Direct Line Insurance Group PLC
LSE:DLG
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Estee Lauder Companies Inc
NYSE:EL
|
Consumer products
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Church & Dwight Co Inc
NYSE:CHD
|
Consumer products
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
American Express Co
NYSE:AXP
|
Financial Services
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Target Corp
NYSE:TGT
|
Retail
|
| US |
|
Walt Disney Co
NYSE:DIS
|
Media
|
| US |
|
Mueller Industries Inc
NYSE:MLI
|
Machinery
|
| US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
152.6
225.8
|
| Price Target |
|
We'll email you a reminder when the closing price reaches GBX.
Choose the stock you wish to monitor with a price alert.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Estee Lauder Companies Inc
NYSE:EL
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Church & Dwight Co Inc
NYSE:CHD
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
American Express Co
NYSE:AXP
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Target Corp
NYSE:TGT
|
US |
|
|
Walt Disney Co
NYSE:DIS
|
US |
|
|
Mueller Industries Inc
NYSE:MLI
|
US |
|
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
This alert will be permanently deleted.
Direct Line Insurance Group PLC
You don't have any saved screeners yet
Hello, ladies and gentlemen, and welcome to the DLG Q1 2018 Trading Update Call.My name is Abby, and I will be your coordinator for today's conference. [Operator Instructions]I'm now handing you over to Paul Geddes to begin today's conference. Thank you.
Thanks. And good morning, everyone. Thanks for joining us for this brief trading update on what has been another busy quarter.You will have seen our trading statement this morning, so I'm going to give you a bit more color on those highlights and then open up to questions. As usual, I'm joined by members of the management team here with me today.Overall, I'm pleased with the progress we're making on our strategic goals and on how we traded this quarter, growing our direct own brand premiums by 4.7%. It was an active quarter in respect of weather events. And I'm really proud of how our people supported our customers, again demonstrating the value of our insurance coverage and service. After a very strong 2017, Motor margins are returning to more normal levels. Home remained competitive, although we've navigated this well, while both Green Flag and Direct Line for Business had another good quarter overall. I'm pleased to say that our Direct Line brands, particularly in Motor and SME, drove much of the growth.So now on to the performance of the individual categories, starting with Motor where we continued to make good progress.At a market level, following strong pricing in the first half of 2017, prices started to reduce and now have returned broadly to pre-Ogden levels, as yesterday's ABI survey showed. This should be seen in the context of the favorable claims environment we saw in 2017, together with the positive news on Ogden and whiplash reform. Net, we judge that the market has behaved rationally. Against this rational backdrop, we grew our own brand policies 5% compared to Q1 last year, and our own brand premiums 5.3%, with growth in both direct and PCW channels. And whilst margins were below the supercharged levels of 2017, they are in line with target levels, and our long-standing focus on value remains. Importantly, we also took a step forward strategically by writing our first policies under the Volkswagen contract.In Home, you'll recall our Nationwide contract ended at the end of 2017, which drives the headline figures. Own brands grew in-force policies 1.8% compared to prior year, broadly in line with our expectations. And the work we've done on our digital capabilities helps grow in-force policies through our Royal Bank of Scotland partnership, the first quarter-on-quarter growth we've achieved since 2012 and reflects the great progress we've made here.After 2 benign years, it won't have escaped you that it was a cold quarter. The freezing weather had an impact across the business. And we estimate that across Home and Commercial we've use the group's full annual weather budget of GBP 75 million primarily as a result of the freeze, which equates to about GBP 50 million net of tax and profit commission. Aside from the weather, the actions we've been taking on underwriting, claims and pricing mean we are currently on track with underlying Home profitability.Turning to Commercial, where we had another good quarter, growing in-force policies 4.7% versus last year. As you know, Commercial has 2 distinct stories within it. Direct Line for business or DL4B is already highly profitable, has been growing and [ adds ] overall Direct Line franchise. And in Q1, it grew in-force policies 8.1% and premiums 8.4%. In our broker business NIG we've been continuing to move returns towards the group's target levels and continuing to prioritize value over volume. We're making real progress here and saw some good rates in the quarter. In Rescue, our direct business Green Flag grew premiums 9.6%, helping to partially offset the decline in our partnerships. Overall, we continue on our path of improving the value of the business in this portfolio.Turning to balance sheet, I can confirm our year-end 2017 solvency capital ratio actually came in at 165%, which is 3 percentage points ahead of the estimate we gave at our preliminary results.So a brief wrap-up before questions. Our multibrand, multichannel strategy that succeeded in 2017 has given us momentum into Q1 2018. Overall, we've navigated a complex trading environment well. And we reiterate our financial targets adjusted for normal weather and assuming no further change to the Ogden discount rate.And with that, we'll hand over to the operator for questions.
