Shares of Progressive Corp.’s (PGR - Free Report) gained 0.7% in the last trading session after the company posted improved February results. Operating earnings per share of 23 cents surged nearly 44% year over year on higher revenues. Including net realized gains, net income per share jumped 35% year over year.
Progressive shares gained 13.6% year to date, outperforming the Property and Casualty Insurance industry’s increase of 5.47%, year to date. The share price appreciation was driven by the company’s sustained strong results.
Numbers in February
Progressive recorded net premiums written of $2.2 billion in Feb 2017, up 14% from $1.9 billion in the year-ago month. Net premiums earned were about $1.9 billion, up 13% year over year from $1.6 billion.
Net realized gains on securities in the quarter were $2.4 million compared with $10.2 million earned in the year-ago month. Combined ratio − the percentage of premiums paid out as claims and expenses − improved 300 basis points (bps) from the prior-year quarter to 90.4%.
Total operating revenue came in at $1.9 billion. The top line improved 13% year over year due to a 13% increase in premiums, 13% higher fees and other revenues, 7% rise in investment income and 15% growth in service revenues.
Total expense increased 9.5% to $1.7 billion. The rise in expenses can be primarily attributed to 9.1% higher losses and loss adjustment expenses, 14.1% rise in policy acquisition costs and 9% higher other underwriting expenses.
In Feb 2017, policies in force were impressive with the Personal Auto segment improving 7% year over year to 10.6 million. Special Lines inched up 3% from the prior-year month to 4.2 million.
In Progressive's Personal Auto segment, both Direct Auto and Agency Auto climbed 7% each to 5.2 million and 5.5 million, respectively.
Progressive’s Commercial Auto segment grew 7% year over year to 0.6 million. The Property business had about 1.3 million policies in force in the reported month, up 16% year over year.
Progressive’s book value per share was $14.49 as of Feb 28, 2017, up 15.2% from $12.58 as of Feb 29, 2016.
Return on equity on a trailing 12-month basis was 19.3%, up 670 bps from 13.6% in Feb 2016. Debt-to-total capital ratio too deteriorated 10 bps year over year to 27% as of Feb 28, 2017.
Zacks Rank and Other Insurers
Progressive sports a Zacks Rank #1 (Strong Buy). Investors interested in the property and casualty industry can also consider American Financial Group, Inc. (AFG - Free Report) , Selective Insurance Group, Inc. (SIGI - Free Report) and White Mountains Insurance Group, Ltd. (WTM - Free Report) . Each of these stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial Group engages primarily in property and casualty (P&C) insurance with focus on specialized commercial products for businesses. Shares of the company gained 8.9% year to date.
Selective Insurance provides insurance products and services in the United States. Its shares rallied 12.5% year to date.
White Mountains engages in insurance, reinsurance, and insurance services businesses. Its shares appreciated 8.5% year to date.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time. One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of Progressive Corp.’s (PGR - Free Report) gained 0.7% in the last trading session after the company posted improved February results. Operating earnings per share of 23 cents surged nearly 44% year over year on higher revenues. Including net realized gains, net income per share jumped 35% year over year.
Progressive shares gained 13.6% year to date, outperforming the Property and Casualty Insurance industry’s increase of 5.47%, year to date. The share price appreciation was driven by the company’s sustained strong results.
Numbers in February
Progressive recorded net premiums written of $2.2 billion in Feb 2017, up 14% from $1.9 billion in the year-ago month. Net premiums earned were about $1.9 billion, up 13% year over year from $1.6 billion.
Net realized gains on securities in the quarter were $2.4 million compared with $10.2 million earned in the year-ago month. Combined ratio − the percentage of premiums paid out as claims and expenses − improved 300 basis points (bps) from the prior-year quarter to 90.4%.
Total operating revenue came in at $1.9 billion. The top line improved 13% year over year due to a 13% increase in premiums, 13% higher fees and other revenues, 7% rise in investment income and 15% growth in service revenues.
Total expense increased 9.5% to $1.7 billion. The rise in expenses can be primarily attributed to 9.1% higher losses and loss adjustment expenses, 14.1% rise in policy acquisition costs and 9% higher other underwriting expenses.
In Feb 2017, policies in force were impressive with the Personal Auto segment improving 7% year over year to 10.6 million. Special Lines inched up 3% from the prior-year month to 4.2 million.
In Progressive's Personal Auto segment, both Direct Auto and Agency Auto climbed 7% each to 5.2 million and 5.5 million, respectively.
Progressive’s Commercial Auto segment grew 7% year over year to 0.6 million. The Property business had about 1.3 million policies in force in the reported month, up 16% year over year.
Progressive’s book value per share was $14.49 as of Feb 28, 2017, up 15.2% from $12.58 as of Feb 29, 2016.
Return on equity on a trailing 12-month basis was 19.3%, up 670 bps from 13.6% in Feb 2016. Debt-to-total capital ratio too deteriorated 10 bps year over year to 27% as of Feb 28, 2017.
Zacks Rank and Other Insurers
Progressive sports a Zacks Rank #1 (Strong Buy). Investors interested in the property and casualty industry can also consider American Financial Group, Inc. (AFG - Free Report) , Selective Insurance Group, Inc. (SIGI - Free Report) and White Mountains Insurance Group, Ltd. (WTM - Free Report) . Each of these stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial Group engages primarily in property and casualty (P&C) insurance with focus on specialized commercial products for businesses. Shares of the company gained 8.9% year to date.
Selective Insurance provides insurance products and services in the United States. Its shares rallied 12.5% year to date.
White Mountains engages in insurance, reinsurance, and insurance services businesses. Its shares appreciated 8.5% year to date.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time. One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on PGR - FREE
Get the latest research report on AFG - FREE
Get the latest research report on WTM - FREE
Get the latest research report on SIGI - FREE