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Progressive (PGR) Q2 Earnings Meet Estimates, Premiums Rise Y/Y

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·3 min read
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The Progressive Corporation’s PGR second-quarter 2022 earnings per share of 95 cents, in line with the Zacks Consensus Estimate. The bottom line dropped 37.1% year over year.

The Progressive Corporation Price, Consensus and EPS Surprise

The Progressive Corporation Price, Consensus and EPS Surprise
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 $12.4 billion in the quarter, up 8% from $11.7 billion a year ago. Net premiums earned grew 13% to $12.1 billion.

Net realized loss on securities was $1.8 billion against a gain of $461.8 million in the year-ago quarter.

The combined ratio — the percentage of premiums paid out as claims and expenses — improved 90 basis points (bps) from the prior-year quarter’s level to 95.6.

June Numbers

Operating revenues were about $4 million, up 9.6% year over year. This improvement was driven by a 9% increase in premiums, 2.6% higher fees and other revenues, 2% increase in service revenues and 47% higher investment income.

Total expenses increased 8.8% year over year to $39 billion due to 4.4% higher losses and loss adjustment expenses and a 0.4% rise in other underwriting expenses. PGR wrote down goodwill associated with the ARX Holding Corp. acquisition of $224.8 million.

Policies in force were soft in the Personal Auto segment, having declined 2% from the year-ago month’s figure to 17.2 million. Special Lines improved 5% to 5.5 million.

In Progressive’s Personal Auto segment, Direct Auto was flat year over year at 9.6 million, while Agency Auto dropped 5% to 7.6 million.

Progressive’s Commercial Auto segment rose 12% year over year to 1 million. The Property business had 2.8 million policies in force, up 6%.

Financial Update

Progressive’s book value per share was $25.92 as of Jun 30, 2022, down 16.6% from $31.07 on Jun 30, 2021.

Return on equity in June 2022 was -10.7%, down 3920 bps year over year. Total debt-to-total capital ratio deteriorated 660 bps to 29.

Zacks Rank

Progressive currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

RLI Corp. RLI will report second-quarter 2022 results on Jul 20. The Zacks Consensus Estimate for the second quarter is pegged at $1.02, suggesting a decline of 6.4% from the year-ago quarter’s reported figure.

RLI’s bottom line beat estimates in the last four quarters.

The Travelers Companies Inc. TRV will report second-quarter 2022 results on Jul 21. The Zacks Consensus Estimate for the first quarter is pegged at $2.00, suggesting a decline of 42% from the year-earlier quarter’s reported number.

TRV’s earnings beat estimates in the last four quarters.

Chubb Ltd. CB is set to report second-quarter 2022 results on Jul 26. The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.62, indicating no change from the year-ago quarter’s reported figure.

Chubb delivered an earnings surprise in the last four reported quarters.


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