Progressive Reports Hurricane Harvey Linked to 90% of Total Catastrophe Losses in August
September 19 2017 - 10:59AM
Dow Jones News
By Ezequiel Minaya
Progressive Corp. swung to a loss in August, the company
reported Tuesday, with Hurricane Harvey more than tripling the
insurer's catastrophe losses in the period compared to last
year.
Progressive said more than 90% of total catastrophe losses in
August were linked to Harvey, the first substantial hurricane to
hit Texas since Hurricane Ike struck the Gulf Coast in 2008.
Last month, the company sustained $254 million in catastrophe
losses, up from about $75 million during August 2016. A vast
majority of the losses were tied to Progressive's vehicle business,
with only $26 million involving the property segment.
For the month, the company swung to a loss of $16.8 million,
down from a profit of $49.3 million last year. Net premiums written
during the month, meanwhile, rose 15.8% to $2.21 billion.
Hurricane Harvey pounded Texas last month with torrential rain,
high winds and widespread flooding. The last Category 4 storm to
hit Texas was Hurricane Carla in 1961, according to the National
Weather Service.
While the insurance industry is strong overall, insurers with
large Texas operations are vulnerable.
Insurers have braced for hundreds of thousands of claims from
homeowners, car owners and businesses. The top homeowners' insurers
in Texas are State Farm, Allstate Corp. and Farmers Insurance,
according to ratings agency A.M. Best. State Farm, Berkshire
Hathaway Inc.'s Geico and Allstate are the top personal auto
insurers in Texas.
Shares of Progressive rose 3% to $47.73 in morning trading in
New York.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
September 19, 2017 10:44 ET (14:44 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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