Severe Storms Caused $722M in Catastrophe Losses in May: Progressive
Progressive on Friday said severe storms mostly in Texas and the Midwest caused about $722 million in net catastrophe losses to the insurer.
In its monthly announcement of financial results on Friday, the Mayfield Village, Ohio-based insurer said the storm losses added 12.3 loss ratio points to a May combined ratio of 100.4. Year-to-date, the company’s combined ratio is 89.7
Progressive’s property business booked a May combined ratio of 282.8. The insurer said it recorded a reinsurance recoverable of $95.1 million, including losses and allocated loss adjustment expenses, under its per occurrence reinsurance contracts, which have a retention threshold of $200 million. Progressive added that it was close to reaching the annual retention thresholds under 2024 catastrophe aggregate excess of loss contracts as of May 31. Once exceeded, Progressive said it has reinsurance coverage up to $85 million for non-named storm property catastrophe losses.
Progressive said May net income was $235.7 million. The company has booked about $3 billion in net income for the year as of May 31.
Related: Global Insured Natural Disaster Claims Again Dominated by Severe US Storms: Gallagher
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