We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 (PGR) November Earnings Rise Y/Y on Higher Premiums
Read MoreHide Full Article
The Progressive Corporation (PGR - Free Report) reported earnings per share of $1.15 for November 2023, up 53.3% year over year. The improvement stemmed from higher revenues, partially offset by an increase in expenses.
November Numbers in Detail
Progressive recorded net premiums written of $4.7 billion, up 27.7% from $3.7 billion in the year-ago month. Net premiums earned were about $5.1 billion, up 27.3% from $4 billion reported in the year-ago month.
Net realized gain on securities was $246.5 million, up 24.4% year over year.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 110 basis points (bps) year over year to 91.1.
PGR’s operating revenues were $5.4 billion, improving 27.9% year over year, owing to a 27.3% increase in premiums, a 51% jump in investment income, 18.2% increase in service fees and 25.3% higher fees.
Total expenses increased 25.6% to $4.8 billion, largely due to 28.9% higher losses and loss adjustment expenses, 7.4% higher other underwriting expenses and 22.9% higher policy acquisition costs.
In November, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment’s PIF increased 9% year over year to 19.4 million. Special Lines increased 7% from the year-earlier month to 6 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 10% to 11.1 million, while Direct Auto improved 8% to 8.3 million.
PGR’s Commercial Auto segment rose 5% year over year to 1.1 million policies. The Property business had 3 million policies in force in the reported month, up 8% year over year.
The company’s book value per share was $31.69 as of Nov 30, 2023, up 20.1% from $26.39 on Nov 30, 2022.
In the trailing 12 months, the return on equity was 20.3%, having contracted 830 bps from 28.6% in November 2022. The debt-to-total-capital ratio improved 220 bps year over year to 26.6 as of Nov 30, 2023.
Price Performance
Progressive’s shares have gained 20.7% year to date (YTD) compared with the industry’s growth of 14.3%.
Image Source: Zacks Investment Research
Zacks Rank
Progressive currently has a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks from the same space are CNA Financial Corporation (CNA - Free Report) , Berkshire Hathaway (BRK.B - Free Report) and Chubb Limited (CB - Free Report) .
CNA Financial delivered a trailing four-quarter average earnings surprise of 9.24%. The stock has gained 2.1% year to date. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CNA’s 2023 and 2024 earnings indicates a year-over-year increase of 14.8% and 7.4%, respectively. The expected long-term earnings growth is 5%. The consensus estimate for 2023 and 2024 earnings has moved up 2.6% and 6.5%, respectively, in the past 60 days.
Berkshire delivered a trailing four-quarter average earnings surprise of 0.20%. YTD, the stock has gained 18.8%. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for BRK.B’s 2023 and 2024 earnings indicates a year-over-year increase of 17.1% and 11.1%, respectively. The expected long-term earnings growth rate is 7%. The consensus estimate for BRK.B’s 2023 and 2024 earnings has moved up 0.8% and 0.9%, respectively, in the past 30 days.
Chubb’s earnings surpassed estimates in three of the last four quarters while missing in one, the average being 6.51%. YTD, the stock has gained 3.8%. It currently carries Zacks Rank #2
The Zacks Consensus Estimate for CB’s 2023 and 2024 earnings implies a year-over-year rise of 25.9% and 7.4%, 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 3.3%, respectively, in the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Progressive (PGR) November Earnings Rise Y/Y on Higher Premiums
The Progressive Corporation (PGR - Free Report) reported earnings per share of $1.15 for November 2023, up 53.3% year over year. The improvement stemmed from higher revenues, partially offset by an increase in expenses.
November Numbers in Detail
Progressive recorded net premiums written of $4.7 billion, up 27.7% from $3.7 billion in the year-ago month. Net premiums earned were about $5.1 billion, up 27.3% from $4 billion reported in the year-ago month.
Net realized gain on securities was $246.5 million, up 24.4% year over year.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 110 basis points (bps) year over year to 91.1.
PGR’s operating revenues were $5.4 billion, improving 27.9% year over year, owing to a 27.3% increase in premiums, a 51% jump in investment income, 18.2% increase in service fees and 25.3% higher fees.
Total expenses increased 25.6% to $4.8 billion, largely due to 28.9% higher losses and loss adjustment expenses, 7.4% higher other underwriting expenses and 22.9% higher policy acquisition costs.
In November, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment’s PIF increased 9% year over year to 19.4 million. Special Lines increased 7% from the year-earlier month to 6 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 10% to 11.1 million, while Direct Auto improved 8% to 8.3 million.
PGR’s Commercial Auto segment rose 5% year over year to 1.1 million policies. The Property business had 3 million policies in force in the reported month, up 8% year over year.
The company’s book value per share was $31.69 as of Nov 30, 2023, up 20.1% from $26.39 on Nov 30, 2022.
In the trailing 12 months, the return on equity was 20.3%, having contracted 830 bps from 28.6% in November 2022. The debt-to-total-capital ratio improved 220 bps year over year to 26.6 as of Nov 30, 2023.
Price Performance
Progressive’s shares have gained 20.7% year to date (YTD) compared with the industry’s growth of 14.3%.
Image Source: Zacks Investment Research
Zacks Rank
Progressive currently has a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks from the same space are CNA Financial Corporation (CNA - Free Report) , Berkshire Hathaway (BRK.B - Free Report) and Chubb Limited (CB - Free Report) .
CNA Financial delivered a trailing four-quarter average earnings surprise of 9.24%. The stock has gained 2.1% year to date. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CNA’s 2023 and 2024 earnings indicates a year-over-year increase of 14.8% and 7.4%, respectively. The expected long-term earnings growth is 5%. The consensus estimate for 2023 and 2024 earnings has moved up 2.6% and 6.5%, respectively, in the past 60 days.
Berkshire delivered a trailing four-quarter average earnings surprise of 0.20%. YTD, the stock has gained 18.8%. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for BRK.B’s 2023 and 2024 earnings indicates a year-over-year increase of 17.1% and 11.1%, respectively. The expected long-term earnings growth rate is 7%. The consensus estimate for BRK.B’s 2023 and 2024 earnings has moved up 0.8% and 0.9%, respectively, in the past 30 days.
Chubb’s earnings surpassed estimates in three of the last four quarters while missing in one, the average being 6.51%. YTD, the stock has gained 3.8%. It currently carries Zacks Rank #2
The Zacks Consensus Estimate for CB’s 2023 and 2024 earnings implies a year-over-year rise of 25.9% and 7.4%, 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 3.3%, respectively, in the past 60 days.