NU Online News Service, Nov. 8, 3:03 p.m.EST

Progressive's chief executive says the company doesn't have alot of data, but it knows it has something “very appealing” in itsSnapshot product.

During a conference call to discuss third-quarter earnings,Chief Executive Officer Glenn Renwick told analysts the take-uprate for the Snapshot product is “very good” and the “overallretention is up meaningfully,” exceeding the auto insurer'sestimates.

Using a small device that drivers plug into a car's diagnosticsystem, Snapshot tracks driver mileage, time of day and hardbraking practices. After 6 months, the driver returns the device toProgressive to see if the data earns the driver discounts.

Many have received discounts, Renwick reported.

In an increasingly rate-positive insurance environment, Renwicksaid the product could have more importance as a tool to allowconsumers to “control their own rate level.”

The insurer distributes its insurance products directly andthrough agents, who are competing with each other to come up withthe best pitch for Snapshot, Renwick said.

Agency sales of Snapshot have lagged direct sales but Renwicksaid he hopes the product becomes a good thing for agents.

“I suspect it'll just take some time in the marketplace,” hesaid. “As it plays out, agents should be more willing to get onboard.”

The company's advertising has been effective in communicatingthe product to customers, and it is hoped that once there is awider acceptance, Snapshot will be easier for agents to sell toconsumers.

Agency business grew 2 percent during the third quarter thisyear compared to last year. Direct business grew 5 percent.

Third-quarter net income fell more than 40 percent to $150.7million compared to $261.1 million a year ago during the samequarter.

Progressive reported a net realized loss on securitiesinvestments of $52.6 million during the third quarter.

The company incurred about $63 million in third-quartercatastrophe losses, including about $20 million from HurricaneIrene.

Net premiums written and policies-in-force grew 4 percent and 5percent, respectively, compared to the third quarter in 2010.