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PGR · PROGRESSIVE CORP/OH/

50 filings

10-Q

PGR 10-Q Quarterly Reports

PROGRESSIVE CORP/OH/ - 50 quarterly reports

Filing record · 2016–202610-K1110-Q328-K177

PGR filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 177 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. FY2019 annual report10-K · Mar ’20Mar ’20
  3. Leadership change8-K · Mar ’23Mar ’23
  4. Leadership change8-K · Mar ’25Mar ’25
  1. 2026-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2026

    The Progressive Corporation (PGR) reported solid financial results for the second quarter and first six months of 2026. Net income for the six months ended June 30, 2026, increased to $6.13 billion from $5.74 billion in the prior year, driven by higher net premiums earned and investment income. The company maintained strong underwriting profitability across both its Personal Lines and Commercial Lines segments, achieving companywide underwriting profit margins of 12.7% for the quarter and 13.1% year-to-date. Despite increased competition, Progressive demonstrated consistent growth in premiums written and policies in force, surpassing 40 million policies. Investment portfolio fair value remained robust at $97.2 billion, with a stable pretax recurring investment book yield of 4.2%. The company also returned significant capital to shareholders through dividends and share repurchases, underscoring its financial strength and commitment to shareholder value.

    Aug 3, 2026
  2. 2026-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2026

    The Progressive Corporation (PGR) reported solid financial results for the first quarter of 2026, showcasing strong growth in net premiums written and policies in force. The company achieved a companywide underwriting profit margin of 13.6%, driven by robust performance in both its Personal Lines and Commercial Lines segments, which reported margins of 14.0% and 11.0%, respectively. Net income saw a significant increase year-over-year, supported by improved underwriting profit and higher net investment income. Despite an increase in advertising spend, Progressive maintained profitability due to growth in net premiums earned. The company also reported a substantial increase in its investment portfolio's fair value, though total comprehensive income decreased due to net unrealized losses on fixed-maturity securities, contrasting with gains in the prior year. Progressive's capital position remains strong, with total capital increasing due to retained earnings and debt issuances, while maintaining a conservative debt-to-capital ratio.

    May 4, 2026
  3. 2025-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2025

    Progressive Corporation (PGR) reported strong financial results for the third quarter and first nine months of 2025. The company experienced significant year-over-year growth in net premiums earned and policies in force across its insurance operations, driven primarily by its Personal Lines segment, particularly personal auto products. Despite a slight decrease in net premiums written for Commercial Lines, overall underwriting profit remained robust. Investment income also saw a notable increase due to growth in invested assets and higher yields. The company maintained a strong capital position with a healthy debt-to-total capital ratio. A significant event impacting profitability in the third quarter was a $950 million policyholder credit expense related to excess profits in Florida, which will be refined through the end of the year. Management is focused on continued growth, profitability, and capital management, while navigating a dynamic market environment that includes evolving economic conditions and regulatory considerations.

    Nov 3, 2025
  4. 2025-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2025

    Progressive Corporation (PGR) demonstrated robust financial performance in the quarter ending June 29, 2025, with significant year-over-year growth in both net premiums earned and net income. Total revenues reached $22.0 billion for the quarter, a substantial increase driven by strong performance in net premiums earned and a notable rise in investment income. Net income surged to $3.18 billion, up from $1.46 billion in the prior year's second quarter, leading to diluted earnings per share of $5.40. This impressive growth was supported by a healthy underwriting profit margin of 13.8%, reflecting effective cost management and favorable loss development. The company's investment portfolio also showed strength, with total fair value increasing to $88.6 billion. Investment income saw a significant increase of 27% year-over-year, driven by a larger investment base and higher book yield. While the company experienced a slight decrease in policy life expectancy across some lines, overall growth in policies in force and a solid financial position with total capital of $39.5 billion at quarter-end indicate a strong operational outlook.

    Aug 4, 2025
  5. 2025-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2025

    Progressive Corporation (PGR) reported a strong first quarter ending March 31, 2025, with net income of $2.57 billion, or $4.37 per diluted share, a notable increase from $2.33 billion, or $3.94 per diluted share, in the prior year. Total revenues grew to $20.4 billion from $17.2 billion, driven by a significant rise in net premiums earned, up 20% year-over-year to $19.4 billion. This growth was supported by a 17% increase in net premiums written and an 18% rise in policies in force across both Personal and Commercial Lines segments. The company maintained a solid underwriting profit margin of 14.0%, slightly improving from 13.9% in the prior year, benefiting from favorable prior accident years reserve development and decreased accident frequency. Investment income also saw a substantial increase, growing 32% to $814 million, reflecting higher invested assets and improved book yields. While the company experienced net realized losses on securities in the current quarter, compared to gains in the prior year, the overall comprehensive income increased significantly to $3.47 billion from $2.12 billion, largely due to a substantial reduction in net unrealized losses on fixed-maturity securities. Progressive continues to focus on strategic investments in advertising to drive growth, which led to an increase in the expense ratio but is expected to support future policy growth.

    May 5, 2025
  6. 2024-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2024

    Progressive Corporation (PGR) reported a strong third quarter of 2024, marked by significant growth in net premiums written and earned, up 25% and 23% year-over-year, respectively. This robust premium growth was driven by increased advertising spend, the unwinding of prior non-rate restrictions, and rate increases taken in 2023. The company's underwriting profit improved significantly, with a combined ratio of 89.0 for the quarter, a 3.4-point improvement from the prior year, reflecting better loss ratios due to lower personal auto accident frequency and favorable prior accident year reserve development, partially offset by a higher expense ratio driven by increased advertising spend. Investment income also saw a substantial increase of 45% year-over-year, benefiting from higher coupon rate securities as new cash from operations and maturing bonds were reinvested. The company's investment portfolio grew to $79.4 billion. Despite incurring significant catastrophe losses from Hurricane Helene and subsequently Hurricane Milton, the company remains financially sound. Progressive reported a substantial increase in net income, primarily driven by the strong performance of its insurance operations and improved investment returns.

    Nov 4, 2024
  7. 2024-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2024

    Progressive Corporation (PGR) reported strong financial results for the second quarter of 2024, marked by significant growth in net premiums earned, which increased by 19% year-over-year to $17.2 billion. This growth was driven by robust performance across all operating segments, particularly in Personal Lines, which saw a 21% increase in net premiums earned. The company also experienced a substantial increase in policies in force, up 9% to 32.3 million, with Personal Auto products contributing significantly to this growth. Profitability for the quarter showed marked improvement, with a companywide combined ratio of 91.9, an 8.5 point improvement from the prior year. This was bolstered by favorable prior accident year reserve development and stabilizing loss severity trends in Personal Auto. Investment income also saw a significant increase of 51%, contributing to a 73% rise in net income to $1.5 billion for the quarter. The company's financial position remains strong, with total capital of $30.2 billion at the end of the quarter.

