Root Inc (ROOT) 2025 Q1 法說會逐字稿

Greetings, and welcome to the Root, Inc. first quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matt LaMalva. Thank you. You may begin.

您好，歡迎參加 Root, Inc. 2025 年第一季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹您的主持人 Matt LaMalva。謝謝。你可以開始了。

Thank you for joining us. Root is hosting this call to discuss its first quarter 2025 earnings results. Participating on today's call are Alex Timm, Co-Founder and Chief Executive Officer; and Megan Binkley, Chief Financial Officer. Earlier today, Root issued a shareholder letter announcing its financial results.

感謝您加入我們。Root 主持這次電話會議是為了討論其 2025 年第一季的收益結果。參加今天電話會議的有共同創辦人兼執行長 Alex Timm；以及財務長 Megan Binkley。今天早些時候，Root 發布了一封股東信，宣布了其財務表現。

While this call will reflect items discussed within that document, for more complete information about our financial performance, we also encourage you to read our first quarter 2025 Form 10-Q, which was filed with the Securities and Exchange Commission earlier today. Before we begin, I want to remind you that matters discussed on today's call will include forward-looking statements related to our operating performance, financial goals and business outlook, which are based on management's current beliefs and assumptions.

雖然本次電話會議將反映該文件中討論的內容，但為了更完整地了解我們的財務業績，我們也鼓勵您閱讀我們今天早些時候向美國證券交易委員會提交的 2025 年第一季 10-Q 表格。在我們開始之前，我想提醒您，今天電話會議上討論的事項將包括與我們的經營業績、財務目標和業務前景相關的前瞻性陳述，這些陳述基於管理層當前的信念和假設。

Please note that these forward-looking statements reflect our opinions as of the date of this call, and we are not obligated to revise this information as a result of new developments that may occur. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause our actual results to differ materially from those expected and described today.

請注意，這些前瞻性陳述反映了我們在本次電話會議之日的觀點，我們沒有義務根據可能發生的新發展來修改這些資訊。前瞻性陳述受各種風險、不確定性和其他因素的影響，這些因素可能導致我們的實際結果與今天預期和描述的結果有重大差異。

For a more detailed description of our risk factors, please review our most recent 10-K, 10-Q and shareholder letter. A replay of this conference call will be available on our website under the Investor Relations section. I would also like to remind you that during the call, we will discuss some non-GAAP measures while talking about Root's performance. You can find reconciliations of these historical measures to the nearest comparable GAAP measures in our financial disclosures, all of which are posted on our website at ir.joinroot.com.

有關我們的風險因素的更詳細描述，請查看我們最新的 10-K、10-Q 和股東信函。本次電話會議的重播將在我們網站的「投資者關係」部分提供。我還想提醒您，在通話過程中，我們將在談論 Root 的表現時討論一些非 GAAP 指標。您可以在我們的財務揭露中找到這些歷史指標與最接近的可比較 GAAP 指標的對賬，所有這些對帳均發佈在我們的網站 ir.joinroot.com 上。

I will now turn the call over to Alex Timm, Root's Co-Founder and CEO.

現在我將把電話轉給 Root 的共同創辦人兼執行長 Alex Timm。

Thanks, Matt. Our momentum from 2024 continued into the new year as we delivered strong results across our operations, producing another profitable quarter. We entered 2025 from a position of strength, thanks to our superior technology, strong capitalization and scalable fixed expense base.

謝謝，馬特。我們 2024 年的動能延續到了新的一年，我們在各項營運中都取得了強勁的業績，又實現了一個季度的盈利。憑藉卓越的技術、雄厚的資本和可擴展的固定費用基礎，我們將以實力雄厚的地位邁入 2025 年。

We improved our gross premiums written by 24% from the first quarter of 2024 and generated net income of $18 million, operating income of $24 million and adjusted EBITDA of $32 million. Additional accomplishments for the quarter include growing policies in force, delivering strong loss ratios, continuing investments in our pricing and underwriting technology, and making progress to diversify our distribution.

