NU Online News Service, May 16, 12:45 p.m. EDT
Mayfield Village, Ohio-based auto-insurer Progressive reports net income for the month of April dropped 48 percent as catastrophes and a bond repurchase affected earnings.
The insurer says net income was down by $57 million, to $61 million, compared to the same period as last year.
Net premiums earned rose 7 percent, or $95 million, to $1.53 billion.
The company's combined ratio rose 3.7 points to 95.1 for the month.
During the month, Progressive repurchased an $18 million bond due to mature in 2067.
The company reports catastrophe losses amounted to about $46 million, or 3 points on the combined ratio. This compares to catastrophe losses last year of $55 million, or 3.8 points to the combined ratio last year.
Progressive says Texas accounted for close to half of the month's catastrophe losses and Missouri accounted for 20 percent. Illinois and Kentucky each contributed about 10 percent to April's losses, the company says.
All segments of the company showed growth in the number of policies in force.
Independent-agency auto grew 6 percent, or 254,000 policies, to 4.85 million. Direct auto grew 7 percent, or 266,000 policies, to more than 4 million.
Total personal lines grew 6 percent, or 719,000, to 12.77 million. Total commercial auto rose 2 percent, or 11,000, to 520,000.
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