Progressive Corp Reports Low Income
By: Leon Castles
on Friday, April 13, 2012
Auto insurance is very much popular section since there are more car buyers in the United States but recently, Progressive Corp which is based in Mayfield Village, Cleveland, Ohio announced that they had low income in the month of March and in the first quarter of 2012. The company said that their income went down by 44% when compare to the records of 2011. It was revealed that the company’s net income was $76.3 million now as compare to $136.2 million in March 2011. The company has so far not revealed why their net income went down this year.
Progressive Corp also went ahead to say that their earnings per share also went down by 40% which is 13 cents now compare to 21 cents in the previous year. The company said that they tried to bring up the figures with better auto insurance schemes and by providing better services to the customers but the net income dropped by 29% in the first month itself. The company believes that this is because they consider this period as unfavorable prior accident reserve development period. The company has announced that although the earnings are down they will get back on track as they progress into the second quarter of the year.