與 2024 年第一季相比，我們的毛保費收入提高了 24%，淨收入為 1,800 萬美元，營業收入為 2,400 萬美元，調整後 EBITDA 為 3,200 萬美元。本季的其他成就包括增加有效保單、實現強勁的損失率、繼續投資於我們的定價和承保技術以及在多元化分銷方面取得進展。

Our strong performance in the first quarter was enabled by seasonal favorability, largely driven by tax refunds, elevated shopping behavior and lower miles driven. We tend to see this benefit in the first quarter of every year and do not expect this tailwind to persist into the rest of 2025.

我們第一季的強勁業績得益於季節性因素，這主要得益於退稅、購物行為的增加和行駛里程的減少。我們往往會在每年第一季看到這種好處，並且預計這種順風不會持續到 2025 年剩餘時間。

Most importantly, we have achieved this growth while maintaining our underwriting discipline, which continues to be our North Star. We continue to be excited for the path ahead as we focus on lifetime unit economics, expand our partnerships channel and reinvest in our business to drive long-term returns.

最重要的是，我們在實現這一成長的同時，保持了承保紀律，這仍然是我們的北極星。我們繼續對未來的道路感到興奮，因為我們專注於終身單位經濟，擴大我們的合作夥伴管道並對我們的業務進行再投資以推動長期回報。

The progress achieved over the past few quarters was possible due to the foundation we fortified in recent years, and we believe this foundation will continue to drive momentum in our business for years to come.

過去幾季的進展得益於我們近年來鞏固的基礎，我們相信這項基礎將在未來幾年繼續推動我們的業務發展。

Within our direct channel, we have found success in data-rich, lower funnel channels, and we'll continue to scale these wins while leveraging our expertise to expand into mid- to upper funnel strategies. These R&D investments are at an early stage as we collect more data, and we only scale those channels that meet or exceed our unit economic targets.

在我們的直接管道中，我們在資料豐富的下層漏斗管道中取得了成功，我們將繼續擴大這些勝利，同時利用我們的專業知識擴展到中層到上層漏斗策略。由於我們收集了更多數據，這些研發投資尚處於早期階段，我們只擴展那些達到或超過我們單位經濟目標的管道。

Our direct channel is supported by our world-class mobile-first telematics product, creating delightful customer experiences at better prices. Through our partnership channel, building differentiated access to customers remains a core pillar in our long-term growth strategy. This channel has seen quarterly new writings more than double year-over-year as our pipeline continues to expand across the automotive, financial services and agent subchannels.

我們的直接管道由我們世界一流的行動優先遠端資訊處理產品支持，以更優惠的價格創造愉快的客戶體驗。透過我們的合作管道，建立差異化的客戶管道仍然是我們長期成長策略的核心支柱。隨著我們的管道在汽車、金融服務和代理子管道上的不斷擴展，該管道每季度的新文章數量比去年同期增長了一倍以上。

We have expanded our partner roster to include over 20 total partners, launching two new strategic partnerships, one with Hyundai Capital America or HCA and one with Experian, this quarter. In March, we announced our partnership with Hyundai Capital America to bring data-driven competitive rates and a more connected experience to HCA customers.

我們擴大了合作夥伴名單，總共包括 20 多個合作夥伴，並在本季度建立了兩個新的戰略合作夥伴關係，一個是與現代資本美國公司 (HCA) 建立的，另一個是與益博睿建立的。今年 3 月，我們宣布與現代資本美國公司合作，為 HCA 客戶帶來數據驅動的競爭性利率和更互聯的體驗。

This partnership aims to optimize the strength of both companies to address evolving industry needs and set new benchmarks for customer satisfaction. We are in the early stages of this exciting partnership that continues to expand our distribution and look forward to sharing updates as the partnership evolves. Our partnership with Experian offers Root Insurance through Experian's insurance marketplace, providing their members expanded access to affordable and personalized car insurance options.

此次合作旨在優化兩家公司的實力，以滿足不斷變化的行業需求並為客戶滿意度設定新的基準。我們正處於這一令人興奮的合作關係的早期階段，該合作關係將繼續擴大我們的分銷範圍，並期待在合作關係發展過程中分享最新進展。我們與 Experian 合作，透過 Experian 的保險市場提供 Root Insurance，為其會員提供更多經濟實惠且個人化的汽車保險選擇。

By leveraging our technology, this integration enhances and streamlines the insurance shopping experience, delivering data-driven competitive rates to Experian members. Our progress is driven by a proprietary tech stack that can seamlessly integrate into existing partner platforms, enabling access to potential customers at contextually relevant times.

