Progressive

Kemper today become the latest carrier to announce a partial refund for customers.

The companies are agreeing to refund 20 percent of premium payments for March and April, as the pandemic rages.

Progressive included a 20% rebate for commercial lines customers with BOP and GL policies – potentially the first indication of rebates spreading from auto to small commercial customers.

Progressive released its February results with a challenging macro backdrop. Key figures included a 90.3% consolidated combined ratio and an LTM shareholder ROE of 26.4%.

Progressive wants to expand the number of agents on its platinum program, which currently make up less than 10% of total agents.

Following decades of significant market share growth, Progressive faces increasingly cost-efficient competition from large carriers, while its new TAM places the firm in a competitive agency channels.

Progressive reported solid January results, but its stock still under performed the market by ~3% on the day as it became the latest to face the pressures of meeting elevated expectations in auto.

On Wednesday, Progressive reported earnings for October, including a continued deterioration in its commercial auto segment and lower catastrophe losses. All in, the underlying loss ratio deteriorated 2.1pts to 73.3%, and shares closed down 3.7%.

On Wednesday, Progressive reported somewhat disappointing earnings for September, including significant deterioration in its commercial auto results.

Farmers Insurance reviews its options, while Allstate predicts a potential expansion of partnerships of transport network companies.

Headline rate changes at lows not seen since 2007/8, in line with Q2:19 management commentary pointing to growth initiatives, and peak margins at leading firms.

The firm experienced around $28mn in unfavorable development – its 10th month of adverse out of the last 11.