[Operator Instructions] Okay, so we've got some questions coming through. And so the first question comes from the line of Thomas Seidl.
Three questions, if I may. The first one, on Home. Last year, we -- you and others reported high claims inflation and the need to take price action. Now it seems in Q1 we didn't see any price increases, if not perhaps price decreases. Maybe you can comment on the pricing in Home and the competitiveness there. Secondly, NIG, you said you took price action, and as a result, you continued to lose market share. My question there is, do you expect this to continue? Is there some hope that you reach a sort of bottom in terms of volume and the rest of the market also start to take price action? Or is it just you taking those price actions? And finally, a brief one on Motor: The 5% -- 5.3% growth in own brands compares rather high to the 2.9% for the total portfolio. Does this mean that the rather small partnership business has seen a substantial drop in volume?
Very good. Thanks, Thomas. Very easy one, to start with your third question. Yes, Sainsbury's, we've stopped writing. So that's explains that difference. NIG, yes, listen, the target is to improve the returns, not to reduce the volumes. Now where we have a choice, we'll -- it'll be a volume here, but we also have some self-help initiatives in that. So I think broadly we would hope that it'll be relatively stable in the coming period, depending on obviously how the market behaves. Penny, Home?
Yes. Thomas, Home pricing. So we think, if we look at the market, that probably overall rates are around flat, but within that there's a bit of distortion because there are 1 or 2 players putting through quite sharp decreases and most people are actually putting through rate increases. And if we look at our book, we've actually got some pricing away across the channel, but what you're seeing is average premium come up a little due to risk mix, so overall the margins are, if anything, a little up compared to the previous quarter.
Okay, so the average premium, you say, is mainly mix, not that you also saw price decreases.
Yes. We're getting positive rates, but risk -- the risk balance is pulling the average premium down.
Okay. So the next question comes from the line of James Shuck calling from Citi.
So I just have 2 relatively simple ones for you, I think. Firstly, just keen to think about the bodily injury claims trends in the year-to-date. We've had some data, I think, from the Department for Work and Pensions sort of suggesting that we've seen a sharp reduction in that year-to-date. And this is even ahead of the whiplash reform. So perhaps you could just comment on what your experience has been year-to-date, please? And then secondly, I'm just interested to hear a bit more about the Home partnership. Most of that is with RBS. And you've returned to growth, as you say, for the first time for a while. I'm interested to kind of know about the functionality and the modularity of what you're actually offering for customers and how successful you see that growing from here.
Great. Penny, do you want to do the Home one first?
Yes. So Royal Bank of Scotland, that was primarily, as you say. And we've seen a decline for several years now. What we think that's turned it is we're using APIs on the front end to better link together with this digital front end for customers so we can use RBS data to sort of prepopulate a lot of that. And it makes actually the customer journey much, much easier. And that's really been the driver. At the moment, the increase is small, but it's reversed the trend that we've seen for several years, so we're really, really pleased about it.
