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Progressive (PGR) November Earnings and Revenues Rise Y/Y
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 75 cents for November 2022, which more than doubled year over year. The improvement stemmed from higher revenues, partially offset by higher expenses.
November Numbers in Detail
Progressive recorded net premiums written of $3.7 billion, up 12% from $3.3 billion in the year-ago month. Net premiums earned were about $4 billion, up 11% from $3.4 billion reported in the year-ago month.
Net realized loss on securities was $159.7 million compared with the year-ago loss of $99.1 million.
The combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 30 basis points (bps) year over year to 92.2.
Progressive’s operating revenues were $4.2 billion, improving 12.1% year over year, owing to an 11.1% increase in premiums, a 69.2% jump in investment income and 9% higher fees.
Total expenses increased 11.6% to $3.8 billion, largely due to 12.3% higher losses and loss adjustment expenses, 8.3% higher policy acquisition costs and an increase of 8.3% in other underwriting expenses.
In November, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment increased 2% year over year to 17.8 million. Special Lines increased 5% from the year-earlier month to 5.6 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF declined 2% to 7.7 million, while Direct Auto improved 5% to 10.1 million.
Progressive’s Commercial Auto segment rose 8% year over year to about 1 million. The Property business had 2.8 million policies in force in the reported month, up 3% year over year.
Progressive’s book value per share was $26.39 as of Nov 30, 2022, down 16% from $31.40 on Nov 30, 2021.
Return on equity in the trailing 12 months was -11.5%, having contracted 2750 bps from 16% in August 2021. The debt-to-total-capital ratio deteriorated 800 bps year over year to 28.6 as of Nov 30, 2022.
Price Performance
Progressive’s shares have rallied 23.3% year to date, outperforming the industry’s increase of 4.4%.
Some better-ranked stocks from the insurance industry are MGIC Investment Corporation (MTG - Free Report) , Root, Inc. (ROOT - Free Report) and W.R. Berkley Corporation (WRB - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGIC Investment’s earnings surpassed estimates in each of the last four quarters, the average being 36.34%. In the past year, MGIC Investment has lost 6.7%.
The Zacks Consensus Estimate for MTG’s 2022 and 2023 earnings has moved 12.1% and 0.4% north, respectively, in the past 60 days.
Root delivered a trailing four-quarter average earnings surprise of 22.44%. In the past year, ROOT has lost 91.1%.
The Zacks Consensus Estimate for ROOT’s 2022 and 2023 earnings indicates a respective year-over-year increase of 44.7% and 23.9%.
The bottom line of W.R. Berkley surpassed earnings estimates in each of the last four quarters, the average beat being 25.63%. In the past year, the insurer has gained 34.3%.
The Zacks Consensus Estimate for W.R. Berkley’s 2022 and 2023 earnings has moved 5.1% and 3.4% north, respectively, in the past 60 days.
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Progressive (PGR) November Earnings and Revenues Rise Y/Y
The Progressive Corporation (PGR - Free Report) reported earnings per share of 75 cents for November 2022, which more than doubled year over year. The improvement stemmed from higher revenues, partially offset by higher expenses.
November Numbers in Detail
Progressive recorded net premiums written of $3.7 billion, up 12% from $3.3 billion in the year-ago month. Net premiums earned were about $4 billion, up 11% from $3.4 billion reported in the year-ago month.
Net realized loss on securities was $159.7 million compared with the year-ago loss of $99.1 million.
The combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 30 basis points (bps) year over year to 92.2.
Progressive’s operating revenues were $4.2 billion, improving 12.1% year over year, owing to an 11.1% increase in premiums, a 69.2% jump in investment income and 9% higher fees.
Total expenses increased 11.6% to $3.8 billion, largely due to 12.3% higher losses and loss adjustment expenses, 8.3% higher policy acquisition costs and an increase of 8.3% in other underwriting expenses.
In November, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment increased 2% year over year to 17.8 million. Special Lines increased 5% from the year-earlier month to 5.6 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF declined 2% to 7.7 million, while Direct Auto improved 5% to 10.1 million.
Progressive’s Commercial Auto segment rose 8% year over year to about 1 million. The Property business had 2.8 million policies in force in the reported month, up 3% year over year.
Progressive’s book value per share was $26.39 as of Nov 30, 2022, down 16% from $31.40 on Nov 30, 2021.
Return on equity in the trailing 12 months was -11.5%, having contracted 2750 bps from 16% in August 2021. The debt-to-total-capital ratio deteriorated 800 bps year over year to 28.6 as of Nov 30, 2022.
Price Performance
Progressive’s shares have rallied 23.3% year to date, outperforming the industry’s increase of 4.4%.
Image Source: Zacks Investment Research
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 MGIC Investment Corporation (MTG - Free Report) , Root, Inc. (ROOT - Free Report) and W.R. Berkley Corporation (WRB - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGIC Investment’s earnings surpassed estimates in each of the last four quarters, the average being 36.34%. In the past year, MGIC Investment has lost 6.7%.
The Zacks Consensus Estimate for MTG’s 2022 and 2023 earnings has moved 12.1% and 0.4% north, respectively, in the past 60 days.
Root delivered a trailing four-quarter average earnings surprise of 22.44%. In the past year, ROOT has lost 91.1%.
The Zacks Consensus Estimate for ROOT’s 2022 and 2023 earnings indicates a respective year-over-year increase of 44.7% and 23.9%.
The bottom line of W.R. Berkley surpassed earnings estimates in each of the last four quarters, the average beat being 25.63%. In the past year, the insurer has gained 34.3%.
The Zacks Consensus Estimate for W.R. Berkley’s 2022 and 2023 earnings has moved 5.1% and 3.4% north, respectively, in the past 60 days.