Auto insurance group Progressive Corp. (PGR) reported Thursday a 14 percent decline in profit for the fourth quarter, reflecting lower investment gains from securities, partially offset by premium revenue growth. The company reported a decline in profit in the month of December, due to losses on securities compared to a gain last year.
The Mayfield Village, Ohio-based company reported net income of $256.7 million or $0.42 per share for the fourth quarter, lower than $299.2 million or $0.45 per share in the prior-year quarter.
The results for the latest quarter include pretax net realized gains on securities of $28.5 million, 62 percent lower than net realized gains of $77.9 million a year ago.
On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.35 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Net premiums written for the quarter grew 8 percent from the year-ago quarter to $3.54 billion, and net premiums earned totaled $3.78 billion, up 4 percent from the prior-year period.
Eleven Wall Street analysts had a consensus revenue estimate of $3.47 million for the quarter.
Combined ratio, or amount of premiums paid as claims for the quarter, was 93.0 percent, down 0.1 percentage points from a year ago.
For the month of December, Progressive posted net income of $76.3 million or $0.12 per share, down from $112.8 million or $0.17 per share in the same period last year. Comprehensive income for the month was $112.2 million or $0.18 per share.
Total revenues for the month of December was $1.18 billion. Net premiums written for the month were up 9 percent from the prior-ago period to $1.01 billion, and net premiums earned grew 6 percent to $1.16 billion. Combined ratio for December edged down 1.0 percentage points from the year-ago period to 91.2 percent.
For December, the company's total personal lines policies in force increased 5 percent to 12.28 million. Of this, total personal auto policies grew 5 percent to 8.49 million, with a 4 percent rise in Agency - Auto policies and 6 percent growth in Direct - Auto policies. Total special lines policies for the month grew 5 percent from last year to 3.79 million.
Meanwhile, total commercial auto policies in the month remained flat with last year at 509,100.
For fiscal 2011, the company reported net income of $1.02 billion or $1.59 per share, lower than $1.07 billion or $1.61 per share in the previous year.
Comprehensive income for the year was $924.3 million or $1.45 per share, down from $1.40 billion or $2.11 per share last year. Analysts expected the company to report earnings of $1.46 per share for fiscal 2011.
Total revenue for the full year grew 4 percent to $15.51 billion from $14.96 billion in the prior year. Street was looking for full-year 2011 revenues of $15.08 billion. Net premiums written in the year increased 5 percent to $15.15 billion.
In Thursday's regular trading session, PGR is currently trading at $20.35, up $0.50 or 2.52% on a volume of 0.59 million shares.
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