Yes, thank you. On bodily injury, listen, we are seeing some more encouraging trends. I think we talked about 2017 being a good year overall. And we said, at the time, we thought some of that might be the flow-through of the previous government reforms, things like MedCo and the Jackson reforms and the abolition of referral fees. So all of that, we do think, is contributing. We also do think that potentially, some early signs, anticipating the future whiplash regime, that might be somewhat reshaping the response of the legal industry. So again that might also account for some more positive bodily injury trends, which we're seeing. Slightly hard to read actually in the first quarter because claims trends have been a bit affected by the weather. So whilst actually Motor has not that -- been that expensive in terms of the effects of the freeze, it slightly changed which parallels the claims that are coming on. So we'll probably need a few more quarters to get under the skin of it, but we do think BI -- good BI trend is part of the reason we say it's benign and favorable claims environment. And that explains why we are saying that these pricing reductions that we've seen have been rational. And I think actually, listen, if prices have gone up against those trends improving, I think that would have been quite reputationally damaging for the industry given that we've encouraged the government to go and do reform. The quid pro quo is that savings should flow through to the consumer, and I think it's entirely right and predictable that prices should have come back.
I mean, would you say that -- I mean there's obviously a big rise in whiplash over -- whiplash claims over a prolonged period, but more recently there's no real evidence that whiplash has been increasing. It looks like it's actually been decreasing across the industry. Does that undermine the assets to get those kind of reforms through with the Civil Liability Bill?
Well, I guess what I'm saying is some of it might be the legal industry anticipating those changes. And there's just been less activity in terms of marketing to consumers. So that might be an early benefit of the proposed changes. It might be coming through already. And then the last changes, we think, have -- potentially are working, things like MedCo. And we think that working and being passed on to consumers should encourage the government to actually enact this legislation. So I think there's a kind of positive reinforcement story happening here, and I think it's a good news story. And people shouldn't be therefore spooked by premiums coming back. It'd be -- I think it'd be dangerous if they weren't coming back. Now obviously that gives us some -- a little bit of challenge on our expenses. And we're obviously up and planning on meeting that challenge; hence reiterating the target, which includes expense ratio reduction.
Okay. So the next question comes from the line of Arjan Van Veen calling from UBS.
Just to follow up on that. Just can you just -- at the end of last year, you saw claims frequency also improve other than bodily injuries. Can you just maybe comment on the rest of the claims environment other than bodily injury? And the second question I had was around pricing. You're saying it's rational. One of your peers reported recently and said that it was more competitive in January and February and getting more sort of normalized in March. I'm just curious if you're sort of witnessing similar trends.
Yes. I think the -- we're not seeing at a market level the same gradation or improvement within those 2-month periods. Obviously, competitors move around their competitiveness and therefore their volumes, so some competitors clearly will be more competitive in January and February and March and April. Also, remember the backdrop, which is the market does have some normal seasonality, which is prices tend to be a bit higher in at the end of Q4 and then come back a bit in Q1. Overall, though, we're saying that, based on what we're seeing as industry-level claims data and industry-level pricing, we still think the two are -- kind of are moving in the same direction. We are actually quite pleased with our own performance. If you look at the ABI data yesterday, whilst their headline was 3.1%, if you adjust for IPT, that takes the industry average premium to plus 1.1%. As you can work out, our average premium was up a little bit ahead of that 1.3%, but we're also saying that actually we have some mix gain in our favor. So our actual pricing was somewhat ahead of that. And part of that is reflecting the fact that we're still behind where we were on young drivers as a result of how we repriced young drivers post Ogden, which we still feel happy with. So we are quite happy with our own performance, but standing back, we don't think the industry is -- has acted irrationally. Now, of course, that's backward-looking statements. And I make no forward-looking statements.
And then just outside BI in terms of just [indiscernible].
Yes, I mean I think other trends continue. I think the accidental damage trends that we said which is -- that is an inflationary line driven by both -- especially by the cost of repairing cars and with sensors. And the people who took the trips to the garage will remember how complex these cars are now and how much they cost to repair. And that's an ongoing underlying trend.
