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Progressive (PGR) Q2 Earnings Beat on Higher Premiums
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The Progressive Corporation’s (PGR - Free Report) second-quarter 2018 operating earnings per share of $1.15 beat the Zacks Consensus Estimate of $1.08. The bottom line soared nearly 95% year over year.
The Progressive Corporation Price, Consensus and EPS Surprise
Progressive recorded net premiums written of $8.1 billion in the quarter under review, up 20% from $6.7 billion in the year-ago period. Also, net premiums earned grew 21% year over year to $7.6 billion from $6 billion a year ago.
Net realized gains on securities were $32.8 million, up 2% from $32.1 million in the year-earlier quarter. Combined ratio — percentage of premiums paid out as claims and expenses — improved 230 basis points (bps) from the prior-year quarter to 90.9%.
Numbers in June 2018
Operating revenues rose 22% year over year to $2.5 billion. This top-line growth was driven by a 44% higher investment income, 21% rise in premiums earned, 28% increase in service revenues and 34% higher fees and other revenues.
Total expense increased 18.1% to nearly $2.3 billion. The increase can be primarily attributed to 17.5% higher loss and loss adjustment expenses, 22.9% increase in policy acquisition costs and 19% higher other underwriting expenses.
In June, policies in force were impressive at the Personal Auto segment, improving 16% from last June to 12.8 million. Special Lines inched up 1% from the prior-year month to 4.4 million.
In Progressive’s Personal Auto segment, Direct Auto grew 17% year over year to 6.7 million while Agency Auto improved 14% year over year to 6.1 million.
Progressive’s Commercial Auto segment grew 9% year over year to 0.7 million. The Property business had about 1.8 million policies in force in the reported month, up 35% year over year.
Progressive’s book value per share was $18.04 as of Jun 30, 2018, up 16.5% from $15.48 as of Jun 30, 2017.
Return-on-equity on a trailing 12-month basis was 22.3%, having expanded 340 bps from 17.4% in June 2017. Debt-to-total capital ratio improved 180 bps year over year to 27.3% as of Jun 30, 2018.
Investors interested in other top-ranked stocks from the same space can also consider Arch Capital Group Ltd. (ACGL - Free Report) , First American Financial Corporation (FAF - Free Report) and Everest Re Group, Ltd. , each carrying a Zacks Rank #2 (Buy).
Arch Capital is set to release second-quarter 2018 earnings on Jul 31 and the Zacks Consensus Estimate for the same period is pegged at 52 cents per share, reflecting a year-over-year surge of 30%.
First American Financial is slated to release second-quarter 2018 earnings on Jul 26 and the Zacks Consensus Estimate for the same period is $1.24 per share, registering a year-over-year rise of 26.5%.
Everest Re is set to release second-quarter 2018 earnings on Jul 30 and the consensus mark for the quarter to be reported stands at $6.38 per share, representing year-over-year growth of 15.8%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Progressive (PGR) Q2 Earnings Beat on Higher Premiums
The Progressive Corporation’s (PGR - Free Report) second-quarter 2018 operating earnings per share of $1.15 beat the Zacks Consensus Estimate of $1.08. The bottom line soared nearly 95% year over year.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation Price, Consensus and EPS Surprise | The Progressive Corporation Quote
Behind the Headlines
Progressive recorded net premiums written of $8.1 billion in the quarter under review, up 20% from $6.7 billion in the year-ago period. Also, net premiums earned grew 21% year over year to $7.6 billion from $6 billion a year ago.
Net realized gains on securities were $32.8 million, up 2% from $32.1 million in the year-earlier quarter. Combined ratio — percentage of premiums paid out as claims and expenses — improved 230 basis points (bps) from the prior-year quarter to 90.9%.
Numbers in June 2018
Operating revenues rose 22% year over year to $2.5 billion. This top-line growth was driven by a 44% higher investment income, 21% rise in premiums earned, 28% increase in service revenues and 34% higher fees and other revenues.
Total expense increased 18.1% to nearly $2.3 billion. The increase can be primarily attributed to 17.5% higher loss and loss adjustment expenses, 22.9% increase in policy acquisition costs and 19% higher other underwriting expenses.
In June, policies in force were impressive at the Personal Auto segment, improving 16% from last June to 12.8 million. Special Lines inched up 1% from the prior-year month to 4.4 million.
In Progressive’s Personal Auto segment, Direct Auto grew 17% year over year to 6.7 million while Agency Auto improved 14% year over year to 6.1 million.
Progressive’s Commercial Auto segment grew 9% year over year to 0.7 million. The Property business had about 1.8 million policies in force in the reported month, up 35% year over year.
Progressive’s book value per share was $18.04 as of Jun 30, 2018, up 16.5% from $15.48 as of Jun 30, 2017.
Return-on-equity on a trailing 12-month basis was 22.3%, having expanded 340 bps from 17.4% in June 2017. Debt-to-total capital ratio improved 180 bps year over year to 27.3% as of Jun 30, 2018.
Zacks Rank
Progressive sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Insurance Stocks Worth a Look
Investors interested in other top-ranked stocks from the same space can also consider Arch Capital Group Ltd. (ACGL - Free Report) , First American Financial Corporation (FAF - Free Report) and Everest Re Group, Ltd. , each carrying a Zacks Rank #2 (Buy).
Arch Capital is set to release second-quarter 2018 earnings on Jul 31 and the Zacks Consensus Estimate for the same period is pegged at 52 cents per share, reflecting a year-over-year surge of 30%.
First American Financial is slated to release second-quarter 2018 earnings on Jul 26 and the Zacks Consensus Estimate for the same period is $1.24 per share, registering a year-over-year rise of 26.5%.
Everest Re is set to release second-quarter 2018 earnings on Jul 30 and the consensus mark for the quarter to be reported stands at $6.38 per share, representing year-over-year growth of 15.8%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>