a The our able are improved of view give regulators new lower current financial other ship The quickly. certain are XX% the items. quarter changes quarter have support and was us to Second, excluding this to compared the getting plans. XXXX. rating improving a to expenses. we we rate to are performance. data of once This allows into And this needs. with approved, rate our plans have seamlessly new This market Operating we our real-time we clearer business, new provide driver EBITDA to concerted We of improvement rate to implement is million, lastly, models XX%. needed immediately, introduced primary was first operating adjusted a loss when of our the reduction underlying KPI effort made

company find while We the to capital within in high continue reduce present investing efficiencies opportunities that to potential. consumption return

have cash expected XXXX. moved We year peak burn our past in

operational the primarily capital During sequential or the XX% non-loss driven have end changes loan the reduction a ended $XXX XX% quarter with in the quarter XXXX. compared at quarter. resulted the with and was XXXX. million $XXX increase facility We term The of compared million first BlackRock $XXX roughly of during in million first first quarter, by unencumbered with closing the of LAE expenses

Turning outlook. our to

written charges I the like our demonstrate in The are first that recognized become XX% expect us any to actions differentiated first the underwriting that restructuring we pricing echo in and year-over-year gross Alex's have half we in to We as of other navigate further charges expect we through with using the of reduction half than our capital the and model actions, operating $X $XX to losses to a XXXX of quarter. and in premium position reflect a to meaningful to deploying million stronger would compared $X.X we in declines finished. company's to operating in excluding losses. half approximately we first million. significant history, marketing restructuring are environment. thoughtfulness of leading With challenging not take at around thoughtfully our improvement costs improvement were and the have been in million we time taken statement first fixed XXXX, expenses, XXXX of continue

our excited to Our out continued opportunities advantage near-term With that, support. our clear, Alex, the We're look continued and appreciate goals while and about building differentiated foundation Matt product. your Frank, technology underwriting strengthen questions. I are before to your very us and forward

Operator

Instructions]. [Operator

or question comment Cantor from first Siegler Our line Fitzgerald. Josh of from comes the

Joshua Siegler

In big Obviously, forward. you technology what areas to played make advantage your plan advantage quarter. moving you do invest sure this this retain role to underwriting a

Alexander Timm

for improved we're were and question. actuaries and entire Thanks continuing technology from of have we of for our the XXX% automation to materially the actually automated invest throughout XX% workflows that this and invest that quarter, the really that we XX%, took to continue currently about actuarial to pricing actuarial percent stack. there. amount and In Really, we

going models So those and saw progress, what for in really, from that's trends study continue and the this as exactly to us to you data our get the can and inside plans. that quarter, do those what then you're we work rate more very and us of rapidly science actually that's And machine us. of think reflect continue the I continue to see in more to to allow market,

Joshua Siegler

And of idea. on then expect you do That's some levels it be additional in And Excellent. expansion? color helpful. reinvestments required accretive I'd platform appreciate XXXX? this are also the for brokerage to What

Alexander Timm

So broaden really Root customers. allows to customer the something experience the to is brokerage program more us that even

not where our the aren't not it licensed so or experience. might yet areas where own is our And we an doesn't or -- product risk insurance aren't areas underwriting it appetite, just we aggregator selling meet

that personalize Brown we very platform. for [indiscernible] We an and both our expect QX. of comes appreciate done on we And been and are in working that excellent looking that, the job hard and to will each customer really team, appreciate Chris best possible the I select carrier through there, and launch the later actually that. And we've really work have highly

bit year, to the talk results and pass for In and expectation that. I'll terms our Dan, of can he it this a about

Daniel Rosenthal

for Josh. thanks that. And

just as Alex to and we're brokerage think QX and Investor talked forward we'll back our you we on the QX plans the as which forward. the come expect expect ship go talk in call for Day, product the I well we about to in looking September about, to

Operator

from comment or Phillips comes the line Mike question of from Stanley. next Morgan Our

Ismael Dabo

actually question. line just Phillips. Ismael the Mike You for I one have have on Dabo quick

the Can insurers about or OEMs? defensible? So can Carvana you other with Why channel think you defensible. know, sellers why is other, car other don't this I it's talk do

Alexander Timm

really on having questions you with something experience that quote to be order asked. in is a to really the technology actually truly completely do that stack need it's we're insurance, is very there's Actually embedded been because embedded and very and that companies -- do have been being the a a believe now build up, seamless And bind few for customer really decades. crack seamless tried experience difficult modern that that. we to to experience. offer consumer purchasing for the on other ground able This that to built insurance built And technology from and to customer

with technology, think who we and so have really And very deliver were partner going alignment we company, who it our strong Matt obviously able different. also Carvana a cultures, and able we're very I'm is can customer, to our terms actually that to tech talk our very really that of and CTO, to about is together technology our we over in is a we digital experience a our pass why differentiated. bit Bonakdarpour, believe, to come

