06/16/2021 | Press release | Distributed by Public on 06/16/2021 06:48
NEWS RELEASE |
The Progressive Corporation | Company Contact: |
6300 Wilson Mills Road | Douglas S. Constantine |
Mayfield Village, Ohio 44143 | (440) 910-3563 |
May | ||||||
(millions, except per share amounts and ratios; unaudited) | 2021 | 2020 | Change | |||
Net premiums written | $ | 3,402.4 | $ | 3,174.2 | 7 | % |
Net premiums earned | $ | 3,388.8 | $ | 2,991.2 | 13 | % |
Net income | $ | 341.1 | $ | 366.9 | (7) | % |
Per share available to common shareholders | $ | 0.58 | $ | 0.62 | (7) | % |
Total pretax net realized gains (losses) on securities | $ | 146.3 | $ | 210.6 | (31) | % |
Combined ratio | 93.1 | 93.7 | (0.6) pts. | |||
Average diluted equivalent common shares | 586.9 | 587.2 | 0 | % |
May | |||
(thousands; unaudited) | 2021 | 2020 | Change |
Policies in Force | |||
Personal Lines | |||
Agency - auto | 7,986.3 | 7,336.7 | 9 % |
Direct - auto | 9,537.1 | 8,434.4 | 13 % |
Total personal auto | 17,523.4 | 15,771.1 | 11 % |
Total special lines | 5,163.7 | 4,715.7 | 10 % |
Total Personal Lines | 22,687.1 | 20,486.8 | 11 % |
Total Commercial Lines | 893.4 | 776.6 | 15 % |
Property business | 2,626.1 | 2,305.9 | 14 % |
Companywide Total | 26,206.6 | 23,569.3 | 11 % |
Current Month |
Comments on Monthly Results1
|
|
Net premiums written
|
$ | 3,402.4 |
Revenues:
|
||
Net premiums earned
|
$ | 3,388.8 |
Investment income
|
70.0 | |
Net realized gains (losses) on securities:
|
||
Net realized gains (losses) on security sales
|
12.5 | |
Net holding period gains (losses) on securities
|
133.8 | |
Total net realized gains (losses) on securities
|
146.3 | |
Fees and other revenues
|
50.6 | |
Service revenues
|
23.8 | |
Total revenues
|
3,679.5 | |
Expenses:
|
||
Losses and loss adjustment expenses
|
2,485.8 | |
Policy acquisition costs
|
285.8 | |
Other underwriting expenses
|
434.9 | |
Investment expenses
|
1.9 | |
Service expenses
|
21.1 | |
Interest expense
|
18.8 | |
Total expenses
|
3,248.3 | |
Income before income taxes
|
431.2 | |
Provision for income taxes
|
90.1 | |
Net income
|
341.1 | |
Other comprehensive income (loss)
|
||
Changes in:
|
||
Total net unrealized gains (losses) on fixed-maturity securities
|
42.3 | |
Net unrealized losses on forecasted transactions
|
0.1 | |
Other comprehensive income (loss)
|
42.4 | |
Total comprehensive income
|
$ | 383.5 |
Year-to-Date | |||||
2021 | 2020 | % Change | |||
Net premiums written | $ | 19,582.1 | $ | 16,809.7 | 16 |
Revenues: | |||||
Net premiums earned | $ | 17,942.6 | $ | 16,056.2 | 12 |
Investment income | 355.0 | 408.0 | (13) | ||
Net realized gains (losses) on securities: | |||||
Net realized gains (losses) on security sales | 176.5 | 505.4 | (65) | ||
Net holding period gains (losses) on securities | 746.4 | (311.1) | (340) | ||
Total net realized gains (losses) on securities | 922.9 | 194.3 | 375 | ||
Fees and other revenues | 287.4 | 239.2 | 20 | ||
Service revenues | 103.4 | 91.0 | 14 | ||
Total revenues | 19,611.3 | 16,988.7 | 15 | ||
Expenses: | |||||
Losses and loss adjustment expenses | 12,744.7 | 9,547.0 | 33 | ||
Policy acquisition costs | 1,510.6 | 1,327.4 | 14 | ||
Other underwriting expenses | 2,455.2 | 2,376.1 | 3 | ||
Policyholder credit expense | 0 | 1,016.5 | (100) | ||
Investment expenses | 9.6 | 8.3 | 16 | ||
Service expenses | 94.5 | 82.0 | 15 | ||
Interest expense | 94.0 | 85.6 | 10 | ||
Total expenses | 16,908.6 | 14,442.9 | 17 | ||
