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Progressive's October Earnings Improve, Premiums Grow
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 27 cents for October, skyrocketing 126% year over year.
Improvement in the top line coupled with lower expenses drove the bottom line.
Year to date, Progressive’s shares have surged 45.5%, outperforming the industry’s rally of 10.8%. This share price rise was courtesy of the company’s sustained strong results.
Numbers in October
Progressive recorded net premiums written of $2.8 billion in October, up 22% from $2.3 billion in the year-ago month. Net premiums earned were about $2.6 billion, up 16% from $2.2 billion in the year-ago month.
Net realized gains on securities in the quarter were $2.2 million, down 58%year over year.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 460 basis points (bps) from the prior-year quarter to 92.5%.
Total operating revenues came in at $2.7 billion. The top line rallied 16% year over year owing to a 16% increase in premiums, 23% higher investment income, 22% improvement in fees and other revenues plus an 11% rise in service revenues.
Total expenses shot up 10.4% to $2.5 billion. This rise in expenses can be primarily attributed to 6.6% higher losses and loss adjustment expenses, 15.9% climb in policy acquisition costs and a 33% surge in other underwriting expenses.
In October, policies in force were impressive with the Personal Auto segment, having improved 11% year over year to nearly 11.6 million. Special Lines increased 2% from the prior-year month to 4.4 million.
In Progressive’s Personal Auto segment, Direct Auto expanded 12% to nearly 6 million while Agency Auto grew 11% to 5.6 million.
Progressive’s Commercial Auto segment rose 5% year over year to 0.6 million. The Property business had about 1.4 million policies in force in the reported month, up 19% year over year.
Progressive’s book value per share was $16.31 as of Oct 31, 2017, up 17.1% from $13.93 as of Oct 31, 2016.
Return on equity on a trailing 12-month basis was 20.3%, up 70 bps from 16.1% in October 2016. Debt-to-total-capital ratio improved 220 bps year over year to 25.9% as of Oct 31, 2017.
Zacks Rank and Other Insurers
Progressive carries a Zacks Rank #3 (Hold). Some better-ranked property and casualty insurers are Infinity Property and Casualty Corporation , NMI Holdings Inc. (NMIH - Free Report) and First American Financial Corporation (FAF - Free Report) .
Infinity Property and Casualty provides personal automobile insurance products in the United States. The company’s average four-quarter surprise is 300.65% and it sports a Zacks Rank #1 (Strong Buy). Shares have gained 22% year to date, outperforming the industry’s rally. You can see the complete list of today’s Zacks #1 Rank stocks here.
NMI Holdings provides private mortgage guaranty insurance services in the United States. The company’s average four-quarter surprise is 11.72% and it flaunts a Zacks Rank of 1. Shares have soared 52.1% year to date, outperforming the industry’s rally.
First American Financial provides financial services. The company’s average four-quarter surprise is 12.74% and it carries a Zacks Rank #2 (Buy). Shares have surged 48.3% year to date, outperforming the industry’s rally.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Progressive's October Earnings Improve, Premiums Grow
The Progressive Corporation (PGR - Free Report) reported earnings per share of 27 cents for October, skyrocketing 126% year over year.
Improvement in the top line coupled with lower expenses drove the bottom line.
Year to date, Progressive’s shares have surged 45.5%, outperforming the industry’s rally of 10.8%. This share price rise was courtesy of the company’s sustained strong results.
Numbers in October
Progressive recorded net premiums written of $2.8 billion in October, up 22% from $2.3 billion in the year-ago month. Net premiums earned were about $2.6 billion, up 16% from $2.2 billion in the year-ago month.
Net realized gains on securities in the quarter were $2.2 million, down 58%year over year.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 460 basis points (bps) from the prior-year quarter to 92.5%.
Total operating revenues came in at $2.7 billion. The top line rallied 16% year over year owing to a 16% increase in premiums, 23% higher investment income, 22% improvement in fees and other revenues plus an 11% rise in service revenues.
Total expenses shot up 10.4% to $2.5 billion. This rise in expenses can be primarily attributed to 6.6% higher losses and loss adjustment expenses, 15.9% climb in policy acquisition costs and a 33% surge in other underwriting expenses.
In October, policies in force were impressive with the Personal Auto segment, having improved 11% year over year to nearly 11.6 million. Special Lines increased 2% from the prior-year month to 4.4 million.
In Progressive’s Personal Auto segment, Direct Auto expanded 12% to nearly 6 million while Agency Auto grew 11% to 5.6 million.
Progressive’s Commercial Auto segment rose 5% year over year to 0.6 million. The Property business had about 1.4 million policies in force in the reported month, up 19% year over year.
Progressive’s book value per share was $16.31 as of Oct 31, 2017, up 17.1% from $13.93 as of Oct 31, 2016.
Return on equity on a trailing 12-month basis was 20.3%, up 70 bps from 16.1% in October 2016. Debt-to-total-capital ratio improved 220 bps year over year to 25.9% as of Oct 31, 2017.
Zacks Rank and Other Insurers
Progressive carries a Zacks Rank #3 (Hold). Some better-ranked property and casualty insurers are Infinity Property and Casualty Corporation , NMI Holdings Inc. (NMIH - Free Report) and First American Financial Corporation (FAF - Free Report) .
Infinity Property and Casualty provides personal automobile insurance products in the United States. The company’s average four-quarter surprise is 300.65% and it sports a Zacks Rank #1 (Strong Buy). Shares have gained 22% year to date, outperforming the industry’s rally. You can see the complete list of today’s Zacks #1 Rank stocks here.
NMI Holdings provides private mortgage guaranty insurance services in the United States. The company’s average four-quarter surprise is 11.72% and it flaunts a Zacks Rank of 1. Shares have soared 52.1% year to date, outperforming the industry’s rally.
First American Financial provides financial services. The company’s average four-quarter surprise is 12.74% and it carries a Zacks Rank #2 (Buy). Shares have surged 48.3% year to date, outperforming the industry’s rally.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>