Matt Bonakdarpour

Thanks, Yes. Alex.

the approach our in for world-class to but potential customers, technology customers world-class our through the also aligns channel embedded the products are best channel only And not channel, with at the policyholders and approach embedded partners partners. specifically direct to to embedded case the the of build Our our customers. our very our developers

when experience allows And we back-end experience do data insurance, to necessary, the we're funnel. the and collection, in is purchase to is that proof of heavily in is and say, part easy allow quote invested customization, to easy, aim And ensure introducing of systems We've create that when delightful with order that giants to, compared we've when do seamless this so binding us the on of truly and for doing developer years. for that differentiated. an what insurance shoulders developers been OEMs standing they're and customer the what the

Ismael Dabo

Great.

quick a follow-up question. Just

your percentage a one just earned since that on how to restructure has we contract trying have contract, I of So as growth, XX% with have your their and you think hovering partners been how forward. you with think your reacted -- range going to ceded wondering that? curious that your just I'm around how partners. mid-XX% reinsurance about since premium direct should changed Also balance reinsurance your you your of you're your are has profitability reinsurance to strategy

Daniel Rosenthal

This Ish. appreciate regard and has Thanks, the Yes. plans. I to is our with changed reinsurance Nothing Dan, question. strategy and

treaty of are, previously. level strong of And from in session the their about that add seeing the be company. consistent funnel of business our talked in the that we're the next through partner We support and we've as other capacity support well reinsurers from right business contributing fact, a with see terms of now to a quality really I in is and the the Carvana thing would negotiating continuing will that's that's like the the as what to standpoint The standpoint. process coming

Operator

Yaron Kinar Jefferies. next comment of comes from Our or line the from question

Unidentified Analyst

rank Andrew in loss is the out lease the sequential you that X most called for the you ratio This underlying impactful. drivers Could improvement Yaron. for from on

I XX-year trends. rate underwriting and think increases you earning mix in discussed actions, seasonality

Frank Palmer

this say but So I'd seasonality and actions Frank. mix, it on tenure the that of probably rating all have most is X was #X. are of do underwriting the and that kind But We some was important. other rate some changes. the

Daniel Rosenthal

I Andrew, would real Just Dan. quickly, is add, just this

If see quarter in from that won't around question as of was in, much the the you actions. rate your earning

is I start earn that see future You'll think to quarters. in But Frank right.

earning XX XX% of -- In spoke percentage we've increases the and pricing to throughout and the that around actions obviously, itself the underwriting, it XX earn in rate starting in did terms data aggressive points. for taken

Unidentified Analyst

are mentioned to order I on make that the be suppose. that what -- will Alex, I magnitude over 'XX? I you of version think correctly. Carvana just course of anticipating of all sure to or rate I kind And customers, I think heard And X heard attachment available I want the you national

Alexander Timm

end are in have brokerage Carvana customers when that at that's flow. this -- point We're offering the or market, coming our we we VX, near Carvana of actually that to we'll customers getting ship believe XXX% through nationally and as closer our anticipating not to all launching up we our into a

to partner learnings down. that slowing those speeding all all in continue we're anything, broader technology and can certainly see partners. replicate talk aren't we in experience, If be In really up. will trends we than after now. have a attach months we to And our we we ability which that terms less And seen hone launched a partnership, technology as rates, multiple X positive of the they where is really testament We a Monday product We original a to differentiation the the to our to think is developing, with continue integrate that incredible we of really to is a actually and since across our to very that on too. we're of we'll and world quickly think really attach And a Friday, we some increased time. materially then, work and continue buy plan rates, we've on seamlessly partners. developed And technology that live. over developer

Operator

comes of Tracy Our or comment line next Barclays. Benguigui from from question the

Tracy Benguigui

could do expect A model your rather time, follow-up and Carvana brokerage envision more get this can also on if premium? income is could shifting we than products, scale insurers to curious, that a way on you where over business up. platform. add, in I other And your you could I'm fee want their

Daniel Rosenthal

are of From Carvana in we carriers saw announced how started calls August, what transformational insurance the other for Root Yes, It that of Matt approaching earlier a connecting is Tracy, from lot was terms from of question. getting in carriers. them a other type thanks last the how we deal that what and and with Alex it's the moment standpoint. we're customer about customer And terms the speed and talked of experience we doing.

