PGR - Earnings call transcript Q2 2024 | The Progressive Corporation

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Douglas Constantine

Good morning, and thank you for joining us today for Progressive Second Quarter Investor Event. I'm Dough Constantine, Director of Investor Relations, and I will be a moderator for today's event. The company will not make detailed comments related to its results in addition to those provided in its annual report on Form 10-K, quarterly reports on Form 10-Q and the letter to shareholders, which have been posted to the company's website.

This quarter includes a presentation on a specific portion of our business, followed by a question-and-answer session with members of our leadership team. The introductory comments and the presentation were previously recorded. Upon completion of the previously recorded remarks, we will use the balance of the 90 minutes scheduled for this event for live questions and answers with the leaders featured in our recorded remarks as well as other members of our management team.

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 today's differ risks to cause results many

Additional XXXX, uncertainties available as the our reports annual risks supplemented in the year first and XX-K for quarters on by Form for those of and ended information our concerning is report December XXXX. second XX, XX-Q

of discussions harbor Callahan, Relations forward-looking and pleased challenges us see We off factors safe who other today, the can risk the of Pat? at website will with I some our section business, documents the introductory to investors.progressive.com. To statements affecting of found Personal These related statements am via we our be comments. to face. begin Pat will Investor introduce kick our discussions President, Lines

Patrick Callahan

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Jay VanAntwerp

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Douglas Constantine

presenters, previously the to Jay management today's live take answer Dave VanAntwerp answer and question. the presentation. [Operator Krew, questions of now We We portion event. first are Instructions] concludes team who to recorded now available available of about members will This have our questions, our including

Operator

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Jian Huang

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Susan Griffith

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that. we're to So great to in do we're sitting going really a And continue position.

can we based and to is trend our spend because, goes So policies our premium up will been frankly, customers. that's continue in high last grow if you've our kind more trends. units as we on seen we down, which for a years think of It's abating, great X the inflationary

to a we what And our seen lot drive service brand. customer as down tenure which ratios, as really well more we nonacquisition and on going we and we've we're lifetime continue think a to signal work going can be ratio continue efficiency environment, our as [ XX will work have claims gotten it our just expense in to cost going and organization, calendar to to much evolve staffed year I'm an perspective as media not continue combined as of again, we going that great momentum can to get and spend to we're accuracy in from our be, know able we if with, while So we're to ], efficient there.

all to year. little we've we to grow. apple a the can't be taken you and good that levers at know half really but be bit in wanted bit do upward for take said small first combined I position market really we So what you the in to what do tell a feel And all whether bites at this put to continue we're in a that, of if of bite times, and we've more a in grow always to and little able your look position looking than model small at in like but that's our to we're take ratio, finally downward, share even

Jian Huang

Great. investment Really revolves appreciate that question is answer. around and the evolving. competitive My second environment income way

years, offset lot insurers of few with investment the obviously, inflationary So subsidizing underwriting environment. to last income were a their

you equity competitive that market investment As a about remains of as dynamic rates broader competitive broader some on growth -- the there a going were ratio. interest come dynamics? forward we an as broader if prospects to volatile, interest tend that volatility far think down, combined if that environment Is help given forward, the think than and rate going to an from ROE to your that key rather about underwriting way guide competitors as does

Susan Griffith

Yes. to separate the We our management. capital really with try operational

[ grow $X.XX before the as arching probably that change as our to grow XXXX of we making job, as XX back got a management. has operations, improved bonds [ continue to some sure We income but review that really maturing, we but can. as at money fast objectives and put weird protect bonds profit care We're we're customers. balance capital underwriting that of ratio so yields. that a But combined investment we've is net overall of to going sheet. of a business since can take [ week ] that, our the going from is to have Progressive actually last we ] the or And dynamics can we with least from just obviously, to at we've not into had we ] higher lot making because So had our the fast

think continue long for look because models. We're at we So to the we have competition had a and a have different just the it's to time one. winning have model going we competitors

