The Progressive Corporation Reports Catastrophe Losses for January 2025
The Progressive Corporation, a prominent insurance group specializing in property and auto insurance, has announced its financial performance for January 2025. The company experienced approximately $43 million in catastrophe losses, primarily attributed to the devastating wildfires in California.
According to Progressive, a significant 72% of these losses emerged from its personal property insurance products. This segment recorded a net catastrophe loss ratio of 10.5%. In contrast, the vehicle insurance segment reported a much lower net catastrophe loss ratio of only 0.4%, while the overall personal lines business registered a net catastrophe loss ratio of 0.9%.
When considering the entire company, the total net catastrophe loss ratio, which includes both personal and commercial lines, stood at 0.7%.
In terms of operational efficiency, Progressive disclosed a combined ratio of 83.1% for its property business in January. This figure comprises a Loss and Loss Adjustment Expense (LAE) ratio of 53.9% and an expense ratio of 29.2%. For the personal lines sector, the total combined ratio was slightly higher at 83.8%, with a Loss/LAE ratio of 63.2% and a more favorable expense ratio of 20.6%.
Overall, the company reported a total combined ratio of 84.1% for the month, which includes a Loss/LAE ratio of 63.8% and an expense ratio of 20.3%.
Source: Reinsurance News
