Progressive Reports January 2024 Results
- None.
- None.
Insights
The Progressive Corporation's reported net income of $700.7 million and a combined ratio of 87.3 for January 2024 reflect a robust financial performance, particularly when considering the insurance industry's benchmark combined ratio of 100 as a breakeven point. A combined ratio below 100 indicates that the company is making an underwriting profit, which is a positive sign for investors and stakeholders. The increase in policies in force across all reported segments, with personal auto and property business showing an 8% and 9% year-over-year growth respectively, suggests a strong market presence and potential for revenue growth.
However, the change in accounting calendar may pose a challenge for analysts trying to perform year-over-year comparisons. While the company asserts that this change will not materially impact quarterly and annual results, it is something that investors should monitor closely in the upcoming months. The limited content in the earnings release, as a result of this change, could also reduce transparency in the short term, making it more difficult for stakeholders to assess the company's performance.
The data indicates that Progressive is successfully expanding its customer base, with an overall 8% increase in policies in force. This expansion is likely driven by competitive pricing strategies, effective marketing and possibly enhanced digital capabilities that appeal to a broader demographic. The direct auto insurance segment, which experienced a 9% growth, is particularly noteworthy as it suggests a consumer trend towards online purchasing and may reflect Progressive's competitive edge in digital offerings.
It is also important to consider the broader economic context in which these results are situated. Factors such as changes in consumer behavior, regulatory environments and economic conditions can all impact insurance premium levels and profitability. Progressive's ability to navigate these factors while maintaining a low combined ratio and growing its policyholder base is indicative of strong operational management and strategic positioning within the industry.
The reported combined ratio of 87.3 is particularly impressive and suggests that Progressive has maintained effective cost control and underwriting discipline. This is a critical metric in the insurance industry as it combines the loss ratio (losses and loss adjustment expenses divided by premiums earned) with the expense ratio (underwriting expenses divided by premiums written). A combined ratio significantly lower than the industry standard reflects well on the company's risk assessment capabilities and operational efficiency.
Furthermore, the increase in net premiums written and net premiums earned indicates a growing book of business and implies a positive outlook on future revenue streams. However, stakeholders should be aware of the potential for increased claims or changes in the regulatory landscape that could affect future combined ratios and profitability.
MAYFIELD VILLAGE, OHIO, Feb. 14, 2024 (GLOBE NEWSWIRE) -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month ended January 31, 2024:
| January | ||
| (millions, except per share amounts and ratios; unaudited) | 2024 | |
| Net premiums written | $ | 5,495.7 |
| Net premiums earned | $ | 5,386.0 |
| Net income | $ | 700.7 |
| Per share available to common shareholders | $ | 1.18 |
| Total pretax net realized gains (losses) on securities | $ | 16.6 |
| Combined ratio – current year | 87.3 | |
| – prior year | 96.0 | |
| 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.
| January 31, | |||||
| (thousands; unaudited) | 2024 | 2023 | % Change | ||
| Policies in Force | |||||
| Personal Lines | |||||
| Agency – auto | 8,393.3 | 7,902.2 | 6 | ||
| Direct – auto | 11,350.0 | 10,430.6 | 9 | ||
| Total personal auto | 19,743.3 | 18,332.8 | 8 | ||
| Total special lines | 5,984.4 | 5,572.9 | 7 | ||
| Total Personal Lines | 25,727.7 | 23,905.7 | 8 | ||
| Total Commercial Lines | 1,095.8 | 1,053.3 | 4 | ||
| Total Property business | 3,127.9 | 2,865.0 | 9 | ||
| Companywide Total | 29,951.4 | 27,824.0 | 8 | ||
See Progressive’s complete monthly earnings release 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 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 January 2024 Complete Earnings Release
FAQ
What were Progressive Corporation's (PGR) net premiums written for January 2024?
What was the net income of Progressive Corporation (PGR) for January 2024?
How did Progressive Corporation's (PGR) combined ratio change in January 2024 compared to the prior year?
What change did Progressive Corporation (PGR) make to its accounting closing calendar in October 2023?
How may the change in accounting closing calendar impact Progressive Corporation's (PGR) year-over-year comparisons until September 2024?
