Auto insurer Progressive reported June net income dropped 29 percent from the prior year on the poor performance of its investment portfolio.
The Mayfield Village, Ohio-based insurer said net income dropped $23 million to $57 million compared to June 2009.
The company reported a loss of more than $32 million on its investment portfolio for June, compared to a gain of $14 million for the prior year.
On the positive side, Progressive said net premium written for the month rose 6 percent, or $66 million, to $1.13 billion. The company's combined ratio also improved 2 points to 92.3 in June over the prior year.
The company reported growth in policies in all segments of its business except commercial auto, which declined 2 percent, or 11,000, to 520,000.
For the 2010 second quarter, net income dropped 15 percent, or $38 million, to $212 million, with a $40 million loss in its investment portfolio, compared to gain of $16 million for the prior year.
Net premiums written rose 5 percent, or $179 million, to $3.71 billion.
The combined ratio for the quarter rose 0.1 point to 92.7 versus the same period for the prior year.
For the first six months of the year, Progressive said net income is up 5 percent, or $25 million, to $508 million.
Net written premiums increased by 6 percent, or $434 million, to $7.49 billion, while total revenues rose 4 percent, or $301 million, to $7.35 billion.
The company said that it incurred $2 million in expenses related to its purchase of up to $350 million of its $1 billion of subordinate notes due in 2067.
For July, Progressive said it will record a net gain of $8.5 million due to the extinguishment of its debt for a total gain of $6.5 million. The company will reclassify $5.8 million that is also related to the debt extinguishment.
