Insurer Progressive says 3rd-quarter profit up 27 percent from year ago

MarketsAssociated Press

The Progressive Corp. said Friday that its third-quarter net income jumped 27 percent as it sold more insurance policies.

The insurer said it earned $296.1 million, or 50 cents per share, compared with $232.4 million, or 39 cents per share, in the same quarter a year ago. Analysts expected earnings of 44 cents per share, according to FactSet.

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Its pretax gain on securities rose 37 percent to $38.2 million from $27.9 million.

Net premiums written, which measures the value of all new and renewal policies sold during the period, rose 6 percent to $4.73 billion. Net premiums earned, which is the portion of the premiums it earns when policies expire, also increased 6 percent to $4.54 billion.

Its combined ratio was 92.5 percent for the quarter. A ratio above 100 means that for every premium dollar taken in, more than a dollar went to cover claims and expenses. A figure below 100 means the company made a profit on its insurance operations.

Shares of the company, based in Mayfield Village, Ohio, rose 8 cents to $5.35 in morning trading Friday.