Operator

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

Elyse Greenspan

the are seen guys year, that with you the question, first expectation spend just ramp-up see you in June? we $X.X we've the we've half the second through will versus ad When of the that half think given about this doing first guys the gains year-over-year this My the that added year. that PIF relative year in of accelerate, right, to seen that million

Susan Griffith

say on hope if Elyse. ever media. our there's what based would in to rates, we're sure you We I a continue so, We're it's -- if on that. confidence signal our going of spending our

and what path prices, from and So you'll confident competitive media difference perspective, we're going both perspective, really that a competitive brand beyond. throughout we're leverage see continue on a that we're hopefully and a makes. XXXX and to at where intentions pretty this to continue year a But our are

Elyse Greenspan

the my year? how is view to past that, about a right? in guys returning to on you today I competitors you follow-up do And have second advertising advertising. maybe Do talking the relative the question -- efficient, opportunities When guess, slides you then

Susan Griffith

Yes.

sort both rate, a our fair shopping we of continue of some with as still about, there's there competitors people, -- are and amount ambient think seeing I shopping still we're lot which are will have of getting that some our a prospects conversion. and of talked some our to

year, and built group X really our other, of for upon course, working our years, for marketing decades product group, that And about differently. is And think not measure great feel on secret I about. Jay we is what talked course, that worked each secret claims then, for group, and it really we've and special the of So not something Dave with the that's companies, sauce is where sauce. our different really a

importantly, now, we And we right rates about about feel, the So said, feel more like the I the on street. even efficiency. having really great great

really this pendulum but swing back in it's and to I the see It's course, last nice lowering and $X of -- inflation. a bit billion and then, can we time. years, customers a pandemic that in the little giving the again, there, point what at X such Now been during here change to rates

some it that's our up and, where and can deserve get little a and of really our tweaking stability, really customers course, on taking begins Just and bit, which down just of customers. media we advertising, competitive fun our care our where the

Operator

question of the comes Phillips line next Mike Our from of Oppenheimer.

Michael Phillips

that of pretty overall younger relative market? changing, like landscape What going think online, step may take see more you question, do the in for to that down change, consumer I the maybe whether I years direct. the clearly media, to be back of small social agency little X, seeing to as ask overall is about generation, level, are DTC more how guess more the the some more you I try think you big first do at competitors this, -- it's road? cut to part that's things to yours that's continues higher we're I a size guess trying into a how traditional looking to switch the that. personal [indiscernible]. the even over clearly And percent that entrants XX or of competitors channel

quite can difficult have for successful on that into so given been is get guys market, comment how you to if you you think this decades? And

Susan Griffith

remember more I X when we wants was called online, Yes. it everyone prog.com, auto makes that insurance one is I I we started expensive think an buy was it made money. It's easy. to the shared years I battle, mean we children online, I before would made before, think difficult. XX that And I've have an and it thought called you uphill a battle. generation, else -- ever with was it's us that sense. something It And AutoPro. anyone bet. No buy took first

back was Dave InsurTech a said, As coined it ever if at you before into presentation, Krew were we go what in you name. look this that

feel think in our so we're continue DNA. going So That's I we pretty to proud innovate. to important that

to with the So we're integrated continue going marketing campaigns.

about choice consumers. us, for I for it's think really

am I works it for for children. an doesn't So still agency It me customer. my work

And competitors we us we channel, want for question, choices So making we sure been. that's and down really competition, boils be. it get And to the that have I as to and we of to right into, really both watch compete think we really effectively consumers. that to agency hard where all and but it's our we can answer have direct the your even believe in the

Michael Phillips

specific more little a recent is to This Okay. Q. your

lot You where opportunities that's little part growth that growth mentioned base come And things effort in that growth that? the make about in And in anything that guess more caused And in your curious, renters from that concerted bit your auto renters? renters. coming growth I'm auto you on are there there I a a from? are the is profitable. Or there that can would customer is learn