And you said -- just to clarify. You said before that the 1Q abnormal weather didn't impact Motor that much. You didn't see increasing frequency on that.
No. I mean a bit. We'll get over it.
Okay. So the next question comes from the line of Edward Morris from JPMorgan.
Three questions from me, please. First is just coming back to your comments on pricing and claims inflation. On the one hand, you sort of seem to be describing a fairly rational market. On the other hand, in your comments you mentioned last year being a very good period for profitability, and I just wondered if you could sort of reconcile those 2 things. Are you referring to any component reserve releases? Or is there something underlying that was materially better than expected last year? The second question is on solvency. I wonder if you could just explain the 3% increase, please, where that came from and if there's any further color there. And then the third is on the VW partnership. I wondered if you could give us any detail on how significant that is in premium terms perhaps.
Yes, so the kind of supercharged nature of 2017, part of it was we are not assuming all of the positive experience will trend, so we are kind of saying it might be just a lucky year. Secondly, Ogden was largely paid for by the reinsurers, so it was -- that was helpful to the industry profitability in 2017. Solvency, Penny?
Yes, no great stories. We estimate, do an early estimate when we come out with the report and accounts. The process continues from there, where the validation routines continue and some of the model runs are still running. So there's really no great story in the 3 points. It's just the conclusion of the process. I think, over time, [ certainly we've run ] Solvency II. Those sort of estimates will get tighter and tighter, but no great [indiscernible] or risk profile changes to report.
Yes. I mean VW in the next few quarters won't move the needle that much because it's a new book. And it will build up, but it's helpful. And of course, this is quite a long-term ambition that we have, to work with them to really crack car manufacturers selling insurance, which has been a bit, we think -- is a channel with opportunity. So as we go forward, we'll tell you more about it, but we've got a fantastic strategic alignment with their top team. They have great brands doing really well and lots of exciting propositions, I think, ahead for us to jointly develop.
Okay. So the next question comes from the line of Greig Paterson from KBW.
Just probably some numbers. They're all -- I was a bit confused from your results release, so maybe you can just help me with some numbers or make more comments. In terms of U.K. Motor in your overall book, what was the year-on-year rate increase? And what was the mix impact? That's question one. And question two is just remind me in terms of numbers what you thought inflation was in 2017. And I remember, in March, you made some comments about, well, you just thought it would be in '18 in terms of your 3% to 5% range [ whereabouts et cetera ]. Just if you could remind us of those, And I mean excluding any excess of loss costs when you're talking about the claims inflation. And then thirdly, what in weather -- how much weather -- how many points do you think weather cost -- weather is affecting the Motor line in terms of increased frequency? I assume -- assuming you've excluded it from the previous one. And then finally, just I think I -- you did say this, but I might have got it wrong. What was your actual year-on-year rate in Home versus the mix impacts just in terms of numbers?
Okay, so Greig, listen, on the -- we're not, certainly on the quarters, breaking out rate mix, but we're giving you a directional sense. So what we're saying is, our headline average premium of 1.3% year-on-year, the mix is going, as in we're getting -- it's less risky because we have particularly fewer young drivers. So the pure price is somewhat ahead of the 1.3% -- materially ahead of the 1.3%. So that's the first question. Similarly, we didn't give a number for inflation last year, but we -- I think we indicated it was below the 3% to 5% and really quite favorable. Again, we're a little bit cagey on this because we think it is commercially sensitive what our inflation numbers are. With weather...
That is gross of excess of loss changes. Well, obviously, that was [indiscernible]. Is that the [indiscernible] for it?
Yes, yes. [indiscernible].
Yes.
Next, weather?
Weather...
On Motor.
Weather on Motor. So I think, weather on Motor, very small really. So it should -- kind of changed the nature of the losses rather than the actual volume of them, so a little bit but not worth taking into account.
And I think your last question was rate price on Home, which again we're not going to give you numbers for, but directionally...
So directionally rates are directly offset by mix. So all of the AVPs will be offset between the two. So we're comfortable with rate going up, offset by mix, but...
