Progressive’s property line CoR hits 116.7% in April on severe weather losses

The Progressive Corporation has released its results for April, revealing a property line combined ratio of 116.7%, driven by weather losses throughout the month.

The insurer’s Property segment combined ratio for April is comprised of an expense ratio of 29.1% and a loss ratio of 87.6%.

The division’s net catastrophe loss ratio was 35.1% for the month. This ratio, explains the carrier, represents cat losses in the period, including the impact of reinsurance, as a percentage of net premiums earned.

“During the month, we incurred catastrophe losses related to severe weather throughout the United States,” said the firm.

This comes as no surprise for many, given the string of severe convective storms (SCS) that battered the central and southern United States in April.

Aon’s weekly cat report released on April 12 noted that strong wind and SCS, which occurred the week before, would drive economic and insured losses into the hundreds of millions or higher.

In that paper, it was confirmed that around 450 storm reports were submitted to the Storm Prediction Center (SPC) between April 8-11, all spanning from Texas to South Carolina.

Aon noted that the most extensive damage was due to extreme rainfall, primarily in states such as Texas, Louisiana, Mississippi, and Florida.

Then, on May 3, the broker observed more severe weather outbreaks, along with flooding. which impacted central US states between April 25 and May 2nd.

Several powerful tornadoes are said to have caused catastrophic damage in Nebraska, Iowa, and Oklahoma, which resulted in many homes and businesses being destroyed.

On this occasion, Aon said that losses could potentially run into the billions of dollars, on both an economic and insured basis.

The post Progressive’s property line CoR hits 116.7% in April on severe weather losses appeared first on ReinsuranceNe.ws.

Leave a Reply

Your email address will not be published. Required fields are marked *