    Aug 5, 2024
  8. 2024-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2024

    Progressive Corporation (PGR) reported a strong first quarter for 2024, demonstrating significant growth and improved profitability across its insurance operations. Net premiums written and earned saw substantial increases of 18% and 19% respectively, year-over-year, driven by rate increases and a 7% rise in policies in force. The company's combined ratio significantly improved to 86.1% from 99.0% in the prior year, reflecting effective pricing strategies, favorable prior accident year reserve development, and a lower expense ratio, notably a 7% decrease in advertising spend. Investment income also saw a robust 47% increase, benefiting from higher coupon rates on new investments. Financially, Progressive ended the quarter with a stronger capital position, with total capital increasing due to comprehensive income and partially offset by the redemption of Series B preferred shares. The company continues to focus on profitable growth by balancing rate adjustments with improved customer retention and efficient expense management. The overall financial health and operational performance indicate a positive trajectory for the company.

    May 6, 2024
  9. 2023-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2023

    Progressive Corporation (PGR) reported strong financial results for the third quarter and nine months ended September 30, 2023. The company demonstrated significant growth in net premiums written, up 20% year-over-year for the quarter, and an increase in policies in force. Underwriting profitability improved substantially, with a companywide underwriting profit margin of 7.6% for the quarter, a marked improvement from the prior year, driven by lower catastrophe losses and effective cost management, including a notable decrease in advertising spend. Investment income also saw a substantial increase of 53% year-over-year for the quarter, benefiting from rising interest rates. While the company faced increased loss and loss adjustment expenses, particularly due to unfavorable prior year reserve development, overall profitability showed a strong rebound. Net income for the quarter increased by $1.0 billion compared to the prior year period. Progressive's capital position remains robust, with total capital increasing and a manageable debt-to-total capital ratio. The company continues to focus on achieving its profitability targets through a combination of rate adjustments and expense discipline.

    Oct 31, 2023
  10. 2023-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2023

    Progressive Corporation (PGR) reported strong top-line growth in the second quarter of 2023, with net premiums written increasing by 18% year-over-year, driven by policy growth and rate increases across all segments. The company saw a significant increase in net income and a decrease in comprehensive loss compared to the prior year. This improvement was largely attributable to higher net realized gains on securities and a substantial increase in recurring investment income, benefiting from rising interest rates. However, underwriting profitability faced headwinds. The combined ratio for the quarter worsened to 100.4% from 95.6% in the prior year, primarily due to unfavorable prior accident year reserve development and increased catastrophe losses. The company is actively managing expenses, including a reduction in advertising spend, and plans to continue implementing rate increases across its personal auto, commercial auto, and property lines to achieve its target underwriting profitability of a 4% profit margin. Despite these challenges, Progressive ended the quarter with a strong capital position and remains focused on balancing growth with profitability.

    Aug 1, 2023
  11. 2023-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2023

    Progressive Corporation (PGR) reported a solid first quarter for 2023, demonstrating significant growth in both net premiums written and policies in force, up 22% and 9% year-over-year, respectively. This growth, attributed to competitive pricing and increased advertising spend, was achieved while navigating an environment of rising loss costs and unfavorable prior accident years reserve development, which impacted the combined ratio to 99.0%. Investment income saw a substantial year-over-year increase of 73%, bolstered by rising interest rates and positive holding period gains on common equity. Despite a challenging underwriting environment marked by higher claim severity and unfavorable reserve development, particularly in personal auto and property lines, Progressive maintained a strong balance sheet. The company's total capital increased, and its debt-to-total capital ratio remained within policy limits. Management is proactively addressing profitability concerns through targeted rate increases and strategic adjustments to advertising spend, indicating a commitment to achieving its underwriting profitability goals even if it impacts near-term growth.

    May 2, 2023
  12. 2022-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2022

    The Progressive Corporation reported a net income of $124.1 million ($0.20 per diluted share) for the three months ended September 30, 2022, a slight increase from $118.5 million ($0.19 per diluted share) in the prior year period. However, for the nine months ended September 30, 2022, the company reported a net loss of $104.9 million ($0.21 per diluted share), a significant reversal from a net income of $2,388.6 million ($4.03 per diluted share) in the same period last year. This shift is largely attributable to substantial unrealized losses on investment securities due to rising interest rates. Total revenues for the third quarter increased to $12.8 billion from $11.9 billion year-over-year, driven by higher net premiums earned. However, investment income was negatively impacted by significant net holding period losses on securities totaling $152.1 million in the third quarter of 2022, compared to a net gain of $15.9 million in the prior year. Underwriting operations showed improvement, with an underwriting profit margin of 0.8% in the third quarter of 2022, up from a loss margin of 0.4% in the prior year, largely due to rate increases and improved performance in Personal and Commercial Lines, though significantly impacted by catastrophe losses from Hurricane Ian.

    Nov 1, 2022
  13. 2022-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2022

    Progressive Corporation (PGR) reported a net loss of $542.9 million ($0.94 per diluted share) for the three months ended June 30, 2022, a significant decline from the net income of $790.1 million ($1.34 per diluted share) in the prior year's quarter. This downturn was primarily driven by substantial unrealized losses in the investment portfolio, specifically a net holding period loss of $1.72 billion on securities, contrasting with a gain of $54.2 million in the same period last year. Additionally, a goodwill impairment charge of $224.8 million related to the Property segment impacted the results. Despite the net loss, the company maintained an underwriting profit margin of 4.4% for the quarter, demonstrating the resilience of its core insurance operations. Net premiums written increased by 8% year-over-year, reflecting successful rate increases implemented to counter rising loss costs. For the six-month period ended June 30, 2022, Progressive reported a net loss of $229.0 million ($0.41 per diluted share), compared to a net income of $2,270.1 million ($3.85 per diluted share) in the first six months of 2021. This decline was also largely attributable to investment portfolio performance and the goodwill impairment. The company's investment portfolio fair value stood at $51.9 billion. Management highlighted its focus on profitability over premium growth and outlined strategic initiatives, including rate adjustments and underwriting criteria tightening, particularly in the personal auto and property segments, to navigate inflationary pressures and increasing claim severity. The company reiterated its commitment to capital strength and returning value to shareholders through dividends.

    Aug 2, 2022
  14. 2022-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2022

    The Progressive Corporation (PGR) reported its first quarter 2022 financial results, showcasing a mixed performance driven by increased premiums but impacted by rising loss costs and investment valuations. Net income significantly decreased year-over-year, primarily due to a reduction in underwriting profit and net realized gains on securities. Despite these challenges, the company demonstrated resilience through strategic pricing actions and underwriting adjustments. Net premiums written saw a healthy increase, reflecting growth across its segments, particularly Commercial Lines. While policies in force also grew, the pace of new applications, especially in Personal Lines, slowed due to rate increases and tighter underwriting. The company's investment portfolio experienced a decline in total return, influenced by rising interest rates and market conditions, though its overall capital position remained strong. Progressive remains focused on profitability and customer retention, implementing measures to navigate the current economic environment.

    May 2, 2022
  15. 2021-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2021

    Progressive Corporation (PGR) reported a mixed financial performance for the third quarter and nine months ended September 29, 2021. While total revenues increased year-over-year to $11.86 billion for the quarter and $35.21 billion for the nine months, net income saw a significant decline. Net income for the quarter fell to $118.5 million, a sharp decrease from $1.53 billion in the prior year, primarily due to increased losses and loss adjustment expenses, significantly impacted by catastrophe losses like Hurricane Ida and higher auto accident frequency and severity. For the nine months, net income was $2.39 billion, down from $4.02 billion year-over-year. Despite the decline in profitability, the company saw growth in its insurance operations, with net premiums written increasing by 13% to $12.45 billion in the third quarter. Policies in force also grew, indicating an expanding customer base. The company also successfully integrated the acquisition of Protective Insurance Corporation in June 2021. Investments also grew to $52.3 billion, though investment income declined due to lower portfolio yields resulting from reinvesting cash at lower interest rates.