Susan Griffith

Yes. is quote do We really have have oftentimes we renters I for the to a easy, think auto I flow renters required, bundled. like an mean renters.

bit. book derisk to ones often a that do, fit profile that turn risk they we need happen, homeowners. time. renters as whether that have where And it's see and We any auto have causes that consumers also when that know little yes, is then that the course, add sure we we for making any homes move forward they and make can into we sure those and stickiness, and other our that the and time road what a you product renters meets really But long are that's bundle stay of rubber we also

Operator

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

Charles Peters

How are portion And question, presentation, your so growth I staffing back substantial during base and speed happened? challenge you're up aren't specific your the So geographies what to to to so this I for tight and on mentioned I'm that dialed has the a going many of a of growth that. you your first maybe geographies questions has think on -- Jay, in staffing times Jay's been certain Has guess some strategies a the just market? when advertising about you labor around focus where broader of there hiring comment. presumably just there in been times this reporting some offset

Susan Griffith

Greg. question, A great

talk It one. care it that take a fast customers. because can we rarely our ] but at watch closely, or we can as XX if me growing mainly below of we about take we [ as happens, Let

one recall slow specifically, had early I we to And We lot. So I get but I'll year the state it tell Texas of was were time, had to wrong a the growing down. we remember XXXXs. that

slow So growth down to there. had we

is But that wasn't So, claims in in closely with role. obviously and know been I embedded I and claims we're even his work adequately you closely, having say, in staffed. works And the here's the to have having states. to where group the our you ability shift me. work is the okay, some different to work part Pat now great about also role, can hybrid President

basis we other, So we in if and saying to train a and -- bit people behind we a -- bit little rates if can do on we we're All staffing you work we we at saying need and or when didn't are if years if can little we is that state off we above of in the in did one shut the state that to. those could the like a to right last street, all local aren't need we in Jay appropriately. couple staffed can media that have the

CRM, 'XX, than into now. spot say more we like normally going completely turnover I and in would pandemic the had way right claims after we're both a in right different Now would a we

about new we the need I are of making that bit fair with we ahead sure -- that we efficient. and good accurate we're and little amount are fact, hiring talked pay that a reps and we feel and In really really

that So tenure, really great the really now staffing and because about we quality be that's to able our to accuracy. on feel we're going where turn our

Charles Peters

I'm pivot. percentage advertising presentation it growing we my going community part a advertising and in didn't the question, follow-up inside the don't to you really the the see strategies, presentation, the of States. guess presentation talk population PowerPoint for and I And expense Hispanic really United multilingual about as is Okay. of yet,

you're population. of if levers and cohorts talk advertising curious advertising all a could and how multilingual approaching and spend So you I'm other your the minute targeting digital just about the

Susan Griffith

national That and Colorado. it's because it to for we go had into is seeing who's there. advertising law question, really us that But for I a in time. really litigations with in any great some some the us a when because caused control it's details pause little we've won't We to do working it a on given difficult in been law, state. want to setback out

we So paused that. on

Now ads, one. we have really particular, in done a sweet couple one

the and a driver. through dear Latinx, which totally the And you go agree new there's And nods with obviously, some talking talking dad to to it, doe a we If think important. you. it's to I is

little on grow So a and we channel, agency team whole have huge grow working sort a of strategy we of multilingual what to both our the Spanish-speaking call we in bit ] or a have and [ group ability believe can we a opportunity. this about because of that but we big something that is customers. this We Again, happened we our reps in pause Sagora had handle here Colorado, talk to a a lot.

strategy. on we're multilingual report going we're one upcoming of with update my where direct fact, In an meetings our getting in

Operator

Bank of Shanker line of Our question of comes the next from Josh America.

