PGR - Earnings call transcript Q4 2020 | The Progressive Corporation

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Operator

Welcome to The Progressive Corporation's Fourth Quarter Investor Event. The company will not make detailed comments related to quarterly results in addition to those provided in its Annual Reports on Form 10-K and the letter to shareholders, which has been posted to the company's website, and we'll use this event to respond to questions. Acting as moderator for the event will be Progressive's Director of Investor Relations, Doug Constantine. At this time, I'll turn the call over to Mr. Constantine.

Doug Constantine

good and Chris, you, afternoon. Thank

scheduled investor Although, our telephone found CEO presentation investors.progressive.com/events. instead and dial-in typically for leadership minutes a The a by question-and-answer members Questions events a our use comments specific of at our XX will team. quarterly asked on we portion includes business, can dial-in be event be with relations participants. of by today's may for session instructions the introductory our only

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

our XX, on year-ended related and Risk Harbor Additional of for the to where XX-K XXXX, Factors Annual Safe statements Report discussions information risks affecting available concerning those of December Form statements forward-looking will and the face. you find uncertainties businesses, the challenges we discussions our in other is

going Tricia? line, Griffith, introductory our some the will make our CEO, comments. conference call first Before Tricia question from to

Tricia Griffith

Good joining afternoon to and quarter us. We appreciate Progressive's conference fourth call. welcome you The

an during from toll stated we unrest. caused XXXX year extremely the was past reasons, few for social many As the trying to quarters, pandemic global the emotional by

past employees, defines rose this obstacle unprecedented customers, of resilience year these its theme challenges just As approached I how year. times. more fantastic Progressive closed, while The we every the on supporting reflect to way partners proud Report we by and the I couldn't truly during during Annual of be results, communities delivering these

last from by to profitability frequency, in quarter Miles an reduction quarter than in year. offset continues was is As which quarters, prior fourth lower fourth driven continued severity. the increase partially be to the benefit

to pandemic. to behavior by in the driving changes We caused continue react the

represent auto billion the given averaged rate in we over also over the the X% of approximately return estimated personal in approximately thereby states about April on we'll much customers about and if to premium, in when pre-pandemic XX filed pandemic, of of pattern. savings a between and There's $XXX driving annualized credits decrease uncertainty December, an distribution, In early million. addition to XX% reopenings, customers changes to countrywide at our vaccine our $X that and providing form that aggregate

continue Our are rates to and product risks of risks, as situation related which to teams the weather. abreast staying such include adjust

and of XXXX with and year of premium We which This written fourth policy X.X the the increase combined prior-year. more of double-digit rest growth fourth net continue policies having the an in million to over in premiums consecutive was resulted our year recognize quarter, billion force, both in growth. the $X

our by state segments was local shelter-in-place or to agency year-over-year. distancing, federal applications decrease slow stop the contributed new and that restrictions this audit social to heavily the of of all business growth, resulted in While impacted in COVID-XX put which more a our were and place spread in

result of saw for transportation a pandemic. services in the as business Our for-hire significant the commercial grew demand business lines shipping growth as the

the the On based are Lyft our our actual miles took year with hand, estimated hit on decreased the and a the and premiums in other during miles driven place premiums term. restrictions Uber and over as policy

situation loss continues in We're faced other that Growth Despite enhancements faster on Atlantic an strong XXXX fourth segment. season underwriting combination make the Hurricane changes to pandemic, for Our XXXX and the full-year. the and light growth margins to year, our record, personal property well. our product. as we closer of place the be with auto challenges get to strong managing the and any bundled will Robinson But invest we in a Throughout to recognized profitable the have than in profitability to business the pricing confident grow. had we it target a of with business suggests product active our being our quarter. in continue growing we're most continue

day our first model was newest product January. in elevated Our to

of we snapshot a ability in that to also opposed months. non-snapshot we This, to to after consumers our rate the snapshot months, launched a see Program, to snapshot part normal Relief had purchasing available a As which six change their the as gives adjusted policy. to addition Apron of days customers road existing several temporary rate XX just receive allows for snapshot test, monitoring before

