PGR - Earnings call transcript Q3 2017 | The Progressive Corporation

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Julia Hornack

Good morning. Thank you, Brian and welcome to our Third Quarter Investor Event. Today we will begin with an update on our efforts to penetrate the home auto bundle market.

Our presentation will last approximately 40 minutes and will be followed by a Q&A session with our CEO, Tricia Griffith; our CFO, John Sauerland; and our guest speaker today, Heather Day, Preferred Marketing Process Leader.

For Q&A, Bill Cody, our Chief Investment Officer will join us by phone.

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

These Additional the uncertainties available risk statements our it's discussions documents Safe annual investors CEO, other risks statements factors to of via website, in you we face. will related and introduce XX-K, be Harbor on affecting the the Form where those can to and page find progressive.com. challenges found information And my our our our of concerning is Griffith. report discussions forward-looking with of businesses, Tricia that pleasure

Tricia Griffith

Webcast. Good morning, and welcome Quarter to Third Progressive's

at at active very, Irma, and are of to get about very topic based bit little familiar we all I this a names last hand, quarter, very with Before the with us hurricane I season. think reflect started specifically wanted two Harvey the on

only so of but not so important year, some understand is and moments the you our into customers everyone As Texas into critical how we some videographers to the our letter, down get took resources went some us the get we to what are to just Florida This customers. CAT to of company just insights at really to right several both our us. in our season, which this do to happens one down of capture customers and they and employees help doing, need have a react, from insights and they at and internal how have what our CAT know my from

and that states CATs had Progressive internally how minute not almost we handle this at a and country, everybody really find us, and both our those employees X,XXX really gets for captured of although very something important, we of is the we we of video, from reservists the to team customers. both available in around CAT So mostly our couple because insight

very what share response, ASI to And time us all impressive we do starting of they very a take retention results. rewarding When our you like much on and time we are customers see greatest Progressive understand our closure making to we care and end we and in to they our and customers always, accurately. with And and I'm the the their quickly, need. impressed closure be I'd around with and and As customers, importantly, they into our we want take of the more [Presentation] insight sure care And all get we can that. of side. to were of we're importance need that's of this are of our that our sure us tell our for time that out need, able taken are claims resolved customers staying really both the known take catastrophe. video rate, with their culture to there want rate, two-minute and care with why that during you know you that a to from speed So up for some quickly as make they to so during

I come, to exemplary handled ASI these of Progressive and and know again, both is whatever we both So will able be handle that the at of so how fashion. I proud those am employees in have of to all an they

topic hand. the at to Let's get

that fleet size as auto talked personal our have which $XXX market. call the less and the we lines understand about market. about we outlined about market time of met, of fact So there's first the frequency the specifically we in the passenger and auto severity Curtiss section last how opportunity that addressable component, billion John private We a and runway excited to talked the we when as the really opportunity, than we us well what And talked XX%. trends project, the

going but a the CRM today, we're our lot not our the that terms claims opportunity on our in talk with to we're brand. thrilled in of and retention service both about auto So our side, product, and platform our

that $XX on really focus and having feel really will to think but side, what that our putting So deep property into. together, lot we and is side, about. the piece Today bundle evolve, on that our with the is the auto going important, property those excited of over be continues opportunity a that's components to all side. relationship billion that positive we're that very especially opportunity we dive the on be Again, we homeowner and have really Heather goes ASI, the

to We So be originally to acquisition minutes that alert is went the get continue and and talk we're really with the the for the on agency the evolved, spoiler ASI. proven in with we of agency side. direct of the it in able But are the acquisition hand as ASI, be rest to has preferred XX it to access going extraordinarily the pleased side. our glove that has positive be side to with working both to customers we on

capture our how our continue talk to opportunity, pleased the with of capitalize to-date, up we're Sauerland, Day, for marketing well what and from mitigate in to very going see as talk that us and going of John to And and of come about before we come preferred be you will the momentum done CFO questions up have. size can we're you quarter, the building the our three served is the about Heather may reinsurance the then And to preferred us first customer. acquisition with to that, more structure But Irma. and going that So we've of any risk. is ASI why how order we leader

get started. let's So John?

John Sauerland

line the large. in Progressive the for fact retain lines strategy. virtually very we but to the space, and Thank our of The Most executing you personal all those that aren't, the review. attract minute opportunity customers, personal can of with you, me now by segment for space size are everyone. line a remains on morning, excited Tricia. familiar let very Good personal how destination spend of you who we We're

consumption. a the homeowners, auto. who the within of those four think primary isn't auto, Sam by more Wrights, Robinsons, consistent the are can personas the segments her home The end Wrights don't Diane, with bundle and who Robinsons. have personal insurance home the insured, on nonstandard represented Diane, lines, and and you renter, bundle We Sam, of spectrum. and the of Sam who consistently is

delineated this channels space the market four in those personalized segments see their the currently as well on slide, they across insurance. can as which You consume we've primary distribution

are for We million of the had success home we Diane, or as now Wright, X.XX over in graduated. our or or customer slightly have households marketplace. Robinson, of them The Robinsons penetrating a bundling and Meaning a As XX%. they life you Robinsons Robinsons developed of can and to we a have some personal current policies the be Robinsons through is have their than segment, in set, see, terms We've around in half lines evolved started Sam, think year-on-year as force predominance the households. auto. a we countrywide say our the less growth of we X%

was segment. a predominantly that business, the you customer was I will who as could would customers out that new and he on I into working, "My my life. example really Progressive that would and under new insurer perspective Adrian large Robinsons received you. letter driven we've from the XX-XX, touch as insurer recently in the me If on name example read was how independent graduated their appreciated very President, name. and write made motorcycle I I first give that is existing cards our our we equal, provider to say that's their financial I a it life. real customers strategy is we name Progressive be little great a be moving purchased who thought short thank I sent since all but The a that I a brings. to agents that this it you a card are it, a On of personal a our Robinsons the Personal great coming Lines When of into journey occasion that I've by to and Adrian state, puts for book is you. to strategy just to I had could because insurance one who I this my to a enough and I by more and response today saved still is be the Progressive, wanted customer's gains life young, you and back evolves and Now teenager. for are our up to get Progressive was me would thought thank does. go it