透過利用我們的技術，這種整合增強並簡化了保險購物體驗，為 Experian 會員提供數據驅動的競爭價格。我們的進步是由專有技術堆疊推動的，該技術堆疊可以無縫整合到現有的合作夥伴平台中，從而能夠在相關的時間接觸潛在客戶。

We remain confident in our long-term growth avenues across both channels while maintaining a focus on national expansion. As of the end of the first quarter, we are happy to report that we are in 35 states and also filed our product with Michigan, which is currently pending regulatory approval. This builds on our list of states with outstanding filings, which also includes Washington, New Jersey and Massachusetts.

我們對兩個管道的長期成長前景充滿信心，同時繼續專注於全國擴張。截至第一季末，我們很高興地報告，我們的業務已涵蓋 35 個州，並且已向密西根州提交了我們的產品申請，目前正在等待監管部門的批准。這是基於我們未決申報州名單得出的，其中還包括華盛頓州、新澤西州和馬薩諸塞州。

We are excited to expand our geographic presence in our quest to become national. Above all, providing customers a delightful experience and a great price no matter what channel they come through remains our top priority. As we invest in our growth, we will maintain our laser-focused mindset on disciplined underwriting driven by our proprietary technology platform and data science algorithms.

我們很高興能夠擴大我們的地理影響力，以實現全國化。最重要的是，無論顧客透過何種管道，為他們提供愉快的體驗和優惠的價格仍然是我們的首要任務。在我們投資於成長的同時，我們將保持高度專注的思維方式，以我們的專有技術平台和數據科學演算法為驅動力，進行嚴格的承保。

While we cannot predict the future, we are able to react swiftly and appropriately through rate actions when it comes to changes in loss costs, including implications from imposed tariffs. As we demonstrated previously in the post-pandemic hyperinflationary environment, we leverage automation in our underwriting process, empowering us to quickly identify trends, seek regulatory approval and ultimately earn rate through our book.

雖然我們無法預測未來，但當損失成本發生變化（包括徵收關稅的影響）時，我們能夠透過利率行動迅速且適當地做出反應。正如我們之前在疫情後的惡性通貨膨脹環境中所展示的那樣，我們在承保流程中利用自動化，使我們能夠快速識別趨勢，尋求監管部門的批准，並最終透過我們的帳簿賺取利率。

Particularly in times of high macroeconomic uncertainty, we are able to leverage our frequent actuarial reviews to incorporate changing trends into our pricing algorithms and continually offer the best prices to our best drivers. At Root, it's all about the long term. That means we invest our capital to drive intrinsic value creation based on an economic framework over the life of the customer, not calendar period results.

特別是在宏觀經濟高度不確定的時期，我們能夠利用頻繁的精算審查將不斷變化的趨勢納入我們的定價演算法中，並不斷為最佳駕駛者提供最優惠的價格。在 Root，一切都是為了長遠利益。這意味著我們投資資本是為了根據客戶生命週期的經濟框架來推動內在價值創造，而不是日曆期間的結果。

We believe a disciplined adherence to this framework creates a tremendous opportunity for long-term investors. I will now hand the call over to Megan to discuss our first quarter operating results in more detail.

我們相信，嚴格遵守這個框架將為長期投資者創造巨大的機會。現在我將把電話交給梅根，更詳細地討論我們第一季的營運表現。

Thanks, Alex. Overall, it was an excellent start to 2025. We experienced another quarter of strong performance on unit economics, underwriting and expense management. For the first quarter, as Alex mentioned, we delivered net income of $18 million, a $25 million improvement year-over-year. We also generated operating income of $24 million and adjusted EBITDA of $32 million, improvements of $18 million and $17 million year-over-year, respectively.

謝謝，亞歷克斯。總體而言，這是 2025 年的一個好開始。我們在單位經濟、核保和費用管理方面又經歷了一個強勁的季度。正如亞歷克斯所提到的，第一季我們的淨收入為 1,800 萬美元，比去年同期增加了 2,500 萬美元。我們也實現了 2,400 萬美元的營業收入和 3,200 萬美元的調整後 EBITDA，年比分別成長 1,800 萬美元和 1,700 萬美元。

In the first quarter, we saw material increases in policies in force, gross written premium and gross earned premium when compared to the first quarter of 2024 and the fourth quarter of 2024. Our growth in the first quarter was driven by both our direct and partnership channels and enabled by the continued disciplined deployment of acquisition investment at our lifetime unit economic targets.

