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 (PGR) February Earnings and Revenues Increase
Read MoreHide Full Article
Shares of Progressive Corp.’s (PGR - Free Report) gained 0.7% in the last trading session after the company posted improved February results. Operating earnings per share of 23 cents surged nearly 44% year over year on higher revenues. Including net realized gains, net income per share jumped 35% year over year.
Progressive shares gained 13.6% year to date, outperforming the Property and Casualty Insurance industry’s increase of 5.47%, year to date. The share price appreciation was driven by the company’s sustained strong results.
Numbers in February
Progressive recorded net premiums written of $2.2 billion in Feb 2017, up 14% from $1.9 billion in the year-ago month. Net premiums earned were about $1.9 billion, up 13% year over year from $1.6 billion.
Net realized gains on securities in the quarter were $2.4 million compared with $10.2 million earned in the year-ago month. Combined ratio − the percentage of premiums paid out as claims and expenses − improved 300 basis points (bps) from the prior-year quarter to 90.4%.
Total operating revenue came in at $1.9 billion. The top line improved 13% year over year due to a 13% increase in premiums, 13% higher fees and other revenues, 7% rise in investment income and 15% growth in service revenues.
Total expense increased 9.5% to $1.7 billion. The rise in expenses can be primarily attributed to 9.1% higher losses and loss adjustment expenses, 14.1% rise in policy acquisition costs and 9% higher other underwriting expenses.
In Feb 2017, policies in force were impressive with the Personal Auto segment improving 7% year over year to 10.6 million. Special Lines inched up 3% from the prior-year month to 4.2 million.
In Progressive's Personal Auto segment, both Direct Auto and Agency Auto climbed 7% each to 5.2 million and 5.5 million, respectively.
Progressive’s Commercial Auto segment grew 7% year over year to 0.6 million. The Property business had about 1.3 million policies in force in the reported month, up 16% year over year.
Progressive’s book value per share was $14.49 as of Feb 28, 2017, up 15.2% from $12.58 as of Feb 29, 2016.
Return on equity on a trailing 12-month basis was 19.3%, up 670 bps from 13.6% in Feb 2016. Debt-to-total capital ratio too deteriorated 10 bps year over year to 27% as of Feb 28, 2017.
Zacks Rank and Other Insurers
Progressive sports a Zacks Rank #1 (Strong Buy). Investors interested in the property and casualty industry can also consider American Financial Group, Inc. (AFG - Free Report) , Selective Insurance Group, Inc. (SIGI - Free Report) and White Mountains Insurance Group, Ltd. (WTM - Free Report) . Each of these stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial Group engages primarily in property and casualty (P&C) insurance with focus on specialized commercial products for businesses. Shares of the company gained 8.9% year to date.
Selective Insurance provides insurance products and services in the United States. Its shares rallied 12.5% year to date.
White Mountains engages in insurance, reinsurance, and insurance services businesses. Its shares appreciated 8.5% year to date.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time. One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Progressive (PGR) February Earnings and Revenues Increase
Shares of Progressive Corp.’s (PGR - Free Report) gained 0.7% in the last trading session after the company posted improved February results. Operating earnings per share of 23 cents surged nearly 44% year over year on higher revenues. Including net realized gains, net income per share jumped 35% year over year.
Progressive shares gained 13.6% year to date, outperforming the Property and Casualty Insurance industry’s increase of 5.47%, year to date. The share price appreciation was driven by the company’s sustained strong results.
Numbers in February
Progressive recorded net premiums written of $2.2 billion in Feb 2017, up 14% from $1.9 billion in the year-ago month. Net premiums earned were about $1.9 billion, up 13% year over year from $1.6 billion.
Net realized gains on securities in the quarter were $2.4 million compared with $10.2 million earned in the year-ago month. Combined ratio − the percentage of premiums paid out as claims and expenses − improved 300 basis points (bps) from the prior-year quarter to 90.4%.
Total operating revenue came in at $1.9 billion. The top line improved 13% year over year due to a 13% increase in premiums, 13% higher fees and other revenues, 7% rise in investment income and 15% growth in service revenues.
Total expense increased 9.5% to $1.7 billion. The rise in expenses can be primarily attributed to 9.1% higher losses and loss adjustment expenses, 14.1% rise in policy acquisition costs and 9% higher other underwriting expenses.
In Feb 2017, policies in force were impressive with the Personal Auto segment improving 7% year over year to 10.6 million. Special Lines inched up 3% from the prior-year month to 4.2 million.
In Progressive's Personal Auto segment, both Direct Auto and Agency Auto climbed 7% each to 5.2 million and 5.5 million, respectively.
Progressive’s Commercial Auto segment grew 7% year over year to 0.6 million. The Property business had about 1.3 million policies in force in the reported month, up 16% year over year.
Progressive’s book value per share was $14.49 as of Feb 28, 2017, up 15.2% from $12.58 as of Feb 29, 2016.
Return on equity on a trailing 12-month basis was 19.3%, up 670 bps from 13.6% in Feb 2016. Debt-to-total capital ratio too deteriorated 10 bps year over year to 27% as of Feb 28, 2017.
Zacks Rank and Other Insurers
Progressive sports a Zacks Rank #1 (Strong Buy). Investors interested in the property and casualty industry can also consider American Financial Group, Inc. (AFG - Free Report) , Selective Insurance Group, Inc. (SIGI - Free Report) and White Mountains Insurance Group, Ltd. (WTM - Free Report) . Each of these stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial Group engages primarily in property and casualty (P&C) insurance with focus on specialized commercial products for businesses. Shares of the company gained 8.9% year to date.
Selective Insurance provides insurance products and services in the United States. Its shares rallied 12.5% year to date.
White Mountains engages in insurance, reinsurance, and insurance services businesses. Its shares appreciated 8.5% year to date.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time. One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>