Hurricanes Rita, Katrina Impact Progressive’s October Results

The Progressive Corporation today reported its financial results for October 2005.

Net premiums written were $1.328.1 million, a 4 percent increase from $1,279.8 million in October 2004. Net premiums earned were $1,340 million, a 5 percent increase over $1,275.2 for last October. Net income was $75.4 million, a 46 percent drop from $140.2 million in 2004, for a combined ratio of 94.2, compared with 87.0 in October 2004. Income per share for the month was 38 cents, a 42 percent drop from 66 cents per share in October 2004.

Progressive’s exposure for Hurricane Wilma, which hit Florida during the month, is estimated at $72.4 million, including both reported and incurred but not reported claims. Through Nov. 15, nearly 19,400 claims were incurred by the company relating to Wilma, with 66 percent of these having been settled.

In October, Progressive’s estimate increased an additional $12.0 million related to Hurricane Katrina, bringing total estimated lossese to $185.6 million. Through mid-November, Progressive incurred about 24,500 claims and settled 94 percent of all claims.

The Progressive Group of Insurance Companies, based in Mayfield Village, Ohio, ranks third in the nation for auto insurance.