Latest news with #ProgressiveCorp
Yahoo
16-07-2025
- Business
- Yahoo
Progressive profit more than doubles on strong personal insurance growth
(Reuters) -Progressive Corp reported second-quarter profit that more than doubled on Wednesday, boosted by robust performance in its personal lines insurance business, sending its shares up 1.5%. Insurance spending remained resilient during the quarter, as businesses and individuals continued spending on policies to protect against risks in a tough macroeconomic environment, despite rising premiums. Insurance companies were also helped by a solid U.S. job growth. The company had 36.1 million personal insurance policies in force, 16% higher than last year. Net premiums written rose 12% to $20.08 billion in the quarter and its combined ratio improved to 86.2% from 91.9% year-on-year. A ratio below 100% indicates the insurer earned more in premiums than it paid out in claims. Net income of the insurer came in at $3.18 billion, or $5.40 per share, in the three months ended June 30, compared with $1.46 billion, or $2.48 per share, a year ago. The Mayfield Village, Ohio-based company's shares have gained nearly 1% in 2025, as of last close, compared to a 6.2% rise in the benchmark S&P 500 index. Sign in to access your portfolio
Yahoo
16-07-2025
- Business
- Yahoo
Progressive profit more than doubles on strong personal insurance growth
(Reuters) -Progressive Corp reported second-quarter profit that more than doubled on Wednesday, boosted by robust performance in its personal lines insurance business, sending its shares up 1.5%. Insurance spending remained resilient during the quarter, as businesses and individuals continued spending on policies to protect against risks in a tough macroeconomic environment, despite rising premiums. Insurance companies were also helped by a solid U.S. job growth. The company had 36.1 million personal insurance policies in force, 16% higher than last year. Net premiums written rose 12% to $20.08 billion in the quarter and its combined ratio improved to 86.2% from 91.9% year-on-year. A ratio below 100% indicates the insurer earned more in premiums than it paid out in claims. Net income of the insurer came in at $3.18 billion, or $5.40 per share, in the three months ended June 30, compared with $1.46 billion, or $2.48 per share, a year ago. The Mayfield Village, Ohio-based company's shares have gained nearly 1% in 2025, as of last close, compared to a 6.2% rise in the benchmark S&P 500 index. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
24-04-2025
- Business
- CNBC
It may be time to scoop up this insurance stock on the dip, according to the charts
With broad disruption in the equity markets in recent weeks, it's becoming increasingly challenging to find stocks that are still above upward-sloping 200-day moving averages. Not only are shares of Progressive Corp. (PGR) still trading above this key trend barometer, they appear to be following a familiar pullback pattern that could provide an ideal entry point. Back in April 2024, after a strong four months to begin the year, PGR demonstrated a classic bearish momentum divergence. This pattern of higher highs in price matched with lower peaks in momentum, highlighted with purple trendlines, suggests weakening price momentum as shares are moving higher. As the bullish trend nears an exhaustion point, price tends to peak and then reverse lower. The stock pulled back to just below $200 and ended up retesting this support level numerous times in May and June. The RSI pulled back during this period, but remained above the crucial 40 level during this consolidation period. Eventually the uptrend resumed, with a new swing high in August 2024 confirming a new bullish phase for Progressive. We observed an almost identical set of circumstances toward the end of 2024, when the price and RSI formed another bearish momentum divergence pattern at the September peak. Again, PGR pulled back to establish a new short-term support level, and the RSI remained mostly above the crucial 40 level during the consolidation phase. Finally, a break to new highs in February 2025 signaled a resumption of the uptrend phase. We've now identified yet another bearish momentum divergence at the March 2025 peak, followed by a pullback to short-term support around $250. If this playbook would continue as expected, we'd be looking for PGR to hold price support at this important level with RSI remaining mostly above 40. We're also noting that the 200-day moving average is in play, which should provide even more support around $250. It's often helpful to triangulate signals with other technical indicators to identify a potential agreement between disparate approaches. In this case, a quick review of the Ichimoku cloud model shows that previous pullbacks have often found support within the cloud support range. If PGR would break below cloud support but find an eventual low at the 200-day moving average around $250, a break back above the cloud could provide confirmation that a new uptrend phase is in place for this leading insurance provider. -David Keller, CMT Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited! DISCLOSURES: None All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
05-03-2025
- Automotive
- Yahoo
Progressive Corp (PGR) Q4 2024 Earnings Call Highlights: Record Premium Growth and Strategic ...
