Summary
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%.
Financial Highlights
35 data points| Revenue | $9.45B |
| Interest Expense | $47.40M |
| Net Income | $979.40M |
| EPS (Basic) | $1.67 |
| EPS (Diluted) | $1.66 |
| Shares Outstanding (Basic) | 583.60M |
| Shares Outstanding (Diluted) | 586.90M |
Key Highlights
- 1Net premiums earned increased by 16% to $8.82 billion for the three months ended June 30, 2019, and by 17% to $17.28 billion for the six months ended June 30, 2019, compared to the prior year periods.
- 2Policies in force grew by 10% year-over-year, reaching 21.6 million by June 30, 2019.
- 3Net income attributable to Progressive increased significantly by 39% to $979.4 million for the quarter and 45% to $2,057.8 million for the six months ended June 30, 2019.
- 4The overall underwriting margin improved to 9.6% for the quarter and 10.4% for the six months, indicating enhanced underwriting profitability.
- 5Investment portfolio fair value stood at $36.8 billion as of June 30, 2019, with a pretax book yield of 3.2% for the quarter.
- 6The company maintained a strong financial position, with total capital (debt plus shareholders' equity) of $17.7 billion and a debt-to-total capital ratio of 24.8% at June 30, 2019.
- 7Despite overall strong results, unfavorable prior year reserve development of $210.0 million was noted for the six months ended June 30, 2019, primarily related to personal auto and commercial lines business.