The Progressive Corporation’s PGR first-quarter 2020 earnings per share of $1.17 missed the Zacks Consensus Estimate by 19.3%. The bottom line deteriorated 36% year over year.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote
Behind the Headlines
Net premiums written were $9.9 billion in the quarter under review, up 7% from the year-ago period. Net premiums earned grew 11% year over year to $9.4 billion.
Net realized loss on securities was $553.6 million against the year-ago gain of $414.5 million.
Operating revenues were $9.9 billion, up 11.1% year over year. The improvement was owing to an 11% increase in premiums and 18% growth in fees and other revenues as well as 21% increase in service revenues. The top line however missed the Zacks Consensus Estimate by 0.5%.
Total expenses increased 9% year over year to $8.4 billion driven by 7% rise in losses and loss adjustment expenses, 10% increase in policy acquisition costs, 20% higher other underwriting expenses and 25% increase in service expenses.
Combined ratio — percentage of premiums paid out as claims and expenses — improved 190 basis points (bps) from the prior-year quarter’s level to 86.9%.
In March, policies in force were impressive at the Personal Auto segment, having improved 10% from the year-ago month to 15.3 million. Special Lines improved 4% from the prior-year month’s figure to 4.6 million.
In Progressive’s Personal Auto segment, Direct Auto grew 11% year over year to 8.1 million while Agency Auto improved 8% year over year to 7.2 million.
Progressive’s Commercial Auto segment rose 7% year over year to 0.7 million. The Property business had about 2.3 million policies in force in the reported month, up 13% year over year.
Progressive’s book value per share was $23.68 as of Mar 31, 2020, up 19% year over yar.
Return-on-equity for March 2020 was 28.5%, having contracted 190 bps year over year. Debt-to-total capital ratio deteriorated 60 bps year over year to 27.3% as of Mar 31, 2020.
Progressive currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RLI Corp. RLI is slated to announce first-quarter earnings on Apr 21.
The Travelers Companies, Inc. TRV is scheduled to release first-quarter earnings on Apr 21.
Brown and Brown Inc. BRO is set to report first-quarter earnings on Apr 27.
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