The Progressive Corporation (NYSE: PGR) announced its financial results for the month ending on January 31, 2024. Unlike other major insurers, Progressive Insurance issues its results on a monthly rather than a quarterly basis. Issuing its latest results, the insurer showcased both solid growth and improved underwriting margins. The company, which offers personal and commercial insurance throughout the United States, reported net premiums written of $5.5 billion and net income of $700.7 million, or $1.18 per share.
Robust Growth Across Business Lines
Progressive experienced significant growth across its major business lines. The company’s Personal Lines business, which includes personal auto and special lines products, saw an 8% increase in policies in force, reaching 25.7 million. The Commercial Lines business, which covers auto-related liability, physical damage insurance, and workers’ compensation, grew by 4% to 1.1 million policies. The Property business, offering residential property insurance, expanded by 9% to 3.1 million policies.
Improved Underwriting Performance Overall
Progressive’s combined ratio, a key measure of underwriting profitability, improved significantly to 87.3 for the current year, compared to 96.0 in the prior year. This improvement reflects the company’s ability to effectively manage risks and maintain disciplined underwriting practices.
The company’s Personal Lines business demonstrated strong underwriting performance, with the Agency auto business reporting a combined ratio of 85.2 and the Direct auto business at 86.5. The Commercial Lines business posted a combined ratio of 88.6, while the Property business had a combined ratio of 107.9, primarily due to catastrophe losses incurred during the month.
A return on equity over 20 percent
The company’s investment portfolio also performed well, generating a 0.5% total return for the month. Progressive’s book value per common share stood at $35.10, while the trailing 12-month return on equity remained strong at 23.9% based on net income.
Strong Financial Position
Progressive maintained a strong financial position, with a debt-to-total capital ratio of 24.7%. After adjusting for the upcoming redemption of preferred shares, the ratio stands at 25.1%. The company’s solid balance sheet and financial flexibility enable it to pursue growth opportunities and navigate market challenges.
About Progressive
Progressive is one of the largest auto insurers in the United States, offering a wide range of personal and commercial insurance products. The company is known for its innovative offerings, such as Name Your Price®, Snapshot®, and HomeQuote Explorer®, which help customers save time and money on their insurance needs.
As Progressive continues to deliver strong financial results and grow its business, the company remains committed to its goal of maximizing long-term value for its stakeholders while navigating the challenges and opportunities in the insurance industry.
