Progressive Reports February 2024 Results
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Insights
The reported net premiums written by The Progressive Corporation indicate a robust growth trajectory for the company, which is a critical factor for investors as it reflects the company's ability to generate revenue through its policy sales. The increase in net premiums written, to $5,720.5 million, showcases the company's expanding market presence and customer base.
Another key indicator is the combined ratio, which at 86.8 for the current year, has improved from the prior year's 95.1. This metric is vital as it measures the profitability from underwriting activities; a ratio below 100 indicates that the company is making an underwriting profit. This improvement suggests that Progressive has managed its claims and expenses more effectively compared to the previous year, which could lead to higher profitability and potentially bolster investor confidence.
Progressive's increase in policies in force across various segments, particularly a 10% growth in the Total Property business, reflects a positive consumer response to the company's offerings and strategic initiatives. This growth is significant as it demonstrates the company's competitive positioning in the insurance market. It's also worth noting the 7% increase in both Personal Lines Agency – auto and Direct – auto, suggesting a strong consumer preference for Progressive's automotive insurance products.
However, the change in accounting closing calendar may pose challenges in making year-over-year comparisons, which could affect analysts' ability to conduct trend analysis. This change underscores the importance of understanding accounting practices when evaluating a company's financial health and performance.
The reported financials from The Progressive Corporation provide a snapshot of the company's economic health. The net income of $737.1 million, coupled with a per-share value of $1.24, indicates a solid profitability that could contribute positively to the overall economy through increased investor confidence and potential reinvestment. The positive performance might also reflect broader economic trends such as consumer spending capacity and overall demand for insurance products.
Additionally, the reported pretax net realized gains on securities of $80.7 million suggest that the company's investment activities are yielding favorable results, which can be a buffer against underwriting volatility. It is important for stakeholders to monitor such gains as part of the company's comprehensive financial performance.
MAYFIELD VILLAGE, OHIO, March 15, 2024 (GLOBE NEWSWIRE) -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month ended February 29, 2024:
| February | ||
| (millions, except per share amounts and ratios; unaudited) | 2024 | |
| Net premiums written | $ | 5,720.5 |
| Net premiums earned | $ | 5,129.1 |
| Net income | $ | 737.1 |
| Per share available to common shareholders | $ | 1.24 |
| Total pretax net realized gains (losses) on securities | $ | 80.7 |
| Combined ratio – current year | 86.8 | |
| – prior year | 95.1 | |
| Average diluted equivalent common shares | 587.3 | |
In October 2023, we converted our monthly accounting closing calendar to align with the Gregorian calendar. We do not expect that this change will have a material impact on our reported quarterly and annual underwriting results but it may impact our year-over-year comparisons on monthly results from October 2023 through September 2024. Therefore, during this time period, we have modified and limited the content of the earnings release, compared to our historical reporting. Click here for further discussion on the closing calendar conversion in the October 2023 release, issued November 17, 2023.
| February | |||||
| (thousands; unaudited) | 2024 | 2023 | % Change | ||
| Policies in Force | |||||
| Personal Lines | |||||
| Agency – auto | 8,461.9 | 8,039.7 | 5 | ||
| Direct – auto | 11,541.3 | 10,737.3 | 7 | ||
| Total personal auto | 20,003.2 | 18,777.0 | 7 | ||
| Total special lines | 6,018.9 | 5,603.4 | 7 | ||
| Total Personal Lines | 26,022.1 | 24,380.4 | 7 | ||
| Total Commercial Lines | 1,097.7 | 1,060.2 | 4 | ||
| Total Property business | 3,163.6 | 2,885.4 | 10 | ||
| Companywide Total | 30,283.4 | 28,326.0 | 7 | ||
See Progressive’s complete monthly earnings release, including the "Monthly Commentary," for additional information.
About Progressive
Progressive Insurance® makes it easy to understand, buy and use car insurance, home insurance, and other protection needs. Progressive offers choices so consumers can reach us however it's most convenient for them — online at progressive.com, by phone at 1-800-PROGRESSIVE, via the Progressive mobile app, 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 second largest personal auto insurer in the country, a leading seller of commercial auto, motorcycle, and boat 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) 395-3707
investor_relations@progressive.com
The Progressive Corporation
6300 Wilson Mills Road
Mayfield Village, Ohio 44143
http://www.progressive.com
Download PDF: Progressive February 2024 Complete Earnings Release
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