Progressive Corp. reported the insurer's net income fell 27 percent over the first five months of this year, but dropped only 3 percent for the month of May as the firm's Internet business soared.
The auto insurance underwriter reported net income over the first five months stood at $428 million, down $154 million from the same period last year. On a period-to-period basis for the month of May, net income dropped $2.3 million to $79 million.
The company's combined ratio rose 0.9 points over the period to 93.3.
During an investors relations meeting held today, Glenn M. Renwick, president and chief executive officer for the Mayfield Village, Ohio-based company, said the company is adjusting rates on a daily basis, responding to changing underwriting needs and dealing with the myriad of regulatory filings the company deals with.
He described a dynamic search for proper rate that he termed a bet on the future.
The company, Mr. Renwick said, is seeing increasing growth in its Internet business as customers are becoming increasingly attuned to the ease of use of the Internet.
The company reported net premiums written dropped 3 percent on a year-to-year basis to $5.95 billion, with agency business off 5 percent while direct writing increased 1 percent.
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