PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2011

Summary

The Progressive Corporation (PGR) reported its third-quarter and nine-month results for the period ending September 30, 2011. For the quarter, net income was $150.7 million, or $0.24 per share, a decrease of 42% compared to the prior year's quarter, primarily due to higher catastrophe losses and less favorable prior accident year reserve development. For the nine months, net income was $758.8 million, a slight decrease of 1% year-over-year. Despite a challenging quarter, the company demonstrated resilience with solid growth in net premiums written across its Personal Lines and Commercial Auto segments. Investment operations faced headwinds, with a negative total return for the quarter, but the company maintained a strong capital position.

Key Highlights

• 1Net income for the third quarter of 2011 was $150.7 million, a decrease of 42% compared to the same period in 2010, largely impacted by higher catastrophe losses.
• 2Net premiums written grew 4% year-over-year for both the third quarter and the first nine months of 2011, driven by positive trends in Personal Lines and Commercial Auto segments.
• 3The company experienced a negative total investment portfolio return of (2.2)% for the third quarter, primarily due to losses in both fixed-income and common stock portfolios.
• 4Progressive maintained a robust capital position with total capital (debt plus equity) of $8.3 billion at September 30, 2011, and a debt-to-total capital ratio of 29.6%.
• 5The Personal Lines segment, representing the majority of the company's business, showed stable underwriting margins, while the Commercial Auto segment saw a decrease in its underwriting profit margin.
• 6Initiatives such as the Snapshot usage-based insurance product and mobile capabilities continue to be rolled out, indicating a focus on innovation and customer engagement.

Frequently Asked Questions