    Nov 2, 2021
  16. 2021-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2021

    Progressive Corporation (PGR) reported its second quarter 2021 financial results, highlighting a significant increase in net premiums written, up 13% to $11.5 billion year-over-year, and growth in policies in force. However, the company experienced a notable decrease in net income and comprehensive income, down 56% and 63% respectively for the quarter, primarily driven by a substantial increase in losses and loss adjustment expenses (LAE). The increase in LAE was attributed to higher auto accident frequency and severity in both personal and commercial auto products, as pandemic-related restrictions eased, leading to increased vehicle miles traveled and claims. While underwriting expenses decreased year-over-year, the rise in claims costs eroded the underwriting profit margin, which declined to 3.5% from 12.3% in the prior year's second quarter. The company also completed the acquisition of Protective Insurance Corporation for approximately $338 million, expanding its commercial fleet and affinity program capabilities. Despite the decline in profitability, Progressive's investment portfolio remained robust, growing to $50.9 billion, although investment income saw a decrease due to lower interest rates. The company continues to manage its capital prudently, returning capital to shareholders through dividends and share repurchases, while maintaining a debt-to-total capital ratio below 30%. Management is taking actions to address profitability pressures, including rate adjustments and a reduction in advertising spend in certain areas.

    Aug 3, 2021
  17. 2021-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2021

    Progressive Corporation (PGR) reported strong financial results for the first quarter of 2021, driven by significant growth in net premiums written and a rebound in investment gains. Net income surged 114% year-over-year to $1.48 billion, or $2.51 per diluted share, largely due to favorable market conditions that boosted investment portfolio returns, particularly in equity securities, contrasting with losses in the prior year's quarter. The company also saw a 19% increase in total underwriting operations net premiums written, reaching $11.7 billion, and expanded its policies in force to 25.7 million companywide. The company's underwriting profit margin for the quarter was 10.7%, a decrease from 13.1% in the prior year, primarily due to higher catastrophe losses and increased claim severity in the Personal Lines segment, partially offset by improved performance in Commercial Lines. Despite the slight dip in underwriting margin, the overall financial performance demonstrates resilience and growth, supported by a well-managed investment portfolio and effective strategies across its insurance segments.

    May 4, 2021
  18. 2020-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2020

    The Progressive Corporation's (PGR) third quarter 2020 results demonstrate robust growth and improved profitability, largely driven by strong underwriting performance and a rebound in its investment portfolio. Net income attributable to Progressive surged by 82% year-over-year for the quarter, and comprehensive income saw a significant increase of 68%. This was fueled by a 14% increase in total underwriting net premiums written, reaching $11.0 billion, and a 12.2% underwriting profit margin, up from 8.1% in the prior year's quarter. The company benefited from lower auto accident frequency due to reduced driving, partially offset by policyholder credits and increased advertising spend. Progressive's investment portfolio also performed well, with its fair value increasing to $45.8 billion. Realized gains were recognized in both fixed-income and equity portfolios, contributing to the overall financial strength. The company maintained a strong capital position, with total capital (debt plus shareholders' equity) at $23.5 billion and a debt-to-total capital ratio below 30%. Management expressed confidence in the company's liquidity and capital resources to meet future obligations and continue strategic growth initiatives, including the recent full acquisition of ARX Holding Corp.

    Nov 3, 2020
  19. 2020-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2020

    The Progressive Corporation (PGR) reported a strong second quarter for 2020, with significant increases in net income and comprehensive income attributable to Progressive, up 83% and 88% respectively, compared to the same period in the prior year. This robust performance was driven by a combination of factors, including strong underwriting results and substantial gains in investment portfolios. The company benefited from reduced auto accident frequency due to COVID-19 restrictions, leading to a decrease in loss and loss adjustment expenses. While expenses were impacted by policyholder credits and increased bad debt provisions related to pandemic relief efforts, the overall underwriting margin improved significantly.

    Aug 4, 2020
  20. 2020-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2020

    In the first quarter of 2020, Progressive Corporation (PGR) reported net income of $692.7 million, or $1.17 per diluted share, a decrease from $1,078.4 million, or $1.83 per diluted share, in the prior year's quarter. This decline was largely attributable to significant holding period losses on equity securities, exacerbated by the onset of the COVID-19 pandemic in March. Despite the net income decrease, the company demonstrated resilience in its core insurance operations, with net premiums written increasing by 7% to $9.87 billion and total policies in force growing by 9% to 22.9 million. The underwriting profit margin remained strong at 13.1%, driven by a favorable decrease in accident frequency, particularly in the personal auto segment. The company's investment portfolio experienced a decline in value, with a total portfolio return of (0.6)% for the quarter, heavily influenced by market volatility in March. The fixed-income portfolio saw a positive return due to declining interest rates, while the common stock portfolio experienced a significant loss. Progressive proactively managed its capital, issuing $1.0 billion in senior notes and temporarily suspending open market share repurchases to preserve liquidity amidst economic uncertainty. Management noted that the COVID-19 pandemic significantly impacted the latter part of March, affecting new business applications and leading to increased allowances for doubtful accounts due to billing leniency programs.

    May 5, 2020
  21. 2019-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2019

    Progressive Corporation (PGR) reported strong revenue growth in the third quarter of 2019, with net premiums written increasing by 12% year-over-year to $9.6 billion, driven by a 10% increase in policies in force to 22.1 million. While top-line growth was robust, net income attributable to Progressive decreased by 9% year-over-year for the quarter, primarily due to a lower underwriting margin (8.1% vs. 9.7% in Q3 2018). This margin compression was attributed to higher claim severity and unfavorable prior-year reserve development, particularly in personal auto and commercial lines, which offset lower auto frequency and investment income gains. However, for the first nine months of 2019, net income increased by 23% year-over-year, benefiting from both underwriting profitability and a significant increase in net realized gains on securities, particularly from equity investments. The company's investment portfolio remains substantial at $38.6 billion, with a strong allocation to investment-grade fixed-income securities and a moderate duration. Progressive maintains a strong capital position with a debt-to-total capital ratio below 30%.

    Nov 6, 2019
  22. 2019-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2019

    Progressive Corp. (PGR) reported strong financial results for the second quarter and first six months of 2019, driven by robust growth in its insurance operations. Net premiums earned increased by 16% year-over-year for the quarter and 17% for the first six months, accompanied by a 10% rise in policies in force, reaching 21.6 million. This growth translated into a significant increase in profitability, with net income attributable to Progressive rising 39% for the quarter and 45% year-to-date. The company's underwriting performance improved, with an overall underwriting margin of 9.6% for the quarter and 10.4% year-to-date, reflecting strong performance in Personal and Commercial Lines. While the Property segment experienced an underwriting loss, it improved significantly year-over-year. Investment income also saw a healthy increase, contributing to the overall strong financial results. The company maintained a solid capital position with a debt-to-total capital ratio well below 30%.

