Progressive 1Q profit declines 3 pct

 

Thursday, Apr 16,2009, 2:49:30 PM   Click:

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Source: Associated Press
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MAYFIELD VILLAGE, Ohio_Progressive Corp. said Wednesday its first quarter fell 3 percent of the benefits that the auto insurer was hurt by investment losses during the month of March.

Net income fell to $ 232.5 million, or 35 cents per share, in the January-March period from $ 239.4 million, or 35 cents per share, a year earles.

Analysts polled by Thomson Reuters expected a higher profit of 42 cents per share.

The decrease in earnings is due, in part, to society, recognizing $ 87.5 million loss in March. During this month, the company has cut $ 216.5 million of securities, which were offset by net gains from the sale of securities of $ 103.2 million and the creation of retention period of net gains $ 25.8 million.

For the first quarter 2009, net written premiums increased slightly to $ 3.52 billion $ 3.49 billion in the period a year ago.

Progressive combined ratio decreased 5.1 points to 89.5 from 94.6 in the period a year ago. Combined ratio measures the amount an insurer pays in claims and other expenses in relation to what he earns from writing insurance policies. A ratio above 100 means the insurer is to pay more in claims and expenses than it takes in political writing.

Progressive shares fell 20 cents, or 1.4 percent, to $ 14.65 in trading Wednesday morning.