) earnings per share (EPS) for Jul 2013 surged 70% year over year
to 17 cents from 10 cents reported in Jul 2012. Net income shot
up 72% year over year to $101.5 million in the reported month.
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Progressive recorded net premiums of $1.73 billion in the
reported month, up 5% from $1.65 billion in the year-ago period.
Net premiums earned were $1.65 billion, up 6% from $1.55 billion
in the year-ago period.
Net realized gains on securities in Jul 2013 were $11.5 million,
down 32% from $16.9 million in the year-ago month. Combined ratio
− the percentage of premiums paid out as claims and expenses −
improved 420 basis points (bps) from Jul 2012 to 92.7% in the
Numbers in July
In the month under review, policies in force remained healthy
with the Personal Auto segment increasing 1% year over year but
declining 0.03% sequentially. Special Lines also increased 2%
year over year and 0.5% over the preceding month.
In Personal Auto, Direct Auto reported growth of 3% year over
year and 0.2% from the preceding month. Agency Auto slipped 0.7%
year over year and 0.2% sequentially. After reporting growth over
the past few quarters, Progressive's Commercial Auto segment
declined 0.1% both on a year over year and sequential basis.
Progressive's total expenses for the reported month increased
3.6% to $1.58 billion from $1.52 billion in Jul 2012. The
increase in expenses was driven by a 29% hike in underwriting
expenses, 1.2% increase in policy acquisition costs and 0.1%
increase in loss and loss adjustment expenses.
As of Jul 31, 2013, Progressive reported book value per share of
$11.15, up from $10.49 as on Jul 31, 2012 and from $10.87 as on
Jun 30, 2013.
Return on equity in Jul 2013 was 18.8%, up from 13.5% in Jul 2012
and 17.9% in Jun 2013. The debt-to-total-capital ratio was 23.5%
as of Jul 31, 2013, improving from 24.5% as of Jul 31, 2012 and
from 23.9% as of Jun 30, 2013.
Progressive carries a Zacks Rank #3 (Hold). Other property and
HCI Group Inc
Everest re Group Ltd
Berkshire Hathaway Inc.
) carry a Zacks Rank #1 (Strong Buy) and look impressive.