與 2024 年第一季和 2024 年第四季相比，第一季有效保單、毛承保保費和毛已賺保費均大幅增加。我們第一季的成長是由直接和合作管道推動的，並且得益於我們按照終身單位經濟目標持續嚴格部署收購投資。

As we've consistently noted, we do not defer the majority of our customer acquisition costs over the life of our customer, which leads to accelerated expense recognition relative to earned premium. We achieved this growth while delivering a first quarter gross accident period loss ratio of 58%, a strong result that is enabled by our continued investment in data science and technology.

正如我們一貫指出的那樣，我們不會將大部分客戶獲取成本推遲到客戶的整個生命週期中，這會導致相對於已賺取保費的費用確認加速。我們實現了這一成長，同時第一季總事故期損失率為 58%，這一強勁業績得益於我們對數據科學和技術的持續投資。

Note that we benefit from a favorable seasonality trend in the first quarter as there are fewer miles driven in the winter months and also higher purchasing power resulting from tax season refunds.

請注意，我們受益於第一季有利的季節性趨勢，因為冬季行駛的里程較少，而且稅收季節退稅帶來的購買力也更高。

We achieved a net combined ratio of 96% in the quarter, a 6 point improvement on a year-over-year basis, reinforcing the ongoing discipline in how we manage the business and deploy capital. We are well capitalized for the opportunities ahead of us. Our unencumbered capital was $347 million at the end of the period.

本季度，我們的淨綜合成本率達到 96%，比去年同期提高了 6 個百分點，這進一步強化了我們在業務管理和資本配置方面的持續紀律。我們已為未來的機會做好了充分的準備。期末我們的未支配資本為 3.47 億美元。

And given our strong underwriting performance, we are also in a position of excess capital across our insurance subsidiaries. This allows us to better optimize our operating structure and more flexibly deploy growth capital for high-return opportunities.

鑑於我們強勁的承保業績，我們的保險子公司也擁有過剩的資本。這使我們能夠更好地優化營運結構，更靈活地配置成長資本以獲得高回報機會。

Q1 was the first quarter to reflect our run rate interest expense savings from the recently amended debt facility with BlackRock. The current facility allows for performance-based step-downs in our interest expense tied to our debt-to-capital ratio, the first of which we were able to realize in the first quarter, which reduced our interest rate by 25 basis points.

第一季是第一個反映我們最近修改的貝萊德債務安排所帶來的營運利率利息支出節省的季度。目前的機制允許我們根據績效逐步降低與我們的債務資本比率掛鉤的利息支出，我們在第一季就實現了這一目標，這使我們的利率降低了 25 個基點。

This illustrates that as our business continues to perform, we will have opportunities to reduce our cost of capital. We remain focused on growing in a thoughtful and disciplined manner through expanding our footprint and distribution channels and investing in opportunities for the business that present high return potential over the long term.

這表明，隨著我們業務的持續表現，我們將有機會降低資本成本。我們將繼續專注於以深思熟慮和自律的方式發展，擴大我們的業務範圍和分銷管道，並投資具有長期高回報潛力的業務機會。

We believe continued investments in our people and technology infrastructure as well as targeted customer acquisition investment to enable profitable growth is the right decision to drive long-term success and shareholder value. Running the business in a lifetime unit economic framework may impact the degree of GAAP profitability in any given quarter, but we believe our approach will ultimately translate to strong calendar year results. We are excited for our future and appreciate your continued support.

我們相信，繼續投資於我們的人才和技術基礎設施以及有針對性的客戶獲取投資以實現盈利增長是推動長期成功和股東價值的正確決定。在終身單位經濟框架下經營業務可能會影響任何特定季度的 GAAP 獲利程度，但我們相信我們的方法最終將轉化為強勁的年度業績。我們對我們的未來充滿期待，並感謝您的持續支持。

With that, we look forward to your questions.

