Allstate, as long as we get bios, Tom has been the CEO, I think, really, are you at 10 years right now?
Yes.
11? This is the 11th. It's really Tom has been running Allstate for a long time. Let's have him come up. He's going to do some prepared remarks, and then there'll be a time for a Q&A, and we'll go from there. Thank you.
Thank you, Josh. Good afternoon, everybody. Hopefully, you're awake after lunch. Thank you for taking time to learn more about Allstate and what we're doing to create shareholder value. With me today also is John Griek, who runs investor relations for us. Let me begin with our obligatory statement that says I'll be making some forward-looking statements today in references to non-GAAP measures. You also know you can get a bunch of information about us off our website, which is at allstateinvestors.com. Allstate's purpose is to protect people from life's uncertainties and prepare them for the future. Given the continued expansion of our business model, I thought I would start with two You Are Here charts. See how when you're in a shopping mall, you're trying to figure out where you're at, and they have a You Are Here chart, and you look for that.
I'm going to use two of those to get us started. This slide shows the relative size and impact of each of our businesses at the end of 2016. The upper left pie chart shows that most of our revenue today is from our traditional property liability products. The upper right chart breaks out operating income by our businesses. As you can see, a significant amount of our earnings last year came from Allstate branded home insurance as the frequency pressure reduced the income from Allstate brand auto insurance. Our operating priorities for 2017 are shown on the bottom. We use these to be both transparent with you, our investors, and also to direct our business.
The first three priorities, better serve our customers, achieve target economic returns on capital, and grow the customer base, are all intertwined and ensure that the corporation has multiple paths to profitable growth on a long-term basis. Our fourth priority centers on proactive management of our $80 billion portfolio to achieve the best risk-adjusted return over time. Investment income is relatively stable with a large fixed income portfolio behind it, but also has additional income from performance-based investments. We'll accomplish this in the Allstate agency channel through our Trusted Advisor Initiative. Esurance will continue to expand. Arity is building a telematics business, and SquareTrade will continue to grow through new retail partners and several newer initiatives.
This next You Are Here chart lays out our businesses by what we offer and how we go to market. If you start in the center, there are the customers we serve by providing over 73 million proprietary policies. We broker products for other companies that have premiums of over $2 billion annually, and we also do service work for other companies such as car manufacturers and telcos. The second ring shows how we go to market with a wide array of distribution partners and methods. The third ring shows the breadth of the products and services we offer. The left-hand side of this oval shows the property liability products we provide to the four consumer segments through the Allstate, Esurance, Encompass, and Answer Financial businesses. This is where most of our revenue is generated, as you could see from the prior slide.
On the right-hand side of the oval are products, services, and distribution that both support the left-hand side and are a source of higher growth. If you start at the top at about midnight there, the life and retirement products enhance the Allstate agency customer value proposition and make for stronger, more profitable agencies. You will remember we substantially downsized this business over the last 10 years to optimize returns and reduce risk. Allstate Benefits was acquired in 1999 and has had a compound annual growth rate in revenues of 9% per year for the last 17 years. Today, it has over 4 million policies in force. Allstate Benefits provides supplemental insurance through brokers and Allstate agencies to employers and competes with companies like Aflac. Allstate Roadside has created the first scalable independent contractor service model for non-towable service rescues.
It's substantially reducing the average wait time for customers, and as it matures, will both lower costs and increase margins. Allstate Dealer Services has relationships with car dealers throughout the United States and provides another way we can reach customers and protect them. Arity and SquareTrade also offer great opportunities for profitable growth. This is a broad-based strategy that will deliver sustainable prosperity. Now that you know who we are, let's talk about performance. We're off to a strong start in 2017 on both operating priorities and strategic initiatives. The value of having that broad-based business model was evident this quarter as we had excellent profitability despite a number of hailstorms. Net income was $666 million, while operating income was $1.64 per share. Auto insurance profitability improved due to the profit improvement actions that were started in 2015, as well as mild weather in January and February.
Homeowners insurance generated an underwriting profit despite significant catastrophe losses. The property & liability combined ratio was 93.6%, and the underlying combined ratio was 84.8% in the first quarter, below the full-year outlook we provided of 87%-89%. Investment results were solid with higher investment income that also increased Allstate Financial's operating income. We also closed the acquisition of SquareTrade, which expanded the protection products we offer, gives us distribution through major retailers, and added 30 million policies in force. Return on equity on operating income basis was 11.9%, as you can see from the bottom of the table. We returned $371 million to shareholders through dividends and share repurchases. Let's discuss our auto insurance margin results for the Allstate brand, since this was a key question for Josh and our shareholders over the last couple of years.