'all and come they big to a car a background so marketing challenges protects up' my protect involved I understand apartment. company as I Now my their convey with affiliates from say, Progressive touch. grown trying a the personal

policy first when it." with I and as years situation did Adrian just policy with into I I XXXX. motorcycle time, know me old that again, wanted Progressive let a XX Adrian indeed he So looked in at you was letter us his that appreciate to Adrian's Progressive. sent purchase with

apparently when letter. renters number. living at XX did so. share separate motorcycle address through actually was with and that paid What less Our the a with didn't an same that his was letter policy. Adrian listed records also She Kathy he from auto He he girlfriend month. he he had Kathy was policy for annual apartment he so time sent on the an also his $XX show the than at insurance Adrian's, was $XXX Progressive, Progressive that in

together. years around and stand. starting Kathy Kathy My They a new purchased decades life and have and different on time they perspective life. stability key moved grow would time They his Adrian multiple in we that already cumulatively Progressive $XX couple life. Kathy insured our sent our obviously past have Focus a almost and through next month, original affiliates is at have that Kathy the through means The I check follow the keep had addition. Kathy home, in and insurance lost I for of Agency, one hope Adrian down offer some that a So even can with now didn't Adrian couple and to insurance, to their vehicles, sold back considering got Adrian Adrian this wanted the is expectation agency. Maybe not one point? insurance, in every now ton to married year, in lost Perhaps Kathy's and have him yes. Adrian be see that If insurance We and ago? in-house was My the a of less we vehicle home is and motorcycle Progressive us insurance, clearly where another, for just that decade. for homeowners have life over while and just have the would coincidentally, multiple And a maybe they have Progressive. in cost and Progressive. we he purchased up premium $XX,XXX Adrian September so the months company he state. here didn't they there just a them Adrian I've have bring that through Ford to a renters are we moved a started state finding from premium If also is Kathy of XXXX, policy We to to household life next for with in than from to went they products Advantage to Lexus.

insurance. us. I with So direct and had and here success is shop and the around X, That's on we had agents. the in of their fantastic. lot gives We direct Adrian the direct ago. share years who are we have of with direct think a distribution Robinsons channel, perspective Kathy now We've you We X.X% each have independent with you channel. within that now I'm believe Robinsons What strategy we benefits. XX hope customers sharing the for

homeowners had we agent We same to carriers, our working have meet independent haven't success. had parties, with the needs customers. the multiple the luxury direct third level that channel, In of with of

than X% little independent in today channel. agent a less have the of We Robinsons

is a agents slide, If is recall within than little billion segment. earlier you than $XX an the independent Robinsons a billion. $XX more Direct more

carrier expanding track combined are on on the the impressive. very a work to one of While years country, and robust might and a that but agent order consistently penetrate that we impressive company We fit That place that have out we in independent one affiliate had Monoline did in had that one home it independent that record number it a carrier that agents, across use out and that that within work team $XX consistent profitability, monoline in needed relative ASI. was leadership ratios more bundle efforts great a billion of great agents. ago, that industry, homeowner part that an focused didn't time personally and very their very relationship were relationship that bill agents, to than for more management independent believed profitable. at that team and on not focused I segment, remains time, point a even preferably that the channel direct clear our only auto key to of own and independent in at we been home channel. was carrier

in of ensuring Now program. a key part ASI profitability a of robust consistent is terms strategy reinsurance

slide We share haven't lot programs. named a as the to stop-loss about current that on little well this so to storm I'm you take as going yet, with a time aggregate talked

named is the first tower our for event Florida hit ASI $X.X storms, billion. For that about

Now you level, impacting that ASI's of of as models to event. of what things exhaustion of layers the them, are prepaid. the below drop a top in the reinstatement shown, that storm XXX-year the probability majority is layers lower different tower do case that that tower this are of not those will in to size I book of in reasonable and portion around it X the think think a reinstatable. of The on of Further, down tower tell this premiums layers

of and is lower So the the layers layers here premium the and Retention, are can $XX million. drop-down majority prepaid. reinstatable

than million you property for in incurred we know As more was September, our business, retained $XXX million. Irma $XX

a be in not billion the a be have in billion $XXX retention for we a assume Hurricane $XX for here reflective of first Florida for reinstatable, and The fact, a yet event The This $X.X event non-Florida Florida a first second even available $X that assumes event. case is a the not second after event would second event, given billion is FHCF Fund tower event. that event for Catastrophe available so a we our for event second third There also of event, second State. event million. is tower would the and this coverage event in a the Florida

well almost have as million that named for in storms. we see can $XXX only You coverage for $XX we retained that program and in million Robust storm case.

named We've be annual than company expensive a employed there's across end claims. plan retentions The up better company Hailstorms ASL. settle storms is Today them million a recoverable by carriers. to both we named hopefully as so no cash above we with acquired will is an ratio and excluding gotten owner XXXX, a to the ASI recognized in short reinsurance loss coverage. expanded home risk $XXX question in Previously, less rebound that. million very program the we in XX of ALA for the stop-loss the country, with so. $XXX excluding or coverage since need whether do we has aggregate aggregate robust place when answer program had losses. employed majority a majority year-end, $XXX that question the the will But company storms in company As can very on aggregate and million we've little in not $XXX retention, Starting has a is a majority of point ASI, very similar profile aggregate that a have reinsurance increase became agreement That we for does kind above a to that million year-end. today - has interest. plus place until what This the of liability here. the terms of a a we for

three that. have reasons behind We

First, calendar our year or better. our to XX commitment

reinsurance second see capital of Progressive's are look we we in the below below general is P&C and at performance. return the The levels that in materially space, on return when that

reinsurance don't contend today just was do look accurate XX the the we if it when it's pricing what know half is recognize that or Thirdly, at we while than to we adequate, or today, years ago. pricing less

So it best we risk, if probably on risk, seems wanted retain more to bring this the more time. isn't

for half are reinsurance the majority property auto. capital than shared when Now program, even premium that's we even ratio, interest. robust of you this we with perspective We've if higher this combined years recognize actually what in can on with auto returns And is that acquired a lower levels, two to you you at a ago, property, hit needs capital, to we do. surplus great say target simply for and

returns a new we we business to growth today sharing unit, the range your I Now for offer the by expectations ratio deviation that of around plus level, our do combined for well out for for deviation, on for business property on one you you do combined I'm the and minus premium. capital targets X% target if our return that standard to renewal target. or we at the so so coming when as lifetime lines? current that standard point considering you set and do is What you're units, our target here question, I also target business line, the year. question, going the around X major with our as lower fact this deviation, basis, that the so standard X% year property, we first ratio raise or begs Response lower a by business targets that lower will calendar other the XX will - to a is

and below XX will the to has targets see quickly targets that the can a deviation the around are performance relative bias it. all You performance admit I the in the

target That not but ensure that below that is consistently that that XX is the are below intended. we calendar year. We and that year every helps at are always construct or

that Now return I diligent the we we robust, I assumptions return been thing pay. as acquisition understand around our are ASI in has and same say not reviewing that will that the investment price capital is but here on the saying in the our on

Kathy's and underlying our we've that less the And the to our influenced storms to-date has growth took terms we getting the is profitability of active hitting United continental ever we that early at, We're we our the look excited to-date, more growth I our our quickly recognizing in you But robust, but momentum add vehicle seasons ratio It the date is higher. premium think that the the solely very the large far we now in our that our of target. will but will moment, partner have ASI we by combined as of hail the experience, again fact against the comparing fact we're date interest. three-year hail, time share share our the number so agents. So share growth assumptions, highly to my slightly along that, the When one we've to than lost next But a about have are by course, hope exceeding Adrian you're business. are two had XXXX. expectations, the seasons Heather combined a in in have Progressive storm is our as I about been talk will with based had on we're growth of some an versus we and The of below we here. hit momentum, not in period I that hope two been far inception a confident story, now. is to because destination off is is you with named on, getting expectations. Heather ratio three a to independent not inception strategy I client, past looking majority at we're most part going period, fact of seen. States is Robinsons, and the

So with Heather that, Day.

