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The Progressive Corporation’s (PGR - Free Report) second-quarter 2024 earnings per share of $2.65 beat the Zacks Consensus Estimate of $1.99. The bottom line improved more than five times year over year.
Operating revenues of $18.3 billion beat the Zacks Consensus Estimate by 1.4% and increased 18.9% year over year.
Shares gained 2.3% in the pre-market trading session to reflect the outperformance.
The Progressive Corporation Price, Consensus and EPS Surprise
Net premiums written were $17.9 billion in the quarter, up 22% from $14.7 billion a year ago. Premiums beat our estimate of $17.3 billion.
Net premiums earned grew 19% to $17.2 billion and beat our estimate of $16.7 billion.
Net realized loss on securities was $126.3 billion against $126.9 million earned in the year-ago quarter.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 850 basis points (bps) from the prior-year quarter’s level to 91.9.
June Policies in Force
Policies in force were strong in the Personal Auto segment, up 10% from the year-ago month’s figure to 21.5 million. Special Lines improved 8% to 6.3 million.
In the Personal Auto segment, Direct Auto increased 12% year over year to 12.6 million, while Agency Auto increased 6% to 9 million.
Progressive’s Commercial Auto segment rose 1% year over year to 1.1 million. The Property business had 3.3 million policies in force, up 12%.
Financial Update
Progressive’s book value per share was $39.85 as of Jun 30, 2024, up 43.8% from $27.71 as of Jun 30, 2023.
Return on equity in June 2024 was 40.2%, up from 8% reported in the year-ago period. The total debt-to-total capital ratio improved 640 bps to 22.8.
The Travelers Companies (TRV - Free Report) will report second-quarter 2024 results on Jul 19, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.49, suggesting an increase of 4,050% from the year-ago quarter’s reported figure.
TRV’s earnings beat estimates in one of the last four quarters while missing in the other three.
RLI Corporation (RLI - Free Report) will report second-quarter 2024 results on Jul 22, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.35, indicating an increase of 16.4% from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in three of the last four quarters while missing in one.
W.R. Berkley Corporation (WRB - Free Report) will report second-quarter 2024 results on Jul 22, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 82 cents, suggesting an increase of 7.9% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in the last four reported quarters.
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Progressive's (PGR) Q2 Earnings Beat, Premiums Rise Y/Y
The Progressive Corporation’s (PGR - Free Report) second-quarter 2024 earnings per share of $2.65 beat the Zacks Consensus Estimate of $1.99. The bottom line improved more than five times year over year.
Operating revenues of $18.3 billion beat the Zacks Consensus Estimate by 1.4% and increased 18.9% year over year.
Shares gained 2.3% in the pre-market trading session to reflect the outperformance.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote
Behind the Headlines
Net premiums written were $17.9 billion in the quarter, up 22% from $14.7 billion a year ago. Premiums beat our estimate of $17.3 billion.
Net premiums earned grew 19% to $17.2 billion and beat our estimate of $16.7 billion.
Net realized loss on securities was $126.3 billion against $126.9 million earned in the year-ago quarter.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 850 basis points (bps) from the prior-year quarter’s level to 91.9.
June Policies in Force
Policies in force were strong in the Personal Auto segment, up 10% from the year-ago month’s figure to 21.5 million. Special Lines improved 8% to 6.3 million.
In the Personal Auto segment, Direct Auto increased 12% year over year to 12.6 million, while Agency Auto increased 6% to 9 million.
Progressive’s Commercial Auto segment rose 1% year over year to 1.1 million. The Property business had 3.3 million policies in force, up 12%.
Financial Update
Progressive’s book value per share was $39.85 as of Jun 30, 2024, up 43.8% from $27.71 as of Jun 30, 2023.
Return on equity in June 2024 was 40.2%, up from 8% reported in the year-ago period. The total debt-to-total capital ratio improved 640 bps to 22.8.
Zacks Rank
Progressive currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
The Travelers Companies (TRV - Free Report) will report second-quarter 2024 results on Jul 19, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.49, suggesting an increase of 4,050% from the year-ago quarter’s reported figure.
TRV’s earnings beat estimates in one of the last four quarters while missing in the other three.
RLI Corporation (RLI - Free Report) will report second-quarter 2024 results on Jul 22, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.35, indicating an increase of 16.4% from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in three of the last four quarters while missing in one.
W.R. Berkley Corporation (WRB - Free Report) will report second-quarter 2024 results on Jul 22, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 82 cents, suggesting an increase of 7.9% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in the last four reported quarters.