The Progressive Corporation (PGR) Q4 2022 Earnings Call Transcript

The Progressive Corporation (NYSE:PGR) Q4 2022 Results Conference Call February 28, 2023 9:30 AM ET

Company Participants

Doug Constantine - Director, IR

Tricia Griffith - CEO

Jim Haas - Business Leader, Personal Lines Telematics

Cory Fischer - Business Leader, Commercial Lines Product Development

John Sauerland - CFO

Conference Call Participants

Michael Zaremski - BMO

David Motemaden - Evercore ISI

Alex Scott - Goldman Sachs

Andrew Kligerman - Credit Suisse

Elyse Greenspan - Wells Fargo

Tracy Benguigui - Barclays

Josh Shanker - Bank of America

Meyer Shields - KBW

Paul Newsome - Piper Sandler

Gregory Peters - Raymond James

Michael Ward - Citi

Ryan Tunis - Autonomous

Doug Constantine

Good morning, and convey you for joining america coming for Progressive’s Fourth Quarter Investor Event. I americium Doug Constantine, Director of Investor Relations, and I will beryllium moderator for today’s event.

The Company will not make elaborate comments related to its results successful summation to those provided successful its yearly study connected Form 10-K, quarterly reports connected Form 10-Q and nan missive to shareholders, which person been posted to nan Company’s website. This 4th includes a position connected a circumstantial information of our business, followed by a question-and-answer convention pinch members of our activity team. The introductory comments by our CE and nan position were antecedently recorded.

Upon completion of nan antecedently recorded remarks, we will usage nan equilibrium of nan 90 minutes scheduled for this arena for unrecorded questions and answers pinch nan leaders featured successful our recorded remarks arsenic good arsenic different members of our guidance team.

As always, discussions successful this arena whitethorn see forward-looking statements. These statements are based connected management’s existent expectations and are taxable to galore risks and uncertainties that could origin existent events and results to disagree materially from those discussed during today’s event. Additional accusation concerning those risks and uncertainties is disposable successful our yearly study connected Form 10-K for nan twelvemonth ended December 31, 2022, wherever you will find discussions of nan consequence factors affecting our businesses, safe harbor statements related to forward-looking statements and different discussions of nan challenges we face. These documents tin beryllium found via nan Investor Relations conception of our website astatine investors.progressive.com.

To statesman today, I’m pleased to present our CEO, Tricia Griffith, who will footwear america disconnected pinch immoderate introductory comments. Tricia?

Tricia Griffith

Good morning, and convey you for joining america today.

2022 was among nan toughest years of Progressive’s 85 years. The continued effects of nan pandemic, precocious ostentation and nan largest hurricane successful our history each played a domiciled successful a tumultuous environment. Throughout these challenges, Progressive group came together successful unity and delivered erstwhile again beating our extremity of a almanac twelvemonth 96 mixed ratio while increasing some written premiums and policies successful force.

The pridefulness that I consciousness successful each of nan group of Progressive is indescribable. We person met each challenges caput connected and continued to present nan best-in-class results our stakeholders expect. Our expertise to meet these challenges is embedded successful our culture, which is built connected our recently updated 4 cornerstones, which are who we are, which is our halfway values, why we are here, which is our purpose. We revised our intent to be, we beryllium to thief group move guardant and unrecorded fully. Our modified intent builds connected nan bequest of our halfway values and our history of challenging nan position quo to accelerate advancement and equity. We modify nan intent to amended unify and guideline our organization.

Where we are headed, which is our vision. We expanded our imagination to see business owners, truthful it now provides a much holistic position of each nan customers we are privileged to serve. And really we will get there, which is nan 4 pillars of our strategy. We’ve updated these 2 cornerstones to amended bespeak nan improvement of our institution and to guarantee our civilization accommodate to nan ever-changing situation we run in. While our business will proceed to progress, we will ever activity to support nan things that make Progressive, Progressive.

In today’s call, we’ll erstwhile again attraction connected nan strategy cornerstone and specifically, we’ll talk nan pillar of competitory prices. Competitive prices intends not conscionable offering nan champion rate, but besides nan astir meticulous complaint driven by pricing accuracy, disbursal subject and industry-leading segmentation.

As we person said for nan past fewer quarters, we judge nan awesome individual car complaint increases are apt down us. In nan 4th quarter, we continued to raise individual car rates but astatine a gait slower than successful precocious 2021 and early 2022. While immoderate states are still waiting connected filings to beryllium approved by their respective regulators, we judge nan mostly of states are nearing complaint adequacy, and our intent is to proceed to summation rates commensurate pinch early nonaccomplishment trends.

Based connected nationalist complaint filings, we cognize that our competitors are raising rates to reside their ain profitability concerns. And arsenic they person done so, we’ve seen our comparative competitiveness improve, which has resulted successful improving retention beardown quote maturation and precocious conversion.

We’ve now really seen immoderate competitors surpass our post-COVID complaint take, which should thief america prolong those betterment trends. As a result, we vanished 2022 pinch nan champion 4th fourth for individual car caller exertion measurement successful our history, which contributed to increasing our individual car PIFs 3% successful 2022 while besides moving a little acquisition disbursal ratio than 2021. We’re continuously evaluating our media budget, and we’ll proceed to usage media efficiently arsenic we participate 2023, and we will look to capitalize connected this difficult market.

The higher nonstop acquisition disbursal ratio successful January is suggestive of our opportunistic stance, and it reflects nan assurance we person of existent complaint levels successful astir states astatine this time. Of course, if nan past 3 years person taught america anything, it’s that nan early is unpredictable. So, we will proceed to show nan business cautiously and navigate arsenic needed to turn arsenic accelerated arsenic imaginable while delivering a almanac twelvemonth ‘96 mixed ratio.

As I said successful my yearly shareholders letter, segmentation is simply a cardinal facet of our competitory prices pillar, and obscurity is that much evident than successful our finance successful usage-based security products, which will beryllium nan taxable of today’s presentation. Progressive was a first mover successful usage-based insurance. We person had a UBI offering since 1996 erstwhile we launched our first merchandise called Autograph. This first effort was constricted by nan exertion astatine nan clip and required a master mechanic to instal instrumentality successful a customer’s car astatine a sizeable expense.

That first effort evolved to TripSense successful 2004, which was our first aforesaid instal option. And past successful 2008, we launched MyRate, which is wherever we first employed cellular exertion to upload information to our systems. And past successful 2010, we launched Snapshot, which we see nan commencement of modern UBI program. We moved from our discount-only exemplary to 1 that included nan anticipation of a surcharge successful 2014. And successful 2016, we launched nan Snapshot app, which allowed nan customer to usage a mobile telephone app alternatively of nan plug-in device. Our astir caller summation is continuous monitoring, which began its rollout successful nan summertime of 2022.

In parallel to our efforts successful Personal Lines, we were processing UBI for commercialized car products. This culminated successful our first wide commercialized offering of Smart Haul, successful 2018, which allows america to supply usage-based security to truckers successful business pinch providers of electronic-logging devices. We besides expanded nan Snapshot programme for commercialized car pinch Snapshot ProView successful 2020, which includes fleet monitoring services to mini businesses.

Throughout our history of usage-based insurance, we person collected billions of miles of information and invested successful a process of continuous betterment successful our UBI products. Today, UBI is our astir predictive standing variable, and it provides unparalleled complaint accuracy to our customers. Through this, we’ve continuously knowledgeable our customers wherever coming UBI take is astatine adjacent humanities highs.

To item our UBI products connected this call, we’ve invited 2 Progressive leaders who’ve played important roles successful our UBI development. First to speak will beryllium Jim Haas, business leader for our individual car usage-based insurance. Jim is simply a 20-year Progressive veteran. And for nan past 5 years, he has led our individual car UBI team. Jim will talk nan advances we person made successful individual car UBI.

Following Jim will beryllium Cory Fischer. Cory is simply a 19-year Progressive veteran. For 9 years, Cory has been our business leader for Commercial Lines R&D. And arsenic of past month, Cory accepted a caller domiciled to lead our agency distribution group. During his tenure successful Commercial Lines, Cory led R&D during nan successful rollout of some our commercialized car UBI products. Cory will beryllium highlighting each of nan advances we person made successful Commercial Lines UBI, erstwhile again giving Progressive first-mover advantage successful this important technology.

Again, convey you for joining america this morning. I will now manus it complete to Jim Haas. Jim?

Jim Haas

Thank you, Tricia. As Tricia mentioned, my sanction is Jim Haas, and I lead Progressive’s Personal Lines Telematics efforts. Today, I’d for illustration to show you astir really we’ve built connected that agelong history successful telematics that Tricia discussed starting pinch really we’ve continued to amended our halfway Snapshot program, past moving connected to talk really we tin now bring successful information from extracurricular sources to amended standing accuracy during nan caller business quote. And finally, wrapping up pinch nan chat of immoderate value-added services we’ll beryllium bringing to marketplace soon.

First, let’s recap really our programme has worked for a number of years. Individual states whitethorn alteration a bit, but I’ll picture present really it useful successful astir places. We aliases nan supplier coming nan customer pinch nan connection to enroll a Snapshot during their first quote. If nan customer elects to motion up, we’ll person an contiguous discount of up to 10% for participating successful Snapshot that will beryllium applied to that quote. So agelong arsenic nan customer stays successful Snapshot, that discount stays connected nan argumentation during nan full first term.

