Progressive Reports July Net Income Down 1%

Auto insurer Progressive reported July net income was down about 1 percent from the prior year to $113.2 million.

The Mayfield Village, Ohio-based company said net premiums written and net premiums earned each increased 4 percent compared with the same month last year.

Net premiums written for July were $1.42 billion. Net premiums earned came in at about $1.38 billion for July, Progressive said.

Personal lines net premiums written and earned were reduced 1 percent primarily in the agency channel due to the "recognition of additional ceded premiums on our motorcycle policies to a state reinsurance facility," Progressive said.

Boosting July results was a $6.4 million gain from the extinguishment of some debt due in 2067. Total pretax net gain on securities was $20.8 million, a 19 percent decrease compared with results in July a year ago.

Direct auto insurance policies-in-force were up 15 percent in July over the prior year. Agency auto was up 3 percent, Progressive said.

The combined ratio for July was 91.9 compared to 91 last in July 2009.

Progressive said net income last month was down 29 percent compared to the prior year. For the first six months, net income was up 5 percent to $508 million.

To date this year, net income is $620.7 million, a 4 percent increase over net income of $597.5 million at this point a year ago.