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Progressive (PGR) November Earnings & Revenues Increase Y/Y
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The Progressive Corporation (PGR - Free Report) reported earnings per share of $1.26 for November 2020, soaring 142% year over year. The upside is attributable to improved top line and net realized gains on securities.
In the past year, Progressive’s shares have gained 35.3% against the industry’s 3.3% decline.
Numbers in November
Progressive recorded net premiums written of $2.9 billion in the month, up 14% from $2.6 billion in the year-ago month. Net premiums earned were $3.1 billion, up 11% from $2.8 billion reported last November.
Net realized gains on securities in the months were $459.6 million, up from a gain of $150.3 million year over year.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 750 basis points (bps) year over year to 86.6.
Total operating revenues were $3.3 billion, improving 9.9% year over year, owing to a 10.7% increase in premiums, and a 31.2% jump in service revenues. However, 11.5% lower investment income was a drag.
Total expenses rose 2% to $2.8 billion, primarily because of 0.1% higher losses and loss adjustment expenses, and a 12.5% jump in policy acquisition costs and 4.1% higher other underwriting expenses in November 2020.
In November, policies in force were impressive for both Vehicle and Property businesses. In its vehicle business, the Personal Auto segment improved 11% year over year to 16.5 million. Special Lines increased 8% from the year-earlier month to 4.9 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 9% to 7.6 million, while Direct Auto increased 13% to 8.8 million.
Progressive’s Commercial Auto segment rose 9% year over year to 0.8 million. The Property business had 2.4 million policies in force in the reported month, up 13% year over year.
The company’s book value per share was $31.64 as of Nov 30, 2020, up 30.5% from $24.24 on Nov 30, 2019.
Return on equity in the trailing 12 months was 37.8%, up 370 bps from 34.1% in November 2019. Debt-to-total-capital ratio improved 100 bps year over year to 22.1 as of Nov 30, 2020.
Progressive currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked players in the property and casualty industry are Alleghany , Fidelity National Financial (FNF - Free Report) and First American Financial Corporation (FAF - Free Report) . While Alleghany sports a Zacks Rank #1 (Strong Buy) at present, Fidelity National and First American Financial carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany’s bottom line surpassed estimates in two of the last four quarters and missed the other two, the average beat being 34.08%.
Fidelity National Financial surpassed earnings estimates in each of the last four quarters, the average being 30.48%.
First American Financial surpassed estimates in three of the last four quarters and missed in the other one, the average beat being 16.83%.
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Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Progressive (PGR) November Earnings & Revenues Increase Y/Y
The Progressive Corporation (PGR - Free Report) reported earnings per share of $1.26 for November 2020, soaring 142% year over year. The upside is attributable to improved top line and net realized gains on securities.
In the past year, Progressive’s shares have gained 35.3% against the industry’s 3.3% decline.
Numbers in November
Progressive recorded net premiums written of $2.9 billion in the month, up 14% from $2.6 billion in the year-ago month. Net premiums earned were $3.1 billion, up 11% from $2.8 billion reported last November.
Net realized gains on securities in the months were $459.6 million, up from a gain of $150.3 million year over year.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 750 basis points (bps) year over year to 86.6.
Total operating revenues were $3.3 billion, improving 9.9% year over year, owing to a 10.7% increase in premiums, and a 31.2% jump in service revenues. However, 11.5% lower investment income was a drag.
Total expenses rose 2% to $2.8 billion, primarily because of 0.1% higher losses and loss adjustment expenses, and a 12.5% jump in policy acquisition costs and 4.1% higher other underwriting expenses in November 2020.
In November, policies in force were impressive for both Vehicle and Property businesses. In its vehicle business, the Personal Auto segment improved 11% year over year to 16.5 million. Special Lines increased 8% from the year-earlier month to 4.9 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 9% to 7.6 million, while Direct Auto increased 13% to 8.8 million.
Progressive’s Commercial Auto segment rose 9% year over year to 0.8 million. The Property business had 2.4 million policies in force in the reported month, up 13% year over year.
The company’s book value per share was $31.64 as of Nov 30, 2020, up 30.5% from $24.24 on Nov 30, 2019.
Return on equity in the trailing 12 months was 37.8%, up 370 bps from 34.1% in November 2019. Debt-to-total-capital ratio improved 100 bps year over year to 22.1 as of Nov 30, 2020.
Progressive currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked players in the property and casualty industry are Alleghany , Fidelity National Financial (FNF - Free Report) and First American Financial Corporation (FAF - Free Report) . While Alleghany sports a Zacks Rank #1 (Strong Buy) at present, Fidelity National and First American Financial carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany’s bottom line surpassed estimates in two of the last four quarters and missed the other two, the average beat being 34.08%.
Fidelity National Financial surpassed earnings estimates in each of the last four quarters, the average being 30.48%.
First American Financial surpassed estimates in three of the last four quarters and missed in the other one, the average beat being 16.83%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>