During nan quote, nan customer besides elects whether they want to show utilizing a plug-in OBD-II instrumentality that we nonstop them aliases via an app connected nan smartphone. The customer past has 45 days to plug successful a instrumentality aliases get nan app group up. That point, each they request to do is drive. We’ll fto them cognize really they’re doing on nan way. Just earlier their argumentation comes up for renewal, we’ll usage nan driving information collected during that first word to cipher nan renewal discount aliases surcharge. That complaint accommodation will beryllium included successful nan renewal quote and will beryllium applied to early argumentation terms. At that point, nan customer tin delete nan app aliases nonstop america backmost to instrumentality and they’ll beryllium done monitoring.

I’d mention that nan complaint could spell down aliases it could spell up, that is we would use a discount aliases a surcharge. But that’s not really our programme started. In nan early days, nan programme is system a small spot differently, but a customer’s complaint couldn’t get worse by participating successful Snapshot. Customers could person a discount of up to 30%, but nan complaint couldn’t spell up, nary matter really risky they’re driving look. Many companies still employment a exemplary for illustration this today.

Of course, nary standing adaptable successful security only suggests giving discounts. It’s astir segmentation and matching complaint to risk. So, nan information would propose that immoderate customers should spot nan complaint summation while others should spot a decrease. While only offering discounts mightiness promote much group to participate successful nan programme makes nan economics a batch much challenging and limits nan accuracy of nan wide pricing. And we each cognize that pricing accuracy is captious successful car insurance.

So, starting successful precocious 2014, we began introducing a surcharge. We group our factors truthful that astir a 5th of customers received a surcharge, a stock that we’ve kept astir nan aforesaid complete time. The surcharge was mini astatine first, but started america connected nan way to greater accuracy. It’s besides erstwhile we introduced nan information discount, which is down 10% successful astir states. Over time, we’ve moved nan value person and person to what nan information would show us, first, by expanding nan maximum surcharge from 10% to 15%, past expanding it to 20%, and finally, to wherever we are today. We connection larger discounts than we did successful nan past, now of up to 30%. But we besides person larger imaginable surcharges than successful nan past too, now up to 40%. We’ve travel a agelong measurement since nan days of only offering a discount, but it’s important to statement that astir 75% of customers still person a discount and only astir a 5th person a surcharge.

Not surprisingly, we spot amended retention connected customers who gain a discount and worse retention connected those were successful a surcharge. Renewal rates for nan safest drivers who are earning nan biggest discounts are astir 6% higher than average, while they’re astir 16% little for nan riskiest drivers who aren’t receiving a discount.

So, nan programme systematically helps america clasp little consequence drivers and shed higher consequence ones. And because of nan changes we made to our Snapshot pricing complete nan years, were much accurately priced than ever earlier connected those customers that do enactment pinch us. While these changes person surely improved nan accuracy of our pricing, location is still a limitation to our approach. We only usage information from a azygous term, typically 4 to 5 months to group nan value for nan life of nan policy. This made it truthful we wouldn’t cognize astir worldly changes successful an individual’s driving behaviour would lead to little accuracy complete time.

We had experimented pinch a continuous programme a agelong clip ago, backmost successful nan precocious 2000s. At nan time, though, user acceptance of telematics mostly was still increasing and collecting information connected an ongoing ground was rather expensive. So, we decided to move guardant pinch a partial model. Things person changed a batch since past and successful early 2022, we started migrating to a continuous type of Snapshot. The basal process isn’t each that different. Customers still take whether and really to participate successful Snapshot during nan quote and they still person a information discount. They still person 45 days to plug successful nan instrumentality aliases group up nan app and past they tin conscionable drive. The quality comes aft nan renewal. As alternatively of sending nan instrumentality backmost aliases deleting nan app, we inquire them to proceed to monitor, and we’ll set their complaint astatine each renewal to bespeak their much caller driving. Additionally, that information discount is larger now astatine 15% alternatively of 10%, which encourages much group to participate successful nan program.

Having much caller information besides improves nan predictive powerfulness of UBI, which intends we tin value moreover much aggressively. We’ve accrued nan size of nan maximum imaginable discount to 45% and nan maximum imaginable surcharge to 60%. We’re 1 of nan fewer companies to harvester a continuous exemplary pinch nan anticipation of surcharges. As of nan extremity of 2022, we had deployed this caller continuous exemplary successful 12 states, representing complete a 4th of our nett written premium and scheme to rotation retired to astir of nan remainder of nan state during 2023.

So, while we’ve been steepening these factors and requiring longer monitoring to make our pricing moreover much accurate, what’s happened to return rate? The reply is that nan stock of our individual car customers participating successful Snapshot has moved steadily upward. In fact, it’s up astir 40% crossed some channels mixed since January of 2019. So today, much group participate successful Snapshot than ever before, providing information for longer periods of clip that we tin usage to value much accurately than ever before.

So, that’s nan update connected what’s been going connected pinch our halfway Snapshot program, which provides awesome incremental segmentation complete what is disposable via accepted standing variables connected renewal argumentation terms.

Now, I want to talk astir really we’re moving to bring this pricing accuracy to wherever it’s astir useful astatine nan clip of nan caller business quote. Since successful this scenario, nan customer is only now conscionable coming to america will person to usage telematics information that was collected by others. Our agelong telematics acquisition has helped america study really to usage this information and really to make it predictive. We presently person 2 initiatives successful market. The first is simply a lead procreation programme that useful by inviting bully drivers to travel and quote pinch us. While nan different originates erstwhile a customer comes to Progressive straight to get a quote, and we find and incorporated driving information from 3rd parties into nan correct we coming them.

Let maine commencement pinch nan lead procreation program. Here, a partner for illustration Credit Karma invites their customer to opt into collecting driving information to spot if they could prevention money connected their car insurance. In a privacy-friendly measurement wherever we don’t person personally identifiable information, we tin fto Credit Karma cognize who’s apt to person a discount truthful they tin induce them to quote pinch us. Only erstwhile nan customer chooses to quote, are we capable to personally place that information and are past capable to use that discount to that individual’s quote, improving pricing accuracy immediately.

Our 2nd programme involves moving pinch information collected by automakers. Over nan past respective years, much and much of them person been equipping their vehicles pinch exertion to cod driving data. They’ve been moving to show nan worth of these programs to their customers truthful that they’ll motion up to stock that information pinch them. And we’ve been capable to pat into that. When a customer comes to america to quote and their driving information is available, we’d inquire nan customer if they for illustration america to usage it to find their price. They say, yes, we bring that information successful and use nan UBI discount aliases surcharge to their quote immediately. Again, pushing that complaint accuracy to wherever it matters most, nan caller business quote.

Because of our agelong acquisition pinch UBI and successful moving pinch some OBD and mobile information and nan truth that we pull truthful galore security shoppers each year, we’re good positioned to execute and use from this.

To beryllium clear, automakers are successful various often early stages of getting nan basal instrumentality into their cars and making this information disposable to insurers. Additionally, conscionable because caller cars coming disconnected nan assembly statement person nan hardware, it takes a agelong clip for nan fleet to move over. So, this isn’t communal yet, but we’re excited astir nan opportunity it represents. We’re already moving pinch 2 of nan largest double makers, General Motors and Toyota, and it’s clear that this organization will turn complete nan coming years.

Lastly, I’d for illustration to stock immoderate breathtaking news that doesn’t impact utilizing telematics information to much accurately complaint policies but instead, builds upon our telematics practice to supply a valuable work to our customers. Over nan past mates of years, we’ve experimented pinch offering a work to observe and respond to awesome accidents to immoderate of our Snapshot customers to study if they worth nan work and to amended understand really it could beryllium useful successful handling claims. We’ve been encouraged connected some fronts arsenic customers person consistently told america that this benignant of work is thing that they really do worth and our claims representatives person seen a telematics information tin thief them settee claims much quickly and efficiently.

Still, we cognize that contempt really times person changed, location is simply a ample conception of customers who don’t want their security premium to beryllium based connected their driving data. That intends that if we limit this conscionable to our Snapshot customers, we’d beryllium leaving retired a batch of others. So, successful March, we scheme to commencement making mishap consequence disposable to each of our car customers, not conscionable those who were successful Snapshot. We’ll usage information from nan sensors connected nan telephone to observe erstwhile a superior clang is apt to person happened. We’ll scope retired to nan customer to corroborate nan mishap and to spot if they request help.

If we don’t perceive from a customer astatine all, and it seems peculiarly serious, we’ll petition that nan constabulary behaviour a good cheque to make judge our customer is okay. Since we cognize nan customer’s location from nan telematics data, we cognize conscionable wherever to nonstop them.

We cognize location are different mishap consequence services available. We deliberation what we’re offering has respective cardinal benefits, though, that separate it. First, galore services travel astatine an further monthly expense. Ours will travel included successful nan policy. There is nary further charge. This adds worth to nan customer’s narration pinch america and tin go different logic to take and to enactment pinch Progressive. Additionally, while different insurers connection clang discovery to their UBI customers, we’ll beryllium making it disposable to each of our Personal Lines car customers, whether they’re successful Snapshot aliases not.

Third, we’re deliberate astir dispatching EMS. We surely wanted to get EMS dispatch arsenic quickly arsenic we tin erstwhile a customer needs it. But we besides don’t want to discarded EMS resources and fuss nan customer erstwhile they don’t. This tin beryllium challenging since nan sensor information for a adjacent miss and an existent mishap tin look awfully similar. So, we effort to interaction nan customer much than erstwhile utilizing different methods truthful they tin fto america cognize if location was an mishap and if they request help. We only nonstop thief if nan customer has requested aliases if we haven’t been capable to scope them aft respective tries and nan mishap looks severe. While astir customers successful these accidents don’t really request ambulance, galore do request a tow truck. We’re capable to build connected our roadside assistance acquisition to meet this need. We understand that those are moreover much urgent than a emblematic roadside request. We tin besides thief customers notify their family members.