an doing but Carvana, offering. So are a just and segment are absolutely, don't that want, that not so product we're seeing we're we Other they with embedded they have. that attracting the that customer efficiency carriers

is And very it to so something productive conversations. contributing where that's

of our options. how a and different business of impacts numbers frankly, terms and we're income, In model variety exploring, it fee our our

to differentiated constantly and we're customer for expect, might capital, at investors drive looking returns the still you experience. and use best As our produce sustainable options a create of maintain

multiple expect we're Carvana, just but and come for for are back and models the channel, with there economic So not about quarters we'll broader embedded again, discussing carriers, you to the that I in talk ahead. that

Tracy Benguigui

gross XX%. gross to All reported I ratio last right. quarter, ratio. Excellent. XX% shareholder you accident Also mentioned your period in XX% improvement in help XX-point your from accident a notice but sequential you But couldn't period loss letter, loss a that

loss looks pick. third thing actually you raised 'XX looks the So did like quarter your your loss same It pick. for it you like

is, of are periods, you my with a that? drove what raising how current record XX% you loss So your pick? have question subsequent track And in confident picks if

Alexander Timm

have So loss increasing picks. we first, would say, I not of a definitely do track record

true If we from as that's preceding you relative in look forward. or are over plus some this historically do well. recent the claims back the accident QX time see some accident developed you to noise development And We in saw those really period periods less claims. swings, to period. particularly than going those will degree, minus, this see minor little a And as accident quarters immediate broader reserves our

we didn't now severity material the we think reserve of For was this confident expect our damage it And was IBNR very in a claims not feel quarter slightly that adequacy. particularly, we it where coming or was that really result elevated. through,

Tracy Benguigui

us you past, share the Okay. and with current you Is something that could view? severity. In shared your your frequency

Daniel Rosenthal

Yes.

quarter compared frequency are and severity XXXX, of X severity So to up. both

those see of we last at share we're increased versus this the do as not year. driven has far X to miles point, going quarter As magnitude, but

the known. well of are and supply drive material issues costs the frequency. damage that So And chain helps course, then,

Operator

or Our comes JMP. from next line Carletti the of question comment Matt from

Matthew Carletti

give want of in and a some having broad there? buying insurance not couple of I how coming the not ask much is maybe strokes you for first Carvana another insurance switching -- policy? Kind or Are color time carrier -- car into relationship. to a you're you versus new terms having a business buying the on can just capturing questions of us the from or

Daniel Rosenthal

Matt, it's for question. Thanks Dan. the

carrier. We can to real who partnership The seeing and carrier is the the focus that meet another from Carvana uploaded for to to highly totally success yet, get different standpoint. it within from car Carvana see it's via the It's We of as of that but numbers with excited live. experience. are We're product insurance ways. demo want the point in responding to with won't transacting your thinking customers are at majority fantastic. segment look customers a We've it's a from a about And We coming differentiated, are offering. point, a with significant are another customer a to really the customer the and multiple into a those specific and channel experience think customer from differentiated be take that. you we standpoint that. standpoint, about And a and chance a natural better from buying retention switching

and in market. application we about quarters excited as we're today. as back We're where the and the technology differentiated partners, it come we'll has get in we've with is talked about partnership to about VX the more ahead where talk other So excited,

Matthew Carletti

interpret standard kind the as of in that you'd book these that even should of it of letter kind like not and than the kind is Or business? seem retaining. Should reference in kind I better what what's business, you're a I mentioned of a of customers about normally nonstandard building as book see point? interpret the you be to And how higher of there retention

Frank Palmer

which the tend are Carvana drivers is characteristics. of be preferred Their I'd They that more to Sure. of preferred. the with cars car Route newer. expensive. Direct kind cars the in representative are are customers correlated U.S. say coverage, tend full be more contrast and all in Their of more to

data So the still is thin.

those we're retention So improved it's out more tease out We they're from aspects, to from just of bump seeing a of both that the tease that much but it's hard much versus believe to how Carvana preferred how each hard is relationship. one. because

Matthew Carletti

Okay. question, last Great. And one I then if could.

hoping through the channel, also you X.X, is color period. do just You've you the in of drive of onboarding if made, direct impacted that does expect? kind kind that the letter And was Kind give what are how terms I of of -- by to could that? X.X. where major changes just the could now? on embarking us on in further UBI you there touch test stand we shortened of a And little mention be that of expect traditional what Kind X.X might

Matt Bonakdarpour

This Yes. is question. Thanks the Matt for Bonakdarpour.

