Progressive Corp. said on Tuesday its third-quarter profit more than doubled, driven by strong demand for personal auto insurance policies.
Encouraged by expectations of a soft landing, individuals and businesses are spending on insurance policies despite higher prices. Wage growth and a relatively strong labor market have also given confidence to customers to buy policies.
Net income of the insurer rose to $2.3 billion, or $3.97 per share, in the three months ended September 30, compared with $1.12 billion, or $1.89 per share, a year ago.
Progressive also said it incurred catastrophe losses of $563 million in September related to Hurricane Helena. The company expects its vehicle business to incur catastrophe losses of nearly $325 million in October due to Hurricane Milton.
The Mayfield Village, Ohio-based company’s shares have risen about 58.1 percent in 2024 as of last close, compared with a 22.9 percent gain in the benchmark S&P 500 .SPX index.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Vijay Kishore)