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Progressive (PGR) Q3 Earnings Top Estimates on Solid Revenues
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The Progressive Corporation’s (PGR - Free Report) third-quarter 2018 operating earnings per share of $1.32 beat the Zacks Consensus Estimate of $1.14. The bottom line skyrocketed about 178% year over year.
The Progressive Corporation Price, Consensus and EPS Surprise
Progressive recorded net premiums written of $8.6 billion in the quarter under review, up 20% from $7.1 billion in the year-ago period. Also, net premiums earned grew 21% year over year to $7.9 billion from $6.5 billion a year ago.
Net realized gains on securities were $182.4 million, reversing the year-ago loss of $24.7 million in the year-earlier quarter. Combined ratio — percentage of premiums paid out as claims and expenses — improved 710 basis points (bps) from the prior-year quarter’s level to 90.3%.
Numbers in September 2018
Operating revenues rose 21.7% year over year to $2.6 billion. This top-line growth was driven by 56.1% higher investment income, 20.9% rise in premiums earned, 38% rise in service revenues and 18% higher fees as well as other revenues.
Total expense increased 9.3% to nearly $2.3 billion. This upside can be primarily attributed to 5% wider loss and loss adjustment expenses, 21.8% increase in policy acquisition costs and 26.2% higher other underwriting expenses.
In September, policies in force were impressive at the Personal Auto segment, having improved 15% from last September’s tally to 13.1 million. Special Lines inched up 1% from the prior-year month’s figure to 4.4 million.
In Progressive’s Personal Auto segment, Direct Auto grew 17% year over year to 6.9 million while Agency Auto improved 13% year over year to 6.2 million.
Progressive’s Commercial Auto segment rose 8% year over year to 0.7 million. The Property business had about 1.9 million policies in force in the reported month, up 36% year over year.
Progressive’s book value per share was $19.49 as of Sep 30, 2018, up 22% from $15.97 as of Sep 30, 2017.
Return-on-equity on a trailing 12-month basis was 27.1%, having expanded 870 bps from 18.4% in September 2017. Debt-to-total capital ratio improved 170 bps year over year to 24.6% as of Jun 30, 2018.
Investors interested in other top-ranked stocks from the same space can also consider Cincinnati Financial Corporation (CINF - Free Report) , Markel Corporation (MKL - Free Report) and Berkshire Hathaway Inc. (BRK.B - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Cincinnati Financial will report third-quarter 2018 earnings on Oct 25 and the Zacks Consensus Estimate for the same period is pegged at 78 cents per share, reflecting a year-over-year surge of 34.5%.
Markel is slated to announce third-quarter 2018 earnings on Oct 24 and the consensus estimate for the same time frame stands at $8.99 per share, registering a year-over-year rise of 14.8%.
Berkshire Hathaway is set to release third-quarter 2018 earnings on Nov 2 and the consensus mark for the quarter to be reported is projected at $2.47 per share, representing year-over-year growth of 76.4%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Progressive (PGR) Q3 Earnings Top Estimates on Solid Revenues
The Progressive Corporation’s (PGR - Free Report) third-quarter 2018 operating earnings per share of $1.32 beat the Zacks Consensus Estimate of $1.14. The bottom line skyrocketed about 178% 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 $8.6 billion in the quarter under review, up 20% from $7.1 billion in the year-ago period. Also, net premiums earned grew 21% year over year to $7.9 billion from $6.5 billion a year ago.
Net realized gains on securities were $182.4 million, reversing the year-ago loss of $24.7 million in the year-earlier quarter. Combined ratio — percentage of premiums paid out as claims and expenses — improved 710 basis points (bps) from the prior-year quarter’s level to 90.3%.
Numbers in September 2018
Operating revenues rose 21.7% year over year to $2.6 billion. This top-line growth was driven by 56.1% higher investment income, 20.9% rise in premiums earned, 38% rise in service revenues and 18% higher fees as well as other revenues.
Total expense increased 9.3% to nearly $2.3 billion. This upside can be primarily attributed to 5% wider loss and loss adjustment expenses, 21.8% increase in policy acquisition costs and 26.2% higher other underwriting expenses.
In September, policies in force were impressive at the Personal Auto segment, having improved 15% from last September’s tally to 13.1 million. Special Lines inched up 1% from the prior-year month’s figure to 4.4 million.
In Progressive’s Personal Auto segment, Direct Auto grew 17% year over year to 6.9 million while Agency Auto improved 13% year over year to 6.2 million.
Progressive’s Commercial Auto segment rose 8% year over year to 0.7 million. The Property business had about 1.9 million policies in force in the reported month, up 36% year over year.
Progressive’s book value per share was $19.49 as of Sep 30, 2018, up 22% from $15.97 as of Sep 30, 2017.
Return-on-equity on a trailing 12-month basis was 27.1%, having expanded 870 bps from 18.4% in September 2017. Debt-to-total capital ratio improved 170 bps year over year to 24.6% as of Jun 30, 2018.
Zacks Rank
Progressive carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Insurance Stocks Worth a Look
Investors interested in other top-ranked stocks from the same space can also consider Cincinnati Financial Corporation (CINF - Free Report) , Markel Corporation (MKL - Free Report) and Berkshire Hathaway Inc. (BRK.B - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Cincinnati Financial will report third-quarter 2018 earnings on Oct 25 and the Zacks Consensus Estimate for the same period is pegged at 78 cents per share, reflecting a year-over-year surge of 34.5%.
Markel is slated to announce third-quarter 2018 earnings on Oct 24 and the consensus estimate for the same time frame stands at $8.99 per share, registering a year-over-year rise of 14.8%.
Berkshire Hathaway is set to release third-quarter 2018 earnings on Nov 2 and the consensus mark for the quarter to be reported is projected at $2.47 per share, representing year-over-year growth of 76.4%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>