Jan 29 (Reuters) - Property and casualty insurance

company Progressive Corp ( PGR ) reported a 19% rise in its

fourth-quarter profit on Wednesday, driven by strong demand for

personal auto insurance policies.

WHY IT'S IMPORTANT

Insurance spending has remained resilient, as businesses and

individuals prioritize coverage to protect against risks. This

helped insurers attract and retain customers, despite rising

costs for policies.

However, increased frequency of severe weather events like

hurricanes, wildfires and other natural calamities are eating

into insurer's profit margins, leading to a hike in premium

prices to offset escalating risks.

BY THE NUMBERS

Net income of the insurer rose to $2.36 billion, or

$4.01 per share, in the three months ended Dec. 31, compared

with $1.99 billion, or $3.37 per share, a year ago.

Its net premiums written jumped 20% to $18.11 billion.

Combined ratio was at 87.9%, versus 88.7% last year. A ratio

below 100% means the insurer earned more in premiums than it

paid out in claims.

The insurer's personal insurance policies in force rose 18%

to 33.8 million in December, compared with the same month last

year. Commercial lines policies in December were also 4% higher

than the same month last year.

CONTEXT

Mayfield Village, Ohio-based Progressive provides insurance

for personal and commercial autos and trucks, motorcycles,

boats, recreational vehicles, and homes.

Founded in 1937, the company is the second largest personal

auto insurer in the U.S.

MARKET REACTION

Shares of Progressive were up 50.4% in 2024, outperforming

peers like Allstate ( ALL ) and Travelers, which rose

37.7% and 26.5%, respectively.