for behavior believe or either that opportunity some While we in their this frequency commercial customers We're pandemic. is investing countrywide, lines their not also a a available, based result have lower driving as of of changed where to perfect business. rates on the available it’s driving our their habits

rates Smart now XX bought Our direct in quarter truck now see the fourth And adoption asset Haul, is truckers, added UBI and product XX was last UBI BusinessQuote continues is Illinois is the states. Explorer went market. live during Also which week, active beyond for excellent platform states, in in offerings our in the our and channel. ProView, great trucking our program to expands available for-hire to Snapshot a

our Looking we're for reflected to I'm that January positioned happy results. to further XXXX, growth well report in as

efficiency, pricing forward. maintained will Most pay know people culture, claims We importantly, segmentation, and dividends in to our management. and accurate we handling, which continue our we make huge supported investments expense cost going

at over it thing investment XXX you our a period. public of us in both past to Another you company. of our if years. return. worth be we'll for take of investment celebrate grown would especially the Not to all million, return have IPO about the $XX compare same the fact, want compounded to the a you if bad in thank just I that XX.X XXth XXX present becoming this have you that shares annual say initial to our S&P opportunity it April, end X.X% exciting over by that to in bought and a at XXXX, investing over is anniversary Fun shareholders, cost A $X,XXX; XXXX, XXXX would

the inside it and with We've I open Protective agreement I'd Insurance very culture. up employees about how like with to Before for products, Corporation. impressed express questions, Protective's I'm been pleased

said we with is expand greatest the our and the As excited larger commercial and fleet Protective grow in to to additional breadth expertise product affinity a offers, lines. our by opportunity we're capabilities providing lines past and programs of

share the appreciate time. at acquisition As can to And you information able conditions. this additional I'm you know, is we're customary closing subject that to not sure

information for will I Chris, after closes. open think can the now. provide We questions up additional transaction it thoughts we

Operator

[Operator Instructions].

Zaremski Suisse. is question first Credit with from Our Mike

Your line is open.

Mike Zaremski

I on I listened guess the to of to maybe of and you Telematics, Hey, reacting great. changing your Good question first afternoon. Tricia some I comments, used patterns. kind think driving word

driving so. I patterns. workplaces think about uncertainty, we year settings that probably to continue coming people's talked about know I all You the future or adjust will And, think into

kind the more any it to initiatives feels in more in or there important than on order Telematics to in given all just curious, is to of could it ways kind So risk? price company better scope how be ever, like of kind of understand

Tricia Griffith

to are Pat have when question, and something that risk relevant just a great were that to opening of talked talking about came we when remarks I that have Mike, Murphy driving really my the have Sauerland a be I did discussion Callahan desire and to out ratio about and what John was actually people people less. I John is the and It’s

a not, so Apron partially and time record Program. wanted period. And is maybe Snapshot work, back in our Relief And to of we time monitoring in essence, we are people able really they're provide created going the partially shortened the to with be because program work, maybe UBI to

So XX-day really period that important. is

So to driving this to if we the they less out discount, road can a or that down, those they credits our early severity frequency actual our reductions gave on think addition have USPS mail We and rate and for where fantastic and millions receive and alert to are make offering, that customers their to current option we've email, consumers. sure of option. don't they we're the driving this an tests for for send customers, that's of of and a do out opt emails, want sending our goes we

Mike Zaremski

flush that I'm out. you Okay. happy

on final Okay, my question advertising. direct-to-consumer is specifically

these and lot win firms about space, a that leader, And any curious marketplace kind at even if of you we kind influencing and the of clearly incumbents' marketing incrementally? is fast. you're guys are of of how to new into the this kind think ability spend Progressive's days more sandbox. insurtech any least seeing a these about questions of to get Progressive influence in But of kind pushing in I entrants, of think economics growing

Tricia Griffith

of buy space that long-term, of customer we where sure or our we've but course, we've an media over I in-house seen not the just allowable going portion a into feel insurtech is I the for allowable our under think Yes. we our of our a acquire had or like cost, years, advantage, -- under costs. lot we as when and a make at a have we mean large that we competition that the

much proprietary with which to believe which I And acquisition a we us in lot that. that we costs, ways reasonable are But very lower so can't have into we go of do insurtech. than believe allows

John Sauerland

sufficient. add, up, believe our what only noted going the up. Mike, our And is you to advertising would is are that spend I spend going costs meaning we

up So and we to spend have an allowable segments, acquisition cost by we that.

up, go very should effectively if customer you're that we're you be to very in after it's speaking, all advertising set assume us spend the mediums. efficient our generally continuing getting to the So seeing across

would newer really the in say those spend our impact advertising I entrants seen in we level, So much aggregate from at haven't space.