Lastly, aft an accident, 1 of consumers’ apical concerns is really to get their aesculapian bills paid and really to get their car backmost connected nan road. As their insurer, we’re nan ones positioned to thief them get there. By detecting these accidents and having this telematics information able, we’re capable to get their declare started much quickly and capable to grip it much efficiently. In fact, if an ambulance aliases 2 is dispatched, we’ll really get that declare started connected their behalf. Let maine show you an example. This is simply a existent declare that was detected via mishap response. In nan nonaccomplishment pictured here, our customer was driving connected an municipality boulevard erstwhile they deed immoderate ice, mislaid power of nan conveyance for a striking barricade to their near earlier striking nan barricade connected nan right. Fortunately, nary different vehicles were involved. As you tin see, nan airbags deployed and location was beautiful terrible harm to nan beforehand of our security vehicle. In fact, this conveyance is simply a full loss.

Additionally, our customer and 2 of their passengers were injured successful nan crash. Within 2 minutes of nan impact, we reached retired to our customer. While they didn’t consequence to our first push notification, they did respond to a consequent telephone from a unrecorded agent, which occurred little than 5 minutes aft nan mishap that supplier dispatched an ambulance and a tow motortruck to nan scene. Only a fewer minutes later, nan declare was filed. Altogether, it took only 10 minutes from nan clip of nan mishap to erstwhile we had a declare successful our system.

We’ve surveyed immoderate of our mishap consequence customers wherever we’ve gotten has immoderate awesome feedback. For instance, this customer showed that they were “unable to telephone for thief astatine nan clip but thief called me.” This work helps america thief our customers erstwhile they request it most.

It’s not conscionable nan contiguous consequence to nan mishap that tin thief customers though. Here is different example. This customer collided pinch different conveyance erstwhile changing lanes. We detected this mishap arsenic well, dispatched nan tow for them and had nan declare revenge wrong 12 minutes of nan accident.

What I want to item successful this lawsuit though, is that this customer had this mishap conscionable 2 days aft buying their policy. Some of nan first steps successful handling immoderate declare see establishing nan facts of nonaccomplishment and determining if nan nonaccomplishment is covered.

Unfortunately, location are group who bargain security aft they had an mishap and past effort to make a declare for it. This intends that honorable customers are inconvenienced arsenic we request to return nan clip to verify that nan mishap happened erstwhile they told america it did. That was beautiful easy successful this case, however, since we detected nan mishap successful nan first spot and arranged for nan tow motortruck to prime up nan car, and we tin spot from nan telematics information that nan clang happened wherever and importantly erstwhile our customers said it did. Therefore, we were very assured that this nonaccomplishment did hap aft and not earlier nan customer purchased nan policy, which fto america move guardant much quickly pinch getting nan customer backmost connected nan road.

So, it’s not conscionable nan mishap consequence work self, but its committedness to amended nan claims acquisition that tin use our customers. They’ve told america they worth mishap response, and we’re excited to make it disposable to them. We’ll commencement that process successful March and expect to make it disposable to each of our individual car customers complete nan adjacent twelvemonth aliases so.

To wrap up, we’re not conscionable jumping connected nan telematics bandwagon. We person decades of acquisition here. We’re clear-eyed astir nan challenges, but besides spot nan awesome opportunities telematics offerings present. But this is conscionable nan Personal Lines broadside of nan story. My colleagues successful Commercial Lines person been processing their ain attack astir really to usage telematics information successful their markets, and Cory Fischer, who’s led Commercial Lines R&D for nan amended portion of nan past 10 years is present to show america astir it. Cory?

Cory Fischer

Thanks, Jim. As Tricia shared, I’m Cory Fischer, and up until recently, I was nan business leader for Commercial Lines Product Research and Development, which includes work for commercialized telematics efforts.

Today, I’d for illustration to stock nan advancement we’ve made since introducing our commercialized telematics programs, immoderate early observations and really we’re reasoning astir early investments successful this space.

The floor plan connected nan little near was shared successful a anterior Investor Relations call. It’s why we’re excited and person been investing successful telematics. Pricing segmentation is an important portion of really we compete. The group I’ve worked pinch is charged pinch advancing our commercialized car segmentation activity position successful nan market. Telematics is nan astir predictive standing adaptable we person by a lot. To build connected that segmentation activity position we request to beryllium a leader successful telematics.

For context, we person 2 branded telematics programs. Smart Haul is nan first programme we introduced successful 2018 aft respective years of information postulation studies and pilots. It targets truckers that are acquired to support hours-of-service logs. The motorboat intentionally coincided pinch nan national mandate, requiring these truckers to move from insubstantial log books to physics logging devices. We person recognized those devices supply continuous monitoring and seizure very akin information to our Snapshot devices, including location information. With nan customer’s consent, we usage nan information from nan trucker’s physics login instrumentality to make a people and use a standing factor. Ideally, we entree nan information during nan quote process, conscionable for illustration nan process Jim discussed, utilizing information to value caller business. If we are not capable to get nan data, either location are newer task without driving history, aliases we don’t person contiguous entree to their ELD vendor, we supply a information discount connected nan quote.

Snapshot ProView connected nan correct is much akin to what Progressive Personal Auto has offered. Its target is fundamentally anyone that doesn’t person an physics logging device. We marketplace Snapshot ProView arsenic information and savings. For customers that enroll, we supply a information discount astatine caller business and nonstop a Snapshot instrumentality that they tin easy plug in. Given really mini businesses person worker turnover, this programme has continuous monitoring. We will past usage their driving information to make a people and a facet that’s applied astatine renewal. This facet could beryllium a discount aliases a surcharge.

In addition, we supply entree to a free driver portal. Our customer tin spot wherever their vehicles are and really they are being driven. It’s a reasonably elemental measurement to support tabs connected their fleet and driving behavior.

Since we person deployed these programs, we person been monitoring a number of cardinal metrics. The floor plan connected nan correct shows a type of return rate, that is, percent of caller business apps and rolling into a telematics program. We’ve seen from anterior programme launches, it tin return a while and require a sustained effort to get meaningful adoption. Though we person identified opportunities for expanding return rate, we are genuinely happy pinch really quickly take has occurred and nan trajectory it’s on.

In summation to adoption, we person seen that erstwhile quotas enroll into a program, they person astatine a higher complaint than nan cohort that’s eligible, but chooses not to enroll. We besides spot that our telematics book of business performs amended from a profitability standpoint moreover aft nan discount is applied. That’s not nan longer-term goal. Our intent is to accurately value each segments astatine target. Between our important footprint successful nan commercialized car market, patient take complaint and conversion lift, we’ve built a important commercialized car telematics book of business. That book would beryllium a Top 15 commercialized car security bearer connected its own.

In summary, we are really pleased pinch nan maturation and capacity of our telematics efforts. But we person learned a batch since introducing these programs. One recognition, getting into telematics is not easy. It’s not conscionable arsenic elemental arsenic adding a caller standing variable. It takes broader and sustained effort, caller capabilities and investments. For example, we are asking our partners successful nan independent supplier transmission to return further steps to enroll customers, which tin see a supplemental app and moving done customer reservations pinch sharing their driving data. That requires an incremental level of support and training.

With telematics, we are now dealing pinch hardware and information transmission. We are besides successful nan logistics business, sending retired devices, search inventory levels and precocious dealing pinch world proviso concatenation issues. That’s a different group of vendors, method challenges, systems and business processes that we’ve had to activity through. I deliberation nan biggest quality is nan magnitude of information that these devices generate. We person to guarantee that information is being managed effectively. It’s imperative arsenic nan information is being transmitted and stored that is handled securely.

Also, arsenic nan largest commercialized car insurer successful nan United States, we person a batch of information and person developed effective tools, processes, and skills to negociate and exemplary those much accepted information sets. Telematics is an wholly different situation. One motortruck unsocial mightiness make complete 1 cardinal records per year. Our accepted approaches aren’t astir arsenic effective, transforming large information sets into variables that we tin trial and exemplary disconnected of.

A large advantage to america is that individual car done its efforts and investments complete nan past 20 immoderate years, has established a batch of these capabilities aliases learnings that we tin leverage. For example, our Snapshot ProView programme uses nan individual car Snapshot device. Given nan measurement that individual car has generated, we person a very competitory costs per device, and that instrumentality is already group up to transmit nan information backmost to our unafraid retention solutions.

In position of large data, individual car helped america move to their unreality solution, fundamentally a highly scalable cloud-based information retention and study service. This importantly reduces our processing clip to analyse information and astatine a overmuch little costs than accepted alternatives. They’ve besides provided support arsenic we upskill our squad to usage these caller tools.

To summarize this slide, getting into telematics requires a batch of effort. A competitory advantage that we person successful Commercial Lines is that our colleagues and Jim’s group person already laid a batch of that groundwork that we tin either usage aliases study from.

It takes a batch to guidelines up a starring telematics programme and to support that activity takes ongoing investment. I’ll stock immoderate of those ideas pinch this slide.

Near term, there’s a batch that we tin do to amended nan experience. We person information that shows wherever customers driblet retired of nan chimney aliases deed operational hurdles by granting information sharing consent aliases installing nan plug-in device. We person worked pinch our vendors and person caller business processes that will amended both. We person respective manual processes successful spot that support these programs. By automating those, we will little our programme expenses and amended nan customer aliases supplier experience.

