Summary
Progressive Corporation (PGR) reported its first quarter 2012 financial results, showing a 4% increase in total revenues to $4,061.2 million compared to the prior year period. However, net income decreased by 29% to $257.6 million, resulting in diluted earnings per share of $0.42, down from $0.55 in the first quarter of 2011. This decline was primarily driven by a significant increase in losses and loss adjustment expenses, which rose by 10% to $2,762.4 million, and unfavorable prior accident year reserve development of $44.3 million, contrasting with favorable development in the prior year. Despite the decrease in net income, the company demonstrated growth in net premiums written, up 7% to $4,162.5 million, with notable performance in its Commercial Auto segment. The investment portfolio remained substantial at $16.4 billion, contributing positively to total return, though investment income itself saw a 7% decrease. The company also continued its capital management strategies, including debt retirement and share repurchases, maintaining a strong capital position with a debt-to-total capital ratio of 25.0%.
Financial Highlights
34 data points| Revenue | $4.13B |
| Interest Expense | $31.90M |
| Net Income | $257.60M |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 606.20M |
| Shares Outstanding (Diluted) | 610.00M |
Key Highlights
- 1Total revenues increased by 4% to $4,061.2 million.
- 2Net income decreased by 29% to $257.6 million, with diluted EPS at $0.42.
- 3Losses and loss adjustment expenses increased by 10% to $2,762.4 million.
- 4Net premiums written grew by 7% to $4,162.5 million, driven by Personal Lines and Commercial Auto segments.
- 5Investment portfolio valued at $16.4 billion, with a total return of 3.3% for the quarter.
- 6Favorable prior accident year reserve development in Q1 2011 reversed to unfavorable development ($44.3 million) in Q1 2012, impacting profitability.
- 7Debt-to-total capital ratio stood at 25.0% at the end of the quarter.