) earnings per share for August 2012 were 23 cents, a stellar
improvement from 4 cents in the year-ago quarter. Net income jumped
to $141.5 million from $22.5 million in August 2011.
ALLSTATE CORP (ALL): Free Stock Analysis Report
PROGRESSIVE COR (PGR): Free Stock Analysis
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The company recorded net premiums of $1.28 billion in August 2012,
up 7% from $1.21 billion in August 2011. Net premiums earned were
$1.25 billion, up 8% from $1.15 billion in the year-ago period.
Progressive had net realized gain on securities of $141.9 million
in August 2012, reversing the loss of $37.5 million incurred in
August 2011. The combined ratio − the percentage of premiums paid
out as claims and expenses − improved 110 basis points over the
prior-year to 96.5% in the reported month.
During August, policies in force remained healthy, with the
Personal Auto segment increasing 6% year over year but skidding
0.2% sequentially. Special Lines also elevated 4% year over year
and 0.1% from the preceding month.
In Personal Auto, Direct Auto reported an increase of 6% year over
year but waned 0.2% from the preceding month. Agency Auto was up 5%
year over year, but down 0.2% from the last month. Progressive's
Commercial Auto segment reported an increase of 3% year over year.
Total expenses for the reported month escalated 7.2% to $1.52
billion from $1.14 billion in August 2011. The major components
contributing to the increase in total expenses were a 9% hike in
losses and loss adjustment expenses, and a surge of 2% in policy
acquisition costs. However, a meager decline of 1.0% in
underwriting expenses acted as a partial offset.
Progressive reported book value per share of $10.63, up from $9.65
as of August 31, 2011 and $10.49 as of July 31, 2012.
Return on equity on a trailing 12-month basis was 16.7%, marginally
down from 16.8% in August 2011 and up from 13.5% in July 2012. The
debt-to-total-capital ratio was 24.3% as of August 2012, down from
28.7% as of August 2011 and 24.5% as of July 2012.
The quantitative Zacks #3 Rank (short-term Hold rating) for the
company indicates no clear directional pressure on the shares over
the near term.
), which closely competes with Progressive, shares a Zacks #3