NU Online News Service, Jan. 20, 3:48 p.m. EST

Progressive reported a profit for fourth quarter 2009 as net premiums earned increased 27 percent for the last month of the year and the company's combined ratio dropped eight points.

The Mayfield Village, Ohio--based auto insurer included a report for the month of December, which had net income of $118.3 million compared to a net loss of $123.2 million in 2008. Earnings per share stood at 18 cents for the period.

Net premiums earned rose 27 percent, or $279 million, to $1.33 billion. Net premiums written rose 28 percent, or $250 million, to $1.2 billion.

During the month, the combined ratio decreased eight points to 90.9.

For the entire fourth quarter, the company reported net income grew 91 percent, or $146 million, to $305 million.

Earnings per share rose from 24 cents in 2008 to 46 cents for the period.

Net premiums earned rose 9 percent, or $305 million, to $3.72 million; while the company reported net premiums written rose 10 percent, or $306 million, to $3.4 billion.

Results were affected by an extra week counted in December, the company said. Excluding that extra week, Progressive said net premiums written would have grown by 2 percent for both the month and quarter and net premiums earned would have increased 1 percent for both periods.

On a year to year basis, Progressive reported total revenues increased 13 percent, or $1.72 billion, to $14.56 billion. Net income rose from a 2008 net loss of $70 million to net income of $1.06 billion. Earnings per share rose from a 10 cent loss in 2008 to $1.57 a share.

Progressive said its direct auto insurance business, in terms of policies in force, increased 13 percent in December from the same period during the previous year while agency auto was virtually unchanged. Total personal lines business increased 5 percent for the month, while commercial auto was down 5 percent.

Progressive also said it will pay a quarterly dividend of 16.13 cents a share on Feb. 5 to shareholders of record as of Jan. 27.

The company will hold a conference call on March 3, to discuss its annual results.

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