Joshua Shanker

and really the how do buy to a big get maybe he apply that I then was big auto that homeowners. that, direct-to-consumer said the that but And wondering cusp think a what -- of be all can insurance that you course, was of Tricia, you think And people was that listening you of advertising. online, I want online, course, in homeowners you. Jay's would online people said they the industry the you doubted market presentation there change? and catalyst catalyst did. think to homeowners' bet followed buy people that you change made to I When we're do will do and on

Susan Griffith

go I'll questions. -- a That's several begin to Yes. back with.

in continue think to to grow all channels. I we'll try always

that use So we'll innovation.

[ had brand we of had think they sort we a big at when did we back not had that -- talked We brand actually choice recognize the a a bet I I And I but I it into people were a looked We bumped I XX up advertising. after to that time remember job, it talked took a against not we advertised, make and we about the it well. pretty And mid-XXXX, respected, solidified. ] about long because savings that at well this mid-XXXXs. think was able in betting Jay's where we came and came approach, the thereafter, go Jay it and and an we quarter, to it. and like decomp all big in were my brilliant, was and first shortly the and with team acquisition I meet with his supported time. came like long I teams

said and And In their needed fact, spend to. to here's of me Jay given when or to on. comes to group me gift to us never so course, no. spot we pulling Pat, I've need is we've through of say why. they've And more often a back honestly, here,

business direct side, about direct comes of we're side. on homeowner So XX% think into about the our I the --

know problematic Progressive of So, in continue density think we'll we to that it's auto, a more like where online. because that situation because don't And volatile. partners to continue is what another get work we're will for win what, solid companies. and because continue point benefits during And all be to much the expand to We're buy do storms, it with to that and us in sure really of to going think invest make you but can that's as it if be to is a want stable Home important. a group XX-XX, so to it's but I we home pivot them carriers. going people think

Joshua Shanker

then And little a and rate looking more on homeowners. the

of your increases yours, If rate you look much than that of competitors their provide at higher pricing data, are in some course. renewal

industry your be Is your states, your be you're due But seem to being Some geography. causing to are which too in to related that in still, is of priced think the is action growing take homeowners industry what others with for to nationally non-coastal faster overpricing to lower. Is for but non-cat creating some numbers adequately numbers get current lower take to here? pricing to Progressive diversification need here also not general. share Progressive, Progressive the you much, opportunity does an do Or doing?

Susan Griffith

talked average -- And X% those looking XX% at, smaller in about you're our a be really about XX%. growth rates written trailing Well, is much of renters, took premium. that quarter. XX, we in it We like some will on about the of about which some year-to-date,

taken had rate, we've non-rate of that of So we've derisk books. quite and our to taken we've a other actions a lot lot

focus what things going on to doing we're I think first, we've the de-risking said. first book,

Florida options worked those unprofitable. We nonrenewals improved segmentation. going knew continue consumers. with work we for have to the have in on for Florida XXX,XXX We that us to to were We're

X.X time. that and takes We be our product. and as our We've auto, have going in even segmentation in as pricing diligently surgical have on really working states said and on good Get letter, more been my we're it. level we at at our I new some X aggressive. that to

property. take point, at the In focus for of Weather is always feel share. think our we're derisking rates. meantime, the we as is I more as that when grow the good important time. we'll the to we right portfolio. market take the now, like perceive more have think right the areas to dust in able we states. what a into to it's that position, most in continuing in factor be We'll the we to clears, and But we a are nonvolatile have where the grow then all And account grow do whole health we

Operator

from of comes the line of question Robert next Sachs. Our Goldman Cox

Robert Cox

continued I'm competition improve sale cost on And year? how the per will just peers of half election costs the have you question First cost to back as anticipate you increased year-to-date. advertising? impact also per sale. in the curious, margins just for the their Are curious expecting on

Susan Griffith

have answer I idea. Yes. no To last part, the

efficiency. sale, the pressure so good TAC some feel might is that about we per part, but feel below we much on cost first The really it

Robert Cox

or weather-related maybe And Okay. frequency impacting are it. you accident just sustainable of forward, other about Got mix going versus shift of nonrecurring think going much considering favorable this as pricing how some the When to you frequency. environment business XX-Q, benefits? the