Operator

with is question from next Our JPMorgan. Jimmy Bhullar

Your is line open.

Jimmy Bhullar

pricing are a focused And personal like growth more competitors, auto margins of many the trends. seems question everybody. especially just reviving larger sort your and first market of had because share ones, have frequency good on for I been on it much and

go in And seeing the of pricing pricing? you you as begins through terms are soften frequency what pick-up, to continues we maybe rest of So that year? to concerned as the are

Tricia Griffith

right to Well part. on to us is an thing for realized average so that I the now give it's the consumers surgically for in that sure we and went average. And credits cetera, Progressive about think try X% important whether by or I I on et think initially all talked of was do discounts, giveback,

that right sure looking tradeoff manage channel each we’re and to products discount between the and at make we growth surgically to profitability. So very give state,

I'm that, think I things. assuming competitor doing our So, similar

really about it us, and profitability. that is growth balance of For

pretty reduced fact grow of rates, substantially and on down XXXX, the in And to even full-year. we that proud part pandemic, able sales in first both shopping that prospects and during the so a were with the we're of the

big competitor look So competitors see prices last set John, premium prices X.X%. but We few February, down down. down, our to look think correct me if is that's -- are I'm obviously really this still prices rates across at concentration. wrong, about are our if we a I

yes, And challenge so, you be January I challenge, results. think see a to [indiscernible] continues by a it our can as

Jimmy Bhullar

but you you business the should And what do in immediate longer-term Okay. we where are highlighted from business? sort then what aspirations see on your your more And the your deal? on Protective of impact of comments, with an can

Tricia Griffith

Yes, details you people I until culture sure to us were into closes. the transaction that a can't say, to of that. appreciate the lot we can addressable Protective. with I'm attendee programs. access it of a market go and And it suffice larger gives impressed But

Jimmy Bhullar

more on then anything you are exposure? to anything? just terms disclosed your of have one disclose Or And maybe in able you Okay. Texas

Tricia Griffith

will store. and obviously, $XX the Traicoff, And reserves. that, million data understand this juncture in with Well, was is our kind it on at confident coming big working reinsurance. I what of I to pierce team the have is Gary But can ultimate a our I'm are our our it say threshold retention that losses

Operator

Our next Phillips question is Stanley. with Morgan from Michael

line is Your open.

Michael Phillips

either morning currently Thanks. continue acquisitions you lines. afternoon. Can either or maybe need, line to have expand in it's your talk given about your willingness your to just guess Good to I good non-commercial commercial more space? you do what or the

Tricia Griffith

to the those do we or not private at auto, to companies; partner. to do agency had commercial faster, side. a And to in to wanted or across When you or organically. lines, look we ARX that we passenger most got both access been to we've for market Obviously, buy; acquirer the acquisition of where got the have buy, in not to point. X to the big whether build we we it's certain with gotten thought a of we terms us prefer something build able the customers; part, Protective be always Robinsons commercial we we always have in looked at a addressable may larger grow may landscape, or tried acquisitions depending on that lot at to We have a look if

And in the over the lot We our fact, well have And terms right as is the in I commercial of now, talked though, a about think irons Horizon fire Two growth. we've in opportunity. biggest horizons. of on growth years,

is our went XX relationship out so that focus our bought XX I with we we than companies. grow, vehicles now just from to really then to right few talked network to of less different and transportation And and And of business. product, continue about, states, course, in XX small fleet companies rolled continues to which a our with grow

that's our So really focus.

do that have sense, really we XX to to obviously we and in things plus look so on We have the prefer we'll I something if talk obviously, about grow. years. exciting Horizon for so Two done it but organically many would that going at we If makes grow see can't past

