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Progressive's (PGR) April Earnings Rise on Higher Premiums
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 72 cents for April 2024, up 118.2% year over year. The improvement stemmed from higher revenues and lower expenses.
April Numbers in Detail
Progressive recorded net premiums written of $6.2 billion, up 1.7% from $6.1 billion in the year-ago month. Net premiums earned were about $5.6 billion, up 21% from $5.5 billion reported in the year-ago month.
Net realized loss on securities was $266.1 million against the year-ago income of $18.4 million.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 9701 basis points (bps) year over year to 89.
PGR’s operating revenues were $5.9 billion, improving 3.3% year over year, owing to a 2.1% increase in premiums, a 50.6% jump in investment income and 9.6% higher service revenues.
Total expenses decreased 6.9% to $5.1 billion, largely due to 11.1% lower losses and loss adjustment expenses and 4.9% lower policy acquisition costs.
In August, policies in force (PIF) were impressive for both Vehicle and Property businesses. In the Vehicle business, the Personal Auto segment recorded an increase of 7% year over year to 20.8 million policies. Special Lines policies increased 8% from the year-earlier month to 6.2 million.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 5% to 8.7 million, while Direct Auto improved 8% to 12.1 million.
PGR’s Commercial Auto segment policies rose 2% year over year to 1.1 million.
The Property business had 3.3 million policies in force in the reported month, up 11% year over year.
The company’s book value per share was $36.92 as of Apr 30, 2024, up 29.1% from $28.60 on Apr 30, 2023.
In the trailing 12 months, the return on equity was 30.2%, having improved 2,300 bps from 7.2% in April 2023. The debt-to-total-capital ratio improved 280 bps year over year to 24.2 as of Apr 30, 2024.
Price Performance
Progressive’s shares have gained 31.4% year to date, outperforming the industry’s growth of 15.5%.
Some other top-ranked stocks from the insurance space are The Allstate Corporation (ALL - Free Report) , Arch Capital Group Ltd (ACGL - Free Report) and RLI Corp (RLI - Free Report) , each sporting a Zacks Rank #1.
Allstate delivered a four-quarter average earnings surprise of 41.88%. The stock has gained 21.6% year to date. The Zacks Consensus Estimate for ALL’s 2024 and 2025 earnings indicates a year-over-year increase of 1,479% and 13.8%, respectively.
Arch Capital delivered a four-quarter average earnings surprise of 28.41%. The stock has gained 31.9% year to date. The Zacks Consensus Estimate for ACGL’s 2024 and 2025 earnings indicates a year-over-year increase of 0.7% and 5.8%, respectively.
RLI delivered a four-quarter average earnings surprise of 132.49%. The stock has gained 9.6% year to date. The Zacks Consensus Estimate for RLI’s 2024 and 2025 earnings indicates a year-over-year increase of 18% and 2.6%, respectively.
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Progressive's (PGR) April Earnings Rise on Higher Premiums
The Progressive Corporation (PGR - Free Report) reported earnings per share of 72 cents for April 2024, up 118.2% year over year. The improvement stemmed from higher revenues and lower expenses.
April Numbers in Detail
Progressive recorded net premiums written of $6.2 billion, up 1.7% from $6.1 billion in the year-ago month. Net premiums earned were about $5.6 billion, up 21% from $5.5 billion reported in the year-ago month.
Net realized loss on securities was $266.1 million against the year-ago income of $18.4 million.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 9701 basis points (bps) year over year to 89.
PGR’s operating revenues were $5.9 billion, improving 3.3% year over year, owing to a 2.1% increase in premiums, a 50.6% jump in investment income and 9.6% higher service revenues.
Total expenses decreased 6.9% to $5.1 billion, largely due to 11.1% lower losses and loss adjustment expenses and 4.9% lower policy acquisition costs.
In August, policies in force (PIF) were impressive for both Vehicle and Property businesses. In the Vehicle business, the Personal Auto segment recorded an increase of 7% year over year to 20.8 million policies. Special Lines policies increased 8% from the year-earlier month to 6.2 million.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 5% to 8.7 million, while Direct Auto improved 8% to 12.1 million.
PGR’s Commercial Auto segment policies rose 2% year over year to 1.1 million.
The Property business had 3.3 million policies in force in the reported month, up 11% year over year.
The company’s book value per share was $36.92 as of Apr 30, 2024, up 29.1% from $28.60 on Apr 30, 2023.
In the trailing 12 months, the return on equity was 30.2%, having improved 2,300 bps from 7.2% in April 2023. The debt-to-total-capital ratio improved 280 bps year over year to 24.2 as of Apr 30, 2024.
Price Performance
Progressive’s shares have gained 31.4% year to date, outperforming the industry’s growth of 15.5%.
Image Source: Zacks Investment Research
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 other top-ranked stocks from the insurance space are The Allstate Corporation (ALL - Free Report) , Arch Capital Group Ltd (ACGL - Free Report) and RLI Corp (RLI - Free Report) , each sporting a Zacks Rank #1.
Allstate delivered a four-quarter average earnings surprise of 41.88%. The stock has gained 21.6% year to date. The Zacks Consensus Estimate for ALL’s 2024 and 2025 earnings indicates a year-over-year increase of 1,479% and 13.8%, respectively.
Arch Capital delivered a four-quarter average earnings surprise of 28.41%. The stock has gained 31.9% year to date. The Zacks Consensus Estimate for ACGL’s 2024 and 2025 earnings indicates a year-over-year increase of 0.7% and 5.8%, respectively.
RLI delivered a four-quarter average earnings surprise of 132.49%. The stock has gained 9.6% year to date. The Zacks Consensus Estimate for RLI’s 2024 and 2025 earnings indicates a year-over-year increase of 18% and 2.6%, respectively.