Susan Griffith

Yes.

now at X majority frequency of of about preferred actions. exactly. say I X%, down non-rate the to us our would So the our if really hard right you and always that -- being for factors is some is it's discern mix the look --

We can XX motto or Dianes, Sam, the ratio. as we every lifetime unwound unwind long preferred that non-rate ] Wrights, actions. year, [ want we calendar been The customer we've continue as business, has always to a combined Robinsons. So want our make in a

But we together frequency. it's what feel discern, on closely. pressure may put hard makes exactly it really and that. to really We again, watch So

best, and position to And As I terms well around we're do that in better as what a accordingly. those said, now frequency I've if stability we like of then in we to do like feel But react do, start can trends. at little we literally such a a and down, those new for little bit and down, little our up, a every state, That's a for really is make rates bit that every product, bit look renewal winning and proposition consumers. us. stable the take bit up, obviously, little

Operator

from Meyer KBW. comes Our of next the line question of Shields

Unknown Analyst

states. Gina X mentioned some cut rates for It's for you rate ] [ on the taking small question Meyer. in letter, shareholder on the first My is

on how your And thinking curious think what about Just it? should rates forward? going behind we

Susan Griffith

Yes.

always we normal. -- that things back So bit are to we're like of a I little said, kind

the every That is XX%, mean doesn't XX%, are some XX%. that below. some around are if combined think DMA on side, ratio is above, at that state about auto So every at right you

sure we're well and is if in small unwinding small going [ of we're little taking that, take which goal we nibbles, of those can think opportunity reduce and our what our below business, -- ] So to want the we those when XX%, along are about actual you kind non-rate too, actions. that new imagine bit that bring Remember, our media we're with I bites. spend well to to that below before, rates XX it's said make a to

had amount, even just though small a last the reduced by than amount, in small such rates rates, is play We increased a to XX%, years. a X%. So in different we several which we've game

rate that making our We'll new it of we'll growth use and think one we wide as We'll where lever consumers us and for benefit believe of And continue so benefit think stable growth. in have rates. fact, margins cuts. to that's to we're if, business will

Unknown Analyst

on Got is conversion second it. question the rate. My

is in thinking down rate Conversion Progressive expanding from come to has So competitors. significantly mentioned, schedule the presentation, more you about dealing with rate? than the due your conversion How behavior. shopping

Susan Griffith

Yes.

the convert was I short on that. conversion question we be we the want for So then obviously, -- list rate. consumers think about ultimately and And to

we're are prospects our there. high So out because now

wide see go if And part high the funnel. of so conversion of numbers. you -- the kind you're tunnel the going because to And down, then the our that's -- of isn't as

line So think so work rates be we with of have that, control people continue there's out on to shop will we kind all we is there. rate necessarily should making on think a A conversion lot in sure products But they can't states. making that what our been but sure -- lot shopping because of just volatile. all of in we it

Operator

line of next the question JPMorgan. Our of comes from Jimmy Bhullar

Jamminder Bhullar

haven't could as questions the but on seeing my spend most raising were wondering competitor and just you the So you're like of seems prices, seeing? what and the varies various marketing answered, and proactive what talk been about of pricing how talk wondering behavior I in mutuals but it it channels if terms because group could as you're in about was you channel by if

Susan Griffith

direct, spend. new depending And of the more is side the of like different is the a channels on we and Yes. course, I happening mean, what's amounts. and variable really spend on terms the today, about because was are fixed industry which commission more talked of that focused on renewal then in agency then, in

a system, think the we competitive. rationally. I think if our more the still been there's say, lot see think of likely coming in competitors, lot acting the seen system. it rate more And can see case, becoming have I a I And that's of spending. I you'll rate I into would

the me, -- so And that's to that's case. rational

risk. of prices goal right and seeing and believe competitive because and XXX our your we biased [ that importantly, that. need most that growth balance to models, we're some our have price own XX obviously, is ], to you [ and rational the is believe [ and point, people culture. our whether profitability And am And I ] or So at think and ] be best or I your all it's XX model

