Progressive's Q2 Profit Rises 4% as Auto Premiums Keep Growing

Progressive Corporation, one of the largest US auto insurers, reported second-quarter net income of about $3.3 billion, a 4% increase from the same period a year earlier. Net premiums written rose about 5% to roughly $21.1 billion, and on a year-to-date basis reached $44.7 billion, up from $42.3 billion a year earlier, reflecting continued growth in the company's policy base. The quarter's combined ratio, a key measure of underwriting profitability in which a figure below 100 indicates a profit, came in at 87.3, slightly higher than the 86.2 recorded a year earlier but still comfortably profitable. Growth was led by personal lines, where net premiums written increased about 6% to roughly $38.2 billion with a combined ratio of 86.8, while the commercial lines business grew premiums 3% year-to-date. The results point to a US auto insurance market that has stabilised after several turbulent years of steep rate increases, with insurers now able to grow while maintaining healthy margins. Progressive is scheduled to hold its investor call on the quarter in early August.