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Progressive (PGR) November Earnings Rise on Higher Revenues
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 76 cents for January 2023, which surged 19-fold year over year. The improvement stemmed from higher premiums improved revenues and net realized gains on securities.
November Numbers in Detail
Progressive recorded net premiums written of $5.3 billion, up 16% in the year-ago month. Net premiums earned were about $5 billion, up 13% from the year-ago month.
Net realized gains on securities were $245.6 million compared with the year-ago loss of $347.9 million.
The combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 310 basis points (bps) year over year to 96.
Progressive’s operating revenues were $5.3 billion, improving 13.7% year over year, owing to a 13% increase in premiums, an 84% jump in investment income and 14% higher fees and other revenues.
Total expenses increased 16% to $4.9 billion, largely driven by 12.3% higher losses and loss adjustment expenses, policy acquisition costs, other underwriting expenses, service expenses and interest expenses.
In November, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment increased 5% year over year to 18.3 million. Special Lines increased 5% from the year-earlier month to 5.6 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 1% to 7.9 million, while Direct Auto improved 9% to 10.4 million.
Progressive’s Commercial Auto segment rose 7% 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 $28.05 as of Jan 31, 2023, down 5.4% from $29.66 on Jan 31, 2022.
Return on equity in the trailing 12 months was -4.7%, compared with 8.9% in January 2022. The debt-to-total-capital ratio deteriorated 590 bps year over year to 27.4 as of Jan 31, 2023.
Price Performance
Progressive’s shares have rallied 34.9% in the past year, outperforming the industry’s increase of 1.3%.
Some better-ranked stocks from the property and casualty insurance industry are Axis Capital Holdings Limited (AXS - Free Report) , Everest Re Group, Ltd. and CNA Financial Corporation (CNA - Free Report) . While Axis Capital and Everest Re sport a Zacks Rank #1, CNA Financial carries a Zacks Rank #2 (Buy).
Axis Capital beat estimates in three of the last four quarters and missed in one, the average being 5.70%. The Zacks Consensus Estimate for both 2023 and 2024 has moved 0.1% north in the past seven days.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings per share is pegged at $7.53 and $8.42, indicating a year-over-year increase of 29.6% and 11.7%, respectively. In the past year, AXS has gained 9%.
The Zacks Consensus Estimate for Everest Re’s 2023 and 2024 earnings per share is pegged at $44.68 and $51.29, indicating a year-over-year increase of 64.9% and 14.7%, respectively. In the past year, RE has gained 25.3%.
Everest Re beat estimates in each of the last four quarters, the average being 18.41%.
The Zacks Consensus Estimate for CNA Financials’ 2023 and 2024 earnings per share is pegged at $4.25 and $4.41, indicating a year-over-year increase of 10.6% and 3.8%, respectively. In the past year, CNA has lost 9%.
The Zacks Consensus Estimate for CNA’s 2023 and 2024 earnings has moved 4.2% and 14.8% north in the past 30 days.
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Progressive (PGR) November Earnings Rise on Higher Revenues
The Progressive Corporation (PGR - Free Report) reported earnings per share of 76 cents for January 2023, which surged 19-fold year over year. The improvement stemmed from higher premiums improved revenues and net realized gains on securities.
November Numbers in Detail
Progressive recorded net premiums written of $5.3 billion, up 16% in the year-ago month. Net premiums earned were about $5 billion, up 13% from the year-ago month.
Net realized gains on securities were $245.6 million compared with the year-ago loss of $347.9 million.
The combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 310 basis points (bps) year over year to 96.
Progressive’s operating revenues were $5.3 billion, improving 13.7% year over year, owing to a 13% increase in premiums, an 84% jump in investment income and 14% higher fees and other revenues.
Total expenses increased 16% to $4.9 billion, largely driven by 12.3% higher losses and loss adjustment expenses, policy acquisition costs, other underwriting expenses, service expenses and interest expenses.
In November, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment increased 5% year over year to 18.3 million. Special Lines increased 5% from the year-earlier month to 5.6 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 1% to 7.9 million, while Direct Auto improved 9% to 10.4 million.
Progressive’s Commercial Auto segment rose 7% 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 $28.05 as of Jan 31, 2023, down 5.4% from $29.66 on Jan 31, 2022.
Return on equity in the trailing 12 months was -4.7%, compared with 8.9% in January 2022. The debt-to-total-capital ratio deteriorated 590 bps year over year to 27.4 as of Jan 31, 2023.
Price Performance
Progressive’s shares have rallied 34.9% in the past year, outperforming the industry’s increase of 1.3%.
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 property and casualty insurance industry are Axis Capital Holdings Limited (AXS - Free Report) , Everest Re Group, Ltd. and CNA Financial Corporation (CNA - Free Report) . While Axis Capital and Everest Re sport a Zacks Rank #1, CNA Financial carries a Zacks Rank #2 (Buy).
Axis Capital beat estimates in three of the last four quarters and missed in one, the average being 5.70%. The Zacks Consensus Estimate for both 2023 and 2024 has moved 0.1% north in the past seven days.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings per share is pegged at $7.53 and $8.42, indicating a year-over-year increase of 29.6% and 11.7%, respectively. In the past year, AXS has gained 9%.
The Zacks Consensus Estimate for Everest Re’s 2023 and 2024 earnings per share is pegged at $44.68 and $51.29, indicating a year-over-year increase of 64.9% and 14.7%, respectively. In the past year, RE has gained 25.3%.
Everest Re beat estimates in each of the last four quarters, the average being 18.41%.
The Zacks Consensus Estimate for CNA Financials’ 2023 and 2024 earnings per share is pegged at $4.25 and $4.41, indicating a year-over-year increase of 10.6% and 3.8%, respectively. In the past year, CNA has lost 9%.
The Zacks Consensus Estimate for CNA’s 2023 and 2024 earnings has moved 4.2% and 14.8% north in the past 30 days.