to conclusive power. earlier, to we customer be the can Thankfully, rates period test new on down driving those so drive will experience. features going end that test in very deep R&D our getting new the to infrastructure, the of with based seeing we X.X later process get conversion the help improvements put into quickly, on the investment are for X.X, implementation this drive to are telematic to predictive able your and and R&D course, test UBI we the quotes We in were and techniques. to But focused all pivoting which, only the iterate out model we modeling And are not of question, our process. the that,

Operator

comes question Our from comment Weston the Bloomer of or from UBS. next line

Weston Bloomer

could book the need trying increases -- on to we rates is how book your question First how guess taken much I much in is in to what context more the adequate? or XQ and you've and engage more you the your your of across in of quarter. of do see of cumulatively question the level Or rate the just become year-to-date. that rate

Daniel Rosenthal

great a question. That's Sure.

rest what's rate underwriting saw have third of ton trends and year, taken the quarter we bunch the taken start think We're the "Hey, this actions are the do think prices rises. play quarter to both depend year? going change as We've more going the people does trends First, them rate, watching were watching this of to chain. supply the we or a of doesn't lot rest year, need that's driving price how let gas last closely that some the year. last A of We're and the out. very be we of as quarter upon rate of to we going by first fourth year. as see a We increase. early So the we asking, in trend me gas that we in

as we think first in won't some year. we need So to quarter, still that as in we need we but much take took the rest of this

Alexander Timm

And I'll that. to also add

well We and this has increased to of whether are very does so positioned, technology a believe those as you, as from chain some war issues has will our shown in leverage our in QX I Europe we that respond That's as it's quickly. supply work trends if uncertainty have -- what machine the again. what QX. how achieved more will And need we or to we been it achieved rate, built technology unfold,

Weston Bloomer

Great.

as move going are this. what for assuming sure that's the Curious, not answer. But we biggest disclose to trend increase you're if car the the driver been know you throughout prices the severity. in I'm in used On I year?

on from you're kind perspective. loss curious about how of So that a thinking trend

Frank Palmer

Yes.

do So disclose to exactly and in I'm as basis. weekly think XXXX. XXXX elevated might remain again, it did to not that in much but the be we an year. might We increase year. last for more as increase, certainly this monthly see it's don't some a to going of expect compared we We of think rest monitor this going on what we

Weston Bloomer

it. Got

to any that just and shaping Carvana You business Carvana? the was than anticipated. new new for XX% to premium context my also I'm that related higher of the in Was taking from expectations that XQ. volume originally mentioned of

Frank Palmer

Yes.

that was quarter. a I reach iterate. the it's ahead had would question, still consumers. that for we our test was of channel part writings. to response and disclosed the as of a and the Carvana Weston. XX% the obviously the business channel Carvana the think as That's new in good due view We Carvana I forecast from first

the highly the the as the new quarter. road that get market. on from lot excited later forward. I about speculate place we this that product go of putting a into will want differentiated writings But in about tremendously We're X a of and to version channel optimistic come on are don't excited year. for We to we're map There's rest that number

Operator

[Operator Instructions].

Our next the question Hughes Mark or line from of from comment comes Truist..

Mark Hughes

the you does When at talked different in we when priority, think channels? kind next XXXX, paid brokerage, of maybe think terms What the of shape about you look Carvana, maybe few overall growth good Just of speaking, search, like the of about how results mix is out about Carvana. that and independent just roughly the Kind quarters?

Alexander Timm

still investing about its our grow early platform said, That we that are when quarters that through is long -- in for anticipate platform the better because I we embedded that wouldn't we works few direct channel. and think do believe consumers we next chapters. really our able to in in the disproportionately the that obviously superior technology we really, term, will channel. just be And very

plan have will become then we we've those the reaccelerate back seen recently those as investments more think some and recently adequate. back of to we we capital as And -- pulled is prudent rate which management. We we those trend, loss

Daniel Rosenthal

Yes.

loss That underwriting, is that. that quarter's That reflected that's ratio-related quarters we pricing I echo this straight what in I'd just said -- Alex and I highly inflationary would X our to the on results, us think the Mark, technology. of that focused add, is pressures power has earlier, Dan. been have showcase been and allowed our have the really first focus. really

been then the us, tuning for growth model a scale think perspective from I it. to we've

call a We'll see the solid. perspective, know, in it. model shift then at And offer we'll trend. QX to along getting the in pricing specifics the the Day about back and to the more and direct we We you channel the then about to proactively Investor started foundation As marketing that it. tuning us come good pulled scale in from and embedded opportunity in way getting the we back spend marketing when feel on September, where talk we're and on underwriting way, to