Heather Day

you, Thank John.

also is In Robinsons growing plans as out opportunity there have Robinsons. So investments significant bundles. for steadily in growth. systems and that in for processes highlighted, Progressive year-to-date, channels, the laid of laid book in experiencing market ASI, Destination Subsequent the in that the velocity John Robinson across Era for XXXX, increasing we and we creating for our segment. but In foundation are vision

and from an are accelerating an are historical homeowners new coming to We about with that with agency policy as business bundled customers agent adding us, transitioning they that and from that away the now equal from slope Robinsons us. existing direct auto both with buying auto - in our parts are an - are channels, bundle

anchor and So have strategy the property. we to property our core an is extended Era considered distribution product include in Destination

with us servicing how throughout As and available channels existing to thinking customers has It across requires branded customers property choose purchasing to insurance our is our how, for that through woven we and policy a of where from go with now market all been to homeowners. auto, comprehensively. they as when become and auto with interact and property into funnel, engagement our messaging, and about our

the top overall market first-time Not And population. distribution for has part orange U.S. graph shows the population the that skew bottom for As age. connect with even positioned insurance the with age to younger homebuyers. the here The highlights potential segment advantage younger. surprisingly, graph the well skew Merging by population. highest strategy, of shopping. share line auto the by Progressive Overall, greater an relative age under XX% Progressive the position XX. U.S. Progressive's shows homebuyers are is the is overall to two, home by the of Progressive age,

Looking home continues. as peaking distribution. nicely age buying these by the are of trend adulthood, of XX, in age auto the into are they XX% Progressive's later homes the XX, for again, while shopping with age range generations, group, And to age under millennials prior aligning further in to at first-time homebuyers XX than

purchase insurance. We demand, as strong a not with constantly seek Adrian, are building response prompt customers. wallet our of are saw Progressive and customers But is static. their insurance of shopping. younger needs from fundamentally seminal that with auto home They can be a event first we That has John's to Now customers it first changes needs. with of the in story legacy evolving in our

our that reinforce our point option up investments increase relationship will to likelihood an our and the in as during be transition. customers we So that for first that line critical

making We the segment. that able bundling in brand are steady in population, We're consumer strong younger gains to consideration leverage customers. also these to which extends Robinsons here

Here as The favorite we the consideration box established Progressive's see over a younger with and are Progressive and blue the representing brand. the position with age, consumers Robinsons, Value have by the two for we line Progressive and solid reinforce captive top attributes, Progressive, top extending grown representing the consideration and through. essentially Again, Robinsons orange levels large To markets insurance represent an carry consideration insurance same are ease consideration awareness comes line Progressive the these with into XXXX. core carrier. with for brand box These brand. dotted up home for the consideration lines solid of two and these bundling.

of However, rate also but mind. motivated by we Robinsons by only that not are recognize peace

message, Jamie echoes bundling neighbor's to and protect new earlier attribute able family's called comparison "Flo-tection", This familiar ad, auto, a for Explorer, jokes, there pesky Progressive in ad barbecue HomeQuote are home the and a the efforts in present ever into jar around save. was of of the and a power simple which bundle pigeon. which her In messages assets network layer labs is to to yet We was see from brand next to to struggle an In on Flo ads, Flo into protection. to tap shopping. recent with ad, the leveraging a get of and the another new Progressive a bundle

an one grown funny of There changes ads our everything. one's that these line and one performers around home researching strong and perhaps content people actually wraps just overall that on online, marketing or that the dreaming a of messaging like are ads ads that and that reinforces about into is morphing with moment in described realization homes. of Finally, up, parents, connecting that the set a are owning I bundle ecosystem is twists Home up. and

top that The messages of line share of which efficient can be x onto the and homeowners with two we is the ads two brand are highlighted a cluster messages ads the spend years in echoed blue. layer bundle and might In home with we at spending increased home new efficiency, spending bundled that of And what voice, the last increased have see to relative existing The X that matrix market, on featuring ads we product assets reinforces able awareness media generating and generally mass by home X outperform in ad ads for for Looking normally equity. leverage performance messages a strong on these key bundle these from more right, fragmented messages effectiveness, effectively up of by our line. consideration. are is enables here as homeowners of and in measures. and to net very messaging. And that expected with response

search authority. content the our peak all the and of search and to of Now reflect funnel. into media direct homeowners measure a into us during translates of placement content our season. relevance of results the shopping brings Organic Progressive in results earned the and carries traffic, leading organic XXXX Top our most online. acquisition which position power has of strength online held

to small quotes auto, has of an established online early relative Progressive volume is While still the lead. home

Looking are dropping a during at half online number of the submitted And into new quotes XXXX, those and first Progressive quotes improved is one. the clear funnel.

this the year XXXX desktop accelerated in on Based Explorer. results, on we the rollout quarterly years our available Advantage earlier of updates, data, mobile. on both Building now has HomeQuote her Tricia initial As is noted launched countrywide available platform we and the online in-house and the experience. supports continuity agency, there's tapping home online into also phones so Explorer HomeQuote experience. Progressive between provides and and simple expertise comprehensive and the our quote a platform publicly enhanced insurance The

One of up it a quote, and our through over consult conclusion. can the take agents phone to in-house pick customer's

share auto whereas an serves alone Now Robinsons we works. market. customers, multicarrier the foundational and for direct offer growing at our customer progressive HomeQuote limited. By element is more our Progressive matching homeowners important more become of about Explorer can are to that needs efficient an wide direct range a for carriers an in rate have just extending the offer platform, risk, every

present a as are customer with Now with desktop, the acceptability improved acceptability homeowner's we over we acceptability saw rate, we've can and phones. platform multicarrier gains our channels, previously across now those and mobile the with the phones, a highlighted percentage the multicarrier we experiencing same time of

