Progressive’s Q1 2022 highlights
Progressive shared their Q1 2022 results and here are some highlights:
- During the quarter, Progressive generated $13.2 billion of net premiums written, an increase of $1.5 billion, or 12%, compared to first quarter 2021.
- Policies at the end of the quarter stood at 26.4 million, a 0.8 million gain compared to March 31, 2021.
- On a year-over-year basis, for the first quarter 2022, net income ($390.2M) decreased 79%.
- Personal lines policies in force grew 2% year over year, while commercial lines and property businesses grew policies 16% and 9%, respectively. The lower growth in personal lines reflects the significant decrease in new personal auto applications as a result of personal auto rate increases taken during the last 12 months and decreased advertising spend on a year-over-year basis, in each of the last 9 months.
- During Q1 2022, new applications (i.e., issued policies) decreased 24% in the personal lines segment, with total new personal auto applications decreasing 26%. Agency auto new applications decreased 28% and direct auto decreased 25%.
- During the first quarter 2022, Progressive implemented personal auto rate increases in 36 states.
- In addition to rate actions, Progressive implemented underwriting restrictions and limited bill plan payment options.
- Advertising spend was reduced by 8% compared to the same period last year.
- Combined ratio for personal lines (agency) was 93.3, 6.7 points higher compared to Q1 2021.
- Combined ratio for personal lines (direct) was 96.9, 6.3 points higher compared to Q1 2021.
- Total personal lines combined ratio was 95.2, 6.5 points higher compared to Q1 2021.
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