    Aug 7, 2019
  23. 2019-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2019

    The Progressive Corporation reported strong financial results for the first quarter ended March 31, 2019. The company saw a significant increase in total revenues, reaching $9.3 billion, up from $7.43 billion in the same period last year. This growth was driven by robust performance in net premiums earned, which rose by 18% year-over-year, and a notable increase in investment income. Net income attributable to Progressive shareholders surged by 50% to $1.078 billion, or $1.83 per diluted share, compared to $718.0 million, or $1.22 per diluted share, in the prior year. A key driver of the increased net income was a substantial shift from net realized losses in the prior year to significant net realized gains in the current quarter, primarily from equity securities, totaling $414.5 million. Additionally, the company reported strong growth in policies in force, up 11% year-over-year across its Personal, Commercial, and Property lines of business, indicating successful customer acquisition and retention efforts. The effective tax rate increased due to the reversal of tax credits from renewable energy investments, but overall capital remains strong with a debt-to-total capital ratio below 30%.

    May 1, 2019
  24. 2018-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2018

    Progressive Corporation (PGR) reported a strong third quarter of 2018, demonstrating robust growth in both premiums earned and policies in force, up 21% and 13% year-over-year, respectively. The company's underwriting operations were particularly strong, driven by a significant reduction in catastrophe losses compared to the prior year and improved average written premium per policy. This led to a substantial increase in net income and comprehensive income attributable to Progressive, with an underwriting margin of 9.7%. Investment performance contributed positively, though less dramatically than underwriting, with a pretax book yield of 2.9% on recurring investment income. The company maintained a conservative investment strategy with a focus on quality and managed its portfolio duration to mitigate interest rate risk. Progressive also continued to strengthen its capital position through debt and preferred stock issuances, maintaining a debt-to-total capital ratio below 30%, and demonstrating a solid liquidity position through positive operating cash flows.

    Oct 31, 2018
  25. 2018-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2018

    Progressive Corporation (PGR) reported strong financial results for the quarter ending June 30, 2018, showcasing significant growth in both underwriting and investment income. Net income attributable to Progressive surged by 92% year-over-year to $704.2 million, or $1.19 per diluted share. This impressive growth was primarily driven by a 21% increase in net premiums earned, reaching $7.6 billion, coupled with a substantially improved underwriting margin of 9.1% compared to 6.8% in the prior year period. The company also benefited from a lower effective tax rate due to the Tax Cuts and Jobs Act of 2017. The company's operational segments, particularly Personal Lines and Commercial Lines, demonstrated robust performance with healthy pretax profits. While the Property segment incurred an underwriting loss, this was largely attributed to catastrophe losses and acquisition-related amortization expenses. Investment income also saw a substantial increase of 38% to $192.1 million, supported by higher average assets and portfolio yields. Progressive's balance sheet remains strong, with total capital growing and a debt-to-total capital ratio well within its financial policy limits.

    Jul 31, 2018
  26. 2018-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2018

    Progressive Corporation (PGR) reported robust financial results for the first quarter ending March 31, 2018. The company experienced significant growth in net premiums earned, up 19% year-over-year, driven by a 12% increase in policies in force, reaching 18.9 million. This strong underwriting performance, coupled with reduced catastrophe losses and improved auto claim frequency, led to a substantial 69% increase in net income attributable to Progressive. The underwriting margin improved to 11.6%, a 3.3-point increase from the prior year, reflecting effective pricing strategies and operational efficiencies. From an investment perspective, the fair value of the investment portfolio stood at $29.3 billion. While the overall investment portfolio returned (0.3)% for the quarter due to rising interest rates and widening credit spreads impacting fixed-income securities, the company maintained a high-quality, liquid portfolio with a weighted average credit quality of AA- and a duration of 2.6 years. Progressive also strategically increased its capital base by issuing $600 million in senior notes and $500 million in preferred shares to support projected premium growth and regulatory capital requirements. Overall, the company demonstrated strong operational execution and a solid capital position.

    May 2, 2018
  27. 2017-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2017

    Progressive Corporation (PGR) reported solid revenue growth for the third quarter and first nine months of 2017, with net premiums earned increasing by 14% year-over-year for both periods. Despite a 3% decrease in pretax income for the quarter, largely due to significant catastrophe losses from Hurricanes Harvey and Irma, net income attributable to Progressive saw a 13% increase. This was primarily driven by the adoption of a new accounting standard for employee share-based transactions, which resulted in recognizing a substantial tax benefit. The company demonstrated strong growth in policies in force across its Personal, Commercial, and Property lines of business, indicating effective customer acquisition and retention strategies. The investment portfolio remained robust with a fair value of $27.0 billion at September 30, 2017. The company maintained a high-quality, liquid fixed-income portfolio with a weighted average credit quality of A+ and a relatively short duration, positioning it to manage interest rate risk. Progressive's liquidity and capital resources appear strong, with significant cash flows from operations and a healthy capital base, enabling continued capital deployment through share repurchases and dividends.

    Nov 2, 2017
  28. 2017-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2017

    Progressive Corporation (PGR) reported strong financial results for the period ending June 30, 2017. The company demonstrated robust growth in its core insurance operations, with net premiums earned increasing by 14% for both the three-month and six-month periods compared to the prior year, reaching $6.31 billion and $12.34 billion respectively. This top-line growth was accompanied by improved profitability, as evidenced by a significant increase in net income. For the second quarter of 2017, net income attributable to Progressive surged by 93% to $367.6 million, or $0.63 per diluted share, from $190.9 million, or $0.33 per diluted share, in the prior year period. This strong performance was driven by a combination of higher written premiums, favorable loss trends with lower auto claim frequency, and improved underwriting margins across all operating segments. The company's investment portfolio also contributed positively, with investment income increasing by 21% in the quarter. Progressive strengthened its financial position by issuing new debt and managing its capital effectively, including share repurchases and dividends. The company maintained a solid capital position and liquidity, enabling it to meet its obligations and pursue strategic initiatives. Overall, the filing indicates a period of significant financial strength and operational success for Progressive.

    Aug 2, 2017
  29. 2017-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2017

    For the first quarter of 2017, Progressive Corporation (PGR) demonstrated strong financial performance, characterized by a significant increase in net income and comprehensive income attributable to shareholders, rising by 64% and 71% respectively, year-over-year. This growth was driven by a solid 13% increase in net premiums earned across all segments, coupled with a 7% rise in policies in force. The company met its profitability objective with an 8.3% underwriting margin, benefiting from lower auto claim frequency than anticipated, which more than offset a slight increase in claim severity. The company's investment portfolio, valued at $24.3 billion, also contributed positively, generating a 1.7% total return. Progressive maintained a conservative investment strategy with a focus on high-quality, liquid fixed-income securities and a well-managed duration. The company's capital position remains strong, with total capital increasing to $11.6 billion, and a debt-to-total capital ratio of 26.7%, indicating prudent financial management and ample resources to support ongoing operations and strategic initiatives.

