Personal Lines net premiums written increased 20% year-over-year, with policies in force up 18%. This growth is primarily in personal auto products and reflects new application growth attributable to increased advertising spend.

Commercial Lines net premiums written increased 5% year-over-year, driven by the renewal of certain transportation network company (TNC) business policies with higher rates and projected mileage.

During Q1 2025, the company increased personal auto rates less than 1% and personal property rates about 2%. In core commercial auto, rates increased about 1%. The company expects near double-digit rate increases in these products through the remainder of 2025.

The company is focusing on improving profitability and reducing exposure in more volatile weather-related markets in its personal property business, including slowing growth and non-renewing policies.

The company closely manages expenses, monitoring both acquisition and non-acquisition expenses, which is viewed as an important measure of operational efficiency.

The company continues to invest in Snapshot, its usage-based insurance offering, to improve the accuracy of personal auto rating. The direct adoption rate increased 9% compared to the same period last year.

The U.S. government announced additional tariffs on imported goods, which could result in higher loss costs and reduced profitability. The company is modeling the potential impact but the dynamic international trade environment prevents accurate predictions.

The U.S. Treasury announced it had reached its authorized borrowing limit and defaults under government obligations could occur as soon as this summer. Any such default would likely have a material adverse impact on our cash flows and the value of our portfolio and our capital position.

The company is named as a defendant in class action lawsuits alleging improper valuation of total loss vehicle physical damage claims. An unfavorable result in a significant number of these lawsuits could have a material adverse effect.

Advertising spend increased 86% year-over-year to $1.3 billion, reflecting a strategy to capture consumer shopping. This increased advertising is intended to drive new business applications.

Trailing 12-month total personal auto policy life expectancy was down 5% year over year, which the company believes is due to increased shopping and the competitiveness in the marketplace.

The company is working to moderate rate increases to improve competitiveness in the marketplace. The policy life expectancy has experienced sequential month-over-month improvement since the end of the third quarter 2024.

The company continued to focus on improving profitability and reducing exposure in more volatile weather-related markets in its personal property business, including slowing growth and non-renewing policies.

During the first quarter 2025, our non-acquisition expense ratio (NAER) decreased 0.3 points. We remain committed to efficiently managing operational non-acquisition expenses.

We expanded our cost sharing through mandatory wind and hail deductibles and roof depreciation schedules in markets where permitted.

The company continues to invest in its mobile application, with the majority of new enrollments choosing mobile devices for Snapshot monitoring.

The increase in the direct adoption rate primarily reflected enhancements in the direct quoting process, in addition to the continued rollout of our newest Snapshot model.

We use multiple data sources and modeling tools to estimate the frequency, severity, and correlation of identified exposures, including catastrophic and other insured losses, natural disasters, and other significant business interruptions, to estimate our potential capital needs.

During the first three months of 2025, the company returned capital to shareholders primarily through common share dividends and common share repurchases. In March 2025, the Board declared a $0.10 per common share dividend.

During the first three months of 2025, the company repurchased 0.2 million common shares, at a total cost of $54 million, to satisfy tax withholding obligations in connection with the vesting of equity awards.

At March 31, 2025, the company continued to maintain a relatively conservative investment portfolio with a greater allocation to cash and treasuries. We believe that this portfolio allocation positions us well to benefit from the continuing dynamic market environment.

The 10-Q filing does not explicitly mention any new or ongoing ESG initiatives. Further research into the company's website and other publications would be needed to assess their ESG performance.

We currently believe we are adequately priced in our personal auto products in most states and will continue to monitor the impact from tariffs and potential changes in the regulatory environment.

We closely monitor changes in frequency, but the degree or direction of near-term frequency change is not something that we are able to predict with any certainty.

We look to economic data as it relates to geographic location as an indication of price-to-call or maturity predictors.