NU Online News Service, March 18, 1:24 p.m. EST

Progressive Corp. reported net income for February dropped 22 percent despite a 3 percent increase in net premiums earned.

The Mayfield Village, Ohio-based auto insurer reported net income for the month of February at $98 million was $28 million below the period for the previous year. Earnings per share were down 4 cents to 15 cents a share.

The companies combined ratio grew for the month by 1.2 points to 90.4.

Net premiums earned grew 3 percent, or $31 million, to $1.08 billion. Net premiums written increased 11 percent, or $125 million, to $1.25 billion.

Both agency and direct written business increased, with agency auto policies in force up 1 percent, or more than 50 million policies, to 4.39 million policies. Direct auto was up 15 percent, or more than 431 million, to 3.34 million.

On a year to date basis, Progressive reported a 72 percent drop in its securities, which fell from $43 million in 2009 to $12 million.

All figures were rounded off.

In a statement, Progressive said, "February's written premium growth rates continue to reflect the variability in disclosing monthly results."

As an example, the company said some renewals fell at different periods in 2009 compared to 2010, which means this year's results appeared to be more favorable than the previous year.

"As a result, it may be more prudent to analyze written premium growth on a quarterly basis," the company said.