Progressive's Q4 Earnings, Revenues Beat on Higher Premiums

The Progressive Corporation’s PGR fourth-quarter 2024 earnings per share of $4.08 beat the Zacks Consensus Estimate by 19%. The bottom line increased 37.8% year over year. See the Zacks Earnings Calendar to stay ahead of market-making news.Operating revenues increased 20.3% year over year to $20.3 billion and beat the consensus estimate by 2.5%.The Progressive Corporation Price, Consensus and EPS Surprise The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation QuoteBehind the HeadlinesNet premiums written were $18.1 billion in the quarter, up 20% from $15.1 billion a year ago. Net premiums earned grew 21% to $19.1 billion. The reported figure surpassed the Zacks Consensus Estimate of $18.7 billion. Net realized loss on securities was $53 million versus a gain of $303 million in the year-ago quarter.Combined ratio — the percentage of premiums paid out as claims and expenses — improved 80 basis points (bps) from the prior-year quarter’s level to 87.9.Full-Year HighlightsOperating revenues increased 21.6% year over year to $75.1 billion, driven by 20.7% higher net premiums earned, a 49.7% increase in net investment income, a 19.7% rise in fees and 33.2% higher service. Total expenses increased 13% to $64.7 billion, attributable to 7.5% higher losses and loss adjustment expenses, a 15.4% increase in policy acquisition costs and a 51.6% surge in other underwriting expenses.Combined ratio improved 610 bps to 88.8. December Policies in ForcePolicies in force were solid in the Personal Lines segment, increasing 18% from the year-ago month’s figure to 33.8 million. Special Lines improved 9% to 6.5 million.In the Personal Auto segment, Direct Auto increased 25% year over year to 14 million, while Agency Auto increased 17% to 9.8 million.Progressive’s Commercial Auto segment rose 4% year over year to 1.1 million. The Property business had 3.5 million policies in force, up 14%.Financial UpdateProgressive’s book value per share was $43.67 as of Dec. 30, 2024, up 29.2% from $33.80 as of Dec. 30, 2023.Return on equity in December 2024 was 36.4%, up from 30% reported in the year-ago period. The total debt-to-total capital ratio improved 420 bps to 21.2.Zacks RankProgressive currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersThe Travelers Companies TRV reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.RLI Corp. RLI reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.W.R. Berkley Corporation’s WRB fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks