Progressive Reports October 2024 Results

Rhea-AI Summary

Progressive (PGR) reported strong growth in October 2024, with net premiums written rising 19% to $6.57 billion and net premiums earned increasing 19% to $6.38 billion compared to October 2023. Net income showed modest growth of 1% to $408.2 million. The company's combined ratio increased by 2.4 points to 94.1. Notable growth was seen in policies in force, with personal auto increasing 19% to 23.2 million policies, and total companywide policies growing 16% to 34.3 million.

Positive

• Net premiums written increased 19% to $6.57 billion
• Net premiums earned grew 19% to $6.38 billion
• Personal auto policies increased 19% to 23.2 million
• Total companywide policies grew 16% to 34.3 million
• Direct auto policies showed strong growth of 23%

Negative

• Combined ratio deteriorated by 2.4 points to 94.1
• Net realized losses on securities of $88.0 million
• Minimal net income growth of just 1% despite strong premium growth

Insights

Financial Analyst

Progressive's October performance shows robust growth with 19% increases in both net premiums written and earned, reaching $6.58B and $6.39B respectively. The significant expansion in policies in force, particularly in personal auto (19%) and direct auto (23%), demonstrates strong market penetration. However, the combined ratio deteriorated to 94.1% from 91.7%, indicating higher claims costs. Net income remained relatively flat at $408.2M, with minimal EPS growth despite the premium expansion. The $88M pretax realized losses on securities suggest investment portfolio challenges. While top-line growth is impressive, margin pressure and investment losses warrant attention.

Market Research Analyst

The substantial growth in Progressive's direct auto channel (23%) versus agency auto (15%) reflects shifting consumer preferences toward digital insurance purchases. The company's total policy count reaching 34.4 million represents impressive market share gains. Property business growth of 14% indicates successful cross-selling initiatives and diversification beyond auto insurance. The slower commercial lines growth (3%) suggests potential market saturation or competitive pressures in this segment. These metrics position Progressive well against competitors in personal lines but highlight challenges in commercial and investment operations.

MAYFIELD VILLAGE, OHIO, Nov. 15, 2024 (GLOBE NEWSWIRE) -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month ended October 31, 2024:

	October
(millions, except per share amounts and ratios; unaudited)		2024				2023			Change
Net premiums written	$	6,577.8			$	5,528.8			19	%
Net premiums earned	$	6,387.0			$	5,383.2			19	%
Net income	$	408.2			$	406.0			1	%
Per share available to common shareholders	$	0.69			$	0.68			1	%
Total pretax net realized gains (losses) on securities	$	(88.0	)		$	(87.1	)		1	%
Combined ratio		94.1				91.7			2.4	pts.
Average diluted equivalent common shares		587.7				587.6			0	%

	October 31,
(thousands; unaudited)	2024		2023		% Change
Policies in Force
Personal Lines
Agency – auto	9,580.9		8,336.4		15
Direct – auto	13,653.0		11,142.2		23
Total personal auto	23,233.9		19,478.6		19
Total special lines	6,504.4		5,964.4		9
Total Personal Lines	29,738.3		25,443.0		17
Total Commercial Lines	1,140.7		1,108.5		3
Total Property business	3,485.3		3,046.2		14
Companywide Total	34,364.3		29,597.7		16

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
300 North Commons Blvd.
Mayfield Village, Ohio 44143
http://www.progressive.com

Download PDF: Progressive October 2024 Complete Earnings Release

FAQ

What was Progressive's (PGR) net income in October 2024?

Progressive reported a net income of $408.2 million in October 2024, a 1% increase from $406.0 million in October 2023.

How much did Progressive's (PGR) net premiums written grow in October 2024?

Progressive's net premiums written grew 19% to $6.57 billion in October 2024 compared to $5.52 billion in October 2023.

What was Progressive's (PGR) combined ratio in October 2024?

Progressive's combined ratio was 94.1 in October 2024, increasing by 2.4 points from 91.7 in October 2023.

How many total policies in force did Progressive (PGR) have as of October 31, 2024?

Progressive had 34,364,300 total policies in force as of October 31, 2024, a 16% increase from the previous year.