Progressive Corp. said Friday it recorded a loss of about $543 million for the second quarter 2022 and a loss of $436.7 million in June.
To date, Progressive is in the red with a bottom-line net loss of $229 million for the first half.
The results were despite the personal and commercial property insurer posting an increase of 8 percent in net premiums written during the second quarter, with a combined ratio of 95.6 compared to 96.5 during the same time a year ago.
Pretax net losses on securities in the second quarter were about $1.18 billion, and $564 million in June.
The combined ratio in June was 94.7 compared to 100.5 during the same month in 2021, led by a 87.8 combined ratio in the commercial lines business, followed by personal lines at 95.1. But in property lines, the combined ratio was an unprofitable 112, which included 24.5 points from catastrophes. During the month, Progressive incurred catastrophe losses related to thunderstorms, hail and wind, the company said.
Progressive said it wrote down $224.8 million of goodwill from its property segment, primarily related to the 2015 acquisition of ARX Holdings Corp.
“Based on our analysis, we concluded that the fair value of our property segment is less than the current carrying value, primarily driven by reduced forecasted profitability given the magnitude of recent weather events, as well as other factors impacting our plans to restore our property business to target profitability in a timely fashion,” Progressive said.
The insurer said it plans to hold an earnings conference call on Aug. 3, and will begin with a presentation on the property business.
(A version of this article was published on Insurance Journal)