Progressive Reports May 2024 Results
Progressive (NYSE: PGR) reported its financial results for May 2024, showing significant growth in key areas. Net premiums written increased to $5,975.1 million, and net premiums earned reached $5,857.5 million. The company reported a net income of $235.7 million, translating to $0.40 per share for common shareholders. However, the combined ratio for the current year stood at 100.4, slightly higher than the prior year's 99.0. Policies in force also saw an 8% increase year-over-year, with personal auto policies rising to 21,252.1 thousand. Progressive acknowledged a calendar change in October 2023 that may affect year-over-year monthly comparisons through September 2024.
- Net premiums written increased to $5,975.1 million.
- Net premiums earned reached $5,857.5 million.
- Net income reported at $235.7 million, translating to $0.40 per share.
- Policies in force saw an 8% increase year-over-year.
- Total personal auto policies rose to 21,252.1 thousand.
- Property business policies grew by 12% year-over-year.
- The combined ratio for the current year increased to 100.4 from the prior year's 99.0.
- The calendar change in October 2023 may affect year-over-year monthly comparisons, potentially impacting investor analysis.
Insights
Progressive's May 2024 financial results show a mixed performance. The company reported
The net realized gains on securities of
In the short term, the company's performance appears steady with consistent policy growth, but the high combined ratio and dependency on investment income for profitability pose longer-term concerns. Retail investors need to monitor how Progressive manages its underwriting profitability and expense control moving forward.
The reported combined ratio of 100.4% is concerning as it indicates that Progressive is operating at a loss on its core underwriting business. A healthy insurance company typically aims for a combined ratio below 100% to ensure underwriting profitability. The prior year's ratio was also high at 99%, suggesting a trend that investors should be wary of.
Policy growth in the personal lines and property business is notable, especially the
Furthermore, the change in the accounting calendar might create confusion in year-over-year comparisons, so investors should be cautious when interpreting these results without context. Overall, while the growth in policy numbers is promising, the combined ratio and potential volatility in investment income warrant a cautious outlook.
MAYFIELD VILLAGE, OHIO, June 14, 2024 (GLOBE NEWSWIRE) -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month ended May 31, 2024:
| May | ||
| (millions, except per share amounts and ratios; unaudited) | 2024 | |
| Net premiums written | $ | 5,975.1 |
| Net premiums earned | $ | 5,857.5 |
| Net income | $ | 235.7 |
| Per share available to common shareholders | $ | 0.40 |
| Total pretax net realized gains (losses) on securities | $ | 117.6 |
| Combined ratio – current year | 100.4 | |
| – prior year month | 99.0 | |
| Average diluted equivalent common shares | 587.4 | |
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.
| May 31, | |||||
| (thousands; unaudited) | 2024 | 2023 | % Change | ||
| Policies in Force | |||||
| Personal Lines | |||||
| Agency – auto | 8,869.4 | 8,423.2 | 5 | ||
| Direct – auto | 12,382.7 | 11,243.3 | 10 | ||
| Total personal auto | 21,252.1 | 19,666.5 | 8 | ||
| Total special lines | 6,247.4 | 5,787.0 | 8 | ||
| Total Personal Lines | 27,499.5 | 25,453.5 | 8 | ||
| Total Commercial Lines | 1,114.1 | 1,095.3 | 2 | ||
| Total Property business | 3,305.2 | 2,957.5 | 12 | ||
| Companywide Total | 31,918.8 | 29,506.3 | 8 | ||
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 May 2024 Complete Earnings Release
FAQ
What were Progressive's net premiums written for May 2024?
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