We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Progressive's (PGR) May Earnings Drop, Revenues Rise Y/Y
Read MoreHide Full Article
The Progressive Corporation (PGR - Free Report) reported earnings per share of 58 cents for May 2021, down 7% year over year. Improvement in the top line was offset by rise in expenses.
Progressive’s shares gained 14.9% in a year, underperforming the industry’s 39.7% increase.
Image Source: Zacks Investment Research
May Numbers in Detail
Progressive recorded net premiums written of $3.4 billion, up 7% from $3.2 billion in the year-ago month. Net premiums earned were $3.4 billion, up 13% from about $3 billion reported last May.
Net realized losses on securities of $146.3 million narrowed from a loss of $210.6 million in the year-ago month.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 60 basis points (bps) year over year to 93.1.
Total operating revenues were $3.5 billion, improving 12.7% year over year, owing to a 13.3% increase in premiums, 22.2% higher fee income and a 27.3% jump in service revenues. However, investment income, which was 16.8% lower, was a drag.
Total expenses rose 12.7% to $3.2 billion, primarily because of 50.8% higher losses and loss adjustment expenses and a 16.1% jump in policy acquisition costs.
In May, 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 17.5 million. Special Lines increased 10% from the year-earlier month to 5.2 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 9% to 8 million, while Direct Auto increased 13% to 9.5 million.
Progressive’s Commercial Auto segment rose 15% year over year to 0.9 million. The Property business had 2.6 million policies in force in the reported month, up 14% year over year.
The company’s book value per share was $30.90 as of May 31, 2021, up 16.2% from $26.60 on May 31, 2020.
Return on equity in the trailing 12 months was 31.7%, down 330 bps from 32.8% in May 2021. Debt-to-total-capital ratio deteriorated 260 bps year over year to 22.5 as of May 31, 2021.
Progressive currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks from the same industry are Selective Insurance Group (SIGI - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Alleghany .
W.R. Berkley delivered an earnings surprise of 21.35% in the last-reported quarter. It sports a Zacks Rank #1.
Alleghany delivered an earnings surprise of 110.97% in the last-reported quarter. It carries a Zacks Rank #2.
Time to Invest in Legal Marijuanaa
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential. Today, Download Marijuana Moneymakers FREE >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Progressive's (PGR) May Earnings Drop, Revenues Rise Y/Y
The Progressive Corporation (PGR - Free Report) reported earnings per share of 58 cents for May 2021, down 7% year over year. Improvement in the top line was offset by rise in expenses.
Progressive’s shares gained 14.9% in a year, underperforming the industry’s 39.7% increase.
May Numbers in Detail
Progressive recorded net premiums written of $3.4 billion, up 7% from $3.2 billion in the year-ago month. Net premiums earned were $3.4 billion, up 13% from about $3 billion reported last May.
Net realized losses on securities of $146.3 million narrowed from a loss of $210.6 million in the year-ago month.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 60 basis points (bps) year over year to 93.1.
Total operating revenues were $3.5 billion, improving 12.7% year over year, owing to a 13.3% increase in premiums, 22.2% higher fee income and a 27.3% jump in service revenues. However, investment income, which was 16.8% lower, was a drag.
Total expenses rose 12.7% to $3.2 billion, primarily because of 50.8% higher losses and loss adjustment expenses and a 16.1% jump in policy acquisition costs.
In May, 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 17.5 million. Special Lines increased 10% from the year-earlier month to 5.2 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 9% to 8 million, while Direct Auto increased 13% to 9.5 million.
Progressive’s Commercial Auto segment rose 15% year over year to 0.9 million. The Property business had 2.6 million policies in force in the reported month, up 14% year over year.
The company’s book value per share was $30.90 as of May 31, 2021, up 16.2% from $26.60 on May 31, 2020.
Return on equity in the trailing 12 months was 31.7%, down 330 bps from 32.8% in May 2021. Debt-to-total-capital ratio deteriorated 260 bps year over year to 22.5 as of May 31, 2021.
Progressive currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks from the same industry are Selective Insurance Group (SIGI - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Alleghany .
Selective Insurance delivered an earnings surprise of 75.26% in the last-reported quarter. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
W.R. Berkley delivered an earnings surprise of 21.35% in the last-reported quarter. It sports a Zacks Rank #1.
Alleghany delivered an earnings surprise of 110.97% in the last-reported quarter. It carries a Zacks Rank #2.
Time to Invest in Legal Marijuanaa
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>