Personal auto

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.

A past industry critic of Root has shifted to a more optimistic view of the company’s future.

New inflation data shows continued pricing declines and rising average severity. Margin pressures continue to build as the spread widens, and frequency remains the wildcard.

The auto insurer will remain on the stock exchange if it complies with a request for outstanding submissions.

The carrier’s announcement that it was cancelling coverage to Uber has not affected the outlook.