Progressive Auto Insurance Review
Progressive Corp has always been a great company with superior customer service and easy auto insurance policy online management. Some earlier news this year showed a 15% loss in the first part of 2010. Claims have also risen 3.5% in 2010’s first 6 months ending on June 30th with a total of $4.97 billion.
One question I hear sometimes is, “why did my insurance rate go up, I haven’t had any accidents, tickets or claims?” Sometimes company earnings can also cause an increase in your auto insurance rate. Online research has shown that recently customers have experienced an increase with their insurance rates; this could be caused by many factors other than accidents, tickets, claims or even company profits. Anytime you move, add someone to the policy, add a vehicle, or get older – your rate can be affected. This is why I find it important to compare rates once a year.
Progressive Corp., the U.S being the 4th largest auto insurance provider in the States stated that profit has dropped 15% on investment write downs. The Company’s net income dropped to $211.9 million from $250.1 million in its 2nd quarter. Standard & Poor’s downgraded the auto insurer from AA+ rating to AA due to “Vulnerability to Earnings Volatility” from investment.
Paul Newsome, Sandler O’Neill & Partners analyst from Chicago’s mentions how the company tends to maintain a “modestly more aggressive investment portfolio.” The loss of $39.5 million was confirmed prior to taxes in the three months ending on June 30th of 2010 which was compared to the $15.9 million investment gain in 2009.