Thank you for standing by, and welcome to the Allstate's Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mr. Mark Nogal, Head of Investor Relations. Please go ahead, sir.

Thank you, Jonathan. Good morning. Welcome to Allstate's second quarter 2021 earnings conference call. After prepared remarks, we'll have a question-and-answer session. Yesterday, following the close of the market, we issued our news release and investor supplement and posted related materials on our website at allstateinvestors.com. Our management team is here to provide perspective on these results. As noted on the first slide of the presentation, our discussion will contain non-GAAP measures for which there are reconciliations in the news release and investor supplement and forward-looking statements about Allstate's operations. Allstate's results may differ materially from these statements. So please refer to our 10-K for 2020 and other public documents for information on potential risks. And now I'll turn it over to Tom.

Good morning and thank you for joining us today. Let's start on Slide 2. Today, we're going to link operating results to strategy in order to show how we expect to continue to generate shareholder value. So Allstate’s strategy has two components; increased personal property-liability market share and expand protection solutions, which are shown in the two ovals on the left. The transformative growth plan to increase market share and personal property-liability has four components. This strategy would drive market valuation by executing, innovating, and focusing on long-term value creation. So in the first half of the year, we executed well for customers, we executed well financially and for shareholders as you can see on the right hand panel. Property-liability market share increased by approximately one percentage point through the acquisition of National General. Allstate Protection Plans continued to grow rapidly by broadening the product offering to include appliances and furniture and expanding availability through Home Depot stores. Strong execution generated excellent financial results with revenues increasing 23.8% compared to the prior year, adjusted net income of $3 billion, and a return on equity of 23.8% for the last 12 months. Shareholders benefited from a 50% increase in the quarterly common dividend and a reduction in outstanding shares by 2.4% just this year, under the current $3 billion share repurchase program. Yesterday, the Board approved a new $5 billion common share repurchase program, which represents approximately 13% of current market capitalization, and we expect to complete that by the end of March of 2023. Let's continue on Slide 3. In addition to operating execution, we're innovating to create long-term value. The transformative growth plan to create a digital insurance company is making good progress. Today, we're going to spend time talking about the distribution component of that plan. Allstate is…

Thanks Tom. Turning to Slide 7, let's dive deeper into near-term results on our multifaceted approach to grow property-liability market share. As you can see in the chart on the left side of the slide, property-liability policies in force grew by 12.1% compared to the prior year quarter, primarily driven by National General and growth in Allstate brand new business. National General, which includes Encompass, contributed growth of 4 million policies, and Allstate brand property-liability policies increased in the quarter driven by growth in homeowners and other personal lines. Allstate brand auto policies in force declined slightly compared to the prior year quarter, but increased sequentially for the second consecutive quarter, including growth of 111,000 policies compared to prior year and as you can see by the table on the lower left. The chart on the right shows a breakdown of personal auto new issued applications compared to prior year. We continue to make progress in building higher growth business models, as we look to achieve leading positions in all three primary distribution channels. The middle section of the chart on the right shows Allstate brand impacts by channel, which in total generated a 6.7% increase in new business growth compared to the prior year. Modest increases from existing agents excluding new appointments, and a 31% increase in the direct channel more than offset the volume that would normally have been generated by newly appointed agents as we pilot new agent models with higher growth and lower costs. The addition of National General also added 481,000 new auto applications in the quarter. Let's turn to Slide 8 to review property-liability margin results in the second quarter. The recorded combined ratio of 95.7 increased 5.9 points compared to the prior year quarter. This was primarily driven by increased losses relative to…

