(Reuters) -Progressive Corp reported a rise in third-quarter profit on Wednesday, helped by strong demand for its auto insurance policies.
Insurance demand sustained in the quarter as businesses and individuals continued to prioritize coverage to protect against risks such as accidents, property damage and natural disasters.
Progressive provides insurance for personal as well as commercial autos and trucks, motorcycles, boats, recreational vehicles and homes.
Its net premiums written jumped 10% to $21.38 billion during the quarter ended September 30.
The insurer’s combined ratio was 89.5%, compared with 89% a year ago. A ratio below 100% means it earned more in premiums than it paid out in claims.
Shares of the Mayfield Village, Ohio-based company fell 4.8% in premarket trading.
Progressive had 36.9 million personal insurance policies in force, 13% higher than a year earlier. Its agency auto and direct auto policies were up 13% and 17%, respectively.
Commercial lines policies were 6% higher than the year earlier.
The company’s net income rose to $2.62 billion, or $4.45 per share, during the quarter, from $2.33 billion, or $3.97 per share, a year earlier.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Shilpi Majumdar)
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