Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Vinay Misquith - Credit Suisse.
Vinay Misquith - Credit Suisse
Could you provide us some color on your growth in agency auto, was that due to the rollout of the new agency model with higher price segmentation and how is that impacting the price charge for your customers within that segment?
Glenn Renwick
Sure, as you could tell as for me with the highlight of the third quarter, but something that we sort of saw coming at the end of the second, so it was nice to have that. Let me put some color on a couple of different dimensions, maybe the more consistent and sustainable dimensions.
We have been rolling out our, what we call 7.0, we don’t tend to give them particular names, but product versions that we are always looking to increase and improve on our segmentation. That product is now out in about 32 states, and we have a new product on the heels of that as we pretty much always do, that will continue to rollout.
So, that offering to agents is sort of sustainable but perhaps the increase in third quarter would most likely be a result of competitive positioning, not necessarily something that we did other than stay disciplined to our approach, we talk about that a great deal and we will continue to shoot and price for our margins that we think are appropriate, and at different times in the market places, others that forced to take rate increases, and when they do and we’re positioned very well we benefit from that, and that’s something of course we try to do a great deal.
You will also remember, perhaps that in June, [John Phalen] talked to us a little bit about retailing of our agent rates. So, we have a situation where many of our agents are using a comparative rate.
I think if you like, that being a Google search , the position on, as you returned on that search is important, and clearly as our competitive position improves, as it has, we are going to improve our positioning on that search. We will also take some actions initiated by us we’re very pleased about and that’s what we call retailing when John talked to us about it, making sure that we optimize our conversion and make sure our agents know all of the potential product offerings or price points that we can offer their customer.
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