Positive Outlook

• Rate increases implemented in Q1 2023 for California Personal Auto (6.9%), California Commercial Auto (13.0%), Personal Auto Outside of California (3.2%), and Homeowners Outside of California (8.1%).
• Additional rate increases effective or scheduled for Q2 2023 for California Personal Auto (6.99%), California Homeowners (12.6%), California Commercial Auto (14.9%), Personal Auto Outside of California (4.0%), and Homeowners Outside of California (1.6%).
• Favorable development of approximately $15 million on prior accident years' loss and loss adjustment expense reserves, primarily attributable to lower than estimated losses and loss adjustment expenses in the homeowners line of insurance business.
• Higher net investment income before and after income taxes for the three months ended March 31, 2023 compared to the corresponding period in 2022 resulted largely from higher average yield combined with higher average invested assets.
• Average annual yield on investments after income taxes for the three months ended March 31, 2023 increased compared to the corresponding period in 2022, primarily due to the maturity and replacement of lower yielding investments purchased when market interest rates were lower with higher yielding investments, as a result of increasing market interest rates, as well as higher yields on investments based on floating interest rates.