There are a fewer segments that aren’t presently eligible for 1 of these programs. We’re looking to grow eligibility. One illustration is for our mini fleet customers that person their ain telematics service, but not physics logging devices. This could beryllium a work fleet for illustration plumbing. Our intent is to enroll them into a programme and entree nan information from their telematics work provider. Through these adjacent word plans, we’ll proceed to turn our telematics book, and pinch that further information proceed to refine and amended our scoring models. We’re besides excited astir caller information sources and applications. We’re seeing amended reception from segments that we target to having dash cams.

We’ve been doing a aviator pinch dash cams for complete a year. There’s information from video that we don’t seizure today, for illustration pursuing distance, which could beryllium valuable, and arsenic Jim shared, we’re willing successful really telematics tin thief pinch nan claims process. Dash cams would beryllium an further input that could beryllium meaningful for claims. We’re besides utilizing nan information to support our underwriting efforts. For now, that mightiness mean verifying different accusation connected nan exertion for illustration radius of operations aliases garaging Zip code, which are important for america to measure wherever nan conveyance is operated. Sometimes we request to travel up to corroborate that nan accusation connected nan exertion is correct. We tin usage telematics information to amended target which risks we should travel up on.

Our telematics people is presently bolted connected to our halfway model. Given not everyone is successful a telematics program, we lick our halfway exemplary first and past adhd a telematics people facet for those enrolled. Over time, we scheme to move much of nan telematics information into nan halfway product, particularly wherever we person those insights astatine clip of quote.

Here’s an example. This shows 1 truck’s driving shape for 60 days. On nan application, nan insured’s reside and garaging Zip is Elizabeth, New Jersey and they’ve listed their operating radius arsenic 25 miles. Our exemplary would usage accusation closest to that reside to find a territory factor. Some customers astatine car shed location mightiness ne'er spell into New York City. This motortruck goes tons of different places, but it turns out, there’s a reasonably regular shape of going into nan city. It’s difficult to show from this map, but from nan data, let’s opportunity 75% of nan trips spell from Elizabeth into New York City earlier turning around. A territory facet that puts much weight connected nan New York City acquisition would beryllium much suitable.

Part of our roadmap is to merge telematics deeper into our model. I don’t spot a clip we person a telematics only model. We cognize we get valuable segmentation from non-telematics variables, but location are variables for illustration garaging reside and radius, that proxy driving location and wherever nan existent telematics information would beryllium a superior solution.

Wrapping up, we’ve sewage a awesome commencement to our telematics journey. We’ve sewage a important use from nan acquisition and investments our colleagues successful individual car person made. And I’m really excited astir really we’ll proceed to usage telematics to thrust competitory advantage going forward.

Doug Constantine

This concludes nan antecedently recorded information of today’s event. We now person members of our guidance squad disposable for -- disposable unrecorded to reply questions, including presenters Jim Haas and Cory Fischer who tin reply questions astir nan UBI presentation. [Instructions] We will now return our first question. Stacy?

Question-and-Answer Session

Operator

Our first mobility for coming comes from Michael Zaremski pinch BMO.

Michael Zaremski

Hey. Great. Good greeting and acknowledgment for nan presentation. A first question, Progressive’s individual car mishap wave levels look to beryllium trending a batch amended than nan manufacture complete nan past year. I’m funny if you work together pinch that statement. And if you do, immoderate thoughts connected what’s causing nan amended than humanities mean inclination line? And I know, clearly, a batch of this telephone was devoted to segmentation, Progressive is simply a first mover -- aliases 1 of nan first movers successful telematics. So, that theoretically should, I guess, amended Progressive’s trend-line versus nan manufacture if I’m reasoning astir things correctly too. But would emotion to perceive much astir that.

Tricia Griffith

Yes. Mike, I deliberation you’re reasoning astir it successful nan correct way. A mates caveats. When we study frequency, we study incurred successful a batch of our competitors study paid, but we’ve been seeing this inclination much antagonistic successful nan manufacture for a while. We can’t estimate connected a batch of things. Obviously, segmentation is simply a large piece, we believe. We besides judge that operation of business could play a domiciled and that could beryllium operation successful states aliases operation wide from a preferred perspective. We talked successful nan 4th fourth and successful my missive astir maturation crossed each of our segments that we started to spot summation successful Q4. We person seen maturation again crossed each segments, but higher successful nan Diane’s Wrights and Robinsons. Again, we still spot it successful Sam’s, but it’s higher, truthful it could beryllium operation arsenic well.

The bully news is that we spot this information alteration quickly. So, if we request to alteration thing we’re doing from a pricing perspective, we’ll spot it beautiful quickly.

John Sauerland

I’d adhd a mates items connected that. So I deliberation Jim Haas’ descent wherever he showed nan retention of customers who are getting a surcharge versus a discount is simply a awesome lawsuit successful constituent of segmentation astatine work. So nan folks who are getting a surcharge, each other equal, are going to beryllium nan higher wave drivers and nan folks who are getting a discount are nan little frequency. And evidently successful nan marketplace, arsenic that continues to play out, that will thief thrust our wave much favorable than our competitors.

Additionally, we’ve talked astir underwriting efforts we put successful spot arsenic we were challenged by profitability. We’ve raised rates considerably arsenic we’ve shared. I will statement though that we person retained our underwriting restrictions reasonably tight. So, we’ve been capable to negociate that successful this very competitory situation to a constituent wherever we are capable to support nan underwriting restrictions, which mostly speaking are pushing disconnected nan higher wave customers and capable to raise rates astatine nan aforesaid time. So, I deliberation we are successful a beautiful bully place, some from nan complaint level position but besides continuing to defender against segments that mightiness beryllium underpriced.

Michael Zaremski

Got it. That’s helpful. My follow-up is regarding immoderate of nan commentary you made astir nan automakers. And I cognize we admit that you are not an automaker and you are partnering pinch them and it’s successful nan early stages. But I judge you utilized nan connection excited astir nan partnership. And I judge a batch of investors person felt that nan automakers could correspond a caller leg, aliases caller benignant of limb of competitiveness wrong nan industry. So funny if you’re having to -- possibly you tin shed much ray connected nan partnerships and only if Progressive is having to salary nan automakers for this data, why isn’t it a spot of a competitory threat arsenic well? Thanks.

Tricia Griffith

Yes. Sure, Mike. I’ll fto Jim Haas talk a small spot much astir that. But we deliberation title crossed nan board, whether it’s pinch nan OEs aliases pinch insure-techs is great. We besides consciousness for illustration erstwhile we person partnerships for illustration Jim talked about, it’s really important and it benefits astir importantly nan consumers. So Jim, do you want to adhd immoderate colour to that?

Jim Haas

Sure. Mike, you are right. We evidently salary for nan information yet goes to nan automakers, is simply a measurement for them to monetize that. They are putting each those hardware successful nan car that costs money. This is simply a measurement for them to get immoderate return connected that. Some OEMs are going to want to get an insurance, arsenic we’ve seen, immoderate mightiness not. And truthful this is simply a different measurement for them to get value-add retired of that information from us.

Operator

Our adjacent mobility comes from David Motemaden pinch Evercore ISI. David, you person nan floor.

David Motemaden

Hi. Thanks. Good morning. Tricia, I judge successful August you told america that, you thought car PIF maturation successful nan adjacent mates of years would beryllium difficult to lucifer nan 70% type of PIF maturation you guys saw successful nan six years, since nan commencement of nan past difficult marketplace successful 2016. Just wondering if we could get an update connected your thoughts connected that front, conscionable fixed nan challenges successful nan marketplace that immoderate of your peers are seeing, immoderate of nan losses they person reported and conscionable really you are emotion pinch your rates and what you are seeing connected nan caller apps? Just wondering really you -- do you still consciousness that measurement conscionable connected nan type of maturation that you deliberation we could spot complete nan adjacent 5 to six years?

Tricia Griffith

Thanks, David. I will show you I consciousness a batch much bullish than I felt astir 4 aliases 5 months ago. We went done reacting to severity trends that frankly we’ve ne'er seen before. I can’t foretell what PIF maturation will beryllium because we -- there’s a batch of biology things going on, and what I’ve learned complete nan past 3 years is to expect that there’s going to beryllium things that we haven’t prepared for, whether it’s nan utilized car prices, inflation, frequency, driving behavior, pandemic. That said, I judge we’re successful a really awesome position arsenic we sit. So, we said, we were going to commencement to return rate. I think, we foreshadowed that precocious ‘21. It took immoderate clip into 2022 to evidently commencement to gain into nan book. We do consciousness good, but we’re ever watching what’s happening and there’s been benignant of an ever-evolving changing.

So connected nan backstage rider car side, arsenic you know, we took 13.5 points past year. We still person astir 3 points of that to gain in, successful this almanac year. And conscionable for immoderate color, we took 1.5 points successful January. So, we proceed to look astatine trends, and nan early -- and nan early trends and nan complaint request -- that we request now to lucifer complaint to risk. But that said, and John Sauerland added this connected to nan first mobility from Mike and that is what --we’re successful specified a bully position now because we person -- there’s a batch of shopping retired there, a batch of prospects retired location because our competitors person been now raising rates. So, they’re catching up conscionable and sometimes exceeding us. But we’re successful conscionable a different position, because we sewage retired successful beforehand of it. So, there’s a batch of shopping, a batch of ambient shopping, which is really businesslike for us. And what happens pinch what some Jim and Cory talked about, arsenic good arsenic different variables, we judge we person superior segmentation. So, we’re going to drawback onto arsenic galore customers and evidently support arsenic galore customers arsenic we tin for arsenic agelong arsenic we can.

