Progressive's quarterly profit jumps on robust auto insurance demand

Shares of the Mayfield Village, Ohio-based institution roseate 1.8% to $281 earlier the bell.

Rising wages and debased unemployment successful the reported 4th helped prolong lawsuit spending connected car insurance, 1 of Progressive's mainstay gross streams.

Its nett premiums written jumped 17% to $22.21 cardinal successful the quarter.

The insurer's combined ratio was 86%, compared with 86.1% successful the year-ago period. A ratio beneath 100% means it earned much successful premiums than it paid retired successful claims.

Progressive provides security for idiosyncratic arsenic good arsenic commercialized autos and trucks, motorcycles, boats, recreational vehicles and homes.

The company's nett income roseate to $2.57 billion, oregon $4.37 per share, successful the 4th ended March 31, from $2.33 billion, oregon $3.94 per share, a twelvemonth earlier.

Progressive had 35.1 cardinal idiosyncratic security policies successful force, 18% higher than a twelvemonth earlier. Commercial lines policies were 6% higher than past year.

Insurers look imaginable disruptions from tariffs, which could inflate the outgo of car parts and gathering materials arsenic good arsenic thrust up repair costs.

Analysts, however, expect the tariff interaction to the car security manufacture to beryllium manageable done pricing adjustments.

The interaction of tariffs connected the car security manufacture could besides let Progressive to further widen its marketplace stock gains, analysts say.Progressive shares person gained astir 15% truthful acold this year, compared with an 8.3% autumn successful the benchmark S&P 500 scale arsenic of past close.

(Reporting by Pritam Biswas and Arasu Kannagi Basil successful Bengaluru; Editing by Pooja Desai)