Progressive Reports Hurricane Harvey Linked to 90% of Total Catastrophe Losses in August

By Ezequiel Minaya 

Progressive Corp. swung to a loss in August, the company reported Tuesday, with Hurricane Harvey more than tripling the insurer's catastrophe losses in the period compared to last year.

Progressive said more than 90% of total catastrophe losses in August were linked to Harvey, the first substantial hurricane to hit Texas since Hurricane Ike struck the Gulf Coast in 2008.

Last month, the company sustained $254 million in catastrophe losses, up from about $75 million during August 2016. A vast majority of the losses were tied to Progressive's vehicle business, with only $26 million involving the property segment.

For the month, the company swung to a loss of $16.8 million, down from a profit of $49.3 million last year. Net premiums written during the month, meanwhile, rose 15.8% to $2.21 billion.

Hurricane Harvey pounded Texas last month with torrential rain, high winds and widespread flooding. The last Category 4 storm to hit Texas was Hurricane Carla in 1961, according to the National Weather Service.

While the insurance industry is strong overall, insurers with large Texas operations are vulnerable.

Insurers have braced for hundreds of thousands of claims from homeowners, car owners and businesses. The top homeowners' insurers in Texas are State Farm, Allstate Corp. and Farmers Insurance, according to ratings agency A.M. Best. State Farm, Berkshire Hathaway Inc.'s Geico and Allstate are the top personal auto insurers in Texas.

Shares of Progressive rose 3% to $47.73 in morning trading in New York.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

September 19, 2017 10:44 ET (14:44 GMT)

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