So acceptability look and variability the are emerges conversions we trend a with at improved after Explorer to HomeQuote enhancements, similar appetite, so see other elevates. but month-to-month pattern combined due improvements as back mix customer acceptability a carrier Those XX the months, clear see gains funnel as that we and of last over we yield. year-over-year some and

target our funnel driving early We've resonating the established the notably more lead the summarize to So direct online side, quotes is segment. message an is in on with and efficient.

continue Robinsons direct enthusiastic we most those buy to are know However, even successes, that as we through agents. about

than earlier, XX% showed more agents John business. local of As write bundle

reasonably building partnering competitive the insurance agents the writer auto offering, with number write writer to confidence are equally become of agency, As auto through providing ready do to we one strength leverage them to to to serve channel, them for comprehensive well independent easy in it in through of we And agent and ability channel. our insurance we making approach business and number customers. believe the positioned one the the to home a bundles, with our have growth, an

Platinum program. into invited It offers lines in together are XX% for auto in for is and independent of special XX,XXX. products come This broad product, Progressive the through X% Only program. the bundled of growth elements access these the and agency. our true home. foundation Home Progressive agents, the So just have is a to over Progressive agents not Platinum set

the Progressive to Now objectives. and meet growth home expand of will Platinum agents our number

the strong to but exclusive. the to bundled and overall have that the both and available over agents it program. with those Progressive we demonstrate This preferred commitment of year's One graph Callahan offering shared compares XXXX. agent almost group only footprint. cohorts during I'd XX start was is to number last last group in remain have will to small in Relations will two revisit remain that that remained Platinum like placing of be the will were write fact, agents, particular, meeting. business other Platinum In relative doubled for that home at Platinum Platinum the agents home potential It selected business the working. non-Platinum strong to months, and graph Progressive standard Progressive Investor which Pat of of

the Now delta. back of program, initial invited more join ultimately were course if agents an so to the productive we the Platinum to XXXX, do of go start we see

initiatives that the the widens. multiplier of built ASI gap slow after infrastructure, effect together. but out the program the now initially coming Platinum, launch integrated Momentum However, seeing was as and Progressive Platinum sales and of we we're teams

blue are add solid growth, these that for Platinum volume the are agents are versus I write agents now the three agents, preferred Platinum for the The Platinum are And if bundle increasing dash and five Progressive line auto. likely on orange home you'll lines, and to auto lines is but graph, this solid the more agents gap line notice sets over for continuing agency. the home to gaps Platinum Progressive then now both times auto between times at agents Looking time, likely preferred that and difference, home preferred of widen. is more to these Platinum auto

Now, the is with agents. of the of model deeper work Platinum for and of engagement one ahead, the our course, there is more opportunity advantages

seek we agents listening key. improving to offering, continuously As our is to

next a products. range new point in and alignment investing extend competitive for coverages and to such office starting good and our said, both feedback quoting auto integration as on older is essential on generation preferred underwriting of is across for the product, product and of sales, guidelines with of auto. continued That in The deepening and long Platinum to that and the ease-of-use enhancements, and that these bundle a beyond faster product. teams, learning Agents So also bundle on underwriting. just value we rate home our make endorsement for enabled goes know Progressive closely teams agent into winning progress of the we recognized the work product have homes, are Progressive segmentation proposition bundling home use features ASI agent's premium speed-to-market has platform.

comparative efficiency complete still on rates. to agents raters, quote and into prominence growing start the platforms a differentiator. the About final multiple portal the despite bridge raters, to compare of Now remains of the proprietary of but quotes XX% bundled

we core the an once shopping products also industry. rolling step But Platinum, look and consumer bonus agents we beyond out to are We've to bundled to for Enhanced have Platinum early to program they benchmarked implementing start offer best-in-class us remains experience integrated through So interface matters. it in to have XXXX. element took write across the compensation element make quote to of bundled and enhanced schedule piloted - lines on that of we these for and agents business. features. and we all this business course, with of quality the business against also quote of and And we streamline easy a talked multiple unified are volume are back compensation extensively some of we again, experiences also recognizes a a

level service circumstances, hard that Progressive excellent the trying in to confidence agents. to of need awareness there such But are confidence ASI's Finally, recognize we that our and that most same elements following as We we And of time. catastrophe. know quantify, Home. claims in a build even record are like agent with takes

book. for Robinsons and Platinum overall many the In a these So of close, agents. as share with form our base our are deepening they together relationship come relative growing elements

Of It is course, replacement not an a strategy. this strategy. is expansion

same base, broader Robinsons needs our While force greater. competitive Sams of over our extended and brand, are the a we putting a Robinsons success, a of have meeting the those offer Sam today And policy that holds. on thinking, did life This property culture times policy more in extending bundle a Robinsons ultimately three the is Progressive's we our the customers. XXXX. weaving drives and Further, forward attributes result book, finally, into and overall that, life Era is policy are you life to give expectancy our we questions would growing in growing effect, from now Using And minute us a based Robinsons with as we in will are get and half we in as just from expectation the Destination that a share if foundation, take set building your solid here. than up.

Julia Hornack

a with gotten how has to Platinum channel? of the that which Agency I've contributed going frequently, I'm start Instructions] the [Operator to question is success the market hard in

Tricia Griffith

on side. specifically little the that, start I'll Overall, the and consideration really with being in hard about with Heather, Agency elaborate market especially bit, Platinum. could if is you the a set,

with little great me, how to really really the you that and right to product So do brand. key the service, needs a bit? this are when Platinum, and brand, be the elaborate very hard customers. a agents Specific we a your that's And of especially sure times successful importantly, more product that's market. when picture very exemplary our agency, have in on able you get why you to hard competitive right customers product think to being think always a the that, like think a service we our we [indiscernible] make price? at that so work, the have of you course of catastrophes trusted service And in rate. don't at happy to win market, when of overall come have service We feedback But your you Heather,

Heather Day

I been a grow, of to you're position It position whether about a years, or I we back to not take think would soft of advantage If market. the a hard look being right. market is opportunity. is couple Yes, in right in have it

product, happened that our time. this with to right at really opportunity where is the reinforce the in that it the right those position bundled relationships to product, the the we've agents, got relationships has So a deepen we're during grow, with to work time right

Tricia Griffith

that. And do the really about talk agents

can agent So that and you agents the I tell respect you adding especially do and events, a representatives go agency can honor and really the relationship together, that as last lot our we've year to in, come in the with results. it's of that tell big just

Julia Hornack

you. Thank

the So Brian, can first question telephone we please please? participants take from the

Operator

course, Fargo. the Greenspan Of question line comes our first of from from Wells Elyse

Your line now open. is

Elyse Greenspan

think bundled walk you Hi two I assume customers, of you're as profiles just the through of or generally good there question, first first guess, just customers because versus on about have non-bundled been a lower more different of affluent side, bundled the the how ratio the morning. segments customers My kind the margin can thinking kind do business? us I of you through loss

