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Progressive (PGR) April Earnings and Revenues Improve Y/Y
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The Progressive Corporation (PGR - Free Report) reported earnings per share of 33 cents for April 2023, rebounding from the year-ago loss of 34 cents. The improvement stemmed from higher revenues, partially offset by higher expenses.
April Numbers in Detail
Progressive recorded net premiums written of $6.1 billion, up 26% from $4.8 billion in the year-ago month. Net premiums earned were about $5.5 billion, up 18% from $4.6 billion reported in the year-ago month.
Net realized gain on securities was $18.4 million against the year-ago loss of $524.5 million.
The combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 240 basis points (bps) year over year to 97.9.
Progressive’s operating revenues were $5.5 billion, improving 18.3% year over year, owing to an 18.3% increase in premiums, a 65.2% jump in investment income, 29.7% higher fees and a 7% increase in service fees.
Total expenses increased 21.4% to $5.4 billion, largely due to 23.1% higher losses and loss adjustment expenses, 19.3% higher policy acquisition costs and an increase of 11.2% in other underwriting expenses.
In April, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment increased 13% year over year to 19.6 million policies. Special Lines increased 6% from the year-earlier month to 5.7 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 8% to 8.3 million, while Direct Auto improved 17% to 11.2 million.
Progressive’s Commercial Auto segment rose 7% year over year to 1.1 million policies. The Property business had 2.5 million policies in force in the reported month, up 5% year over year.
Progressive’s book value per share was $28.60 as of Apr 30, 2023, up 5.8% from $27.02 on Apr 30, 2022.
In the trailing 12 months, the return on equity was 7.2%, having improved 1160 bps from (4.4%) in April 2022. The debt-to-total-capital ratio improved 110 bps year over year to 27 as of Apr 30, 2023.
Price Performance
Progressive’s shares have gained 4.9% year to date compared with the industry’s growth of 3%.
Some better-ranked stocks from the insurance industry are RLI Corporation (RLI - Free Report) , Kinsale Capital Group (KNSL - Free Report) and Axis Capital Holdings (AXS - Free Report) .
RLI delivered a four-quarter average earnings surprise of 43.50%. Year to date, the insurer has lost 1.8%.
The Zacks Consensus Estimate for RLI’s 2023 earnings indicates a year-over-year increase of 4.1%. It sports a Zacks Rank #1 (Strong Buy).
Kinsale delivered a four-quarter average earnings surprise of 14.77%. Year to date, the insurer has gained 23.8%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings indicates a respective year-over-year increase of 32.9% and 19.7%. It sports a Zacks Rank #1.
Axis Capital delivered a four-quarter average earnings surprise of 6.50%. Year to date, the insurer has gained 3%.
The Zacks Consensus Estimate for AXS’s 2023 and 2024 earnings indicates a respective year-over-year increase of 33.2% and 11.1%. It carries a Zacks Rank #2 (Buy).
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Progressive (PGR) April Earnings and Revenues Improve Y/Y
The Progressive Corporation (PGR - Free Report) reported earnings per share of 33 cents for April 2023, rebounding from the year-ago loss of 34 cents. The improvement stemmed from higher revenues, partially offset by higher expenses.
April Numbers in Detail
Progressive recorded net premiums written of $6.1 billion, up 26% from $4.8 billion in the year-ago month. Net premiums earned were about $5.5 billion, up 18% from $4.6 billion reported in the year-ago month.
Net realized gain on securities was $18.4 million against the year-ago loss of $524.5 million.
The combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 240 basis points (bps) year over year to 97.9.
Progressive’s operating revenues were $5.5 billion, improving 18.3% year over year, owing to an 18.3% increase in premiums, a 65.2% jump in investment income, 29.7% higher fees and a 7% increase in service fees.
Total expenses increased 21.4% to $5.4 billion, largely due to 23.1% higher losses and loss adjustment expenses, 19.3% higher policy acquisition costs and an increase of 11.2% in other underwriting expenses.
In April, policies in force (PIF) were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment increased 13% year over year to 19.6 million policies. Special Lines increased 6% from the year-earlier month to 5.7 million policies.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 8% to 8.3 million, while Direct Auto improved 17% to 11.2 million.
Progressive’s Commercial Auto segment rose 7% year over year to 1.1 million policies. The Property business had 2.5 million policies in force in the reported month, up 5% year over year.
Progressive’s book value per share was $28.60 as of Apr 30, 2023, up 5.8% from $27.02 on Apr 30, 2022.
In the trailing 12 months, the return on equity was 7.2%, having improved 1160 bps from (4.4%) in April 2022. The debt-to-total-capital ratio improved 110 bps year over year to 27 as of Apr 30, 2023.
Price Performance
Progressive’s shares have gained 4.9% year to date compared with the industry’s growth of 3%.
Image Source: Zacks Investment Research
Zacks Rank
Progressive currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks from the insurance industry are RLI Corporation (RLI - Free Report) , Kinsale Capital Group (KNSL - Free Report) and Axis Capital Holdings (AXS - Free Report) .
RLI delivered a four-quarter average earnings surprise of 43.50%. Year to date, the insurer has lost 1.8%.
The Zacks Consensus Estimate for RLI’s 2023 earnings indicates a year-over-year increase of 4.1%. It sports a Zacks Rank #1 (Strong Buy).
Kinsale delivered a four-quarter average earnings surprise of 14.77%. Year to date, the insurer has gained 23.8%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings indicates a respective year-over-year increase of 32.9% and 19.7%. It sports a Zacks Rank #1.
Axis Capital delivered a four-quarter average earnings surprise of 6.50%. Year to date, the insurer has gained 3%.
The Zacks Consensus Estimate for AXS’s 2023 and 2024 earnings indicates a respective year-over-year increase of 33.2% and 11.1%. It carries a Zacks Rank #2 (Buy).