) earnings per share (EPS) for Aug 2013 plunged 52% year over
year to 11 cents from 23 cents reported in Aug 2012. Net income
tanked 51% year over year to $69.1 million in the reported month.
Progressive recorded net premiums of $1.39 billion in the
reported month, up 6% from $1.29 billion in the year-ago period.
Net premiums earned were $1.32 billion, up 6% from $1.25 billion
in the year-ago period.
Net realized gains on securities in Aug 2013 were $16.2 million,
plunging 89% from $141.9 million in the year-ago month. Combined
ratio − the percentage of premiums paid out as claims and
expenses − improved 110 basis points (bps) from Aug 2012 to 95.4%
in the reported month.
Numbers in August
In the month under review, policies in force remained healthy
with the Personal Auto segment increasing 1% year over year but
declining 0.08% sequentially. Special Lines also increased 2%
year over year and 0.1% over the preceding month.
In Personal Auto, Direct Auto reported growth of 3% year over
year and 0.03% from the preceding month. Agency Auto slipped 0.7%
year over year and 0.2% sequentially. Progressive's Commercial
Auto segment declined 0.2% year over year and 0.04% on a
Progressive's total expenses for the reported month increased
6.5% to $1.3 billion from $1.2 billion in Aug 2012. The rise in
expenses was driven by a 25% hike in other underwriting expense,
as well as 4.3% hike in loss and loss adjustment expenses and
1.5% higher policy acquisition costs.
As of Aug 31, 2013, Progressive reported book value per share of
$11.07, up from $10.63 as on Jul 31, 2012, but down from $11.15
as on Jul 30, 2013.
Return on equity in Aug 2013 was 17.7%, up from 14.9% in Aug 2012
but down from 18.8% in Jul 2013. The debt-to-total capital ratio
was 23.7% as of Aug 31, 2013, improving from 24.3% as of Aug 31,
2012 but deteriorating from 23.5% as of Jul 30, 2013.
Progressive carries a Zacks Rank #3 (Hold). Other property and
EMC Insurance Group Inc
Everest Re Group Ltd.
Global Indemnity plc
) carry a Zacks Rank #1 (Strong Buy) and look
EMC INSURANCE (EMCI): Free Stock Analysis
GLOBAL INDEMNTY (GBLI): Free Stock Analysis
PROGRESSIVE COR (PGR): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
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