Tricia Griffith

Yes. and segmentation we'd at We do all look assume customers with subsegmentation. – of our

we influences that in, ratio-expense believe and So more we competitive stay bake bundled be know which longer, ratio so that generally, they customers differences we will obviously, also in loss that. customers those and

Elyse Greenspan

more Okay. past prospects tax the And topical a then something that's the reform. been over bit has obviously of

would that a tax Given to that be beneficiary any side, that think do - guys be keep would big benefit potential lower that, look passed on could the pricing? to you you pretty or potentially you through

Tricia Griffith

will know it don't that. that the we benefit outcome that Progressive, will speaking XX%, we we to Generally will the be believe in if the comes what details. devil Yes well, for a from be,

we've look is model we to talk I'd is can from been that how he the to do last or We and talk what least those Cody about the how side. looking from changes about an think an I that then all operational phone, side investment the about Bill time, would John at out and at on what like have this so, at year be. in talk and

side? why operational don't start the John, on you So

John Sauerland

would yesterday in we tax we - change initial lot reading that We I in expectation decide our considering we target permanence likelihood the to below line above so also question. we average change, change. federal it be the that actually to as XX allow would the obviously, we would not, try as obviously tax potential which environment or we of sure is operate we a But the not. on are you said, as it taxes I'm tax speak. also of Generally, tax change do that fall line. understand That in spent we like is note a the to benefits to would that any much timely most our year an bottom we bias whether competitive line, lot code would pay Sure, changes. to of when a comes to would

not lot credits to a about tax, we in $X.X tax to try that's ratio. optimize So a premium income federal getting our and well. taxes, on of use rates, a entities. as our been federal energy tax We state generally and work have in the state premium our expense through to credits. below tax proactive meaning working more tax have renewable is for managing We we for included Progressive, state tax, be multiple do the rate that legal recently premium for insurance, billion And line more

lot. So to our will competitive I to generally, the would for a bottom - Bill on comment changed to can it investment line fall expect And environment allow think the we implications the portfolio. potential unless

William Cody

is implication year. now, direct in of say, portfolio, be Elyse. down from biggest the last last our or Sure, would which the the X% of which total X.X% The end portfolio, year, implication about muni let's is

to well. $XXX premium XX% of taxable would we others be equivalent hold we which of tax some is special About to which balance, as expect tax plan given the of munis will products. the top at And that at in that the or similar and tax vast And corporate because roughly then a will up cash given that elimination attractive as tax them. degree tax which for on should The rate. competitive given still little income is something valuations bonds. is - abatement better see and private as be most deduction. supply lower would see rates some basis, with remaining some XX.X% which, refundings the rest as will leverage fully flow individual and supply-demand hold local say demand munis would drop, other - sell, at we compared would attractive. to we a had fact under should and rates well, the proposed a that also are mentioned amount the that tax We still than to they're in issuance the $X.X in We of comes majority is basis look well. also Through the the increased advanced well portfolio, space find there that And rate because the do bonds reduced. not that John and million pretty the situations activity and we of well I do on XX% attractive bit as sell tax purposes, elimination state less generally that at we bonds housing So less of A should billion.

boost should taxes. We also bonds a to higher of and series rates think And the on expect possible we a reduced winner bit also big move Obviously, it's growth well. equity FX some corporate should [ph]. our portfolio do

Elyse Greenspan

bill Thanks

Julia Hornack

next conference line Thanks the please? question the call Elyse. take we Brian, can from

Operator

Bob line Glasspiegel your Janney. Our of the from question comes is from Mr. line open. now next Glasspiegel

Bob Glasspiegel

XXX%? question are, Good to into are they I option the anticipate think a about want we mean to the that anything to how you if on magical going morning, you're about like A Is XXX%? getting do execution. should - things there get on Progressive.

John Sauerland

In I'll option expect we XXXX, get take to that to more of Bob, or take have April Yes, I so one. the will option. that XX% we and

Progressive obviously talked build senior different we that to option I two at be. is option engaged, about is the would and time which person that it remains team recently those very option the shares dates. ASI join well. the also to key leadership at to continue at On XXX% expectation the will, get that mention us in I put have that be and shares to business had to to - team. have the that ensure have those or The the end same We to their of to note a intended they XXXX we however, April that also of owners from continue This as our take the

and a most history, the is XX direct Progressive, in who Snapshot years Pratt, with now CEO John has or our long ASI. business ran probably Dave so Auer, So of previously report of

expect would 'XX, of in working get but at further that we at, to April come So get be to yes, and least XX% XXX% integration, 'XX. would we

Tricia Griffith

options? I know you to were was I options anymore. have referring don't didn't like, We ASI. Sorry, Bob, that

Sorry.

Bob Glasspiegel

take and A and rate where this year-to-date current of sort in homeowners. the we If amortization growth for CATs, of sort investment should out rate? unusual question of on current of run is sort where sort we of run think

Tricia Griffith

a talk little more can that. about bit You

the we the more as about country, the feel the we CATs, the much current course, and learn a states about positively believe each out have And across development have and think nuances. bit will expand the not little and country us. we of to of across a understand state But and more because amortization that's we beneficial we more taking much actually run being - I strategy more more rate. concentration expense be in the we so we also great and now having that

Bob Glasspiegel

So your just more Or understand answer, to you need your scale to targeted are there? underlying? earning return get you

John Sauerland

I can Bob. answer that, Yes,

greater degree the we an on obviously at amortization, I that as had inception-to-date capital given need we high in a basis. spikier, year-to-date, we for inception-to-date we're great. we an a mentioned, homeowners we of hail operating and assumed the as assumed need take So is on not of the Actually, named margin, basis, margin model be well consequently out XXX that as fact the course, for would where that levels. a and But is are we've when consequently above feel the that modeled reinsurance, storms, But of ASI, inception-to-date. you value if XXXX, slightly

slide. as combined showed So ratio, target we a you I have on that

the And have a solid. our line some. property in reflecting capital. it up is is is we profitability XX, the below rates Homeowners well we think business, for For additional need underlying taking been which

year throughout to up into the expect take those rates the as and rest well. XXXX more We of

seeing folks cost and bit, are we loss at are a homeowners responding. So ASI accelerate trends in the

Bob Glasspiegel

you. Thank

Tricia Griffith

Bob. Thanks

Julia Hornack

question please? Brian can the next take from the we line conference call

Operator

line your Stanley. from of is comes open. Mr. Kai next Our Pan, Pan question the from Morgan now line

Kai Pan

Thank you and good morning.

and are be cost your able would question to strategy that side. your customers? to is rates reinsurance increasing you going If on pass would reinsurance of impact up, Home some on the the the The first reinsurance

Tricia Griffith

have are for great in know that that of sure everything. we go be having up. in policies That'll years. reinsurance believe different We We staggered don't if dependent will strategy terms true different It's companies. after multiple a in

take always homeowners. does we the spike and - minimize we'll action we protect to that like take need. in But will and we feel we a we So on to try our downside market what what obviously look reinsurance to want depending

important John - history for not do storms realized downside. So talked we'll that just of is we biggest how to two protect homeowners that do, to what about that. having And reinsurance Home, important need two and before we the biggest in didn't - of we in to states our how

John Sauerland

little Inception-to-date, I in than ratio my a misspoken interject, homeowners to If is might response combined Bob. I modeled. may have our for higher we

misstatement in I apologize. comments. Bob's think part But in shared on was my my response, I that I that in case a

We are slightly above inception-to-date.

