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Progressives (PGR) October Earnings and Revenues Rise Y/Y
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 68 cents for October 2023, up 6.3% year over year. The improvement stemmed from higher revenues, partially offset by an increase in expenses.
October Numbers in Detail
Progressive recorded net premiums written of $5.5 billion, up 6.6% from $5.2 billion in the year-ago month. Net premiums earned were about $5.4 billion, up 10.5% from $4.9 billion reported in the year-ago month.
Net realized loss on securities was $87.1 million against the year-ago income of $178.6 million.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 420 basis points (bps) year over year to 91.7.
PGR’s operating revenues were $5.7 billion, improving 11.4% year over year, owing to a 10.5% increase in premiums, a 55.4% jump in investment income and 12.3% higher fees.
Image Source: Zacks Investment Research
Total expenses increased 5.8% to $5.1 billion, largely due to 7.5% higher losses and loss adjustment expenses and 3.9% higher policy acquisition costs.
In October, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment’s PIF increased 10% year over year to 19.5 million. Special Lines increased 7% from the year-earlier month to 6 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 9% to 8.3 million, while Direct Auto improved 11% to 11.1 million.
PGR’s Commercial Auto segment rose 6% year over year to 1.1 million policies. The Property business had 3 million policies in force in the reported month, up 6% year over year.
The company’s book value per share was $28.19 as of Oct 31, 2023, up 14.2% from $24.68 on Oct 31, 2022.
In the trailing 12 months, the return on equity was 17.3%, having improved 3,360 bps from (16.3%) in October 2022. The debt-to-total-capital ratio improved 180 bps year over year to 28.2 as of Oct 31, 2023.
Price Performance
Progressive’s shares have gained 21.5% year to date (YTD) compared with the industry’s growth of 11.4%.
Arch Capital’s earnings surpassed estimates in all the last four quarters, the average beat being 35.16%. The stock has gained 34.1% year to date and sports Zacks Rank #1.
The Zacks Consensus Estimate for ACGL’s 2023 and 2024 earnings indicates a year-over-year increase of 53.4% and 3.8%, respectively. The expected long-term earnings growth is 10%. The consensus estimate for 2023 and 2024 earnings has moved up 7.6% and 2.6%, respectively, in the last 30 days.
Berkshire delivered a trailing four-quarter average earnings surprise of 0.20%. YTD, the stock has gained 16.5%. It carries Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for BRK.B’ 2023 and 2024 earnings indicates a year-over-year increase of 16.2% and 10.8%, respectively. The expected long-term earnings growth is 7%. The consensus estimate for BRK.B’ 2023 and 2024 earnings has moved up 2.6% and 1.9%, respectively, in the past 30 days.
Chubb’s earnings surpassed estimates in three of the last four quarters, while missing in the other one, the average being 6.51%. YTD, the stock has gained 0.8%. It carries a Zacks Rank #2
The Zacks Consensus Estimate for CB’s 2023 and 2024 earnings implies a year-over-year rise of 25.9% and 7.3% respectively. The expected long-term earnings growth rate is 10%. The consensus estimate for CB’s 2023 and 2024 earnings has moved up 4.4% and 3.2%, respectively, in the past 30 days.
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Progressives (PGR) October Earnings and Revenues Rise Y/Y
The Progressive Corporation (PGR - Free Report) reported earnings per share of 68 cents for October 2023, up 6.3% year over year. The improvement stemmed from higher revenues, partially offset by an increase in expenses.
October Numbers in Detail
Progressive recorded net premiums written of $5.5 billion, up 6.6% from $5.2 billion in the year-ago month. Net premiums earned were about $5.4 billion, up 10.5% from $4.9 billion reported in the year-ago month.
Net realized loss on securities was $87.1 million against the year-ago income of $178.6 million.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 420 basis points (bps) year over year to 91.7.
PGR’s operating revenues were $5.7 billion, improving 11.4% year over year, owing to a 10.5% increase in premiums, a 55.4% jump in investment income and 12.3% higher fees.
Image Source: Zacks Investment Research
Total expenses increased 5.8% to $5.1 billion, largely due to 7.5% higher losses and loss adjustment expenses and 3.9% higher policy acquisition costs.
In October, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment’s PIF increased 10% year over year to 19.5 million. Special Lines increased 7% from the year-earlier month to 6 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 9% to 8.3 million, while Direct Auto improved 11% to 11.1 million.
PGR’s Commercial Auto segment rose 6% year over year to 1.1 million policies. The Property business had 3 million policies in force in the reported month, up 6% year over year.
The company’s book value per share was $28.19 as of Oct 31, 2023, up 14.2% from $24.68 on Oct 31, 2022.
In the trailing 12 months, the return on equity was 17.3%, having improved 3,360 bps from (16.3%) in October 2022. The debt-to-total-capital ratio improved 180 bps year over year to 28.2 as of Oct 31, 2023.
Price Performance
Progressive’s shares have gained 21.5% year to date (YTD) compared with the industry’s growth of 11.4%.
Zacks Rank
Progressive currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some better-ranked stocks from the same space are Arch Capital Group (ACGL - Free Report) , Berkshire Hathaway (BRK.B - Free Report) and Chubb Limited (CB - Free Report) .
Arch Capital’s earnings surpassed estimates in all the last four quarters, the average beat being 35.16%. The stock has gained 34.1% year to date and sports Zacks Rank #1.
The Zacks Consensus Estimate for ACGL’s 2023 and 2024 earnings indicates a year-over-year increase of 53.4% and 3.8%, respectively. The expected long-term earnings growth is 10%. The consensus estimate for 2023 and 2024 earnings has moved up 7.6% and 2.6%, respectively, in the last 30 days.
Berkshire delivered a trailing four-quarter average earnings surprise of 0.20%. YTD, the stock has gained 16.5%. It carries Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for BRK.B’ 2023 and 2024 earnings indicates a year-over-year increase of 16.2% and 10.8%, respectively. The expected long-term earnings growth is 7%. The consensus estimate for BRK.B’ 2023 and 2024 earnings has moved up 2.6% and 1.9%, respectively, in the past 30 days.
Chubb’s earnings surpassed estimates in three of the last four quarters, while missing in the other one, the average being 6.51%. YTD, the stock has gained 0.8%. It carries a Zacks Rank #2
The Zacks Consensus Estimate for CB’s 2023 and 2024 earnings implies a year-over-year rise of 25.9% and 7.3% respectively. The expected long-term earnings growth rate is 10%. The consensus estimate for CB’s 2023 and 2024 earnings has moved up 4.4% and 3.2%, respectively, in the past 30 days.