Progressive Corp. reported a 56 % decrease in internet income to $ 790.1 million for the second quarter. net income was toss off 9 % for the first six months .
The company said the largest contributor to the year-over-year decreases was the reduction of cover income, which decreased 68 % for the quarter and 38 % for the first six months of 2021. The companywide underwriting margin for the irregular quarter 2021 was 3.5 %, compared to 12.3 % for the lapp time period last year .
The combine proportion rose by 8.8 points to reach 96.5, compared to 87.7 in the same period last year.

The results reflect higher car accident frequency and austereness in both personal and commercial car indemnity products, coupled with lower average premiums per policy for its personal car products .
Given the results, the third largest car insurance company said it is raising its car rates and trimming its advertise costs .
Despite some negative trends, both premiums and policies in effect grew in the second draw compared to the same period last class. Companywide net premiums written grew 13 % in the quarter to $ 11.5 billion, with Personal Lines growing 6 %, Commercial Lines 66 %, and Property 15 %, chiefly reflecting an addition in volume from all of segments .
The caller ended the second draw 2021 with 26.4 million companywide policies, or 2.6 million more policies than were in military unit at June 30, 2020. personal Lines refilling applications increased 9 %, and both Commercial Lines and Property increased 8 %. New applications for special lines products that include policies for motorcycles, boats and recreational vehicles were up 1 % .
personal Lines generated an underwrite profit margin of 3.8 %, while commercial Lines turned in an underwrite profit allowance of 8.0 %. Property segment had an underwrite loss margin of 16.6 % for the quarter, reflecting significant catastrophe losses of $ 128.0 million, or 25.5 points on the combined ratio for the quarter .
The insurance company noted that as pandemic-related restrictions were importantly reduced during the second draw 2021, both frequency and vehicle miles traveled increased, particularly belated in the second quarter. The caller said the increase in personal car badness reflects higher costs to both repair cars and for aesculapian expenses. The year-over-year increase in collision coverage austereness, in depart, reflects an addition in the valuation of use vehicles in 2021. The bodily injury coverage besides saw an increase during the quarter due to more severe accidents.

The insurance company ’ s personal car incurred accident frequency was up 47 % for the second quarter 2021, as compared to the prior class, and asperity was up 8 %. With more people driving and vehicle miles traveled increasing, loss frequency is more in agate line with pre-pandemic feel. collision is a significant driver of the increased austereness with the increase in the valuation of use vehicles increasing sum loss and rectify costs. The company noted that it besides had lower collision austereness in the second quarter of 2020 as a resultant role of COVID-19 restrictions .
During the second quarter 2021, in the aggregate, rate changes for personal car for the quarter were about 2 % .
“ Management continues to assess miles drive, driving patterns, loss austereness, weather events, and other components of expected personnel casualty costs on a state-by-state footing and, where appropriate, adjust rates consequently. We are besides looking to identify where we may need to tighten cover criteria further where losses indicate rate inadequacy, ” the company said .
In addition to rate actions, at the begin of the third one-fourth 2021, Progressive started reducing its advertise spend in certain areas .
“ We will continue to look at key performance indicators to assess where extra action is needed and will react swiftly to address those needs. These actions could result in fewer newfangled business applications, ” the company said .
The insurance company noted that certain comparisons to last class are affected by COVID-19, when there was a significant reduction in car accident frequency.

Underwriting expense ratios were 12.5 points and 6.6 points lower for the second quarter and inaugural six months of 2021, respectively, compared to the lapp periods last class. In April and May 2020, the company issued credits to personal car policyholders and recognized extra bad debt expense related to the placard leniencies and moratoriums that were in invest through the middle of May 2020, which contributed to the year-over-year variances .
source : progressive
Topics Trends Auto Claims Pricing Trends

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