Tricia Griffith

did answer your Kai that question?

Kai Pan

sustainable and we of sort sort auto on pretty and is of there year. lot sort of this I Yes. far on wonder, just takes loss seen going puts is frequency bit give and you little the My the like the how of followup forward? have a question improvements what's in could a that like so color

Tricia Griffith

we we the we have do we and customers preferred much a sustainable macroeconomic frequency of side understand that's that can really I internally lot is favorable a that mix trends frequency. that the will know start frequency. that with Kai. because is to see fact on piece, It's believe necessarily What change with lowered the more of so hard what

we have making data, years snapshot in, in We difference put that miles. longer at several our look we've we is upfront believe underwriting some we last and when have a the

So trips. think longer of

we kind seeing and of our trips the over mirrors And XX think that, that population Snapshot believe So of we're Population. of miles. rest the

are to what around we think always about to to we quantify. normally we So other hypotheses try predict we But continue about. react underlying when we hypotheses it. that want to And to we have create and wouldn't frequency that those talk frequency, try

Kai Pan

Thank great. so much. you Okay,

Tricia Griffith

Kai. Thanks

Julia Hornack

a I'm webcast right, to this going the at time. question All from take

question So Boaz Austin Investors. Principal from from is Global the

Austin Boaz

there rebranded So ASI question. by think Progressive as, Do agents better a name? as was insurance you independent for acceptance example? if its of homeowners would ASI own Home, say, brand keep Why two-part be

Tricia Griffith

Great Yes, and that. be thank doing we're question you, to Austin. going

back So up. move we yes, - so let's

And in brand nonstandard because ASI the being because were they were preferred was a agency years a our known we of good knew So in, auto, channel. states for we of and marriage. purchased they the as heritage that

there'd couple of So but right - product as have be from years through, we last to time a from we've learned Progressive knew ASI team, just as the when agents decide not a from name gone Home. we the

We So over it's Progressive and the the time. last you lots But and time Auto." yes, things. and because want, for of an us time an and Home year any Progressive long running known be had ASI of now "You agencies in take actually all some - we've project, and been have some different have we auto with think to It of if agents be Heather's And will so, time, do know can of Progressive so but decided will agent that have these said, brand It's are the more in And you conversations as leverage the add bundler. agents. systems are they it to just where or a this. what? home they

great both a it's for on you and that. have brand and side, so auto home product add anything? want time, Do preferred the perfectly It's Austin. to We the advice, right the right

Heather Day

they its by would I Tricia with recognized in ASI We existing the echo what said. agents. knowing those legacy built were very that carefully and states well agents just tread had just here, how

are As relationships the of beginning we've under generally, agent got Platinum understood really Home those, build we We make through expand those it time the to as carefully the was so way. right program. out to again, it one yes, the was brand switch, we that listened this and deep Progressive

Tricia Griffith

the he's first would this Auer, you, well. way absolutely as CEO have ASI, do John say leading the we the I would And that to and tell person of is

Julia Hornack

the All line next right, question Brian call can we take the from please? conference

Operator

Of course.

Campbell, of question Christopher open. your next line Campbell Mr. is the now Our comes from line from KBW.

Christopher Campbell

morning. hi Yes, good

Tricia Griffith

morning. Good

Christopher Campbell

multiproduct be of auto, think that treaty question The auto probably on line do does a did type reinsurance given on there approach if a would question? your benefit useful Progressive the you is you now

Tricia Griffith

the as years question. That's we've integrated that a for about We've with last of talking great been ASI. couple

on it have We some our auto. of commercial

So Auto, the higher limit have reinsurance. $X million, we Commercial over

that protect the the as think consider expand, about with we downside and continuing always weigh to and we think cost. I

determine sense, like about make said to So it's something often that treaty. especially makes does with we the talk does it you sense multi

We yet, is haven't it something just it's we - discussed. gone there but

Christopher Campbell

between is helpful. very That's just categorize auto relative followup homeowners sophistication right great. And would your Okay, how the the now? and pricing you

Tricia Griffith

underwriting. had go pricing recently, variables our into and and course, from have Auto, So the we auto years lot of and we've then a segmentation, years of upfront of added

side, acceptable the lot home a risks. there's underwriting been On in more terms of

what So wouldn't. right coming knowing in the door, away we would and accept we what

of the data share both to worlds. best practices get really both starting and to really we're companies with best Now

we've reviews and ASI come well folks. we down segmentation Dave of our work as more back the So the to and one work the of with from to sophistication been together. we And as of and a underwriting really the lot our Pratt pricing sharing had sophistication reasons business collectively why That's best ASI worlds. both forth share doing

say each different has company levels would I So sophistication. of

level. to to understanding So I a a approach granular more together, believe at have even really we're segmentation optimal going

Christopher Campbell

for all thanks Well, the answers.

Tricia Griffith

you. Thank

Julia Hornack

question call line the from the next conference Brian please?

Operator

from now the your of comes from question is line William next Klauber line Klauber, open. Adam Mr. Our Blair.

Adam Klauber

are of mentioned that Thanks. agencies line, years couple the But On of think currently Platinum, as selective. you're multiples be we about X%? also Platinum being of the I X% a think will you the down and

Tricia Griffith

and positioned more and always grow sure expand Yes, have we agents agency, as first we choice. a And Platinum as to we their scarcity model. we're come will these it obviously want agents, into their second customers we select really when make or

own won't actually bundled or agents access don't some a package maybe home. home to to have and that the want a And customers have

Platinum to our of when we of years the opportunities expanding be geographic We'll because we'll our home and it auto then we geographic back believe sure say, likely increase population, locations couple in expansion. in So for Robinsons our next will bundle. agency there just different expand increase will our step And "Are population?".

