Tuesday, The Progressive Corp. (PGR) reported a decline in net income for October 2009, despite a growith in net premium written and net premium earned.
The insurance provider's net income for October 2009 declined 26% to $106.7 million or $0.16 per share from $145.0 million or $0.22 per share in the year-ago period.
Net premium written for the month increased 3% to $1.30 billion from $1.25 billion in the year ago period.
Net premium earned for the month increased 1% to $1.32 billion from $1.316 billion in the prior year period. Investment income during the month was $40.2 million.
Total pretax net realized gains on securities including net impairment losses declined 77% to $20.0 million from $88.4 million year-ago.
Progressive Corporation's combined ratio fell 1.6 pts to 91.6 points from 93.2 points in the year-ago period. Total expenses for the month was $1,231.2 million.
The company said that at October 31, 18% of its portfolio was invested in Group I securities, which include common equities, redeemable and nonredeemable preferred stocks, and non-investment-grade and non-rated fixed-maturity securities. In early November 2009, the company reallocated approximately $300 million of its securities into common equities, indicating allocation to Group I securities remains within its target of between 0% and 25% of the total portfolio.
Year-to-date net income was $859.2 million or $1.28 per share, compared with a loss of $84.3 million or $0.13 per share year-ago.
The net premiums earned increased 1% to $11.62 billion from $11.53 billion in the year-ago period. However, investment income declined 23% to $416.4 million from $539.1 million in the prior year period.
Year-to-date total-other-than-temporary impairment losses were $74.6 million and net impairment losses recognized in earnings was $38.4 million.
Year-to-date total revenues increased 12% to $12,054 million from $10,789.1 million year-ago.
Total year-to-date expenses declined 2% to $10,791.6 million from $11,014.1 million year-ago.
PGR closed Tuesday's trade on the New York Stock Exchange at $16.77, up $0.12 or 0.72%.
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