我們期待您的提問。

(Operator Instructions) Tommy McJoynt, KBW.

（操作員指示）Tommy McJoynt，KBW。

Hey, good evening, guys. Thanks for taking our question. The first one is looking at the new business mix. So the partnership mix had been rising pretty significantly on a sequential basis the last couple of quarters, but was up only 2 points sequentially in the first quarter here. Was that a function of unusually strong opportunity on the direct side in the first quarter? And then how do you think about that partnership mix perhaps over the rest of the year?

嘿，大家晚上好。感謝您回答我們的問題。第一個是考慮新的業務組合。因此，過去幾個季度，合作夥伴組合較上季大幅上升，但今年第一季僅較上季上升 2 個百分點。這是第一季直接方面異常強勁的機會的結果嗎？那麼，您如何看待今年剩餘時間的合作夥伴組合？

Thanks, Tommy. I'd say that that was really a function of -- we saw a very strong quarter in direct growth. It's always seasonally very strong. We do expect that to abate more going forward. And so I think you're going to see the percent from partnerships in terms of the number of new writings that we're generating each quarter increase through the remainder of the year.

謝謝，湯米。我想說，這確實是一個因素——我們看到本季的直接成長非常強勁。它的季節性表現總是非常強勁。我們確實預計這種情況未來會進一步減弱。因此，我認為，您會看到，就我們每季創作的新作品數量而言，合作夥伴關係所佔的百分比在今年剩餘時間內會增加。

Got it. Okay. And we did see the step-up in your growth spend through the sales and marketing line, as you had previously communicated. Can you talk about your expectations for the quarterly cadence of that growth spend for the rest of this year as well?

知道了。好的。正如您之前所說的，我們確實看到您在銷售和行銷方面支出的成長。您能否談談今年剩餘時間內季度成長支出節奏的預期？

I think, again, usually, Q1, we see really strong seasonality. We did see that again this quarter. That's driven by tax season. And we also saw some pull-up of demand, we believe, into the quarter. And so we've kept -- as we look forward, for example, this quarter-to-date, we've kept PIF roughly flat.

我認為，通常在第一季度，我們會看到非常強烈的季節性。本季我們確實再次看到了這種情況。這是由納稅季節引起的。我們相信，本季我們也看到了需求的回升。因此，我們一直保持 - 例如，展望本季度迄今為止，我們一直保持 PIF 基本持平。

Long term, I think usually, again, you're going to see Q1 be the best quarter. I think in terms of longer-term growth expectations throughout the year, we're continuing to work on state expansion. We're adding additional partnerships, both HCA and Experian that we've announced this quarter. And then on direct, we're continuing to experiment to mid-, upper funnel. So we think long term, there's a lot of growth.

從長遠來看，我認為通常情況下，你會看到第一季是最好的季度。我認為，就全年的長期成長預期而言，我們將繼續致力於國家擴張。我們正在增加其他合作夥伴關係，包括本季宣布的 HCA 和 Experian。然後，在直接方面，我們將繼續對中上層漏斗進行實驗。因此我們認為，從長遠來看，還會有很大的成長空間。

But on a quarter-by-quarter basis, we're going to continue to run our marketing machine that optimizes for, really, the net present value of our business. And that typically, on the direct channel, particularly occurs in Q1. And so I think that's going to be the highest quarter. But, Megan, would you say anything else?

但按季度計算，我們將繼續運行我們的行銷機器，以真正優化我們業務的淨現值。這通常在直接管道上尤其發生在第一季。所以我認為這將是最高的一個季度。但是，梅根，你還會說什麼嗎？

No, I think, Alex, you covered it. I mean, from a Q1 perspective, really proud of the growth that we saw in Q1. I mean, we really capitalized on the opportunities to increase our sales and marketing investment in the quarter. And as Alex mentioned, tax season, we saw, was a bit more amplified this quarter than what we've seen previously.

不，我想，亞歷克斯，你已經說完了。我的意思是，從第一季的角度來看，我們對第一季看到的成長感到非常自豪。我的意思是，我們確實利用了機會來增加本季的銷售和行銷投資。正如亞歷克斯所提到的，我們發現本季的報稅季比以前更加緊張。

And then just last question, I'll sneak in here. Looking at the geographical breakdown disclosure in your Q, looks like you saw some really strong growth in some select states like California and Florida. Can you talk about your state -- your expansion sort of strategy in the individual states in terms of how long it takes to deploy marketing dollars and ramp up on a state-by-state basis would be helpful.

