Progressive April Profits More than Double Compared with Last Year

A financial report released by Progressive last week shows that the insurer managed to increase April profits by 128 percent between this year and last year, with April 2013 profits coming in at $139.5 million.

The monthly financials got a huge boost from significant increases in both premiums and returns on securities, which overshadowed a jump in losses and underwriting expenses.

Earned premiums were up $111 million (6 percent) from April 2012 and reached a record high last month: $1.64 billion. The previous record for monthly earned premiums was $1.59 billion, in January 2013.

The April 2013 numbers were also buoyed by a much better performance on the company’s investments in securities. Last April, the company actually lost $7.9 million on securities, but it managed to see a $46.2 million return on securities this April.

The improved results would’ve been even better if it weren’t for a $40.6 million (3 percent) increase in losses and a $32.1 million (17 percent) increase in underwriting expenses compared with last year.

Progressive has seen impressive growth so far this year. When comparing the first four months of 2013 with the first four months of 2012, total earned premiums are up 8 percent and profits are up 41 percent. That’s despite a 7 percent increase in losses.

New data from the National Association of Insurance Commissioners shows that Progressive has made impressive strides over the past four years. The company now controls about 8.3 percent of the personal auto insurance market, which is a result of its increasing written premiums by nearly 18 percent between 2009 and 2012.

To read about the experiences of current and former Progressive policyholders, readers can find user-submitted Progressive auto insurance reviews online.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

No comments yet.

Comment on this article