Michael Phillips

Tricia. thanks, Okay,

Second one market an property me us in how for guess product? then talk the on about profitability, on homeowners terms can of satisfied somewhat in related, update there you reception comments, and give the is how your I with can the and mentioned results in you related guess HomeQuote I business, for you introductory you're

Tricia Griffith

Yes.

satisfied the the take and if including of That, out with in we and Let does up quarter. weather, feel we're you take good whole And like me, course, look, year. very not well, a I property in other was the weather-related, results fourth cash position. January

of deeper have is last those year the going February we for year not great going put -- not a another the model; obviously to rates taken up and of load be events. is industry was to month because for storm to hurricanes. we to a So winter we've in great unprecedented our continue try And a segmentation. changed product we've February be substantially,

both with continued channel, Explorer, So product. agency our segment, board I'm to the there. think Platinum across referring to increased we've I happy the HomeQuote with happy ability direct our Robinsons the the with that I'm in growing happy fact happy I'm we're And agents. and you're very

So we bundled we very our segment. auto And expectancy. channel; the growth even for growing that. having along about basis sure was allow with ARX auto Progressive those unaffiliated our really been one think about other to Home that's for to when agency life And higher customers excited make than many we're partners. It's saw you have that us our life that acquiring is extend home highest to policy

have of retention, to We want our needs customers their so people when the have is them. want we So the course, wheels Holy Grail, for didn't change, also home. train those but as life, be

out although expectancy our we're the and externally, other paper I'll are to of those higher. some not. that So toys or about products extraordinarily talk see on don't able you, other Robinson customers we tell versus and life offer we either life policy segments And on the this on

invest in we'll with very to continue so that And And area. happy growth. we're that

John Sauerland

team And we're taking profitability. on action, Progressive Home

our is taken ensure comes actions insurers in to of a we basically annual year, all better policies are also our our storm We've hasn't are up more for as We've products writing terms aligned to that earned those we're where losses. homes last risk took policy to it taken well coverage, property with interests XX.X% rates steps in. balance storm that So to ensure when our diversified.

actions this be start we've continue think Tricia year. this February to should that I it's actions coming So upgrades as of I taken year. know not show take a a we'll to But that tougher surprising benefits lot would Tricia the noted, into we're for noted, where home. the expect Progressive in have to the more has lot home agency writing the we get we profitability auto because as again, team Home But year. And for a right channel. wanted I taken think

we of billion for of have opportunity we're think that now profitable over risk. had know, a we bundle not through very You insurance auto the agents to would believe with

Operator

with Ransom & from Dowling Our is next Gary Partners. question

open. is line Your

Gary Ransom

proxy saw increased it's follow-up which up I channel, actually policies agent to And saw agents. I the that a the you're of direct wanted bundles how was side, I I independent -- to I going Yes. a on is Robinsons But for of get you because that? us of that give and apparently bundles growing XX% Can sense that? the assume guess the I a also there on to trying what's well the XX-month there. in Platinum you as are sense

Tricia Griffith

remember Progressive them Yes. and fact, those bundles, are we're Well rapidly in more growing partners. of side. direct even And with on are Home some with unaffiliated the some bundles

So grow rates Robinsons channel. to and direct continue we in the both

right that that to started the in But states happy. Robinsons continue said when ability direct and concentrated sure John so to to like we're having there invest country where acquisition. -- throughout that we our we the the make in with side, have We be and growth happy first not the partnerships the expand the very

John Sauerland

annual you're policies, Robinsons. clarify, to away of far patients enough can And the it's just the certainly agents, exclusively Platinum majority predominately They Gary, by not just channel, in direct by write Robinsons, auto. written not customers, non-Robinson are are to Platinum of those are policy being right offer annual for annual think but part the who but we there. do policies with not

Tricia Griffith

that We called out segment.

affiliate it's Sam policy The you Robinsons. Wright's where partners. and Diane, Wright's recall, had we are our home If and the auto on another

Gary Ransom

Right.

it's just that are And Okay. that the to there sense I And Platinum among disclosed been that continued for on a you I'm you? interest agents get there a of the going trends agencies, is underlying increase, years bit deal trying of steady talk kind you three you've can last the And little about think a for a too? the agents now. with,

