- Commercial Lines Net Premiums Written Decline: Commercial Lines net premiums written decreased 6% in Q2 2025 despite a 6% increase in policies in force. This divergence resulted from shifts in policy terms for transportation network company (TNC) business and a mix shift toward lower average premium business market targets, impacting top-line revenue capture.
- Personal Auto Retention Decline: Trailing 3-month personal auto policy life expectancy decreased 7% year-over-year in Q2 2025, and trailing 12-month policy life expectancy declined 5%. This suggests heightened competition and increased customer shopping, challenging the long-term value of newly acquired policies.
- Personal Property New Business Headwinds: New business applications in personal property decreased 11% in Q2 2025, and average written premium per policy fell 6%. This reflects the impact of strategic initiatives to reduce exposure in volatile weather-related markets and a mix shift to lower-premium renters policies.
- Increased Advertising Expenses: Companywide advertising spend increased 35% in Q2 2025 and 57% year-to-date, contributing to a 0.4 percentage point increase in the underwriting expense ratio for the quarter. While driving growth, this aggressive spending reflects competitive pressures on customer acquisition costs.