Mark Hughes

relationship, to good for presented the Carvana want Carvana number you talked on the of to sales How about the about, think we customers Carvana you that offer, is enthusiastic When all think the When it, the when thinking pitch have technology. who a get think, them you actually Version the sales. about X. deep have experience would to exposed nationally exposed of about get penetration of XX% that I kind experience, with

Frank Palmer

flow. Yes, really a And we Mark, what you customers and in have in warranty. grew the Carvana What in think have buy go they think insurance I look car-buying opportunity that to go at we year-over-year, the through and if funnel, then to then experience. experience. the buy have car, their the the through go the good Carvana And the demo, you and car they're will is, opportunity transforming buying you believe you car, service results, demo you add is to to would see look I preferred encourage the When the just opportunity then to the innovating and in you finance really as it's package. question, their you you'll at you see

that product We're there. we seamless integration go very the that later have continue a is of we So we'll obviously, to the step excited coming car-buying part in And forward. experience. on today. into quarter really -- about the from it flow. as natural iterate market VX a this that's what it's then It's really up And will

Mark Hughes

of rate kind that penetration presented offer. of customers with reflects So that a are XX% the good

Alexander Timm

of the reflects the area just percent not currently are product those question, does the reflect of we geographic and that -- the that The it to answer live with folks. penetration XX%

Operator

or from Credit Andrew from comment question next comes Suisse. the line of Our Kligerman

Andrew Kligerman

it XX% clarity more a New a a where specific certain how just interested or have does you gotten region XX%? is increases that little words, -- do clarify cohort that? maybe XX%? a you group. a you the Jersey Or year-to-date. within other that how Could rate state, I'm around clarify you've Could state it -- is in that define like would In a gotten you

Frank Palmer

a in. of the rate took where It's weighted Yes. average we states

-- So got there's wide we some a range.

increases. states the that we we model rolled weighted get rate is also might might a a was rating big greatly we base that segmentation. some would new states not in. that increase took be has out just which rate XX, did quarter I'd states Some of this mention A X, thing increased actually that, average get

and model the rates in out the segmentation those most states. of a at to new So time both we managed same increase roll

Andrew Kligerman

see. I

of XX, So And adjust at new XX, XX%, Jersey the no -- it. do would you. segmentation would also I is part as and this be well? York But got cite you be is and New there average then you would -- model XX, you New if when add for it

Frank Palmer

took The new be did in of -- improvement loss average was XX%. that, ratio those like to we model rate And addition we would weighted increases. the XX

not and It got weight, weighted average gets we So in amount XX -- we states, across be would right? not that's by XX%, the those each premium have same the state those of states.

Alexander Timm

really segmentation that unprecedented. at and at and And entire entire speed, cost an with models that's truly segmentation to that adding refitting additional speed move improvements our loss

Andrew Kligerman

increases on you are Those little very color rate give in a ability with that And high are process working would Just around these forward, terms some could they be numbers. your how any helpful. regulators, work of to specific with amenable to them? your going color

Frank Palmer

Sure.

with of it's more state know, our can regulatory the depends there's, view order working course, where basis, advantage in the some to rate regulators the kind we've to which feel we the changes probably make and got state-by-state it ability quickly regulators of gives state. work take of the states. opportunity with us do in of then take differs rates. tech, to you the environment amount take what's as And the and is how rate each in need allowed, regulator We that and a by So on

Andrew Kligerman

And quarters you're channel. I coming about X on a provide was Could you along? interest how in -- think it. of it in Got business ago, about color agent distribution your traction little the insurance getting? What independent kind that's developing cited you

Alexander Timm

That -- our product there is still live.

we now, given now right environment. the down on scale first. And will not scale live. But we're that is at current time have future. right We in to given channel, we're the actively still frankly, We It trying embedded are focused that believe seeing rate right there. now that promise in do adequacy the the that we doubled this

Operator

Evercore. question next Motemaden comment line Our comes from from of David or the

Unidentified Analyst

in Francois for Dave. This is

for Just curious, could the much quantify how us your of gross loss came that much accident -- improvement. ratio, How period you XX-point from benefit sequential seasonality?

Frank Palmer

seasonality. We'd it's of some that say

rate. of Some specific some a it's of don't it's have miles each one. We driven, breakdown for

Operator

you. remarks. showing time. closing conference additional to over any no turn I'm the for Thank I'd back like questions queue in the this management at to

Alexander Timm

look forward quarters. We address the you to addressing in you. opportunity to future appreciate and you Thank

Operator

concludes Ladies and you conference. for in today's thank program. This gentlemen, participating the

disconnect. now wonderful may Everyone You a day. have

Root (ROOT) 28 Apr 222022 Q1 Earnings call transcript