Let's turn to Slide 14. Let's finish where we started with a more macro and longer term view of Allstate's execution, innovation and long-term value creation as this is a whole report card as his is what you get by investing in Allstate. Empowering customers with protection is a core part of our purpose. We provide a broad set of protection solutions with over 180 million protection policies in force. You see our name while you're watching TV, you're in Walmart, you're in Target, You're in Casco, you're in Home Depot, Allstate is ubiquitous out there protecting customers. We constantly achieve industry leading margins on auto and home insurance, and have attractive risk adjusted investment returns. As a result, the adjusted net income return on equities averaged 15.6% from 2016 to 2020, ranking number two in our peer group. This has led to a 14.9% annualized total shareholder return over the last five years. We have a history of innovation. Transformative growth is a multiyear personal property-liability strategy to build a digital platform that offers low cost affordable, simple and connected protection solutions. We're simultaneously innovating protection by expanding through telematics, product warranties and identity protection. In telematics we've taken a broad and aggressive approach, the insurance offerings and the creation of Arity leading telematics business. Allstate is also innovating new corporate citizenship, focusing on climate change, privacy and equity. For example, we used an underwriting syndicate for $1.2 billion bond offering last year that was exclusively minority women and veteran owned banking enterprises. Long-term value is also being created through proactive capital management, and strong governance. Over the past five and 10 years we've repurchased 25% and 50% respectively of outstanding shares. Among the S&P 500, Allstate is in the top 15% of cash provided to shareholders. At the same time, we've successfully invested over $6 billion in acquisitions, including Allstate protection plans, Allstate identity protection and National General. And of course, strong governance is key to delivering those results. Allstate has an experienced and first management team and Board with relevant expertise. This is acknowledged by the leading proxy advisory firm that has awarded Allstate the top score for governance. Execution, innovation and long-term value creation will continue to drive increased shareholder value. With that context, let's open the line for your questions.

Certainly. [Operator Instructions] Our first question comes from the line of Greg Peters from Raymond James, your question please.

Good morning. So I'd like to go back to Slide 5 Tom, and where you lay out the transformative growth strategy, and in the phase two area, you report on substantial progress being made in terms of improved competitive price position in auto insurance. When I went to your supplement, I observed that the average gross premium in the auto brand continued to be lower relative to prior quarters. And I'm just curious how you think about pricing today given the increase in frequency and certainly the increase in severity in the context of your strategy to have an improved competitive price position.

Okay, let me start and then I'll get Glenn to jump in. First, in terms of transformative growth, we made a conscious strategic decision to improve the competitive position of auto insurance. When we looked at our cost structure and we looked at where other people were, we decided we needed to be more competitive on pricing. And so, we've been working on that. We've reduced our costs. We've reduced price. We know we're more competitive in the market. And actually you can't really look at the average prices Greg because everybody starts in a different place. So, if you're at 100 and I'm at 95 and you go down 2%, it doesn't make you - really it makes you more competitive [ph], but not competitive, so we look at close rates and we know - we looked at the - when people come to us, they quote what percentage do we close, and when the close rate goes up, you assume you're price competitive and you have a better value proposition. And in fact, that's been true this year, and it's one of the reasons why our new business is up. Now we do that, of course, with great surgical precision. So let me maybe provide an overview of auto insurance profitability because it was the focus of so many of the reports issued last night, and Glenn can jump into what he's got going forward. And I'll start with the analytical structure that I use to evaluate our performance in ways that hopefully will be helpful from an investment perspective. The headline would be to evaluate starting with the current absolute number, don't use one analytical method to assess the future and build on your margin for error. So, the current combined ratio for auto insurance this quarter…

Great. Thanks Tom. And Greg, if I go to the first part of your question on price position, the best measure of price competitiveness are close rates, and our closed rates are up. So we've seen a good result on the fact that for a few years, as Mario covered earlier, we've taken expenses out of the system, we've taken those expenses, and essentially allowed customers to get better value from us. And that's improving our close rates, which has helped. The second part, when you talked about going forward with frequency and severity, as Tom said, we have a pretty good forecast on frequency, and it's continued to be lower when you go on a two-year basis. The one-year comparisons right now are interesting on just about everything, but on a two-year basis to pre-pandemic, they continue to be meaningfully lower. Some of that will be just the new different world that we're in with fewer people working in office buildings and travelling in rush hour. Some of that will revert back over time, but we've had really good forecasts on that. The frequency has been higher. Sorry, the severity has been higher with inflationary factors. And so, we're looking at that and where we have to take pricing we will. And I guess, when you put them together the key is in how we've been forecasting, and when we look at when the line will cross. And what I mean by that is, we knew that look, severity compounds over time. So once you're a couple years in which we are now when you're comparing to 2019, you've got a couple of years of severity increases. At some point, it's going to be greater than the benefit that is persisting on frequency and you cross that line. And so, we're pretty good at forecasting about the time we're crossing that line. We moved prices slightly down. In some places, we're still good with those and we still have opportunity to even be more competitive. In other places, we're going to have to take them up. But we don't have wild swings happening in terms of our pricing. We've been pretty careful and cautious to do things that we thought were sustainable, and we're going to continue to do things that we think are sustainable. So as we take expenses out, continuing to do for the remainder of the year, the loss cost management that the claims team is doing and our pricing actions, we think there's more ground we can make up from a competitive position standpoint.