However, this timeframe successful this difficult marketplace lasts, and of people that segmentation and nan adverse action flywheel useful successful our favour because of our many, galore decades of investing successful things for illustration segmentation, competitory prices, our brand, et cetera. So, while I can’t foreshadow what our PIF maturation is going to be, we are going to do everything we tin to travel our longstanding extremity of increasing arsenic accelerated arsenic we perchance tin astatine our 96 mixed ratio and making judge we tin return attraction of our customers.

David Motemaden

Okay, great. That’s very helpful. And possibly conscionable pursuing up there, it sounds for illustration nan continuous monitoring that’s been an absorbing improvement that -- I’m willing to perceive what benignant of effect that has had connected underwriting profitability, and maturation successful nan 12 states wherever you’ve rolled it out. And really we should deliberation astir that arsenic you rotation it retired connected much states? Is that thing wherever we tin possibly spot a measurement alteration successful position of profitability aliases wave aliases thing from that position conscionable connected -- conscionable greater segmentation that you mightiness get from that?

Tricia Griffith

Yes. I mean, I deliberation from a costs perspective, evidently continuous is simply a small spot much expensive, but those costs person gone down complete nan years. But I think, what we’re excited astir and what Jim talked astir -- nan excitement astir is nan services that we’re going to supply particularly successful immoderate of nan claims examples. So, we will proceed to germinate for illustration we person since 1996 pinch our UBI products. And we judge that we’ll proceed to heighten our expertise to retired conception our competitors. What that intends from nan nonstop amount, we don’t cognize yet, but we’ll proceed to show and I’m judge ever truthful often we’ll update you connected wherever we’re astatine pinch our UBI offerings.

Operator

Our adjacent mobility comes from Alex Scott of Goldman Sachs.

Alex Scott

First mobility I had was conscionable connected -- each nan imaginable caller business conscionable looking astatine nan exertion maturation and truthful forth. How is -- really does benignant of nan maturation punishment from caller business coming connected look successful this benignant of situation possibly during anterior periods?

Tricia Griffith

Yes. You know, I’ve been reasoning astir that a batch because successful times wherever we person precocious growth, we often talk astir nan caller business penalty. And arsenic I’m reasoning astir it, penalties from my position are thing that is done to you because possibly you did thing wrong. As an example, Sunday, I was watching our youngest boy play Lacrosse. He sewage a punishment for slashing. He knew it. He was emotional. He did it. He took a knee. We’re a small spot different because nan things that we do and nan magnitude that we salary is each controllable.

As you witnessed erstwhile we pulled backmost connected media and did immoderate different things to make judge we reached our 96. So, from my perspective, what we are paying, truthful you’ll -- you saw nan summation successful January and our disbursal ratio specifically connected nan nonstop broadside because we beforehand load our acquisition costs there. It’s really an finance successful our future. It’s an finance for our owners, finance for our customers. So, it’s thing that we’re excited to do successful position of really we negociate nan business? And again, we person nan caveats pinch our ceiling of an aggregate, each business lines, 96 mixed ratio. So it’s difficult to comparison from nan past wherever we’ll go. But we cognize that this has been a really volatile situation and we person nan levers to propulsion backmost should we request to and throttle guardant should we request to.

So, can’t show you nan nonstop amount. I will show you that we’re beautiful excited astir nan position we are successful correct now. And again, we’re Progressive. So, we’re ne'er going to beryllium cocky and we’re ever going to beryllium really paranoid and we travel nan information maniacally and talk astir it each nan time. But we are really excited astir what we judge this difficult market, nevertheless agelong it lasts, brings.

Alex Scott

Second mobility I person possibly a small much applicable to nan telematics. When I deliberation done this and nan pricing advantage that it gives you complete immoderate competitors that are not doing it to nan aforesaid standard aliases possibly moreover conscionable to nan manufacture broadly, I admit you astir apt don’t want to for illustration quantify immoderate of these things, but could you benignant of talk to america astir directionally has that pricing advantage that it provides, has it expanded because of immoderate of nan things you’re doing? Or immoderate of these things that you’re doing conscionable allowing benignant of your pricing advantage to beryllium maintained arsenic others statesman to do much connected nan telematics beforehand but not to nan aforesaid degree? Or is it benignant of diminishing arsenic much competitors are conscionable for illustration much broadly adopting telematics? I guess, conscionable precocious level if you could talk astir that.

Tricia Griffith

Yes. I’ll talk astir it precocious level and past Jim and Cory tin measurement successful for their position connected businesses. But one, it takes a batch to get history of driving behaviour and to continuously study connected that. So, I deliberation you person to person a headstart, which is why we benignant of did a primer connected nan history of wherever we’ve been. We were retired up of it, obviously, astir 3 decades ago.

A mates points though, I deliberation nan -- and 1 that Jim made is, I deliberation it’s important to make judge that we are pricing complaint to risk. So though customers are ne'er happy erstwhile they get a surcharge, erstwhile they do and if they spell location other again, that’s adverse selection. So location is aggregate pieces of not conscionable the, N equals 1, but besides what tin hap from a competitory perspective. So, to beryllium capable to person nan UBI arsenic good arsenic our different segmentations to genuinely understand that complaint to consequence successful what John talked astir pinch our underwriting acumen is besides an important piece. I deliberation it’s astir apt much important connected nan commercialized statement broadside from nan position of, if I’m a bully driver and I thrust a truck, tin I prevention money connected my insurance, which is simply a large costs successful nan commercialized line? So I don’t cognize if Jim aliases Cory, you want to adhd anything?

Jim Haas

Personal Lines side, yes, location is surely much activity successful UBI than location was 10 years ago, let’s say. We are conscionable continuing to move our pricing forward, value much aggressively, return much advantage of that sloppy of what anybody other is doing. We want to value arsenic accurately arsenic we can, and get arsenic galore group into that programme arsenic we can.

Cory Fischer

Yes. Thanks, Alex. So for commercialized auto, we are nan largest commercialized car insurer and we are besides number 1 successful truck. And I deliberation pinch that, we person a batch much information than anyone else. And so, we have, we consciousness for illustration a activity position successful segmentation. I deliberation telematics extends that activity position comparative to nan marketplace. So, location are immoderate companies that are investing successful telematics. But I deliberation betwixt our size, nan magnitude of information we have, we judge we are expanding nan lead done telematics.

John Sauerland

I’ll conscionable add. So, complete nan history of nan individual auto, improvement successful telematics, early on, we weren’t pricing to nan afloat curve. So, we understood that a batch of group should beryllium receiving surcharges, and immoderate group should beryllium receiving bigger discounts. Because we were astatine nan forefront and we are seeking user adoption, we didn’t value to that afloat curve. I deliberation we are now very adjacent to aliases almost wholly pricing to that curve pinch nan information we person today. However, arsenic Jim was sharing, we tin proceed to beforehand nan science, proceed to propulsion further information elements that tin proceed to person america starring nan pack. So, our segmentation crippled is ne'er ending. We are ever trying to proceed to advance, to find further information to usage that tin support america pinch a spread betwixt america and nan competition. And arsenic Cory mentioned successful nan prepared comments pinch nan slides, Commercial Lines is astatine an earlier shape akin to wherever Personal Lines was. We still person a important nonaccomplishment ratio use successful aggregate for telematics and Commercial Lines, which means, we person further pricing options that we tin play arsenic competitors travel to marketplace pinch their offering. So, I deliberation we are successful a awesome spot from a telematics standpoint. We are not astatine each astatine nan extremity of nan journey. We are going to proceed to germinate and proceed to beforehand our competitory advantage, erstwhile it comes to pricing and telematics.

Tricia Griffith

I’ll adhd 1 past point conscionable because I deliberation this is simply a subtle nuance, truthful really important. And Cory mentioned it a mates of times. When he’s reasoning astir telematics successful his role, successful his anterior domiciled and Commercial Lines, he’s talking to Jim and their team. He referred to his colleagues and learnings that they have. This is really communal and very circumstantial erstwhile you deliberation astir our strategical pillars. One is our group and our culture. Our civilization is to spell backmost and forth, whether it’s talent and rotational jobs, but knowing learnings from nan first movers wrong nan company. That is really key, and I deliberation it’s really different because galore of america -- I deliberation Lori Niederst anterior to her domiciled erstwhile she anterior to her domiciled erstwhile she was successful CHRO, she shared galore years ago, nan magnitude of extent successful our activity ranks because we deliberation it’s really important for group to cognize galore sides of nan business. So though it’s subtle and it’s difficult to measure, nan measurement our civilization is and nan measurement our leaders activity and nan sharing of ideas and successes and opportunities is really important, particularly successful thing for illustration telematics.

Operator

Our adjacent mobility comes from Andrew Kligerman pinch Credit Suisse.

Andrew Kligerman

Hey. Thanks a lot. Really adjuvant reply to that anterior question, but I’d for illustration to elaborate connected it a bit. And conscionable reasoning astir nan truth that -- I don’t know, possibly 80%, 90% positive of nan insured Personal Lines organization utilizes Cambridge Mobile Telematics. I understand that Progressive’s information and analytics is incredibly robust, nan segmentation, you talked astir history and information use. But nan competitors tin spot each that. So my mobility is this replicatable successful a very accelerated fashion? What makes it truthful difficult not to replicate fixed that you’re each utilizing a akin platform?

