February Progressive (PGR) earnings increase as revenue increases year-on-year

The progressive society PGR reported earnings per share of 60 cents for February 2021, which is more than five-fold compared to the previous year. The upward trend is due to an improved return on sales as well as net realized profits from securities.

The Progressive share has lost 7.9% compared to the beginning of the year Industry8.9% more.

February figures in detail

Progressive posted net earned premiums of $ 3.9 billion, up 13% from $ 3.4 billion last month. Net earned premiums were $ 3.2 billion, up 10% from $ 2.9 billion last February.

Net realized income from securities of $ 128.4 million was recovered from a loss of $ 257 million in the same month last year.

The combined ratio – the percentage of premiums paid out as entitlements and expenses – worsened by 110 basis points (bps) to 91.4 compared to the previous year.

Total operating income was $ 3.3 billion, an improvement of 9.2% year over year. This is due to a 9.9% increase in premiums, a 6.6% increase in fee income and a 9.1% increase in service revenue. However, the 14% lower investment result was an obstacle.

Total cost increased 11.2% to $ 3.1 billion, primarily due to 11.6% higher losses and loss adjustment expenses and a 10.6% increase in policy acquisition costs, 3% increase in other underwriting and 9 % higher other underwriting expenses in February 2021.

In February, the policies in place for both the vehicle and real estate businesses were impressive. In the vehicle business, the Personal Auto segment improved by 11% over the previous year to EUR 16.9 million. Special Lines increased by 8% to 4.9 million policies compared to the same month last year.

In Progressive’s Personal Auto segment, Agency Auto was up 9% to 7.8 million, while Direct Auto was up 13% to 9.1 million.

Progressive’s Commercial Auto segment rose by 10% year-on-year to EUR 0.8 million. The real estate business had 2.5 million policies in force in the month under review, an increase of 13% over the previous year.

The company’s book value per share was $ 29.11 as of February 28, 2021, up 22.1% from $ 23.85 on February 29, 2020.

The return on equity for the last 12 months was 36.1%, an increase of 330 basis points compared to 32.8% in February 2020. The leverage ratio deteriorated year-on-year by 10 basis points to 23.5 as of February 28, 2021.

Progressive currently has a Zacks Rank 3 (Hold).

Shares to consider

Some better-ranked stocks are from the same industry Markel MKL, CNA Financial CNA and Alleghany YY

Markel posted a profit surprise of 75.11% in the most recent quarter. It has a Zacks rank 1 (Strong Buy). You can see The full list of today’s Zacks # 1 Rank stocks can be found here.

CNA Financial posted a profit surprise of 16.04% in the most recent quarter. It has a rank 2 zack (Buy).

Alleghany posted a profit surprise of 48.79% in the last quarter. It has a rank 2 zack.

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The Progressive Corporation (PGR): Free Stock Analysis Report

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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