NU Online News Service, June 13, 3:02 p.m. EDT
Auto-insurer Progressive Corp. says May net income fell 41 percent on a drop in total comprehensive income.
Net income was $43.9 million in May, compared to $74.1 million during the same month a year ago.
According to the Mayfield Village, Ohio-based insurer, total comprehensive income—which includes net unrealized losses on securities—fell $74 million from a year ago.
To date, Progressive reports a 34.6 percent drop in net income to $362.7 million. Net investment income is down about 7 percent to $188.9 million so far this year.
Thus far in 2012, Progressive reports $65.9 million in unfavorable prior accident-year development. The company logged $2.2 million in unfavorable development in May.
In April Progressive reported a 48 percent drop in net income.
The company's underlying business appears strong as net premiums written for May rose 7 percent compared to May 2011.
The company's combined ratio increased 4.4 points to 97.5 during that time period.
Catastrophe losses in May were about $24 million, down from $48 million in catastrophe losses incurred during the month last year. Oklahoma, Texas, South Dakota and Kentucky accounted for 75 percent of the total catastrophe losses, Progressive says.
The agency and direct distribution segments experienced growth in May. Policies-in-force from agencies rose 6 percent and direct policies-in-force were up 7 percent.
Total personal lines policies-in-force grew 6 percent. Total commercial auto rose 2 percent.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.