Progressive Insurance announces rate hike
Progressive Insurance is hiking its auto insurance rates to account for rising claims as drivers take to the roads again following last year’s pandemic-related lockdowns.
Progressive lowered its auto insurance rates last year when customers were driving less, according to a report by Cleveland.com. Thanks to claims rising as more drivers returned to the road, the insurer’s second-quarter earnings took a hit.
Progressive’s net income plummeted 56% to $790.1 million, or $1.34 per diluted share, in the second quarter of 2021, according to Cleveland.com. That’s despite the fact that the insurer wrote 13% more in premiums ($11.5 billion) in that quarter than in Q2 of 2020.
Read more: Progressive hit by sharp drop
On a conference call with securities analysts last week, Progressive president and CEO Tricia Griffith said the insurer would continue to bring rates up until the claims trend levels off, according to The Cleveland Business Journal.