-- I this rational from some competitors. be should movement couple So of years, our but a lot I think do see across an interesting of

Jamminder Bhullar

have of margins your pretty most quarters, margins several improving but then And obviously the as last are well. your for good peers' been

quarters, an in environment an just see you eroded they a prices earning you're few profit since on see where get have the if wondering or lot a to because gone on pushback uptick in regulatory you of prices? composition So start up excess

Susan Griffith

swing actually to Yes. because don't where rates I have I -- they're our pendulum don't states mean, XX% don't in want premium be. that terms the street the way again, right the other of about we or I the want on still from to perspective we

regulators, you So want a our growth. volatile done, we're we to grow. X have, more, rates street, is that grow the we're we and sure to to make we -- rates prices. said important we really you And And we of with as ]. when competitive We most, think for X we them states, in on did that want happening. and unit I [ that's to XX why as said, that see the make need to and what that read, we'll reduce make adequate sure watch things weather continue are will, relationships I some and the that. we've customers like there want work there's to doing want always have We they advertise I us

prices. will I to because well people rates, lower It's as if shop. And we follow so if leave carrier want if to. to have think easy to everyone easy you your So has competitive

So that, it's efficiency, et prices, much claims to really cetera. whether important have segmentation and into our it's goes or so competitive

I So that's we what have to look think at.

our industry. addition to I want we -- work our think other of in happened. that to that been has have swing in to going for on the I where do don't couple And our of times don't with to want stable a this just and know few have said rates. because unforeseen don't stable anything work customers last And we're going we're been happen, a I've years think commissioners. the have industry probably quarters. continue things while just that that I unforeseen I couple just way

most continue we'll to of let will the is this the important be out, to measure our units, we in grow always which try to play thing, competitive So and us. order growth do to right

Operator

comes question Michael Ward of Citi. line next from Our the of

Michael Ward

At be wondering, that noticed for in up mobile your tick relative least just app to auto policies was seems high your I we competitors. general. pretty to

telematics, use as insight paperless wondering doesn't and are incentivizing be. you So just maybe it or is cards to but the else? any seem It might ID -- it's digital if that you just have of why something like

Susan Griffith

sort that think the question I the with in of technology. of of terms evolution

likelihood I there. have So of in stay And our come mobile. a we new to lot want apps in, is you if come you through think

And so we and continue the to app just to card invest easier. making more payments things in making making our you it and said, friendly, ID mobile access like

in the lot strategic we'll we've of where And pillars one do in about so. the one continue last That's So to to go do I app, than think decade more invested when be and there I coverage in able an coverage. you a a app. mobile when everything. on on on app, stay to broad as And go and want the people our

buy, information So that get the need. service, that is that's I

continued, that to people our think right you're and and way. I it's investments do want think in it's based I So on that that business

Michael Ward

wins phone. are more on sales. I home or indirect, Okay. growth just how then the trying your comments those about in context And expanding Robinson think share we And more the going Wondering kind direct you on forward? taking acceleration guess, elaborate of square over customer expansion Robinson of about Robinson should in the that can to the place X. if online

Susan Griffith

across group Yes. because to agency Well, would many, call write agent those access board. many another a what years Explorer give to say on be have needed carrier channel. it we homeowners so could our stable to in that's us the would place Robinson where auto is, independent taking another risk, really addition growth is I able we product to in What HomeQuote we a I higher carriers want say, to it customers based the of we And to a if really the where or didn't having carrier. started we ago. was in

the the to broad need. across HomeQuote And the That have like when going what they so have have has continue And And we're to evolve we that think home, more we coverage, been which be how we -- to and board. Explorer, that. is to Robinsons how like of customers but we we want at we more which necessarily really Robinsons. direct there, don't look

another And about same we the buy have our general we ease have through media the thing. us at. maybe then a side, doing liability we're And spend making can commercial sure auto, the from Explorer, our you customers. BusinessQuote acquisition that where Explorer, we then look commercial they've again, It's On really to it's but of where -- for policy carrier. come use AutoQuote the

that the deal, else seal with come us. sell deal they to who we somebody help the wants can't we if them wouldn't why risk. So And

