Mayfield Village, Ohio-based Progressive said its second-quarter net income was driven down 24 percent by weather-related catastrophe losses.
In both June and second-quarter 2008, the company's combined ratio increased roughly two points from weather-related catastrophe losses–almost three times greater than the same periods last year, the company announced today.
Net income for the quarter dropped to $215.5 million from $283.7 million for the period last year.
The insurer's second-quarter combined ratio deteriorated 1.3 points to 93.6.
Net premiums written for the quarter were off 1 percent at $3.51 billion compared with $3.56 billion last year.
For June, the combined ratio was 97, compared with 95.7 for that month in 2007, while net income declined 58 percent to $27.3 million from $65.4 million in June 2007. Both catastrophe and investment losses contributed to the decline for the month, Progressive said.
In June, Progressive said there were seasonal losses for its special lines products, including motorcycles, boats and recreational vehicles, which contributed an incremental two points to the personal lines business combined ratio.
Also pushing down net income was $53 million in net realized gains (losses) on securities for June, including $40.8 million of write downs on securities determined to have had "other-than-temporary" declines in market value as of June 30.
The write downs included $25.5 million in a preferred stock security, $10.9 million of fixed-maturity asset-backed securities and $4.4 million of common equities.
Progressive said revenues for the year to date are down 3 percent having dropped to $7 billion from $7.2 billion.
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