    May 3, 2017
  30. 2016-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2016

    Progressive Corporation (PGR) reported its financial results for the quarter ended September 30, 2016, highlighting a 13% increase in total revenues to $5.9 billion, driven primarily by a 13% rise in net premiums earned to $5.7 billion. Despite top-line growth, net income attributable to Progressive shareholders declined by 29% to $198.7 million, or $0.34 per diluted share, compared to $278.3 million, or $0.47 per diluted share, in the prior year's quarter. This decrease in profitability was largely due to a 20% increase in losses and loss adjustment expenses, influenced by higher catastrophe losses and less favorable prior accident year development, as well as a 31% increase in net realized investment losses. Despite the decline in net income, the company's comprehensive income saw a significant increase of 97%, driven by substantial gains in the unrealized value of its investment portfolio, which more than offset the lower underwriting profit. The company maintained a strong capital position, with total capital (debt plus shareholders' equity) increasing to $11.2 billion. Progressive also continued its strategic focus on growing its customer base and expanding product offerings to become a 'destination insurer,' aiming to meet customers' lifetime insurance needs beyond auto insurance.

    Nov 3, 2016
  31. 2016-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2016

    The Progressive Corporation (PGR) reported its financial results for the second quarter and first six months of 2016. For the three months ended June 30, 2016, net income attributable to Progressive decreased by 47% year-over-year to $190.9 million, or $0.33 per diluted share, compared to $363.3 million, or $0.62 per diluted share, in the prior year period. For the six months ended June 30, 2016, net income attributable to Progressive decreased by 32% year-over-year to $449.1 million, or $0.77 per diluted share, compared to $658.9 million, or $1.12 per diluted share, in the prior year period. Despite the decline in net income, total revenues showed growth, increasing by 10% for the quarter and 12% for the six-month period, primarily driven by an 11% increase in net premiums earned for the quarter and a 13% increase for the six-month period. This top-line growth was partially offset by a significant increase in losses and loss adjustment expenses, which rose 17% for both periods. The company experienced higher catastrophe losses and less favorable prior accident year development, contributing to reduced underwriting profitability.

    Aug 3, 2016
  32. 2016-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2016

    Progressive Corporation (PGR) reported a 14% increase in total revenues for the first quarter of 2016 compared to the same period in 2015, reaching $5.56 billion. This growth was primarily driven by a 14% rise in net premiums earned, which amounted to $5.32 billion. Despite the top-line growth, net income attributable to Progressive decreased by 13% to $258.2 million, largely due to a decline in underwriting profitability. The combined ratio for total underwriting operations increased from 92.7% to 94.6%, primarily influenced by higher catastrophe losses and unfavorable prior accident year loss reserve development. The company's investment portfolio remained substantial at $21.3 billion, contributing to investment income growth. Progressive also returned capital to shareholders through share repurchases and dividends. The company continued to expand its offerings, including a new coverage for Transportation Network Company (TNC) drivers and a pilot program with Uber, indicating a strategic focus on adapting to evolving market needs and customer demands.

    May 5, 2016
  33. 2015-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2015

    Progressive Corporation (PGR) reported its third-quarter 2015 financial results, showcasing robust growth in net premiums written across its Personal and Commercial Lines segments, up 14% and 20% respectively year-over-year. This growth was driven by increases in new applications and positive rate adjustments. The company also announced the completion of its acquisition of a controlling interest in ARX Holding Corp. (ASI), which expands its property and casualty offerings and is expected to enhance its bundling strategy. While revenue streams show strength, net income available to Progressive decreased by 6% to $278.3 million, primarily due to net realized losses on securities compared to gains in the prior year. The company's investment portfolio saw a slight negative total return of (0.4)% in the quarter, impacted by broader market conditions. Despite the dip in net income, Progressive maintained a strong capital position, with total capital increasing to $10.2 billion. The company continues to focus on customer retention and expanding its multi-product offerings.

    Nov 5, 2015
  34. 2015-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2015

    Progressive Corporation's (PGR) second quarter 2015 report shows robust top-line growth driven by an 11% increase in total revenues year-over-year, reaching $5.28 billion. This growth was fueled by a strong performance in net premiums earned, up 11% to $4.99 billion, and a significant 88% surge in total net realized gains on securities. Net income attributable to Progressive shareholders rose by 24% to $363.3 million, resulting in diluted earnings per share of $0.62, a 25% increase from the prior year. The company also saw a substantial increase in total assets, largely due to the acquisition of a controlling interest in ARX Holding Corp. (ARX) in April 2015, which added $1.2 billion in fixed-income securities to its investment portfolio. The acquisition of ARX is a key strategic move, expanding Progressive's property insurance capabilities and contributing to growth in net premiums written, which increased by 13% companywide to $5.25 billion. While comprehensive income saw a decrease due to unrealized losses on investments amidst rising interest rates, the core insurance operations demonstrated strong operational performance. The company's financial condition remains solid, with total capital increasing and prudent management of debt levels.

    Aug 5, 2015
  35. 2015-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2015

    Progressive Corporation (PGR) reported its first-quarter 2015 financial results, indicating a 4% increase in total revenues to $4.90 billion, driven by a 6% rise in net premiums earned to $4.67 billion. While total revenues showed modest growth, net income for the quarter declined by 8% to $295.6 million, or $0.50 per share, primarily due to a significant 72% drop in net realized gains on securities compared to the prior year. The company highlighted strong underwriting profitability, with an underwriting margin of 7.3%, an improvement from 6.6% in the same period last year, driven by better performance in both Personal and Commercial Lines. Investment income remained stable. Despite the decrease in net income, Progressive's total capital position increased, reflecting comprehensive income and a recent debt issuance. Operationally, Progressive saw continued growth in net premiums written across its segments, with notable strength in Direct Personal Lines and Commercial Lines. The company also announced a significant strategic acquisition of a controlling interest in American Strategic Insurance (ASI) to bolster its homeowners insurance offerings and further its bundling strategy. This strategic move, coupled with steady operational performance, positions Progressive for continued market presence.

    May 11, 2015
  36. 2014-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2014

    Progressive Corporation (PGR) reported solid financial results for the nine months ended September 30, 2014. Total revenues grew 5% year-over-year to $14.2 billion, driven by a 5% increase in net premiums earned to $13.5 billion. Net income for the period rose 5% to $910.8 million, translating to diluted earnings per share of $1.53. The company's underwriting operations showed improved profitability, with an underwriting margin of 7.1% for the nine months, up from 6.7% in the prior year, reflecting better loss ratios and expense management, particularly in Commercial Lines. From an investment perspective, the portfolio saw a total return of 3.3% for the nine months ended September 30, 2014, though this was lower than the 3.5% in the prior year, primarily due to softer equity market returns. The company maintained a strong capital position, with total capital of $9.1 billion at the end of the period, and continued to return capital to shareholders through share repurchases and dividends.

    Oct 29, 2014
  37. 2014-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2014

    Progressive Corporation (PGR) reported its second quarter and year-to-date results for 2014, showcasing a 3% increase in total revenues for the quarter and a 5% increase year-to-date, driven by growth in net premiums earned across its Personal and Commercial Lines segments. Despite a decrease in net income for the quarter ($293.4 million, down 10% from Q2 2013) primarily due to lower net realized gains on investments, the company demonstrated strong operational performance with a 16% increase in pretax underwriting profitability for the quarter. The company's investment portfolio remained robust at $18.8 billion, with a focus on high-quality, liquid securities. Capital management remained a priority, with total capital increasing to $9.0 billion. Progressive also continued its focus on growth initiatives, including its usage-based insurance program (Snapshot®) and expansion of mobile acquisition capabilities. The company maintained a strong liquidity position supported by positive operating cash flows.

