Many thanks for the update. Many positives in the report, especially overall GLR and absorbing the hit from California wildfires. But also some unexpected bad news with Car and Europe GLR and in ADR.
In principle I can accept their new business penalty explanation because QoQ IFP growth in these products was significant. But still the explanation is quite generic and vague, and it makes modelling of next quarters more tricky.
So now we have to expect accelerated IFP growth to produce worse GLR and ADR… at least a few quarters, or longer? And by how much? And how to track this? Needs more adjusted metrics which is frustrating.
I see your frustration Olli. But look, Car is I believe less than 10% of the total IFP and also Europe doesn’t weight much. Before their GLR and ADR can really impact the total number I expect they will fix it (this is why they didn’t accelerate on Car sooner, they wanted to have GLR under control). From here, I expect to see the ADR bottoming this or next quarter and improving from there. IMO no need of major changes to the Business Ontology metrics, everything is on track.
Many thanks for the update. Many positives in the report, especially overall GLR and absorbing the hit from California wildfires. But also some unexpected bad news with Car and Europe GLR and in ADR.
In principle I can accept their new business penalty explanation because QoQ IFP growth in these products was significant. But still the explanation is quite generic and vague, and it makes modelling of next quarters more tricky.
So now we have to expect accelerated IFP growth to produce worse GLR and ADR… at least a few quarters, or longer? And by how much? And how to track this? Needs more adjusted metrics which is frustrating.
I see your frustration Olli. But look, Car is I believe less than 10% of the total IFP and also Europe doesn’t weight much. Before their GLR and ADR can really impact the total number I expect they will fix it (this is why they didn’t accelerate on Car sooner, they wanted to have GLR under control). From here, I expect to see the ADR bottoming this or next quarter and improving from there. IMO no need of major changes to the Business Ontology metrics, everything is on track.