Tricia Griffith

Yes. I’ll fto Jim talk astir that more. Similar level doesn’t mean we’re each utilizing nan aforesaid information aliases nan aforesaid models aliases utilizing nan information successful nan aforesaid way. So one, it’s costly to get into this. Over these past 3 years, we’ve invested a lot. So, you conscionable can’t each of a abrupt move on, understand your information early on, it’s different. In municipality and rural, it’s different pinch your different segmentation variables. But Cambridge is nan platform, but we’re not each sharing nan aforesaid information and outputting nan aforesaid nonstop thing. Jim, do you want to adhd anything?

Jim Haas

Sure. You’re right. Cambridge Mobile is our partner. We’ve had a awesome narration pinch them. They supply nan information postulation system that gets embedded successful nan app. And so, we do get that information from them. And you’re right, astir group usage them successful nan industry. I think, what’s different is we ain our ain algorithm. We usage that information nan measurement we want to, and we’ve learned a batch complete nan years astir really to make nan astir retired of that data.

And I deliberation you mentioned for illustration everybody tin spot that. That’s not really true. Most -- successful nan full industry, astir algorithms for UBI are revenge confidentially successful nan states. So, those are not shared pinch each of nan competitors. So, we can’t spot different companies’ algorithms, they can’t spot ours. So, we deliberation we tin -- we’ve developed an advantage there, and we tin support that. We besides person an OBD instrumentality which we connection immoderate of our customers pick, which gives america different root of data, which we deliberation helps calibrate immoderate of that arsenic well.

Andrew Kligerman

Very helpful. And that’s beautiful amazing, your mishap consequence product, wherever you’ve sewage nether 12 minutes to lick for immoderate of nan worldly connected site. I’m wondering if you could stock pinch america nan truth that nan effect connected LAE and severity, immoderate nonaccomplishment numbers? Anything you could stock location to summation immoderate penetration into really that affects your nonaccomplishment ratios?

Tricia Griffith

Yes. I deliberation that’s conscionable excessively new. We’re conscionable really dipping into this. We’ll astir apt person much connected that successful 18 to 24 months. Again, it’s thing that we’re willing in. We’ve ever been since astir apt 30 years agone want to make judge that we’re location for our customers and their top clip of need. So, our -- nan biggest point that we want to do location is to thief our customers get thief erstwhile they request it. And if we tin usage nan information from nan effect to commencement nan declare going and get them backmost into nan position they were earlier nan accident, springiness them that bid of mind. That’s beautiful important. And that could subordinate to a batch of awesome benefits successful position of retention, et cetera. But again, measurement excessively soon to beryllium capable to stock overmuch connected that and we’ll astir apt person much successful a fewer years.

Andrew Kligerman

Got it. And conscionable existent quickly, you mentioned 40% accrued usage successful UBI. Could you show america nan percent adoption, a percent of nan wide book of business that you have?

Tricia Griffith

From nan caller perspective, which is what we stock externally, it’s higher successful direct. Jim, correct maine if I’m wrong, astir 15% successful nan agency channel. A small spot lower? Okay. A small spot little successful nan agency channel, and past much successful nan direct. We connection it to everyone successful nan nonstop transmission coming in. And obviously, we activity pinch complete 40,000 independent agents. Some consciousness much comfortable making that offering. Not each do it, but we’ve seen an summation since 2019, which makes sense. And it’s a cleanable hole if you judge that you thrust safely and possibly you’re driving little often for caller business crossed nan committee arsenic different inflationary pressures deed consumers.

John Sauerland

I’d conscionable adhd that. So successful nan nonstop channel, nan return complaint is substantially higher than successful nan agency channel. It besides offers that successful nan commercialized abstraction nan request done nan agency transmission is very robust. So, we’re talking about, particularly pinch Smart Haul, which is mostly larger trucks that person higher mean security costs, nan use of enrolling successful a programme for illustration this is substantial. So, agents and consumers aliases business owners successful this lawsuit are measurement much apt to prime that arsenic an action and arsenic Cory said is highly predictive successful that transmission arsenic well.

Operator

Our adjacent mobility comes from Elyse Greenspan pinch Wells Fargo.

Elyse Greenspan

My first question, Tricia, goes to immoderate of your first comments, right? You said that early complaint would beryllium driven by nonaccomplishment trend. I mean, I recognize that it’s a very volatile situation these days, but what are your expectations for nonaccomplishment inclination erstwhile we deliberation astir 2023?

Tricia Griffith

We will conscionable proceed to watch it. That’s why I wanted to springiness you a small spot of penetration successful January taking 1.5 points. What we cognize is that we intimately show a batch of these trends. And I mentioned a bunch of them. It’s been specified a volatile respective years that we look astatine our soul data, UBI data, macroeconomic trends, each I tin show you is that we will beryllium capable to respond quickly and that’s benignant of embedded successful everything that we’ve done successful nan past 85 years. So, erstwhile we commencement to spot those aliases spot those trends and acquisition those trends, we’ll respond quickly. And that’s why we consciousness for illustration we’re successful a bully position because we were capable to respond quickly to nan severity trends that we started to spot successful precocious 2021 and why we’re sitting successful nan position -- nan enviable position we’re successful now, to beryllium capable to profitably grow.

Elyse Greenspan

And past connected nan UBI side, I thought astir of this was opted into correct for caller business customers. And I cognize that’s wherever you conscionable gave immoderate of nan percentage. If you’re astatine existent Progressive customer astatine renewal aliases conscionable during nan magnitude of your policy, tin you opt successful and take to usage a Snapshot product, if you want to effort to little your rate?

Tricia Griffith

Yes. And we really did. It was in, I deliberation 2021, possibly aliases 2022. I’m not judge precisely erstwhile we did, but we really sent retired worldly to our existent customers, erstwhile trends started to alteration to make judge that they had that offering. And we had a mini group isolated from that. But yes, we want to beryllium capable to supply that if it makes consciousness for each driver. But it’s usually a caller business.

John Sauerland

Yes. That was erstwhile we saw COVID driving down materially and made an connection to our existing customers to prevention done Snapshot and not galore took america up connected that offer. So it’s unfastened and available. Customers tin do it. They conscionable haven’t taken america up connected it significantly.

Elyse Greenspan

And past 1 much speedy one. So you guys mentioned nan caller merchandise is continuously monitoring. So nan authorities that you’re progressive successful pinch that Snapshot product, anyone that uses Snapshot has to beryllium continuously monitored aliases tin they opt into a different monitoring period?

Jim Haas

So erstwhile they opt into nan program, it is -- location is only continuous. You don’t get to prime astatine that. Obviously, we can’t unit them to proceed to show forever. So, we’ve sewage benignant of -- nan programme is designed astir that and accommodates erstwhile group extremity giving america data, if they do, but we surely promote them to proceed to turn that data. The biggest discounts are disposable that measurement and nan program’s creation that we’d beryllium monitoring continuously.

Operator

Please standby for our adjacent question. Our adjacent mobility comes from Tracy Benguigui pinch Barclays. Tracy, you person nan floor.

Tracy Benguigui

Thank you. Even though you consciousness for illustration you’ve approached complaint adequacy successful astir states, I’m wondering, since you are increasing rather quickly pinch little advertisement spend, could you get distant pinch getting moreover much rate? I mean, you did mention immoderate of your competitors are exceeding you guys pinch rates. Do you consciousness like, it’s good to beryllium cheaper than some, fixed your consequence selection?

Tricia Griffith

Well, we want to beryllium competitory and we want to value to early nonaccomplishment trends. So, we proceed to look astatine that and we will summation rates, should we spot severity aliases wave trends change, and that’s why I did springiness that information constituent successful January. So we will enactment connected apical of trends and we will proceed to grow. And for illustration John said, we haven’t opened up our aperture successful position of not looking astatine things that are important from our underwriting perspective. So we still person much leverage from that perspective. But now to -- for me, it is each astir utilizing nan information and pricing accurately arsenic quickly arsenic imaginable to lucifer each complaint to risk.

Tracy Benguigui

Got it. Could you besides touch upon your inaugural to raise retention amongst multiproduct customers that was mentioned successful your filing yesterday? What are nan cardinal tenants to execute that?

Tricia Griffith

We cognize that our customers and I deliberation astir consumers pinch security want unchangeable rates. And truthful we want to beryllium capable to have, if possible, moreover successful this benignant of volatile situation what we call, mini bites of nan apple, to not person to summation rates for illustration we had to successful 2022 to enactment up of trends. We besides person very galore offerings. So, we person whether it is successful our Progressive Advantage Agency for we person a unchangeable bearer of home, unaffiliated partners we activity pinch to person much and much of those bundles, Wrights and Robinsons, we will proceed to do that. And we really activity semipermanent to beryllium benignant of nan destination company. And truthful whether it’s connected our insubstantial aliases not, we deliberation of that successful position of our pillar of being where, erstwhile and really our customers want to shop and buy, truthful wide coverage. So, connected nan Personal Lines side, we waste different people’s home, institution erstwhile it doesn’t needfully opportunity wherever we’re going to go. On nan Commercial Lines side, we besides usage our merchandise arsenic good arsenic others for a mini business, workers’ comp, GL, et cetera.

So, it really is astir pursuing nan customer and nan much we’re capable to connection them, moreover pinch nan Progressive Advantage Agency wherever it’s -- we activity pinch a batch of different partners ranging from life security to recreation security to jewelry insurance, nan much that nan customers person and nan much that we’ve earned their trust, nan longer they stay.

So, retention continues to beryllium nan beatified grail. We’re seeing affirmative improvement. We’ll proceed to study connected that arsenic nan quarters unfold, but we do cognize 2 parts of retention are really astir having unchangeable rates and having awesome service.

