NU Online News Service, July 12, 12:22 p.m. EDT
Catastrophe losses in June ran higher than the same month a year ago for Progressive Corp., driving June 2012 net income down 75 percent compared to last year.
The Mayfield Village, Ohio-based automobile insurer says net income was $13.5 million in June, down close to $40 million.
The combined ratio rose 4.6 points for the month to 100.9 as catastrophe losses came in at $37 million, up close to 61 percent from last year's $23 million.
Total catastrophe losses for the second quarter of this year stood at $107 million and $123 million for the first six months of this year.
Catastrophe losses for 2012 so far are down when compared to 2011, when catastrophe losses were $125 million for the second quarter and $135 million for the first six months of the year.
Progressive says that, for June, 75 percent of the total incurred catastrophe losses came from Texas, Colorado, and Florida.
The company saw an increase in net premiums written of 7 percent in June to $1.24 billion.
On a quarterly basis, Progressive says net income is down 52 percent, or $127 million, to $119 million. Earnings per share fell from 38 cents to 19 cents. Net premiums increased 8 percent, or $292 million, to $4.13 billion.
For the first six months of this year, net income fell 38 percent, or $232 million, to $376 million. New premiums written were up 7 percent, or $555 million, to $8.3 billion.
Progressive says policy in force numbers for both its agency and direct auto lines business grew by 6 percent and 7 percent respectively.
The company says it will hold a conference call on its results on Aug. 3.
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