Personal auto

Root has has been dependent on private equity and reinsurance – a source of capital in flux given the Covid-19 pandemic – to continue operating at its current growth rate.

The BLS released February CPI data which included a 0.3% personal auto premium inflation. While the figure is up from 0.0% the previous month, these levels of inflation have not been seen since 2007, and point to carriers competing strongly for growth.

The insurer will have access to the data of customers driving 2020 model vehicles.

J Adam Abram said the carrier would closely monitor its book of run-off ride-share business.

The biggest drag on underlying results was personal auto.

Progressive reported solid January results, but its stock still under performed the market by ~3% on the day as it became the latest to face the pressures of meeting elevated expectations in auto.

Coming into 2019, with margins reaching cyclical highs, and pricing still elevated, the dynamic in auto changed on a dime.

Multiple P&C companies presented at the Bank of America conference. We present quick hits of the highlights.

A competitive market continued in auto insurance in January with the BLS CPI statistics showing auto prices flat at 0%.

Kemper pointed to divergent competitive trends between non-standard and preferred.

On Thursday morning, Travelers reported EPS of $3.32 versus $2.13 YoY and a headline beat versus analyst consensus of $3.29, in part driven by low catastrophe losses (thanks to an aggregate reinsurance recovery).

The car insurer, which has held quota share partnerships with Greenlight Re, entered receivership earlier this month.