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Progressive's Q3 Earnings & Revenues Top, Premiums Rise Y//Y

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The Progressive Corporation’s (PGR - Free Report) third-quarter 2024 earnings per share of $3.97 beat the Zacks Consensus Estimate of $3.40. The bottom line more than doubled year over year. 

Operating revenues of $19.5 billion improved 24.9% year over year and beat the consensus estimate by 2.6%.

Shares rose 0.8% in the pre-market trading session to reflect the outperformance.

The Progressive Corporation Price, Consensus and EPS Surprise

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 $19.5 billion in the quarter, up 25% from $15.6 billion a year ago. 

Net premiums earned grew 23% to $18.3 billion. The reported figure surpassed the Zacks Consensus Estimate of $18 billion. 

Net realized gain on securities was $287.4 billion against a loss of $149 million incurred in the year-ago quarter.

Combined ratio — the percentage of premiums paid out as claims and expenses — improved 340 basis points (bps) from the prior-year quarter’s level to 89.

September Policies in Force

Policies in force were solid in the Personal Auto segment, increasing 17% from the year-ago month’s figure to 22.8 million. Special Lines improved 9% to 6.5 million.

In the Personal Auto segment, Direct Auto increased 20% year over year to 13.4 million, while Agency Auto increased 19% to 9.4 million.

Progressive’s Commercial Auto segment rose 2% year over year to 1.1 million. The Property business had 3.5 million policies in force, up 14%.

Financial Update

Progressive’s book value per share was $46.36 as of Sept. 30, 2024, up 60.5% from $28.89 as of Sept. 30, 2023.

Return on equity in September 2024 was 50.9%, up from 17.4% reported in the year-ago period. The total debt-to-total capital ratio improved 820 bps to 20.2.

Zacks Rank

Progressive currently has a Zacks Rank #2 (Buy). 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 third-quarter 2024 results on Oct.17, before market open. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $3.76, suggesting an increase of 92.8% from the year-ago quarter’s reported figure.

TRV’s earnings beat estimates in two of the last four quarters while missing in the other two.

RLI Corporation (RLI - Free Report) will report third-quarter 2024 results on Oct. 21, after market close. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 94 cents, indicating an increase of 54.1% from the year-ago quarter’s reported figure.

RLI’s earnings beat estimates in the last four quarters.

W.R. Berkley Corporation (WRB - Free Report) will report third-quarter 2024 results on Oct. 21, after market close. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 93 cents, suggesting an increase of 3.3% from the year-ago quarter’s reported figure.

WRB’s earnings beat estimates in the last four reported quarters.

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