然後就最後一個問題了，我會偷偷溜進來。查看您在 Q 中披露的地理分佈情況，似乎您看到了加利福尼亞州和佛羅裡達州等一些特定州的強勁增長。您能否談談您所在的州——您在各州的擴張策略，例如需要多長時間部署行銷資金以及在每個州逐步擴大規模，這將會很有幫助。

Thanks, Tommy. When we launch into new states, we're very, very diligent. And so we usually launch with pretty conservative pricing and underwriting. And then as we observe the data and the loss cost data coming through to ensure that we're hitting our target margins, that's when you'll start to see us open up a little bit. And sometimes we have to adjust pricing there.

謝謝，湯米。當我們進入新州時，我們會非常非常勤奮。因此，我們通常以相當保守的定價和承保推出產品。然後，當我們觀察數據和損失成本數據以確保我們達到目標利潤率時，您會開始看到我們稍微開放一點。有時我們必須調整價格。

You saw that in a couple of states that we've launched recently, for example. And so you may see us adjust pricing shortly thereafter as well. And so really, we take a very measured approach. And then as we gain confidence as that data comes through, that's really when you start to see the growth come through. And so that can take anywhere from six months to a year.

例如，您在我們最近推出的幾個州就看到了這一點。因此您可能也會看到我們隨後不久調整價格。因此，我們確實採取了非常謹慎的方法。然後，隨著我們對數據的信心增強，您將真正開始看到成長。這可能需要六個月到一年的時間。

Great.

偉大的。

Thanks Tommy.

謝謝湯米。

Elyse Greenspan, Wells Fargo.

富國銀行的伊莉絲‧格林斯潘。

Hey, thanks, my first question, you were highlighting, I think, seasonality on the growth side in terms of -- I think you mentioned tax refunds. I'm not sure if you have a sense of what the contribution to growth was there. Also, I don't know if perhaps you saw an impact, some pull-forward, just given the looming impact of tariffs and just both of those kind of contribution to policy growth in the Q1, I was hoping to get more color there. And then how are you thinking about policy growth over the balance of the year?

嘿，謝謝，我的第一個問題是，我認為你強調的是成長方面的季節性——我想你提到了退稅。我不確定您是否知道這對成長有何貢獻。此外，我不知道您是否看到了影響，一些提前，只是考慮到關稅的迫在眉睫的影響以及這兩種因素對第一季政策增長的貢獻，我希望在那裡獲得更多的細節。那麼您如何看待今年全年的政策成長？

Thanks, Elyse. Yes, I'd say the tax season, that's always a fairly -- that every year. And we saw that again this year. And so that's been pretty consistent year-over-year. It was maybe slightly more extreme this year than what we've seen in previous years. Tariffs, particularly in our partnerships channel where we are selling insurance directly embedded with a vehicle, we do believe that those potentially pulled up some demand.

謝謝，伊莉絲。是的，我想說納稅季節，每年都是如此。今年我們再次看到了這一點。因此，這一情況與去年同期相比一直保持相當一致。今年的情況可能比前幾年更加極端。關稅，特別是在我們的合作管道中，我們直接銷售嵌入車輛的保險，我們確實相信這些可能會拉動一些需求。

And so you also saw that. In terms of the remainder of the year and our PIF growth trajectory, Megan, would you like to take that?

所以你也看到了這一點。關於今年剩餘時間和我們的 PIF 成長軌跡，梅根，您願意接受嗎？

Yes. I think in terms of what Alex mentioned, I think the only thing that I would layer on is, as we enter Q2, I mean, we are seeing that PIF is roughly flat quarter-to-date. And really, that's in line with our expectations. We did bring on a significant number of new writings in Q1. And typically, at least on the direct side, we do see a higher churn associated with that increased growth penalty for some of the early-stage cohorts.

