Progressive’s monthly profit falls despite continued premium growth

Progressive ($PGR) reported unaudited monthly net income of approximately $951 million, down 22% from $1.22 billion a year earlier. Earnings per share fell to $1.63 from $2.07. Net premiums written nevertheless increased 6% to around $7.61 billion, while earned premiums rose 5% to $7.35 billion, showing continued growth in the underlying book of business.

The combined ratio deteriorated to 89.3 from 83.1, indicating that claims and expenses consumed a larger share of earned premiums, although the ratio remained below 100. Total policies in force increased 7% to approximately 40.5 million. The update therefore combines expanding customer and premium volumes with weaker profitability; a single month should not be presented as a newly issued full-year forecast.

Sources:

• Progressive — monthly unaudited results, company release reprint