In 2015 and 2016, we were highly focused on improving auto profitability. Auto insurance profitability declined beginning in 2015, as you can see from the graph in the upper left, resulting largely from an increase in the frequency of accidents and the average cost associated with them. As a result, we implemented a broad-based four-part auto profit improvement plan. It included raising prices, tightening underwriting standards, focusing on claims excellence, and reducing expenses. Approved auto price increases were approximately $3 billion across all three of our underwriting brands over the last nine quarters, and that's been the highest we've taken in over a decade. We reacted quickly and broadly to the uptick in auto combined ratio, and auto margins shown on the graph have improved. Margin improvement in the first quarter of 2017 was better than expected as weather in January and February were particularly mild.
As a result of the improvement in auto profitability, in 2017, we're taking a balanced approach to profitable growth. The chart on the right-hand side shows new issued applications and retention ratios since the start of 2014. As you can see, the profit improvement actions have had a material impact on these drivers of growth. As we begin to take less price increases, retention should tick up, and as we begin to invest in expanding distribution capacity and marketing, we're seeing positive signs of growth on new business as well. New business applications are up 4.5% over the first quarter compared to the prior year, although we're below the levels we achieved in 2014. The next slide shows a longer-term view of Allstate Financial. As I mentioned, we've been working on this business for about 10 years to get it positioned right.
We take a proactive approach to all of our businesses to ensure we have attractive risk-adjusted returns for our shareholders, and you can see how this has played out for Allstate Financial. If you look in the upper left, it began with selling our variable annuity business before the financial market crisis. We then exited a number of annuity businesses, given our outlook for interest rates. We avoided becoming a SIFI under Dodd-Frank by shutting down our bank and sold Lincoln Benefit Life in 2014. The result is that Allstate Financial utilizes less capital, and its product liabilities are now about half of what they were 10 years ago.
Allstate Financial now has four primary sources of profit, life insurance sold through Allstate agencies, which we're continuing to do, retail deferred annuities, and long-term payout structured settlement annuities, neither of which we sell new today, it's a closed block, and Allstate Benefits. The graph on the bottom left breaks out reserves and contract holder funds and operating income by group. While annuities make up a significant portion of our liabilities, they amount to a relatively small amount of operating income. Traditional life products and Allstate Benefits are attractive businesses that we want to continue to grow, as shown in the graph on the bottom right. Operating income from retail annuities is acceptable. The return is acceptable given the relatively low interest rate environment. The payout annuities, however, have a low return on capital.
The optimal investment strategy for this discontinued block of business is to invest in higher return equity investments since the liabilities are extremely long dated. That requires us to put up more capital for this business, and it generates less current income. We could improve current results by investing in fixed income, but that would hurt shareholder value. We choose not to do this because it's in our shareholders' best long-term interest. We also take a proactive approach to investing. The investment portfolio is managed on a segmented basis, assessing both the primary source of return and how actively the assets are traded. We match near-term cash flows with fixed income securities and utilize equity investments to cover those long-term liabilities I mentioned.
Over time, we've increased the position in our performance-based investments to 8% of the portfolio, as you can see in the upper left, in part reflecting the decision on the payout annuity business. We've reduced our risk related to increasing interest rates over the last three years and we're long corporate credit today. Investment income has delivered a consistent contribution to return of approximately 1% per quarter, as you can see from the right-hand graph. The total return obviously varies by quarter based on interest rates and equity prices, but given the nature of our liabilities, we can continue to hold those investments and gain the incremental return that comes with short-term volatility. Another source of future return is the use of our capabilities to build an integrated digital enterprise.
We're using data, analytics, technology, and importantly, process redesign to significantly improve the effectiveness and efficiency of our business processes. We're pursuing this in really all of our activities. It goes from customer interactions at the local agencies to digital marketing, to pricing, to claims. Let me give you an example. In the past, when a customer had an auto accident, we often sent an adjuster out to look at the car, do an assessment of the repairs necessary, and estimate what it would cost to fix it. That required a lot of what we call windshield time, where people have to drive from place to place. That's expensive to do that. Today we use QuickFoto Claim. An adjuster does not have to drive to a car. A customer takes a picture for us. They send us the pictures.
