Seeking Alpha

More on Progressive Q2 results

  • Net income of $293.4M fell 10% from a year ago, with net income per share of $0.49 off 8%. Operating profit of $0.45 per share missed estimates by $0.04.
  • Net premiums written of $4.628B gained 5% Y/Y, but slips from last year's 6.2% growth pace.
  • The combined ratio improves to 92.6% from 93.3%.
  • Innovations like allowing clients to do business from smartphones isn't drawing as many policyholders as before, says Sandler O'Neill's Paul Newsome (speaking ahead of earnings). “The biggest issue is that they really haven’t had a major change in the last decade ... It’s really about 10 years ago when they had really rapid premium growth."
  • PGR -0.5% premarket
  • Previously: Progressive beats by $0.01, misses on revenue
Comments (1)
  • Transcripts&10-K's
    , contributor
    Comments (681) | Send Message
     
    “The biggest issue is that they really haven’t had a major change in the last decade ... It’s really about 10 years ago when they had really rapid premium growth."

     

    Huh? In the past five years, PGR has increased their share of private passenger auto from 7.3% to 8.6%, and growing; ten years ago, it was ~6.0%.

     

    In that same five year period, they've reported an average combined of 93.2%, significantly better than the industry as a whole. They haven't reported a single year with a combined above 100% in the past ten years.

     

    I must be missing something - those numbers look pretty interesting to me...
    10 Jul, 09:43 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|