    Jul 30, 2014
  38. 2014-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2014

    Progressive Corporation (PGR) reported its first-quarter 2014 financial results, showing a 4% increase in net income to $321.3 million, or $0.54 per share, compared to $308.6 million, or $0.51 per share, in the prior year period. This growth was driven by a 5% increase in net premiums written across its insurance segments, reaching $4.68 billion. The company's underwriting profit margin was 6.6%, slightly down from 7.6% in the prior year, primarily due to an increase in loss frequency in personal auto lines, particularly weather-related claims. Investment income saw a modest 3% increase to $103.3 million. Notably, the company recognized substantial net realized gains from its investment portfolio ($119.4 million), significantly higher than the $80.6 million in the prior year, contributing to overall profitability. The total investment portfolio was valued at $17.4 billion. Progressive also continued its capital return initiatives, paying dividends and repurchasing shares, demonstrating a commitment to shareholder value.

    May 12, 2014
  39. 2013-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2013

    Progressive Corporation (PGR) reported its third-quarter and nine-month results for the period ending September 30, 2013. For the third quarter, net income decreased by 16% to $232.4 million, or $0.39 per share, compared to the same period last year, primarily due to lower net realized gains from investments. However, the company saw an improvement in its underwriting profitability, with an underwriting margin of 5.8% compared to 4.1% in the prior year, driven by higher average premiums and fewer catastrophe losses. Net premiums written grew by 5% year-over-year, with solid performance in the Personal Lines segment, particularly the Direct auto business. For the first nine months of the year, net income increased by 33% to $865.6 million, or $1.43 per share, reflecting strong operational performance and improved investment results compared to the prior year. The company's investment portfolio remained substantial at $18.0 billion, with a continued focus on high-quality, liquid securities. Progressive's capital position remained strong, with total capital of $8.8 billion, and the company continued to return capital to shareholders through debt repurchases and share buybacks.

    Nov 12, 2013
  40. 2013-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2013

    The Progressive Corporation (PGR) reported a strong second quarter 2013, with net income up 174% year-over-year to $324.6 million, or $.54 per diluted share. The improvement was driven by two main factors: underwriting profitability and net realized investment gains. The companywide underwriting margin was 6.7% for the quarter (combined ratio 93.3), 4.3 points better than a year earlier and above the company's 4% target. Net premiums earned rose 7% to $4.28 billion, supported by earned premium per policy increases from rate hikes taken in 2012. Total net realized gains on securities were $132.9 million, versus $4.7 million of losses in the prior-year quarter. Beneath the headline numbers, growth momentum is softening. Policies in force grew only 1% and new applications fell 4% in Personal Lines, with Agency auto new applications down 7% and policy life expectancy down 6% in Agency and 7% in Direct auto. Management attributes these trends to the 2012 rate increases. Written premium per policy rose about 7% in Agency auto and 4% in Direct auto, and the company trimmed rates in some large Direct auto states. Investment income fell 9% to $102.2 million on lower yields. Year-to-date unfavorable prior-year reserve development of $82.0 million, and catastrophe losses of $83.4 million in the quarter, were also noted. Balance sheet strength remains solid. Shareholders' equity rose to $6.52 billion, total capital was $8.6 billion, and the debt-to-total-capital ratio fell to 24.0% from 25.6% at year-end 2012. The company repurchased 3.0 million shares in the quarter for $75.4 million, and no annual dividend had been declared as of the filing date. The Gainshare factor year-to-date is 1.19, which signals a potential variable dividend payable after year-end.

    Aug 6, 2013
  41. 2013-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2013

    The Progressive Corporation (PGR) reported a strong first quarter 2013, with net income up 20% year over year to $308.6 million, or $.51 per diluted share, compared with $257.6 million, or $.42, in Q1 2012. Total revenues rose 8% to $4.44 billion, driven by an 8% increase in net premiums earned to $4.18 billion. Underwriting profitability improved meaningfully: the companywide underwriting margin was 7.6% (combined ratio 92.4), up 1.7 points from 5.9% a year earlier and above management's target of at least 4%. The improvement reflects earned premium gains from rate increases taken in the second and third quarters of 2012, partly offset by higher catastrophe losses (1.1 combined ratio points versus 0.4), and unfavorable prior-accident-year reserve development (1.6 points). The underlying business is showing signs of slowing growth. Net premiums written rose 7%, but new personal auto applications fell 12% in Personal Lines (Agency auto down 15%) as rate increases weighed on demand, and policy life expectancy declined 3% in Agency auto and 5% in Direct auto. Policies in force grew only 2% companywide. Investment income fell 12% to $100.5 million on lower yields, with the pretax book yield down to 2.6% from 3.1%. Shareholders' equity rose to $6.39 billion, and the debt-to-total-capital ratio improved to 24.4% from 25.6% at year-end 2012. The company repurchased 2.3 million shares for $51.3 million and paid $175.6 million in its annual variable dividend. Management also noted a Gainshare factor of 1.15 year to date, implying a potential 2013 variable dividend, which would be declared in December. For investors, the key questions are whether the margin gains from 2012 rate increases can persist as those rates earn through, and whether weakening new business and retention trends, along with a low-yield investment environment, will limit future premium and investment growth. The balance sheet is strong, with an investment portfolio of $17.3 billion rated AA- on average and modest interest rate exposure given a duration of 1.9 years.

    May 2, 2013
  42. 2012-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2012

    The Progressive Corporation (PGR) reported third quarter 2012 results that combined solid top-line growth with a sharp swing in profitability. Total revenues rose 14% year-over-year to $4.35 billion, driven by 8% growth in net premiums earned and $171.9 million of net realized gains, largely from liquidating roughly $580 million (about 25%) of its indexed common stock portfolio. Net income rose 84% to $277.0 million, or $.46 per diluted share. However, the underlying underwriting business softened: the companywide underwriting margin was 4.1% (combined ratio 95.9), down 0.7 points year-over-year, as higher loss severity in personal auto and less favorable prior-year reserve development offset expense leverage. For the nine months, net income fell 14% to $653.2 million, and the underwriting margin dropped to 4.1% from 7.0%, reflecting unfavorable reserve development of $37.9 million versus favorable development a year earlier. Growth indicators were healthy. Net premiums written grew 10% and policies in force grew 5%, with Personal Lines auto written premium per policy up about 4% as Progressive raised rates roughly 6% year-to-date to counter rising claims costs. New applications declined 4% in Personal Lines during the quarter as rate increases dampened demand, while renewals rose 7%. Management is focused on a 96 combined ratio target and reports that Personal Lines remained profitable in most states. Capital management was the most notable feature of the period. Total capital (debt plus equity) rose to $8.6 billion, the debt-to-capital ratio fell to 23.9% from 29.6% at year-end 2011 after the $350 million 6.375% note retirement, and shares outstanding declined to 604.7 million. The Board declared a $1.00 per share special dividend payable November 29, 2012 (about $605 million). The filing also flags that Hurricane Sandy losses incurred in late October are not yet quantified and will be reported in an 8-K, a near-term risk for the fourth quarter.

    Nov 1, 2012
  43. 2012-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2012

    The Progressive Corporation (PGR) reported a quarter of solid top-line growth but sharply weaker profitability for the second quarter ended June 30, 2012. Net premiums written grew 8% to $4.13 billion and policies in force rose 6%, with Agency auto, Direct auto and Commercial Auto all expanding. However, the underwriting margin fell to 2.4% (combined ratio 97.6) from 6.6% a year earlier, well below management's 4% target and its 96 combined ratio goal. Net income dropped 52% to $118.6 million, or $.19 per diluted share, versus $245.2 million, or $.38, in Q2 2011. Management attributed the decline to higher auto claims severity (about 6% year over year) and $22.8 million of unfavorable prior-accident-year reserve development, compared with $52.0 million of favorable development a year earlier. The balance sheet and capital position improved. Debt-to-total-capital fell to 24.7% from 29.6% at year-end 2011 after the $350 million 6.375% Senior Notes matured in January and $30.4 million of 6.70% Debentures were repurchased. Shareholders' equity was $6.29 billion, and the company repurchased 4.0 million shares for $83.0 million in the first half at an average of $20.74. Book value per share is roughly $10.3 on 609 million shares outstanding. Investment returns were modest, with a total portfolio FTE return of 0.3% in the quarter as common stocks fell 2.9%, though the portfolio remains high quality (fixed income rated AA-, duration 1.9 years). Management is responding with rate increases of nearly 3% year to date, with about 20 states implementing further increases in July and more planned for the third quarter. Investors should weigh whether these actions can restore margins toward target against continued severity pressure, the risk of further reserve development, and the company's ongoing capital return program.

    Aug 2, 2012
  44. 2012-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2012

    The Progressive Corporation's first quarter 2012 results show a company still growing its premium base but with a noticeably weaker underwriting result. Net income fell 29% year over year to $257.6 million, or $.42 per diluted share, versus $362.9 million ($.55) in Q1 2011. Total revenues rose 4% to $4.06 billion, driven by a 5% increase in net premiums earned to $3.86 billion. Net premiums written grew 7% to $4.16 billion, with Personal Lines up 6%, Commercial Auto up 13%, and policies in force up 6% companywide. The growth was accompanied by margin compression: the underwriting margin fell to 5.9% from 9.7%, and the combined ratio rose to 94.1 from 90.3. The main driver was $44.3 million of unfavorable prior accident year reserve development, versus $99.0 million of favorable development a year earlier. Management still characterized the 5.9% margin as above its 4% long-term target. Investment performance was strong on a total-return basis but weaker on recurring income. The total portfolio returned 3.3% on an FTE basis, helped by a 12.3% return on common stocks, while recurring investment income fell 7% to $114.7 million as yields declined. Shareholders' equity fell to $6.25 billion from $6.32 billion a year earlier, partly because of $251 million in dividends paid and $37.7 million in share repurchases. Book value was nonetheless higher than at year-end 2011 ($5.81 billion), reflecting $202 million of other comprehensive income from unrealized gains. Total capital (debt plus equity) reached $8.3 billion with a debt-to-capital ratio of 25.0%. Progressive retired $350 million of 6.375% senior notes in January and repurchased $12.6 million of its 6.70% debentures. For investors, the central question is whether the margin compression reflects a temporary reserve-development issue or a sustained rise in auto claims costs. Management attributed the change to unfavorable development on accident year 2011, mainly in personal auto bodily injury and property damage, along with a 3.1-point rise in the loss and LAE ratio. Accident-year loss ratios improved 0.7 points, which suggests underlying frequency trends were favorable. The 2012 variable dividend remains contingent on results: the Gainshare factor stood at 1.26 year-to-date, and the target is one-third of after-tax underwriting income.

    May 7, 2012
  45. 2011-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2011

    The Progressive Corporation (PGR) reported a third quarter 2011 that was profitable but weaker than prior year, driven by higher catastrophe losses, less favorable reserve development, and investment losses. Net income for Q3 2011 was $150.7 million, or $.24 per diluted share, down 42% from $261.6 million ($.40) a year earlier. For the first nine months, net income was $758.8 million ($1.18 per diluted share), roughly flat versus last year. The companywide underwriting margin was 4.8% for the quarter (versus 7.1% a year ago) and 7.0% year-to-date, still above the company's 4% long-term target. The combined ratio was 95.2 for the quarter and 93.0 year-to-date. Net premiums written grew 4% and policies in force grew 5%, led by Direct auto (up 7%) and Agency auto (up 3%), though new applications declined in Personal Lines. The investment portfolio posted a -2.2% fully taxable equivalent total return in Q3, reflecting a 14.4% loss in common stocks and a 9.8% loss in preferred stocks, and net realized losses of $52.6 million. Total portfolio fair value was $16.0 billion and the fixed-income duration was 1.7 years. Shareholders' equity fell to $5.8 billion from $6.7 billion a year earlier, largely because of share repurchases ($832.1 million year-to-date, 42.3 million shares) and a sharp drop in unrealized gains. Total capital (debt plus equity) was $8.3 billion, with a debt-to-total-capital ratio of 29.6%. During the quarter Progressive issued $500 million of 3.75% Senior Notes due 2021 and modified the terms of its 6.70% junior subordinated debentures, surrendering a deferral right it had never used. Management also disclosed that its 2011 Gainshare factor year-to-date is 1.07, which bears on the annual variable dividend the Board would consider declaring in December 2011. The company remains solvent and liquid, with $1.5 billion of operating cash flow year-to-date, a $350 million debt maturity due in January 2012, and a $125 million undrawn credit facility.

    Nov 7, 2011
  46. 2011-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2011

    The Progressive Corporation (PGR) reported strong second-quarter 2011 results, with net income of $245.2 million, or $.38 per diluted share, up 16% from $211.9 million a year earlier. Net premiums earned grew 4% to $3.72 billion, and the company's underwriting margin was 6.6% (combined ratio 93.4), comfortably above its 4% long-term target, though down 0.7 points year over year. Results were pressured by about $125 million of spring catastrophe losses (3.4 points), partially offset by $52.0 million of favorable prior-year reserve development (1.4 points). Year-to-date net income rose 20% to $608.1 million, supported by a $125.7 million swing to net realized gains, driven largely by preferred stock sales and hybrid/derivative holding-period gains. Top-line momentum is mixed. Net premiums written rose 3%, and policies in force grew 5% to 12.2 million, led by Direct auto (+8%) and Agency auto reaching a high-water mark of 4.6 million policies. However, new Personal Lines applications fell 3% in the quarter, partly due to a surge in 2010 driven by Wisconsin's mandatory insurance law, and Commercial Auto new applications fell 4%. Investment income declined 8% as management shortened portfolio duration to about 2.0 years, and the total portfolio's fixed-income return was 1.6% for the quarter. Management also shifted more capital into common equities, which rose to 11.7% of the portfolio from 7.3% a year earlier. Capital management remained active. Progressive repurchased 13.3 million shares in Q2 for $282.9 million (20.1 million shares, $420.9 million year to date), and the board authorized an additional 75 million shares in June 2011. Total capital (debt plus equity) was $8.3 billion, with a debt-to-capital ratio of 23.6%. The annual variable dividend for 2011 is expected to be declared in December 2011, based on a year-to-date Gainshare factor of 1.17 and a 33-1/3% target of after-tax underwriting income. No regular quarterly dividend is paid.

