NU Online News Service, Oct. 14, 2:10 p.m. EDT
Auto insurer Progressive reported third quarter net income was down 3 percent and September net income was down 18 percent from the prior year.
The Mayfield Village, Ohio-based company said net income during the third quarter was $261.6 million compared with nearly $270 million last year during the same time.
Net income in September was $81.9 million compared with $100 million for the month in 2009.
Net premiums written and net premiums earned in September increased 11 percent and 5 percent compared with the same month last year.
Progressive said the results reflect challenges in reporting monthly results, having to do with the company's six-month renewal cycle.
"As previously disclosed, fiscal August 2010 included August 29, 30, and 31, which do not reflect any six-month renewal premiums because February only has 28 days," Progressive said. "That three-day period in which there are no renewals associated fell in fiscal September 2009. This had a favorable effect on the reported written premium growth rates for fiscal September 2010 and a negative effect for growth rates in August 2010, as compared to the same months in 2009."
Direct auto insurance policies-in-force were up 14 percent in September over the prior year. Agency auto was up 3 percent, Progressive said.
The company's combined ratio during the 2010 third quarter was steady at 92.9 compared with 92.7 a year ago.
Year-to-date net income is $769.1 million. Net income was $752.5 million at this time in 2009.
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