In centralized locations, we can adjust those, and the damage assessments are as accurate, the time spent is much quicker, and we get customers their money in hours, not in days. It's cheaper, better, and faster. Everybody wins with integrated digital enterprise. Our disciplined approach to capital management enables us to balance investments in growing our businesses while simultaneously returning cash to shareholders. As shown on the left-hand side of the chart, we have invested in growing our core businesses and are always looking at ways to expand, create additional value for our shareholders or customers. Over the past 12 months, we've expanded our businesses by both building and acquiring long-term growth platforms. In 2016, we created Arity, which is a connected car entity, which provides expertise and services to our insurance companies. It helps them support the 1 million-plus Drivewise and DriveSense customers.
That gives them the ability to provide insurance customers more accurate price and enhance their driving experience. We're also actively engaging with third parties to find ways to capture additional revenue using Arity's expertise. In 2017, we acquired SquareTrade, which expands the way we protect customers by providing product protection plans that are sold through major retailers. These cover a wide range of consumer goods from personal computers, cell phones, televisions, and household appliances. Switching to the right-hand side of the page, this shows our longstanding policy of returning cash to shareholders. Our dividend yield has remained relatively consistent over the last four years as our dividends per share have gone up while the stock price has increased. We've also generated a substantial amount of income and strengthened our balance sheet, enabling us to repurchase more than 5% of our outstanding shares each of the past five years.
In conclusion, Allstate represents an attractive investment opportunity because we're proactive, we're disciplined, we're focused on creating economic value for our shareholders. We're leveraging our brand capabilities and our market position for growth in all four of the personal insurance customer segments. We're building long-term strategic growth platforms across our businesses. We have an investment portfolio of $80 billion, which generates attractive long-term returns. Operating income from this portfolio will increase if interest rates rise. The management team, we're proactive, and we're managing the business and both have an operating system that reacts quickly to unexpected events to protect and increase shareholder value. With that context, Josh, we'll take some questions.
That's great. Thanks. I'll ask a few questions of Tom, and I want people on the floor to ask questions. Please, why don't you have a seat? My first question is a little broad-based and comes from two sides of the story. John, are you going to join us, too? Good. Excellent. Answer Financial, which we don't get too many Answer Financial questions, but if you think about the unbranded online experience, that's a huge part of the market share in the U.K. for purchasing auto, not very big here, and Allstate currently, most of the business is done in Allstate stores.
To the extent to which, now that you have fixed pricing to some extent, what gets customers into stores, is the 20% of the market that's buying online, 30% bought in stores and through branded agents, and 50% through independent agents, is the way the marketplace channel is set up today, is that going to look that way in 10 years? Is Answer Financial the future in some ways? Are we going to change more towards the U.K. model?
I think it will change, who knows how it'll change. The good news is we're in all the channels, we can participate whichever way it goes, and that's why we're in all the channels. Let me segment a little bit. We do believe that there are some people in the insurance space who want to buy from people. They're not that interested. It's a low involvement category. One of my daughters is every bit as smart as my son. She'll never buy insurance on her own, as she's got no interest. She's got five other things she's interested in doing. She just wants to pay somebody and like, "Take care of it for me." It's not that expensive to have somebody do it for you.
My son, on the other hand, is always cruising the web and trying to figure something out, and he's more like an engineer. He will want to buy it himself. He'll want to compare all the prices. We want to be there for everybody. Answer Financial is not a big part of the United States market today. We do about $600 million of premium. We broker it for 25 other companies. It's basically like an online independent agent. You come to Answer Financial, they shop you around. They say, "Here's three other companies. Here's a different price you'd get." The market hasn't worked in the United States for a couple of reasons. One is there's much more advertising in the United States for branded insurance than there is in the U.K. GEICO spent $1.4 billion last year. Progressive was probably $700 million.
We're like $500 million on just the Allstate brand, another $200 on Esurance. There's a lot more advertising drawing people to those brands as opposed to the aggregators. Secondly, it doesn't really work that well for the carriers, particularly in the U.K. What happens is every time your price is just a little too cheap, somebody buys it. When you have a billion price points, you're not going to be right on all of them. What we've tried to do with Answer Financial is we're really trying to position it to do a better job for customers and a better job for carriers. I think telematics will help us do that. Telematics, we can house their data for them and help them shop around for prices better.
