{"id":966,"date":"2023-03-04T12:00:25","date_gmt":"2023-03-04T17:00:25","guid":{"rendered":"https:\/\/www.wikifri.com\/?p=966"},"modified":"2023-03-05T16:59:56","modified_gmt":"2023-03-05T21:59:56","slug":"3-things-03032023","status":"publish","type":"post","link":"https:\/\/www.wikifri.com\/3-things-03032023\/","title":{"rendered":"3 Things – Heavy Losses, Upstart Results & Progressive Telematics"},"content":{"rendered":"

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Hello Friends!\u00a0 The main news of the week was a slew of earnings and results from insurers.\u00a0 Heavy losses continue, earnings from Hippo and the first public report from Skyward Specialty and Progressive discusses their telematics strategy.\u00a0 Here are the three things we learned:<\/p>\n<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n

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Heavy Losses Amidst Economic Challenges<\/p>\n

State Farm\u00a0reported<\/a>\u00a0a $13.2 B underwriting loss.\u00a0 Probably the most eye-popping headline of the week.\u00a0 The 2022 underwriting loss was due to significantly higher auto and homeowners claims and catastrophe losses.\u00a0 Fortunately they remain financially strong but this is perhaps the biggest example of the difficult environment that personal lines writers face.\u00a0 Berkshire Hathaway’s\u00a0annual report<\/a>\u00a0outlined GEICO’s $1.88 B loss.\u00a0 They voluntarily reduced auto policies-in-force by 1.7 million a move that looks to be focusing on the most profitable and low risk drivers, more on that later.\u00a0 Mr. Buffett commented on other insurance operations explaining that Alleghany helped them increase their insurance float from $147 billion in 2021 to $164 billion in 2022.\u00a0 Since purchasing their first insurer in 1967 Berkshire’s float has increased 8,000 fold through acquisitions, operations and innovation.\u00a0\u00a0Nationwide’s<\/a>\u00a0operating income fell to $1.4B in 2022 from $2.8B in the year prior and their total company assets decreased by $25.5B.\u00a0 Cat losses represent 12% of their loss ratio and has doubled over the past decade in what the CFO describes as the ‘most dramatic economic conditions in more than 50 years’.\u00a0\u00a0Argo<\/a>\u00a0reports a $111.8M loss as the Brookfield acquisition looms.\u00a0 They have also asked to delay their 10-K filing.<\/p>\n<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n

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Upstart Results Less Dramatic<\/p>\n

Hippo earnings<\/a>\u00a0read similarly to the other public insurtechs.\u00a0 They are growing premium and reducing loss ratio but it is still very hard to see when they will become profitable.\u00a0 What does look promising for them is their strategy to be diversified with a digital insurance marketplace First Connect Insurance Services and fronting operation Spinnaker.\u00a0 Instead of having to rely on becoming profitable in the difficult homeowners market they have the opportunity to pivot into other directions acting as an intermediary and receiving fronting fees for specialty programs.\u00a0\u00a0Skyward Specialty<\/a>\u00a0had their first public earnings release.\u00a0 Their CEO says that they will start to slow underwriting hiring but continue looking for top talent.\u00a0 Their net written premium grew 27.6% and they have a healthy combined ratio of 92.4 making their stock steady since the IPO earlier this year.\u00a0 They outlined growth areas in surety, professional lines and transactional excess and surplus.<\/p>\n<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n

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Progressive’s UBI \/ Telematics Strategy<\/p>\n

Progressive’s CEO took an opportunistic stance in a recent\u00a0investor presentation<\/a>\u00a0saying they will seek new auto business as rates near adequacy.\u00a0 They have been offering usage-based auto insurance for 25 years, a pioneer in telematics, they have amassed billions of miles of data.\u00a0 They are making moves to incentivize drivers to switch to their telematics program increasing the enrollment discount from 10% to 15%.\u00a0 As throughout their history, they know they can use data to stay ahead of trends and continue pricing discipline.\u00a0 In related news, Cambridge Mobile Telematics, the world-leading telematics provider, announced their\u00a0intent to purchase<\/a>\u00a0European-based Amodo.\u00a0 CMT serves 21 of the top 25 insurers in the US, this acquisition will extend their functionality and reach globally and especially in Europe.<\/p>\n<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n

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Thank you for following us, we appreciate your feedback and continued support. \u00a0Stay productive, stay safe and stay in touch!<\/p>\n<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Hello Friends!\u00a0 The main news of the week was a slew of earnings and<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"\n3 Things - Heavy Losses, Upstart Results & Progressive Telematics - Wikifri<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wikifri.com\/3-things-03032023\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 Things - Heavy Losses, Upstart Results & Progressive Telematics - Wikifri\" \/>\n<meta property=\"og:description\" content=\"Hello Friends!\u00a0 The main news of the week was a slew of earnings and\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wikifri.com\/3-things-03032023\/\" \/>\n<meta property=\"og:site_name\" content=\"Wikifri\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-04T17:00:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-05T21:59:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wikifri.com\/wp-content\/uploads\/2021\/04\/Three-Things-300x157.png\" \/>\n<meta name=\"author\" content=\"Nick Coenen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nick Coenen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.wikifri.com\/3-things-03032023\/\",\"url\":\"https:\/\/www.wikifri.com\/3-things-03032023\/\",\"name\":\"3 Things - 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