Progressive's quarterly profit rises on higher auto insurance demand

The company's net income rose to $3.3 billion, or $5.67 per share, during the quarter, from $3.2 billion, or $5.40 per share, a year earlier.

"We still see limited upside in the stock until growth returns, which is highly a function of industry pricing that we do not expect to invert soon given still-strong industry margins", Oppenheimer analyst Michael Phillips said in a note.

• The Mayfield Village, Ohio-based insurer reported a 5% rise in net premiums written to $21.1 billion in the quarter.
• Progressive provides insurance for personal as well as commercial autos and trucks, motorcycles, boats, recreational vehicles and homes.
• The insurer's combined ratio was 87.3% for the reported quarter, compared with 86.2% a year ago.
• The insurer had 38.9 million personal insurance policies in force as of June 30, 8% higher than a year earlier. Its agency auto and direct auto policies were up 8% and 10%, respectively.