December profits dropped by more than $5 million between 2012 and 2013, going from $95 million down to $90 million.
Progressive’s December revenues surged $96 million, most of which was attributed to a $73.7 million increase in premiums. But those gains were mostly canceled out by higher loss and underwriting costs. Loss costs jumped $89 million (or 9.6 percent), and underwriting expenses grew by $30.5 million (or 21.5 percent).
Quarterly profits increased by more than $50 million between 2012 and 2013, going from around $249 million to $300 million .
Progressive’s investment gains saw a similar performance of strong quarterly but weak monthly figures: December investment gains dropped by 5 percent compared with 2012 while fourth-quarter investment gains increased 24 percent compared to the year-ago period.
The insurer’s earned premiums increased 6 percent for both the quarter and month.
The insurer’s total revenue also increased at the same rate for the month and quarter, at 7 percent.
Expenses for Progressive grew in December by 10 percent (or $122 million) and for the quarter by 6 percent (or $264 million).
In December, Progressive increased the number of policies it has in several categories, with a 6 percent increase in direct auto policies and 1 percent increase in agency auto policies. Progressive reported 9.07 million total personal auto policies in December, 1 percent more than the previous-year period.
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