Progressive Sees 3Q Results Turn Positive

MAYFIELD VILLAGE, Ohio (AP) — Auto-insurance provider Progressive Corp. said Wednesday income for the third quarter and the month of September turned positive as market conditions reversed investment losses.

For the quarter, Progressive reported net income of $269.9 million, or 40 cents per share, compared with a loss of $684.2 million, or $1.03 per share, in the same period a year ago.

Analysts surveyed by Thomson Reuters expected 33 cents a share.

Net premiums written grew 1 percent to $3.55 billion from $3.51 billion a year ago. Net premiums earned, or the portion of premiums an insurance company earns when policies expire, edged up 1 percent to $3.45 billion from $3.42 billion.

Progressive posted $38.8 million in net realized gains on securities, or investments, compared with a loss of $1.37 billion in the same period a year earlier.

The company's combined ratio improved to 92.7 from 95.1. Combined ratio measures the sum of an insurance company's losses, or money paid out in claims, and expenses. A ratio above 100 means that for every premium dollar taken in, more than a dollar was spent covering claims, expenses and commissions, while a ratio under 100 indicates an underwriting profit.