We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Progressive August Earnings Decrease, Revenues Increase
Read MoreHide Full Article
Progressive Corp.’s (PGR - Free Report) operating earnings for Aug 2016 came in at 11 cents per share, down 31% from 16 cents earned in the year-ago month. Though revenues improved, a higher magnitude of expense increase weighed on the bottom line.
August Numbers
Progressive recorded $1.9 billion net premiums written, up 14% from $1.7 billion in the year-ago month. Net premiums earned of $1.8billion soared 13% from the year-ago comparable period.
Combined ratio, deteriorated 580 basis points (bps) from the prior-year month to 97.9%.
In August, policies in force were healthy, with the Personal Auto segment increasing 8% year over year to 10.3 million. Special Lines rose 3% year over year to 4.3 million.
In Progressive's Personal Auto segment, Direct Auto improved 10% year over year to 5.3 million policies and Agency Auto increased 5% to nearly 5 million. Progressive’s Commercial Auto segment showed a 12% improvement to 0.6 million policies on a year-over-year basis. The Property business had about 1.8 million policies in force in the reported month, up 11% year over year.
Total revenue grew 12% year over year to $1.8 billion, largely driven by higher premiums (up 13% year over year), fees revenues (10%), and service revenues (9%). However, 3% lower investment income limited the upside.
On the other hand, total expense increased 17.4% year over year to $2.2 billion in August. The major factors behind the rise in total expense were a 18.5% increase in losses and loss-adjustment expenses, a 11.8% increase in policy acquisition costs, and 3% higher other underwriting expenses.
Progressive reported book value per share of $13.83 on Aug 31, 2016, up 9% year over year.
Return on equity on a trailing 12-month basis was 16.1%, up 130 bps year over year. The debt-to-total capital ratio deteriorated 140 bps from the prior-year level to 28.2% as of Aug 31.
Confidential from ZacksBeyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Progressive August Earnings Decrease, Revenues Increase
Progressive Corp.’s (PGR - Free Report) operating earnings for Aug 2016 came in at 11 cents per share, down 31% from 16 cents earned in the year-ago month. Though revenues improved, a higher magnitude of expense increase weighed on the bottom line.
August Numbers
Progressive recorded $1.9 billion net premiums written, up 14% from $1.7 billion in the year-ago month. Net premiums earned of $1.8billion soared 13% from the year-ago comparable period.
Combined ratio, deteriorated 580 basis points (bps) from the prior-year month to 97.9%.
In August, policies in force were healthy, with the Personal Auto segment increasing 8% year over year to 10.3 million. Special Lines rose 3% year over year to 4.3 million.
In Progressive's Personal Auto segment, Direct Auto improved 10% year over year to 5.3 million policies and Agency Auto increased 5% to nearly 5 million. Progressive’s Commercial Auto segment showed a 12% improvement to 0.6 million policies on a year-over-year basis. The Property business had about 1.8 million policies in force in the reported month, up 11% year over year.
Total revenue grew 12% year over year to $1.8 billion, largely driven by higher premiums (up 13% year over year), fees revenues (10%), and service revenues (9%). However, 3% lower investment income limited the upside.
On the other hand, total expense increased 17.4% year over year to $2.2 billion in August. The major factors behind the rise in total expense were a 18.5% increase in losses and loss-adjustment expenses, a 11.8% increase in policy acquisition costs, and 3% higher other underwriting expenses.
Progressive reported book value per share of $13.83 on Aug 31, 2016, up 9% year over year.
Return on equity on a trailing 12-month basis was 16.1%, up 130 bps year over year. The debt-to-total capital ratio deteriorated 140 bps from the prior-year level to 28.2% as of Aug 31.
PROGRESSIVE COR Price
PROGRESSIVE COR Price | PROGRESSIVE COR Quote
Zacks Rank and Stocks to Consider
Progressive carries a Zacks Rank #3 (Hold). Some better-ranked P&C insurers are Allied World Assurance Company Holdings, AG (AWH - Free Report) , National Interstate Corporation (NATL - Free Report) and NMI Holdings, Inc. (NMIH - Free Report) . All these sport Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from ZacksBeyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>