Tricia Griffith

and sure we out, to it cetera, Progressive. developed, grown the places and a though, a we that and the we sort that When they make annual Audit want country, as them Progressive more with like be agents, agency. went the and that agency. realize when one number we and to model. you're make the but write Platinum to might have scarcity some that choice you able is or want to And to around necessarily we smaller we've comes make didn't in are in first Robinsons, in Progressive et effort we really some give What that your often to rolled the of realized and because wanting write policies ability commission write we there it with be they what are willing But agencies two door, really Home

that's desire, and the so Platinum And of agents. really reason been number we've why the expanded

John Sauerland

number And bit are But a growing couple agent you had the We on. saw relative as we And have -- for if this wondering Presentation. Investor Platinum able shared Platinum believe previous won't population, Gary, rest to has But if Platinum a regularly. a lower the agents, you excuse is that would would agents to continued answer I me. I yes. growth agents definitely are share the the than we faster XXX had we agent close X,XXX COVID that terms of we on than trend you're be probably going year, in added otherwise, not tell of

Operator

question Tracy with next Our Benguigui Barclays. is from

line Your open. is

Tracy Benguigui

some about and I and combined bit we would static lines, commercial returns lines. targeted Could homeowners across talk your assume risk adjusted on you color you. that's not is Thank ratio, just capital? provided on about XX% thinking a which business

severity? characterize targeted So how your of are ratios combined that for you higher would businesses

Tricia Griffith

talked our XX%, this, amount obviously in aggregate. is about we've fair a lead We

products, ROE then and understand at together. So costs new being try products look the different. we channels, as and every acquisition we the one two look business, because to across our how those interact the also at on different And well across XX% of renewal across

think don't their we the we of although risk we we of so those about anything combined targets And other keep than XX%, adjusted for rate our each as ratios. return share -- develop

John Sauerland

we that little, of severity and product targeting Investor your need there's combined we volatility we Yes, line not also previously amount by product drives each we're in relative and elaborate the that hold the longer ranges some of correct it's into just a tails only capital, lines. to claims, speaking results of that in relatively Call against the to account and it's ratios that shared but have generally take those line. what And

ratios different bring not speaking, are returns those by investing that ROE product by together of there target So generally product business definitely target our we It's all that perception lines a by and are perfect. and ROE. common driven across of But combined line.

Tracy Benguigui

I thank Yes, but you. I that guidance, with you slide. you that. some, said I'm Okay, guess, familiar guess, underlying disclose for don't looking

move around is I'm broadly, just want that about know on. don't I'll comp? bit risk talk does and in comp recognize I that workers looking it I'll more a your at appetite to Protective. that So dance curious what business. really you bring workers when

Tricia Griffith

once the lines have point are us transportation for transaction Yes, successful is of to selling been of was programs. Lines And past. again we it. that's Commercial talk call this have Progressive strengths really a where and I'm until Bailo, say and close But, in talked transaction excited industry, And all about you subsequent President the their well in what'll as as to that commit coming I I'll Karen in closes. for big about of about complementary quarterly can we affinity talk business our all a and coverages the that we

Tracy Benguigui

Okay.

-- Looking

John Sauerland

ahead. Go

Tracy Benguigui

go no, ahead. Oh,

John Sauerland

the going just the business was to weren't way more go for we independent through to lines, think opportunity found it, have market agents, complementary to said, time, we product into order offer in Robinson to to we penetrate are recognized the independent I own we to right? where order agents. our write vehicle generically, about long that home, a we and So in we going is had in

vehicle we route. in rapidly preferred to the that so line. continue to our necessity until didn't it wouldn't we And So saw that do probably to absolutely take have been grow

fast order other think you business about of in as some to to think being business complementary continue as to the we I lines degree, So should grow can.

