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Progressive's November Earnings Grow on Higher Revenues
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 26 cents for November, rebounding from the year-ago loss of 2 cents. Improvement in the top line drove the bottom line.
Year to date, Progressive’s shares have surged 57.4%, outperforming the industry’s rally of 17.5%. This share price rise was courtesy of the company’s sustained strong results.
Numbers in November
Progressive recorded net premiums written of $2 billion in November, up 20% from $1.7 billion in the year-ago month. Net premiums earned were about $2.1 billion, up 17% from $1.8 billion in the year-ago month.
Net realized gains on securities in the quarter were $0.7 million, plunging 98% year over year.
Combined ratio — percentage of premiums paid out as claims and expenses — remained flat year over year at 90.9%.
Total operating revenues came in at $2.2 billion. The top line improved 17% year over year owing to a 17% increase in premiums, 22% higher investment income, 18% growth in fees and other revenues plus 30% rise in service revenues.
Total expenses shot up 16.3 % to nearly $2 billion. This increase in expenses can be primarily attributed to 14.3% higher losses and loss adjustment expenses, 15.8% climb in policy acquisition costs and a 30% jump in other underwriting expenses.
In November, policies in force were impressive in both Vehicle and property business. In its vehicle business, Personal Auto segment improved 11.6% year over year to nearly 12 million. Special Lines increased 2% from the prior-year month to 4.4 million.
In Progressive’s Personal Auto segment, both Direct Auto and Agency auto expanded 12% each to nearly 6 million.
Progressive’s Commercial Auto segment rose 6% year over year to 0.6 million. The Property business had about 1.3 million policies in force in the reported month, up 20% year over year.
Progressive’s book value per share was $16.60 as of Nov 30, 2017, up 18.1% from $14.05 as of Nov 30, 2016.
Return on equity on a trailing 12-month basis was 21%, up 760 bps from 13.4% in November 2016. Debt-to-total-capital ratio improved 240 bps year over year to 25.5% as of Nov 30, 2017.
Zacks Rank and Other Insurers
Progressive carries a Zacks Rank #3 (Hold). Some better-ranked property and casualty insurers are Infinity Property and Casualty Corporation , CNA Financial Corporation (CNA - Free Report) and NMI Holdings Inc. (NMIH - Free Report) .
Infinity Property and Casualty provides personal automobile insurance products in the United States. The company’s four-quarter average positive surprise is 300.65% and it sports a Zacks Rank #1 (Strong Buy). Shares have gained 20.8% year to date, outperforming the industry’s rally. You can see the complete list of today’s Zacks #1 Rank stocks here.
CNA Financial provides commercial property and casualty insurance products, primarily in the United States. The company delivered a four-quarter average beat of 39.78%. Shares of the company have gained 27.5% year to date. The stock sports a Zacks Rank of 1.
NMI Holdings provides private mortgage guaranty insurance services in the United States. The company’s four-quarter average positive surprise is 11.72% and carries a Zacks Rank #2 (Buy). Shares have soared 62.9% year to date, outperforming the industry’s increase.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Image: Bigstock
Progressive's November Earnings Grow on Higher Revenues
The Progressive Corporation (PGR - Free Report) reported earnings per share of 26 cents for November, rebounding from the year-ago loss of 2 cents. Improvement in the top line drove the bottom line.
Year to date, Progressive’s shares have surged 57.4%, outperforming the industry’s rally of 17.5%. This share price rise was courtesy of the company’s sustained strong results.
Numbers in November
Progressive recorded net premiums written of $2 billion in November, up 20% from $1.7 billion in the year-ago month. Net premiums earned were about $2.1 billion, up 17% from $1.8 billion in the year-ago month.
Net realized gains on securities in the quarter were $0.7 million, plunging 98% year over year.
Combined ratio — percentage of premiums paid out as claims and expenses — remained flat year over year at 90.9%.
Total operating revenues came in at $2.2 billion. The top line improved 17% year over year owing to a 17% increase in premiums, 22% higher investment income, 18% growth in fees and other revenues plus 30% rise in service revenues.
Total expenses shot up 16.3 % to nearly $2 billion. This increase in expenses can be primarily attributed to 14.3% higher losses and loss adjustment expenses, 15.8% climb in policy acquisition costs and a 30% jump in other underwriting expenses.
In November, policies in force were impressive in both Vehicle and property business. In its vehicle business, Personal Auto segment improved 11.6% year over year to nearly 12 million. Special Lines increased 2% from the prior-year month to 4.4 million.
In Progressive’s Personal Auto segment, both Direct Auto and Agency auto expanded 12% each to nearly 6 million.
Progressive’s Commercial Auto segment rose 6% year over year to 0.6 million. The Property business had about 1.3 million policies in force in the reported month, up 20% year over year.
Progressive’s book value per share was $16.60 as of Nov 30, 2017, up 18.1% from $14.05 as of Nov 30, 2016.
Return on equity on a trailing 12-month basis was 21%, up 760 bps from 13.4% in November 2016. Debt-to-total-capital ratio improved 240 bps year over year to 25.5% as of Nov 30, 2017.
Zacks Rank and Other Insurers
Progressive carries a Zacks Rank #3 (Hold). Some better-ranked property and casualty insurers are Infinity Property and Casualty Corporation , CNA Financial Corporation (CNA - Free Report) and NMI Holdings Inc. (NMIH - Free Report) .
Infinity Property and Casualty provides personal automobile insurance products in the United States. The company’s four-quarter average positive surprise is 300.65% and it sports a Zacks Rank #1 (Strong Buy). Shares have gained 20.8% year to date, outperforming the industry’s rally. You can see the complete list of today’s Zacks #1 Rank stocks here.
CNA Financial provides commercial property and casualty insurance products, primarily in the United States. The company delivered a four-quarter average beat of 39.78%. Shares of the company have gained 27.5% year to date. The stock sports a Zacks Rank of 1.
NMI Holdings provides private mortgage guaranty insurance services in the United States. The company’s four-quarter average positive surprise is 11.72% and carries a Zacks Rank #2 (Buy). Shares have soared 62.9% year to date, outperforming the industry’s increase.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>