Progressive August Net Income Skyrockets

The late-summer month of August was good to Progressive Corp.

The Mayfield Village, Ohio-based auto insurer saw August net income shoot up to $141.5 million compared to $22.5 million a year ago during the same month.

Net income for the year is down about 15 percent to $576.7 million.

Results in August a year ago were affected by $37 million in catastrophe losses, mostly attributable to Hurricane Irene.

This year's August also saw a hurricane landfall—Isaac in Louisiana—but catastrophe losses incurred in August were about $17 million lower than the same month last year and about $8 million less than catastrophe losses sustained in July, mostly from storms in Ohio, says Progressive.

Catastrophe losses are down year-to-date, the insurer adds. Progressive records about $170 million in catastrophe losses this year compared to $195 million at this point last year.

Results for the month of August were also aided by a net realized gain on securities of $141.9 million from the liquidation of about $580 million in the company's common stock portfolio.

Agency-driven and direct-driven policies in force for August were up 5 percent and 6 percent, respectively. Net premiums written are up 7 percent compared to last year's August, to about $1.29 billion.