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The Progressive Corporation’s (PGR - Free Report) second-quarter 2022 earnings per share of 95 cents, in line with the Zacks Consensus Estimate. The bottom line dropped 37.1% year over year.
The Progressive Corporation Price, Consensus and EPS Surprise
Net premiums written were $12.4 billion in the quarter, up 8% from $11.7 billion a year ago. Net premiums earned grew 13% to $12.1 billion.
Net realized loss on securities was $1.8 billion against a gain of $461.8 million in the year-ago quarter.
The combined ratio — the percentage of premiums paid out as claims and expenses — improved 90 basis points (bps) from the prior-year quarter’s level to 95.6.
June Numbers
Operating revenues were about $4 million, up 9.6% year over year. This improvement was driven by a 9% increase in premiums, 2.6% higher fees and other revenues, 2% increase in service revenues and 47% higher investment income.
Total expenses increased 8.8% year over year to $39 billion due to 4.4% higher losses and loss adjustment expenses and a 0.4% rise in other underwriting expenses. PGR wrote down goodwill associated with the ARX Holding Corp. acquisition of $224.8 million.
Policies in force were soft in the Personal Auto segment, having declined 2% from the year-ago month’s figure to 17.2 million. Special Lines improved 5% to 5.5 million.
In Progressive’s Personal Auto segment, Direct Auto was flat year over year at 9.6 million, while Agency Auto dropped 5% to 7.6 million.
Progressive’s Commercial Auto segment rose 12% year over year to 1 million. The Property business had 2.8 million policies in force, up 6%.
Financial Update
Progressive’s book value per share was $25.92 as of Jun 30, 2022, down 16.6% from $31.07 on Jun 30, 2021.
Return on equity in June 2022 was -10.7%, down 3920 bps year over year. Total debt-to-total capital ratio deteriorated 660 bps to 29.
RLI Corp. (RLI - Free Report) will report second-quarter 2022 results on Jul 20. The Zacks Consensus Estimate for the second quarter is pegged at $1.02, suggesting a decline of 6.4% from the year-ago quarter’s reported figure.
RLI’s bottom line beat estimates in the last four quarters.
The Travelers Companies Inc. (TRV - Free Report) will report second-quarter 2022 results on Jul 21. The Zacks Consensus Estimate for the first quarter is pegged at $2.00, suggesting a decline of 42% from the year-earlier quarter’s reported number.
TRV’s earnings beat estimates in the last four quarters.
Chubb Ltd. (CB - Free Report) is set to report second-quarter 2022 results on Jul 26. The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.62, indicating no change from the year-ago quarter’s reported figure.
Chubb delivered an earnings surprise in the last four reported quarters.
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Progressive (PGR) Q2 Earnings Meet Estimates, Premiums Rise Y/Y
The Progressive Corporation’s (PGR - Free Report) second-quarter 2022 earnings per share of 95 cents, in line with the Zacks Consensus Estimate. The bottom line dropped 37.1% year over year.
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 $12.4 billion in the quarter, up 8% from $11.7 billion a year ago. Net premiums earned grew 13% to $12.1 billion.
Net realized loss on securities was $1.8 billion against a gain of $461.8 million in the year-ago quarter.
The combined ratio — the percentage of premiums paid out as claims and expenses — improved 90 basis points (bps) from the prior-year quarter’s level to 95.6.
June Numbers
Operating revenues were about $4 million, up 9.6% year over year. This improvement was driven by a 9% increase in premiums, 2.6% higher fees and other revenues, 2% increase in service revenues and 47% higher investment income.
Total expenses increased 8.8% year over year to $39 billion due to 4.4% higher losses and loss adjustment expenses and a 0.4% rise in other underwriting expenses. PGR wrote down goodwill associated with the ARX Holding Corp. acquisition of $224.8 million.
Policies in force were soft in the Personal Auto segment, having declined 2% from the year-ago month’s figure to 17.2 million. Special Lines improved 5% to 5.5 million.
In Progressive’s Personal Auto segment, Direct Auto was flat year over year at 9.6 million, while Agency Auto dropped 5% to 7.6 million.
Progressive’s Commercial Auto segment rose 12% year over year to 1 million. The Property business had 2.8 million policies in force, up 6%.
Financial Update
Progressive’s book value per share was $25.92 as of Jun 30, 2022, down 16.6% from $31.07 on Jun 30, 2021.
Return on equity in June 2022 was -10.7%, down 3920 bps year over year. Total debt-to-total capital ratio deteriorated 660 bps to 29.
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 Corp. (RLI - Free Report) will report second-quarter 2022 results on Jul 20. The Zacks Consensus Estimate for the second quarter is pegged at $1.02, suggesting a decline of 6.4% from the year-ago quarter’s reported figure.
RLI’s bottom line beat estimates in the last four quarters.
The Travelers Companies Inc. (TRV - Free Report) will report second-quarter 2022 results on Jul 21. The Zacks Consensus Estimate for the first quarter is pegged at $2.00, suggesting a decline of 42% from the year-earlier quarter’s reported number.
TRV’s earnings beat estimates in the last four quarters.
Chubb Ltd. (CB - Free Report) is set to report second-quarter 2022 results on Jul 26. The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.62, indicating no change from the year-ago quarter’s reported figure.
Chubb delivered an earnings surprise in the last four reported quarters.