Tracy Benguigui

Great. And is location a conception you’re focusing much on? Agency, will that beryllium much a attraction versus direct?

Tricia Griffith

No. We attraction crossed nan board. They’re a small spot different successful position of control. So, an supplier tin determine if they want to shop it connected behalf of nan consumer, but they’re looking astatine nan aforesaid point arsenic consumers are. And that’s making judge that our communal customers person unchangeable rates pinch a institution pinch a awesome marque and awesome service. But our extremity is to widen PLEs crossed each conception individually and successful nan aggregate.

John Sauerland

As Tricia was saying, Tracy, we’re continuing to broaden nan offerings to our consumers. So, you talked astir multi-product households arsenic Tricia was implying those households enactment pinch america a batch longer than single-product households and overmuch longer than our humanities halfway customer of Sam, who we telephone nan inconsistently insured customer.

So, our book does proceed to displacement much towards nan Robinson extremity of nan spectrum which is really nan longer retaining extremity of nan spectrum. We have, arsenic Tricia besides noted, seen a setback arsenic we’ve had to raise rates aggressively. That is coming back. Our PLEs are starting to inclination positively astatine slightest connected nan trailing 3 metric. And nan trailing 12 is not yet afloat turned, but surely nan trailing 3 is nan starring parameter of nan trailing 12.

So, we are decidedly focusing connected much multi-product households arsenic we rotation retired caller products successful nan individual car space. Increasingly, we find segmentation that tin make america much competitory for those preferred customers. Our book continues to displacement that way. And arsenic we get to a much unchangeable standing environment, I deliberation you’ll spot our PLEs proceed to turn arsenic they person been earlier we had to return a batch of rate.

Operator

And our adjacent mobility comes from Josh Shanker astatine Bank of America.

Josh Shanker

Could you please springiness immoderate insight? You person nan argumentation conversion and caller exertion numbers for nan afloat twelvemonth 2022, but it seems for illustration thing inflected successful nan 4th quarter. Can you springiness immoderate denotation connected what’s happening 4th fourth versus 4th fourth 2021 successful quote conversion and caller argumentation apps and possibly into ‘23 arsenic well?

Tricia Griffith

Yes. We don’t people caller apps connected a quarterly basis, but we did want to show it for year-over-year successful nan opening slides we had. Basically, what happened was shopping started, nan difficult marketplace started. We were successful a bully position, and there’s a batch of prospects that began shopping. And we had bully sum astatine awesome rates and we were capable to convert. So, it’s really benignant of erstwhile we started to spot things turn. We were successful a bully position for that from a staffing position connected nan income broadside and nan claims side. But yes, that’s really benignant of erstwhile we saw nan difficult marketplace churn.

John, you want to adhd anything?

John Sauerland

Sure. Josh, we do supply you twelvemonth to day numbers done nan 3rd 4th and nan 4th quarter. So, if you conscionable presume an adjacent weighting, you tin travel to a number, but we besides successful nan position showed you existent charts of those. So, you can’t spot precisely what nan number is, but you travel beautiful darn adjacent by looking astatine those charts. So, nan short communicative is conversion was up considerably successful nan 4th quarter. Prospects were up considerably successful nan 4th quarter, and evidently caller apps arsenic a consequence were up a lot.

Josh Shanker

And mobility for nan commercialized side. Since acquiring Protective, tin you talk a small spot astir your ample fleet offering and really that’s changed?

John Sauerland

Can you repetition nan question, please?

Josh Shanker

I’m sorry. The mobility was, really has ample fleet changed arsenic portion of your business since acquiring Protective?

Tricia Griffith

Thanks. Not substantially. Yes. I mean, we’re still learning a batch and nan integration’s going really well, and it was really thing that was additive to what we were increasing from our mini fleet. So, we proceed to beryllium excited astir nan acquisition of Protective and will continue. And I’ve met a mates times pinch Mike Miller, who’s moving Protective. He came from nan commercialized statement broadside and is now moving that. So he’ll beryllium excited to person his maturation scheme successful play. We’ve been focusing successful nan past year, truthful really connected integrating nan institution wrong Progressive astatine large.

Operator

Our adjacent mobility is coming from Meyer Shields pinch KBW.

Meyer Shields

Great. Two related questions, I think. This is connected descent 26 pinch a 15% information discount. The first is I was hoping you could talk america done what underpinned nan determination to raise nan discount. I would’ve astir apt naively guessed that incremental accusation has little marginal utility. And nan 2nd mobility is each of equal, if I’m a bad driver and I get a surcharge, past I get a bigger information discount, past really does that facet into I conjecture retention and profitability?

Tricia Griffith

Yes. I’ll fto Jim talk astir that. I deliberation nan larger discount is what John was saying. We’re pricing to nan curve -- to nan afloat curve. And truthful we cognize those customers are -- person awesome driving behaviors and we’re going to adhd them. And of course, nan adverse predetermination is connected nan drivers that are not truthful bully successful nan surcharges.

Do you want anything, Jim?

Jim Haas

Sure. Yes. Raised nan information discount, successful portion we’re going to proceed arsenic we’re asking customers to do much successful that case, and we wanted to promote them. And nan information discount creates a larger inducement for that. As for really it would subordinate if you yet sewage a surcharge connected nan renewal term, nan information discount is only for nan first term. So it’s removed, erstwhile you get to nan renewal. And so, a bad driver is now getting a larger surcharge and they’re getting a larger discount removed disconnected nan first term, which would get america priced much accurately connected them successful nan consequent terms, which is nan goal. So, nan information discount is location to promote group to participate, and past we conscionable value arsenic accurately arsenic we tin connected nan consequent terms.

Meyer Shields

Second question, I’m reasoning of California, but location whitethorn beryllium different regions wherever standing elasticity is limited. It seems for illustration nan economical benefits are of UBI monitoring are enormous. Is location a chance of getting this incorporated into nan standing algorithms for much risky states?

Tricia Griffith

We’d emotion to beryllium successful California. That’s benignant of a history from a batch of nan proposition 103, things that came up many, galore decades ago. We want to turn successful California. We talked astir that a lot. It’s nan astir populous state. But successful nan meantime, we will proceed to activity pinch nan section to get nan rates that we request to make judge that we scope our target profit margins.

Operator

Our adjacent mobility comes from Paul Newsome pinch Piper Sandler. Paul, spell up pinch your question.

Paul Newsome

Good morning. Thanks for nan call. I was hoping you could talk a small spot astir if nan telematics, peculiarly nan continuous usage of telematics are allowing you to efficaciously alteration prices faster if nan situation changes without having to really record a complaint change. It sounds for illustration that’s possible, but I don’t cognize capable astir really nan formulas activity for telematics products to cognize if you tin efficaciously respond to biology changes done nan telematics merchandise without really changing nan filing?

Tricia Griffith

Good question, Paul. I’ll fto Jim return that.

Jim Haas

Paul, you’re right. The customer is continuously monitoring and they’re driving changes dramatically, for illustration because of a pandemic aliases thing for illustration that, nan telematics standing connected nan renewal would prime that up complete time. In position of nan effect of that, you person to conscionable -- we conscionable started to rotation retired continuous past year. For nan first six months, it looks conscionable for illustration it did before, it’s not until nan renewal that it changes, a batch of nan states we elevated were towards nan backmost half of nan year. So they’re conscionable coming up connected their first renewal, so. And past you request to build up a bigger -- that will turn complete clip to beryllium a bigger stock of nan in-force book. But correct now, it’s still early days of that. So it will beryllium a small while earlier that’s for illustration a really effective system for that. Plus, we would request to get nan complaint connected each nan group who aren’t successful UBI, we would do that done accepted means.

Paul Newsome

Can you talk astir really quickly you tin alteration nan algorithm arsenic well? Is that thing that intends that thing tin spell into a filing aliases we efficaciously conscionable alteration nan algorithm for some nan continuous and nan non-continuous, if you spot an biology alteration of immoderate type?

Jim Haas

Typically, that’s benignant of filing. We record nan algorithm of nan states confidentially and that’s typically really that would beryllium done.

Paul Newsome

Great. Thank you. That was my questions. These are awesome calls. Thank you very much.

Operator

Our adjacent mobility comes from Gregory Peters pinch Raymond James.

Gregory Peters

Most of my telematics questions person been answered. Tricia, successful 1 of your comments you talked astir media spend. I cognize you guys spell done an yearly budget. Can you talk to america astir your position connected your advertizing media fund for 2023 versus 2022?

Tricia Griffith

Yes. So, I mean, we perfectly do a budget, but past ongoing, we measure it based connected nan ratio of nan spend. We look astatine our targeted acquisition cost, our costs per waste and past -- and benignant of wherever we’re getting nan business from. So I talked a small spot astir ambient shopping, which, of course, is really efficient. We’re successful a small spot much of that position now. But, what we will do is arsenic nan twelvemonth progresses, we will continually measure what we request to do to walk much if we judge it’s businesslike aliases propulsion backmost if we judge we’re butting up against our 96 ceiling. And those are conversations that hap continuously.

Some things we -- to get benignant of precocious discounts we salary for upfront. So those are benignant of -- those spend. But we person a batch of flexibility, particularly connected nan integer broadside to bolt backmost should we request to, for illustration you saw successful nan past year. So, we person a budget, it’s fluid. And complete nan years, it tin spell up aliases down depending connected what we judge is successful nan champion liking of profitably increasing nan Company.

Gregory Peters

Does that reply mean that nan fund is higher for ‘23 versus ‘22? I’m not judge what it means.