Operator

Citi. question is from with Suneet next Our Kamath

open. is line Your

Suneet Kamath

the XX-day take terms up of prepared been in relatedly, book, rate through far are remarks, terms you what and that in how Thanks. of Did snapshot that in the the feature? offering you say your has

Tricia Griffith

in We It’s started it February. pretty new. offering

say, been of I I off little million a of kind so out think through gotten on a and that we've X,XXX to customers, be far had sent it's might want have to gone X number. maybe just bit

So it's relatively that. Again, new. we to file had

the get in every you approved. regulators put, can't that some it system. UBI. pretty flows And to have have their customers, our driving about really state in hands We'll on states, do through we to of we're did they're more of rates, less. that if ability that, lower the the excited we're once I that don't So next kind because think quarter But through

Suneet Kamath

time Got year. know it. about I last guys in of sense But And is, XXXX was of updates believe one of then held just any odd my year, calls a of question models. sort I up. to homeowners, your you some predictive kind second spent models lot new how of on these an the talking terms

last given year you anything say odd how was? If can

Tricia Griffith

weather overall talking you're the saying you about our models, internally? segmentation or models are for look like when like And we at models

Suneet Kamath

related Yes, weather. former, the to

I was were you what think that highlighting? guys

Tricia Griffith

planful models assessing coordinated and a come of reliance to And and look his at our have big our on our a more being little then our more being really placements risk And appetite leader, focusing Yes. I across he, risk the is with on, to reinsurance actually, is In bit and sense so we new looking to more a holistic at who on that going reinsurance. think be and what was enterprise. usage is opportunity hired that.

made off of I But rarely course, we but know do few storms immense been like word year that on numbers again. storm then a that of So Clark season had unprecedented. winter get of And Karen hate and in the know weeks terms you we bit I a was using Hurricane numbers it's last have these the rely the landfall. pretty model ago. a little that, I

those you Having into John? reliance understand our to with want Brandon's tune So generally help add Do the us models. really will on models take and somebody account. depth, think anything, I those fine to

John Sauerland

No, thanks.

Operator

Our Klauber next Adam William is from with Blair. question

line is open. Your

Adam Klauber

you Thanks. a And How's can needle? the coming? that will BOP at it? the start actually you at aggressive more where with rollout point Are what point moving get

Tricia Griffith

Yes.

in our and more rolled XXth invested just working of I couple say out exciting And we team because over I'm the Karen her stay. process. point aggressive our it's yes, years. it thought with last it's new we're at So where product. with the We've to would an get obviously

Last you I while think going side, can't our rollout state Would So our aggressive a I BOP now. lot is to in on, give with have the much word system you to rollout, the noise we year I you get progresses. exact much there's use on move so so on commercial going the Karen's the as but want year know really accurate. of excited

Adam Klauber

more Great. have then year obviously was And recently? TNC last down for picking-up in that various reasons, miles driven started

Tricia Griffith

closely. really it Uber race course, we And as it up course, to Somewhat with Lyft. have and behavior. work them pre-pandemic with level. And of differs we're state driving great pre-pandemic watching we of not that it's relationship and not that and was both to the watching but And by well, where on

Adam Klauber

question. sorry then and last Okay

of full lot the shopping increasing a lot a a more you or through digital, is of customers vehicle? still that of do amount or is whether marketing, from it way, actually that is home, auto of get buying mainly it's You quote digital doing customers to the

Tricia Griffith

think over buying the way people I lot have and over I increasing if don’t want the you the been that a years shop been know percentage, way. because of that's years, I don't but do that increasing John, that's No, exact

home than have In be that invested as portfolio the buy on and lot had fact, and them with allows we've agency to online, both able auto which ever more to We've a our also we quoting, to on do that bind ability of quoting HQX on channel. well. and and

coverage one where, shop. of pillars and So when be to want customers broad strategic is our how

on bind my I'm want able or increase continues as to that phone, if agent to be an So I well. with online, to so or

Operator

[Operator Instructions].

is question next from with Bach KBW. Our James

open. is line Your

James Bach

for specifics forward? obvious for the is looking and growth like So kinds launches of how can more those to enhancing in environment, how and rate explain those payoff sustained possibly product Progressive, that is the launches moving those just the investments also the and growth immediate favorable beyond drivers important rollouts? the investment you product And

Tricia Griffith

a Well, a Horizon we strength I been I One of think launches are at Two, we believe it's whether really or about our what to important. look industry-leading rollouts, we'll be product ours. talk segmentation, ours continue of think, as the And in is when we that believe we in strength

