Auto insurance company Progressive Corp. (PGR), Thursday, reported a profit for the month of August, compared to a year-ago loss, as both net premium written and net premium earned improved year on year.
The Mayfield Village, Ohio-based holding company posted a net income of $55 million or $0.08 per share for the month, compared with a net loss of $135.2 million or $0.20 per share in August last year.
Net premiums earned increased 1% to $1.058 billion from $1.050 billion in August 2008. Net premiums written were up 4% to $1.149 billion from $1.103 billion a year ago.
Combined ratio for the month of August was 95.5%, up 1.2 points from 94.3% last year.
Progressive said that Direct - Auto policies in force increased 12% to 3.07 million from 2.74 million for the month of August in 2008.
Total Personal Lines policies in force grew 4% to 10.85 million from 10.49 million, while total Commercial Auto policies in force decreased 5% to 526.6 thousand from 554.9 thousand for August last year.
Total pretax net realized gains on securities were $5.6 million compared with loss of $317.5 million for the same period last year.
Year-to-date, net income increased to $652.5 million or $0.97 per share from $401.5 million or $0.59 per share in 2008.
Net premiums written increased to $9.566 billion from $9.488 billion, while net premiums earned increased to $9.231 billion from $9.165 billion in the year-ago period. Year-to-date revenues increased 3% to $9.548 billion from $9.261 billion last year.
Progressive said it is scheduled to release its September results on October 14.
PGR is currently trading at $16.58 on the NYSE, down 0.30 or 1.75%.
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