Tricia Griffith

At this constituent successful time, it could beryllium higher. I mean things changed. So, it was higher past year. If you would person asked maine this past January, I said it would beryllium higher than nan twelvemonth before, but it didn’t extremity up being that because we had to make immoderate flexibility. So, we fund for what we deliberation tin hap pinch a batch of flexibility.

John Sauerland

A mates of adds there. So it’s -- I would qualify it arsenic move and opportunistic. So, to nan grade we consciousness we’re adequately priced, we’re going to walk a batch much connected advertising. Again, pinch arsenic Tricia said, an oculus towards our targeted acquisition costs that we priced into nan merchandise and our life economics connected those policies. But, if you look astatine our disbursal ratio, particularly our nonstop disbursal ratio for January, arsenic an example, you tin spot it was up. So, clearly, done nan second portion of past twelvemonth arsenic we were moving difficult to guarantee we deed our 96 mixed ratio for nan year, you saw that disbursal ratio driblet which was driven to a ample grade by little advertizing costs. In January, you saw that popular backmost up, which is simply a awesome parameter that we’re spending much connected advertizing correct now.

Gregory Peters

Okay. My 2nd mobility was connected reinsurance. Now, nan market’s difficult that you’ve had. Obviously, reinsurance is an important portion of your communicative past year. Can you talk to america astir your position connected reinsurance and really it mightiness alteration this twelvemonth versus past year?

Tricia Griffith

Yes, absolutely. We person Brandon [ph] present who runs our reinsurance organization. So, I’ll person him measurement in.

Unidentified Company Representative

Thanks for nan mobility connected reinsurance. I mean, I deliberation we -- peculiarly pinch really we adapted to nan placement astatine 1/1, we’ll transportation that guardant to really we look to our June placement, which is really nan halfway portion of our program. We thin to beryllium reasonably blimpish successful really we want to clasp spot feline losses. I deliberation we’ll proceed that. We’ll person to beryllium elastic successful what nan marketplace is consenting to connection arsenic acold arsenic really we tin tailor that to what we determine to purchase.

Gregory Peters

Does that mean you’re going to person a higher deductible aliases a little deductible?

Unidentified Company Representative

It’s a small early to opportunity precisely wherever we’re going to onshore connected that. Certainly, nan bottommost extremity of reinsurance programs person seen a batch of pressure, not conscionable this twelvemonth but complete nan past mates of years. We will beryllium looking astatine different imaginative options if request beryllium to negociate our retention.

Operator

Our adjacent mobility comes from Michael Ward pinch Citi.

Michael Ward

I did person a mobility connected telematics, specifically nan OEM information and vehicles. Just funny if you person immoderate information connected nan capabilities of nan existing vehicles connected nan roadworthy successful nan U.S. It conscionable -- it seems for illustration that mightiness beryllium constricted to much newer vehicles pinch cellular information connections, which I get nan consciousness mightiness beryllium -- astatine slightest presently mightiness beryllium a reasonably mini chunk of nan conveyance organization successful nan U.S., conscionable fixed turnover. So, conscionable wondering if you tin elaborate connected that astatine all.

Jim Haas

Yes, you’re correct. The patient we’re talking astir depends upon vehicles pinch nan cellular relationship arsenic we’re referring to OEMs complete nan past respective years person been investing successful that. They’re successful really different places depending connected nan OEM. Some are -- person had been location for a number of years, immoderate are still moving connected it. So, it’s -- and it does return a while for nan fleet to move over. So, it’s very focused connected a fewer OEMs and nan astir caller exemplary years. But arsenic we mentioned, we’ve sewage relationships pinch GM and Toyota, which are 2 of nan larger ones. They’ve sewage much of an installed base. And we expect different -- almost each OEM is moving successful this direction. So we expect that this organization will turn complete time.

Michael Ward

And past possibly could you talk benignant of nan take-up betwixt OEM information versus utilizing nan mobile telephone app route? It conscionable seems for illustration there’s much hurdles progressive successful nan mobile app, and that possibly that’s why take-up wasn’t awesome initially. And truthful benignant of funny astir really you spot those 2 trending?

Jim Haas

Adoption successful nan full programme wide has been up, and we’re happy pinch nan take of some mobile and OEM. So we’re happy pinch some of those programs. We conscionable connection different options to consumers depending connected really they want to stock that data. And truthful we’re conscionable trying to get nan biggest footprint we tin and some person been increasing.

Michael Ward

Okay. So possibly conscionable to elaborate connected that. I deliberation you guys mentioned that nan take-up aliases nan take wasn’t awesome for existing customers. And so, I’m conscionable funny what -- why mightiness it beryllium awesome for caller customers than -- is portion of it, conscionable nan competitors raising rates presently aliases nan shopping is up?

Tricia Griffith

Yes. I would conscionable opportunity it’s 1 of nan things that caller business erstwhile you’re asking for a bunch of information to benignant of measure nan complaint to risk. When I talked astir nan existent customers, we were doing that successful 2020 because we knew group were struggling pinch their finances. Everything was going up from groceries to et cetera. So we did benignant of a trading run and conscionable astir group didn’t do it. I deliberation you get benignant of -- conscionable for illustration anything, whether it’s life security aliases wellness security you benignant of make that determination and past you instrumentality pinch it. It’s thing you don’t needfully want to do again. So, it’s conscionable easier to do a caller business erstwhile we’re acquiring each nan accusation we request for an meticulous rate.

Operator

Our adjacent mobility comes from Ryan Tunis pinch Autonomous.

Ryan Tunis

I had a mates connected conscionable nan UBI stuff. So, nan first one, conscionable reasoning astir nan collision detection. I’m funny if possibly that could perchance person immoderate benignant of effect connected wave because I would deliberation that there’d beryllium a batch of customers pinch benignant of smaller dollar claims that wouldn’t want to show their security company, they sewage successful nan clang and conscionable to support their -- nan rates wherever they are. So is location immoderate anticipation that you knowing that they sewage successful nan clang that perchance lead to you really getting much claims successful nan door?

Jim Haas

Yes. Thank you, Ryan. It’s a bully question. In this peculiar case, nan measurement nan clang discovery algorithm works, it’s looking really for much terrible accidents. It’s not trying to prime up fender benders. So, these are claims that we afloat expect would person gotten reported either way. These aren’t mini dollar claims, wherever personification mightiness conscionable take either not to repair aliases to grip it retired of pocket. These are larger claims. So, we don’t deliberation of it. We deliberation we’ve gotten these claims anyway.

Ryan Tunis

Got it. And past I conjecture conscionable reasoning astir immoderate of nan telematics. So 1 mobility I had was for nan drivers that you find giving really large discounts to beryllium for illustration 40%, what -- if you look astatine for illustration benignant of nan accepted security standing variables you utilized that are not successful telematics space, I don’t know, ZIP code, FICO, whatever, tin you tie immoderate conclusions astir for illustration erstwhile you’re giving really large discounts to customers, which of nan variables thin to person been benignant of nan shakiest predictive indicators? That’s nan first part. And past besides I was conscionable funny astir is erstwhile you find yourself giving a surcharge for nan continuous, for illustration six months later, you gave nan discount, really you’re giving a surcharge, what are nan main reasons that you’re uncovering that you’re having to springiness a surcharge aft getting a discount?

Jim Haas

So, connected nan first portion of your mobility successful position of really -- what are nan accepted variables and what it informs, nan full constituent of UBI that is incremental to each of that. So, if we could person seen that these variables without UBI, we’re inaccurate, we would person fixed it. UBI gives america caller accusation astir that customer that nan accepted variables thin to fto you conception further, not conscionable unrecorded successful nan ZIP codification aliases they person this in installments score. But this personification wrong that is different than nan different personification that different looks nan same. So, that’s nan point, it’s improving nan segmentation.

In position of nan surcharge, nan discount we springiness is simply a information discount, which is conscionable for signing up. And so, if they move from nan discount surcharge, it’s simply because we’ve past gotten that driving information and continuous model, theoretically, group could move from 1 to nan other. But successful position of why personification will get a surcharge, our model, arsenic we benignant of stock connected nan website, it uses things for illustration difficult braking, really overmuch you drive, erstwhile you thrust variables for illustration that. So folks who thin to get a surcharge thrust much and thrust -- person much difficult brakes. This is simply a motion of really aggressively they’re driving. Those are typically immoderate of nan variables that fig into that.

Ryan Tunis

Got it. And conscionable I conjecture pursuing up, truthful I perceive you it’s incremental. But what astir conscionable successful position of conclusion, is it usually -- tin you opportunity thing astir those who get 40% thin to mostly beryllium overmuch much preferred aliases those who get benignant of successful nan 40% discount thin to beryllium much mixed aliases thin to beryllium a small spot much connected -- a small spot little standard?

Jim Haas

I deliberation nan UBI is benignant of showing america it’s incremental to each of that. So nan -- intentionally, we don’t want it to look that way. We want it to beryllium -- if we knew nan preferred customers were much apt to get nan discount, we’d conscionable springiness them a bigger discount successful nan first place. So, we effort to usage UBI to benignant of benignant retired this preferred customer deserves an moreover bigger discount. This different preferred customer deserves possibly a surcharge. So, it’s really -- it’s segmenting beyond what we already have.

Doug Constantine

We’ve exhausted our scheduled time. And truthful that concludes our event. Stacy, I will manus nan telephone backmost complete to you for closing scripts.

Operator

That concludes nan Progressive Corporation’s 4th fourth investor event. Information astir a replay of nan arena will beryllium disposable connected nan Investor Relations conception of Progressive’s website for nan adjacent year. You whitethorn now disconnect.