-- of on should just I we're segmentation we for the January. us the side midst right risk. that that, again the so XX say, And is auto the we our in finishing rate are gives right greater in rolled XX which product And out

I the so think feel in way our flux. product product the out NextGen been model. We always models our on we're it's rolling And the always X.X same product And side; strengths. have

-- roll we never better. we model, product a we'll to say better, So make out not try it we never make it and try is to here it

value So there's more see models consumers little adds the consumers. if that we the get product profitable we add can it have, that to into way will things once are along

very and a competitive it's prices, -- So price for we is one our about are advantage model when sensitive this of Cost which and segmentation really think a of course, period industry. big is us that such product important. And important.

John Sauerland

in example, just immediately. add change that, an to to And the see as we mix customer

product preferred introduce towards model, set. every Customer time the we've Preferred we're seeing predominantly of And new our end that a a towards segmentation shift enhancing more furthering marketplace. So the we been

see benefit market We that new part at It's very of again, who And a underwriting a find rating believe huge terms we're or who we're when lot So ensure higher we our approaches. converting we've it of and is business. invested writing fast advantage. competitive quickly very the in to we're variables to a we rate. huge a

Tricia Griffith

Yes, continues the a that it on get in that I'll of an a few add momentum. to into we excess we're with just book Robinson goal internal some at years point million well Robinsons to ago, and and had the gain

Operator

with Robert is question next Our from Sachs. Cox Goldman

open. Your line is

Robert Cox

Hey, thanks question. my taking for

the characterize how I seeing commercial wondering a premium the agency a I basis? you're of small would in on So that demand lines business the direct noticed channel XXXX. And into purchasing bit percentage owners from was increased you

Tricia Griffith

The is new. direct basis pretty

would a have been fact that the that lower to counseling. through bit agencies be the we're did want still products on We innovating investing of on on how again able of for the XXXX, the where, fulfill seen our channel. is in investment BQX a and including shop, our tell some it's we our closed. BusinessQuote agency so commercial and base. also commercial the see when And you a to of shift it for that people based little lot have side, be of direct majority a that were and with of guidance lines can the consumers And the the future through coverage, to So is history But a pillar consumer. want have of to majority and complex, agents, shift, broad strategic in

business to side. increase BOP it's see still the continue, in in while on GL we and small believe the direct majority So we've in channel we’ll the agency invested

Robert Cox

great. you. Okay, Thank

Tricia Griffith

In we in my added direct in that year. the I said remarks, fourth and side quarter last happened had opening BOP

Operator

Instructions]. [Operator

Greenspan Fargo. from is Elyse question next Wells with Our

open. is line Your

Elyse Greenspan

not at and about pickup first but focus thanks. look in-force versus at month, Hi, right trends of I'm if say you then results, one trends saw obviously I policies January. we on know question, monthly you we My report talking saw kind December much flat sequential in I look good in you November, December your were of too a often that guys the to policy put even

think sense to potential a not a growth of within policy both impact couple think as how Sorry, of about So could as and I'm just the like, here? business pandemic we know, in underlying and much kind thinking from you trends new I you. trying that's a the the market, renewals Thank get question. part about and the of

Tricia Griffith

Elyse. you can talk and calendar about And the think then little John, you anything then about Thanks, into we how bit growth. I'll want. a go effects add

if remember, XX-week at a by you're particular, in So different new apps quarter. don't we looking In XX-week we was four XXXX, quarter go have calendar. and a the year it was a calendar, Gregorian

it look about should or say on maybe X% the So year-to-date but side was fourth new X%. growth, when app at in quarter the direct was you down up I agency,

particular. in the last up quarter three, apps If you agency direct about down it and quarter, for X%. X% for was These in year, at look in about are new

proud continues You've that seen the of we're fact retention our retention very increase. statistics, to our

know because are of moratoriums the of also We part that is non-canceled.

