Progressive Corp’s auto insurer 4Q profits double
Auto insurer Progressive Corp’s (PGR.N), reported a huge proft for teh $Q as revenue doubled helped partly by a 9 percent rise in earned premiums. The company posted a net income of $305 million, or 46 cents a share, compared with $159.3 million, or 24 cents a share, a year ago. Net premiums earned for the quarter rose to $3.7 billion from $3.4 billion. Combined ratio fell to 91.5 percent from 95.2 percent. Combined ratio is the percentage of premiums an insurer has to pay out in claims and expenses. A figure over 100 indicates that underwriting was unprofitable.
Shares of the Mayfield Village, Ohio-based company were down 15 cents at $17.56 in morning trade Wednesday on the New York Stock Exchange.