I think with carriers, right now, carriers come to Answer Financial, and they get a policy at a time. If you're getting a policy which is mispriced in your plan, that's not a good outcome. What we ought to be able to do is help them figure out how to sculpt the kind of performance they get. Admiral sort of does that in the U.K. They source the capital differently. We think we can reposition that. Do I think the market is going to automatically shift to everybody being online? No. Do I think that we can use technology to make the Allstate agencies more effective? Yes. Not that many people actually come into the Allstate agencies. The local part of the agency is you know they're local, that maybe they know you, they have connections in the community.
There are some risk management things that can be local. If you're in Harris County, Texas, down by Houston, you know what kind of flood insurance you have. It's harder to do that out of a call center. Josh, we're going to use all four platforms, and design the customer value proposition right. Will it shift over time? It depends in part how much price transparency is important relative to improved value. You can substantially improve the value that you get from a local agency using technology. It's not like those people don't want technology. We just have to figure out a way to use it better.
If you think you have the price right in Tulsa, Oklahoma, just as an example, to get people to call the local agency or whatnot, you can advertise, you can cut price. How responsive is the market to attempts that you have to sweeten the local market so you can take a greater share? How hard is that for you to drive traffic, I guess?
Okay. There's a couple of layers to that. First, about 30%-33% of the market shops every year. A large portion of people are just not looking for insurance, and as I said, it's a low involvement category.
Although not Allstate customers.
No, just the overall market.
Right.
The largest portion of those shopping tend to be people who pay a lot of money, who tend to be the highest risk people, and they tend to be the people who don't stay around long enough. You have to be careful that you don't go out and get a whole bunch of the shoppers, get them in your business, and then next time somebody offers to save them $50, all the money you spent on attracting them is not worth that thing because it's a retention game. You want to keep the customers. That hasn't changed a lot in the last three or four years. It may change a little bit this year, go up a little bit because other people are raising their prices now, like we did. Shopping behavior may go up a little.
We can grow by doing advertising, local lead generation, putting more capacity in place. We shut down some distribution capacity in the Allstate channel in 2015 and 2016, so we can expand the number of people we have working out there. The other easiest way to grow is through retention. We raised prices 7.2% in auto insurance last year. The way in which we did it, intentionally, had a negative impact on retention. We lost customers. As a result of that, items in force were down 2.9%. As we quit increasing prices, our retention levels should go up, and retention's dollar-for-dollar increase in growth. We'll get more retention, and we'll get more new business.
Can we talk a little about SquareTrade and understand
Yeah
First of all, I want to understand both how SquareTrade as a point of sale mechanism for you generating fees and leads and all those things, how much money there is there, and as a potential future underwriting organization. How much do your underwriting partners make off SquareTrade? How long is that transition going to take for Allstate being on the point of sale part of the story to being a full service underwriting participant in this ecosystem?
First, what SquareTrade sells, cell phone insurance, computer insurance, and stuff like that. We thought we should be in that business. While people may have fewer autos in the future, people sure seem to have a lot more devices today. We're not in that business, so we wanted to be in that business. It was a good way for us to get in. What they do is they sell it through retailers. If you buy a cell phone at Target, you get offered SquareTrade insurance. SquareTrade, because it was a startup business, went from zero to maybe do about $300 million, I think, in terms of premiums last year. It didn't have its own capital, so they used two insurance companies to do the backstop. SquareTrade still has the risk. It was basically a collar.
They still had some catastrophe risk on it. When we bought SquareTrade, we'll continue to expand it through retailers, one of the things we want to do. Two, we're going to test out whether we're actually there in the market trying to figure out whether they can expand in cell phone insurance through the telcos in Europe. They're working with some companies to try to do that. If we can do that, maybe we'll try to get some carrier business in the U.S. Assurant, you may know, is a big company. It's got 80% of the market. We think there's some value to be had here. Third, we may go direct. We're looking at direct. That'll be different ways in which we collect those customers. Retailers, maybe through telcos internationally, direct on our own.
Once we get that business, we're going to start putting it on our own paper, particularly in the United States. We have to figure out what we want to do internationally. Right now, it's a little harder to do internationally. We will capture the underwriting profit associated with that business.
