Progressive 1Q Net Down 3% Amid Securities Losses

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; [e-mail]