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Progressive's February Earnings Rise on Higher Revenues
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 41 cents for February 2018, soaring 78% year over year. The figure was driven by an improved top line.
Year to date, Progressive’s shares have gained 9%, outperforming the industry’s 4.9% increase. This rise was courtesy of the company’s sustained strong results.
Numbers in February
Progressive recorded net premiums written of $2.7 billion in the month, up 23% from $2.2 billion in the year-ago period. Net premiums earned were about $2.2 billion, up 19% from $1.9 billion last February.
Net realized loss on securities in the quarter was $139.6 million, comparing unfavorably with gain of $2.4 million in the prior-year quarter.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 260 basis points (bps) year over year to 87.8%.
Total operating revenues came in at $2.3 billion. The top line improved 18.9% year over year owing to an 18.9% increase in premiums, 23.1% higher investment income, 19.1% growth in fees and other revenues plus a 11.6% rise in service revenues
Total expenses shot up 15.4% to nearly $2 billion. This increase can be primarily attributed to 14.4% higher losses and loss adjustment expenses, 18.6% rise in policy acquisition costs and a 19% jump in other underwriting expenses.
In February, policies in force were impressive in both Vehicle and Property business. In its vehicle business, Personal Auto segment improved 14% year over year to nearly 12.1 million. Special Lines inched up 1% from the year-earlier month to 4.3 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 13% to 5.5 million while Direct Auto increased 14% to nearly 6.3 million.
Progressive’s Commercial Auto segment rose 8% year over year to 0.7 million. The Property business had about 1.6 million policies in force in the reported month, up 29% year over year.
Progressive’s book value per share was $16.59 as of Feb 28, 2018, up nearly 14.5% from $14.49 as of Feb 28, 2017.
Return on equity in the trailing 12 months was 20.4%, up 110 bps from 19.3% in February 2017. Debt-to-total-capital ratio improved 150 bps year over year to 25.5% as of Feb 28, 2018.
Shares bought back in February were worth nearly $4 million.
Infinity Property and Casualty provides personal automobile insurance products in the United States. The company’s average four-quarter positive surprise is 262.25%.
American Financial provides property and casualty insurance products in the United States. The company pulled off positive surprises in the trailing four quarters with an average beat of 26.3%.
CNA Financial provides commercial property and casualty insurance products, primarily in the United States. The company delivered an average four-quarter beat of 46.88%. The stock has a Zacks Rank of 2.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
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Progressive's February Earnings Rise on Higher Revenues
The Progressive Corporation (PGR - Free Report) reported earnings per share of 41 cents for February 2018, soaring 78% year over year. The figure was driven by an improved top line.
Year to date, Progressive’s shares have gained 9%, outperforming the industry’s 4.9% increase. This rise was courtesy of the company’s sustained strong results.
Numbers in February
Progressive recorded net premiums written of $2.7 billion in the month, up 23% from $2.2 billion in the year-ago period. Net premiums earned were about $2.2 billion, up 19% from $1.9 billion last February.
Net realized loss on securities in the quarter was $139.6 million, comparing unfavorably with gain of $2.4 million in the prior-year quarter.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 260 basis points (bps) year over year to 87.8%.
Total operating revenues came in at $2.3 billion. The top line improved 18.9% year over year owing to an 18.9% increase in premiums, 23.1% higher investment income, 19.1% growth in fees and other revenues plus a 11.6% rise in service revenues
Total expenses shot up 15.4% to nearly $2 billion. This increase can be primarily attributed to 14.4% higher losses and loss adjustment expenses, 18.6% rise in policy acquisition costs and a 19% jump in other underwriting expenses.
In February, policies in force were impressive in both Vehicle and Property business. In its vehicle business, Personal Auto segment improved 14% year over year to nearly 12.1 million. Special Lines inched up 1% from the year-earlier month to 4.3 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 13% to 5.5 million while Direct Auto increased 14% to nearly 6.3 million.
Progressive’s Commercial Auto segment rose 8% year over year to 0.7 million. The Property business had about 1.6 million policies in force in the reported month, up 29% year over year.
Progressive’s book value per share was $16.59 as of Feb 28, 2018, up nearly 14.5% from $14.49 as of Feb 28, 2017.
Return on equity in the trailing 12 months was 20.4%, up 110 bps from 19.3% in February 2017. Debt-to-total-capital ratio improved 150 bps year over year to 25.5% as of Feb 28, 2018.
Shares bought back in February were worth nearly $4 million.
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 , American Financial Group (AFG - Free Report) , and CNA Financial Corporation (CNA - Free Report) . Each of these carries a Zacks Rank 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infinity Property and Casualty provides personal automobile insurance products in the United States. The company’s average four-quarter positive surprise is 262.25%.
American Financial provides property and casualty insurance products in the United States. The company pulled off positive surprises in the trailing four quarters with an average beat of 26.3%.
CNA Financial provides commercial property and casualty insurance products, primarily in the United States. The company delivered an average four-quarter beat of 46.88%. The stock has a Zacks Rank of 2.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>