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The Progressive Corporation’s (PGR - Free Report) first-quarter 2022 earnings per share of $1.12 missed the Zacks Consensus Estimate of $1.24. Also, the bottom line declined 34.9% from the year-ago quarter.
Shares of Progressive lost 3.2% in the pre-market trading session, reflecting the underperformance.
The Progressive Corporation Price, Consensus and EPS Surprise
Net premiums written were $13.2 billion in the quarter, up 12% from $11.7 billion a year ago. Net premiums earned grew 13% to nearly $11.8 billion.
Net realized loss on securities was $445.3 million against a gain of $585.3 million in the year-ago quarter.
The combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 520 basis points (bps) from the prior-year quarter to 94.7.
Operating revenues were $12.3 million, up 13.1% year over year. The improvement was driven by a 13% increase in premiums, 5% higher fees and other revenues, 25.8% increase in service revenues and 10% higher investment income. The top line beat the consensus estimate by 0.4%
Total expenses increased 19.6% year over year to $11.5 billion due to 24.6% higher losses and loss adjustment expenses, 1.7% rise in other underwriting expenses and a 10.2% increase in policy acquisition costs.
Impressive March Policies in Force
Policies in force were impressive in the Personal Auto segment, having improved 1% from the year-ago month to 17.3 million. Special Lines improved 6% to 5.3 million.
In Progressive’s Personal Auto segment, Direct Auto grew 2% year over year to 9.5 million while Agency Auto dropped 1% to 9.5 million.
Progressive’s Commercial Auto segment rose 16% year over year to about 1 million. The Property business had about 2.8 million policies in force, up 9%.
Financial Update
Progressive’s book value per share was $28.31 as of Mar 31, 2022, down 4.5% from $29.64 on Mar 31, 2021.
Return on equity in March 2022 was 2.1%, down 3630 bps year over year. Debt-to-total capital ratio deteriorated 400 bps to 27.2.
RLI Corporation (RLI - Free Report) will report first-quarter 2022 results on Apr 20. The Zacks Consensus Estimate for the first quarter is pegged at $1.02, suggesting an improvement of 17.2% year over year.
RLI beat estimates in all quarters of 2021.
W.R. Berkley Corporation (WRB - Free Report) will report first-quarter 2022 results on Apr 25. The Zacks Consensus Estimate for the first quarter is pegged at 92 cents, indicating an increase of 27.8% from the year-ago reported figure.
W.R. Berkley beat estimates in all four quarters of 2021.
Chubb Limited (CB - Free Report) is set to report first-quarter 2022 results on Apr 26. The Zacks Consensus Estimate for the first quarter is pegged at $3.55, indicating an increase of 40.9% from the year-ago reported figure.
Chubb delivered an earnings surprise in all the four quarters of 2021.
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Progressive (PGR) Q1 Earnings Miss, Revenues Beat Estimates
The Progressive Corporation’s (PGR - Free Report) first-quarter 2022 earnings per share of $1.12 missed the Zacks Consensus Estimate of $1.24. Also, the bottom line declined 34.9% from the year-ago quarter.
Shares of Progressive lost 3.2% in the pre-market trading session, reflecting the underperformance.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote
Behind the Headlines
Net premiums written were $13.2 billion in the quarter, up 12% from $11.7 billion a year ago. Net premiums earned grew 13% to nearly $11.8 billion.
Net realized loss on securities was $445.3 million against a gain of $585.3 million in the year-ago quarter.
The combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 520 basis points (bps) from the prior-year quarter to 94.7.
Operating revenues were $12.3 million, up 13.1% year over year. The improvement was driven by a 13% increase in premiums, 5% higher fees and other revenues, 25.8% increase in service revenues and 10% higher investment income. The top line beat the consensus estimate by 0.4%
Total expenses increased 19.6% year over year to $11.5 billion due to 24.6% higher losses and loss adjustment expenses, 1.7% rise in other underwriting expenses and a 10.2% increase in policy acquisition costs.
Impressive March Policies in Force
Policies in force were impressive in the Personal Auto segment, having improved 1% from the year-ago month to 17.3 million. Special Lines improved 6% to 5.3 million.
In Progressive’s Personal Auto segment, Direct Auto grew 2% year over year to 9.5 million while Agency Auto dropped 1% to 9.5 million.
Progressive’s Commercial Auto segment rose 16% year over year to about 1 million. The Property business had about 2.8 million policies in force, up 9%.
Financial Update
Progressive’s book value per share was $28.31 as of Mar 31, 2022, down 4.5% from $29.64 on Mar 31, 2021.
Return on equity in March 2022 was 2.1%, down 3630 bps year over year. Debt-to-total capital ratio deteriorated 400 bps to 27.2.
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
RLI Corporation (RLI - Free Report) will report first-quarter 2022 results on Apr 20. The Zacks Consensus Estimate for the first quarter is pegged at $1.02, suggesting an improvement of 17.2% year over year.
RLI beat estimates in all quarters of 2021.
W.R. Berkley Corporation (WRB - Free Report) will report first-quarter 2022 results on Apr 25. The Zacks Consensus Estimate for the first quarter is pegged at 92 cents, indicating an increase of 27.8% from the year-ago reported figure.
W.R. Berkley beat estimates in all four quarters of 2021.
Chubb Limited (CB - Free Report) is set to report first-quarter 2022 results on Apr 26. The Zacks Consensus Estimate for the first quarter is pegged at $3.55, indicating an increase of 40.9% from the year-ago reported figure.
Chubb delivered an earnings surprise in all the four quarters of 2021.