That was a very thorough answer. And I was going to ask a question on expenses. But I got to just follow up on your point on severity, and crossing the line. As you know, there's so much oxygen going on around inflationary pressures in the marketplace. And some of its viewed maybe perhaps being transitory, some of it being structural and longer term in nature. And I guess what I'm looking for from you guys is what's your view on the severity trends and can you give us some perspective on that crossing the line analogy that you used Glenn?

Well Greg, we don't do forecasts of combined ratio, or the components of the combined ratio. But I think when you look at - it's interesting though, when you look at the supplement, you'll see the paid on property damages is down, that's not related to the way we're booking, they just happen to be paid and there's some timing. So when you look at severity has to be clear difference between what you pay, and what you think you're going to pay eventually. And so we think severity - we know severity is up this year, we booked it up both first quarter and second quarter, even a little more. But so Glenn's got factored into this pricing. Glenn, anything you want to say about the client, maybe talk a little bit about severity control.

Yeah. And just to the point about what's transitory and what's in there. I think if you look at both frequency and severity in that way, like they're components of frequency, like we get really detailed into looking at the miles driven, it isn't just what was the total miles driven out there. It's, by state, it's urban versus rural, it's commuting time versus not, it's weekend versus week day and night day. So when we look at all of this, we have a view on what we believe is transitory and what is more sustainable on frequency as well as on severity. But the controls that we have, from a claims standpoint, we have a really strong claims team and they use first of all proprietary models that we have to escalate claims that either need to be expedited, moved faster or need to be prepared for defense in terms of injury claims. Tell us the likelihood of litigation, the likelihood of representation, things like that, we leverage our scale really well and that we have long-term pricing deals on a lot of the parts and labor that are out there for whether it's auto or home, so some of that acts as a hedge towards inflation. And it's not perfect, because we're in the same inflationary environment that others are in. But we do with our buying power have had good long-term deals that we've negotiated that help to hedge that to some degree and then really strong quality process that we manage across the system. So we feel good about our ability to manage within the environment, but also we have to price for it as it moves. And I guess I'll close by saying, if anything, our history is been proven, I would say, we do a really good job managing to our returns. And Mario and Tom talked about those in the opening quite a bit. We will manage to produce the right returns and when we need to take price to do that we do it.

Makes sense. Thank you for the answers.

Thank you. Our next question comes from line Paul Newsome from Piper Sandler, your question, please.

Good morning. A little bit more of a key off of those last questions. But one of the questions I'm getting a lot is whether or not there'll be sort of regulatory issues with auto in particular if we need to get more rate and I'd love to hear your thoughts on how that gets managed at Allstate.

I'll maybe start with a little macro and then Glenn can talk about anything we're doing specifically. Paul, I think the first place I would start is the regulatory reaction tends to start with what consumers think. And consumers are in a pretty good place. Our customers are in pretty good place getting a billion dollars back last year. There's plenty - if you look at savings rates and cash and bank accounts and all kinds of stuff, consumers are not - have some pricing ability - there not a lot of pricing pressure coming from consumers each day, so again the count of percentage increases that we need or not so large, you're not talking about double digit price increases that cause everybody to call the insurance regulator and say I don't like this world. So we don't see a lot of consumer pushback. When you look at the regulators we have a good relationship with our regulators. I mean, we were 10 days in last year, I mean, Glenn, I think it was like 10 days into March, we were like we got to do something about this. So we went out proactively to regulators and said, we don't have a requirement to do this, we have no contractual requirement to do it. But we know you'll want us to do it. So we're going to do it in advance upfront and we led the industry in doing that. So we feel like we have good relationships with them, we've been balanced as to how we approach it. And we've been able to earn the economic rents in the marketplace and compete successfully. And Glenn anything, you want to talk about in terms of specifics.

First, I think is a really good point with some of the credibility we earned last year, because it's not only the shift the return of the money, but the fact that we went out there and proactively had the idea to say, we're just going to waive the requirement that you have an endorsement to do deliveries, let's say with your car and turn your car into an economic vehicle for you, for people that were out of work. They appreciate the fact that we were thinking about the way people were having to live their lives and not having to go buy an endorsement to do it. And we just gave it away for free and filed that across 50 states and in a matter of days, and special payment plans, allowing people more time to pay. So I think we did build a lot of credibility with that. But I think the core of this is the regulators have actuaries. And we have actuaries, and they are math based. So this is - sometimes you get into some emotion with it, but it's really a fact based and math based situation. So when severities go up or loss ratios move their actuaries with our actuaries and we have great relationships working to that one.

