Progressive Reports 47 Percent Jump in Profits for October

progressive-financials-oct-2013Progressive reported a $36 million gain in income for October compared to the year-before period, a stellar 47 percent increase that overcame shrinkage in investments and higher expenses.

Last month’s total expenses were $34 million, or 2 percent, higher compared to October 2012, according to the Wednesday report, while gains from investments dropped $19 million, or 80 percent.

Investment losses were also a problem for Progressive in the third quarter, when the car insurer reported that quarterly profits had shrunk 16 percent compared to the year-before period. Much of the profit drop was due to quarterly investment returns that were 84 percent lower in the third quarter compared to the same quarter in 2012.

But neither growth in expenses nor shrinkage in investments could drag down profits for October.

The jump in monthly profits is partly due to increased premiums. Progressive reported a 5 percent increase in premiums, going from $1.58 billion in October 2012 to $1.67 billion last month.

The insurer was also helped by a $17 million drop in loss and loss adjustment expenses compared with October 2012.

The coverage provider saw a 2 percent monthly increase in the number of personal auto insurance policies compared to last October. Total personal auto policies went from 8.8 billion in October 2012 to 9 billion this October.

Auto policies sold directly saw the biggest growth among all policy-related categories, increasing 4 percent from 4.01 billion to 4.19 billion.

Auto policy figures have typically showed steady growth for Progressive, which also reported monthly increases in total personal auto policies in force for September and August.

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