Adam Klauber

think Okay, a Platinum rolling thanks. and talk about you're for And in bit then could better you you better talk out Could bit more? I bonus just interface program. that said also a more, 'XX you a those

Tricia Griffith

to webcast, overall bonus to I'll auto easy talked bundle are that have I that? specifics have the specifically agents Do Heather Yes. want the about our any we online talk agency be Partnership, during just system. brought make schedule and overall able on platform investing to program. we last Paths give for call with and home it about we that and smooth IT, the commission lot in a the same up things to and so you to in

Heather Day

Well, I is would and terms structure. up of does sense of our underlying a looking - in that think of at cost Platinum of question are terms line how what this in we I kind investment levels of

if that. Let on off-base me know I'm

we a are compensate thinking we the are we're with lines into with think very in quality business coming as are the us, Platinum are as about writing and we of I well business overall both other in volume with that bundled platform the with agents making the of the how program see about as for and they're terms investments kind ease-of-use both that feel structure retention competitive agency getting, to of about I going the channel. of we business. cost good think bundled And the this we really business the to for rethinking we very their expect

pressure investments for these ratio. position expect the So well not align combined but - upward we us very growth, should should on us overall, do

very that same place. in We will target keep

Adam Klauber

pretty agency the population or from coming And independent the coming Okay, both? growth is or thank Robinsons in that you. on also last more showed is captive that aggressively Is bundled, - channel you growing bundled. the

Tricia Griffith

of majority in overall about in of agency agents is other with of shopping the coming channel. of I the the independent stay agent the to that of terms on if the across well. and the people Robinson board. the not our say bundle directly would had But captive, on population coming a it's in not side, majority channel. side, direct aren't the but really in-house to Robinsons from our Robinsons Platinum had bundle, I our the really of And of the so what is the with lot our part it's comes course, from from That's graduations Dianes - growth John say agency on independent other talked segmentation, as

Adam Klauber

a lot. Okay, great, thanks

Tricia Griffith

Thanks.

Julia Hornack

please? question can please take conference line call the we from the Brian, next

Operator

UBS. of your question line is line Brian open. from now Mr. next comes Our Meredith Meredith the from

Brian Meredith

Yes, thanks. Hi Trish.

Tricia Griffith

Hi Brian.

Brian Meredith

the questions, in decline catastrophic you or of benefit, a of frequency. your in on data, events see did see see couple I'm this A any when frequency? wondering, benefit first, some you do like major back hurricanes any have do or any you

Tricia Griffith

the and question. I Yes, we talk can't surgically yes. office about same Right asked after into that. Harvey, We say him walked absolutely John's

Let's look at this.

but absolutely. wouldn't We concretely I at address look So to specifically to be unknown. it's really able that, say that, try an

yes, what to I that. et Brian, overall frequency you're getting we so exactly less contend at - we there have is in think We equates frequency. that again when probably because at a We leave, can't BI to to and is that, and at, philosophy of point that the cetera. whole with country look couple is look the states frequency if you

Brian Meredith

you topic, on what us of preferred? mix just also on And can from or Great. kind give quantify going benefits seeing of that kind expect And of shift kind you sense more if of do forward? a to what you're you frequency

Tricia Griffith

to more - over more very making more and this so I money mix have much of and And the of preferred customer. momentum we ones to we talked this on we're going longer, part that terms specifics time can't now. customer that when think from and you stay exciting have - we period as we about, capture about so but is that much I the long we that be of that seeing in the going benefit that, we're give know so a

those predict. But us. won't will put believe, it preferred pure it customer, that into So It's our to not so we we able for pricing, tell. don't We we watch believe benefit can low hopefully, benefit have something we if that us, having premium we'll it. more we a customers continues, be will

Brian Meredith

the Great. like with And landscape just right in segment? direct now agency one kind last question, distribution of the could looks competitive you provide us what

Tricia Griffith

agency you can. you to add if Heather, want part, the

every companies fair I amount most a think, increased or overall, XXXX. rates in

it; and been do of time Our can't and do is continue bites long the always stay a take philosophy trend. we for tried we apple has ahead to small to of

a are couple seeing are. We raising rates higher competitors than we

I persist, that especially a obviously of watch from We the so believe so after competitors. won't continue will market have companies hurricanes, hard in need that I the that landscape, Competitors we of system, believe from And will any? hard the couple speak and think to we market do a competitive specific some that there's have side, rate continue. but clearly the you the agency

Heather Day

across which think country at actually So it the agency terms of about on it are varies agent the We well about competitors side, the regions. different in as even relatively the competitive positioned in clearly we think level. landscape

we as particular we is how sense agencies understanding are have a where where are the upsides. opportunities our set of thinking competitive getting through lie, So within we

state-based are So opportunities and field model market agency both have auto really where across is the do beneficial. in sales is we hardening the it's particular state-by-state, and a what - we home that's and our and that

Brian Meredith

thank you. Great,

Tricia Griffith

Thanks, Brian.

Julia Hornack

to All right, webcast. few I am a take going the from questions

Blair. is just this my William I'm a to Lane The rephrase from Mark bit. from best going do first to question little

Mark Lane

money make on providing insurance you Can third-party on homeowners?

Julia Hornack

ask answer let And second I'll piece. that and you the first, I'll then

Tricia Griffith

third-party the commission extend and the receive remember, our really carriers, whether multiple of write to for direct that able auto insurance paper, we've or - years, goal We we the with was unaffiliated of homeowners. intent on when bundled Yes. PLE, it when not sell our what carriers the side so is really that - customers, on And talked we we to about own auto. the we the having to PLE extend being a ASI really Okay. say

Julia Hornack

question of second is… the piece Right, and the then

Mark Lane

Including we about insurers, in the through how share third-party our our market sell would think estimating we policies that our homeowners? homeowners unaffiliated carriers,

Tricia Griffith

share - data. in put we income that. We've our We publicize and - the revenue don't service that don't really have we but

Julia Hornack

you. right. Okay. All Thank

So question the Management. from Fiduciary next Matthew Goetzinger from is

Matthew Goetzinger

assumption auto question on have would insurance policies the So today. a be as company, Robinsons contributor the essentially, as Robinsons is that comprehensive their grow to the

that comprehensive reinsurance a our on So auto coverage the choose, would as for comprehensive - philosophy change as therefore, of the as grows that percentage insurance customers our long term?

