Yahoo Finance Progressive's (PGR) July Earnings Up, Premiums Rise Y/Y
The Progressive Corporation PGR reported earnings per share of $1.17 for July 2022 that surged 171% year over year. The improvement stemmed from higher premiums and higher net realized gains on securities.
Image Source: Zacks Investment Research
July Numbers in Detail
Progressive recorded net premiums written of $4.9 billion, up 9% from $4.6 billion in the year-ago month. Net premiums earned were $4.7 billion, up 9% from $4.3 billion reported in the year-ago month.
Net realized gains on securities were $130 million, up 153% from the year-ago month.
The combined ratio — the percentage of premiums paid out as claims and expenses — improved 690 basis points (bps) year over year to 89.8.
Progressive’s operating revenues were $4.9 billion, improving 9.3% year over year, owing to an 8.8% increase in premiums, an 11.2% jump in service revenues, a 44.6% higher investment income and 3.3% higher fees.
Total expenses rose 1.3% to $4.3 billion, primarily on account of 1.6% higher losses and loss adjustment expenses and a 3.5% increase in other underwriting expenses.
In July, policies in force were impressive for both Vehicle and Property businesses. In its Vehicle business, the Personal Auto segment declined 2% year over year to 17.2 million. Special Lines increased 5% from the year-earlier month to 5.5 million policies.
In Progressive’s Personal Auto segment, Agency Auto declined 5% to 7.6 million while Direct Auto remained flat at 9.6 million.
Progressive’s Commercial Auto segment rose 11% year over year to about 1 million. The Property business had 2.8 million policies in force in the reported month, up 5% year over year.
Progressive’s book value per share was $27.84 as of May 31, 2022, down 12.2% from $31.70 on Aug 30, 2021.
Return on equity in the trailing 12 months was -6.6%, having contracted 3180 bps from 25.5% in August 2021. The debt-to-total-capital ratio deteriorated 550 bps year over year to 27.6 as of Aug 30, 2022.
Price Performance
Progressive’s shares have gained 23.8% year to date, outperforming the industry’s increase of 2.4%.
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 W.R. Berkley Corporation WRB, Arch Capital Group ACGL and ProAssurance Corporation PRA, each sporting a Zacks Rank #1.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.95%. Year to date, W.R. Berkley stock has gained 23.9%.
The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings per share indicates year-over-year increases of 50.6% and 10.4%, respectively.
Arch Capital’s earnings surpassed estimates in three of the last four quarters and missed in one, the average beat being 33.64%. Year to date, ACGL has gained 6.9%.
The Zacks Consensus Estimate for ACGL’s 2022 and 2023 earnings implies a 29.6% and 14.8% year-over-year increase, respectively.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average beat being 150.9%. Year to date, the insurer has lost 8.8%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 16.9% and 13.9% north, respectively, in the past seven days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
W.R. Berkley Corporation (WRB) : Free Stock Analysis Report
ProAssurance Corporation (PRA) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