是的。我認為就 Alex 提到的而言，我認為我唯一要說的是，當我們進入第二季度時，我們看到 PIF 本季度迄今基本持平。事實上，這符合我們的預期。我們確實在第一季帶來了大量新作品。通常，至少從直接角度來看，我們確實看到，對於一些早期群體來說，隨著成長懲罰的增加，客戶流失率會更高。

And then I guess sticking on the tariff side, I think in the prepared remarks, right, you guys were highlighting how you can react pretty quickly to trend and seek approval for rates, if needed. Is your expectation that you guys will need to take rates to offset some of the tariff impact? And then we've kind of thought that the impact of tariffs would be about a mid-single-digit or 5% increase to severity. Is that within what you guys are expecting as well?

然後我想繼續談論關稅方面，我想在準備好的評論中，對的，你們強調瞭如何能夠對趨勢做出快速反應，並在必要時尋求對利率的批准。您是否預期您需要採取利率措施來抵銷部分關稅影響？然後我們認為關稅的影響將達到中等個位數或 5% 的嚴重程度成長。這也符合你們的期待嗎？

We've run a number of different scenarios. We do believe that it's going to be low- to mid-single-digit impact on the loss ratio. So when we look at it, though, our loss ratios have been below our current loss ratio targets. And so we believe we have more than enough room to absorb any of the tariffs in the current form given our best estimates. But absolutely, I will say if we need to take rate, we will take rate.

我們已經運行了許多不同的場景。我們確實相信這會對損失率產生低到中等個位數的影響。因此，當我們看一下時，我們的損失率一直低於我們目前的損失率目標。因此，我們相信，根據我們的最佳估計，我們有足夠的空間來吸收當前形式的任何關稅。但絕對地，我會說如果我們需要採取利率，我們就會採取利率。

And we believe that that's been -- actually, a core competitive advantage of the company is that by being run on a modern tech chassis and having automated rating systems, that has allowed us to be in front of, really, we believe, almost all of our competitors in terms of being able to take rates very quickly.

我們相信，事實上，公司的一個核心競爭優勢在於，透過採用現代技術底盤和擁有自動化評級系統，我們能夠在快速獲取利率方面領先於幾乎所有競爭對手。

And you saw that in 2023, right, where we were growing and taking significant market share as a company, while most others were still on the sidelines. And so although that there may be some near-term macroeconomic uncertainty, we believe just by virtue of being nimble in a tech company, we can certainly move much quicker.

您在 2023 年就看到了這一點，當時我們公司正在發展並佔據相當大的市場份額，而大多數其他公司仍在觀望。因此，儘管近期宏觀經濟可能存在一些不確定性，但我們相信，憑藉科技公司的彈性，我們肯定能夠採取更快的行動。

Thanks. And then my last question, it's been a few quarters in a row of positive earnings for you guys. I know you guys have steered away a bit from giving precise guidance, but just how you see -- obviously, there was a seasonality benefit in the Q1, but still decently profitable. So how do you guys see yourself in terms of remaining profitable over the balance of the year?

謝謝。我的最後一個問題是，你們已經連續幾個季度獲利。我知道你們沒有給出精確的指導，但正如你們所看到的——顯然，第一季有季節性的好處，但仍然有相當可觀的利潤。那麼，你們如何看待自己在今年剩餘時間內保持獲利的能力呢？

Yes. Thanks, Elyse. It's a good question. And what I would say is, yes, this is our third consecutive quarter of profitability. Q1, as you mentioned, does have the seasonal component to it, both on growth and on loss ratio.

是的。謝謝，伊莉絲。這是個好問題。我想說的是，是的，這是我們連續第三個季度獲利。正如您所提到的，第一季確實存在季節性因素，無論是成長還是損失率。

I think we've covered our expectations on growth in previous responses. But one thing I do want to highlight is the loss ratio is typically higher in Q2 and Q3 driven by Q2 is heavy convective storm season and then Q3 is hurricane season. So we do expect that the loss ratio will increase in Q2 and Q3 to align with our long-term target, which is between 60% and 65%. But the other thing I would say, too, is we're not expecting to run rate a single quarter, extrapolate results into the future. We're going to continue being very opportunistic on our direct marketing side, and you'll see us continue to take that approach.

