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The Progressive Corporation’s (PGR - Free Report) first-quarter 2024 earnings per share of $3.83 beat the Zacks Consensus Estimate of $3.20. The bottom line improved nearly eight times year over year.
Shares gained 2.8% in the pre-market trading session to reflect the outperformance.
Behind the Headlines
Net premiums written were $19 billion in the quarter, up 18% from $16.1 billion a year ago. Premiums beat our estimate of $17.6 billion.
Net premiums earned grew 19% to $16 billion and beat our estimate of $14.4 billion.
Operating revenues of $17.1 billion beat the Zacks Consensus Estimate by 2.4% and increased 20.1% year over year.
The Progressive Corporation Price, Consensus and EPS Surprise
Net realized gain on securities was $115.6 billion compared with $71.8 million in the year-ago quarter.
Total expenses of $14.4 billion increased 4% year over year.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 1290 basis points (bps) from the prior-year quarter’s level to 86.1.
March Policies in Force
Policies in force were soft in the Personal Auto segment, increasing 7% from the year-ago month’s figure to 20.4 million. Special Lines improved 8% to 6.1 million.
In Progressive’s Personal Auto segment, Direct Auto increased 8% year over year to 11.9 million, while Agency Auto increased 5% to 8.6 million.
Progressive’s Commercial Auto segment rose 3% year over year to 1.1 million. The Property business had 3.2 million policies in force, up 10%.
Financial Update
Progressive’s book value per share was $37.24 as of Mar 31, 2024, up 33.7% from $27.97 as of Mar 31, 2023.
Return on equity in March 2024 was 34% compared with 0.1% a year ago. The total debt-to-total capital ratio improved 350 bps to 24.
The Travelers Companies (TRV - Free Report) will report first-quarter 2024 results on Apr 17, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $4.69, suggesting an increase of 14.1% from the year-ago quarter’s reported figure.
TRV’s earnings beat estimates in two of the last four quarters while missing in the other two.
RLI Corporation (RLI - Free Report) will report first-quarter 2024 results on Apr 22, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.63, indicating no change from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in three of the last four quarters while missing in one.
W.R. Berkley Corporation (WRB - Free Report) will report first-quarter 2024 results on Apr 23, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.47, suggesting an increase of 47% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in three of the last four quarters while missing in one.
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Progressive's (PGR) Q1 Earnings, Revenues Top, Premiums Rise Y/Y
The Progressive Corporation’s (PGR - Free Report) first-quarter 2024 earnings per share of $3.83 beat the Zacks Consensus Estimate of $3.20. The bottom line improved nearly eight times year over year.
Shares gained 2.8% in the pre-market trading session to reflect the outperformance.
Behind the Headlines
Net premiums written were $19 billion in the quarter, up 18% from $16.1 billion a year ago. Premiums beat our estimate of $17.6 billion.
Net premiums earned grew 19% to $16 billion and beat our estimate of $14.4 billion.
Operating revenues of $17.1 billion beat the Zacks Consensus Estimate by 2.4% and increased 20.1% year over year.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote
Net realized gain on securities was $115.6 billion compared with $71.8 million in the year-ago quarter.
Total expenses of $14.4 billion increased 4% year over year.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 1290 basis points (bps) from the prior-year quarter’s level to 86.1.
March Policies in Force
Policies in force were soft in the Personal Auto segment, increasing 7% from the year-ago month’s figure to 20.4 million. Special Lines improved 8% to 6.1 million.
In Progressive’s Personal Auto segment, Direct Auto increased 8% year over year to 11.9 million, while Agency Auto increased 5% to 8.6 million.
Progressive’s Commercial Auto segment rose 3% year over year to 1.1 million. The Property business had 3.2 million policies in force, up 10%.
Financial Update
Progressive’s book value per share was $37.24 as of Mar 31, 2024, up 33.7% from $27.97 as of Mar 31, 2023.
Return on equity in March 2024 was 34% compared with 0.1% a year ago. The total debt-to-total capital ratio improved 350 bps to 24.
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.
Upcoming Releases
The Travelers Companies (TRV - Free Report) will report first-quarter 2024 results on Apr 17, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $4.69, suggesting an increase of 14.1% from the year-ago quarter’s reported figure.
TRV’s earnings beat estimates in two of the last four quarters while missing in the other two.
RLI Corporation (RLI - Free Report) will report first-quarter 2024 results on Apr 22, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.63, indicating no change from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in three of the last four quarters while missing in one.
W.R. Berkley Corporation (WRB - Free Report) will report first-quarter 2024 results on Apr 23, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.47, suggesting an increase of 47% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in three of the last four quarters while missing in one.