The Progressive Corporation 2010 Annual Investor Relations Meeting Transcript

The agent retailing, actual John Barbagallo is going to talk us through some of that, but really this is the issue of the environment changed somewhat, we changed with it. We think we became a better retailer. And frankly, our brand is not hurting us in anyway with our agents thereby it’s helping with our agents. So, now agents – our independent agents actually have a nationally recognized brand to sell in their agency. Certainly, while that’s a hard one put it absolute value the contribution to it is meaningful.

Our reach is expanding. I hope that at least some of you remember, I think it was two years ago that we used the format of this meeting to talk about sort of profiles of customers. And they are not quite the profiles that we use internally in Progressive, but they are certainly good enough for this kind of a descriptive. We have a little bit more complexity to the customer tiers that we use. But we defined four tiers

Sam may be is a little bit more of the classical nonstandard we try to move away from a lot of those terms. And if I remember correctly some one in the audience felt that Sam was a very strong profile to at least have brother-in-law or some other family member, so hopefully that recognition is still there.

The Diane’s of the world, more upwardly mobile, a little bit more consistency in their insurance behaviors. These profiles, by the way, are also in your appendix. The Wright family certainly moving into a home, not necessarily a bundled family, a place that we are very strong.

But the real interesting thing here is the Robinson family and that’s a much more complex need family, not a target that we for the most in the career – of the history of Progressive have really said our products have targeted that group. We’ve done a lot of work. You’ve heard about our entry into home, Home Advantage, which is depicted a little bit by sales on the – of the side of the graph there. It’s given us an opportunity to really speak to that audience. And we are starting to grow the audience. Clearly, the numbers of 200% are a little silly. Because that has to mean we had very little to start with. That’s not the point here. The point is we now have a product that we can start bring into that space. And even if that doesn’t attract a lot of switches to people at that stage in their life, it gives us an opportunity to make sure that we create our own as they start moving through and their needs develop over time.