Income before income taxes | 2,702.7 | 2,545.8 | 6 | ||
Provision for income taxes | 565.4 | 527.2 | 7 | ||
Net income | 2,137.3 | 2,018.6 | 6 | ||
Other comprehensive income (loss) | |||||
Changes in:
|
|||||
Total net unrealized gains (losses) on fixed-maturity securities | (412.3) | 503.4 | (182) | ||
Net unrealized losses on forecasted transactions | 0.4 | 0.3 | 33 | ||
Other comprehensive income (loss) | (411.9) | 503.7 | (182) | ||
Total comprehensive income | 1,725.4 | 2,522.3 | (32) | ||
The following table sets forth the computation of per share results: | ||||||
Current | Year-to-Date | |||||
Month | 2021 | 2020 | ||||
Net income attributable to Progressive
|
$ | 341.1 | $ | 2,137.3 | $ | 2,018.6 |
Less: Preferred share dividends
|
2.3 | 11.2 | 11.2 | |||
Net income available to common shareholders
|
$ | 338.8 | $ | 2,126.1 | $ | 2,007.4 |
Per common share:
|
||||||
Basic
|
$ | 0.58 | $ | 3.64 | $ | 3.43 |
Diluted
|
$ | 0.58 | $ | 3.62 | $ | 3.42 |
Comprehensive income attributable to Progressive
|
$ | 383.5 | $ | 1,725.4 | $ | 2,522.3 |
Less: Preferred share dividends
|
2.3 | 11.2 | 11.2 | |||
Comprehensive income attributable to common shareholders
|
$ | 381.2 | $ | 1,714.2 | $ | 2,511.1 |
Per common share:
|
||||||
Diluted
|
$ | 0.65 | $ | 2.92 | $ | 4.28 |
Average common shares outstanding - Basic
|
584.6 | 584.8 | 584.8 | |||
Net effect of dilutive stock-based compensation
|
2.3 | 2.0 | 2.2 | |||
Total average equivalent common shares - Diluted
|
586.9 | 586.8 | 587.0 | |||
The following table sets forth the investment results for the period:
|
|||
Current
|
Year-to-Date
|
||
Month
|
2021 | 2020 | |
Fully taxable equivalent (FTE) total return:
|
|||
Fixed-income securities
|
0.3% | (0.1)% | 3.8% |
Common stocks
|
3.0% | 19.8% | (5.5)% |
Total portfolio
|
0.6% | 1.6% | 3.0% |
Pretax annualized investment income book yield
|
1.9% | 2.0% | 2.6% |
Current Month | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 1,286.2 | $ | 1,357.4 | $ | 2,643.6 | $ | 563.0 | $ | 195.8 | $ | 3,402.4 |
% Growth in NPW | 1% | 1% | 1% | 48% | 12% | 7% | ||||||
Net Premiums Earned | $ | 1,300.9 | $ | 1,429.3 | $ | 2,730.2 | $ | 486.4 | $ | 172.2 | $ | 3,388.8 |
% Growth in NPE | 8% | 11% | 9% | 40% | 16% | 13% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 74.7 | 73.9 | 74.4 | 70.6 | 66.0 | 73.3 | ||||||
Expense ratio | 18.4 | 20.0 | 19.2 | 19.7 |
28.31
|
19.8 | ||||||
Combined ratio | 93.1 | 93.9 | 93.6 | 90.3 |
94.31
|
93.1 | ||||||
Net catastrophe loss ratio2
|
1.3 | 0.4 | 13.9 | 1.8 | ||||||||
Actuarial Adjustments3
|
||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (9.1) | ||||||||||
Current accident year | (1.8) | |||||||||||
Calendar year actuarial adjustment | $ | (1.7) | $ | 0.6 | $ | (1.1) | $ | (3.9) | $ | (5.9) | $ | (10.9) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (9.1) | ||||||||||
All other development | 0.6 | |||||||||||
Total development | $ | (8.5) | ||||||||||
Calendar year loss/LAE ratio | 73.3 | |||||||||||
Accident year loss/LAE ratio | 73.0 | |||||||||||
Year-to-Date | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 7,467.3 | $ | 8,174.3 | $ | 15,641.6 | $ | 3,088.7 | $ | 851.8 | $ | 19,582.1 |
% Growth in NPW | 9% | 12% | 11% | 60% | 16% | 16% | ||||||
Net Premiums Earned | $ | 7,011.1 | $ | 7,630.7 | $ | 14,641.8 | $ | 2,495.2 | $ | 805.6 | $ | 17,942.6 |
% Growth in NPE | 7% | 11% | 9% | 27% | 13% | 12% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 70.8 | 71.1 | 70.9 | 66.2 |
87.8.
