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Progressive (PGR) Q3 Earnings Lag Estimates, Premiums Rise Y/Y
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The Progressive Corporation’s (PGR - Free Report) third-quarter 2022 earnings per share of 49 cents missed the Zacks Consensus Estimate of $1.24 as well as our estimate of $1.38. The bottom line however improved more than threefold from 14 cents earned in the year-ago quarter.
Shares of Progressive lost 1.3% in the pre-market trading session to reflect the underperformance.
The Progressive Corporation Price, Consensus and EPS Surprise
Net premiums written were $13 billion in the quarter, up 5% from $11.7 billion a year ago but missed our estimate of $14.2 billion.
Net premiums earned grew 9% to $12.4 billion, but missed our estimate of $13 billion.
Net realized loss on securities was $216.4 billion against a gain of $36.8 million in the year-ago quarter.
The combined ratio — the percentage of premiums paid out as claims and expenses — improved 120 basis points (bps) from the prior-year quarter’s level to 99.2
September Numbers
Operating revenues were about $4.1 billion, up 10.8% year over year. This improvement was driven by a 9.4% increase in premiums, 6.5% higher fees and other revenues, a 12% increase in service revenues and 80.5% higher investment income.
Total expenses increased 26.6% year over year to $4.6 billion due to 31.7% higher losses and loss adjustment expenses,4.5% higher policy acquisition costs and a 9.2% rise in other underwriting expenses.
Policies in force were soft in the Personal Auto segment, declining 1% from the year-ago month’s figure to 17.4 million. Special Lines improved 5% to 5.6 million.
In Progressive’s Personal Auto segment, Direct Auto increased 2% year over year to 9.8 million, while Agency Auto dropped 5% to 7.6 million.
Progressive’s Commercial Auto segment rose 9% year over year to 1 million. The Property business had 2.8 million policies in force, up 4%.
Financial Update
Progressive’s book value per share was $24.41 as of Sep 30, 2022, down 21% from $30.88 on Sep 30, 2021.
Return on equity in June 2022 was -15.9%, down 3530 bps year over year. The total debt-to-total capital ratio deteriorated 930 bps to 30.2.
RLI Corporation (RLI - Free Report) will report third-quarter 2022 earnings on Oct 19. The Zacks Consensus Estimate for the third quarter is pegged at 90 cents, suggesting an increase of 38.5% 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 third-quarter 2022 earnings on Oct 19. The Zacks Consensus Estimate for the third quarter is pegged at $1.83, suggesting a decline of 29.6% from the year-earlier quarter’s reported number.
TRV’s earnings beat estimates in the last four quarters.
Chubb Limited (CB - Free Report) is set to report third-quarter 2022 earnings on Oct 24. The Zacks Consensus Estimate for third -quarter earnings is pegged at $3.19, indicating an increase of 20.8% 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) Q3 Earnings Lag Estimates, Premiums Rise Y/Y
The Progressive Corporation’s (PGR - Free Report) third-quarter 2022 earnings per share of 49 cents missed the Zacks Consensus Estimate of $1.24 as well as our estimate of $1.38. The bottom line however improved more than threefold from 14 cents earned in the year-ago quarter.
Shares of Progressive lost 1.3% in the pre-market trading session to reflect 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 billion in the quarter, up 5% from $11.7 billion a year ago but missed our estimate of $14.2 billion.
Net premiums earned grew 9% to $12.4 billion, but missed our estimate of $13 billion.
Net realized loss on securities was $216.4 billion against a gain of $36.8 million in the year-ago quarter.
The combined ratio — the percentage of premiums paid out as claims and expenses — improved 120 basis points (bps) from the prior-year quarter’s level to 99.2
September Numbers
Operating revenues were about $4.1 billion, up 10.8% year over year. This improvement was driven by a 9.4% increase in premiums, 6.5% higher fees and other revenues, a 12% increase in service revenues and 80.5% higher investment income.
Total expenses increased 26.6% year over year to $4.6 billion due to 31.7% higher losses and loss adjustment expenses,4.5% higher policy acquisition costs and a 9.2% rise in other underwriting expenses.
Policies in force were soft in the Personal Auto segment, declining 1% from the year-ago month’s figure to 17.4 million. Special Lines improved 5% to 5.6 million.
In Progressive’s Personal Auto segment, Direct Auto increased 2% year over year to 9.8 million, while Agency Auto dropped 5% to 7.6 million.
Progressive’s Commercial Auto segment rose 9% year over year to 1 million. The Property business had 2.8 million policies in force, up 4%.
Financial Update
Progressive’s book value per share was $24.41 as of Sep 30, 2022, down 21% from $30.88 on Sep 30, 2021.
Return on equity in June 2022 was -15.9%, down 3530 bps year over year. The total debt-to-total capital ratio deteriorated 930 bps to 30.2.
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 third-quarter 2022 earnings on Oct 19. The Zacks Consensus Estimate for the third quarter is pegged at 90 cents, suggesting an increase of 38.5% 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 third-quarter 2022 earnings on Oct 19. The Zacks Consensus Estimate for the third quarter is pegged at $1.83, suggesting a decline of 29.6% from the year-earlier quarter’s reported number.
TRV’s earnings beat estimates in the last four quarters.
Chubb Limited (CB - Free Report) is set to report third-quarter 2022 earnings on Oct 24. The Zacks Consensus Estimate for third -quarter earnings is pegged at $3.19, indicating an increase of 20.8% from the year-ago quarter’s reported figure.
Chubb delivered an earnings surprise in the last four reported quarters.