Why Insurance Company Progressive Shares Are Surging Today

Progressive Corp PGR shares are trading higher after the company reported fourth-quarter financial results. 

Net premiums earned of $15.773 billion rose 22% Y/Y, above the consensus of $15.141 billion.

Net premiums written stood at $15.13 billion, rising 21% Y/Y in the quarter.

In December, companywide total policies in force increased by 9% Y/Y. 

The company reported a net income of $1.99 billion, escalating 141% Y/Y in the quarter.

The company reported a combined ratio of 88.7%, down 5.2ppt Y/Y. Adjusted EPS of $2.96, surpassing the consensus of $2.43.

As of December 2023, the company held available-for-sale securities of $62.17 billion. 

In October 2023, the company converted its monthly accounting closing calendar to align with the Gregorian calendar and expects it to impact the year-over-year comparisons on monthly results from October 2023 to September 2024. 

Price Action: PGR shares are up 5.33% at $179.40 on the last check Wednesday.