2024-08-06 11:53:09 ET
The Progressive Corporation (PGR)
Q2 2024 Earnings Conference Call
August 06, 2024 09:30 AM ET
Company Participants
Doug Constantine - Director, Investor Relations
Pat Callahan - President, Personal Lines
Jay VanAntwerp - Media Business Leader
Dave Krew - Acquisition Experience Team
Tricia Griffith - President & Chief Executive Officer
Conference Call Participants
Bob Jian Huang - Morgan Stanley
Elyse Greenspan - Wells Fargo
Mike Phillips - Oppenheimer
Gregory Peters - Raymond James
Josh Shanker - Bank of America
Robert Cox - Goldman Sachs
Jimmy Bhullar - JPMorgan
Michael Ward - Citi
David Motemaden - Evercore ISI
Ryan Tunis - Autonomous
Michael Zaremski - BMO
Presentation
Doug Constantine
Good morning, and thank you for joining us today for Progressive Second Quarter Investor Event. I'm Doug Constantine, Director of Investor Relations, and I will be a moderator for today's event.
The company will not make detailed comments related to its results in addition those provided in annual report on Form 10-K, quarterly reports on Form 10-Q and the letter to shareholders, which have been posted to the company's website. This quarter includes a presentation on a specific portion of our business, followed by a question-and-answer session with members of our leadership team.
The introductory comments and the presentation were previously recorded. Upon completion of the previously recorded remarks, we will use the balance of the 90 minutes scheduled for this event for live questions and answers with the leaders featured in our recorded remarks as well as other members of our management team.
As always, discussions in this event may include forward-looking statements. These statements are based on management's current expectations and are subject to many risks and uncertainties that could cause actual events and results to differ materially from those discussed during today's event. Additional information concerning those risks and uncertainties is available in our annual report on Form 10-K for the year ended December 31, 2023, as supplemented by our 10-Q reports for the first and second quarters of 2024. We will see discussions of the risk factors affecting our business, safe harbor statements related to forward-looking and other discussions of the challenges we face. These documents can be found via the Investor Relations section of our website at investors.progressive.com.
To begin today, I am pleased to introduce our Personal Lines President, Pat Callahan, who will kick us off with some introductory comments. Pat?
Pat Callahan
Thanks, Doug. Good morning, and thank you for joining us today. I'm Pat Callahan, Personal Lines, President, and I'm pleased to introduce the topic of today's presentation, direct acquisition.
Our vision is to become consumers, agents and business owners, number one destination for insurance and other financial needs. To achieve that vision, we strive to be available where, when and how consumers want to shop for their insurance and to optimize our experiences to meet the needs of individual consumers. A foundational element of this optimization is to understand the differences between our agency and direct channel customers.
Agency customers often choose that channel, because they value the professional local counsel, ease of shopping, breadth and depth of product and carrier options available through independent agents. These customers often have more complex insurance needs. And as such, the expertise provided by an agent coupled with the personal relationship agents build with their customers gives the customer peace of mind. The direct channel customer frequently places higher value on the convenience and ease of access afforded through self-service 24/7 shopping and servicing.
They often have less complex needs and feel comfortable making insurance decisions after educating themselves through the tools that we provide online, supplemented by the knowledge of our trained and licensed direct consultants. The customers, segmentation and economics of these two auto insurance distribution channels are fundamentally different, which is why we've developed, deployed and optimized distinct personal auto products for each channel.
The result of these distinct products is not necessarily higher or lower rates in one channel versus the other, as we target similar combined ratios. But instead, delivers products that better aligns our rates with the different indemnity and expense characteristics of each channel....
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The Progressive Corporation (PGR) Q2 2024 Earnings Call Transcript