Progressive Estimates Katrina Losses

Progressive Sees Katrina Losses at $119.5 Million, Net Premiums Written in August Stay Flat



MAYFIELD VILLAGE, Ohio (AP) -- Auto insurance provider Progressive Corp. said Friday it expects losses of $119.5 million related to Hurricane Katrina, and that its net premiums written in August were flat with the year-ago period.



The company said that through Wednesday, 19,000 Hurricane Katrina claims were processed, with about 70 percent of settlements coming from Florida, and 5 percent from Louisiana. Progressive also warned that the final losses relating to the storm could vary from estimates.



In August, the insurer wrote nearly $1.1 million net premiums, while net premiums earned increased 6 percent to $1.1 million from $1 million in 2004. Meanwhile, monthly net income slid 43 percent to $56.8 million, or 29 cents per share, from $100.3 million, or 46 cents per share.



Separately, brokerage firm Bear Stearns Cos. initiated coverage on the company at "Peer Perform." Shares of the company added $3.21, or 3.3 percent, to $101.06 in morning trading on the New York Stock Exchange, topping a previous 52-week high of $100.91. Its shares have climbed 19 percent since the start of the year.



On Wednesday the company had announced it was delaying the release of its results by one day, saying it needed additional time to analyze the effect of Hurricane Katrina.



Besides personal auto coverage, the company offers auto lenders, directors' and officers' insurance, as well as employee misconduct insurance.