Progressive More Than Doubles Q3 Net Income Despite Helene Losses

Progressive Corp. said it’s third quarter 2024 net income more than doubled compared to last year, to about $2.3 billion.

Progressive said it took a hit of $563 million in catastrophe losses in September from Hurricane Helene. Breaking down the losses, $401 million in losses was from vehicles including boats and RVs. Another $162 million in net losses were attributable to its property business, and $23 million in losses came from allocated loss adjustment expenses.

Hurricane Milton struck Florida on Oct. 9, shortly after the third quarter ended. Progressive said it expects to absorb about $325 million in vehicle losses, and property and ALAE with not exceed losses of $200 million to its property business. The insurer said it continues to evaluate the impact of Milton.

Progressive Insurance Group is the second largest provider of private passenger auto insurance and the eighth largest homeowners multi-peril insurer in Florida, according to AM Best.

Progressive said its reinsurance retention threshold under its occurrence excess-of-loss reinsurance program is $200 million. No amounts were ceded due to Hurricane Helene.

The Mayfield Village, Ohio-based insurer’s third quarter net premiums written went up 25% to about $19.5 billion. The insurer’s direct channel increased personal lines NPW 27% during the third quarter. The agency channel increased NPW 22%.

The Q3 combined ratio improved to 89 compared to 92.4 during Q3 2023. Progressive’s year-to-date combined ratio as of Sept. 30 also stands at about 89. The year-to-date combined ratio for personal lines from the agency channel is 86—about 3 points better than combined ratio from the direct channel.