Progressive Corp. reported that net earnings fell 35 percent in May as net earned premiums declined.
May earnings fell to $81.6 million, or 11 cents a share, from $125.8 million, or 16 cents a share a year ago.
The Mayfield Village, Ohio-based car and home insurer said the May combined ratio was 93.3, up from 86.7 for the same period last year.
Net premiums earned were $1.08 billion, down from $1.1 billion a year earlier.
Morgan Stanley analyst William Wilt noted that premium growth has declined by about 3 percent for the past several months while adverse reserve development has been reported in four or five months of this year.
“In our view, Progressive competitors, including Geico and Allstate, harbor larger reserve redundancies which could shelter their underwriting margins from the affect of rising competition,” he said.
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