Which is attractive.
Yeah.
Your partners will be happy to have that business, I think.
Yeah, I would say the return's in the mid-teens, return on capital. It's a good place for us to put capital, and we got plenty of money.
What's the learning curve, I guess, to put it on your own paper? Are all the underwriting already being done, just a matter of Legal and I guess domicile approval?
It's the latter two. Yeah, the underwriting. SquareTrade always underwrote it. SquareTrade put money in a pool. If that pool got used up, SquareTrade was still on the hook. The underwriters made sure there was a lot of money in there. They were always on the risk, so they've always underwritten the business.
I'm not expecting a change in guidance here today, the first quarter of the year was one of the best quarters Allstate's ever seen from a core underwriting position. You have an 87%-89% core combined ratio guidance going forward. Look, you'll see how things go, do you think that the first quarter was anomalistic? Was the weather particularly good? Is there a reason to think that the first quarter, given there's more rate coming through for the remainder of the year, is there reason to be concerned? Are there things keeping you up at night right now about your margins?
First, I think the auto insurance business, we've gotten over the hump, we're into the mode where the profitability is good. As the rates continue to be burned into the pricing, it takes a while, as you know, to get in there. I'm feeling like our future price increases will be reflective of future increases in frequency and severity. That wasn't the case in 2015 and 2016. We were behind. Now I think we're caught up, so to speak. I think the future from that business should be more stable. As it relates to the first quarter, January and February are just incredibly good months. I mean, just the frequency was way down, wasn't a whole lot of weather. March looked a little bit more like a normal month would be. That said, we looked at March, and we felt it was looking good to us.
We haven't changed 87%-89%. We'll see how the second quarter goes. As you know, we always insist that it's our annual number. We give you that number, we say, look, we're pretty confident we can be within 87%-89%. We've never missed that.
We've beaten it though
10 years. We've beaten it, yes. It's a good thing to beat it. To date, we're not ready to move below 87%-89%.
I have more questions, but I want to open up the floor and allow anyone who wants questions to ask them.
Are you seeing any competition pick up from startups like Lemonade?
First, let's just go very macro and then zoom down into people like Lemonade. There's a whole bunch of new money that's coming into the insurance space because people believe that technology will drive a lot of change, and we believe that, too. I think when you're seeing it, some of it's on the underwriting side, but I think most of the thing is building this integrated digital enterprise. I think doing it with digitization will dramatically change the business. I think digitizing some of the sales experience, as Josh mentioned, will help on the things like Answer Financial and stuff like that. For those people who want a person, it will just help that person be more effective. Not that worried about Lemonade and some of the other people.
It's amazing how much PR they get relative to the amount of money raised because it's not a tremendous amount of money. We'll spend multiples more than Lemonade will spend on Arity in a year. We're aggressively leaning into that on the digital part to it. I don't think there's anything I see that's particularly unique into what they're doing.
When I look at your acquisition of SquareTrade, I look at the auto insurance, say, well, I guess we don't know what it's going to look like in maybe five years or 10 years. I don't know. You put the number because of how many driverless auto cars there are. Does that mean that we should look at your legacy as you want to diversify Allstate away from auto insurance and say there are going to be some major acquisitions or more acquisitions along this line to just diversify out of auto and figure out we should be in other lines of insurance?
I don't really know about legacy. I'm more focused on what should we do than what gets attributed to me. First, I would say, let me go way up, and I'll come down to your question specifically about diversification. First, the personal transportation industry is going to change dramatically. It's not just autonomous cars. We spend way too much money on personal transportation in the United States. We have $4 trillion tied up in hardware called cars, trucks, and stuff like that. We have $2 trillion a year in annual direct expense to take care of it. Another $1 trillion of indirect expense. One of the biggest things the United States spends money on. Its efficiency is terrible. 3%-4% capacity utilization, 34% peak hours, 70% of the time, one person in a car.
A 20% improvement in the cost structure of personal transportation industry is worth a 5% improvement in household income in America. That's $250 per household per month. You want to talk about love affair with a car? It will go away. It's not just going to be autonomous cars. It'll be shared cars. It'll be different kind of transportation, different kind of public transportation. Buses are not that efficient. They're efficient at rush hour, they're not so efficient most of the other times. That whole system's going to change. You say, well, what role should we play in that? Well, being tied just to personal transportation cars, auto insurance, when there's better sensors, there could be fewer accidents, probably fewer cars. We wouldn't put all your money on that.