Net Premiums Written: Grew approximately 21% year-over-year, reaching $74.4 billion. Premium Growth: Increased by nearly $13 billion in 2024. Active Policies: Increased by more than 5 million in 2024. Combined Ratio: Achieved a combined ratio of 88.8 in 2024, below the target of 96. Loss Ratio Advantage: Maintained a 7-point advantage in loss ratio over the industry through the first three quarters of 2024. Employee Engagement: Ranked in the 98th percentile for engagement and 99th percentile for overall satisfaction in 2024. Photo Estimating Growth: Achieved an 82% growth rate in photo estimates since 2016. Efficiency Gains: Doubled productivity in photo estimating with machine vision, avoiding the need for 200 additional staff in 2024. Warning! GuruFocus has detected 6 Warning Signs with FSTR. Release Date: March 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Progressive Corp (NYSE:PGR) achieved a record year in 2024 with net premiums written growing approximately 21% year-over-year, reaching $74.4 billion. The company reported a combined ratio of 88.8 in 2024, significantly below the target of 96, indicating strong profitability. Progressive Corp (NYSE:PGR) increased active policies by more than 5 million in 2024, marking a record year for customer growth. The company ranks in the 98th percentile for employee engagement and the 99th percentile for overall satisfaction, according to Gallup. Progressive Corp (NYSE:PGR) has made strategic investments in technology and data analytics, enhancing claims accuracy and efficiency, which contributes to competitive pricing. The company faces potential challenges from tariffs, which could impact loss costs and margins in the second half of 2025. Retention rates have been moderating, with policy life expectancy ticking down due to rate increases over the years. The cost per sale and targeted acquisition costs have become closer, indicating increased advertising expenses. There is uncertainty regarding the impact of tariffs on new car prices and repair costs, which could affect future profitability. Progressive Corp (NYSE:PGR) must navigate varying state regulations to adjust pricing in response to potential tariff impacts, which could delay necessary rate changes. Q: In John Murphy's prepared remarks, he mentioned the potential for an even better 2025 despite moderated pricing increases. Can you comment on this outlook? A: Tricia Griffith, CEO, explained that Progressive is in a strong pricing position, allowing for strategic rate adjustments across states. The company aims to grow as fast as possible while maintaining target profit margins. The success in 2024, with a 21% premium growth and a strong culture, sets a solid foundation for 2025. Q: Can you discuss your appetite for increasing advertising spend and its impact on cost per sale? A: Tricia Griffith noted that the cost per sale and targeted acquisition costs are now closer due to increased spending. The company invested in delayed response ads to enhance brand presence. Progressive remains flexible with its media budget, adjusting based on competitor actions and market conditions to maintain efficiency. Q: How are you addressing the potential impact of tariffs on margins, especially in the second half of the year? A: Tricia Griffith stated that Progressive's pricing and economics teams are actively modeling the potential impact of tariffs. They are prepared to adjust models based on new data and are monitoring factors like new car prices and parts availability. The company is positioned well with margins below the 96 combined ratio target, allowing flexibility to manage these challenges. Q: Can you provide insights into the relationship between ad spend and policy growth, particularly with delayed response advertising? A: Tricia Griffith explained that Progressive measures new prospects shopping within six months to gauge immediate response. For delayed response ads, the company focuses on long-term brand building, which is harder to measure immediately but is expected to enhance brand recognition and customer engagement over time. Q: Are there any statistics on the cost per claim and the efficiencies gained from your claims processes? A: Tricia Griffith highlighted that Progressive tracks various metrics like cost per feature and features per day per FTE. The focus is on getting claims to the right person efficiently while maintaining accuracy. The company continuously seeks to improve efficiency to support competitive pricing. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Reuters
29-01-2025
- Business
- Reuters
Progressive's quarterly profit rises on strong insurance demand
Jan 29 (Reuters) - Property and casualty insurance company Progressive Corp (PGR.N), opens new tab reported a 19% rise in its fourth-quarter profit on Wednesday, driven by strong demand for personal auto insurance policies. WHY IT'S IMPORTANT Insurance spending has remained resilient, as businesses and individuals prioritize coverage to protect against risks. This helped insurers attract and retain customers, despite rising costs for policies. However, increased frequency of severe weather events like hurricanes, wildfires and other natural calamities are eating into insurer's profit margins, leading to a hike in premium prices to offset escalating risks. BY THE NUMBERS Net income of the insurer rose to $2.36 billion, or $4.01 per share, in the three months ended Dec. 31, compared with $1.99 billion, or $3.37 per share, a year ago. Its net premiums written jumped 20% to $18.11 billion. Combined ratio was at 87.9%, versus 88.7% last year. A ratio below 100% means the insurer earned more in premiums than it paid out in claims. The insurer's personal insurance policies in force rose 18% to 33.8 million in December, compared with the same month last year. Commercial lines policies in December were also 4% higher than the same month last year. CONTEXT Mayfield Village, Ohio-based Progressive provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes. Founded in 1937, the company is the second largest personal auto insurer in the U.S. MARKET REACTION Shares of Progressive were up 50.4% in 2024, outperforming peers like Allstate (ALL.N), opens new tab and Travelers (TRV.N), opens new tab, which rose 37.7% and 26.5%, respectively. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
