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) July Earnings Up, Premiums Rise Y/Y
Read MoreHide Full Article
The Progressive Corporation (PGR - Free Report) reported earnings per share of $1.17 for July 2022 that surged 171% year over year. The improvement stemmed from higher premiums and higher net realized gains on securities.
Image Source: Zacks Investment Research
July Numbers in Detail
Progressive recorded net premiums written of $4.9 billion, up 9% from $4.6 billion in the year-ago month. Net premiums earned were $4.7 billion, up 9% from $4.3 billion reported in the year-ago month.
Net realized gains on securities were $130 million, up 153% from the year-ago month.
The combined ratio — the percentage of premiums paid out as claims and expenses — improved 690 basis points (bps) year over year to 89.8.
Progressive’s operating revenues were $4.9 billion, improving 9.3% year over year, owing to an 8.8% increase in premiums, an 11.2% jump in service revenues, a 44.6% higher investment income and 3.3% higher fees.
Total expenses rose 1.3% to $4.3 billion, primarily on account of 1.6% higher losses and loss adjustment expenses and a 3.5% increase in other underwriting expenses.
In July, policies in force were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment declined 2% year over year to 17.2 million. Special Lines increased 5% from the year-earlier month to 5.5 million policies.
In Progressive’s Personal Auto segment, Agency Auto declined 5% to 7.6 million while Direct Auto remained flat at 9.6 million.
Progressive’s Commercial Auto segment rose 11% year over year to about 1 million. The Property business had 2.8 million policies in force in the reported month, up 5% year over year.
Progressive’s book value per share was $27.84 as of May 31, 2022, down 12.2% from $31.70 on Aug 30, 2021.
Return on equity in the trailing 12 months was -6.6%, having contracted 3180 bps from 25.5% in August 2021. The debt-to-total-capital ratio deteriorated 550 bps year over year to 27.6 as of Aug 30, 2022.
Price Performance
Progressive’s shares have gained 23.8% year to date, outperforming the industry’s increase of 2.4%.
Some better-ranked stocks from the insurance industry are W.R. Berkley Corporation (WRB - Free Report) , Arch Capital Group (ACGL - Free Report) and ProAssurance Corporation (PRA - Free Report) , each sporting a Zacks Rank #1.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.95%. Year to date, W.R. Berkley stock has gained 23.9%.
The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings per share indicates year-over-year increases of 50.6% and 10.4%, respectively.
Arch Capital’s earnings surpassed estimates in three of the last four quarters and missed in one, the average beat being 33.64%. Year to date, ACGL has gained 6.9%.
The Zacks Consensus Estimate for ACGL’s 2022 and 2023 earnings implies a 29.6% and 14.8% year-over-year increase, respectively.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average beat being 150.9%. Year to date, the insurer has lost 8.8%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 16.9% and 13.9% north, respectively, in the past seven days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Progressive's (PGR) July Earnings Up, Premiums Rise Y/Y
The Progressive Corporation (PGR - Free Report) reported earnings per share of $1.17 for July 2022 that surged 171% year over year. The improvement stemmed from higher premiums and higher net realized gains on securities.
Image Source: Zacks Investment Research
July Numbers in Detail
Progressive recorded net premiums written of $4.9 billion, up 9% from $4.6 billion in the year-ago month. Net premiums earned were $4.7 billion, up 9% from $4.3 billion reported in the year-ago month.
Net realized gains on securities were $130 million, up 153% from the year-ago month.
The combined ratio — the percentage of premiums paid out as claims and expenses — improved 690 basis points (bps) year over year to 89.8.
Progressive’s operating revenues were $4.9 billion, improving 9.3% year over year, owing to an 8.8% increase in premiums, an 11.2% jump in service revenues, a 44.6% higher investment income and 3.3% higher fees.
Total expenses rose 1.3% to $4.3 billion, primarily on account of 1.6% higher losses and loss adjustment expenses and a 3.5% increase in other underwriting expenses.
In July, policies in force were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment declined 2% year over year to 17.2 million. Special Lines increased 5% from the year-earlier month to 5.5 million policies.
In Progressive’s Personal Auto segment, Agency Auto declined 5% to 7.6 million while Direct Auto remained flat at 9.6 million.
Progressive’s Commercial Auto segment rose 11% year over year to about 1 million. The Property business had 2.8 million policies in force in the reported month, up 5% year over year.
Progressive’s book value per share was $27.84 as of May 31, 2022, down 12.2% from $31.70 on Aug 30, 2021.
Return on equity in the trailing 12 months was -6.6%, having contracted 3180 bps from 25.5% in August 2021. The debt-to-total-capital ratio deteriorated 550 bps year over year to 27.6 as of Aug 30, 2022.
Price Performance
Progressive’s shares have gained 23.8% year to date, outperforming the industry’s increase of 2.4%.
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.
Stocks to Consider
Some better-ranked stocks from the insurance industry are W.R. Berkley Corporation (WRB - Free Report) , Arch Capital Group (ACGL - Free Report) and ProAssurance Corporation (PRA - Free Report) , each sporting a Zacks Rank #1.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.95%. Year to date, W.R. Berkley stock has gained 23.9%.
The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings per share indicates year-over-year increases of 50.6% and 10.4%, respectively.
Arch Capital’s earnings surpassed estimates in three of the last four quarters and missed in one, the average beat being 33.64%. Year to date, ACGL has gained 6.9%.
The Zacks Consensus Estimate for ACGL’s 2022 and 2023 earnings implies a 29.6% and 14.8% year-over-year increase, respectively.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average beat being 150.9%. Year to date, the insurer has lost 8.8%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 16.9% and 13.9% north, respectively, in the past seven days.