Progressive 4Q Net Drops 33% Amid Securities Losses, Flat Net Premiums

   DOW JONES NEWSWIRES 
 

Progressive Corp.'s (PGR) fourth-quarter net income fell 33% on $59.3 million in securities losses amid market volatility, though the automobile insurer's net premiums remained flat. Progressive shares rose 2.2% to $13.28 in premarket trading.

Progressive reported net income of $159.3 million, or 24 cents a share, compared with $236.1 million, or 34 cents, a year earlier.

Net premiums edged up 0.3% to $3.09 billion.

Analysts surveyed by Thomson Reuters had projected earnings of 35 cents a share.

The combined ratio, a measure of how much of premiums were paid out in claims, edged up to 95.2 from 95.

Analysts have said personal-and-casualty insurers are a safer group than life insurers in the current market, since they have less invested in commercial mortgage-backed securities.

Progressive has moved beyond its traditional business into standard-risk and preferred auto insurance, as well as other personal-use vehicle coverage such as motorcycles, commercial vehicles and snowmobiles.

-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310; [e-mail]

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