Progressive Corp.'s (PGR) first-quarter net income fell 3% on
additional securities losses while premiums rose modestly.
Consumer efforts to cut costs are causing some bleeding at
insurance companies, with motorists in desperate financial straits
even dropping auto insurance altogether - an illegal act in most
states.
The company reported net income of $232.5 million, down from
$239.4 million a year earlier. Earnings per share remained flat at
35 cents.
The latest quarter included pretax net realized securities
losses of $73.4 million, compared with year-earlier gains of $32.2
million. Progressive, like insurers of many stripes, has reported
securities losses in recent quarters amid the slumping stock
market.
Analysts surveyed by Thomson Reuters had projected earnings of
42 cents a share.
Net premiums rose 1% to $3.52 billion while the combined ratio,
a measure of how much of premiums were paid out in claims, fell to
89.5% from 94.6%.
Total auto policies in effect were up 3% from a year earlier in
March to 7.3 million, while non-auto policies were up 7%.
Shares were recently up 8 cents at $14.53. The stock is down 16%
the past year.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com