The Progressive Corporation’s ( PGR Quick Quote PGR - Free Report) third-quarter 2020 earnings per share of $1.87 beat the Zacks Consensus Estimate of $1.69. Moreover, the bottom line increased 31.7% from the year-ago quarter. Behind the Headlines
Net premiums written were $11.1 billion in the quarter, up 14% from $9.6 billion a year ago. Net premiums earned grew 11% to nearly $10 billion.
Net realized gains on securities were $532.6 million, marking a nearly eight-fold increase year over year. Combined ratio — percentage of premiums paid out as claims and expenses — improved 410 basis points (bps) from the prior-year quarter to 87.8. The Progressive Corporation Price, Consensus and EPS Surprise Revenues Rise, Expenses Up
Operating revenues, in September, were $3.2 million, up 10.2% year over year. The improvement can be attributed to a 10.8% increase in premiums, 10.7% growth in fees and other revenues and 4.3% rise in service revenues. However, 10.1% lower investment income was a partial offset.
Total expenses increased 6.1% year over year to $2.8 billion due to 3.9% rise in losses and loss adjustment expenses, 12.6% higher other underwriting expenses, and 12% jump in policy acquisition costs. Expenses also include $3.1 million in policyholder credit costs. In September, policies in force were impressive at the Personal Auto segment, having improved 12% from the year-ago month to 16.3 million. Special Lines improved 7% to 4.9 million. In Progressive’s Personal Auto segment, Direct Auto grew 14% year over year to 8.8 million while Agency Auto improved 9% to 7.5 million. Progressive’s Commercial Auto segment rose 7% year over year to 0.8 million. The Property business had about 2.4 million policies in force in September, up 13%. Financial Update
Progressive’s book value per share was $30.04 as of Sep 30, 2020, up 28.9% from $23.31 on Sep 30, 2019.
Return-on-equity in September 2020 was 36.7%, up 400 bps year over year. Debt-to-total capital ratio improved 80 bps to 23%. Zacks Rank
Progressive currently carries a Zacks Rank #3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Upcoming Releases
W.R. Berkley Corporation (
WRB Quick Quote WRB - Free Report) is set to release third-quarter 2020 earnings on Oct 20. The Zacks Consensus Estimate for the same stands at 79 cents per share. The Travelers Companies ( TRV Quick Quote TRV - Free Report) is scheduled to release third-quarter 2020 earnings on Oct 20. The Zacks Consensus Estimate for the same stands at $3.02 per share. Cincinnati Financial Corporation ( CINF Quick Quote CINF - Free Report) is set to release third-quarter 2020 earnings on Oct 26. The Zacks Consensus Estimate for the same stands at 55 cents per share. Have You Seen Zacks’ 2020 Election Stock Report?
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