) earnings per share (EPS) for Feb 2013 were 17 cents, flat with
the year-ago period. Net income decreased 6% to $100.2 million in
the reported month.
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The company recorded net premiums of $1.49 billion in the
reported month, up 8% from $1.39 billion in the year-ago period.
Net premiums earned were $1.29 billion, up 8% from $1.19 billion
in the year-ago period.
Net realized gains on securities in Feb 2013 were $19.5 million,
declining 34% from $29.4 million in the year-ago month. The
combined ratio − the percentage of premiums paid out as claims
and expenses − deteriorated 20 basis points (bps) from the
prior-year month to 91.4% in the reported month.
Numbers in February
Progressive publishes monthly financial reports. During February,
policies in force remained healthy, with the Personal Auto
segment increasing 1% year over year and sequentially. Special
Lines also increased 4% year over year, but remained flat with
the preceding month.
In Personal Auto, Direct Auto reported growth of 2% year over
year and 1.2% from the preceding month. Agency Auto was up 1%
year over year as well as sequentially. Progressive's Commercial
Auto segment reported an increase of 1% year over year but
declined 0.1% sequentially.
Progressive's total expenses for the reported month increased
10.5% to $1.21 billion from $1.10 billion in Feb 2012. The major
components contributing to the increase in total expenses were an
11.2% rise in losses and loss adjustment expenses and a 15% hike
in other underwriting expenses.
Progressive reported book value per share of $10.39 as of Feb 28,
2013, up from $10.06 as of Feb 29, 2012 and from $10.21 as of Jan
Return on equity in Feb 2013 was 16.1%, down from 16.4% in Feb
2012 and 17.1% in Jan 2013. The debt-to-total-capital ratio was
24.8% as of Feb 28, 2013, improving from 25.4% as of Feb 29, 2012
and from 25.1% as of Jan 31, 2013.
Progressive carries a Zacks Rank #2 (Buy). Other property and
Cincinnati Financial Corp
Arch Capital Group Limited
) and XL Group plc (
), carry a Zacks Rank #1 (Strong Buy) and appear impressive.