Progressive’s Slumping Dec. Profits Doesn’t Dampen 4Q Results

Progressive logoCar insurance company Progressive reported this week that its December profits slumped by 5 percent while its fourth-quarter profits jumped by 20 percent compared to 2012.

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.

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

About Charles Nguyen
Charles Nguyen is an enterprising journalist who reported for Patch.com and the Desert Dispatch and was the editor in chief of the Guardian (the twice-weekly newspaper at the University of California, San Diego) before coming to Online Auto Insurance News.

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