Summary
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.
Financial Highlights
38 data points| Revenue | $4.77B |
| Interest Expense | $30.70M |
| Net Income | $296.10M |
| EPS (Basic) | $0.50 |
| EPS (Diluted) | $0.50 |
| Shares Outstanding (Basic) | 589.80M |
| Shares Outstanding (Diluted) | 593.70M |
Key Highlights
- 1Total revenues increased 5% to $14.2 billion for the nine months ended September 30, 2014.
- 2Net premiums earned grew 5% to $13.5 billion for the nine months ended September 30, 2014.
- 3Net income increased 5% to $910.8 million for the nine months ended September 30, 2014, with diluted EPS of $1.53.
- 4Underwriting margin improved to 7.1% for the nine months ended September 30, 2014, up from 6.7% in the prior year.
- 5The investment portfolio delivered a total return of 3.3% for the nine months ended September 30, 2014.
- 6Total capital remained strong at $9.1 billion as of September 30, 2014.
- 7Progressive repurchased $234.7 million of its common shares and paid $892.6 million in dividends during the first nine months of 2014.