Yeah, when rental cars go from 50 bucks a day to $100 a day or used car prices go up 40%, regulators know you got to make - you got to collect more money to take care of that.

Makes sense and I'd like to ask homeowners question. I tend to think that people underestimate the durability and impact of the home business. Can you just talk a little bit about what's going on there from a pricing and competitive perspective? And whether or not the outlook is more favorable overtime? But it does seem to be - if anything, it seems like you're selling more of it and seems like it's a lead product for you at the moment?

Well, Paul, thank you for recognizing how successful we've been at home. Like there are days, when I feel like people think the only thing we sell is auto insurance. And like we make a lot of money in homeowners insurance, we're really good at it. It does require lower margins than auto insurance, because you got to put up a lot more capital because of the volatility. And you don't get a lot of investment income. So we've been very good at it. Glenn, do you want to talk about how we're doing this?

Yeah, boy, do I. Yeah, I appreciate that Paul. We feel really good about where we are in homeowners. So I'll give you a quick number on the last five years, 89 combined ratio, that's recorded combined ratio not underlying, and we've made just over $4 billion in the past five years of underwriting profit. So we're good at this, I don't mind being bold enough to say that we - I think we have a sustained and systemic advantage in homeowners that we've proven over a long period of time. And it goes to the claims capabilities, the cap management capabilities, our reinsurance system that we have, our risk selection, our product capability and pricing. So it's a pretty deep skill that's been honed over a long period of time that we're able to leverage. And so when you look at there's no question that inflation is hitting the homeowner side hard and you got weather events. And you look at what it's doing to the industry more broadly than us. And there's going to be folks taking a lot of rate out there. And I think you've heard that from them. And our product is such that like, year-over-year, we're at 6% up on average premium, even though we took only three and a half points a rate because built into it, there's some inflationary factor. So we're really well positioned to continue to make money at it, protect a lot of people. And last point is it goes to what Tom talked about earlier about transformative growth. You look at the independent agent system. We bought National General primarily to really have a ticket into that system, where they have great systems, a lot of appointments, great relationships and they're good at some products. Well, we're really good at home. You get that home product into the IA channel. And I think it's going to sell well, we're going protect a lot of people we're going to help IAs grow.

Thank you, I appreciate it.

Thank you. Our next question comes from wine of David Motemaden from Evercore ISI, your question, please.

Hi, good morning. I had a question just on frequency. And I guess it's a question maybe you can clarify how that trended throughout the quarter by month? And maybe just talk about what you're seeing today. And should we be thinking about frequency being more flat with 2019, combined with 14% to 15% severity increase versus '19 that you guys called out in the 10-Q?

David, I'll get Glenn to answer the question on frequency. I'm not sure where that 14% to 15% came from, but and how you've factored. What period of time you're focused, is that two years and then one year? Because you can't take a two year trend and extrapolate it onto annual trends is, maybe that's what I heard. But Glenn do you want to talk just about frequency?

Sure. Yeah. No, I would not - the short answer would be I would not say you should just expect a zero frequency trend relative to 2019. Well, we don't publish any forecasting on frequency. I think, broadly people in the industry have talked about the fact that safer cars have tended to have a little bit of a tailwind for frequency, even take away the pandemic for a moment that year-over-year we've had a long-term steady decline in frequency. And so you've got a couple of years of data as you compare to 2019. On top of that, we see and I alluded to this a little bit before, we see a really material change in the way people are driving. So even when you see the aggregate number of miles driven coming back still lower, but closer to 2019 levels. Who is driving, when they're driving and how they're driving is changing materially? So you see about a four or five point difference between the net change of urban driving being down more than rural driving. So you look at an Allstate book of business where we sell predominantly through exclusive agents or solicit agents or in more populated markets that tends to favor the way the frequency comes through. You look at the type of driving that's done, I mentioned before commuting is down significantly more than non-commuting. So quick stat for us, we look at a lot of these details. Weekend driving is actually higher right now than 2019 was. People just want to get out. Weekday driving is materially lower and particularly in rush hour. So when you see less congested roads in the time period, when the predominance of accidents happen in those morning and afternoon commutes that is helpful to particularly in our book of business, the way frequency comes through. So there are elements that will come back, it will come back differently and it is the only thing I'm confident in saying is that the world will look exactly the same after the pandemic than before. And that will mean that people drive and move differently. We see some non-transitory or temporary impacts to frequency.

