Progressive's Q1 Earnings Miss, Revenues Beat Estimates
The Progressive Corporation’s PGR first-quarter 2025 earnings per share of $4.65 missed the Zacks Consensus Estimate of $4.72. The bottom line, however, increased 24.6% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Behind the Headlines
Net premiums written were $22.2 billion in the quarter, up 17% from $19 billion a year ago.
Net premiums earned grew 20% to $19.4 billion. The reported figure surpassed the Zacks Consensus Estimate of $19.2 billion.
Operating revenues increased 20.7% year over year to $20.6 billion, driven by 20.2% higher net premiums earned, a 31.7% increase in net investment income, a 21.6% rise in fees and 32.1% higher service revenue. The top line beat the Zacks Consensus Estimate of $20.4 billion.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote
Total expenses increased 20.1% to $64.7 billion, attributable to 16.7% higher losses and loss adjustment expenses, an 18.2% increase in policy acquisition costs and a 40.8% surge in other underwriting expenses.
Net realized loss on securities was $212 million versus a gain of $156 million in the year-ago quarter.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 10 basis points (bps) from the prior-year quarter’s level to 86.
March Policies in Force
Policies in force were solid in the Personal Lines segment, increasing 18% from the year-ago month’s figure to 35.1 million. Special Lines improved 9% to 6.6 million.
In the Personal Auto segment, Agency Auto increased 18% year over year to 10.1 million, while Direct Auto increased 25% to 14.8 million.
Progressive’s Commercial Auto segment policies rose 6% year over year to 1.2 million. The Property business had 3.6 million policies in force, up 11%.
Financial Update
Progressive’s book value per share was $49.39 as of March 30, 2025, up 32.6% from $33.80 as of March 30, 2024.
Return on equity in March 2025 was 39.3%, up from 34% reported in the year-ago period. The total debt-to-total capital ratio improved 480 bps to 19.2.
Zacks Rank
Progressive currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
RLI Corporation RLI will report first-quarter 2025 results on April 23, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 90 cents, suggesting a decrease of 5.3% from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in three of the last four quarters, while missing in one.
Chubb Limited CB will report first-quarter 2025 results on April 22, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $3.26 per share, indicating a decrease of 39.7% from the year-ago quarter’s reported figure.
CB’s earnings beat estimates in each of the last four quarters.
W.R. Berkley Corporation WRB will report first-quarter 2025 results on April 21, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.01, suggesting a decrease of 2.9% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in each of the last four reported quarters.
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The Progressive Corporation (PGR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
