Progressive Corp. says fourth-quarter net income dropped 3 percent, or by $8 million, to $249 million compared to the prior year's fourth quarter.

The quarter's combined ratio rose 1.6 points to 94.6.

However, net premiums rose 9 percent in the quarter, or by $301 million, to $3.84 billion. Policies in force rose in all segments for the month of December with total personal lines rising 4 percent to 12.7 million.

For December, net income rose 25 percent, or $19 million, to $95 million. Net premiums written rose 12 percent, or $126 million, to $1.14 million. The combined ratio for the month increased 2.3 points to 93.5.

The auto insurer was hit with $15 million in catastrophe losses from Superstorm Sandy in December.

The total catastrophe loss for the fourth quarter stands at $103 million, or 2.5 points.

Total catastrophe losses for the year were approximately $279 million, or 1.7 points, compared to $212 million, or 1.4 points, last year, Progressive says.

For the year, net income is down 11 percent, or $113 million, to $902 million. Revenues grew 8 percent, or $1.29 billion, to $16.8 billion.

Special Reports /

Progressive Q4 Net Income Down 3%; $15M Sandy Cat Loss

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