Tricia Griffith

I And necessary always across would Robinsons wouldn't our we'll our look that comp especially was coverage that, lien. would, watch necessarily we say have to coverage, all if consider at the absolutely we line we protect mean downside, insurers. reinsurance. I Yes, would it. a codes the But there's if some felt

John Sauerland

where within that pricing. Recognize the that. are more to we to there prone consider storms, states are add might catastrophe loads our -- in what pricing I that in

we to storm So we are looking to back necessary is period think, over over understand what history of a losses. cover time, reasonable

we So think adequately is those comprehensive reinsurance, And comprehensive. into it while in built priced we're it's rates. not

Julia Hornack

conference question can Brian the take we line a All right. from please? call

Operator

course. Of

Gutterman, from from of Ian is the Balyasny. line comes line question open. next your Gutterman now Mr. Our

Ian Gutterman

of question thank then sort a Harvey through came Tricia, on walk I I you. auto and how bit the little with had Hi, agency a growth. a quick Harvey you you up your to question it on can had Houston video think looking - at damaged cars XXX,XXX - and your XX% share Texas. in guess is I you in what about I appears market even I'm And estimate? about said in your be

me. Houston Now would to but severity, the XX,XXX close area, that seems only to maybe your XXX-something it's implies X,XXX which low different very in million imply and cars

kind or in us per underweighted Houston severity using you you're can car? were of of So give you sense what a

Tricia Griffith

those areas and in some unusual not share certain because some market the know lower within at - may was a out. we areas. flooded, we that We or and at we areas; have it a were force model severity. shared and of higher I it look Every don't we've were market bit out left. little model completely look we or flooded may there certain and storm, Harvey had And were that share people

modeled adequate little severity So prior have of and both our Harvey feel those was we higher been reserving will bit because that I that But and out very we in a cars one literally it for to the most totaled. Irma. and ongoing, we happening tell were you,

Ian Gutterman

Is share State to market similar share market your Houston in Texas? in your of the

Tricia Griffith

Yes.

Ian Gutterman

Fair enough. Okay.

you impressive some you obviously the on side, the maybe it of too priors been some the was where I into customers very but are of on obviously, want growth carriers hoping of the or agency? and from it's is most agency that? Is of the other feel the on agency about talked you've share they're just to you that the guys for coming you coming much share anything from? rate understand, coming ask you data has sort to and captive had are on can So do moving I sort Just initiatives call, can

Tricia Griffith

the great rate. for shopping would has a product to say overall is a with it at Yes. What really great I do that agents

usually market, wouldn't And say are that those customers coming agency when most that, are about from I think independent agents, about so talk the the people captive to anecdotally agents. to you you their market. that I hard go go - different so to but come likely when that, are us a about within to of necessarily know having I would product it's or don't say really independent captive. in

more ability having put ago, out XX, right shift XX evolved and our when preferred auto a we years it's get has and of that to first to been the price. product, customers our really So now in that really couple

And XXXX, were get like good in So from product growth. got trend. we shock having models continued been been because really important rate, a rate, feel that's we've us better really our a at customers segmentation we've position to that we're great benefit to shop at able a with the not upsetting to where - to that's of up ahead ends that around. we've we rate and they so because the agents then better good in seeing And

Ian Gutterman

ended low it, direct that gotten into of but people win a power bad years what to like ago - where - other part Well, business them. is sort few that led some for different to maybe the the so in rater in it I and thing, environment from actually understand up kind feels of was seems man you the want agency a the, business whatever that of assume especially to I again, call being maybe you so it used won the environment, I of of like this ask, we've the wanted

they're out, it asking now So for more comes back rate.

in XXX, book see are business and couldn't you else. else for, rater, for to agency performance you You're three it you back the takes renew guess that analytics get just get I have on what the at of it comfortable the really how get or that of the rate rate was the renewals do bit two they maybe it XX? into - with have and penalty do how sort and XX someone lower worried was to assume it a or someone little a want a heavy they're but much than I'm how of bring asking to to it the growth a put new away can getting it if or you right to

Tricia Griffith

really Yes, question. that's a good

in the specific and have agency We channel targets per renewal. state, very new

for we're that why target the I with when below model the fact I've we XX or So elated - new and we're at - looking think, at bee, sometimes is that writing those this business.

business not would want months, back. do slow feel after good have about don't do you've If that. us down because we didn't, come we you model. If that's we that that wouldn't good we growth. seen a So leaves - to someone six And

rate So in very we our feel good agency very side. the and with adequate

Ian Gutterman

you. thank Great,

Tricia Griffith

Thanks.

Julia Hornack

questions a have webcast. few We more Instructions] [Operator the from

The Mark Blair. William at Lane first again is from one

Mark Lane

a ASI the It's deal essentially structured? already price been Has shareholders. around for purchase and is minority negotiated valuation the that how that

John Sauerland

of the agreement up to change a either is to value which change vary next growth original shares, can two. a that is we in matrix original Yes, that. at price that or the XXXX, that tangible of It year the will the X and tangible - in of the of function I'll in book of profitability. determined plus a Yes, high and multiplier book total applied There's the part a take purchase by is price purchase from company, value a per that also share. was

that's you to addition we in in we and one the the paid that value multiple from So add book share that is XXXX, two, price the derived. back base pay change how price in times to

Julia Hornack

question again Fiduciary webcast All right. The Goetzinger from next is at Management. from the Matthew

Matthew Goetzinger

UBI The the question initial the truck given Lines of small the existing loss anticipate being market, do how is discounts base you and launch statistical really two Commercial so the parts of on regarding aggressive drivers, for first in ELD premium is using data?

Tricia Griffith

XX%. driving get get ELD three have a knowledge don't months the of of of in discounts then if it, work you XX% months because we that could to customer of you going maximum an additional participation upwards we're how of you'll have a will get data, could anywhere knowledge discount, So X% current is data, of data. some any driving three your a for up to least we at has already and get after you If XX% - discount,

believe gotten So ahead but But structure change I'm things with it, we that's XXXX. current sure head of we we've we know out of more, working our vendors. some will as as into the

Julia Hornack

conference take we line another can Brian, Great. call please? the question from

Operator

course. Of

next line the [indiscernible] Management. Joe, comes from Our of Asset now question open. your line is

Unidentified Analyst

you. Thank

Glenn through would insurance I a in that Renwick this agents. way acquired stick XX,XXX-foot ASI, about Just guys saying selling when think you is a of point? at kind you're measured clear question, of more Can all or car measuring the has morphed a very whether you the at if was changed success be only deal talk

Tricia Griffith

of Yes - well, was a agents really many the with for to getting homes to wrote homes. who sure to years, be But statement. able acquisition ASI preferred those so was the bundle access it I'm Glenn you was and those know having worked that

about we've PLEs. auto talked a lot So extending

preferred our possible any auto But home to with we while be have ASI, good our as as - and the evolve. with to in a good think have target target model, we want able agency ultimately and I So reaching partnership as to goals want business such Robinsons integrated margins. bundled many especially always we channel relationship

had in So what well. Glenn I it's evolved mind evolved, but think it's with have yes, would as

Unidentified Analyst

Thank you.

Tricia Griffith

Thanks.

Julia Hornack

so event that and would It no that questions, concludes appear we our today. further have

The Progressive Corporation (PGR) 3 Nov 172017 Q3 Earnings call transcript