The Progressive Corporation has revealed that its losses from the recent winter storms in the United States drove a $40 million reinsurance recovery for the firm, after claims exceeded its occurrence retention.Progressive’s property insurance business reported a net catastrophe loss ratio of 47.4%, driving a combined ratio for that segment of 143.7% for February 2021, due to the winter storm events.Some smaller catastrophe losses were also suffered in the personal lines and auto segments, but it seems the majority was due to property insurance line of business exposure to the storms.The winter storms drove catastrophe losses across Texas, Oregon and the south eastern United States Progressive said.

The result was that its total losses from one of the storm events, presumably the Texas related event which was the largest, exceeded the $80 million retention threshold on Progressive’s per-occurrence excess of loss reinsurance program for its property insurance business.As a result, a $40 million reinsurance recovery was recorded, as the storm drove incurred losses and loss adjustment expenses (ALAE) to trigger the XoL layer.– .

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