    Aug 9, 2011
  47. 2011-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2011

    The Progressive Corporation (PGR) reported strong first-quarter 2011 results, with net income of $362.9 million, or $.55 per diluted share, up 23% from $295.6 million in the prior-year quarter. Total revenues rose 6% to $3.89 billion, driven by a 5% increase in net premiums earned to $3.67 billion and a jump in net realized investment gains to $99.7 million from $30.8 million. The underwriting profit margin of 9.7% (combined ratio of 90.3) beat the company's 4% long-term target and improved 0.6 points year over year, supported by favorable prior-accident-year reserve development of $99.0 million (2.7 points). Growth was steady but mixed. Net premiums written rose 3%, with Personal Lines up 4% (Direct up 7%, Agency up 2%) and Commercial Auto down 3%. Policies in force grew 6% to nearly 12 million Personal Lines policies, with Agency auto policies reaching an all-time high. However, new applications declined 2% in Personal Lines and 6% in Commercial Auto, which management attributes partly to a tough prior-year comparison and lower consumer shopping activity. Advertising spend rose, pushing the expense ratio up slightly. Capital position strengthened, with total capital (debt plus equity) reaching $8.3 billion and shareholders' equity increasing to $6.32 billion. Operating cash flow was $673.5 million. The company repurchased 6.8 million shares for $138.0 million and paid an annual variable dividend of $.3987 per share. Investment income fell 5% to $123.3 million as yields declined, and the portfolio's fair value reached $15.8 billion with a 2.2-year duration. Management also disclosed that some portfolio positions exceed the single-issuer preferred stock guideline by 1.3% to 1.7% of equity, a point investors may monitor.

    May 9, 2011
  48. 2010-Q3

    PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2010

    The Progressive Corporation (PGR) reported solid third-quarter 2010 results, with net income of $261.6 million ($0.40 per share), essentially flat versus $269.9 million a year earlier. Underwriting remained healthy: the underwriting profit margin was 7.1% for the quarter (above management's 4% target), and net premiums written grew 5%, led by 10% growth in Direct auto and 2% in Agency auto. Total revenues rose 4% to $3.77 billion, but the year-over-year earnings dip reflected higher advertising spend and a larger Gainsharing accrual, partly offset by $109.3 million (3.0 points) of favorable prior accident year reserve development. The balance sheet strengthened meaningfully. Shareholders' equity rose to $6.71 billion from $5.75 billion at year-end 2009, driven by net unrealized investment gains and retained earnings, and total capital (debt plus equity) reached $8.7 billion. During the quarter the company repurchased $222.9 million of its 6.70% junior subordinated debentures through a tender offer, recording a $6.4 million net gain on extinguishment, and it terminated the related replacement capital covenant. The investment portfolio grew to $16.4 billion, with the equity allocation rising to 7.8% of the portfolio from 3.2% a year earlier. The most notable development for shareholders is the Board's declaration of a $1.00 per share extraordinary cash dividend, payable December 29, 2010 (roughly $663 million in aggregate), alongside an annual variable dividend expected in December 2010 based on a 2010 Gainshare factor of 1.65 year-to-date. Management also continued buybacks, repurchasing 5.0 million shares in the quarter at an average of $19.65.

    Nov 8, 2010
  49. 2010-Q2

    PROGRESSIVE CORP/OH/ Quarterly Report for Q2 Ended Jun 30, 2010

    The Progressive Corporation (PGR) reported solid second-quarter 2010 operating results, with an underwriting profit margin of 7.3% ($262.0 million) that exceeded its 4% long-term target, though it was slightly below the prior-year level. Net income fell 15% year over year to $211.9 million ($0.32 per share) from $250.1 million, primarily because of $39.5 million of net realized losses on securities, compared with net realized gains of $15.9 million a year earlier. For the first six months, net income rose 5% to $507.5 million, and net premiums written grew 6%, supported by 15% policy growth in Direct auto and 7% growth in total Personal Lines policies in force. Underwriting margin for the six months declined to 8.2% from 8.9%, reflecting higher advertising spend and a larger Gainsharing accrual. Balance sheet strength improved markedly. Shareholders' equity rose to $6.3 billion from $5.7 billion at year-end 2009, driven by net unrealized gains on the investment portfolio, and total investments reached $15.8 billion. Management highlighted a 1.6-point favorable prior accident year reserve development benefit in the quarter, though the company's pricing trends remain under pressure, with written premium per policy down about 3.5% in Direct auto and about 7% in Commercial Auto. Capital management was a key focus. Progressive ran a tender offer for up to $350 million of its 6.70% junior subordinated debentures due 2067, which expired July 8, 2010, with $222.9 million tendered at $950 per $1,000 principal (plus a $50 early tender payment). The company also terminated the replacement capital covenant, which increases flexibility for future capital decisions. Investors should note that the company held a 22% allocation to higher-risk Group I securities (equities and preferred stocks), and that the portfolio exceeded internal single-issuer guidelines on several preferred and non-investment-grade positions at quarter end.

    Aug 5, 2010
  50. 2010-Q1

    PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2010

    The Progressive Corporation (PGR) reported first-quarter 2010 net income of $295.6 million, or $.44 per diluted share, up 27% from $232.5 million, or $.35 per share, in the first quarter of 2009. Total revenues rose 6% to $3.67 billion, helped by a swing to $30.8 million of net realized gains on securities from a $73.4 million loss a year earlier. Net premiums earned grew 3% to $3.50 billion, while the underwriting profit margin was 9.1%, down from 10.5%, as higher advertising spend and small increases in auto claim frequency and severity weighed on results. Management noted $103.5 million (3.0 points) of favorable prior accident year reserve development. The company's underwriting margin remained well above its 4% target. Growth indicators were strong at the top of the funnel. Net premiums written rose 7%, with Direct auto up 15% and Agency up 5%, while Commercial Auto declined 4%. Companywide policies in force grew 5%, and new business applications rose 15%. Written premium per policy, however, declined in both Direct auto (about 4%) and Commercial Auto (about 8%), reflecting mix shifts toward lower-premium policies. The balance sheet strengthened materially. Shareholders' equity rose to $6.2 billion from $5.7 billion at year-end 2009, driven by net income and $491.0 million of comprehensive income. Total capital (debt plus equity) reached $8.4 billion. Progressive consolidated its mutual company affiliate beginning January 1, 2010, under new accounting guidance, which expanded reported assets and liabilities. The company paid $108.2 million in annual variable dividends and repurchased 2.4 million shares for $42.6 million. Its investment portfolio totaled $15.6 billion, with a 3.2% first-quarter total return and a short 2.2-year fixed-income duration, and common equities rose to 7.7% of the portfolio.

    May 10, 2010