Got it, okay, thanks and Tom, yes, yeah, I was referring to just Page 63 of the 10-Q, which is, yeah, that 14% to 15% is over two years. So you're right. It's about 7% on average per year. I guess, just a follow up just on the rate actions that you're thinking about taking? I just saw, I think it was like a 5% rate increase that you filed in Georgia recently. Maybe could you just talk about how widespread the rate increases are that you want to put in and maybe just talk a bit more about how you think that might impact the growth trajectory going forward?

Well, we don't - we've got - we got plans for the rest of the year is where we think we need to increase price. But we don't give those out for competitive reasons. And we also need to bring traders to agree. So I would just say that we think we will. You should rely on the fact David that we know how to make money and we're focused on making money. As to the competitive business I think it depends what other people do. So you heard yesterday if you listen to the Progressive call they're all in on raising prices, cutting advertising, changing underwriting stuff. So we think that gives us room to adapt and continue to grow, and make money and make sure that we can recover costs as they go up. Other competitors are in different places. But we feel good about where we're at, like trades for growth. Like if you start off and said, would you want to - have a pandemic and a huge drop in frequency for a year to do transformative growth? You probably would say, I don't know, like it's a lot of volatility to manage. On the other hand, I think in our particular case, it's worked well for us.

Got it. Thank you. Is it your sense that the rest of the industry is going to start raising prices?

If you look at what they've done then we can really focus on and there have been more rate increases this year than I think probably people would have predicted if you asked them in the fourth quarter of last year. And that would include us, like if you just said, what do we think everybody was going to do this year? We wouldn't have thought they had to go up as much as they did. But we also didn't think severity was going to be as high as it is. So we're increasing ours, and they're increasing theirs. But we think our relative advantage, given our sophistication in pricing, given our reduction in expenses, given what we're doing on the long-term basis to get expenses down even farther, puts us in good place. So we don't see anything happening that tells us we can't still be on the path to grow market share. The specific roads we go down might be a little different. But we're still feeling like that goal is still there or the objective is still achievable.

Okay, thank you.

Thank you. Our next question comes from line of Meyer Shields from KBW, your question, please.

Thanks. I wanted to dig in a little bit to Allstate direct, I just want understand the thought on the pricing strategy. And what I mean by that is I think we've got demographic trends favoring direct distribution, but also to massive competitors and I wanted to know whether the competitive posture is that you have to be in line with where Progressive and GEICO are? Or can you benefit enough from these demographic trends to achieve your growth goals.

I'm trying to sort through Meyer - the first direct should be priced for what you get like you should get what you pay for. So when you buy Allstate direct, it's I think on average, about 7% lower than if you buy from an agent because it doesn't come with health, and so it's you get what you pay for. And there are people - there are some demographic shifts there. But some of it's not - there are some young people who want help and some older people who don't want help. And so where their focus is not as much on demographics of those channels, but it is the customer value. As it relates to our competitive position in each channel, we believe you should have a competitive price position in each channel, like-for-like, so if you're buying from GEICO or Progressive and you're buying direct and you're buying from Allstate, you're buying direct, you should - it should be the same kind of value. Now, it gets a little dicier when you figure out prices because what the limits are and all kinds of - it's complicated fast. But the conceptual approach would be, be competitive in channel based on the value you deliver to shareholders, or the customers. Glenn how would you - is there other things you'd add to that?

Yeah. Going to the point about what do we get out just the demographic shift versus being more competitive? Clearly, it's a growing channel. So if you are - if you're sitting in the boat and the current is taking you in a certain direction, so that there's something to, you really should be there, and that's why we're there. It's why transformative growth, why we wanted to be in all channels and where customers want to buy. So I think there's some benefit to that. But the bigger benefit is two other things. One would be being competitively priced, why we're going after expenses, why we did the pricing differential that Tom talked about. And then the third one, which frankly, maybe even the most important is just your execution in it and it's the fact that it we have used the capabilities of insurance, but we're still newer at being a large national player with the brand we've got of Allstate doing this is building the capabilities whether it's web, our sales processes, marketing sophistication, integration of marketing into it. So that we are winning our fair share there because you got to get the price to be competitive, but you also have to be great at the process itself.

