Despite incurring $563 million of catastrophic losses related to Hurricane Helene, Progressive reports its third quarter profit doubled, according to a September earnings report released Oct. 15. 

Progressive’s net income increased to $2.33 billion ($3.97 per share) from the $1.12 billion ($1.89 per share) reported in Q3 2023. 

Reuters reports the profit is driven by demand for personal auto insurance policies. 

“Encouraged by expectations of a soft landing, individuals and businesses are spending on insurance policies despite higher prices,” Reuters says. “Wage growth and a relatively strong labor market have also given confidence to customers to buy policies.” 

Personal auto lines rose 15% from 25.4 million to 29.2 million in the past year, according to Progressive’s release. 

“Net premiums written jumped 25% to $19.46 billion, while its combined ratio was 89%, versus 92.4% last year,” Reuters said. “A ratio below 100% means the insurer earned more in premiums than it paid out in claims.”

Progressive says it incurred 9.0 loss ratio points related to Hurricane Helene. This included vehicle losses of 401 million, counting boats and recreational vehicles. 

The company also estimated that its vehicle business incurred losses of approximately $325 million from Hurricane Milton as of Oct. 14. 

“We will continue to evaluate the impact of this catastrophe as more information develops,” the release says. “As further described in our periodic reports filed with the SEC, these estimates will change, and could change materially, as additional information develops and claims are reported.”

Progressive’s third quarter Investor Relations conference is scheduled for Nov. 5 at 9:30 a.m. Eastern time.

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