Back to top

Analyst Blog

Progressive Corp.’s (PGR - Analyst Report) earnings per share (EPS) for Jan 2013 were 22 cents, improving 81% from 12 cents in the year-ago period. Net income increased 79% to $134.2 million in the reported month.

The company recorded net premiums of $1.54 billion in the reported month, up 5% from $1.46 billion in the year-ago period. Net premiums earned were $1.59 billion, up 9% from $1.46 billion in the year-ago period.

Net realized gains on securities in Jan 2013 were $42.4 million, improving 256% from $11.9 million in the year-ago month. The combined ratio − the percentage of premiums paid out as claims and expenses − deteriorated 380 basis points (bps) from the prior-year month to 91.1% in the reported month.

Numbers in January

Progressive publishes monthly financial reports. During January, policies in force remained healthy, with the Personal Auto segment increasing 2% year over year but down 0.3% sequentially. Special Lines also increased 4% year over year, though it declined 0.2% from the preceding month.

In Personal Auto, Direct Auto reported growth of 3% year over year but inched down 0.1% from the preceding month. Agency Auto was up 2% year over year but down 0.5% from the last month. Progressive’s Commercial Auto segment reported an increase of 1% year over year but declined 0.5% sequentially.

Total expenses for the reported month increased 4% to $1.49 billion from $1.43 billion in Jan 2012. The major components contributing to the increase in total expenses were a 5% rise in losses and loss adjustment expenses and a 4% hike in other underwriting expenses.

Progressive reported book value per share of $10.21 as of Jan 31, 2013, up from $9.78 as of Jan 31, 2012 and from $9.94 as of Dec 31, 2012.

Return on equity in Jan 2013 was 17.1%, up from 15.9% in Jan 2012 but declining from 17.4% in Dec 2012. The debt-to-total-capital ratio was 25.1% as of Jan 31, 2013, down from 25.9% as of Jan 31, 2012 and from 25.6% as of Dec 31, 2012.

Progressive carries a Zacks Rank #3 (Hold). Other property and casualty insurers, Cincinnati Financial Corp. (CINF - Analyst Report), RLI Corp. (RLI - Analyst Report) and XL Group plc (XL - Analyst Report), carry a Zacks Rank #1 (Strong Buy) and appear impressive.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%