Progressive's Q2 Earnings Beat, Premiums Rise Y/Y

The Progressive Corporation's PGR second-quarter 2024 earnings per share of $2.65 beat the Zacks Consensus Estimate of $1.99. The bottom line improved more than five times year over year.

Operating revenues of $18.3 billion beat the Zacks Consensus Estimate by 1.4% and increased 18.9% year over year.

Shares gained 2.3% in the pre-market trading session to reflect the outperformance.

The Progressive Corporation Price, Consensus and EPS Surprise

Behind the Headlines

Net premiums written were $17.9 billion in the quarter, up 22% from $14.7 billion a year ago. Premiums beat our estimate of $17.3 billion.

Net premiums earned grew 19% to $17.2 billion and beat our estimate of $16.7 billion.

Net realized loss on securities was $126.3 billion against $126.9 million earned in the year-ago quarter.

Combined ratio — the percentage of premiums paid out as claims and expenses — improved 850 basis points (bps) from the prior-year quarter's level to 91.9.

June Policies in Force

Policies in force were strong in the Personal Auto segment, up 10% from the year-ago month's figure to 21.5 million. Special Lines improved 8% to 6.3 million.

In the Personal Auto segment, Direct Auto increased 12% year over year to 12.6 million, while Agency Auto increased 6% to 9 million.

Progressive's Commercial Auto segment rose 1% year over year to 1.1 million. The Property business had 3.3 million policies in force, up 12%.

Financial Update

Progressive's book value per share was $39.85 as of Jun 30, 2024, up 43.8% from $27.71 as of Jun 30, 2023.

Return on equity in June 2024 was 40.2%, up from 8% reported in the year-ago period. The total debt-to-total capital ratio improved 640 bps to 22.8.

Zacks Rank

Progressive currently has a Zacks Rank #3 (Hold).

Upcoming Releases

The Travelers Companies TRV will report second-quarter 2024 results on Jul 19, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.49, suggesting an increase of 4,050% from the year-ago quarter's reported figure.

TRV's earnings beat estimates in one of the last four quarters while missing in the other three.

RLI Corporation RLI will report second-quarter 2024 results on Jul 22, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.35, indicating an increase of 16.4% from the year-ago quarter's reported figure.

RLI's earnings beat estimates in three of the last four quarters while missing in one.

W.R. Berkley Corporation WRB will report second-quarter 2024 results on Jul 22, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 82 cents, suggesting an increase of 7.9% from the year-ago quarter's reported figure.

WRB's earnings beat estimates in the last four reported quarters.

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