Progressive sees doubling of losses in property segment

Progressive sees doubling of losses in property segment | Insurance Business America

Property

Progressive sees doubling of losses in property segment

The insurance giant has shared its Q2 results

Property

By
Terry Gangcuangco

Progressive Insurance (formally The Progressive Corporation) has released its shareholder report for the second quarter of 2024, revealing a more than doubling of losses for its property segment.

In the three months ended June 30, Progressive’s pretax profit from personal lines (personal auto and special lines) amounted to $1.57 billion, a surge from 2023’s $55.3 million. Its commercial lines business, meanwhile, contributed $303.8 million in pretax profit, improving from $87.2 million last year.

The property segment, however, suffered bigger losses compared to 2023. The business – which writes residential property insurance for homeowners, other property owners, and renters, and umbrella insurance – posted a $487.8 million pretax loss in the quarter, a worse showing than 2023’s $206.8 million pretax loss.

Progressive’s total underwriting operations improved from a pretax loss last year worth $64.3 million to $1.39 billion in pretax profit this time around.

In terms of comprehensive income, the company’s net income available to common shareholders in the quarter stood at $1.46 billion. In 2023, the corresponding result was only $335.9 million.

In her second-quarter letter to shareholders, Progressive president and chief executive Tricia Griffith wrote: “I’m extremely pleased with the results from this quarter, where we posted net premiums written growth of 22%, with a combined ratio of 91.9 and policies in force growth of 9%. Given all the weather-related activity during the quarter, these results were even more extraordinary.

“I’d be remiss if I didn’t give a special shoutout to our incredible claims organization that rose to the occasion and took care of our customers, as we experienced a very high volume of catastrophes and other weather-related storms across the country during the quarter. While I’m not surprised, it’s always remarkable watching them in action.”

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