) earnings per share (EPS) for May 2013 surged 171% year over
year to 19 cents from 7 cents reported in May 2012. Net income
shot up 166% year over year to $116.7 million in the reported
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Progressive recorded net premiums of $1.28 billion in the
reported month, up 5% from $1.22 billion in the year-ago period.
Net premiums earned were $1.32 billion, up 7% from $1.23 billion
in the year-ago period.
Net realized gains on securities in May 2013 were $63.2 million,
reflecting a huge improvement from $2.7 million in the year-ago
month. Combined ratio − the percentage of premiums paid out as
claims and expenses − improved 430 basis points (bps) from the
prior-year month to 93.2% in the reported month.
Numbers in May
During May, policies in force remained healthy, with the Personal
Auto segment increasing 1% year over year and 0.1% sequentially.
Special Lines also increased 2% year over year and 0.7% over the
In Personal Auto, Direct Auto reported growth of 3% year over
year and 0.2% from the preceding month. Agency Auto inched down
0.3% year over year but improved 0.1% sequentially. Progressive's
Commercial Auto segment reported an increase of 7% year over year
and 0.5% sequentially.
Progressive's total expenses for the reported month decreased 14%
to $1.26 billion from $1.47 billion in May 2012. The decrease in
expenses was driven by a 15.4% decline in lost and loss
adjustment expenses, a 20.1% dip in policy acquisition costs and
a 1% fall in underwriting expenses.
Progressive reported book value per share of $10.87 as of May 30,
2013, up from $10.22 as of May 30, 2012 and from $10.85 as of Apr
Return on equity in May 2013 was 19.9%, up from 11.4% in May 2012
and 17.7% in Apr 2013. The debt-to-total-capital ratio was 23.9%
as of May 30, 2013, improving from 24.9% as of May 30, 2012 and
from 24% as of Apr 30, 2013.
Progressive carries a Zacks Rank #3 (Hold). Other property and
HCI Group Inc.
Montpelier Re Holdings Ltd
Platinum Underwriters Holdings Ltd
), carry a Zacks Rank #1 (Strong Buy) and appear impressive.