Progressive's Net Income Soars 36% to $1.445 Billion

By Bobby Samwell • Wednesday, June 17 10:55 • Permanent Link

Progressive reported May net income of $1.445 billion, up 36% from $1.065 billion a year earlier, as net premiums written rose 6% to $7.027 billion from $6.634 billion.

Net premiums earned increased 10% to $7.361 billion from $6.715 billion. Total revenues climbed to $8.059 billion from $7.091 billion, while total expenses increased to $6.225 billion from $5.874 billion.

The company’s combined ratio improved to 82.1 from 86.9, a drop of 4.8 points. Losses and loss adjustment expenses were $4.600 billion, compared with $4.350 billion a year earlier, while other underwriting expenses rose to $1.009 billion from $919 million.

Investment income came in at $334 million, up from $301 million. Net realized gains on securities were $215 million, versus $211 million. Pretax income rose to $1.834 billion from $1.275 billion, and income taxes increased to $389 million from $210 million.

Per share available to common shareholders increased 36% to $2.47 from $1.81. Average diluted equivalent shares fell to 584.2 million from 587.7 million.

At May 31, policies in force reached 39.970 million, up 8% from 37.002 million a year earlier. Personal lines policies totaled 38.753 million, up from 35.818 million, with direct auto policies rising to 16.715 million from 15.089 million and agency auto policies increasing to 11.172 million from 10.341 million. Special lines policies grew to 7.234 million from 6.787 million, and property policies edged up to 3.632 million from 3.601 million. Commercial lines policies rose to 1.217 million from 1.184 million.

Year to date through May, net income was $5.350 billion, up from $4.618 billion. Net premiums written increased to $37.946 billion from $35.677 billion, and net premiums earned rose to $35.441 billion from $32.765 billion. Total revenues reached $38.229 billion, compared with $34.838 billion, while total expenses increased to $31.445 billion from $28.996 billion.

The year-to-date combined ratio improved to 86.3 from 86.5. Pretax income rose to $6.784 billion from $5.842 billion, and net income per diluted share increased to $9.13 from $7.86. The market has reacted to these announcements by moving the company's shares 0.69% to a price of $206.08. If you want to know more, read the company's complete 8-K report here.

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