Progressive Q4 CR improves to 87.9%

By Michael Loney

Jan 29 - Progressive has reported a 0.8 point improvement in its fourth quarter combined ratio to 87.9 percent, meaning the US personal lines giant improved this metric for the full year to 88.8 percent.

• Q4 CR ticks down 0.8 pts to 87.9% from 88.7% in Q4 2023

• Q4 NPW up 20% to $18.11bn, from $15.13bn in prior period

• Net income up 19% to $2.36bn in the fourth quarter

• FY 2024 CR of 88.8% improves on 94.9% in 2023.

Ohio-based Progressive’s 87.9 percent combined ratio for the fourth quarter compared with 88.7 percent in Q4 2023.

This included a combined ratio for December of 84.1 percent, which was a 0.7 point deterioration on the 83.4 percent in the same month of 2023.

Net catastrophe losses had a 1.0 point favourable impact on the December combined ratio, primarily due to favourable development from hurricanes Helene and Milton in excess of current month storm losses in both vehicle and property products.

Net premiums written for the fourth quarter increased 20 percent to $18.11bn, from $15.13bn in the fourth quarter of 2023.

Net income increased 19 percent to $2.36bn in the fourth quarter, from $1.99bn in Q4 2023.

Policies in force as of 31 December were 35.0 million, up 18 percent from 29.7 million at the end of 2023.

For full-year 2024, the combined ratio was 88.8 percent, an improvement on the 94.9 percent in 2023.

The net catastrophe ratio loss ratio for the year was 3.6 percent.

Net premiums written increased to $70.42bn in 2024, from $61.55bn the previous year.

Total comprehensive income for the year was $8.67bn, up from $5.09bn in 2023.

The performance for the year shows continued improvement for Progressive, which like other auto insurers had suffered from the impact of higher severity and frequency of losses post-pandemic.

The 94.9 percent combined ratio in 2023 had been a marked improvement on the 103.9 percent in 2022 following the personal lines giant taking action to improve profitability by imposing rate and non-rate actions.

Progressive in its October 2024 results had reported $206.5mn of vehicle losses related to Milton and Helene and $153.6mn of property losses from Milton.

That followed Progressive for the third quarter reporting Milton losses of $325mn in its vehicle business and under $200mn in its property business.

New York-listed Progressive’s share price was up 2.3 percent as of 9.45am ET on Wednesday, compared with the previous day’s close of $245.05.