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Progressive (PGR) November Earnings Decline, Revenues Up Y/Y
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 33 cents for November 2021, down 74% year over year. The decline was due to higher expenses and net realized loss on securities.
Progressive’s shares have gained 10.9% in the past six months against the industry’s decline of 1.9%.
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November Numbers in Detail
Progressive recorded net premiums written of $3.3 billion, up 11% from $2.9 billion in the year-ago month. Net premiums earned were $3.6 billion, up 14% from about $3.1 billion reported in the year-ago month.
Net realized loss on securities was $99.1 million versus a gain of $459.6 million in the year-ago month.
Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 530 basis points (bps) year over year to 91.9.
Progressive’s operating revenues were $3.7 billion, improving 13.5% year over year, owing to a 13.9% increase in premiums, 6.7% higher fees and a 21.6% jump in service revenues. However, 4.1% lower investment income was a partial drag.
Total expenses rose 20.5% to $3.4 billion, primarily on account of 26.3% higher losses and loss adjustment expenses, 23.9% increase in service expenses and an 11.9% rise in policy acquisition costs.
In November, policies in force were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment improved 6% year over year to 17.5 million. Special Lines increased 8% from the year-earlier month to 5.3 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 4% to 7.9 million while Direct Auto increased 8% to 9.6 million.
Progressive’s Commercial Auto segment rose 18% year over year to about 0.9 million. The Property business had 2.8 million policies in force in the reported month, up 12% year over year.
The company’s book value per share was $31.40 as of Nov 30, 2021, down 0.7% from $31.64 on Nov 30, 2020.
Return on equity in the trailing 12 months was 16%, having contracted 2180 bps from 37.8% in November 2020. The debt-to-total-capital ratio improved 150 bps year over year to 20.6 as of Nov 30, 2021.
Some better-ranked stocks from the same space include First American Financial (FAF - Free Report) , Axis Capital Holdings (AXS - Free Report) and Cincinnati Financial (CINF - Free Report) .
First American carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2021 and 2022 earnings has moved up 0.4% and 0.5%, respectively, in the past seven days. First American delivered a four-quarter average earnings surprise of 29.19%.
Axis Capital carries a Zacks Rank #2. Axis Capital delivered a four-quarter average earnings surprise of 60.14%. The Zacks Consensus Estimate for Axis Capital’s 2021 and 2022 earnings per share indicates a year-over-year increase of 302.4% and 31.8%, respectively.
Cincinnati Financial carries a Zacks Rank #2. The Zacks Consensus Estimate for 2021 and 2022 has moved up 1% and 5% in the past 60 days. Cincinnati Financial delivered a four-quarter average earnings surprise of 40.05%.
Shares of First American Financial, Axis Capital have gained 21.6% and 4.5%, respectively, while Cincinnati Financial has lost 0.8% in the past six months.
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Progressive (PGR) November Earnings Decline, Revenues Up Y/Y
The Progressive Corporation (PGR - Free Report) reported earnings per share of 33 cents for November 2021, down 74% year over year. The decline was due to higher expenses and net realized loss on securities.
Progressive’s shares have gained 10.9% in the past six months against the industry’s decline of 1.9%.
November Numbers in Detail
Progressive recorded net premiums written of $3.3 billion, up 11% from $2.9 billion in the year-ago month. Net premiums earned were $3.6 billion, up 14% from about $3.1 billion reported in the year-ago month.
Net realized loss on securities was $99.1 million versus a gain of $459.6 million in the year-ago month.
Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 530 basis points (bps) year over year to 91.9.
Progressive’s operating revenues were $3.7 billion, improving 13.5% year over year, owing to a 13.9% increase in premiums, 6.7% higher fees and a 21.6% jump in service revenues. However, 4.1% lower investment income was a partial drag.
Total expenses rose 20.5% to $3.4 billion, primarily on account of 26.3% higher losses and loss adjustment expenses, 23.9% increase in service expenses and an 11.9% rise in policy acquisition costs.
In November, policies in force were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment improved 6% year over year to 17.5 million. Special Lines increased 8% from the year-earlier month to 5.3 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 4% to 7.9 million while Direct Auto increased 8% to 9.6 million.
Progressive’s Commercial Auto segment rose 18% year over year to about 0.9 million. The Property business had 2.8 million policies in force in the reported month, up 12% year over year.
The company’s book value per share was $31.40 as of Nov 30, 2021, down 0.7% from $31.64 on Nov 30, 2020.
Return on equity in the trailing 12 months was 16%, having contracted 2180 bps from 37.8% in November 2020. The debt-to-total-capital ratio improved 150 bps year over year to 20.6 as of Nov 30, 2021.
Progressive currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks from the same space include First American Financial (FAF - Free Report) , Axis Capital Holdings (AXS - Free Report) and Cincinnati Financial (CINF - Free Report) .
First American carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2021 and 2022 earnings has moved up 0.4% and 0.5%, respectively, in the past seven days. First American delivered a four-quarter average earnings surprise of 29.19%.
Axis Capital carries a Zacks Rank #2. Axis Capital delivered a four-quarter average earnings surprise of 60.14%. The Zacks Consensus Estimate for Axis Capital’s 2021 and 2022 earnings per share indicates a year-over-year increase of 302.4% and 31.8%, respectively.
Cincinnati Financial carries a Zacks Rank #2. The Zacks Consensus Estimate for 2021 and 2022 has moved up 1% and 5% in the past 60 days. Cincinnati Financial delivered a four-quarter average earnings surprise of 40.05%.
Shares of First American Financial, Axis Capital have gained 21.6% and 4.5%, respectively, while Cincinnati Financial has lost 0.8% in the past six months.