Summary
This 10-Q filing for Progressive Corp. (PGR) for the period ending June 29, 2009, primarily focuses on market risk disclosures and share repurchase activities. The company's investment portfolio's exposure to interest rate risk has slightly decreased, with a weighted average duration of 2.7 years for the fixed-income portfolio, down from 3.2 years at the end of 2008. The Value-at-Risk (VaR) analysis indicates a reduction in potential investment portfolio losses, with the total portfolio VaR decreasing to $386.3 million from $539.8 million at the end of 2008. Significant share repurchase activity is also detailed, with Progressive continuing its buyback program. The company repurchased over 1 million shares in June 2009, under a Board authorization that expired on June 30, 2009. A new authorization for up to 50 million shares commenced on July 1, 2009, reflecting a commitment to return capital to shareholders and neutralize dilution from equity compensation.
Financial Highlights
32 data points| Revenue | $3.58B |
| Interest Expense | $34.70M |
| Net Income | $250.10M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 669.20M |
| Shares Outstanding (Diluted) | 674.60M |
Key Highlights
- 1Progressive's investment portfolio duration has decreased to 2.7 years, suggesting reduced interest rate sensitivity.
- 2The company's Value-at-Risk (VaR) for the total investment portfolio has declined to $386.3 million, indicating a lower potential for short-term losses.
- 3A new share repurchase program of up to 50 million shares was authorized starting July 1, 2009, demonstrating ongoing capital return to shareholders.
- 4In June 2009, Progressive repurchased 1,000,000 shares at an average price of $14.82.
- 5Disclosure controls and procedures were reviewed and deemed effective by management.
- 6No material changes to risk factors have occurred since the prior annual report.
- 7The equity portfolio's beta remains at 1.0, indicating it moves in line with the broader stock market.