|
71.0 | ||||||
Expense ratio | 18.7 | 21.3 | 20.1 | 20.1 |
29.71
|
20.5 | ||||||
Combined ratio | 89.5 | 92.4 | 91.0 | 86.3 |
117.51
|
91.5 | ||||||
Net catastrophe loss ratio2
|
1.6 | 0.3 | 32.7 | 2.8 | ||||||||
Actuarial Adjustments3
|
||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (30.5) | ||||||||||
Current accident year | 12.3 | |||||||||||
Calendar year actuarial adjustment | $ | 8.0 | $ | (4.7) | $ | 3.3 | $ | (15.0) | $ | (6.5) | $ | (18.2) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (30.5) | ||||||||||
All other development | (123.8) | |||||||||||
Total development | $ | (154.3) | ||||||||||
Calendar year loss/LAE ratio | 71.0 | |||||||||||
Accident year loss/LAE ratio | 70.1 | |||||||||||
May 2021 | ||
CONDENSED GAAP BALANCE SHEET: | ||
Investments, at fair value: | ||
Available-for-sale securities: | ||
Fixed maturities1 (amortized cost: $40,068.4)
|
$ | 40,764.5 |
Short-term investments (amortized cost: $1,213.8) | 1,213.8 | |
Total available-for-sale securities | 41,978.3 | |
Equity securities: | ||
Nonredeemable preferred stocks(cost: $1,467.1)
|
1,535.3 | |
Common equities (cost: $1,203.5) | 4,840.3 | |
Total equity securities | 6,375.6 | |
Total investments2
|
48,353.9 | |
Net premiums receivable | 9,320.6 | |
Reinsurance recoverables (including $4,021.9 on unpaid loss and LAE reserves) | 4,246.7 | |
Deferred acquisition costs | 1,349.5 | |
Goodwill and intangible assets | 600.5 | |
Other assets | 3,263.0 | |
Total assets2
|
$ | 67,134.2 |
Unearned premiums | $ | 15,347.6 |
Loss and loss adjustment expense reserves | 22,206.4 | |
Other liabilities
|
5,603.6 | |
Debt | 5,397.3 | |
Total liabilities | 48,554.9 | |
Shareholders' equity | 18,579.3 | |
Total liabilities and shareholders' equity | $ | 67,134.2 |
Common shares outstanding | 585.3 | |
Common shares repurchased - May | 0 | |
Average cost per common share | $ | 0 |
Book value per common share | $ | 30.90 |
Trailing 12-month return on average common shareholders' equity | ||
Net income | 33.6 | % |
Comprehensive income | 31.7 | % |
Net unrealized pretax gains (losses) on fixed-maturity securities | $ | 684.6 |
Increase (decrease) from April 2021 | $ | 53.5 |
Increase (decrease) from December 2020 | $ | (522.0) |
Debt-to-total capital ratio | 22.5 | % |
Fixed-income portfolio duration | 3.1 | |
Weighted average credit quality | AA- |