Recently released financial results from Allstate and Progressive show profits increased at both car insurers, the former seeing fourth-quarter gains and the latter seeing monthly gains.
Progressive tallied $155.8 million in profits for January 2014, compared to $134.2 million for January 2013, signifying a 16 percent increase.
Progressive held 9 million total personal auto policies in force last month, 4 percent more than the total 8.8 million in January 2013.
The direct-to-consumer company’s largest jump in policy figures was in its direct auto segment, which saw about 300,000 more policies (a 6 percent increase) when comparing January 2013 with January 2014.
Last month, Progressive reported 2013 fourth-quarter results that showed a 20 percent increase in profits compared with the same period in 2012. The car insurer also showed 6 percent growth in direct auto policies in force in December 2013 compared with December 2012.
In 4Q, Allstate’s ‘Significantly Lower’ Disaster Losses Boost Profits
Allstate, which publishes its financial results quarterly, released its fourth-quarter figures last week.
Allstate showed $810 million in profits in the fourth quarter of 2013, a 106 percent increase from profits reported in the fourth quarter of 2012.
The gain was helped by “significantly lower catastrophe losses,” according to Allstate, which saw $117 million in catastrophe losses for the fourth quarter in 2013 compared with $1.1 billion during the same period in 2012.
The number of Allstate’s auto policies in force was 1.5 percent higher in the fourth quarter of 2013 compared to the fourth quarter of 2012. The increase was “driven by growth in new business and higher retention,” Allstate said.
Esurance’s $334 million in earned premiums during the fourth quarter was an increase to the $256 million during the previous-year period. Esurance grew “rapidly” in the fourth quarter compared to the same period in 2012, Allstate said, with increases of 23 percent and 26.7 percent in premiums and policies, respectively.
But growth in premiums and policy numbers at Allstate’s direct-to-consumer car insurance brand hasn’t translated to “long-term profitability” yet that the insurer said would come with adjustments to “pricing and underwriting.”