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Progressive (PGR) January Earnings & Revenues Increase Y/Y
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 95 cents for January 2021, which soared 82% year over year. The upside is attributable to improved top line and combined ratio as well as net realized gains on securities.
In the past year, Progressive’s shares have gained 5.9% against the industry’s 1.5% decline.
January Numbers in Detail
Progressive recorded net premiums written of $4.1 billion in the month, up 14% from $3.6 billion in the year-ago month. Net premiums earned were $3.9 billion, up 10% from $3.6 billion reported last January.
Net realized gains on securities in the months were $108.2 million, which increased to nearly three-fold year over year.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 580 basis points (bps) year over year to 86.3.
Total operating revenues were $4.1 billion, improving 9.5% year over year, owing to a 10% increase in premiums, and a 10% jump in service revenues. However, 21% lower investment income was a drag.
Total expenses rose 3% to $3.5 billion, primarily because of 2% higher losses and loss adjustment expenses, and a 11% jump in policy acquisition costs, 3% higher other underwriting expenses, 11% higher investment expenses, 16% increased service expenses and 19% higher interest expense in January 2021.
In January, policies in force were impressive for both Vehicle and Property businesses. In its vehicle business, the Personal Auto segment improved 11% year over year to 16.7 million. Special Lines increased 8% from the year-earlier month to 4.9 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 9% to 7.7 million, while Direct Auto increased 13% to 9 million.
Progressive’s Commercial Auto segment rose 10% year over year to 0.8 million. The Property business had 2.5 million policies in force in the reported month, up 13% year over year.
The company’s book value per share was $28.96 as of Jan 31, 2021, up 23.5% from $23.44 on Jan 31, 2020.
Return on equity in the trailing 12 months was 37.9%, up 440 bps from 33.5% in January 2020. Debt-to-total-capital ratio deteriorated 10 bps year over year to 23.6 as of Jan 31, 2021.
Progressive currently carries a Zacks Rank #3 (Hold).
Alleghany’s bottom line surpassed estimates in two of the last four quarters and missed in the other two, the average beat being 34.08%.
Cincinnati Financial surpassed earnings estimates in two of the last four quarters, with the average surprise being 4.10%.
Arch Capital surpassed estimates in three of the last four quarters, with the average earnings surprise being 32.14%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Progressive (PGR) January Earnings & Revenues Increase Y/Y
The Progressive Corporation (PGR - Free Report) reported earnings per share of 95 cents for January 2021, which soared 82% year over year. The upside is attributable to improved top line and combined ratio as well as net realized gains on securities.
In the past year, Progressive’s shares have gained 5.9% against the industry’s 1.5% decline.
January Numbers in Detail
Progressive recorded net premiums written of $4.1 billion in the month, up 14% from $3.6 billion in the year-ago month. Net premiums earned were $3.9 billion, up 10% from $3.6 billion reported last January.
Net realized gains on securities in the months were $108.2 million, which increased to nearly three-fold year over year.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 580 basis points (bps) year over year to 86.3.
Total operating revenues were $4.1 billion, improving 9.5% year over year, owing to a 10% increase in premiums, and a 10% jump in service revenues. However, 21% lower investment income was a drag.
Total expenses rose 3% to $3.5 billion, primarily because of 2% higher losses and loss adjustment expenses, and a 11% jump in policy acquisition costs, 3% higher other underwriting expenses, 11% higher investment expenses, 16% increased service expenses and 19% higher interest expense in January 2021.
In January, policies in force were impressive for both Vehicle and Property businesses. In its vehicle business, the Personal Auto segment improved 11% year over year to 16.7 million. Special Lines increased 8% from the year-earlier month to 4.9 million policies.
In Progressive’s Personal Auto segment, Agency Auto expanded 9% to 7.7 million, while Direct Auto increased 13% to 9 million.
Progressive’s Commercial Auto segment rose 10% year over year to 0.8 million. The Property business had 2.5 million policies in force in the reported month, up 13% year over year.
The company’s book value per share was $28.96 as of Jan 31, 2021, up 23.5% from $23.44 on Jan 31, 2020.
Return on equity in the trailing 12 months was 37.9%, up 440 bps from 33.5% in January 2020. Debt-to-total-capital ratio deteriorated 10 bps year over year to 23.6 as of Jan 31, 2021.
Progressive currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the same space are Alleghany , Cincinnati Financial Corporation (CINF - Free Report) and Arch Capital Group (ACGL - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alleghany’s bottom line surpassed estimates in two of the last four quarters and missed in the other two, the average beat being 34.08%.
Cincinnati Financial surpassed earnings estimates in two of the last four quarters, with the average surprise being 4.10%.
Arch Capital surpassed estimates in three of the last four quarters, with the average earnings surprise being 32.14%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>