So as we go back to that slide where we showed the three different channels, direct is up, as we said it's not 29% of sales, we expected to continue to go up as Glenn said, as we get better. There are some shifts to that channel if you just look globally, some of that's because more people feel comfortable buying over the web and not going through some of that. Some of it is just because direct is a whole bunch of advertising and it drives people to it. But we're, as Glenn pointed out in that boat and increasing our capabilities. But that doesn't mean we're waving the flag on people-to-people exchange. And so the key part of transformer growth is, there are people who want help. We just need to give it them at a lower cost. And that's what we're working on. So people were more than happy to pay a lot of money - not lot, but to be paid for help to buy the insurance, they just don't want to pay you 10% for ongoing service when they can do self-service, it is not much to be done or you can do at a lower cost centrally. So that's our shift and transformer. We're not waving the flag on person-to-person sales. In fact, we're leaning in and saying we have a great position here, we have a great brand, people know us, we just need to do it more effectively and create higher growth models. So that will take us some time to transition. As we talked about, like I don't expect the Allstate agent business to jump up the way you'll see the direct business increase over the next 12 months. But I do think it's got great long-term potential. And we're investing heavily in making sure those agents can deliver what people want if they want help buying products.

Okay, that was quite helpful. Thank you. A quick follow up if I can, has the - I guess recent severity issues in both auto and home, have those changed the timeline for rolling out the standard products on National General's platform?

Short answer would be no, we think we can be really competitive in that market. And we're excited to get into the independent agent channel and do it as quickly as we can. We'll have some of our middle market products this year on the NatGen platform branded as National General and Allstate Company. So we'll get the benefit of the endorsed brand. And then over the next two years, we'll be rolling that out as quickly as we can.

Perfect. Thank you so much.

Thank you. Our next question comes from the line of Michael Phillips from Morgan Stanley, your question please.

Hey, thanks. Good morning. In your introductory comments on severity, you talked about some other ways to counter it besides the target price increases, could you expand upon maybe how those will help severity issues, I didn't really get all the lists you were talking about maybe go through those little more detail and talk about how they can help you counter severity besides price?

Sure. Thanks, Michael. It really is about claims capabilities and paying what you owe, in being fair to folks. But making sure you don't pay more than you owe as things move. So we have inflationary factors, for example, say on materials for homeowners, having purchasing power, and having really good deals in place over the long-term on flooring, on roofing, and other products used in home repair, helps hedge that inflation. And with our size, with our buying power and with the capabilities of our claims team, we've been able to do that helps hedge it. Again, I'm not suggesting it eliminates the problem of inflation. But it does help mitigate it so that not all of that cost is passed through to your customers. Because in our view the job to our customers, obviously we got to put them back to where they were. We've got to charge people an appropriate price and give them the best value possible. And part of that is mitigating the cost of claims. So that was in the purchasing power. The proprietary models I mentioned before, is we've just invested a lot in our analytics and data capabilities over the years in order to flag claims that were at risk for accelerating costs so that we could get it into the right experts hands at the right time and it allows us to do a better quality job on those and also manage the costs.

Okay, thank you for that. One other quick one if I could then, you had a lot of talk on the direct to consumer channel for auto and clearly that's a growth area. What's your view on that channel longer term for the homeowners market?

We think it's good. I mean, I think people do want sometimes a little more help on their home because they care more about their home. But we think that those people who are comfortable using advanced technology, bots, chat on assets you can get online should be able to buy more homes direct.

Okay, cool. Thank you.

Thank you for taking the time. Maybe just close on a few things first on investment results. I totally understand the view that one would not fully count the huge increase in performance spacing. But when I read some of the reports, I'm like I think it's fair to say it was an outsize quarter. But that doesn't mean that our long-term results should be ignored. We're good in investments we had good results. Our acquisitions are performing well, whether that be Allstate protection plans, which we didn't really get questions on today. I just want to remind you we bought that company four years ago at $1.4 billion. It's now over a billion dollars in revenue. It's growing at 27% a year. It made $155 million, which means we paid nine times earnings for business that is growing 27%. So we think it's worth a lot more than that. National General, we also think will be highly successful. But we're off to a really good start there. You can see that in the current numbers. And it's not just the 4 million policies we added. By the way, when you look at the net cash, we had the layout after a stretch to our capital. I do not believe we could have acquired 1% market share by putting a couple of billion dollars into advertising. So we think it was also just an economic growth opportunity straight up, forget the strategic potential for the growth. And then share repurchases we continue to really do well. This is the biggest share repurchase program we've ever announced both in dollars and percentage of market capitalization that's build up. So, thank you for participating today. We had great results this quarter. We look forward to talking to you next quarter.

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.