Arity is a way in which we can participate in the reshaping of the personal transportation industry. At the same time, one of the things we're trying to do is be more focused on what things consumers want. Our mission is to protect people from life's uncertainties and prepare them for the future. Let's talk about cell phones, computers. Why do we buy SquareTrade? There was a whole bunch of stuff people had today that they didn't have before. We could provide insurance protection on it, and that's what we're good at. We said, "Let's do it now." It was expensive because it's got a different model. It's growing quite rapidly. It was the best alternative out there. Assurant, which is giant, makes a lot of money. I think this has a better business model.
Other things, though, that we'd like to do, there's something we could perhaps do on digital safety. If you think about your identity is protected, might not insure your car, maybe we insure your identity. Currently, the current model with LifeLock and stuff is kind of a niche. They call your credit cards back, help you to. It's a restoration product, it's not really a protection product. We think by expanding Arity, we can cover more cars, even if there are fewer cars. We think we can insure other things. I think we have capabilities to expand in some other insurance-related businesses. I don't think you should see us diversifying outside of what data and analytics and risk metrics can get us. Is that helpful?
When I look at Allstate Benefits and work site sales-
Yeah
Is this how good is the average Allstate branch office at penetrating that market? Is this a great growth area if you could take your best-in-class producers and teach them how to teach other Allstate branches how to sell this product?
First, Allstate Benefits is a great business. It's been growing I think at 9% a year for 17 years in a row. If you look at the value inside the company, I think it's not valued appropriately, but whatever. It's a great growth business. It's growing for a couple of reasons. One is the market's growing because more employers want their employees to have benefits, but they don't want to pay for it, so it's called voluntary benefits. We sell that through three channels. One, through benefit brokers, two, through Allstate agencies, and three, sort of direct. We've expanded the business geographically across the U.S. We've expanded its product portfolio, and we've expanded the size of companies. We sell everybody from Walmart, where we have hundreds of thousands of policies in place, to Lowe's, to individual businesses that are two in 10 people.
The Allstate agencies today provide a little less than 20, but more than 10% of the current business. There are some people quite good at it, and they go for those small businesses. We don't want to turn the Allstate agencies into hunting for. They would like it because you'd make a huge commission, GE or somebody like that, we can do that direct and better and cheaper. We could get more volume out of them. There's lots of other things the Allstate agencies could do. One of the things, back to auto insurance, when auto insurance is your primary business, you're making a good living off it. That's what you sell. As auto insurance goes down, what we want to do is get the Allstate agency to sell more benefits, more life insurance, sell more commercial insurance to the Allstate agencies.
Eventually, we're testing whether we want to sell SquareTrade policies to the Allstate agencies. Think of that as a distribution platform through which we can market stuff to customers. Yes. It's hard to get a specific model, though, to say, like, "This is the best in class," because some people like commercial, they know a bunch of business people, other people don't know anybody, and they're 28 years old, and they're just happy to dial the phone. We have best practices, but you can't really have one model, like a franchise, where you would stamp it out everywhere.
We've got 16 seconds left, so quickie.
If you look at the agencies, and if you look out, say, three to five years from now, will they do more or significantly less business overall?
I think our Allstate agencies will do more business overall. I think it'll be more technologically enabled. The work we're doing on digitizing and keeping track of customers. We have what we call Universal Consumer View. We have information on 125 million households, 300-plus million people. When the agency, when you call, now they'll know you. Know you in some ways that will surprise you, and give them the ability to provide more value added. We called it the Trusted Advisor Initiative. Rather than having an agency be a human modem, call them, put the phone to their ear, type into the computer, and say $507 for six months, that business is going away. Those that do that won't be in business anymore.
Those that can actually provide you value added, help you use the information we give them to help provide you value, I think their business will grow. They're aggressive, they invest their money, it might be selling cell phone insurance. They will find things to sell and to provide to our customers as long as our customers have risk. I think it'll be fine, yeah.
Well, I want to thank John and Tom for coming.
Thank you.
I know they have some breakouts, good luck, still three more quarters to go.
Yeah thanks. Thank you.
Thank you.