) earnings per share for the second quarter of 2013 were 54
cents, surging nearly 176% from 19 cents in the year-ago quarter.
The result also surpassed the Zacks Consensus Estimate of 40
cents. Net income shot up 174% from the second quarter of 2012 to
$324.6 million in the reported quarter.
Progressive recorded net premiums of $4.4 billion in the quarter
under review, up 6% from $4.1 billion in the year-ago quarter.
Net premiums earned were $4.3 billion, up 7% from $4.0 billion in
the year-ago quarter.
Net realized gains on securities in the quarter were $132.9
million, rebounding from a loss of $4.7 million in the year-ago
quarter. Combined ratio − the percentage of premiums paid out as
claims and expenses − improved 430 basis points from the
prior-year quarter to 93.3% in the reported quarter.
Numbers in June
Progressive publishes monthly financial reports. During June,
policies in force remained healthy, with the Personal Auto
segment increasing 1% year over year and 0.1% sequentially.
Special Lines increased 1% year over year and 0.6% sequentially.
In Personal Auto, Direct Auto grew 2% year over year and 0.3%
from the preceding month. Agency Auto declined 1% year over year,
although it improved 0.01% from the preceding month.
Progressive's Commercial Auto segment grew 0.3% year over year.
Total expenses for the reported month increased 3.3% to $1.35
billion from $1.26 billion in Jun 2012. The major components
contributing to the increase in total expenses were a 5% increase
in losses and loss adjustment expenses.
Progressive reported book value per share of $10.87, up from
$10.32 as of Jun 30, 2012 but down from $10.98 as of May 31,
Return on equity on a trailing 12-month basis was 17.9%, up from
12.5% in Jun 2012 but down from 19.9% in May 2013. The
debt-to-total-capital ratio was 24.4% as of Jun 30, 2013, down
from 24.7% as of Jun 30, 2012 but slightly up from 23.8% as of
May 31, 2013.
Progressive carries a Zacks Rank #2 (Buy).
Insurers Alleghany Corporation
American Safety Insurance Holdings Ltd
AmTrust Financial Services, Inc
), among others, also carry a Zacks Rank #1(Strong Buy) and
AMTRUST FIN SVC (AFSI): Free Stock Analysis
AMER SAFETY INS (ASI): Free Stock Analysis
PROGRESSIVE COR (PGR): Free Stock Analysis
ALLEGHANY CORP (Y): Free Stock Analysis
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