Summary
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%.
Financial Highlights
35 data points| Revenue | $9.30B |
| Interest Expense | $47.40M |
| Net Income | $1.08B |
| EPS (Basic) | $1.84 |
| EPS (Diluted) | $1.83 |
| Shares Outstanding (Basic) | 583.50M |
| Shares Outstanding (Diluted) | 586.60M |
Key Highlights
- 1Total revenues increased 25% year-over-year to $9.3 billion.
- 2Net income attributable to Progressive increased 50% to $1.078 billion.
- 3Diluted earnings per share rose to $1.83 from $1.22 in the prior year.
- 4Net premiums earned grew 18% to $8.46 billion.
- 5Policies in force increased by 11% to 21.1 million.
- 6Investment income saw a substantial increase of 52% to $252.9 million.
- 7The company reported significant net realized gains on securities ($414.5 million) compared to net realized losses in the prior year ($-48.2 million).