Progressive Sees Slight Dip in February Profits

Progressive Insurance saw a nice bump in February revenues compared with last year, but higher loss expenses cut into those revenues, leaving the company with a 5.7 percent drop in monthly profits, according to a monthly financial document released Wednesday.

Progressive made $100.2 million in profits this February, compared with $106.3 million during the same period last year.

The company saw a nice 8 percent increase in premiums year over year, leaving it with an additional $97.4 million in premium revenue for the month. But February expenses outpaced the increases in revenues, jumping $115.3 million.

The bump in revenues was mostly due to a $90.9 million increase in loss-related expenses and a $23.6 million increase in underwriting expenses.

The February results were a return to normal after the huge year-over-year spike in profits that the company saw in January, when the direct-to-consumer insurer made 79 percent higher profits compared with January 2012. That jump was largely the result of a $126 million increase in premiums coupled with a $30.5 million—or 256 percent—increase in security investment gains.

In February, security investment gains actually dropped by about $9.9 million, or 33 percent, compared with last year.

According to new data from the National Association of Insurance Commissioners, Progressive increased its overall share of the private passenger auto insurance market between April 2012 and March 2013, going from a 7.9 percent share of total written premiums to an 8.3 percent share.

Progressive is still the country’s fourth-largest private passenger auto insurer, trailing behind State Farm, Allstate and GEICO.

At market closing on Tuesday, Progressive’s stock value was up about 1.65 percent for the day.

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.

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