Progressive Beats Street by 7 Cents a Share

Mayfield Village, Ohio-based vehicle insurer Progressive Corp. reported third-quarter 2003 net income of $319.8 million, or $1.45 per share, compared to $178.5 million, or 80 cents per share, in the third quarter last year.

Included in net income are net realized losses on securities of $4.3 million, or 1 cent per share, for the third quarter 2003, and $23.7 million, or 7 cents per share, for the same period last year. In addition, 2003 net income includes $30.8 million, or 9 cents per share, of estimated interest income related to an income tax refund the company will receive.

According to Reuters Research, Wall Street analysts expected earnings of $1.38 per share.

Net premiums written and earned increased 25 percent and 26 percent to $3,104.9 million and $2,927.8 million, respectively, as compared to the third quarter last year. During the third quarter 2003, the company produced a GAAP combined ratio of 87.9, compared to 91.9 in the same period last year.

The company had catastrophe losses of $13.3 million, 4 cents per share or .5 points, including $5.7 million attributable to hurricane Isabel, for the third quarter 2003, compared to $5.6 million, 2 cents per share or .2 points, in the same period last year. Recurring investment income was $115.5 million before taxes and $86.3 million after taxes, compared to $116.6 million before taxes and $83.0 million after taxes for the third quarter 2002.