So Home and Motor, I think, yes, the underlying like-for-like pricing is better than the AVP would indicate.
All right. But you mentioned something on -- you said your average premium is up 3.3%, but then -- in Motor earlier on. And you've now said it's up 1.1%.
Yes. So ABI markets headline up 3.1%, including IPT. ABI markets including -- adjusted for IPT, up 1.1%. Us average, plus 1.3%, but risk-adjusted better than 1.3% materially.
Well, all right. I wrote down 3.1%. Sorry. [indiscernible]. Apologies.
Yes, okay. No worries.
Okay. So the next question comes from the line of Andrew Crean calling from Autonomous.
A couple of questions. Firstly, your Solvency II coverage ratio at 165% is now 5 points or about [ 67 million ] above the 160%, which is where you tend to judge excess capital and return it in special dividends. Does that mean therefore that we've got about [ 67 million ] of surplus capital returns moving into 2017 regardless of what happens this year? And then secondly, could you talk a bit about Motor PCW? I know you are trying to get the volumes growing there with the second pricing algorithm. Could you update us on that, please?
Very good, yes.
I'll take solvency. Andrew, I think the [ funds ] are right in terms of coming into the year with 5 points and that kind of headroom. The only thing I'd say is we said we'll be around middle of the range, so don't take 160% as absolutely literally to the point. And it's early in the year, but yes, we enter the year in a strong position.
And I think conceptually maybe balance that in your mind against the weather. So I mean it's obviously up to the board's as well. Yes, Motor, we're getting slightly ahead of ourselves with that particular initiative helping us on PCWs. We are still in development on that, very excited by it, but it's as we said. Once we got the model, we need to deploy it, test that it writes the customers we expect. They don't have the accidents that we expect. So that's going to be -- it's in our somewhat medium- to long-term chart, if you remember last time. But generally on PCWs we're competing well. We are kind of particularly focused on it, and so we'll be talking about it, I would say, more as we go forward.
When do you bring the pricing algorithm in?
We're a -- we'll be a little bit cagey, but it's -- I mean it's in -- it's I'm looking at the team doing it actually. I'm trying to get a signal. I mean, listen, it's not that far away, but the first thing we'll do is really just drip some policies on one comparison website into the market. So this is -- it's still in R&D mode, but we're excited about the opportunity. But it's -- it really probably starts moving the needles in the medium term of the plan, but we're still very excited about it because it could be quite big in the future.
Okay. So the next question comes from the line of Wajahat Rizvi calling from Deutsche Bank.
Waj from Deutsche Bank. I have 2 questions for you. So first is on risk mix. So you have been reducing risk mix consistently for a while now. And I think, going back to the full year presentation, you talked about steady footprint expansion, so I was just trying to gauge that, looking forward, would you be putting risk mix back on once your new pricing model is up and running? Or is there a fundamental reason why you are reducing your risk mix on the Motor book? Secondly, can you provide more color on the market dynamics since the Civil Liability Bill announcement came out? Are you still seeing a rational pricing environment in the market?
Yes, good questions. So on risk mix, it's kind of the maths that reduced our risk footprint. As we think -- scientifically priced, the Ogden impact, that has made us less competitive for young drivers. So it's not our desire to reduce young drivers. It's just maths have driven it. And you're right. Net, we would like to see over time we've -- that's we will have an appetite to write that sort of business. But Waj, you're right. When it's -- when the computer says yes, do it. So it's we're not constraining anything. And yes, we do have some initiatives on Home and Motor to start pushing that out. So it'd be very favorable, right? It'd be very helpful in this sort of frozen -- in this pricing environment and claims environment to be pushing that out, but we obviously won't -- we won't drop our value obsession in order to do that. So it would be nice to see it happen, but it'll only happen when the computer says it should. And...
Makes sense.
