Summary
In 2009, The Progressive Corporation demonstrated resilience, achieving net income of $1.057 billion, a significant turnaround from a net loss of $70 million in 2008. This financial recovery was driven by a combination of increased net premiums written, which grew to $14.0 billion, and an improved combined ratio of 91.6%, down from 94.6% in the prior year. The company's core personal auto insurance segment, accounting for approximately 89% of net premiums written, showed strength, with Progressive maintaining its position as a leading player in the market. Key to the company's performance was its disciplined approach to underwriting and claims handling, supported by a robust investment portfolio that, despite market volatility, contributed positively to comprehensive income. The company also actively managed its capital through share repurchases and a variable dividend policy, returning value to shareholders while maintaining financial stability. Progressive's strategic focus on innovation, customer service, and operational efficiency appears to be paying off, positioning it favorably in a competitive insurance landscape as it expands internationally into Australia.
Financial Highlights
34 data points| Revenue | $14.56B |
| Interest Expense | $139.00M |
| Net Income | $1.06B |
| EPS (Basic) | $1.59 |
| EPS (Diluted) | $1.57 |
| Shares Outstanding (Basic) | 666.80M |
| Shares Outstanding (Diluted) | 672.20M |
Key Highlights
- 1Achieved a net income of $1.057 billion in 2009, a substantial improvement from a net loss of $70 million in 2008.
- 2Net premiums written increased to $14.0 billion in 2009, up from $13.6 billion in 2008, indicating growth in core business.
- 3Combined ratio improved to 91.6% in 2009, demonstrating enhanced underwriting profitability compared to 94.6% in 2008.
- 4The company's investment portfolio had a fair value of $14.7 billion at December 31, 2009, contributing $534.1 million in total investment income before expenses and taxes.
- 5Progressive's market share in the U.S. private passenger auto insurance market increased to approximately 7.6% in 2009 from 7.3% in 2008.
- 6Began selling personal auto insurance in Australia in December 2009, marking international expansion.
- 7Returned capital to shareholders through share repurchases and a variable dividend program, declaring a dividend of $0.1613 per common share in February 2010.