Progressive Corp. (PGR) returned to the black in the third
quarter after being hurt last year by $1.37 billion of investment
losses.
The auto and home insurance company said claims costs were also
lower, as earnings handily topped analysts' expectations. Shares
rose 5.8% premarket to $17.40.
The results come as insurers have been battling for market share
amid an ever-competitive environment in which consumers are more
interested in price comparisons.
Progressive's earnings were $269.9 million, or 40 cents a share,
compared with a year-earlier loss of $684.2 million, or $1.03 a
share. Net premiums written rose 1.2% to $3.55 billion.
The mean estimates of analysts surveyed by Thomson Reuters were
earnings of 33 cents and net premiums written of $3.56 billion.
The combined ratio, a measure of premiums received to claims
paid, fell to 92.7% from 95.1%.
The number of auto policies in effect was up 4.6% at 7.4 million
while other consumer policies, mainly homeowners, climbed 2.7% to
3.5 million.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com