Progressive Reports March 2024 Results
- Strong financial performance for Progressive in March 2024 and Q1 2024.
- Net premiums written and earned increased by 18% and 19% respectively.
- Net income soared by 421%, with per share earnings up by 425%.
- Total pretax net realized gains on securities rose by 117%.
- Combined ratio improved by 12.9 points compared to the prior year.
- Calendar conversion in October 2023 may impact year-over-year comparisons until September 2024.
- None.
Insights
The reported increase in net premiums written by 18% and net premiums earned by 19% for Progressive Corporation indicates a significant expansion in the company's underwriting activities. This growth is a positive signal for investors as it reflects both a larger customer base and potentially improved pricing power. The substantial 421% rise in net income year-over-year, alongside a notable per-share increase from $0.75 to $3.94, suggests a highly profitable quarter, likely influenced by both operational efficiencies and favorable claims trends.
Moreover, the improvement in the combined ratio from 99.0 to 86.1 points to enhanced underwriting profitability. A combined ratio below 100 indicates that the company is making an underwriting profit, which is a key metric for evaluating the performance of insurance companies. The total pretax net realized gains on securities also saw a significant increase, which may reflect savvy investment strategies or favorable market conditions. However, the change in accounting calendar might have affected the comparability of the results, hence investors should interpret the year-over-year comparisons with caution.
Progressive's reported 7% growth in policies in force for personal lines, including both agency and direct auto, as well as a 10% increase in property business, suggests a robust demand for their insurance products. This growth is indicative of strong market positioning and effective customer acquisition strategies. The expansion in total personal auto and special lines is particularly noteworthy, as it demonstrates the company's ability to cross-sell and retain customers in a competitive market.
It's also important to note the steady increase in Commercial Lines and Property business, which diversifies the company's revenue streams and reduces reliance on any single line of business. The continuous growth in these areas could be attributed to Progressive's strategic initiatives and investments in technology, which improve customer experience and operational efficiency. This diversification strategy could provide a buffer against market volatility and regulatory changes that are common in the insurance industry.
The financial results from Progressive Corporation can be seen as a microcosm of broader economic conditions. The increase in policies suggests consumer confidence and economic growth, as more individuals and businesses are investing in insurance coverage. The rise in net income and improved combined ratio could partially stem from macroeconomic factors such as lower-than-expected claim frequencies or severities, possibly linked to trends such as safer driving technology or changes in consumer behavior.
However, the insurance industry is cyclical and sensitive to economic downturns, regulatory changes and catastrophic events. While the short-term outlook based on these results seems positive, long-term sustainability will depend on Progressive's ability to adapt to these variables. Investors should consider the potential impact of economic shifts on claim costs and investment returns when evaluating the long-term prospects of the company.
MAYFIELD VILLAGE, OHIO, April 12, 2024 (GLOBE NEWSWIRE) -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month ended March 31, 2024 and the first quarter of 2024:
| March | Quarter | ||||||||||
| (millions, except per share amounts and ratios; unaudited) | 2024 | 2024 | 2023 | Change | |||||||
| Net premiums written | $ | 7,746.0 | $ | 18,962.2 | $ | 16,109.7 | 18 | % | |||
| Net premiums earned | $ | 5,633.5 | $ | 16,148.6 | $ | 13,533.1 | 19 | % | |||
| Net income | $ | 893.6 | $ | 2,331.4 | $ | 447.9 | 421 | % | |||
| Per share available to common shareholders | $ | 1.52 | $ | 3.94 | $ | 0.75 | 425 | % | |||
| Total pretax net realized gains (losses) on securities | $ | 58.3 | $ | 155.6 | $ | 71.8 | 117 | % | |||
| Combined ratio | 84.3 | 86.1 | 99.0 | (12.9) pts. | |||||||
| Combined ratio – prior year month | 106.2 | ||||||||||
| Average diluted equivalent common shares | 587.4 | 587.3 | 587.0 | 0 | % | ||||||
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.
| March 31, | |||||
| (thousands; unaudited) | 2024 | 2023 | % Change | ||
| Policies in Force | |||||
| Personal Lines | |||||
| Agency – auto | 8,592.9 | 8,172.9 | 5 | ||
| Direct – auto | 11,855.4 | 10,995.5 | 8 | ||
| Total personal auto | 20,448.3 | 19,168.4 | 7 | ||
| Total special lines | 6,075.7 | 5,637.3 | 8 | ||
| Total Personal Lines | 26,524.0 | 24,805.7 | 7 | ||
| Total Commercial Lines | 1,100.8 | 1,071.2 | 3 | ||
| Total Property business | 3,208.9 | 2,912.6 | 10 | ||
| Companywide Total | 30,833.7 | 28,789.5 | 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 March 2024 Complete Earnings Release
FAQ
What were the net premiums written and earned for Progressive in March 2024?
How much did Progressive's net income increase by in the first quarter of 2024?
What was the change in per share earnings for Progressive in the first quarter of 2024?
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How much did the combined ratio improve by for Progressive compared to the prior year?
When did Progressive convert its monthly accounting closing calendar, and how may it impact comparisons?
