Auto insurance group Progressive Corp. (PGR) on Wednesday reported a profit for the month of April that more than doubled from last year, reflecting investment gains compared to investment losses last year. The company also recorded fewer catastrophe losses in the month compared to the prior-year period.
Mayfield Village, Ohio-based Progressive's net income for April was $139.5 million or $0.23 per share, up from $61.2 million or $0.10 per share in the year-ago period.
The latest quarter's results include pretax net realized gains on securities of $46.2 million, compared to pretax net realized losses of $7.9 million in the year-ago period.
Net premiums written in the month increased 7 percent to $1.78 billion from $1.67 billion in the same period last year. Net premiums earned also grew 7 percent to $1.64 billion from $1.53 billion in the prior-year period.
Combined ratio, or the amount of premiums paid as claims, declined 3.8 points from the year-ago period to 91.3 percent.
Progressive noted that during April, it incurred catastrophe losses of about $33 million, or 2.0 loss ratio points, primarily from storms in the South and Midwest. This compared to catastrophe losses of $46 million, or 3.0 loss ratio points, in the same period last year. Year to date, total catastrophe losses were about $79 million, or 1.4 points, compared to $62 million, or 1.2 points, in the year-ago period.
For April, the company's total personal lines policies in force increased 1 percent to 12.93 million. Of this, total personal auto policies grew 1 percent to 8.96 million, with flat agency auto policies and 2 percent growth in direct auto policies. Total special lines policies for the month grew 2 percent from last year to 3.97 million. Total commercial auto policies in the month rose 1 percent to 523 thousand.
For the year-to-date period, Progressive's net income rose to $448.1 million or $0.74 per share from $318.8 million or $0.52 per share in the prior year. Total revenues for the period increased 8 percent to $6.19 billion from $5.71 billion in the same period last year.
Net premiums written rose 7 percent from the year-ago period to $6.23 billion, while net premiums earned increased 8 percent to $5.82 billion.
PGR closed Tuesday's trading at $26.09, up $0.39 on a volume of 3.81 million shares.
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