NU Online News Service, June 16, 1:44 p.m. EDT
Despite reporting catastrophe losses that doubled over last year, Progressive says its May net income increased 68 percent over the same period last year.
The Mayfield Village, Ohio-based auto insurer reported net income for the month of May grew close to $30 million to $74 million.
The company reported net premiums earned rose 3 percent, or $36 million, to $1.14 billion. The results were also helped by a more than 400 percent increase in realized gains on securities rising more than $100 million to $124 million.
Catastrophe losses during May amounted to $48 million, or 4.2 points on the combined ratio, compared to $27 million, or 2.4 points for last year.
Progressive says the states with the largest exposures are Texas, Ohio, Missouri and Minnesota. Those four states accounted for more than half of the catastrophe losses the company suffered last month.
On a quarter-to-date basis, Progressive says it has incurred approximately $102 million, or 4 points of catastrophe losses. This compares to $34 million, or 1.4 points for the same period last year.
The combined ratio for the month declined 2.5 points to 93.1.
Overall, policies in force grew during the month for both its agency and direct auto business. Agency business grew 3 percent, or 150 policies to 4.6 million policies. Direct business grew 8 percent, or 289,000 policies to 3.8 million.
Total personal lines business was up 5 percent, or 614,000 policies to more than 12 million. Commercial auto saw a slight drop of 2 percent, or 9,000 policies, to 510,300.
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