Yes. And I think in the -- on the pricing environment we're saying it has been rational. Obviously, the market has got to make an assessment of Ogden. Albeit it's once a year, you need to make a decision when you see the reinsurance prices, but on the whiplash reform we have to make an assessment of likelihood of it happening, timing of it happening, impact of it happening. And we have to start kind of -- we obviously have weightings of the three of those. And then as you approach next April, it's obviously an increasing part of your calculation. So today, it's only a month of the premium that we need to get it right, and then it'll be -- it'll grow. So I mean we are -- I'm saying our majority bet is that it will happen, and we hope it'll happen in April. There's lots to get done by April. There's a portal to build and tests to make sure it works. And then obviously the impact depends on the exact wording of the bill and, of course, how consumers and lawyers respond and adapt what they do. So there's a bit of unknowns in all of it. What we're saying is, as we see it today, the existing claims environment that we're seeing and the future anticipation create a claims level that we think is supporting current pricing in the market. So that's -- that all goes into this use of the word rational. We will -- assuming it stays rational, we'll be doing what we're doing. If it goes irrational, we will keep our value focus very firmly on, and that will give us more challenge on the expense ratio and expenses. And that's a challenge historically we met.
Okay, so we have no further questions in the queue. [Operator Instructions] Okay, so we just had another question come through. And so it's from Greig Paterson from KBW.
Just a quick -- maybe just interested in updates on the retail IP platform, where we are, timing et cetera. Is it growing well? Are we going to have another right down at the half year?
So I'd be astonished and disappointed if we did. And so I don't expect that, no. I think on track, on plan, working hard, lots of people doing lots of work. Pleased with progress, on track.
Okay. And the next question comes from the line of [ Tom O'Mahony ].
I've got three here. The first one, just on the normalization of margins in Motor, can you just confirm that, that comment relates to the accident year rather than any reference to prior year? The second, just on the Rescue and other personal lines item, I just wanted to sort of understand what's really driving the sort of the long-term decline in partnership, Rescue. And also just to hear if you have any comments on the direction of travel in the other sort of non-Rescue components of that, any movements of note in that line. And then thirdly, just a sort of a detailed question: In a normal year, what proportion of your weather budget do you normally expect to use up in Q1? Clearly it's a big quarter for weather, but just is it half of the budget, or is it more?
Yes. So first question, yes. So Rescue is, last time, at the full year, we talked about kind of 3 channels. And we talked about partnerships. And the role partnerships have for us in Rescue, is purely volumes. It's very, very marginally priced, so we don't really do it for profit. We do it because having more drivers means we can have more vans. And we can be in the highlands, and we can be in even more motorways more quickly. So it's not that meaningful, that reduction. It's largely driven by the reduction in packaged accounts volumes, where it's a feature of packaged account. So that's that. I mean -- elsewhere, I mean, there are some good businesses tucked in there. I mean we -- at some stage, we'll come and talk to you about pets. So I was there on the pet business yesterday. We've got an opportunity in pets. There are some gems within that, but we'll -- that's forthcoming attractions, I would say. We'll come talk to you about that. Penny, on the weather?
Yes, on the weather, I mean, we don't -- we allocate the load, but we don't really think about it in those terms. We're in the business of kind of helping people through the big issues when they have them. We just don't know when those spikes will occur, so we don't have a particular view on how we spread it across the year. It's academic. We load in the first and the fourth quarter slightly, but it's not, I would say, particularly meaningful. We had 2 very benign years; last year, where we took [ much lower ] weather losses. So just this -- how these quarters turn.
Okay, so we currently have no further questions, so I'll hand you back to your host to conclude today's conference.
Well, terrific, guys. Well, so we'd -- at some stage, feedback on our new, shorter format will be appreciated. I hope you like the new, shorter call. So hopefully, that's met your needs, and hopefully, you got a good understanding of how we're moving ahead. We can't affect the weather. We can't affect the Motor cycle, but everything else, within our control. I think we're doing well and to plan.So thank you very much for your time, and speak to you again soon.
Thank you for joining today's call. You may now disconnect your handsets.