NU Online News Service, Aug. 12, 11:08 a.m.EDT

Auto insurer Progressive Corp. says its second-quarter netincome rose 16 percent to $245.2 million as net premiums writtenincreased 3 percent during the same time.

For June, Progressive reports an increase of 8 percent inpolicies-in-force from direct business and a 3 percent increasefrom agency-driven business.

The Mayfield Village, Ohio-based company says it experienced$125 million in catastrophe losses from spring storms during thesecond quarter, compared to $47 million in catastrophe losses ayear ago during the second quarter.

For the month of June, which contributed $23 million incatastrophe losses to the overall total, the states with thelargest losses were Texas, Kansas and Ohio. These states accountedfor about half of the monthly catastrophe losses, Progressivesays.

During a conference call to discuss earnings, Glenn Renwick,president and CEO, says Progressive's advertising campaign,centered on its Snapshot product, is allowing Progressive to “ownthat space.”

Snapshot is Progressive's pay-as-you-go telematics program. Renwick says Progressive has done somebranding work and has a “couple of new ads that have yet toair.”

The take-up rate for Snapshot in the direct channel is strong,and the agency distribution channel is “starting to accept theconcept and get certified.” About 50 percent of agents arecertified to use it.

Profitability for the product—loss ratios and targets—“seem tobe in line without expectations,” he adds.

Renwick says Progressive is seeing “significant return togrowth” in Florida and New Jersey—two states with no-faultpersonal-injury protection auto-insurance systems.

In New York, another PIP state, Progressive does not “have thegrowth that we would love to enjoy there,” Renwick continues. “Wecertainly have respect for GEICO in New York. They've got a greatposition there.”