Property and auto-focused insurance group, Progressive, has revealed that during September it recorded a reinsurance recoverable of roughly $21 million under its 2023 catastrophe aggregate excess of loss reinsurance program.
This brings the year-to-date recoverable to nearly $23 million under the program, the company said.
The cat losses and associated allocated loss adjustment expenses (ALAE) in the Property business exceeded the first layer annual retention thresholds, ranging from $500 million to $575 million, under these agreements. The recoverable had a 9.5 favourable point impact on the Property net cat loss ratio for September.
The company has reported a combined ratio of 81.6% for its property business in its September 2023 results, which includes 53.1% in Loss/LAE ratio and 28.5% in Expense ratio.
It reported a combined ratio of 89.4% for its personal lines business in its September 2023 results, while commercial lines business posted 93.2%. The companywide total combined ratio was 89.7%, compared to 116.2% in 2022.
The insurer reported net premium written of $4,899.5 million in September 2023, compared to $4,007.3 million a year earlier.
Net premium earned was $4,649.3 million in September 2023, compared to $3,869.5 million in September 2022.
Earlier in August, the company said that it stood below the annual retention thresholds of its 2023 cat aggregate excess of loss program, but the company anticipates exceeding a portion of these thresholds in the third quarter of 2023. Upon surpassing the retention thresholds, Progressive’s reinsurance coverage will extend to cover non-named storm property cat losses up to $100 million.
