Progressive Insurance Corp. in January reported a declining rate of policies in force, reflecting challenging competitive conditions.
Bank of America property-casualty analyst Brian Meredith said that while top line and year-over-year PIF growth in personal lines “continued to be challenged by competitive conditions, underlying margins continue to be robust.”
On the positive side, Mr. Meredith said commercial net written premium was up 14 percent on a year-over-year basis while the comparable personal direct figure rose 6.8 percent.
But the Mayfield, Ohio-based agency's net written premium declined 2.1 percent on a year-over-year basis, Mr. Meredith noted.
Total PIF rose 8.1 percent in January compared to the same month in 2005, but that represents a steadily declining growth rate, Progressive said.
Net income for the month came in at $154 million, up 3 percent from $149.8 million in the comparable 2005 period.
The company's profit was boosted by a prior-year reserve release of $44.8 million, which pushed the combined ratio down to 86 for the month.
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