- Progressive's (NYSE:PGR) incurred losses and loss adjustment expenses in March reflect a decrease in auto accident frequency as a result of COVID-19 restrictions and were in part offset by $103M of reserve increases.
- March loss/LAE ratio was 54.0 vs. 69.7 in February.
- March combined ratio of 77.1% falls from 87.0% in the year-ago quarter.
- March NPW of $2.86B falls 3% Y/Y and NPE of $2.94B rises 10%.
- The Y/Y reduction in March NPW reflects decreases in new applications and average written premiums per policy, as well as a $110.5M reduction in PGR's transportation network company business NPW.
- March net income of $318.6M, or 54 cents per share, jumps 64% Y/Y from $194.8M, or 33 cents per share, in March 2019.
- Companywide, policies in force in March rose to 22.9M, up 9% Y/Y.
- Q1 EPS of $1.17 trails the consensus of $1.45 and declines from $1.83 in the year-ago quarter.
- Q1 net premiums written of $9.87B rises 7% Y/Y and net premiums earned of $9.43B increases 11% Y/Y.
- Q1 combined ratio of 86.9% improves from 88.8% a year earlier.
- Previously: Progressive EPS misses by $0.06, misses on net premiums earned (April 15)