I in desire continue first will and in be to think proud first we will to grow. have HomeQuote the our side. product invested long-term portfolio. that on Explorer it solution us that derisk our direct think But So a for Again, I'm things

Operator

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

David Motemaden

from when spend. highest Tricia, start could between -- the spend June a spend in your if a higher up. that obviously about come and to like ramp in lag ad hit talk of was you see that it ad was tick history when March PIF increased I'm how lag so of happened the you sort second much when wondering lag just another also between through? quarter to as was I there there see and or wondering looks when you is well if I and sales? month you there just you Is any ad know the there start the in where that

Susan Griffith

there's we'll of the into prospects the coming that in. pretty of -- lag. course, a any media have our I little would closely of I prospects but And lag, mean say terms there's a then, turn little we spend we sales. measure then measure bit that in when

totally advertising. closed in were we also We our -- never

on kind we're that sure a consumers constantly So even there's to for that top mind of be of making to list short shop.

I I'd some discernible. think but there's anything So don't lag, say there's

David Motemaden

to quarter, then of Understood. I in how wondering earning should like stands trend XX in last earn And That's in points think we're it then the course I'm helpful. think the and advertising. sounded were where we was It XX-Q. now there still that of think I throughout as that of that can additional just that above rate spend XXXX. you on rate

Susan Griffith

So about you're specifically overall? talking or auto

David Motemaden

Yes, auto.

Susan Griffith

Yes.

years. the so over we've On auto, much the rates taken

We took bit little a quarter year-to-date. X% we the for have -- X,

earned of the earned little to the about We a maybe our X-ish bit more really year. have We in, good rates. in, for feel rest

In fact, bit about back reduced that's think in if of nearly to a as 'XX, XX%. 'XX, able took was we're we bit. XX.X%, took little go we movement states little it we why X -- you take But you a where rates those painful.

course, of and in rates, cumulative been the have quickly a they -- more lot. So earn than home

we feel little in year during And terms this so our less it of about really a be good competitiveness. having bit

Operator

Tunis Our line next Autonomous. of of question comes from the Ryan

Ryan Tunis

margin. spite ad that Or I'm all the of curious component point ad and still I analyze actually looked in So place? of June just the seasonality just -- PIF standpoint. not that those things May trying April, changing But months, the have are kind say in headwinds a you really X guess, obviously, dynamics? the seasonally, would a big good moot historically, seasonal whole if been was PIF from given is result of look we to

Susan Griffith

want Now point. it's a moot to I don't say

to on able to right on to rates and as I well was non-rate stop items staffed handle think that back the our everything. we spend into being growth. a street, it we pull the put having when very were place blend being increase in adequately media of as trying us

position think way. in perfect it in the storm to of sort lot us of that dynamics, good a way I was a So

just to able -- had that work that hard a So a our things we growth. I think we with of of of a it's sure bunch make maximize PIF with came were and capitalize to lot teams together lot that

Ryan Tunis

still don't not you time, kind over probably billion. you not back also I 'XX, just ad is Got there's But just some retention well. increasing would or on this guess designed way amount mentioned $X about curious play you there advertising just that way quantify if most spend to that it. you a And if to then Does of impact? new any sort I pulled have to advertising, that mean, and there's the spend think quantify like spent to is help you your that retention advertise guys function if base role. of as at know how I'm or just I business more. guess I add a of any

