Progressive released its September results for the month and the quarter. The company reported a combined ratio of 90.0 for the month, compared with 100.4 a year earlier. Premiums, earnings, share count and policies in force are set out below.
Premiums Written and Earned Rise Against the Prior-Year Periods
In its news release, Progressive reported net premiums written of $7,255 million for September, compared with $7,128 million a year earlier, a change of 2 %. For the quarter, the figure was $22,301 million against $21,384 million, a change of 4 %.
Net premiums earned were $7,160 million in September against $6,827 million a year earlier, a change of 5 %. For the quarter, net premiums earned were $21,869 million against $20,849 million, a change of 5 %.
Combined Ratio Lower Than a Year Earlier for Month and Quarter
The September combined ratio was 90.0, compared with 100.4 a year earlier, a change of (10.4) pts. For the quarter, the combined ratio was 88.7 against 89.5, a change of (0.8) pts.
Net Income, Per-Share Earnings and Securities Results
Net income was $630 million in September against $305 million a year earlier, a change of 107 %. For the quarter, net income was $2,542 million against $2,615 million, a change of (3) %.
Per share available to common shareholders, the September figure was $1.08 against $0.52 a year earlier. For the quarter, the figure was $4.37 against $4.45.
Total pretax net realized gains (losses) on securities were $(231) million in September, compared with $138 million a year earlier. For the quarter, the figure was $(170) million against $295 million.
Average diluted equivalent common shares were 581.7 million in September against 588.2 million a year earlier, and 582.2 million for the quarter against 588.2 million.
Policies in Force Across Personal and Commercial Lines
The release also reports policies in force, in thousands, at the end of September against the same point a year earlier.
| Policies in force (thousands) | End of September | A year earlier | Change (percent) |
|---|---|---|---|
| Agency auto | 11,347 | 10,630 | 7 |
| Direct auto | 16,848 | 15,619 | 8 |
| Total Personal Lines | 39,237 | 36,880 | 6 |
| Commercial Lines | 1,252 | 1,198 | 5 |
| Total | 40,489 | 38,078 | 6 |
The Progressive describes the business in these terms: Progressive offers personal and commercial insurance throughout the United States. Our Personal Lines business writes insurance for personal vehicles (auto and special lines products) and personal property insurance for homeowners and renters.
Segment Figures for the Month
The segment table breaks out September by segment. Figures below are net premiums written in $ millions and ratios in the order shown in the source table.
| September | Agency vehicles | Direct vehicles | Property | Personal Lines total | Commercial Lines | Companywide |
|---|---|---|---|---|---|---|
| Net premiums written | 2,594 | 3,588 | 276 | 6,458 | 797 | 7,255 |
| Loss/LAE ratio | 69.4 | 70.5 | 33.8 | 68.5 | 73.0 | 69.2 |
| Expense ratio | 19.2 | 22.2 | 29.5 | 21.3 | 17.8 | 20.8 |
| Combined ratio | 88.6 | 92.7 | 63.3 | 89.8 | 90.8 | 90.0 |
The Property segment combined ratio was 63.3 and the Commercial Lines combined ratio was 90.8 in the segment table. The companywide figure in that table was 90.0.
Year-to-Date Results in the Release
The year-to-date statements show year-to-date net premiums written of $67,019 million, compared with $63,666 million a year earlier. Year-to-date net income was $8,671 million against $8,357 million.
For the year to date, the companywide combined ratio was 87.5. By segment, the year-to-date combined ratio was 85.1 for Agency vehicles, 89.6 for Direct vehicles, 76.3 for Property, 87.2 for Personal Lines total and 89.0 for Commercial Lines.
On the results, the release states: The company has no additional commentary regarding September’s results.
InsuraBeat has separate coverage of Progressive’s August results.
InsuraBeat has separate coverage of Allstate’s August catastrophe losses.
