Progressive Reports December 2020 Results

Rhea-AI Summary

The Progressive Corporation (NYSE:PGR) reported its December 2020 and Q4 2020 results, indicating a decline in net premiums written by 16% to $2.79 billion in December, while Q4 net premiums written fell by 1% to $9.54 billion. Net premiums earned saw an 11% decrease in December, totaling $3.16 billion, and a 3% increase in Q4 to $10.21 billion. Despite these drops, net income attributable to Progressive surged 53% to $706 million in December and increased 57% to $1.68 billion in Q4. The company also recorded a significant improvement in total pretax net realized gains on securities, up 172% to $340.9 million in December.

Positive

• Net income attributable to Progressive increased 53% to $706 million in December 2020.
• Net income for Q4 2020 rose 57% to $1.68 billion.
• Total pretax net realized gains on securities surged 172% to $340.9 million in December.

Negative

• Net premiums written decreased by 16% in December 2020.
• Net premiums earned fell by 11% in December 2020.

MAYFIELD VILLAGE, OHIO, Jan. 27, 2021 (GLOBE NEWSWIRE) -- The Progressive Corporation (NYSE:PGR) today reported the following results for December 2020 and the fourth quarter of 2020: 

	December												Quarter
(millions, except per share amounts and ratios; unaudited)	2020			2019			Change1			2020			2019			Change1
Net premiums written	$	2,789.1		$	3,338.5		(16	)	%	$	9,542.3		$	9,590.3		(1	)	%
Net premiums earned	$	3,164.2		$	3,542.7		(11	)	%	$	10,208.8		$	9,895.7		3		%
Net income attributable to Progressive	$	706.0		$	460.0		53		%	$	1,684.3		$	1,070.8		57		%
Per share available to common shareholders	$	1.20		$	0.78		54		%	$	2.85		$	1.81		57		%
Total pretax net realized gains (losses) on securities	$	340.9		$	125.5		172		%	$	760.2		$	369.4		106		%
Combined ratio		85.2			89.4		(4.2	)	pts.		88.4			92.4		(4.0	)	pts.
Average diluted equivalent common shares		587.5			587.0		0		%		587.6			587.0		0		%
1 Operating results for 2019 included an extra week of underwriting activity for December and the fourth quarter for our non-Property businesses. Excluding the additional week of vehicle underwriting activity in 2019, companywide net premiums written growth would have been approximately 3% for the month and 6% for the fourth quarter, and net premiums earned growth would have been approximately 11% for both periods. See the “Supplemental Information” and the “Monthly Commentary” in the full release for additional discussion.

	December
(thousands; unaudited)	2020		2019		Change
Policies in Force
Personal Lines
Agency – auto	7,617.0		6,994.3		9%
Direct – auto	8,881.4		7,866.5		13%
Total personal auto	16,498.4		14,860.8		11%
Total special lines	4,915.1		4,547.8		8%
Total Personal Lines	21,413.5		19,408.6		10%
Total Commercial Lines	822.0		751.4		9%
Property business	2,484.4		2,202.1		13%
Companywide Total	24,719.9		22,362.1		11%

About Progressive

The Progressive Group of Insurance Companies makes it easy to understand, buy and use auto insurance. Progressive offers choices so consumers can reach us whenever, wherever and however it's most convenient - online at progressive.com, by phone at 1-800-PROGRESSIVE, on a mobile device or in-person with a local agent.

Progressive provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes; it is the third largest auto insurer in the country, a leading seller of motorcycle and commercial auto insurance, and one of the top 15 homeowners insurance carriers. 

Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price^®, Snapshot^®, and HomeQuote Explorer^®.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at NYSE:PGR.

Company Contact:
Douglas S. Constantine
(440) 910-3563
investor_relations@progressive.com
 
The Progressive Corporation
6300 Wilson Mills Road
Mayfield Village, Ohio  44143
http://www.progressive.com

Progressive December 2020 Complete Earnings Release: http://ml.globenewswire.com/Resource/Download/d3c20089-e9aa-48aa-ac6a-8d8a6f7eb9e5

FAQ

What were Progressive's net premiums written for December 2020?

Progressive's net premiums written for December 2020 were $2.79 billion, a 16% decrease from the previous year.

How did Progressive perform in Q4 2020?

In Q4 2020, Progressive reported net premiums written of $9.54 billion, down 1% from the prior year.

What was Progressive's net income for December 2020?

Progressive's net income attributable to the company was $706 million in December 2020, a 53% increase from December 2019.

What was the change in Progressive's combined ratio in Q4 2020?

The combined ratio for Q4 2020 improved to 88.4 from 92.4 in 2019, a decrease of 4.0 points.

What are the key metrics for Progressive's Q4 2020 earnings?

Key metrics for Q4 2020 include net premiums earned of $10.21 billion and a net income of $1.68 billion, up 57% year-over-year.