Susan Griffith

you the even well of best it's hard our people I thing you buy a and out thought Yes. mean stable because there, think, about have, that I rates. especially when -- that to retention on obviously, think, go I people to for the think be brand, can't to list if of. is have But have they short don't is brand companies

different many to We of to We different that. campaigns that hit have with our not humor. time, try right people We make make that through amount try see the too we're to little, not break customers differently. too on ads, sure sure much

a last we campaign. multilingual We markets. doing a tests several in or have addressable about the from little understanding talked retention the bit think some I just been years

our making spend about all is they the they and then and attracting and on there, out service and products that what That's So purpose It customers of prices terms have what with come when our us that great sure some to our is, do move to do to employees and stable or communities want fully. digital we we in media so. campaigns money forward really people want them and whether do need. or is here, mass we live we retain see

Operator

of BMO. the Our of comes from last Zaremski question Michael line

Michael Zaremski

some that sustainability couple I and he follow-up frequency unpacked What are relative the of any asked especially of can easy looks about very on kind question, or on severity of had you I thinking also comps, mix side? your factors say First -- to severity non-rate on favorable, a you sustainability of you severity know I are the a Rob actions. as to of mix I your favorable, know peer guess, Cox trends how about last items year. data. guess, the these days? and the But you about

Susan Griffith

I mix think of the of are prices. to And still used car they're years up, so in but up some relative terms subsequent pre-pandemic. much the of the some it, take pandemic place factor in severity but into can during had think of gone those stable

terms seeing [ of the uptick loss stability in where BI, of So litigation. in larger some a attorney in an that's in you're you had ] rep

are stabilizing. bit things do little gives as several forward. months the in what to we which we see think I we've will It's us but of where of move data happen hard a confidence had stability say So some that,

Michael Zaremski

it. Got

rate in nothing sustained that running should mix So out of it your you're make the on past, calling has -- kind more okay? at a lower than it

Susan Griffith

mostly stable to getting a place. No, more just Yes. hopefully

Michael Zaremski

my part many when And just Investor Okay. audience as much follow-up at look these is phone, ago plus at Day smartphones. times I days. probably -- think And in our way, the being I I too Jay's -- you my about remember the asked way my think and on the always by phone your just was we at how And presentation of the our you at look all direct-to-consumer. on a lastly, we live decade I that Ohio, look

if improving you you I of it the back like so were even But a time in but more you're been than you something there frame, -- that the XXXX that worth on spend more a So the ahead for know improved mentioned seems of catalyst feel that's if trend. kind Or you was mentioned I in a just believe. guess, data guys 'XX you don't mentioned today -- -- a that. your and was to elaborating Jay I there's past? big -- that

-- was a there's kind that special happen of something curious I if So if then? was

Susan Griffith

No. to that as were acquisition who to lot will how price "Oh and spend was we go that where that then, my cost versus a going what, group, closely data amount happened to to for what time growth. of our understand ahead I mean our surgical think Missouri when, Sam backwards, pivotal things Omaha Diane customers of targeted we I understand and sort and would understand looked since mean in since of is that we should have decided I more say with and sees a means, having gosh, they what this the how incredible. worked closely a we

it So it stopped, and hasn't of actually off other. builds each

this of then -- not the next sort and multiplicative. "Oh, learns model. thing our it's Jay's It's it's It's like they like group learn. So product like,

and said have incredible. The you I which group so asked me now, -- are is group would say the in this is XXXX, And more would I even same have if better. people would

are level what amazing. truly from learning is understanding a we just So granular are we and what

of think I sauces. that's one of secret many our

complained I -- hope against and this no additional never the make They've pulling is our to their to grow, we can nimbleness want spend So this hit much as up, up Jay we Dave as entire and and they do when to the grow about for spend never firm. back. teams sure target. their thank we've as incredible my And they to year say that can wrap

So our questions coming to you, great event. today. everyone thank I appreciate

Douglas Constantine

been Appears to final have our question.

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

Operator

the [ the ] a Second next Progressive concludes in will available ] Investor for [ Quarter the replay Investor The That year. event of Corporation Event. be section Progressive (sic) Information website about Fourth of Relations

disconnect. may You now

The Progressive Corporation (PGR) 6 Aug 242024 Q2 Earnings call transcript