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Progressive's (PGR) July Earnings and Revenues Increase Y/Y
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The Progressive Corporation (PGR - Free Report) reported earnings per share of $1.38 per share for July 2020, which soared 111% year over year owing to an improved top line.
Year to date, shares of this Zacks Rank #3 (Hold) company have rallied 24.9% against the industry’s 10.8% decline, attributable to consistently solid results.
Numbers in July
Progressive recorded net premiums written of $4.1 billion in the month, up 12% from $3.7 billion in the year-ago quarter. Net premiums earned were about $3.8 billion, up 10% from $3.4 billion last July.
Net realized gain on securities in the quarter was $333.4 million, up from a gain of $49 million in the prior-year quarter.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 680 basis points (bps) year over year to 83.5%.
Total operating revenues came in at $3.9 billion, improving 9.7% year over year owing to a 10.3% increase in premiums and a 22.7% rise in service revenues. However, 16.3% lower investment income was a partial offset.
Total expenses rose 2.3% to $3.2 billion, primarily because of 1.3% higher losses and loss adjustment expense, 10.2% increase in policy acquisition costs and 21.3% increase in service expenses.
In July, policies in force were impressive in both Vehicle and Property business. In its Vehicle business, Personal Auto segment improved 11% year over year to nearly 16.1 million. Special Lines increased 7% from the year-earlier month to 4.8 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 9% to 7.4 million while Direct Auto increased 14% to nearly 8.6 million.
Progressive’s Commercial Auto segment rose 6% year over year to 0.8 million. The Property business had 2.4 million policies in force in the reported month, up 13% year over year.
Progressive’s book value per share was $29.17 as of Jul 31, 2020, up 29.8% from $22.47 as of Jul 31, 2019.
Return on equity in the trailing 12 months was 38.3%, up 500 basis points (bps) from 33.3% in July 2019. Debt-to-total-capital improved 90 bps year over year to 23.5% as of Jul 31, 2020.
Donegal Group Incorporation provides personal and commercial lines of property and casualty insurance to businesses and individuals. The company beat estimates in each of the last four quarters, with the average surprise being 86.44%.
Fidelity National provides various insurance products in the United States and offers title insurance, escrow, other title related services and home warranty insurance. It surpassed estimates in each of the last four quarters, with the average surprise being 32.13%.
Allstate provides property and casualty, and other insurance products in the United States and Canada. It surpassed estimates in each of the last four quarters, with the average positive surprise being 25.24%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Progressive's (PGR) July Earnings and Revenues Increase Y/Y
The Progressive Corporation (PGR - Free Report) reported earnings per share of $1.38 per share for July 2020, which soared 111% year over year owing to an improved top line.
Year to date, shares of this Zacks Rank #3 (Hold) company have rallied 24.9% against the industry’s 10.8% decline, attributable to consistently solid results.
Numbers in July
Progressive recorded net premiums written of $4.1 billion in the month, up 12% from $3.7 billion in the year-ago quarter. Net premiums earned were about $3.8 billion, up 10% from $3.4 billion last July.
Net realized gain on securities in the quarter was $333.4 million, up from a gain of $49 million in the prior-year quarter.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 680 basis points (bps) year over year to 83.5%.
Total operating revenues came in at $3.9 billion, improving 9.7% year over year owing to a 10.3% increase in premiums and a 22.7% rise in service revenues. However, 16.3% lower investment income was a partial offset.
Total expenses rose 2.3% to $3.2 billion, primarily because of 1.3% higher losses and loss adjustment expense, 10.2% increase in policy acquisition costs and 21.3% increase in service expenses.
In July, policies in force were impressive in both Vehicle and Property business. In its Vehicle business, Personal Auto segment improved 11% year over year to nearly 16.1 million. Special Lines increased 7% from the year-earlier month to 4.8 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 9% to 7.4 million while Direct Auto increased 14% to nearly 8.6 million.
Progressive’s Commercial Auto segment rose 6% year over year to 0.8 million. The Property business had 2.4 million policies in force in the reported month, up 13% year over year.
Progressive’s book value per share was $29.17 as of Jul 31, 2020, up 29.8% from $22.47 as of Jul 31, 2019.
Return on equity in the trailing 12 months was 38.3%, up 500 basis points (bps) from 33.3% in July 2019. Debt-to-total-capital improved 90 bps year over year to 23.5% as of Jul 31, 2020.
Stocks to Consider
Some better-ranked stocks from the same space are Donegal Group Incorporation (DGICA - Free Report) , Fidelity National Financial Inc., (FNF - Free Report) and The Allstate Corporation (ALL - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Donegal Group Incorporation provides personal and commercial lines of property and casualty insurance to businesses and individuals. The company beat estimates in each of the last four quarters, with the average surprise being 86.44%.
Fidelity National provides various insurance products in the United States and offers title insurance, escrow, other title related services and home warranty insurance. It surpassed estimates in each of the last four quarters, with the average surprise being 32.13%.
Allstate provides property and casualty, and other insurance products in the United States and Canada. It surpassed estimates in each of the last four quarters, with the average positive surprise being 25.24%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>