QuestionerA couple of years ago in this meeting, Mr. Jane outlined the significant challenges GEICO faced in modernizing and integrating its IT systems. It was also mentioned that competitors were ahead in their pricing strategies because of the use of telematics. Today, GEICO's turnaround is evident through strong pricing and operational improvements. Would you provide more details on the specific actions taken under Todd's leadership and how those changes will help sustain a long-term competitive advantage in the coming years?
Ajit JainYeah. TARD has done a great job for us in terms of turning around the operations. When he took over, there were two major issues that GEICO was behind its competitors on. Firstly, the term Warren used and we all have been using is matching rate to risk. And secondly, telematics. We were at the bottom of the list, and so far, telematics had been about five, six years ago. Since then, we have made rapid strides, and telematics, which used to be a source of competitive disadvantage to us, is no longer so. And I would argue that our telematics at GEICO is about as good as anyone else is today. So that's been one huge catch-up. Secondly, in terms of matching rate to risk, there again, I think we have caught up with our competitors and we are as good as anyone else. in the field. All this together with the cost reduction effort that GEICO and Todd gets a lot of credit for. He has basically reduced the workforce by 20,000, starting with something close to 50,000. He's brought it down to 20,000, and that translates to, I guess, at least $2 billion per year. So all this has allowed GEICO to become a much focused competitor, so much so So in the last seven quarters, GEICO has shown a combined ratio that has an eight in front of it. And I never thought I'd live to see the day when anyone could have a combined ratio at it's so low as it is right now. So I think GEICO has done a great job. It's 80 combined translates to the largest profit anyone is making on the underwriting side in the personal automobile business. So, you know, we've achieved a lot, taught has achieved a lot. But I do not want to be so arrogant as to say that mission accomplished. We've achieved a lot, but I still think we need to do a lot more in technology. AI, as we talked about, is going to be a big force. And we need to play catch-up there. Not catch-up, but we ought to be in a state of readiness. So I think GEICO is in a great shape right now.