我認為我們在先前的回覆中已經表達了對成長的預期。但我想強調的一點是，損失率在第二季和第三季通常較高，這是因為第二季是強對流風暴季節，而第三季是颶風季節。因此，我們確實預計第二季和第三季的損失率將上升，以符合我們的長期目標，即 60% 至 65% 之間。但我想說的另一件事是，我們並不期望根據單一季度的運行率來推斷未來的結果。我們將繼續在直銷方面抓住機遇，你會看到我們繼續採取這種方法。

Thank you.

謝謝。

(Operator Instructions) Andy Andersen, Jefferies.

（操作員指示）安迪安德森，傑富瑞。

Hey, guys this is Charlie on for Andrew. I know we've been talking about growth on the call so far, and I get that we're going to probably see a shift in mix of growth for the balance of the year move towards the partnership channel, but I guess how should we think about the contribution of new partnerships? I'm thinking like HCA or Experian partnership and the potential impacts to PIF growth there, like how long do they take to ramp? Do you expect them to be big contributors this year?

嘿，大家好，我是查理，代替安德魯。我知道到目前為止我們一直在電話會議上談論成長問題，而且我知道我們可能會看到今年剩餘時間的成長結構轉向合作管道，但我想我們應該如何看待新合作夥伴關係的貢獻？我正在思考 HCA 或 Experian 的合作關係及其對 PIF 成長的潛在影響，例如他們需要多長時間才能成長？您預計他們今年會做出巨大貢獻嗎？

Thanks, Charlie. In terms of new partnerships, in general, I would say, typically, when we onboard a new partner, it does take us time to ramp. And so we are in the early stages of the partnership, and we're going to share more details as that partnership and product continues to progress.

謝謝，查理。就新的合作夥伴關係而言，一般來說，我想說，通常情況下，當我們加入新的合作夥伴時，我們確實需要時間來發展。因此，我們正處於合作的早期階段，隨著合作和產品的不斷進展，我們將分享更多細節。

Okay. And then I guess just on kind of frequency and severity, I get that we've talked at length about tariffs, but it seems like 5% benefit from frequency, but there was also -- severity was up 7%. So how should we, I guess, first, be thinking about -- was there anything driving frequency down that you guys would call out that we should maybe think about as being nonrecurring or perhaps recurring? And then on severity, are you guys taking any steps or thinking that you may need to take any steps to adjust pricing there?

好的。然後我想就頻率和嚴重程度而言，我知道我們已經詳細討論了關稅，但似乎頻率帶來了 5% 的收益，但嚴重程度也上升了 7%。那麼我想，我們首先應該如何思考——是否有任何因素導致頻率下降，你們會說我們應該將其視為非經常性因素還是經常性因素？然後就嚴重性而言，你們是否採取了任何措施或認為可能需要採取任何措施來調整那裡的價格？

Thanks, Charlie. I would say that the trends have been roughly in line with what we've observed and what we've sort of anticipated. And so I don't think it was, in terms of frequency or severity trends, a quarter that was outside of the bounds of our reasonable expectations. We have seen some mix shift. So we have shifted more as -- particularly as we've launched more partnership channels into -- or more partnerships into a more preferred customer segment.

謝謝，查理。我想說，這些趨勢與我們觀察到的和預期的大致一致。因此，我認為，從頻率或嚴重程度趨勢來看，這個季度並沒有超出我們的合理預期。我們已經看到了一些混合轉變。因此，我們已經進行了更多的轉變——特別是當我們推出了更多的合作管道——或者說更多的合作夥伴關係，以適應更受歡迎的客戶群。

That segment, typically, you will see lower frequency and a bit higher severity, but we also believe that our pricing plans have sort of appropriately accounted for that in our segmentation model. So we feel pretty good about where trend is today.

通常，您會看到該細分市場的頻率較低且嚴重程度較高，但我們也相信，我們的定價計劃已在我們的細分模型中適當地考慮到了這一點。因此，我們對當今的趨勢感到十分滿意。

Okay, great, well that's all for me. Thanks guys.

好的，太好了，對我來說就這些了。謝謝大家。

Thanks, Charlie.

謝謝，查理。

At this time, there are no further questions. And with that, this concludes today's conference call. Thank you for joining us. You may now disconnect your lines.

目前，沒有其他問題。今天的電話會議到此結束。感謝您加入我們。現在您可以斷開線路了。