the as that And we and things to and So obviously do continue portion can't, think like at the lines, depending four prospects. will change to to rates the talked the nurture year, PIP on dramatic. course, nature no trends. on our with reap took that trends How both really to strategic measure to able obviously, though new what focus When has of side. the are we we're we know that up auto about growth down of I one also side believe a last pandemic. on preferred and pandemic grow But have because it we side sales the we the doing And think on on about retention both I've was we're we I going benefits going look growth, and up be we our is of at to beginning, our commercial to continued said even to react on pillars.

our the first to culture, our our we on make sure turn, one, People have work to us people, We're going going they their best we're with our serve and ever. to that want customers, brand. reward environment in focus The loyalty.

the out year. prices; about of a this digital, and media, bit message system. talked and continue care we send taking a costs that we out protection mass of that costs competitive sure I've about little it's whether and making savings we deeply So

us about our do of the we talked I because converge. love when and coverage. brand, the industry-leading So course broad that people they segmentation shop And

and focus again And So this another the on denominator we're is because the continue tax going are year we consumers. relatively the those really going to April know be March low. write compare be will to hit odds timing exactly no and when it's shopping able in to is ready -- income and -- to hard to going pretty we're don't that. where year might I because With come was that, and there returns more to payments, stimulus

of there's So a lot change. to going be

to make that to of that product rate the but some we're of core have is we so nimble like and which sure one well And ready we've to levels items time, as change. our we we'll constantly is talked naturally, models my because And Snapshot, team in our pay, about I I do positioned, customers you're of. are profitable, where rollout our things to their our other personalize time make needs and needs plan, customers. that organization or if trying CRM someone a our now just more some important to sure Apron taken know the be we what also competitive, what for are think done, know and really know on place we about and retention values. important this? is adjust time other something for different little pay right bit We adjustments I experience things at talked our and care has we called to it's more

to will lot happens. as going year, lot mean, a don't see, to We and going happen of that's longwinded just the states and more? last have And will the to I to XXXX depend what's be this when data, and pandemic roaring think XXXX to I it answer. variables think a quickly people really we're react it. if of you driving watch a So going frequency out and be will of the I on to open, know there's

Elyse Greenspan

-- on has moratoriums much it? on are book the of non-canceled How

Tricia Griffith

moratoriums How that much has of book are non-canceled? the

John Sauerland

it have a by payment own of our lifted the have small this requirement is less. is accommodating that that, people who states there I most But think all to time. book our moratoriums, we're fairly at extent couple might portion lifted behind be the may have to states be large Well and a plans in choice. And

Elyse Greenspan

my that's helpful. reinsurance this year? And to make your are to looking you follow-up any coverage Okay, then guys changes

Tricia Griffith

I cap about because ARX risk new no in renewal, having considerate property shareholders of and consideration. program And, talked reinsurance. that's and in minority a our leader particular, the in were partly a longer we upcoming

million. take as at retention, least $XXX up in years, retention in noticed, And expect we So we'll moving you've our be consideration. year's over been we've that this to the renewal our

is know our with I on change Other want that's reinsurers add So that anything? our know as than on Do you that, Brandon's books. renewals. working come a to the we I

John Sauerland

raise aggregate you well. if we a the our in description retention did year deeper as K, the our see of this Yes, reinsurance and look you'll on

year, our up Tricia aggregate named last $XXX referring $XXX was to And our of they're top adding million, retention tower. the coverage. on So to retention our to also storm increased also from million we

as more value. new risk terms we're Tricia more our holistic because recognize getting perspective risk Some growing simply said, holistic insured of total appetite, little a little also leader, we're with this our our changes upcoming making of reinsurance some in is a and there. to But and

function their of As was business you might a years a the had remaining. program recall, much in book our we of for minority value. And property reinsurance interest buyout there retained because we

we were could not balance raise And raising our to there sheet. balance in obviously sheet, interest that size and material incur our at some So risk that there any retention. and not

Doug Constantine

have been to appears question. final That our

you hand scripts. closing event. our call back I'll the So concludes for to Chris, that over

Operator

replay fourth That events Relations about quarter for Investor concludes available will Corporation's next on website Progressive's be of investor the The the Progressive of year. event. section Information

now You may disconnect.

The Progressive Corporation (PGR) 2 Mar 212020 Q4 Earnings call transcript