The Progressive Corp. saw robust, double-digit increases in net premiums written and net income, gains it said stemmed, in part, from a year of COVID-19 quarantine restrictions.
The Ohio-based property/casualty insurer booked nearly $578 million in net income for the 2021 first quarter, or $0.96 per share, compared to $318.6 million, or $0.54 per share, in the 2020 first quarter. That’s a nearly 80 percent gain, year-over-year.
Similarly, net premiums written reached nearly $4.8 billion in Q1, up 32 percent from more than $2.8 billion a year ago.
Progressive noted in its earnings report that the increases “reflect the impact on net premiums written, profitability, and the equity markets from the social distancing and shelter-in-place restrictions that were put in place in March 2020 in response to COVID-19.”
Progressive reported double-digit premium gains in personal and commercial lines.
Personal auto net premiums shot up to $17.2 billion during Q1, up 13 percent from the previous year. Commercial lines grew by a similar rate, hitting nearly $859 million. The company’s property business surpassed $2.5 billion, also a 13 percent gain from the previous year.
At the same time, Progressive’s combined ratio climbed more than 13.5 percent year-over-year. It was 90.7 in the first quarter compared to 77.1 in the 2020 first quarter.
Also, net investment income declined to $220.2 million, down 9 percent from $241.2 million reported in the 2020 first quarter.
Source: Progressive