Progressive Insurance reports massive upswing in financial results

Progressive Insurance reports massive upswing in financial results | Insurance Business

Progressive Insurance reports massive upswing in financial results

Progressive Insurance has reported considerable year-over-year growth in its premiums written and income for the month of March; but the profitability of its day-to-day operations after accounting for total incurred losses left more to be desired.

In its latest earnings release for the month of March 2021, Progressive posted $3.772 million in net premiums written, representing a 32% increase from $2.860 million in March 2020. Net premiums earned similarly rose 11% from last year to $3.269 million. Most notably, the company’s net income in March 2021 skyrocketed by 78% to $567.9 million, from $318.6 million the year before.

However, the insurer’s combined ratio for the month significantly increased, from 77.1% in 2020 to 90.7% – a noticeable 13.6 jump in percentage points.

“For March 2021, and for the next several months, when comparing current year results in our vehicle businesses to the prior year, primarily for net premiums written, loss and loss adjustment expense ratios, and underwriting expenses, among other nonfinancial measures, the comparisons will be impacted by the social distancing and shelter-in-place restrictions that were put in place beginning in March 2020 in response to COVID-19,” Progressive said in a statement accompanying the earnings release.

The insurer also posted its earnings for the first quarter of 2021. Net premiums written for the quarter jumped 19% to $11.729 million, from $9.871 million in 2020, while net premiums earned in Q1 2021 rose to $10,420 million from $9,430 million in 2020. Net income also spiked by 114% to $1,480 million, from $692.7 million the year before.

Progressive Insurance announced that it plans to release its April results on May 19, 2021.