) earnings per share for the first quarter of 2013 were 51 cents,
surging nearly 21% from 42 cents in the year-ago quarter. Results
outpaced the Zacks Consensus Estimate of 44 cents. Net income
shot up 20% from the first quarter of 2012 to $308.6 million in
Progressive recorded net premiums of $4.4 billion in the quarter
under review, up 7% from $4.2 billion in the year-ago quarter.
Net premiums earned were $4.2 billion, up 8% from $3.9 billion in
the year-ago quarter.
Net realized gains on securities in the quarter were $80.6
million, increasing 4% from net realized gains of $77.5 million
in the year-ago quarter. Combined ratio − the percentage of
premiums paid out as claims and expenses − improved 170 basis
points from the prior-year quarter to 92.4% in the reported
Numbers in March
Progressive publishes monthly financial reports. During March,
policies in force remained healthy, with the Personal Auto
segment increasing 1% year over year as well as sequentially.
Though Special Lines increased 2% year over year, it remained
In Personal Auto, Direct Auto grew 3% year over year and 1.3%
from the preceding month. Agency Auto was flat year over year,
although it improved 0.8% from last month. Progressive's
Commercial Auto segment reported an increase of 1% year over
Total expenses for the reported month increased 8.3% to $1.27
billion from $1.18 billion in Mar 2012. The major components
contributing to the increase in total expenses were a 9% increase
in losses and loss adjustment expenses and an 11% increase in
other underwriting expenses.
Progressive reported book value per share of $10.59, up from
$10.23 as of Mar 31, 2012 and $10.39 as of Feb 28, 2013.
Return on equity on a trailing 12-month basis was 16.4%, up from
16.2% in Mar 2012 and 16.1% in Feb 2013. The
debt-to-total-capital ratio was 24.4% as of Mar 31, 2013 down
from 25% as of Mar 31, 2012 and from 24.8% as of Feb 28, 2013.
Progressive carries a Zacks Rank #1 (Strong Buy). Insurers
AXIS Capital Holdings Ltd
Montpelier Re Holdings Ltd
Arch Capital Group Ltd
), among others, also carry a Zacks Rank #1 and appear
ARCH CAP GP LTD (ACGL): Free Stock Analysis
AXIS CAP HLDGS (AXS): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
PROGRESSIVE COR (PGR): Free Stock Analysis
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